Britannia

I n d u s t r i e s L t d.
By,
Group
6,
Section-
 Objectives
 To understand the positioning of
Britannia in the consumer’s mind
 To identify important factors
consumers consider while purchasing
products
 Marketing mix of Goodday biscuits
and do competitor analysis.

 
Management Team
 Contents
1 Organization

2 Competitor Analysis

3 External Analysis

4 Marketing Mix

4 Customer Analysis
 Pillar Brands

 Tiger
 GoodDay
 Mariegold
 Fifty Fifty
 Milk Bikis
 Cream Treat
 Milestones
• 1892
– Started with an investment of Rs. 295/- in Kolkatta
• 1918
– Britannia Biscuit Company Ltd. (BBCo) was launched
• 1979
– BBCo was rechristened as Britannia Industries Ltd.
• 1993
– Wadia group aquired a stake in ABIL, UK & became an
equal partner in BIL with Groupe Danone
• 1997
– Corporate re-branding exercise gave rise to
philosophy of “Eat Healthy, Think Better”
• 1999
– ‘Britannia Khao World Cup Jao’ – A major success!
Profit up by 37%
 Milestones
• 2001
– Britannia becomes one of India’s biggest
brands
– Britannia Lagaan Match – Most successful
promotional activity of the year
• 2002
– Rated one amongst the top 200 small
companies of the world by Forbes Global
– India’s 2nd most trusted brand – Economic
times
• 2004
– Britannia accorded the status of being a
‘Superbrand’
– Volume crosses 300,000 tonnes
• 2005
– Company goes in for major expansion
 Company Overview
• India’s second largest food company
• Sales close to Rs. 20 billion
• Consistent annual growth rate of 15-
20%
• Sources products from more than 50
factories spread across the country
• Key product lines include:
– Biscuits
– Bread, Cakes and Rusk
• Product range caters to the whole
spectrum from mass market to the
premium segment
 Financial Analysis
• Gross sales increased to Rs
2317.11 Cr in 2006-07 registering
a growth of 28%.
• Profits declined by 33% due to
increase in input prices and stiff
competition
• Dividends of the order 100-150%
were provided for the past 5 years
• Britannia followed the industry
growth rate for the past 3-4 years
while the profit margin followed a
zigzag pattern.
• Costs have increased significantly
on the production as well as on
selling front.
 Financial Analysis
• Company has very small debt and its Debt-Equity ratio is 0.01

• Company is maintaining good debt rating for future requirements

• PBITDM (Profit Before Interest Tax Depreciation Margin)

expressed as a percentage of Sales is 6.58

• ROE is at a healthy Rate of 21.14%

• Current ratio has been improving over the years and hence the
solvency position of the company
 Competitive Analysis
Company By Value By Volume
Britannia 37% 30.5%
Parle 31.3% 38.4%
ITC 6.3% 6.7%
Surya Food and - 5%
Agro
Others
Ma rke t Sha re by Volume

Others
19% Britannia
Surya Food and 31%
Agro
5%
IT C
7%

Parle
38%
 Industry Overview
• Biscuit industry is the third largest producer
and fastest growing industry in FMCG sector
• It grew by 13% in 2006-07
• Estimated Value: Rs 5000 Crore
• Organized sector: 60% (approx)
• Major Segments: Glucose ,Marie, Cream,
Crackers, Milk
• Major Brands: Britannia, ITC, Parle, Priyagold,
Dukes etc
 PEST Analysis

Food laws implemented at State & Central level

Political
Stringent TAX laws
Factors
Many other Govt. Regulations

GDP increasing at 8-9%

Economic
Increase in the disposable Income
Factors
Rupee Appreciation

70% population below 35 years

Social Good awareness among the people
Factors

Process Innovation, Product Innovation

Technology Innovative techniques – JIT, RFID
Factors
 difficult
Economies of Scale –
Porter’s 5 forces difficult
Product Differentiation
Capital Requirements
Cost disadvantages
•Many Govt. Policies
Suppliers •Less large
•Fragmented volume buyers
environment •Switching Cost
•Switching •No individual
Costs buyer can
•Not an impact
important •Less threat of
customer backward
•Threat of Integration
Forward
integration
•Fast food
•Home made snacks
•Changing consumption
patterns
 SWOT
Strengths Weaknesses

Brand Name Market leaders but still couldn’t

Market Leadership
Product Innovation
Many Successful brands
Distribution Network
Danone
Promotional Activities
Celebrity Endorsements
prevent competitors to flourish
Britannia’s brand perception as biscuits
– stumbling block in venturing into new
areas
Competition-couldn’t adopt any strategy
to defend its position
May not centre on a single Product
Not able to increase its sales in an
expected manner

Opportunities

Per capita consumption in Ind–2.55 Kg,

develped countries-12Kg, Enormous
Scope
Increasing Disposable Income
Opportunities to increase exports
turnover
Diversification
Bakery Chain

 Marketing Mix - Product
20 percent share of Britannia's biscuit 2/3
share of the market
Good Day Choco Nut
Good Day Cashew
CAGR of 35 percent

Gaining acceptance
as a family snack Good Day
Text
Products
Good Day Butter
Text

Text
Good Day Chocolate Chip

Good Day Pista Badam

Marketing Mix - Product

Fig. Four Product Levels

for Good Day
 Price
• On the basis of price, the biscuit market can be
segmented into
• Low (less than Rs 40 per kg.)
• Medium (Rs. 40-70 per kg.)
• High (over Rs.70 per kg.)
• Caters to the upper middle and high end of the
market - with a touch of premium to it.

• On the price quality matrix, Good Day biscuits can be

classified as following a High-Value strategy.
 Promotion
• Consumers are becoming more health conscious
• "Swasth Khao Tan Man Jagao" (Eat Healthy, Think Better)
campaign directly addressed this new trend
• A new logo was created encapsulating the core essence of
Britannia - healthy, nutritious and optimistic
• Good Day is positioned as a healthy and nutritious product
• Good Day advocates values that stand for health, hygiene,
family, trust and taste.
• Sports and sporting events are a key channel for promotions.
• "Britannia khao, World Cup jao" campaign in 1999 and 2003
was the most recognized sales promotion among all Cricket
World Cup-related sales activity.
Place
 Customer Analysis
Key Information Areas
• Demographic Profile of the consumer
– Age, Sex, Income level, Occupation
• Personal Customer characteristics
– When do customer consume biscuits
– Type of biscuits consumed
– Where do the customer purchase
– Purpose of buying (personal consumption, gifting, serving guests)
– How much do consumers spend on biscuits
• Factors Affecting the buying decision
– What are the various factors that are considered
– Their order of preference
Comparative analysis
– After the factors have been found out above, the following issues are
addressed.
– How does Britannia fare on these attributes
– How does the competitors fare on these attributes
– The competitor brands taken for the analysis are
• Parle
• ITC
• Priya Gold (Surya Foods)
 Customer Analysis
Methodology

• Preliminary Analysis
– Secondary material on: Industry, Category, Competitors and
Consumers
• Qualitative Research
– Interviews with few consumers to identify major factors
influencing the purchase decision of biscuits
– Interacting with friends and family
• Quantitative Research
– Customer survey using questionnaire
– Survey done through both face to face interviews as well as online
• Tools Used
– Factor Analysis
– Cluster Analysis
– Fishbein Analysis. Software used is SPSS.
 Data Analysis
Round One Analysis
 Fishbein Analysis
Attribute Average Score Brand Fishbein
Score

Brand 0.596774194 Britannia 6.581

Taste 1.64516129
Parle 3.161
Package 0.016129032
ITC 2.984
Variety 0.064516129
Priya Gold -1.065
Health 0.516129032

Price 0.112903226

Value for Money 0.64516129

Quality 0.806451613

Hence from the

Fishbein Analysis,
it can be inferred
that customers
attitude
towards Britannia
is
very favorable to
 Factor Analysis
Rotated Component Matrixa

  Component

  1 2 3

Variety 0.89    ‘Variety’ and ‘Package’ have

Package 0.835    been combined into one
Price       factor which can be named
Quality   0.892  as Appearance factor. Since
Brand   0.771  the survey was skewed
Taste   0.699 
towards the urban
Value_for_Mo  
ney
  0.843
population, Price has not
factored significantly.
Health     0.835

‘Quality’, ‘Brand’ and ‘Taste’ have been combined into the

next factor which may be named as the Wholesomeness
factor.

‘Value for Money’ and ‘Health’ have figured into the third
factor which may be named as Well Being factor.
 Cluster Analysis
• ‘Wholesomeness Factor’

Final Cluster Centers

  Cluster
Cluster 2 which is characterised
  1 2 3
by female population also
Consuming_peri 2 3 2
od preferred Marie biscuits, and
Biscuit_type 2 5 2 consumed them mostly during
Place_of_Purcha
se
2 2 2 tea time.
Biscuits_usage 2 1 2
We also observe that the high
Willingness_to_s 2 2 3
pend income level group found in
Sex 1 2 1
cluster 3 also scored higher on
Age 2 2 2
willingness to spend.
Occupation 1 2 2

Income 2While the inter group variance

2 4

Quality 4 3 4
was minimum for place of
Brand 4 3 4
purchase (superbazaar), higher
Taste 5 4 5
variance was observed on factors
like consuming period, biscuit
type, biscuit
Cluster analysis done for Well Being Factor usage and other
and Appearance Factor
demographical factors.
 Action Plan
Reduce dependence
On Biscuits - diversify
Bakery Chain Exports

Same quality,
competencies
Britannia Tap “out of Home”
market

Investing on farmers Dairy products, rusks,

Improve Operational Namkeen/snacks
efficiency
 Thank You,
Have a Good Day