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Assignment 1

Nishant Kumar Singh

MBA III
2019-1507-0001-0010
 Assignment 1
Consumer Behavior
Product: - Britannia Nutri choice Digestive Biscuit
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.
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.
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.
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.
Nutrichoice as a brand targets specially at health conscious people in India came up in 1999. However, it failed to carter
chunk of its target population since It was not an overall product when it was compared with other tasty alternatives. Its
main consumers were limited to those who had special health concerns.

In 2005, Due to change in management, the entire marketing strategy underwent a radical overhauling. Britannia
Nutrichoice changed its focus from simple “Eating Health” to “Health, taste and happiness”. Several new products were
launched under the umbrella of Nutri choice 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 problem like diabetes
and health issue.

Overview of Brand “Nutri Choice”.

Britannia Nutri choice is one of the India’s leading health brand today, infusing a way in the change Indians think and
feel about health and healthy living. Nutri choice has been able to shift its market from a narrow group of consumer 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 realized 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.

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
 Behavioral 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 didn’t try to segment based on region because they didn’t 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

EDUCATION HEALTH

OCCUPTION INCOME
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 it’s important to cater to specific needs of the
consumers. To identify such variability, the population is divided into following 5 groups.

<20 20-29 30-39 40-55 55+

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

Stomach Heart Other

Healthy Diabetes Obesity problem Diseases Diseases
Income: - The income of an individual determines his/her purchasing power which in turn influences their consumption
pattern. To analyze the income and consumption patterns of the potential consumers we segregate the population into

<1L 1-3L 3-5L 5L+

following annual disposable income groups:

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

Literate but below matrics

Matrics but not graduate

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

Students Business Service Homemakers Others

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.

Targeting

Geographic: - In geographic considered urban-rural segmentation as the most important form. Out 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: About 52% of the urban population belong to the 20 to 59 age group. about 53% of the urban graduate
population belong to the 30 to 59 age group.

Psychographic: -
For psychographic analysis of segments, we primarily looked at people with a choice for a healthy lifestyle.
 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.

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.

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 endeavors by which the products were re-imaged are:

1. “Health plus taste plus happiness” Positioning

2. Healthy mini meals
3. Diabetic friendly snacks
4. Snacks to meet the busy life style of the urban population
5. Alternative to fried snacks
6. Novel Packaging

Conclusion

The success of a new product is a function of the product’s 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 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.