STP PROFILE

OF
BRITANNIA NUTRICHOICE





Submitted to: Professor Ashis Mishra
(Date: 14
th
August, 2013)

Prepared by:
Banhi Howladar(1311009)
Jyoti Nathany(1311022)
Priyadarshini K(1311035)
Sankalan Prasad(1311048)
Tushar Bhargava(1311062)
Group 10
TABLE OF CONTENTS
Executive Summary ............................................................................................................................................. 3
Overview of the Brand NutriChoice .................................................................................................................. 4
Market Segmentation .......................................................................................................................................... 4
Geographic Segmentati on ......................................................................................................................... 5
Demographi c Segmentation ..................................................................................................................... 5
Behavi oural segmentati on ........................................................................................................................ 6
Psychographi c Segmentation ................................................................................................................... 7
Targeting .............................................................................................................................................................. 7
Differentiation ................................................................................................................................................... 11
Positioning ......................................................................................................................................................... 11
Conclusion ......................................................................................................................................................... 13
References ......................................................................................................................................................... 14
Annexure ........................................................................................................................................................... 15













Executive Summary
NutriChoice as a brand targets especially at the health conscious population of India came up in 1999.
However, it failed to cater the major chunk of its target population since it was not an overall product when
it was compared with other tasty alternatives available in the market. Its main consumers were limited to
those who had special health concerns.
In 2005 due to the change in management, the entire marketing strategy underwent a radical overhauling.
Britannia NutriChoice changed its focus from simple Eat healthy to Health, taste and happiness. Several
new products were launched under the umbrella of NutriChoice and many old products were re-positioned.
They targeted middle aged, high income and health conscious people. They also targeted people suffering
from specific health problems like diabetes and heart issues.


















Overview of the Brand NutriChoice

Britannia NutriChoice is one of Indias leading health brands today, infusing a change in the way Indians think
and feel about health and healthy living. NutriChoice has been able to shift its market from a narrow group
of consumers who had special health concerns to a broader group of health conscious people. Britannia has
a belief that small yet smart food choices can play in enabling its consumers to get more out of their
everyday lives. With this hope Britannia has developed a unique range of healthy snacking choices under the
umbrella of the brand NutriChoice that can meet in-between cravings and nutrition needs of a diverse set of
consumers.

According to Britannia, the health and nutrition space in the Indian market, way back in 2005 had not been
tapped sufficiently and the company realised that introduction of a product in this space could act as a
growth driver for it. Currently, where brands such as Marie Gold and Milk Bikis have been consistent since
decades, NutriChoice emerged as a dark horse.

When they conceived the idea of establishing themselves into the health segment, the initial plan was to
create and market a milk-based drink named Anlene, which was targeted at Indian women suffering from
osteoporosis. However, the idea had to be withdrawn during the test phase of product in the Eastern
Region. The product Anlene failed and the company analysed that although Indians were becoming health
conscious but their mind space was ruled by more common and fatal diseases such as heart diseases and
diabetes. Gradually, they also started to focus on healthy stomach. Says Bali, " We opted to use what we
have whether a brand, consumer insight or way to market and suffuse that with health propositions."
NutriChoice is basically built around Britannias philosophy of Eat healthy and think better. In addition to
the economic progress, Indias increasingly urbanizing lifestyles have brought along erratic schedules, empty
calories and sedentary lifestyles. Here NutriChoice offers a smart, healthy as well as tasty snacking option.

Today, the NutriChoice range comprises of Hi-Fibre biscuits, 5 Grain biscuits mid meal snacking, Arrowroot
Lite Crackers, Diabetic Friendly snacks(Oats and Ragi biscuits) and the recently launched line of healthy crisps
viz. Multigrain Thins.

NutriChoice was revamped in 2005, due to change of management, leading to some strategic changes in
terms of product segmentation, marketing and overall positioning for each strategic business unit. Currently,
NutriChoice, accounts for nearly 75% of an admittedly small but rapidly growing health snacks niche.
Market Segmentation
With the concept of a new product in mind, Britannia started with market segmentation, identified target
markets and tailor made their positioning strategy to reach out to consumers. The broad categories under
which a market is segmented are:

Geographic Variables
Demographic Variables
Behavioural Variables
Psychographic Variables

Geographic Segmentation
The company which started in Calcutta as a small bakery house has one of its purpose as To facilitate every
Indian to experience Britannia products four times a day With this purpose, they went on and segmented
the Indian market according to different factors.
Urban-rural Market: Britannia didnt try to segment based on region because they didnt try to appeal to
any of the regional eccentricities of the various regions in India. Britannia did not intend to divide the market
on the basis of climate. The usage or taste of the product would be uniform across climatic conditions.
However, it was important to appreciate the fact that the buying behavior of consumers in rural market is
different from those in urban market and hence taking into consideration the attributes of the product, the
rural and urban divide becomes essential.
Demographic Segmentation
Some of the factors relevant to Britannia for NutriChoice were:

Age: The needs and the tastes differ across different age groups. Britannia, as a whole, has its presence
across multiple age groups and the company understood that its important to cater to specific needs of the
consumers. To identify such variability, the population is divided into following 5 groups

Health: As the primary motive was to target the untapped health segment, Britannia divided the market into
the following groups:

Income: The income of an individual determines his/her purchasing power which in turn influences their
consumption pattern. To analyse the income and consumption patterns of the potential consumers we
segregate the population into following annual disposable income groups:
Age
Health
Income Occupation
Education
55+ 40-55 30-39 20-29 <20
Healthy Diabetes Obesity
Stomach
Problems
Heart
Diseases
Other
Diseases

Education: Level of education influences the consumer choice in buying products; accordingly market can be
segmented into the following groups:





Occupation: The consumer preferences differ according to their occupation which has been categorised as
under:

Behavioural segmentation
Benefits sought: Biscuits are widely popular from rural to urban segments and available in different flavours
and price range. But with increasing affluence, there is increased requirement for healthy food products.
Especially in urban sector, with increasing work load and stress in their lives, people are getting attracted
towards health product segment.
Purchase behaviour: India is traditionally price-oriented market. Indian consumers prefer quality but within
certain price range. New products in the market are placed with specific balance between price and quality.
Britannia with its mass production advantage has used this leverage to segment the consumer base based on
pricing and impulse buying.
Usage: In Indian households, biscuits and savoury snacks are the most commonly consumed items. They are
consumed by people under all segments. Here, if the biscuits are aligned to the health aspects of the
individuals within their affordable range, the consumers would be ready to buy such products. Also, diabetic
patients have a strict diet schedule and if a product specific to their diet requirements is placed, it has a high
chance of being successful.



Students Business Service Homemakers Others
Illiterate
Literate but Below matric
Matric but Not Graduate
Graduate
Income (INR)
Psychographic Segmentation
With continuous increase in urbanisation, there is enormous change in the lifestyle and the expectations of
the consumers around the world. Britannia thus tried to analyse the needs of the people based on their
lifestyles and values through Activity, Interest and Opinion Analysis

According to the market survey conducted for the report (questionnaire attached as Annexure), out of the
51 respondents, following figure shows the leisure time activity of the respondents.


According to the market survey conducted for the report (questionnaire attached as Annexure), out of the
51 respondents, following figure shows the leisure time activity of the respondents.
64% of the respondents wished to have a healthy lifestyle but only 20% of them do exercise in their leisure
time. This shows that though people want to pursue healthy lifestyle, still they find difficult to follow one.
Britannia identified such people as potential market segment.
On scale of 1-5 (1 being lowest and 5 being highest), the respondents gave the following average ratings to
various attributes. The ratings show the preference order of average Indian consumer for the three
attributes in the order of taste, price and nutritional value.
Targeting
Based on the segments identified in the previous step, we tried to analyze the targeting strategy of
NutriChoice brand by Britannia. We first did a Five Force Analysis and then identified our targeting strategy.
Five Force Analysis
For analysis of the 5 forces we will expand the market to include other biscuits and snacks. In this market the
degree of rivalry is very high and limited product differentiation leads to buyer mobility. Due to aggressive
marketing and pricing, new entrants find it difficult to compete.
Activity
>The daily routine
lifestyle
>Eating Habits
Interest
>Do they prefer taste
over health?
>Are people willing
to pay higher price
for healthy products?
Opinion
>Do they think they
are healthy?
>Do they feel guilty
on having snacks
between meals?
Attribute Average rating score
Nutritional Value 3.24
Taste 3.96
Price 3.38
Buyer Power
Buyer power is weak as loss of any one buyer is unlikely to cause any significant effect on the producers
revenues. However, even though revenue generated by one consumer is low, collectively they represent a
wide consumer interests. A rise in health consciousness is driving a growing demand for nutritional content
in food products. Food product manufacturers need to accommodate such changes in the demand. Food
products targeted for health conscious people can justify high price levels due to high product differentiation
and also weaken buyer power due to lack of alternatives.
Supplier Power
Suppliers include farmers, agricultural cooperatives and sugar manufacturers. Large manufacturers often
either maintain strong relationships with suppliers or go for M&A for vertical integration to offset the danger
of sourcing and price fluctuations. This strengthens manufacturers standing in relation to suppliers. Leading
manufacturers can leverage their developed supply chain dominate negotiations with suppliers. Supplier
power has been affected by increase in number of players in the market. Biscuit manufacturers also need to
contest with manufacturers of other industries and also retailers due to the same raw material being
sourced. Hence we would like to assess the supplier power to be moderate.
New Entrants
The financial muscle of the players differs in the market. Large-scale, established manufacturers like ITC,
Parle with high operating margins and economies of scale, enjoy the advantage of aggressive pricing and
penetrative marketing strategies. Strong branding and expansion makes it difficult for new entrants.
However, there has been a recent rise in health consciousness and people opting for healthy diet. This forms
an attractive avenue for new entrants to move into a niche area and create its own space.
Threat of substitutes
There are limited substitutes in the healthy snack area. Strong marketing campaigns, increased awareness
among consumers undertaken by the company can ensure low threat of substitutes. The company can enjoy
the first mover advantage by being the first ones to enter into the segment and reduce the threat of
substitutes.
Degree of Rivalry
Competition is often fierce within the food industry. There are a large numbers large competitors like Parle
and ITC, and hence Britannia faces a strong competition. In addition there exists a large number of small and
independent manufacturers operating alongside these large players. Consumers face zero switching costs,
which means that manufacturers need to secure consumer loyalty by attempting high product
differentiation. By targeting a niche product segment, a company can afford to increase prices and command
brand loyalty. Based on the above analysis we identify target of Nutrichoice as middle to high income, middle
aged, and urban residents who are educated and health-conscious, since we are targeting a niche product.
The analysis of the targeting is given below.
Geographic: In geographic we had considered urban-rural segmentation as the most important form. We
referred to the census data for India to find the population distribution between rural and urban India. The
distribution is given below. Of the 1.2 Billion people in India only about 28% live in urban cities with access to
modern facilities. We target this urban population which is about 33.6 Million people.





Demographic: The distribution of age in the urban areas is given below. We infer that about 52% of the
urban population belong to the 20 to 59 age group.

For education profile, we investigated the distribution of graduates in urban population. The figures are
shown above. We see that about 53% of the urban graduate population belong to the 30 to 59 age group.
Indian household income has risen in the past decade and is slated to increase further. Apart from reducing
the poverty, India has managed to create a large middle class in the past decade. Below we have shared data
from the McKinsey Global Institute.

Source: McKinsey Global Institute (E: estimated F: Forecasted)
As indicated above in 2005 the Indian middle class was still relatively small, approximately 5% of the total
population. However based on assumptions on the growth rate at that time, the middle class was slated to
expand to 22% of the total population by 2015 and 41% by 2025. Also the percentage of people with
household income below 90000 is going to reduce drastically in the next few years. In 2005 the number of
households with high income was slated to almost triple by 2025. Over the medium to long-term, this
provides several opportunities for marketers of niche products targeted for the high income people living in
metros.
Additionally, India has 50.8 million people suffering from diabetes and by 2030, nearly 9 per cent of the
country's population is likely to be affected by diabetes. (Source: Indian Express) This forms a very niche
market segment which can be targeted by NutriChoice and enjoy an early player advantage.
Psychographic
For psychographic analysis of segments we primarily looked at people with a choice for a healthy lifestyle.
Again we researched a number of secondary sources of data. First data we analyzed was from Datamonitor
Consumer Survey, 2009. The question asked to people was to what extent they agreed that snacking in-
between meals makes them feel guilty. The results are shown below.

Source: Datamonitor Consumer Survey, 2009
This is a clear indication of huge market potential especially in the 35+ age group where more than 40% of
the population felt guilty of in-between meals. The second question was, to what extent did the people read
the information on product packaging to help them make choices. The result is shown below.

Source: Datamonitor Consumer Survey 2009
Differentiation
Based on segmentation and targeting approach, Britannia tried to differentiate NutriChoice to create a new
position in the market. While McVitie's have launched their digestive biscuits as the first ever digestive
biscuit, baked with whole wheat flour and other wholesome ingredients, Britannia NutriChoice has
established itself the health category, differentiating itself as a healthy and tasty snacking option. Indians
perceptions have changed over time and are now willing to pay for nutritious food. From sharing of healthy
recipes to promoting innovative health campaigns, it has marked its presence with its high engagement with
the targeted calorie-conscious consumers.
Over a period of time, its packaging and advertising communicated the inclusion of key ingredients and their
associated health benefitsfor example the benefits of arrowroot, fibre and whole grain were highlighted
prominently in promotion of the products. This not only differentiated the brand from other competing
brands, but also gave it the necessary visibility in an already crowded biscuit market in India.
Earlier, healthy biscuits were targeted at patients and available in medical stores. However, Britannia
targeted NutriChoice as a consumer product but with health benefits. The packaging used natural colours
and consisted of imagery of its constituents to distinguish itself. This has given the brand unique image in the
eyes of the consumers in a way that they relate the NutriChoice products with nature and health.
Differentiating Attribute NutriChoice
Nutritional Value High on health aspect, promoted as Health Biscuit of India
Taste Wide range of products available in different flavors
Price Competitive pricing as compared to other biscuits in Health Biscuit section
Crispiness Variety of products from soft to crunchy to cater to various market segments
Presentation Use of natural colors and imagery to distinguish the brand
Trust Britannia in itself is a trusted brand which differentiates it from competitors

The following perceptual maps try to capture their differentiation strategy

Positioning
In 2005, Nutrichoice underwent a radical renovation process owing to the changing of the management and
its product portfolio as well the overall marketing strategy was overhauled. The products under the brand
Nutrichoice were put under the category health and nutrition while the rest of Britannia products were
put under delight and lifestyle category. This differentiation revitalised its position among the target
consumer segment.
Nutrichoice also re-launched its brands according to changing consumer preferences (as in the case of
NutriChoice Hi-Fibre Digestive biscuits, which were sold in a large international sized biscuit pack) and
introduced new products under the NutriChoice platform (such as Britannia NutriChoice 5 Grain). Ever since
2005 many new products have been launched under this brand and positioning strategies have changed
from time to time.
The company took several initiatives to cater to the diverse consumer segments by repositioning the
products under the NutriChoice brand. A few such notable positioning endeavours by which the products
were re-imaged are:
1. Health plus taste plus happiness positioning: To outgo the staid taste of the earlier products and
come up with a revolutionary new product line which promotes health with taste. Important
changes were made in Cream Cracker brand, which faced a particular taste disadvantage as it was a
low-sugar biscuit. The brand was made crispier and tastier, and was re-launched as NutriChoice
Classic Lite Cracker. In addition, another variant of this brand, NutriChoice Nature Spice Cracker, was
introduced which claimed that: the goodness of jeera (cumin seeds) and ajwain (carom seeds) will
aid in digestion.
2. Healthy mini meals: NutriChoice recognised the fact that people tend to eat between meals and
they often end up eating unhealthy things. This hunger curbs can be met with an healthy
alternative. 5 Grain NutriBix with the punch line Bhook bhgagayo kuch healthy khao actually
focuses on this concept.
3. Diabetic friendly snacks: Studies show that products with high fibre or whole grain to fight a
number of rising health concerns in the country such as diabetes and coronary conditions. The
'Diabetic Friendly' Essentials are a range of NutriBix specially designed for diabetics.it comes in two
variants oats and ragi.
4. Snacks to meet the busy life style of the urban population: out of home consumptions such as at
the workplace or while travelling became easy after the NutriChoice launched the 5 Grain biscuits in
pocket-sized meals to achieve portion control and make them more convenient for anywhere
/anytime consumption.
5. Alternative to fried snacks: Britannia realised through market research, that Indians just love spicy
snacks and have a special weakness for them. However, the growing urban population has become
highly health conscious. So Britannia came up with an option for a spicy / tangy yet healthy non
fried, low fat version , Nutrichoice multigrain thins, a family time snack with the tagline a snack
that loves you back
6. Novel Packaging: It is known that packaging of a product drives their purchasing decisions of the
people. Indians, especially women across all age groups, use have the tendency to use nutritional
information on the product packaging to help make food and drink choices. Hence Britannia made it
a mandatory process to include the nutritional contents of its products on the packet.

Conclusion
The success of a new product is a function of the products identity in the market. To create a unique
identity of a product in the market, it is essential to properly segment the market, identify the target
customers for the product and then develop the positioning strategy of the product to tap the available
potential.
Britannia, under its NutriChoice brand, has targeted the health conscious people in the urban
households. These people have erratic and busy schedules but want to pursue healthy lifestyle. After the
restructuring of brand in 2005 and then success of products such as 5 Grains NutriBix, Britannia has gained
a substantial lead in this market segment. Further, it increased its span in this segment by launching other
items such as its healthy snacks and savory items. The introduction of niche products like NutriChoice Ragi
and Oats has been quite a success in the diabetic patients segment. Overall, the brand has become quite
popular among the targeted segment of health-conscious people.
With increasing affluence and changing mindset of people, this market segment is increasing in size. At the
same time, other players are coming in this market segment. Britannia should prepare for higher
responsiveness to the changing market dynamics and thereby, adopt continuously adapting positioning
strategy.
Hi-Fibre Digestive NutriBix Biscuits
packed with Hi-Fiber
helps smoothen the functioning of stomach and also digestion system
5 Grain NutriBix
best to stay active throughout the day
Oats minimizes the bad cholesterol, Corn helps the heart, Ragi filled with calcium
and fibre, Wheat gives energy and Rice gives energy and lower fat level
NutriChoice Crackers
crunchy, light and good to taste
filled with whole wheat, no fat or preservatives, contains Ajwain and Jeera
NutriChoice Arrowroot
keeps stomach stronger and fights the harmful toxin out from the body

Multigrain Thins
Rice, Wheat, Corn, Ragi and Oats, which are topped with crunchy flaxseeds.

Multigrain Roasty
snacks consumed at the end of each meal or mid-meal

NutriChoice Ragi and Oats
for those who are suffering with Diabetic.

References
1. http://www.britannia.co.in/Britannia_Annual-Report_2012-13.pdf
2. http://www.ihealthu.com/
3. http://www.censusindia.gov.in/Census_Data_2001/India_at_glance/rural.aspx
4. http://www.censusindia.gov.in/Census_Data_2001/Census_data_finder/Census_Data_Finder.aspx
5. http://censusindia.gov.in/Data_Products/Library/Provisional_Population_Total_link/PDF_Links/chap
ter5.pdf
6. http://www.abesit.in/pdfs/article-britannia-contributed-prof-sukti-chakrabarti-dated-21-11-12.pdf
7. http://www.4psbusinessandmarketing.com/09022012/storyd.asp?sid=5144&pageno=1
8. http://www.mckinsey.com/locations/india/mckinseyonindia/pdf/India_Consumer_Market.pdf
9. http://acervo-digital.espm.br/cases/306352.pdf




















Annexure

Market Survey for Psychographic Behavior of Consumers