britannia direct dil se
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INTERNATIONAL MANAGEMENT INSTITUTE
MARKETING MANAGEMENT TERM ASSIGNMENT
Submitted To : Prof. P.C. MEHRA
Submitted By :GROUP NO. 10 1.ADYA 2.DEEPIKA AGGARWAL 3.MODAK PRIY 4.ROHIT SHARMA 5.SAURABH JOHRY 6.VINEET DIXIT
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A STUDY OF PRODUCT & COMMUNICATION MIX
TABLE OF CONTENTSPage 2 of 28
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14.
Introduction.04 Industry Overview..05 Britannia - Its Market Share & Overview...06 Product mix10 Product Comparison.13 Research Methodology.14 Consumer Study14 Qustionare..20 Distribution Network of Britannia Biscuit 22 Retailers Sudy 23 Retailers Survey..24 Communication mix.25 Associated Punch Lines of Various Britannia Products.27 Conclusion.28
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IntroductionSweet or salty. Soft or crunchy. Simple or exotic. Everybody loves munching on biscuits, but do they know how biscuits began? The word 'Biscuit' is derived from the Latin words 'Bis' (meaning 'twice') and 'Coctus' (meaning cooked or baked). The word 'Biscotti' is also the generic term for cookies in Italian. Back then, biscuits were unleavened, hard and thin wafers which, because of their low water content, were ideal food to store. Therefore biscuits became the ideal travelling food since they stayed fresh for long periods. The seafaring age, thus, witnessed the boom of biscuits when these were sealed in airtight containers to last for months at a time. Making good biscuits is quite an art, and history bears testimony to that. During the 17th and 18th Centuries in Europe, baking was a carefully controlled profession, managed through a series of 'guilds' or professional associations. To become a baker, one had to complete years of apprenticeship - working through the ranks of apprentice, journeyman, and finally master baker. Not only this, the amount and quality of biscuits baked were also carefully monitored. As technology improved during the Industrial Revolution in the 19th century, the price of sugar and flour dropped. Chemical leavening agents, such as baking soda, became available and a profusion of cookie recipes occurred. This led to the development of manufactured cookies. India Biscuits Industry came into limelight and started gaining a sound status in the bakery industry in the later part of 20th century when the urbanized society called for ready made food products at a tenable cost. Biscuits were assumed as sick-man's diet in earlier days. Now, it has become one of the most loved fast food product for every age group. Biscuits are easy to carry, tasty to eat, cholesterol free and reasonable at cost. The States that have a larger intake of biscuits are Maharashtra, West Bengal, Andhra Pradesh, Karnataka, and Uttar Pradesh. Maharashtra and West Bengal, the most industrially developed states, hold the maximum amount of consumption of biscuits The Federation of Biscuit Manufacturers of India (FBMI) has confirmed a bright future of India Biscuits Industry. According to FBMI, a steady growth of 15 percent per annum in the next 10 years will be achieved by the biscuit industry of India. Besides, the export of biscuits will also surpass the target and hit the global market successfully. Interestingly, as time has passed and despite more varieties becoming available, the essential ingredients of biscuits haven't changed - like 'soft' wheat flour (which contains less protein than the flour used to bake bread) sugar, and fats, such as butter and oil. Today, though they are known by different names the world over, people agree on one thing - nothing beats the biscuit!
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Reason behind selecting this productThe association of our product, biscuits is an age long narration. A snack or starvation, picnic or just time pass munching, biscuits have always been a part of it. In todays innovative and competitive scenario, biscuit industry still manages to hold a stand in the market and creates its visibility amongst all commodities. The brands play on our minds emotionally, as we have a childhood involvement. Amongst the brands of biscuits, the image of Britannia furnishes to our perceived mind set. The other essential basis of choosing the biscuit industry and referring to Britannia as a brand, are as per their established appeal in the market, its market share and awareness.
Industry OverviewThe Indian biscuits' market is estimated to be 1.1 million tonnes per annum and valued at over Rs 50 billion. India is known to be the second largest manufacturer of biscuits, the first being USA. It is classified under two sectors: organized and unorganized. The present biscuits-bakery sector in India looks like a battlefront. The battle being led by stalwarts like Britannia and Parle with close competition from other companies like ITC, Nutrine, HLL Kissan, Kwality and even international brands like Kellogs, Nestle, Sara Lee and United Biscuits. The biscuit segment has developed with large markets of mass consumption covering over 90% of the overall potential market. The country comprises of huge unorganized sector. Biscuits market on an average grew at 8% per annum in the last five years. The rural penetration of the branded biscuits segment is also significant. Towns with populations of less than a lakh contribute significantly to the industry's turnover, with some estimates placing it at 40%. However, rural markets largely consume lower-priced varieties, and it is here that branded biscuits meet with stiff competition from the unorganized sector. The unorganized sector in the biscuits segment does exert pressure on the pricing policies of the organized players. But only up to a point since the penetration of brands in this business even in the rural areas is fairly significant. Therefore, the value for only the branded business segment is more indicative of the industry's competitive pressures. Three domestic players, Britannia, Parle and ITC, have thus far dominated the marketwith an average annual growth of 10-12%. According to the Federation of Biscuit Manufacturers of India (FBMI), 60% of the total market is organized and the restunorganized. As per a research conducted in 2006 though ITC was able to increase its market share by a significant percent, Britannia still is the leader with highest volume of sales and value market share. Researcher says that Parle has been Britannias toughest competitor. The biscuit market in India still has lot of room for expansion from the existing players and the new entrants.
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Major Players in the Industry
BRITANNIA INDUSTRIES LTD.(BIL) PARLE ITC Ltd. Surya Foods & Agro Ltd. (PRIYA GOLD)
In the 21st Century, Britannia strode as one of India's biggest brands and the pre-eminent food brand of the country. It was also equally recognized for its Innovative approach to products and marketing.
Britannia- its Market Share and Overview
BIL is the leading player in Bakery Products (Biscuits, Bread, Rusk and Cake), jointly promoted by French food major Danone and Nusli Wadia. It enjoys market leader ship in Biscuits with 39 % market share in terms of value. It owns key brands like Tiger, Good Day and Marie Gold. There are six brands contributing to 90% of its sales. Each of these brands generate sales exceeding Rs.1 billion and these brands include Good Day, Tiger, 50:50,Treat, Milk Bikis, and Marie Gold.
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The company wants to give a special thrust on these brands for better margin. New variants in these brands, attractive packaging formats and introduction of small SKUs are expected to give volume growth in the domestic market. In the last year these brands achieved double-digit growth. BIL enjoys market leadership in all the sub-categories of biscuits, except in the Glucose category where Parle is the leader. A recent strategic acquisition of 50% stake in Bangalore based Daily Bread gives footholds in premium breads, cakes and high end ready to eat foods and snacks. BIL is looking forward to increasing its stake in it from current stake of 50%.
Unwavering growthDespite of immense competition, BIL has managed stable growth in its top-line. Last Year most of its pillar brands have achieved double-digit growth. This was due to Market-specific promotion activities, new products and variants in existing products, and a variation in packaging formats.
OOH Consumption MarketBritannia is playing aggressively in the Out Of Home Consumption market, which has Enormous potential. The low unit products help in broadening the customer base. Small and convenient SKUs attract more consumers to consume these, while they are outside the home. Chota tiger has been launched at Rs.2/- for 50 gms similarly Marie gold has been launched at Rs.5/- for 75 gms, 25 gms of Little Heart at Rs.4/-.We believe that OOH category will contributes about 7-8% of total sales in next two to three years.
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Margin ErosionDue to steep rise in input costs especially in wheat, sugar, oil etc. we had seen margin erosion in last few quarters but we believe because of good monsoon across the Country, should stabiles or reduce the prices of these commodities. Management is looking for increase the proportion of high end products like Greetings, which would help in margin improvement and also improve its product mix.
New FrontiersBritannia is planning to increase the proportion of high end products and enhance newer attractive packaging formats for High end products. Beside this last year its sale through modern trade format grew by 100 % and BIL is trying to enhance display for products in modern trade outlet. As stated earlier Britannia is playing aggressively in the Out Of Home Consumption market, which has enormous potential and with acquisition strategic share of Daily Bread BIL is now holding brand Deluca in India. Britannias Exports are v