Food is a Rs 12.5 lakh crore opportunity in India.

Branded foods are growing fas

ter than the overall food and non-food segments, driven by consumers' quest for
quality and convenience. Biscuits are the largest category in the branded foods
segment, which is valued at Rs 25,000 crore. Despite the economic gloom, the bak
ery segment is still growing at 12-14 per cent.
Britannia markets diverse brands and packs at various price points across the ba
kery and dairy portfolio. Its bakery portfolio includes biscuits, bread, cake an
d rusk with the first being the largest of these categories. Britannia has about
a third of the biscuits market in India and a dominant share of other baked cat
egories. In biscuits, it competes with multinationals, large local companies wit
h a nationwide footprint and smaller regional players. In cake, rusk and bread,
the company competes mostly with regional brands with Britannia being the only n
ational player. Many new companies, local and international, have entered the da
iry segment.
Britannia was an underperformer in the consumer goods sector in 2010-12 with low
profitability levels of 4-5 per cent of operating profit margin.
Psychographic segmentation
For Britannia there is clear value in understanding their end-user s interests, li
festyle, and values.
Personality Based: Using a celebrity is one of the many effective methods of mak
ing profits and Britannia has used Sachin Tendulkar (Milk Bikis/ Vita Marie) and
Salman Khan (Tiger) in their advertisements quite successfully.
Value Based: Some people give more importance to the value or quality than cost
or money. Britannia is able to track these people by offering products, which ar
e healthy and nutritive (NutriChoice) or other characteristics.
Behavioral segmentation
Occasion Based: Usually occasions represent festive seasons like Diwali, but Bri
tannia mainly focus on events like World Cup to sell their products. Products like
Time Pass, Good Day, Nice Time, Marie Gold focus on Family/ Tea Time segment.
Benefits Based: Buyers can be segmented according to the benefits they seek in p
urchase. Their positioning as high quality and tasty helps them getting these cust
omers. While products like Good Day, Milk Bikis and Treat possess certain food c
haracteristics; some products focus on the Heath and Wellness Segment. These inc
lude Milk Bikis Nutritive and NutriChoice.
Influence of advertisements: Some advertisements have benefited Britannia to a g
reat extent in selling the product. The ads involving Sachin Tendulkar (Milk Bik
is/ Vita Marie) and Salman Khan (Tiger) have been catchy advertisements with hig
h recall value.