Executive Summary For a big organization like Britannia Industries Ltd, the business hugely depends on the distribution

channel and the consumer attitude towards the product. In distribution channel retailers plays a very important role. While making a product a SKU (stock keeping unit) of the shop retailers think about the GMROI (gross margin return on investment) and they promote the brand which provides them highest. They expect return in the form of profit margin, company schemes, window display and reference of the shop. Among these, company schemes make the difference and are the highest sources of motivation after profit margin. Retailing demands a constant push from the company. Marketer needs to use advertising and brand building strategies to address the discerning buyers and retail push to in different buyers. The manufacturer should understand consumer behaviour because retailers can't help quality and price. It is only up to manufacturers to deliver what consumer wants. There is a greater need to understand the retailer behaviour. Considering them as a team, working for the company may help them to be attached to the company. There should be a feeling of belonging to the company in inner of the retailers. This can be done by setting values club for retailers so that they may exchange views with the company and help in understanding consumer behaviour. Literature Review A channel is the pipeline through which a product flows on its way to the consumer. The manufacturer puts his product into the pipeline or marketing channel and various marketing people move it along to the consumer at the other end of the channel. According to American Marketing Association: " A channel of distribution or marketing channel, is the structure of intra company organisation units and extra company agents and dealers, wholesale and retail through which a commodity product or service is marketed." Functions of Channel Intermediaries Reconciling the needs of producers and consumers Improve efficiency by reducing the number of transactions and creating bulk for transportation Improve accessibility Providing specialist services Channel Distribution for Consumer Goods Zero Level Channel: Manufacturer---- consumer (Direct marketing includes use of personal selling, direct mail, telephone selling and internet. Examples are Avon Cosmetics, Acquaguard, Amazon. Com) One Level Channel: Manufacturer---Retailer---Consumer (It is economical for producers to supply directly to retailers than through wholesalers. Supermarket chains and Wal-Mart are examples) Two Level Channel: Manufacturer--- Wholesaler--- Retailer---Consumer (Wholesalers buy in bulk from producers and sell smaller quantities to retailers) Three Level Channel: (Producers delegate the task of selling their products to an agent who contacts wholesalers and receives commission on sales. Prevalent in foreign operations) Decisions Involved in Distribution of Goods Customer service: What level of customer service should be provided?

Order processing: How should orders be handled? Inventory control: How much inventory should be held? Warehousing: Where should the inventory be located? How many warehouses should be used? Transportation Mode: Which modes of transport should be used to transfer goods on time and without damage? Materials Handling: How will the products be handled during transportation? Bread Industry The Bread industry is low - tech and low margin industry. In 1977, the Government of India had reserved bread industry for small scale industries (SSI). The then existing two large units viz., Britannia Industries Limited and Modern Food Industries Ltd. were however allowed to continue on the basis of their respective existing installed capacity. 35 percent of the total production comes from the small scale sector wit h about 1500-1800 units in operation. The organized sector accounts for 20 percent of the total production. The balance production comes from the un-organized traditional bakery units operating under cottage/tiny sector numbering approximately 65000 units in the country. The two major players i.e. BIL & MFIL are having a market share of 10-12 percent and 7-8 percent respectively. Apart from these two, there are few large regional players such as Spencers in South India, Vibbs in Maharashtra, Harvest Gold and Perfect in Delhi, etc. Bread being consumed by wide cross - section of the society, the marketing of bread is based on a strong retail distribution network which services the customers. As bread industry is a low margin business, cost control is crucial in sustaining profitability in the long run. The total market size of bread industry is approximately 15 billion standard loaves (SL) or 1.5 million tonnes. The current growth is around 5 - 6 percent p.a. and is expected to remain in the same level in the medium term. Citing the financial distress faced by the bread industry, All India Bread Manufacturers Association sought assistance from government and sought inclusion of bread in Centre-sponsored schemes. Government should extend timely assistance to the ailing industry, which is employment oriented and productive users of agriculture," AIBMA president Vinod Tiwari said. He said the government should also include bread as a food item in the Mid-Day Meals Scheme and Integrated Child Development Scheme. The government should assist the bread manufacturers by making bread as a compulsory food item in the mid-day meals Scheme," he said. The bread industry also demanded preferential allotment of wheat to the industry at export rates that could help the growth o f the industry. Tiwari stated escalating prices of wheat flour has lowered profit margins resulting in closure of over 250 small scale bread units, while over 1,000 units are on the verge of closure. "The perennial problem of low margin and stiff competition, short shelf-life, unprecedented escalation in the cost of fuel, transportation, other ingredients have added to the woes of the industry, eroding its competitive capabilities," he added. There are three segments in the Indian bread industry such as Reg ular, Popular and Nutrichoice. Britannia's major strength has been to build presence across all price segments. They have succeeded in doing so in a well-balanced manner, each segment contributing approximately a third of revenues. Britannia approaches the high-volume, lowprice category, through its Regular Bread. Two other major players are in competition. One is Perfect and other is Harvest in NCE region, India Today Britannia is a market leader in terms of market share and has appreciable momentum in the form of strong revenue growth while maintaining a respectable return on sales. To reach this position, Britannia's strategy has been one of incremental rather than

radical innovation. From a branding standpoint, their recent strategy has been to leverage well-established brands, rather than establish new ones. Britannia Industries has taken full control of the Bangalore-based bakery foods retailer Daily Bread. Britannia, which had acquired 50% stake in June 2006, has now mopped up the remaining shares, taking over the operational reins fully from the original promoter Arjun Sekri. "We had an original plan to take full control of Daily Bread by 2011, but we have now advanced that," Vinita Bali, MD of Britannia Industries, told ET. Daily Bread is a manufacturer and retailer of bakery products, including specialty breads, across the institutional and retail segments. It also operates standalone retail outlets and kiosks in markets like Bangalore and Goa, which is now likely to be scaled up. Daily Bread is as a n incubation venture that it is currently being perfected in order to be rolled out once the external environment improves, Ms Bali added. "We are not talking about a national rollout because this is still not a venture that will add 'numbers' to Britannia top line. It is not there yet," she explained Britannia is now also taking the franchise route to expand the retail store footprint. Daily Bread has 11 standalone outlets in Bangalore and one in Goa, where it recently entered through a franchise route. Daily Bread had experimented with several formats, including a bakery retail store and one with a cafe-like ambiance. "While this gave us an opportunity to dabble in retail and shape the business, we realized the economics of a quick-service restaurant is entirely different as it requires a chain of outlets and resources to man it. Bakery is our core competency and our focus will be on intensifying this facet of the brand," Ms Bali said. Daily Bread has also tied up with large format retailers such as Spencer 's to set up shop-inshop formats and is currently banking on a saleable kiosk model. Britannia will, however, not look at rebranding Daily Bread as it is already an established brand name, positioned one step above regular bread brands. 4P's of Britannia Product Rather than venture into new product categories, Britannia has used line extension, staying within existing categories and introducing product variations (often around nutritiousness). One recent visible area of innovation has been packaging, with the introduction of low-price, smallquantity packs, known as nano packs. By and large then, the strategy has been a conservative one, building on existing strengths, rather than creating ones from scratch. Promotion: The success of Britannia's brands has been the result of sound product quality and astute advertising. In the food business, marketing is a key to success. "The major competitors in the bread market all have good distribution systems and there is no major difference in product manufacturing technology. Those are not real differentiators; marketing is" The company spends about 7% its revenues on advertising and it appears to spend it to good effect. Britannia strode into the 21st Century as one of India's biggest brands and the pre-eminent food brand of the country. It was equally recognised for its innovative approach to products and marketing: the Lagaan Match was voted India's most successful promotional activity of the year 2001 while the delicious Britannia 50 -50 Maska-Chaska became India's most successful product launch. Price: In products, the strategy has been a relatively conservative one, of line extension; in packaging, Britannia has been more adventuresome. In 2007 it introduced low price small quantity packs, known as nano packs. Depending on the brand, these retail for Rs 5 and 7.

The low price and low unit count are destined to attract the on-the-go urban consumer, as well as the more budget-constrained rural consumer. Place:

INTRODUCTIONBAKERY INDUSTRY -Bakery industry in India is the largest of the food industries with an annual turnover of about Rs. 3000 crores. Bread and Biscuits form the major baked foods accountingfor over 80% of total bakery products produced in the country. . Bakery products onceconsidered as sick mans diet have now become essential food items of the vastmajority of population. Though bakery industry in India has been in existence sincelong, real fillip came only in the later part of 20th century. The contributing factorswere urbanization, resulting in increased demand for ready to eat products atreasonable costs etc. With the quick food culture catching up, demand for bakery products has increased tremendously. The bakery industry or for that matter all the businesses catering to bakery are witnessing a sort of revolution tremendously. In anage where malls, hypermarkets and supermarkets have become the customer's preferred destination, the concept of chain bakeries has come into its own. The bakeryindustry has become more organized in the recent past. It is following the path of restaurants - as the industry has become more organized, chain restaurants have takenover the market and standalone restaurants have found it tough to survive on its own. INDIAN BREAD HISTORY The Bread industry is low - tech and low margin industry. In 1977, theGovernment of India had reserved bread industry for small scale industries(SSI). The then existing two large units viz., Britannia Industries Limited andModern Food Industries Ltd. were however allowed to continue on the basisof their respective existing installed capacity. 35 % of the total production comes from the small scale sector with about1500-1800 units in operation. The organized sector accounts for 20 % of thetotal production. The balance production comes from the unorganizedtraditional bakery units operating under cottage/tiny sector numberingapproximately 65000 units in the country. BIL & MFIL are having a marketshare of 10-12 % and 7-8 % respectively. Apart from big players like BIL &MFIL regional players such as Spencers in South India, Vibbs inMaharashtra, Harvest Gold and Perfect in Delhi, etc. Bread being consumed by wide cross - section of the society, the marketing of bread is based on strong retail distribution networks, which service thecustomers

As bread ndustry is a low margin business, cost control is crucial in sustaining profitability in the long run. The total market size of bread industry is approximately 15 billion standardloaves (SL) or 1.5 million tonnes. The current growth is around 5 - 6 percent p.a. and is expected to remain in the same level in the medium term.

Britannia Industries Limited (BIL) is the leading player in Bakery Products(Biscuits, Bread, Rusk and Cake), jointly promoted by French food major DANONE generating sales exceeding Rs.1 billion and these six pillar brands include Good Day,Tiger, 50:50,Treat, Milk Bikis, and Marie Gold. BIL is enjoying market leadership inall sub-categories of biscuits, Except in Glucose category where Parley is the leading player. PRODUCT BASKET OF BRITANNIA The groups principal activities are manufacturing & marketing- BiscuitsCakesRusk BreadDaily products MARKETING STRATEGYMARKET TREND:In modern days bread is now becoming one of the most essential food items in humandiet due to its ready-made availability and high nutritive value. It is the mostconsumable wheat based bakery product. Wheat flour, yeast, sugar, salt, water andshortening agent are required as raw materials to manufacture bread. The plant andmachinery and the technology required to manufacturing the bread, are completelyavailable in India. Since the consumption of bread is increasing rapidly day by day,the demand also is increasing enormously. Competitor1.Cremica:The CREMICA Group, a widely diversified food products company from India, is anacknowledged frontrunner in both food retailing and food services industry.Established as a small enterprise by Mrs. Bector, a passionate food enthusiast, threedecades ago, the group has today metamorphosed into a huge food productsconglomerate and is known for its lip smacking range of Sauces, Mayonnaise,Toppings, Syrups, Biscuits, Indian Snack Foods, Stabiliser Blends and Ice creams.The Group has been constantly setting benchmarks for the food processing industrythrough its incomparable products, innovative flavours and fillings, internationallycertified production facilities, consistent quality and unmatched expertise.Through its commitment to taste and quality, CREMICA has emerged as a preferredconsumer brand and a leading supplier to Indian and global food majors.2. PERFECT BREAD

-Started business with a small plant in Seeta Foods Pvt. Ltd.", located at a smallindustrial town Hathin, Faridabad in the year 1993 with a very nominal turnover. In aspan of just few years, with adding on two most modern plants: L.R. Foods(established in 1997) & Harpreet Foods Pvt. Ltd. (established 2000) at Faridabad andfurther coming up with Perfect Bake in 2006.Group works exactly on the concept of "Demand & Desire" with the help of highlyqualified marketing personnels to enhance the quality & variety of their products.Apart form retail markets of Delhi, NCR, Western U.P., M.P., Rajasthan, Haryana;group has a strong presence in reputed institutions & corporate.L.R Foods are very particular about using 100% natural ingredients. And a strongemphasis is given in this fact in all the stages of the production. The usage of GoldenWheat not only makes their products nutritious but also ensures unmatched qualityand taste.