A SUMMER TRAINING REPORT ONMARKETING STRATEGIES OF BRITANNIA MILK PRODUCTS

SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF BACHELOR OF BUSINESS ADMINISTRATION (BBA)

TRAINING SUPERVISOR MR. N.K MOHANTY DIRECTOR SALES

SUBMITTED BY SAURABH MAGAN ENROLLMENT NO. 05511242050

SESSION 2005-2008

GURU JAMBHESHWAR UNIVERSITY

HISAR

ACKNOWLEDGEME NT

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ACKNOWLEDGEMENTThe present work is an effort to throw some light on Marketing Strategies of Britannia Milk Products. The work would not have been possible to come to the present shape without the able guidance, supervision and help to me by number of people.

I want to thanks to those people to whom whenever I approached for help they have given me their valuable time. First of all I want to take the opportunity to thank MR. N.K MOHANTY, Britannia Industries ltd. for his appreciation and guidance.

SAURABH MAGAN

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EXCECUTIVE SUMMARY

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EXECUTIVE SUMMARYThe title of the project is An Empirical Study On Marketing Strategies Of Britannia Industries Limited.

For that the survey of 150 consumers and 200 retailers had been made and it is found that cheese product is not properly marketed. This product is lacking in promotion activities such as advertisement, schemes, and also in distribution system.

The results of both consumer & retailer survey has been presented. Consumer survey includes consumer behavior & retailer survey emphasis on the effect of retailer push energy on the demand of cheese products

TABLE OF CONTENTS5

TABLE OF CONTENTS1. INTRODUCTION

7-10

ABOUT THE COMPANY PRODUCT INUDSTRY SWOT ANALYSIS 11 12-14

2. OBJECTIVE OF THE PROJECT

3. RESEARCH METHODOLOGY

RESEARCH DESIGN DATA SOURCES PRIMARY DATA SECONDARY DATA QUESTIONNAIRE DESIGN/FORMULATION SAMPLE DESIGN LIMITATION 15-21 22-27 28-30 31-52 53 54-55 56-58 59-63 64

4. COMPANY FROFILE 5. BRITANNIA PRODUCTS 6. CLASSIFICATIONS OF PRODUCTS 7. DATA ANALYSIS 8. CONCLUSION

9. LIMITATION 10.RECOMMENDATIONS11. ANNEXURE

QUESTIONNAIRE

12. BIBLIOGRAPHY

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INTRODUCTION

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INTRODUCTIONThe title of the project is An Empirical Study On Marketing Strategies Of Britannia Industries Limited. To understand the project properly we should know about the marketing research and about the market share i.e. what does exactly it means.

WHAT IS MARKETING RESEARCH AND CONSUMER BEHAVIOURMarketing research is the function that links the consumer, customer, and public to the marketer through information used to identify and define marketing opportunities and problems generate refine and evaluates marketing action, monitor marketing performance and improves understanding of marketing as a process. Marketing research specifies the information required to address these issues, designs the method for collecting information manages and implements the data collection process analyzes and communicates the findings and their implication. American Marketing Association: Official definitions of marketing research Marketing research is the specification, gathering, analyzing and interpretation of information that links the organization with its market environment.

ABOUT THE INDUSTRYThe Indian economy continues to grow at a healthy pace with a 6.9% growth in the financial year 2006-07 on the back of robust showing by manufacturing and service sectors. Within FMCGs, the biscuit industry showed a robust volume growth last year. The organized and branded biscuit industry in India is currently estimated at around 900,000 tonnes having grown 12% last year, as compared to the 7% growth of the FMCG sector. New players have entered the market at the national level and the regional level, making the industry dynamic and very competitive.

OVERVIEW OF BRITANNIA INDUSTRIES LTDBaking practices were well known to Indian cuisine for thousands of years, but the humble biscuit became a familiar and commonplace item of diet only during the 20th century. The products and marketing strategies of Indias premier food company Britannia Industries. Limited over the last century have been responsible for this remarkable dietary acculturation.

PRODUCT INDUSTRYBritannia was incorporated in 1918 as Britannia Biscuits Co Ltd in Calcutta. In 1924, Peak Freans, UK acquired a controlling stake, which later passed on to the Associated 8

Biscuits International (ABI) a UK based company. During the 50s and 60s, Britannia expanded operations to Mumbai, Delhi and Chennai. The exports of seafoods started in the 70s. In 1987, Nabisco Brands Inc, a well-known European food company, acquired ABI. In 1989, J M Pillai, a Singapore based NRI businessman along with the Groupe Dan one acquired Asian operations of Nabisco, thus acquiring controlling stake in Britannia. Later, Groupe Dan one and Nusli Wadia took over Pillais holdings. In 1977, the Government reserved the industry for smallscale sector, which constrained

BRITANNIAS MILESTONE2003 2005 2006 2007 Sales crossed Rs 10,000 million. (235 MN. Used) Sales increase by 14.43%, total sale of 1338.10 crores. Profit of 70.5 crores, an increase of 38.24%. The creation of a centralized set-up for payables processing, accounting and MIS systems in the corporate office at Bangalore.

2004 Opened a new category: SNACKING PRODUCTS.

MISSION OF THE COMPANYTo dominate the food and beverage market in India through a profitable range of tasty yet healthy products Regarding the basis of setting mission and vision statement, Britannia gives top most priority to customer satisfaction, followed by quality, market leadership, increased profit variety, sales turnover and profit maximization.

CONSUMER BEHAVIOURConsumer behaviour studies how individuals, groups and organizations select, buy, use and dispose of goods, services, ideas, or experiences to satisfy their needs and desires. Consumer behaviour can be also defined as the behaviour that a consumer exhibits before buying the products; it includes the kind of search that a consumer made about the product. While using the product, includes when where and how the consumer is using the product. and after using the product, includes post sale facilities e.g. service, repairs. Understanding consumers and knowing consumers are never simple. Consumers may state their needs and wants but act otherwise.

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SWOT ANALYSISSTRENGTHS Right products, quality and reliability. Superior product performance vs. competitors. Brand Image Products have required accreditations. High degree of customer satisfaction.

WEAKNESSES Some gaps in range for certain sectors. Processes and systems, etc

OPPORTUNITIES THREATS Legislation could impact. Existing core business distribution risk High volume/low cost market is intensely competitive. Profit margins will be good. Could seek better supplier deals.

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OBJECTIVE OF THE PROJECTAs the project was to identify the reasons for inconsistent sales of cheese product, which includes the study of consumer behaviour and retailer survey. The question arises why company need this kind of project. The main harms to the company from inconsistent sales are

1. OVER OR UNDER PRODUCTION.Inconsistent sale leads to over or under production. Over production increases the investment of company in stock due to that company is not able to make optimum use financial sources. Under production is also major problem because the company is not able to satisfy the demand of the consumers. E.g. If a retailer is not able to provide a product for one or more time then the customer do not asks again for it.

2. If the demand is not stable then the company is not able to introduce new and plans.

ideas

3. In short inconsistent sales cause wastage of manpower, technology, raw material, funds, loss of customers etc.

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RESEARCH METHODOGLOGY

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RESEARCH METHODOGLOGY

SAMPLE INSTRUMENT USED METHODS OF DATACOLLECTION

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RESEARCH METHODOLOGYAll the data presented here is collected directly from the consumers & retailers survey. Whole data is primary. The consumer survey of 150 consumers and 100 retailers is done. For the consumers survey a questionnaire was prepared and data collected from various shopping malls, picnic spots, and houses are visited. Retailer survey is carried out in south Delhi. For retailer survey south Delhi was divided into four parts and data was collected equally from these parts. The retailer survey was based on simple conversation with the retailers about the problems with cheese product. Number of retailers Place Greater kailash-1 Kalkaji Alaknanda East of Kailash R. K Puram South ex Saket Lajpatnagar Motibagh surveyed 5 3 5 5 4 5 4 7 5

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COMPANY PROFILE

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COMPANY PROFILEBRITANNIABritannia was incorporated in 1918 as Britannia Biscuits Co Ltd in Calcutta. In 1924, Pea Frean UK acquired a controlling stake, which later passed on to the Associated Biscuits International (ABI) a UK based company. During the 50s and 60s, Britannia expanded operations to Mumbai, Delhi and Chennai. Exports of sea foods started in the 70s. In 1987, Nabisco, a well known European food company, acquired ABI. In 1989, J M Pillai, a Singapore based NRI businessman along with the Groupe Danone acquired Asian operations of Nabisco, thus acquiring controlling stake in Britannia. Later, Grop Danone and Nusli Wadia took over Pillais holdings. In 1977, the Government reserved the industry for small scale sector, which constrained Britannia's growth. Britannia adopted a strategy of engaging contract packers (CP) in the small scale sector. This led to several inefficiencies at the operating level. In April 97, the Government dereserved the biscuit sector from small scale. Britannia has expanded captive manufacturing facilities and has modernized and upgraded its facilities in the last five years. It has also forayed into the Dairy Business with the launch of Cheese, Butter, Ghee, Dairy whitener and flavored milk products.

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PLANT LOCATIONSBritannia's plants are located in the 4 major metro cities - Kolkatta, Mumbai, Delhi and Chennai. A large part of products are also outsourced from third party producers. Dairy products are out sourced from three producers - Dynamix Dairy based in Baramati, Maharashtra, Modern Dairy at Karnal in Haryana) and Thacker Dairy Products at Howrah in West Bengal.

BUSINESSBritannia core businesses constitute of Bakery and Dairy products. Bakery products account for 90% of the revenues and include Biscuits, Bread and Cake & Rusk. Dairy products contribute to 10% of Britannias annual turnover of Rs13.38bn. Biscuits (82.7% of turnover) Revenues from biscuit were Rs11.07bn in FY01. The company sold 214,214 tons of biscuits registering a volume growth of 11% yoy. Biscuit sales in value terms registered a 13.2% yoy growth. Britannia has a 40% volume share and 48% value market share in the organized biscuit market. The company presently has an installed capacity of 111,000 tons for biscuits. Production in FY01 was 59657 tons against 62034 tons in FY00. Over 70% of biscuits sold are outsourced by the company. Over the years, Britannia has introduced and developed a full line of brands in all segments of the biscuit market. The company's Tiger range of glucose biscuits have been a runaway success, enabling the company to expand its presence in the largest gluco category of the biscuit market. In salty-sweet segment Parles Krackjack and Britannias Fifty-Fifty compete very closely. Britannias other major brands include Marie, Thin Arrowroot, Bourbon, Milk-bikis, Nice, Snax, Coconut Crunchies, Pure

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Magic, Good Day, Jim-Jam and Chekkers. It has also launched biscuits like Vita MarieGold, Nutri-Choice etc, under the health positioning.

BREAD (4.6% OF TURNOVER)Britannias bread business has been gradually degrowing year after year. Bread sales at Rs420mn accounted for just 4.6% of turnover in FY01, against 5.7% of turnover in FY00. The company sold 42450 tons of bread in FY01, a volume degrowth of 9.4% yoy. The company has an installed capacity of 12000 tons.

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DAIRY PRODUCT (9.8% IF TURNOVER)The company's diversification into dairy business has been fairly successful. Dairy product sales were Rs1.3bn in FY01. The company has relaunched all its dairy products under the MilkMan brand name. New flavors like Milkman Cold Coffee and Milkman Lassi have been launched in flavored drinks besides MilkMan Chocolate Milk and Milkman Strawberry Milk. Cheese, dairy whitener, butter and ghee are the other products sold under the MilkMan brand. Britannia outsources its dairy products from Dynamix Dairy in Maharashtra, Modern Dairy in Haryana and Thacker Dairy Products in West Bengal. During FY01 the company sold 13039 tons of dairy products, a 50% yoy growth over 8820 tons sold in FY00. Britannia has invested Rs58.3mn in the equity of Dynamix Dairy in FY01.. The Dairy business is proposed to be divested into a Joint Venture with the New Zealand Dairy Boards Fonterra Cooperative. Britannia hopes to gain from the R&D support as well as access to the international product portfolio of the JV partner.

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CAKE & RUSK (2% OF TURNOVER)Cake and Rusk sales were Rs271mn (2% of sales) in FY01. Volume growth was 2.6% yoy with sales of 3082 tons. In value terms, sales grew by 12% yoy.

EXPORTSBritannia has discontinued commodity export of Soya bean. Export of marine products has also declined significantly. The company now mainly exports biscuits and cheese to neighboring countries like Sri Lanka and Africa

Production breakupPeriod ended No. of months Biscuits (Ton) Bread (Ton) Cake & Rusk (Ton) 03/98 12 49,447.0 5,602.0 2,282.0 03/99 12 53,092.0 2,858.0 03/00 12 62,034.0 2,905.0 03/01 12 59,657.0 2,139.0

PRODUCTION VOLUME (UNIT)

Dairy: India has emerged as the largest milk producing country in the worldmanufacturing 81mn tons of milk pa. Britannias dairy business has been growing at a fast pace on the low base. Volume growth was 50% and value growth was 47% in FY01. In value terms the Dairy business contributed to 10% of turnover in FY01. Prior to the entry of Britannia, the organized market for dairy products like butter and cheese was dominated by the regional milk cooperatives, such as Amul, Vijaya, etc. Imported brands are also freely available in the country today. In the organized domestic segment, Amul remains the dominant player and will continue to be a stiff competitor, given its sourcing advantage and market suaveness.

NEW VENTURE

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Britannia Industries Ltd. (BIL) has entered into a joint venture with the Fonterra Cooperative group, New Zealands biggest company and a leading dairy co-operative group in the world. The new joint venture would be know as Britannia New Zealand Foods private Ltd. and both the companies would hold 49 per cent stake each while a strategic partner will have the remaining 2 per cent, BIL said in a statement here on Tuesday. Bangalore-based BIL would transfer its existing dairy business to the new joint venture, which comes into effect from Wednesday. The new company would be engaged in areas relating to sourcing manufacturing and distribution of milk and milk products in India. BIL chairman Nusli Wadia, in a statement, said the new company would have full access to Fonterras R&D strengths to help in further upgrading product quality and reducing production costs. The combined strength of the two would constitute a formidable force in meeting consumer needs and developing presence in the dairy segment, he added. The joint venture would be uniquely positioned to become one of Indias leading players in the dairy segment.

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BRITANNIA PRODUCTSBritannia is recently re-launched its dairy products after a gap with the milk man brand name to compete with mainly Amul and Vijaya.

Milkman Cheese Made exclusively from cows milk Permitted emulsifiers, preservatives and stabilizers added. Directly consumable Need refrigerated storage Use in various food preparation It is a protein rich product in pre digested form

MILKMAN DAIRY WHITENERIt is dry milk powder comes in papers and Tin pack. It is ultimate of liquid milk for preparing tea and other beverages.

MILKMAN BUTTER Having maximum amount of milk fat Need refrigeration Refrigerated life in 12 months Packed in A1 foil packs Delicious taste and good spread ability

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MILKMAN GHEE Granular and white in colour Complete milk fat Used as a cooking medium Directly consumable Self life of 12 months at friendly temperature Hygienically packed and prepared Rich source of energy Pleasant in flavour

BRITANNIA BUTTERBritannia Butter is made from Butter, Common Salt, permitted natural colourAnnatto.

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COMPOSITION: Milk Fat 80% Moisture 16% Salt 2.5% Curd 0.8% CALORIFIC VALUE: 720 KCAL./100G SPECIAL FEATURES: Made from fresh cream by modern continuous butter making machines. Marketed in India since 4 decades. BRITANNIA DAIRY WHITENER Britannia dairy whitener is made from partially skimmed milk and sugar. Composition: Milk Fat 20% Milk Protein 21% Carbohydrates : Lactose 33% Sugar 18% Minerals 5% Moisture 3% Calorific Value: 470 kcal./100gm Special Features :

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Packed under an atmosphere of Nitrogen, has excellent natural miscibility (without the use of lecithin), has a fine granular texture. A convenient alternative to condensed milk. Marketed in India since last 6 years. Cheese Britannia Pasteurize Processed Cheddar Britannia pasteurized processed cheddar cheese is made from Cheese, Sodium Citrate, Common Salt, Citric Acid, permitted natural colour - Annatto. Emulsifier and Class II preservatives. COMPOSITION: Fat 27% Moisture 45% Proteins 23% Added salt 2.5% Calorific Value: 340 kcal./100g Special Features : Made from graded cow/buffalo milk using microbial rennet. Britannia Cheese Spread Britannia cheese spread is made from Soft Cheese, Cheddar Cheese and Common Salt.

COMPOSITION : Fat 18-20% Moisture 60% Protein 14-15% Adds Salt 1.8%

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Sodium Citrate 2.5% Calorific value : 240 kcal./100g

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SPECIAL FEATURES:Highly acceptable product made from the most modern dairy plant through a special formulation.

BRITANNIA PURE GHEEMade from fresh cream has topical rich aroma and granular. An ethnic product made by dairies with decades of experience.

COMPOSITION: Milk Fat 99.7% Moisture 0.3% Calorific Value: 900 kcal./100g Special Features: Made from fresh cream. Has typical rich aroma and granular texture. An ethnic product made by dairies with decades of experience. A rich source of Vitamin A, D, E and K.

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PERSPECTIVEThe Operation Flood (OF) programme initiated by NDDB in 1970 was a planned attempt to revive India's Dairy Industry from a premature stagnation. The OF programme not only propelled the growth of dairy development in India, it also helped India become the world's largest milk producer. OF enhanced the incomes and quality of life for millions of India's dairy farmers, most of them poor and many of them women. It has become India's largest Dairy Development Programme. OF (1970-1996) created a strong foundation to transform India's dairy sector into a vibrant business activity. It paved the way to take up new initiatives and create new conditions to firm up India's world leadership in milk production. The new challenge for the Dairy Industry was to explore ways to emerge stronger using the network created under OF. The response is Perspective 2010, a plan that attempts to take the dairy cooperative movement to its highest potential. Perspective 2010 focuses on four key areas. These include Strengthening Cooperatives Business, Production Enhancement, Assuring Quality and creating a National Information Network. The State Milk Marketing Federations and the Milk Producers' Cooperative Unions, the architects and key beneficiaries have identified the thrust areas. The plan is designed keeping at helm the benefit to farmers at large. NDDB facilitated the planning process and will provide technical support and needbased finance for implementing Perspective 2010.

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CLASSIFICATIONS OF PRODUCTSDELHIs Milk Product Mix Fluid Milk Ghee Butter Curd Khoa (Partially Dehydrated Condensed Milk) Milk Powders, including IMF Paneer & Chhana (Cottage Cheese) Others, including Cream, Ice Cream Total 46.0% 27.5% 6.5% 7.0% 6.5% 3.5% 2.0% 1.0% 100%.

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3.5 2.0 1.0 6.5

7.0

6.5

46.0

27.5

Fluid Milk Ghee Butter Curd Khoa (Partially Dehydrated Condensed Milk) Milk Powders, including IMF Paneer & Chhana (Cottage Cheese) Others, including Cream, Ice Cream

MODERN TRADE STORES OF SOUTH DELHIBIG APPLE (EAST OF KAILASH) 24 X 7 Lajpat Nagar & GK-II Food Plus (GK-II) Morning Store (GK-I) Star Bazar (Kailash Colony)

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Sabka Bazar (NFC, KG, Kalkaji, Lajpta Nagar)

Items (Dairy Products) 1. Types of Cheese

Cheese Item Cheese Cika (Natural Cheedar) Cheer Spread Plain Masala Herb, Minty Coriander, Peppy

Cilantro, Sour Cream & Onion Cheese Cube Cheese Slice Cheese Dip Pizza Cheese

2. Dairy Whitener 3. Ghee 4. Butter

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DATA ANALYSIS

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DATA ANALYSIS

Factors responsible for inconsistent sale of DAIRY PRODUCTS are analyzed under the following heads.

A. Consumer survey (Study of consumer behavior). B. Retailer survey.

CONSUMER BEHAVIOR

Consumer behavior is the behavior that a consumer exhibits before buying a product, while using the product and after using the product. So consumer behavior plays important role in influencing the demand of a product. Consumer behavior is unpredictable it can be predicted if we know the eating habits of the consumers. To study the consumer behavior for dairy products following points are studied.

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BRAND AWARENESS

A Brand is a name, term, sign, symbol, or a combination of them, intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors.

A brand is essentially a sellers promise to consistently deliver a specific set of features, benefits and services to the buyers. The best brands convey a warranty of quality. To study the brand awareness for dairy products, 160 people were asked that whether they know about dairy products of Britannia or not? Out of 160 people surveyed, 110 were found aware of Britannia dairy products. That means 73.75% people were aware of Britannia dairy products. And only 26.25% were not. From the above analyses we can say that Britannia dairy products, have average brand awareness.

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FREQUENCY OF CONSUMPTION OF BRITANNIA DAIRY PRODUCTS.The sale of a product is very much influenced by the frequency of consumption of that product. If the frequency of consumption is regular, then the sales increase consistently with addition of new consumers.

To study the kind of consumers for Britannia dairy products whether regular or occasional Survey of 150 consumers is done and following data is recorded.

Regular consumers Occasional consumers Total consumers surveyed

64 86 150

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100 90 80 70 60 50 40 30 20 10 0 regular consumers occasional consumers

As the regular consumers of Britannia dairy products are only 42.66% and occasional consumers are 57.33% this causes inconsistent sales.

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Reasons for higher occasional consumer purchase for Britannia Dairy Products are: -

1. People do not have the habit of consuming dairy products daily. 2. People avoid fat food because of fear of health problems. 3. People find it expensive so it cannot be consumed regularly.

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INFORMATION SOURCE FOR BRITANNIA DAIRY PRODUCTSIn dairy industry the demand of a product very much depends on advertisement. It is the only source that motivates a consumer to purchase a particular product. So here an attempt is made to find out the most effective media for Britannia dairy products

Out of 150 consumers surveyed

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TVADVERTISEMENTS

138

BOARDS RETAILERS FRIENDS BOTH TV & RETAILERS BOTH TV & BOARDS TOTAL CONSUMERS SURVEYED

7 5 2 5 3 150

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RELATION

BETWEEN

DEMAND

FOR

BRITANNIA

DAIRY

PRODUCTS AND CONSUMER AGE.Every product has a target age group consumers and it is positioned according to that. To study the target age for britannia dairy products a question was asked, whether they purchase Britannia dairy products for there family or not. If yes then which age group demands more for britannia dairy products? Out of 150consumers surveyed: 76% said Yes purchase for family. 24% said do not purchase for family.

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PURCHASE FOR FAMILY

120 100 80 60 40 20 0 YES N O

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Out of 76%, who purchase britannia dairy products for their family, they purchase britannia dairy products for following age group. AGE GROUP (YEARS) 5-10 10-18 18-25 25 ONWARDS NO OF PEOPLE 2 14 50 48 From the above analysis it can be said that jointly 1525 () is the target age group for

britannia dairy products. So the advertisement and promotional activities should be

60 50 40 30 20 10 025 O nw ards 15 to 25 10 to 18 5 to 10

according to this age group.

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BRITANNIA DAIRY PRODUCTS AS REGULAR FOOD?Britannia dairy products is a product whose packing, size, shape and crunchiness makes it look GOOD. When people were asked how they view britannia dairy products as REGULAR FOOD? The following results were recorded. Out of 150 consumers surveyed 112 consumers i.e. 56% views britannia dairy products as a regular food& 88

consumers i.e. 44%views as a optional food.

regular

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KIND OF PURCHASE FOR BRITANNIA DAIRY PRODUCTSTo study the purchase category of britannia dairy products whether planned or impulse a question was asked in the questionnaire that , what kind of purchase they make of britannia dairy products? Following results were recorded. PLANED PURCHASERS IMPULSIVE PURCHASERS TOTAL 81 150 69

PLANED 46% IMPULSE 54%

So from the above analysis we can say that britannia dairy products is more in impulse purchase category, as we know products of impulse purchase category needs very heavy advertisement.

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CHANGE IN THE CONSUMPTION OF THE BRITANNIA DAIRY PRODUCTS.When people were asked whether they have recorded any change in their consumption of britannia dairy products by last 3-4 months or not. Following results were recorded. Out of 150 consumers surveyed:-

No Change 93

Increased 38

Decreased 19

100 90 80 70 60 50 40 30 20 10 0 N Change o Increased Decreased

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So we find that the majority of consumers 62%, has recorded no change consumption of britannia dairy products. Only 25% consumers as per survey have recorded

increase and 13% consumers has recorded decrease in the consumption of Britannia dairy products.

B. RETAILERS SURVEYIn Britannia dairy products, due to Brand clutter there is very tough competition and very less product differentiation. The consumer leaves his decision on the retailer. Now days consumer simply asks the retailer for a sweet or fat cheese productst. It is up to the retailer which product he offers, so the retailer is king in dairy products.

In retailer survey an attempt is made to study following issues What motivates a retailer to sell britannia dairy products? Whether retailer push energy influence the demand of Britannia dairy products or not? Problems faced by the retailers in selling britannia dairy products?

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WHAT MOTIVATES A RETAILER TO SELL BRITANNIA DAIRY PRODUCTS?There are a lot of factors that a retailer seeks from the company to sell a particular product. For britannia dairy products when this question was asked to the retailers, they suggest lot of factors. but the common factors they replied were following.

MARGIN SCHEMES PROPER SUPPLY CREDIT REPLACEMENT

Higher margin is the most important thigh that a retailer seeks from a company. Generally the decision of a retailer to sell a particular product is dominated by the comparison of margin with other products of that kind. The retailers compare britannia dairy products with both amul and mother dairy Because Britannia dairy products are hanged with good quality so they are close competitor of amul. Second main thigh that motivates a retailer is the schemes with the products. Commonly companies use to provide various retailers schemes to attract them to sell their product. The most common schemes are some gift items, free samples, discounts on bulk purchase. Same is in case of britannia dairy products the retailers often seeks for schemes. britannia dairy products is providing various retailers time to time. Now

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a days the scheme with britannia dairy products is a free pack of biscuits with purchase of cheese. Proper supply is the thigh that retailers want. In case co britannia dairy products, as dairy products is in the category of impulse purchase, it should be hanged at front and the supply should be regular. Another important thing that the retailer seeks is the credit facility. The retailers of britannia dairy products have to invest a huge amount in keeping various kinds of dairy products. Small and even big retailers have some time problem in keeping stock of britannia dairy products .As the sales of britannia dairy products are not so good and retailers are not able to sell the stock for a longer period, so they need credit facility. Replacement of the products with complaints is another factor that a retailer wants from a company. Many times in case of packed food there are complaints of rat biting and brokered in which the retailer cannot be held responsible. It is with britannia dairy products the retailer have problems of air leakage and rat biting and they want replacement. if u will purchase a retailer can enjoy these schemes

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Skims Cheese Slice (60pcs) Cheese Cube (60pcs) Cheese Spread (60pcs) Cheese Cika(30pcs) Cheese Tin (30pcs) Butter (15 kg) Ghee (1kg) 12 Bourbon Biscuits free 7 Bourbon Biscuits free 1 Good Day Biscuits free 12 Bourbon Biscuits free

Dairy whitener (12kg) 17 50-50 Biscuits free

70 60 50 40 30 20 10 0 cheese butter dairy whitener ghee market share

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SURVEY RESULTS FOR MARGIN WITH BRITANNIA DAIRY PRODUCTSOut of 200 retailers surveyed 163 (81.4%) reported that the margin is good with britannia dairy products and 37(18.6%) reported poor margin.

180 160 140 120 100 80 60 40 20 0 MARGIN IS OK MARGIN IS POOR

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NOTE: -

Here we can find that the majority of retailers have reported that the margin is ok or good with britannia dairy products. According to some retailers if the demand is good for a product then its margin do not matters. So company must focus on increasing the demand.

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SURVEY RESULTS FOR SUPPLY OF BRITANNIA DAIRY PRODUCTSRegarding the supply of britannia dairy products the results are not favorable to company. The supply of britannia dairy products is not very good. From retailer survey it is analyzed that, only 124 (62.5%) retailers has on time supply and rest 76 (38.5%) has very poor supply.

140 120 100 80 60 40 20 0 GOOD SUPPLY POOR SUPPLY

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NOTE

The retailers who have recorded poor supply of britannia dairy products, most of them are facing this problem just after the separation of distributors for britannia dairy products from other products of Britannia.

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CONCLUSION

ADVERTISEMENT DEPENDENT DEMAND. The demand of britannia dairy products depends heavily on advertisement. If the advertisement is regular and frequency is high then the demand is also high. The demand of dairy products was not so good before five to six months. Due to that many retailers stop selling britannia dairy products. This causes instant slump in the demand of britannia dairy products. The third main reason for the slow down in the demand of britannia dairy

products would be poor distribution system of britannia dairy products. After the separation of the distribution of britannia dairy products from other products, the supply of britannia dairy products was not proper. The retailers are getting the supply once in one or two months. Introduction of new schemes with other products like amul, mother dairy products also affect the demand of britannia dairy products. Higher impulsive and occasional purchase is also the reason for the up & downs in the sale of britannia dairy products.

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LIMITATIONS

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LIMITATIONS Number of consumers and retailers survived may be inadequate to represent the whole scenario of Delhi market.

Not every retailer & consumer have positive attitude towards the survey, so the information collected may be inaccurate.

It is also possible that the respondent may answer according to what they think rather they do.

Some of the respondents are unwilling to answer because they feel that such surveys are of no use.

The conclusions are drawn on the basis of response given by 200 retailers and 150 consumers. There is possibility of misunderstanding their views.

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RECOMMENDATIONS

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RECOMMENDATIONSThe suggestions, if adopted then the company may expect no further up and downs in the sales of britannia dairy products and sales will definitely increase with consistency. After the survey of 150 consumers & 200 retailers the conclusion comes out that, there is need to improve the distribution system of britannia dairy products. It is noted that supply is mostly regular at shops with heavy investment and are placed at centre of good residential places, such as Sabka Bazar, Apana bazaar. Many retailers do not have regular supply. The areas such as alaknanda, kalkaji, gk-1, South ex, rk puram has very poor supply. Some of the retailers have reported supply once in one - two months. The suppliers are ignoring small retail shops. So the most important thigh is to improve the supply in both small & large shops. britannia dairy products is a product mostly liked by the 15-24 age group as per survey, So there is need to start some schemes for youth to motivate them to purchase britannia dairy products. britannia dairy products has higher impulse purchase than planed so to increase in the planed purchase the frequency of advertisement should be increased. Attractive hangers or stands should be provided to the retailers so that they can easily put the bars of britannia dairy products out side to increase in sales by increase in impulse purchase. Retailer is the king in the dairy products. Retailer push energy also works in promoting the sales of britannia dairy products. So there is need to motivate the retailer through regular retailers schemes.

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For e.g. Pepsi is giving one bottle free on the purchase of one crate of 500 ml.

M.D.H is giving special discount on the purchase of more than Rs 500.

The quantity in the small pack for Rs 4 is less (20 gm). The pack should be priced for Rs.5 and the quantity should be increased by10 gm. Introduction in new sweet & salty flavors. Due to introduction of new flavors the investment of retailers In britannia dairy products has increased. Now they have to invest four times in the britannia dairy products. The demand of britannia dairy products is not so good , so they must be given credit period of two weeks Other suggestion given by the consumers includes: Reduction in the saltness. Improvement of taste. Following SWOT analysis is based on the researchers observation of the market while conducting the research and projects data analysis.

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1.

ANNEXURES

Questionnaire to study the consumer behavior for Britannias dairy products. PERSONAL DETAILES Name Age Profession Address 1. ARE YOU AWARE OF BRITANNIAS DAIRY PRODUCTS? (a) (b) YES NO Date : Place :

2. HAVE YOU TRIED CHESSE PRODUCTS? (a) (b) YES NO

3. DO YOU CONSUME DAIRY WHITENER REGULARLY? IF NOT WHY? (a) YES

(b) NO

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4.

WHICH TYPE OF CHESSE DO YOU LIKE MOST? (a) CHESSE CUBE (b) CHESSE TIN (C) CHESSE SLICE (d) CHESSE PIZZA

5. HOW DO YOU COME TO KNOW ABOUT CHEESE PRODUCTS? (a) T V ADVERTISEMENT (b) BOARDS (c) RETAILERS (d) FRIENDS 6. ON WHAT OCCASIONS DO YOU LIKE TO CONSUME CHESSE PRODUCTS? (a) __________________________________________ (b) __________________________________________ (c) __________________________________________

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7. WHAT KIND OF PURCHASE DO YOU MAKE OF DAIRY PRODUCTS (a) PLANNED (b) IMPULSE. 8. HOW DO YOU VIEW BRITANNIA DAIRY PRODUCTS AS? (a) REGULAR FOOD (b) OPTIONAL CONSUMPTION 9. HOW DO YOU FEELS OF SUBSTITUTING THE CONSUMPTION OF ___________________________________________________ ___________________________________________________ ___________________________________________________ 10. (B) WHICH AGE GROUP OF YOUR FAMILY DEMANDS MORE FOR

CHEESE WITH BUTTER?

DAIRY PRODUCTS? (a) 5 10

(b) 10 18 (c) 18 25 (d) 25 ONWARDS

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11. DO YOU THINK BRITANNIA VALUE FOR YOUR MONEY? (a) YES (b) NO

DAIRY PRODUCTS DELIVERS BEST

12. DO YOU HAVE RECORDED ANY CHANGE IN YOUR CONSUMPTION OF DAIRY PRODUCTS BY THE LAST THREE TO FOUR MONTHS? (a) NO CHANGE (b) INCREASED (c) DECREASED

13.

WHAT KIND OF COMMENTS, EITHER FAVORABLE OR UN THE RETAILERS WHEN YOU ASK

FAVORABLE DO YOU RECEIVE FROM FOR BRITANNIA DAIRY PRODUCTS?

___________________________________________________ ___________________________________________________ ___________________________________________________ 14. YOUR COMMENTS AND RECOMMENDATIONS? ___________________________________________________ ___________________________________________________

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BIBLIOGRAPHY

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BIBLIOGRAPHY2. 3. 4. 5.

Confederation of Indian Industries www.indianinfoline.com www.indiandairy.com www.britannia.com

6. www.amulindia.com

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