Britannia Nutrichoice - Future Scope
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Transcript of Britannia Nutrichoice - Future Scope
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1501068 AniketPhadnis
1501074 Aroop Sanyal
1501100 SabyasachiSahu
1501103 Saurabh
Bose1501104 NishantShah
1501108 Suitro!hosh
Group 1
BritanniaIndustries
NutriChoiceMarketing Management
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"able o# $ontentsBritannia %ndustries & An '(er(ie)******************************************************************************************************************3
Timeline of Britannia Industries Limited:......................................................................................................................................3
roduct ortfolio........................................................................................................................................................................... !
Ma"or la#ers................................................................................................................................................................................!
$%ards and &ecognitions:........................................................................................................................................................... .!
Current Trends and rospects in the Biscuit Industr#:..................................................................................................................!
B$! Analysis+*************************************************************************************************************************************************5
The 'og: Tiger Glucose...........................................................................................................................................................(
The Cash Co%: Good 'a# ) Marie............................................................................................................................................ (
The *uestion Mark: Cream Biscuits + ure Magic ) Bour,on...................................................................................................(
The -tar: ealth Biscuits + Nutrichoice................................................................................................................................. ../
,i-esti(e Biscuits & %ndustry '(er(ie)*************************************************************************************************************6
la#ers in the Market..................................................................................................................................................................../
-i0e of the Market........................................................................................................................................................................./
'riers........................................................................................................................................................................................../
Porter.s /i(e /orces***************************************************************************************************************************************7
Bargaining po%er of supplier...................................................................................................................................................2
Bargaining po%er of Bu#ers....................................................................................................................................................2
Threat of Ne% entrants............................................................................................................................................................2
&ialr# among sta,lished rials............................................................................................................................................ 2
Threat of su,stitutes...............................................................................................................................................................2
S'" Analysis***********************************************************************************************************************************************8
Se-entation************************************************************************************************************************************************8
"ar-etin-+******************************************************************************************************************************************************
Geographic..............................................................................................................................................................................4
'emographic...........................................................................................................................................................................4
s#chographic.......................................................................................................................................................................15
Behaioral............................................................................................................................................................................. 15
Positionin-**************************************************************************************************************************************************10
Product 2i#e $ycle****************************************************************************************************************************************11
arketin- i o# Nutrichoice************************************************************************************************************************ 11
The roduct................................................................................................................................................................................ 11
The rice.....................................................................................................................................................................................16
'istri,ution and lace......................................................................................................................................................... .......16
romotion...................................................................................................................................................................................13India7s 8rst health social net%orking site nutrichoiceiealth9:............................................................................................13
T%o sided message in adertising campaign........................................................................................................................ 13
Britannia7s Nutri"ig campaign:...............................................................................................................................................13
ecoendations+***************************************************************************************************************************************14
Increase Glo,al resence................................................................................................................................................... ...1!
lace......................................................................................................................................................................................1!
*ualit# and roduct...............................................................................................................................................................1!
Appendi*****************************************************************************************************************************************************16
-ummar# of &esponses..............................................................................................................................................................1/
BCG $nal#sis..............................................................................................................................................................................1
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Britannia
Britannia %ndustries & An '(er(ie)“123 years ago, in a small house in central Calcutta (now Kolkata) an intrepid baker
made a batch of delicious, golden brown biscuits !hese were meant for o"cers of the
#ritish $a% and their families, people used to the e&acting standards of 'nglish teatime
snacking rom the paeans of ecstasy for that *rst batch of aromatic, +aoursome
biscuits was born a long tradition of delectable baking and its -ndian custodian,
#ritannia.
B%"ANN%A 9A" :9A2":; ":%Nhao@
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Product Port#olioBritannia is India7s faourite food ,rand and a storehouse of po%er ,rands like Good 'a#@
Tiger@ NutriChoice@ MarieGold etc. %hich are household names in India.
Its product portfolio comprises of ,iscuits@ ,read@ cakes@ rusks@ and a host of dair#
products like cheese@ ,eerages@ dair# %hitener. ?ut of its 13 ,iscuit ,rands@ there are (
po%er ,rands that Britannia has identi8ed i0. Good 'a#@ Tiger@ (5:(5@ Marie Gold andNutriChoice.
a=or Players The ma"or competitors of Britannia in the ,iscuit industr# are arle and ITC %hich hae
market shares of 64.(F and 1!.F respectiel#. o%eer@ ne% entrants like Cad,ur#
India Ltd. %hich sells ?reo@ Mcitties and Glao-mith>line hae made the market
competitie.
A)ards and eco-nitions+• Britannia %as a%arded the Glo,al erformance cellence $%ard B# $sia aci8c
*ualit# ?rgani0ation in 6516• Britannia %as oted in top 355 small companies ,# Jor,es glo,al
• Britannia Industries %as a%arded the Brand Kuit# Most Trusted BrandsD according
to consumer sure#s in 6556• Britannia Industries %as conferred %ith the prestigious Golden eacock National
*ualit# $%ard.
$urrent "rends and Prospects in the Biscuit %ndustry+• Biscuits is epected to gro% ,# a alue C$G& of /F(
•
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B$! Analysis+
The BCG anal#sis gies us a ,etter picture of the ,iscuit industr# and ho% the arious
products of Britannia are faring isEOEis the competitors in the market. The market
shares and the gro%th rates are as indicated in the matri and in the $ppendi
Let7s start from the ,ottom:
"he ,o-+ "i-er !lucose The glucose market has taken a ma"or hit due to the arious ne% entries in the ,iscuit
segment. $ %ide range of cookies@ health ,iscuits@ and cream ,iscuits hae pushed
glucose ,iscuits out of the running. $lthough a lot of the lo%er middle class and lo%er
class prefer glucose ,iscuits due to the lo% costs@ the higher income societ# is moing
a%a# from it. arle G has a dominant hold in the glucose market commanding a massie
25F of the market share. ITC holds a market share of around E4 a little less than
Britannia.
"he $ash $o)+ !ood ,ay > arie
Britannia7s cookie ,rand good da# dominates the market share and so does the
u,iKuitous Marie. o%eer@ ,oth these markets are largel# saturated and the gro%thpotential is lo%. Britannia has ,een putting a lot of eort on the cookie segment %ith the
launch of ne% products@ and %e might see the gro%th pick up again courtes# these
factors. Marie is another segment %here Britannia holds a high market share@ ,ut due to
the lack of gro%th is feature as a Cash Co%
"he ?uestion ark+ $rea Biscuits & Pure a-ic > Bourbon
Cream ,iscuits has al%a#s ,een popular %ith a large ariet# of audience@ from small kids
to een adults looking for a Kuick snack.
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"he Star+ :ealth Biscuits & Nutrichoice
NutriChoice@ %hich %as launched in the nineties@ is leading the BriatanniaPs eorts to
create a ne% position of health in the ,iscuit market. The ,rand is no% %orth more than
&s. 65 crore. The health and nutrition ,ased ,iscuit segment in the Indian market is no%
%orth around &s. (55E/55 crore and gro%ing at a faster rate ;Business -tandard=. The
Nutrichoice ,rand has ,een riding on this gro%th since its relaunch in 655/@ %hich
coincided %ith the market stead# moing to%ards a healthier lifest#le. Nutrichoice toda#commands a massie market share of ((F %ith its closest rial ,eing Mcitties from
9nited Biscuits. The health ,iscuit segment has also %itnessed a gro%th rate of !5F
%hich is epected to continue.
The ealth Biscuit market is a relatiel# ne% one in India and is also gro%ing er# rapidl#.
Britannia Nutrichoice has a large chuck of the market share ,ut it is imperatie that the#
capitali0e this gro%th to not lose out on the market to the large num,er of competitors
entering this space %ith arle7s -impl# good and ITC7s Jarmlite
,i-esti(e Biscuits & %ndustry '(er(ie)
Players in the arket The ,iscuit segment in India has ,een historicall# dominated ,# 3 pla#ers: arle@
Britannia and ITC.
9nited Biscuits %hich inented this categor# has ,een a late entrant into the Indian
market ,ut has emerged as a su,stantial pla#er.
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Jocus is primaril# on ,uilding consumer preference %ith a strong drie ,uilt ,#
aggressie adertising.
Porter.s /i(e /orcesThe five forces affecting the industry
Bar-ainin- po)er o# supplier
The agro commodities ;Aour@ fats oil@ sugar= constitute roughl# !(F of all the ra%
materials procured ,# a compan# in this industr#. -ince the num,er of suppliers is high
and fragmented and the ,u#ers are less comparatiel#@ the market faors the ,u#ers
%hen it comes to suppl# demand economics. This gies procurers a high ,argaining
po%er oer suppliers
Bar-ainin- po)er o# Buyers
Biscuits are a lo%Einolement commodit#@ %hich fall under the conenience goods
categor#. ence@ it is er# eas# for consumers to s%itch from one ,rand to another
%ithout aecting their lifest#le. These goods are used for dail# consumption and do not
inole intensie decisionEmaking. There are man# alternaties aaila,le in the ,iscuit
market for a health segment ,# companies like ITC@ Britannia@ and 9B etc.
"hreat o# Ne) entrants The health ,iscuits industr# is supposed to 8ll the %ide gap left in per capita consumption
of ,iscuits ,# proiding a healthier alternatie. There has ,een a shift in the consumption
trend from econom# and midErange segment to health# ,iscuits that remains to ,e
tapped. This industr#@ %hich is currentl# alued at 655 cr in the 1(555 cr ,iscuit market@
has a er# high potential to gro%. ence@ man# companies are in the stage of launching
ne% health conscious ,iscuits that can compete %ith the ma"or pla#ers to o,tain their
share in this gro%ing market. ealth#D ,iscuits are slo%l# emerging as a ne% su,E
categor# in the Indian ,iscuit market@ %ith most of the ma"or homegro%n companieslaunching such products.
i(alry aon- 9stablished ri(als
The ealth
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-trength
Innoatie$dertisement
roidesSealth%ithTaste7,iscuits
roidingman#arietiesofhealth,iscuits
LeadingealthBrand,iscuitinIndiahaingmarketshareofappro.((Finealth,iscuitmarketighBrandalueofBritanniafollo%ed,#ighBrand&ecall
cal )155grams=
Glo,all#lessrecogni0ed.
Lo%penetrationintier3andtier!cities.$ll productsofNutri Choicearenotaaila,leinthesecities.
?pportunit#
Increasingdemandforhealth,iscuit
Targetingtheuntappedmarketintier3andtier!cities
Gro%ingMiddleclass%ithrisingspendingcapacit#
Threat
Counterfeitproductsdestro#ingits,randimageinthemarket.
Increasingpriceofra%material
Competitioninthemarket%
Consumerretentionisa,igchallenge%ithInternational ,randscomingintothemarket.
S'" Analysis
Se-entation
Segment Pros Cons
Demographic Age
• Age group of 25+ are more
health conscious.
Income
• Medium to high income
groups are willing to spend
money on healthier
alternatives.
Education
With a rising educated middleclass, the market acceptance
Age
• It is still not the first choice
of school children and
college students.
Income
• Maority population is
!elow middle class level
and do not !uy !iscuits as
snacks.
Education
•
"ifficult to market such product in low literacy
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of such products increases. populations
Psychographic
Lifestyle• #he product is tailor made for
the achiever segment of the
population.
Social Class
• #he maority consumer !ase
varies from middle class to
upper class.
Lifestyle• #he survivors might never
find it useful or valua!le
and they constitute a huge
part of the population.
Social Class
• $ower middle class and
working class view health
snacks as a lu%ury.
Behavioral Occasions
• &ealth !iscuit can !e made
into a ha!it for the customers
as a mid meal snacks.
Benefits
• #he '() of the product is its
perception as a health
su!stitute in terms of richness
in fi!re at an afforda!le cost.
Loyalty status
• As a first mover into the
industry accompanied with a
huge !rand name, consumerstend to !e loyal to the !rand.
Occasions
It does not suit the taste
!uds of Indian customers
immediately and would take
time to make it a regular
ha!it.
Benefits• It is perceived as a high cost
product.
Loyalty status
• Many !ig !rands are
entering this segment
!ecause of the huge
potential.
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"ar-etin-+
!eo-raphic
$ity+ ?ur target of the health product %ill ,e tier 1 and tier 6 cities@ due to greatermarket si0e and ur,an life st#le of the population.
,eo-raphic
A-e+ The primar# age group that is must ,e targeted is from 6( to (( #ears. This age
group segment constitutes more than !5F of the population. This age group is more
health conscious and %ould inest in healthier su,stitutes oer snacks.
%ncoe+ The middle and higher income group is targeted o%ing to their aorda,ilit# of
the product. Nutrichoice has come out %ith a product SNutriChoice eaens7 for the
higher income group making it the premium product. ?n the other hand SNutriChoice
'igestie7 is aimed at the middle income group.
9ducation+ -ince the health ,iscuit is making people a%are of its ,ene8ts@ it is highl#
popular among educated mass and %ith the gro%ing literac#@ the product can target a
greater olume.
Psycho-raphic
2i#estyle+ $ll the health ,iscuits under NutriChoiceis targeting $chieers and -triers.
The $chieers are those people %ho hae %orked their %a# to success. The -triers on
the other hand are people %ho hae a strong %ill po%er and %elcome challenges. The
health products like NutriChoice appeals to them more than common snacks.
Social $lass+ The upper class and upper middle class hae a high amount of spendingha,its in ,u#ing health oriented products hence the health ,iscuits %ill ,e ideal to ,e
targeted on them.
Beha(ioral
'ccasions+
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2oyalty Status+ -ince NutriChoice is one of the 8rst products to ,e launched under
ealth snack@ %e are aiming to hold customers ,ased on the earl# moers and ,rand
name of Britannia.
Suary+
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Product 2i#e $ycle
Product 2i#e $ycle
Sta-e
Sales
The health ,iscuit industr# is a gro%ing industr#@ %here the consumers hae startedgiing preference to health oriented products. The market si0e comprises onl# of the
upper and upper middle class.
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"he PriceNutrichoice chooses dierent price mies for each of its products ranging from IN& 15 to
IN& (5 per 2(gms. $ high ariation in si0e is also proided so as to match a particular
price point@ gien the 8ckle nature of the Indian JMCG Customer
The pricing of each product ariant is unilaterall# determined ,# the a,solute price point
,ecause that determines aorda,ilit# for a large section of consumers. In the recent#ears@ there has ,een a spike in the prices of ra% ingredients coupled %ith a sharp
decline during the same period. Britannia chooses to pass on %hateer ,ene8t the# get
%ith this pricing to the customer. But gien that the demand and su,stituta,ilit# of a
product in the JMCG sector has to largel# remain free of an# ariation@ the compan#
chooses to pass on this ,ene8t ,# increasing the Kuantit# oered at that price point.
,istribution and PlaceBritannia follo%s intensie distri,ution strateg#@ as ,iscuits need to reach the consumers
at their nearest locations. This t#pe of distri,ution helps consumer look for location
conenience.
Britannia follo%s the JMCG channel of distri,ution. The factor# products are 8rst shelledout to the CJ$s ;Carr#ing Jor%arding= agents. These are then sorted and passed on to
the distri,utors across India and then allocated to retailers@ %hich include minor local
kirana stores. The compan# handles the distri,ution to modern trade channels like the
Big Ba0aar@ &eliance Jresh itself. The other channel of sales or distri,ution is also the
institutional channel)trade like otels@ $irlines@ and I&CTC.
The compan# is focusing to improe on its distri,ution footprint to reach a %ider
consumer ,ase. It is inesting heail# on infrastructure to reach out more outlets.
Currentl# the reach of Britannia is 3./ million outlets@ %hich is higher than arle ;3.3
million=. It plans to take manufacturing to consumption centers especiall# in %eak
regions like north and %est.
?n an allEIndia@ the ur,anErural split of ,usiness is /5:!5.There is room for improement
as far as rural penetration goes.
13 a g e
Conenience
stores 'istri,uti CJ$ JactorCustom
>irana $llocatio -orting
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:5.4
:.(:
15.(6
D sale o# biscuits by distribution #orat E6015F-mall grocer#
stores
other grocer#
retailers
#permarkets)-up
ermarkets
$part from the normal conenience and retails stores@ Britannia is planning to procure
shelf spaces in pharmacies in consistenc# of their products functionalit# to proide health
,ene8ts.
ProotionBritannia NutriChoice has positioned itself as a tast# and health# ,iscuit@ aaila,le at an
aorda,le price and as a result oers ,etter alue for mone#. ?er time@ it %as
perceied as highl# instrumental in representing the gro%ing trend of Indians adopting
the health# lifest#le. Britannia cone#ed this message and consolidated the ,rand of
Nutrichoice through adertising and man# other social media actiities including
,ill,oards@ maga0ines@ teleision ads and point of sales adertising. o%eer@ %ith
Britannia ,eing consolidated in the market@ it follo%s a pull strateg# rather than a push
strateg#.
%ndia.s rst health social net)orkin- site nutrichoice i:ealth+Britannia pioneered India7s 8rst social net%orking site %ith its primar# focus on health.
The %e,site connects thousands of health enthusiasts across India and takes them on a
"ourne# to good healthD. The %e,site also features ,logs and actiities a,out diet control
and nutritional recipes@ ,esides proiding adice on leading a health#@ stressEfree and
dia,etesEfree lifeD. Besides@ it has also partnered %ith man# agencies in conducting
eents %hich hae promoted health# lifest#le.
")o sided essa-e in ad(ertisin- capai-n
Britannia NutriChoice has come up %ith a t%oEsided argument in its ne% adertisement
%here it is positioned mid%a# ,et%een the health ,ene8ts of a salad and the taste of a
chocolateEcoered doughnut. The adertisement then ends %ith a honest conersation%here Britannia sa#s
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ecoendations+
%ncrease !lobal Presence
Britannia Industries as of toda# has er# limited glo,al presence. Though@ It is in "ointenture %ith ,iscuit manufacturing companies in the Middle ast ;-audi $ra,ia and?man=@ it has no presence in the %estern countries.
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e#erences
http:))%%%.mone#control.com)ne%s)cn,cEt1Ecomments)pepsiE,ritanniaEeatEintoEsnackE
marketEtargetEhealthEfans//211.html
http:))pitchonnet.com),log)651!)56)11)constantEinnoationEhelpsE,ritanniasEnutrichoiceE
remainEreleant)
http:))marketingpractice.,logspot.in)651!)51),ritanniaEnutrichoiceEtast#Ehealth.html
http:))%%%.afaKs.com)ne%s)stor#)3251McitiesE'igestieE
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http:))%%%.,usinessEstandard.com)article)management)theE,iscuitE,attlesE
11!165554/11.html
Nutrichoice eaens: http:))food.ndt.com)reie%s),attleEofE,iscuitsEtheE,estEdigestiesE
inEindiaE22642/
Jour 7s ;&eference=: http:))%%%.marketing41.com)marketingEmiE,ritannia)
http:))%%%.indiainfoline.com)article)ne%sE,usiness),ritanniaElaunchesEnutrichoiceE
dia,eticEfriendl#EessentialsE113151/53351.html
http:))%%%.,iscuitfederation.com)induspro8le.htm
17 a g e
http://www.business-standard.com/article/management/the-biscuit-battles-114120800961_1.htmlhttp://www.business-standard.com/article/management/the-biscuit-battles-114120800961_1.htmlhttp://food.ndtv.com/reviews/battle-of-biscuits-the-best-digestives-in-india-772976http://food.ndtv.com/reviews/battle-of-biscuits-the-best-digestives-in-india-772976http://www.marketing91.com/marketing-mix-britannia/http://www.indiainfoline.com/article/news-business/britannia-launches-nutrichoice-diabetic-friendly-essentials-113101603308_1.htmlhttp://www.indiainfoline.com/article/news-business/britannia-launches-nutrichoice-diabetic-friendly-essentials-113101603308_1.htmlhttp://www.biscuitfederation.com/indus_profile.htmhttp://www.business-standard.com/article/management/the-biscuit-battles-114120800961_1.htmlhttp://www.business-standard.com/article/management/the-biscuit-battles-114120800961_1.htmlhttp://food.ndtv.com/reviews/battle-of-biscuits-the-best-digestives-in-india-772976http://food.ndtv.com/reviews/battle-of-biscuits-the-best-digestives-in-india-772976http://www.marketing91.com/marketing-mix-britannia/http://www.indiainfoline.com/article/news-business/britannia-launches-nutrichoice-diabetic-friendly-essentials-113101603308_1.htmlhttp://www.indiainfoline.com/article/news-business/britannia-launches-nutrichoice-diabetic-friendly-essentials-113101603308_1.htmlhttp://www.biscuitfederation.com/indus_profile.htm
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$ppendi
Appendi
Suary o# esponses
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B$! AnalysisBritannia ,iscuits market
share U 3(F
Gr
1Se-ent Specications Products elati(e arket
Share aon-st
:i
sh
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copetitors $
-tar igh M-@ igh
Gro%th
ealth Biscuits E Nutrichoice (( M
*uestion
Mark
Lo% M-@ igh
Gro%th
Cream Biscuits E ure
Magic)Bour,on
65 -u
Cash Co% igh M-@ Lo%gro%th
Cookie) Marie E Good'a#)Marie
35 a
'og Lo% M-@ Lo% gro%th Glucose E Tiger Biscuits 11./ a
1 a g e