Biscuit industry analysis and applied family brand strategies

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    Vision, Mission & Strategy of

    Biscuit & Cookies

    Industry

    Presentation by

    Sachin.P.M 41001; Tarini 41002 & Ratul Maiti 41000;

    1

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    What is it?

    Vision

    Its the sight of a traindriver, i.e.

    How far a train drivercan see?

    can be interpreted as thevision of a company.

    Mission

    Its the

    engine of a train

    to drive the bogies indesired direction.

    2

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    What is it?

    Vision Mission

    3

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    In short Vision, Mission &

    Strategies? Make a choice in life

    Take responsibility for your own destiny

    Execute your own ideas

    define yourVISION

    have a MISSION

    follow your STRATEGY

    4

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    Change in Mission of Wal-Mart

    Vision

    "We save people moneyso they can live better.

    Mission

    Wal-Mart:

    "To give ordinary folk thechance to buy the samething as rich people.

    "Become a $125 billioncompany by the year

    2000."

    5

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    Vision, Mission & Strategies of

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    BISCUIT INDUSTRY

    Biscuits are cheapest processed food ever made.But this industry size is about `12600Cr

    Biscuits were assumed as sick-mans diet inearly days. But now, it has become the mostloved fast food for every age group.

    The biscuit market has now moved from the coreGlucose base to more value added categories.

    Per capitaconsumption

    India -2kg/person/yr

    Rural- GlucoseUrban-Cracker,cookies,Cream

    sandwitch

    USA -15kg/person/yr

    7

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    BISCUIT INDUSTRYLargest Global Biscuit producers

    1. USA

    2. China

    3.

    India-[30Lakh MT (with 17% export)]

    Penetration Rate:

    1. Urban -85%

    2. Rural -55%

    Growth Rate: 12-17% in the next few years.

    (Britannia @ 22% CAGR)8

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    PRODUCTION OF BISCUITS IN

    INDIA (Category wise)Milk12%

    Others8%

    CREAM10%

    CRACKERS13%

    Glucose44%

    Marie13%

    Parle G, 66%

    Tiger, 22%

    20-20Sunfeast,

    12%

    Glucose Biscuit (44% of total biscuits)Market Share

    9

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    Poters 5F Model

    11

    Rivalry amongcompeting firms

    Bargaining powerof buyers

    Bargaining powerof suppliers

    Threat of Newentrants

    Threat ofsubstitute products

    P t 5F M d l f I di

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    Poters 5F Model for IndianBiscuit Industry

    12

    Britannia, Parle,ITC

    Premium productsare increasing in

    market

    Inflation in sugar& wheat prices

    Oreo, PepsiCo

    Bakery Items, Fastfoods, Ready-to-

    eat

    Not favorableAttract outsidersFreezing effectWelcome effect

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    Industry consists of

    Major player

    Parle

    Britannia

    ITC

    Emmerging Players

    Krafts Cadbury Oreo PepsiCo

    Minor player Surya Biscuits Pvt. Ltd.

    PriyaGold

    Anmol

    cremica

    Foreign Niche Players

    United biscuits Duke

    Unibic

    Nubisco

    13

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    Britannia Industries Ltd.

    Britannia (Great Britain) Est. in 1885

    Its a `4410Crs Industry

    CEO: Vinita Bali

    Owners: Mysore Kingly Wadias family Got huge investment and got famous in World War-

    II.

    Products: Biscuits, Cookies, Bread, Rusk, Cake, Milk& its products and Breakfast.

    HQ: Kolkatta, Reg. Office: Bangalore

    Manuf. Unit:Bangalore,Mumbai,Kolkatta,Uttarakhand, & Orrissa

    (up coming)14Source: http://www.britannia.ac.in

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    Britannia NutriChoice Ad

    16

    Now, let us look at thepromotional activities forNutriChoice Positioning

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    Sunfeast biscuits, ITC Food Div. ITC joined Biscuit players in July 2003 Location: Bangalore,

    It started with the strategic plan to save

    its core cigarette industry using paralleladvertising.

    17Source: ITC Food Division site & internet

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    Sunfeast biscuits, ITC Food Div.

    Vision

    To deliver highestproduct quality and

    value to consumers

    Mission

    To be one of the leadingbiscuits manufacture in

    Indian biscuit market

    Source: ITC Food Division site & internet 18

    Corporate strategy aimed at creating multiple drivers of growth anchored on itstime tested core competencies.To attain leadership on the strength of world class standards in quality and costs Leverage the goodwill of trademarks to:

    Capture emerging opportunities Further enhance current brand equit

    To at least 11% capture the `11,000Cr biscuit industryTo diversify ITCs core business from mere cigarettes to books, food & beverageindustry, Hotels and there by advertise the products of ITC. = Parallel

    Advertising.To be one of the premier player of Biscuits in India

    Strategy

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    Parle Est. in 1974 at Jhajjar, Haryana Size: 4000+Cr Company

    Largest biscuit & confectionary manufacturer of India

    Strengths: Extensive distribution network Consumption: 4515biscuits/second throughout India

    19Source: www.parleproducts.com

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    Parle

    Vision

    1929 - To provide JOY&CHEER to Children & adultalike, all over country with itsBiscuits.

    Mission

    Source: www.parleproducts.com 20

    Every nation dreams of a bettertomorrow. And every nationstomorrow lies in the hands of

    its children; children who makethe nation proud in everyaspect; theyoung geniuseswho shape the future of thenation. So its important to

    nourish these young minds,for after all its a question ofthe nations future.

    1997-Parle-G: Sponsored for Indian Superhero Shaktiman &Chandamama comic(published in 13 indian language)

    2005-Promote its products, Golu Galata

    Ek hi bite main sweet bhi, salt bhi campaign for KrackJack

    Hritik Roshan, Aamir khan and Darsheel safary - endorsed HIDE & SEEK

    How Parle-G maintained `4/- for many years?By varying number of biscuitsWeight per biscuitsVariation in Margin of sellers

    Penetration strategies: How Parle became #1 in biscuit consumption volume?High quality at low price

    Strategy

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    Unibic India Ltd Unibic Australia Pvt. Ltd. Is the parent company.

    It manufactures and supplies

    biscuits,

    cakes, cookies,

    pastries, and

    shortbreads to supermarkets in

    Australia, the United Kingdom, South East Asia, New Zealand,Canada, and the United States

    Incorporated in Indian in 2004

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    Source: http://www.unibicindia.com/corporateprofile.html

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    Unibic India Ltd

    Vision

    To delight the consumerwith unique premiumproducts at reasonable

    prices

    Mission

    1. Manufacture & Market ofproducts in major marketsand organised trade

    2. Strategic alliance

    3. Export to Australia, NewZealand, UK and US,Middle east and southeast.

    Source: http://www.unibicindia.com/corporateprofile.html

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    To Provide world class product at affordable prices:1. Manufacturing unit at Bangalore2. Marketing emphasis on Major towns and Organized retail.

    3. Niche market: Sugar-free biscuits4. No major player in Cookies market category of biscuits.5. Collaboration with Caf Coffee Day6. Export from Bangalore & Australia to US, Europe, Middle East.7. Unique production methods-Wire cut technology

    Not to mess up with the big guys (such as Britannia, Parle and ITC), Unibichas Adopted a strategy What not the big guys not do, will be done byUnibic Hence it has entered into Sugar Free biscuits.

    New Product under development ischyawanprashbiscuits just for change

    Strategy

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    Kraft foods (Cadbury Oreo)

    Vision

    "Helping People Around theWorld Eat and Live Better."

    Mission Innovation Sa