INDUSTRY IDENTIFIED – FMCG

Globally, India being the 2nd largest populated country after China - is one of the key consumer markets
with consumption expenditure set to increase to USD 2 trillion by 2020 and will surpass the
consumption expenditure of several other developed economies. Key factors that will continue to drive
this momentum are
(i) Favorable demographics
(ii) Rapidly rising education levels
(iii) Steady growth of urbanization
(iv) Increasing penetration of mobile technology and internet infrastructure
(v) Increasing aspirations and affordability
Private consumption continues to be the largest driver of the economy in the country. FMCG industry
accounts for ~20% of this consumption.

In India, due to private consumption played a strong attributed to the retail industry. Considering various
research reports on the industry, it is believed that FMCG industry in India is on a strong growth
trajectory, as per capita GDP in India is growing at CAGR 27.86% is expected to be advance to $103.7
billion in 2020.

Britannia Industry Limited

*new logo launched within FY 18-19

Britannia Industry Limited (BIL) is one of most favorite Bakery brands amongst Indian market, with
the promise to delight its customers has been the driving factor behind its success stories over a
decade. BIL leads the market share in Biscuit industry with ~32% against its competitors (Parle, ITC,
Anmol Industry, Mondelez International & etc).
In its Centenary year BIL was honored with many Awards FY 2018-19:
 The Economic Times Brand Equity ‘Most trusted food brand’ 2018
 Interbrand Best Indian Brands Award 2019
 Pitch Best CMO Awards for Consumer Connect
 Best Mini Mobile game activation for Little Hearts at Mobexx Awards 2018

Britannia Product portfolio span –

1. Biscuits
2. Bread
3. Cakes
4. Rusk
5. Dairy
6. Adjacencies - Center Filled Croissants, Cream Wafers, Salted Snacks

Table I: Situation Analysis

 Identify key factors -that
may affect the demand
and supply of the selected
Analysis of:
brand in 2019-20
compared to the previous
year
With the plan of
expanding its footprint in
International Business,
BILis setting up a
greenfield plant at Nepal
Company (SEZ Area).
Also planned to leverage
its R&D innovation
capability to introduce 50
new product line in
market
 Fifty Premium quality
product inline for FY
Customers 2019-20
 Increase its direct
reach and rural
distribution
 Digital connect
With highly competitive
market and increasing
number of players (local
players – Anmol, Priya,
Competition national players ITC,
Parle & international-
Mondelez), it’s becoming
very hard for the company
to differentiate themselves
Comment- on how these factors may impact the
demand/ supply as well as the extent of impact.
Meet the Demand: To meet global requirement as
BIL cover over more 60 countries they choose
special economic zone (SEZ), Mundra-Nepal which
has been operationalized from April 2019.
Company R&D center practice some the best
synergies which cater the areas from new product in
line with operational cycle advantage plus with
some energy and waste recycling technique to
reduce the company cash flow.
 BIL always in stage to expand there horizon to
reach more customer as there tagline say “Zindagi
mein life” in the centenary year they uplift the
market by diversifying.
 BIL took it first-of-its-kind digital leap to connect
with their customer by launching a radio station for
youth
 Made retail partnership to local retail vendor to
provide their products to Tier 2 city as well
With set goal and objective for coming year BIL is
excited to spread goodness with best product and
most trusted brand in the market with the aspiration
to grab customer from all segments.
 from others. There is also
threat from counterfeit
products destroying
its brand image in the
market.

Collaborators

With the help of PESTLE

and Porter’s 5 Force we
can analyze BIL macro
environment –
As the companies cannot
go to all sectors and to all
customers with different
needs and demands of
customer. So it is very
Context/Macro important for any
company to identify
Environment
various markets segments
which can be achieved
attained by including
factors like Demography,
political, economic factor,
technology change and
natural forces
With the new logo BIL transformed itself in various
area to attain their customer attention and buying
power towards the product
 Technology absorption – new emerging
technology has been implemented in the BIL
plants to reduce the operation cycle, increase
productive and reduce waste
 Political support – Food security Bill and
direct cash transfer can gave subsidies to reach
about 40% Indian customer home
 Economy growth – with the best possible
growth for the food industry for next coming
years BIL innovation (R&D) center is all set
with new product line to upscale the product
portfolio to premium segment
 Table II

Elements of Marketing Selected Brand: Competing Competing

Your Comments
Plan Britannia Parle ITC
Britannia revenue
Britannia being
stream provide the ITC facing a
Brand performance and With annual growth India’s most
insight that almost declining slope
Position in the market of 9.89 % in FY 18- trusted brand
90% of business is in FMCG
(Compare Sales, market 19. Parle share amongst all, with
produce by bakery department
share (category /segment), biscuit sales of the uphold of
products. from there peak
growth over years), approx. – 80% of it global market as
With the annual quarter growth
profitability) business well ( more than
growth of 10.8 % 16.2%
60 countries)
FY18-19
BIL new target Learning from
area is to diversify there competitors
ITC Partnered
and establish there Parle was struggling BIL launched
with many
ground in the grip amongst the first-of-it radio
Madhya
Key opportunities and premium category youth, which is why station to connect
Pradesh
challenges for the brand of products – with Parle-G taking new with youth
farmers to fulfil
(outcome of situation challenges to turn generation (campus station)
the needs of
analysis) tasteless healthy Advertisement plus direct
rural people as
snack to more campaign to reach linkage with
well as agri
consumable item new customer radio mirchy and
operation
to reach leading Digital perform
premium segment. games
 Majorly ITC
focus onto
increase its
 BIL strong By
reach
quality of the understanding
amongst the
product and the customer
customer
customer needs each
therefore they
satisfaction  Parle also organization
provided
Business Strategy and  Focus on increase it reacted to there
many combo
Marketing Objectives- Competitor market share in way to increase
deals like buy
2015-16 activity the premium the revenue as
3 product to
 Use promotion biscuits category
get another
per annual report
Strategy – new free
FY 18-19
scheme or rebate Britannia is
 ITC also
to retailer leading firm
introduce
amongst all
new products
in their
product line
Current Marketing Strategy

Target Segment(s)
( share of brand in different
targeted consumer
segments)
Positioning Statement
BIL target to lead
the market from
premium product
line to normal
product line to
cover via the help
of digital
platform, new ad
campaigns, &
BIL want to
themselves as a
manufacturer of
food with
delivering higher
quality and cost
benefits values to
their customers

Brand Analysis Survey – We have conducted survey to understand the brand presence in front each
consumer like – how aware are they, what is there preference, how often they consume the products.
By the help of survey we can gaze the market hold of each brands – Britannia, Parle & ITC.

Brand Analysis -
Survey.csv
Questionnaire of the Survey as follows with the response -
Survey Link – Click here to access

Useful links-
1. https://www.studocu.com/en/document/university-of-mumbai/mba-mhrdm/mandatory-
assignments/britannia-industries-limited-company-analysis-final/3103042/view

2. Graph detail - https://www.ibef.org/industry/fmcg/infographic

4. Biscuit industry - https://economictimes.indiatimes.com/industry/cons-products/fmcg/for-

biscuit-companies-this-is-how-the-cookie-crumbles-post-
gst/articleshow/68506369.cms?from=mdr

5. https://www.foodnavigator-asia.com/Article/2018/12/05/Fifty-new-products-
Diversification-key-to-Britannia-Industries-quest-to-become-a-total-foods-company