U113071 Geetha Brittania

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    STM ASSIGNMENT

    Submitted to: prof.

    Anshuman Tripathy

    Submitted by: P.Geetha

    Gowthami

    Section-B

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    U113!1

    Tab"e of contents

    1.Britannia business model

    An International Organization

    Industry Domestic Organisation

    2. Activity Mapping for Britannia Activity Mapping for low cost provider !nited Biscuits

    ". #ision And Mission

    $. %estel Analysis

    %orter&s Analysis of Biscuit Industry

    'ompetitor

    (. )istory* +volution* ,rowt- ate* / 0uture of t-e Industry ize of t-e industry

    ey success factors

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    1. Britannia Industries

    Parent Company Britannia Industries

    Category 0ood %roducts

    Sector 0ood and Beverages

    Tagline/ Slogan Zindagi mein life

    USP

    India&s very own ba3ery and dairy products brand t-at is

    trusted for its 4uality

    STP

    Segment %eople w-o need and consume ba3ery and dairy products

    Target Group Middle and upper middle class families* especially 3ids

    Positioning

    India&s leading manufacturer of premium 4uality and -ealt-y

    biscuits* ba3ery and dairy products

    Product Portfolio

    Brands 1.Britannia 5050

    !.Britannia Bour"on

    #.Britannia C$eese

    %.Britannia Good &ay

    5.Britannia 'ittle (earts

    ).Brittania *arie Gold

    http://www.mbaskool.com/brandguide/food-and-beverages/418-britannia-50-50.htmlhttp://www.mbaskool.com/brandguide/food-and-beverages/426-britannia-bourbon.htmlhttp://www.mbaskool.com/brandguide/food-and-beverages/417-britannia-cheese.htmlhttp://www.mbaskool.com/brandguide/food-and-beverages/419-britannia-good-day.htmlhttp://www.mbaskool.com/brandguide/food-and-beverages/415-britannia-little-hearts.htmlhttp://www.mbaskool.com/brandguide/food-and-beverages/425-britannia-marie-gold.htmlhttp://www.mbaskool.com/brandguide/food-and-beverages/426-britannia-bourbon.htmlhttp://www.mbaskool.com/brandguide/food-and-beverages/417-britannia-cheese.htmlhttp://www.mbaskool.com/brandguide/food-and-beverages/419-britannia-good-day.htmlhttp://www.mbaskool.com/brandguide/food-and-beverages/415-britannia-little-hearts.htmlhttp://www.mbaskool.com/brandguide/food-and-beverages/425-britannia-marie-gold.htmlhttp://www.mbaskool.com/brandguide/food-and-beverages/418-britannia-50-50.html
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    +.Britannia Tiger

    S,-T nalysis

    Strengt$

    1.Around 125 years in t-e industry2.India&s most trusted brand wit- strong brand recall

    ". 6ide range of ba3ery products li3e biscuits* rus3s* ca3es

    and dairy products li3e mil3* butter* c-eese* etc.

    $. trong distribution networ3 ensuring proper availability of

    t-e products even in t-e remotest of areas

    (.Ma7or s-are in biscuits industry

    8.Mar3eting and advertising efficiency

    9. Innovative products for -ealt- conscious people li3e oats

    and porridge* :utri '-oice biscuits for diabetes patients* #ita

    Marie ,old* etc.

    ;. trong presence in rural mar3ets

    penditure on advertising and mar3eting

    ".imilar products produced by many companies means -ig-brand switc-ing

    -pportunity

    1.Increase in purc-asing power of people in India

    2.Increase its s-are in t-e dairy industry

    ".%roduct line e>tension

    $.+>pansion in ot-er countries

    T$reats

    1.=ower price offering competitors

    2.=ocal dairies and ba3eries

    ".Inflation can cause fall in sales and revenue

    $.ise in cost of raw materials

    http://www.mbaskool.com/brandguide/food-and-beverages/416-britannia-tiger.htmlhttp://www.mbaskool.com/brandguide/food-and-beverages/416-britannia-tiger.html
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    ?-e company -as a strong portfolio of top selling food brands. Britannia produces and distributes

    premium brands suc- as (5(5* ,ood Day* =ittle )earts* Mil3 Bi3is* Marie,old* Mas3a '-as3a*

    :utri'-oice* %ure Magic* ?reat* and ?iger. +ac- of t-e company&s si> pillar brands @,ood Day*

    ?iger* (5(5* ?reat* Mil3 Bi3is* and Marie ,old generate sales in e>cess of I:1 billion.

    0urt-er* t-e company is entering new product lines li3e snac3ing and -ealt- products and t-us

    capturing a larger mar3et s-are. In 2559* most of t-e company&s brands secured double digit

    growt- rate. Additionally* Britannia was ran3ed second among 0M', companies in t-e

    Business 6orld&s Most espected 'ompany urvey 2558&. 6it- a wide portfolio of brands and

    c-oice of product category* t-e company is able to differentiate itself in t-e mar3et* nurture

    customer loyalty* and reduce its business ris3. As a dairy product company* Britannia en7oys

    strong brand e4uity* and its e>tensive portfolio of global brands -as -elped it to e>pand its

    mar3et presence and visibility. A strong brand portfolio not only facilitates customer recall but

    also en-ances Britannia&s mar3et penetration opportunities.

    ?-e company -as a strong orientation towards product innovation. In 2559* t-e company

    demonstrated its ability to innovate and e>tend its brands and products. Britannia launc-ed manyinnovative products in 2559. ?-roug- an innovative product lineup* t-e company plans to

    strengt-en and s-arpen its brands and transform t-em from e>isting formats and conventional

    arc-etypes. In t-is conte>t* t-e company launc-ed cream and coconut varieties in its ?iger brand

    range. 0urt-er* t-e '-ota ?iger&* w-ic- is an e>tension of ?iger brand* draws on t-e 3ids

    snac3ing -abit presenting biscuits as small* popCable* snac3s& in a pouc- pac3. imilarly* t-e

    company also launc-ed added 0ruit ollz under its ?reat brand. 0urt-er* t-e company launc-ed

    (5(5 '-ut3ule& and :utri'-oice Digestive and ugarOut&. :utri'-oice ugarOut is t-e first

    biscuit wit-out added sugar* in t-e Indian mar3et. trong product innovation s3ills enable t-e

    company to stay a-ead of t-e competition and create an edge in t-e mar3et.

    Britannia is aggressively pursuing inorganic growt- model. In Marc- 2559* Britannia concluded

    two ac4uisitions* including its first ever overseas partners-ip. In Marc- 2559* Britannia formed a

    7oint venture wit- t-e -im7i amdas ,roup* one of t-e largest business conglomerates in t-e

    Middle +ast. Britannia and its associates ac4uired 95 beneficial sta3e in DubaiCbased trategic

    0oods International ==' and OmanCbased Al allan 0ood Industries 'o AO,. ?-e two

    companies are ma7or regional players in t-e biscuits and coo3ies segments in t-e ,ulf

    'orporation 'ouncil @,'' mar3ets. Bot- t-e companies e>port to more t-an $5 countries

    across t-e globe including Africa* Australia and Eapan* t-ereby giving Britannia access to many

    new mar3ets. ?-ese two ac4uisitions are e>pected to allow Britannia&s portfolio to e>tend to

    t-ose countries in w-ic- t-ey -ave a presence. ?-e 7oint venture could provide Britannia an

    opportunity to grow its international footprint by leveraging on t-e complementary strengt-s of

    t-e two partners.

    o

    n International -rganiation

    raft Company -2er2ie34

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    raft 0oods Inc is t-e largest 0ood and Beverages 'ompany in t-e !nited tates. ?-e company

    operates in around 95 countries across t-e world wit- around well -ouse* :abisco* Oscar Mayer* %ost* Oreo and =!.

    ?-e company focuses on providing foods t-at fit t-e consumers by concentrating on

    -ealt- and wellness* snac3ing* 4uic3 meals and premium products. ?-e raft products are sold

    t-roug- various distribution c-annels li3e distribution centers* satellite ware-ouses* companyC

    operated and public coldCstorage facilities* depots* and ot-er facilities.

    Porters 6ational &iamond for raft4

    ?-e 0our basic forces according to t-e Mic-ael %orter&s :ational Diamond model are*

    Factor Conditioning:?-e recent tec-nological advancement in t-e !nited tates plays a ma7or

    role in production of agricultural products* also t-ere are -uge s3illed labors available to operate

    in modern e4uipments and t-e capital re4uired for e>cess production is easily available.

    Intensity of the rivalry:?-e !nited tates 0ood Industry is -ig-ly competitive* t-ere are many

    big players li3e t-e !nilever* 0ritoC=ay* 'argill* ?yson 0oods* 'onAgra 0oods and mit-field

    0oods etc.

    Local demand condition:?-e urban population of !nited tates is -ig- and its always

    increasing w-ic- is potential mar3et for food industry* also t-e partners-ip wit- firms li3e

    afeway tore provides additional demand for products of raft 0oods.

    7alue c$ain

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    Supply c$ain

    ?-e top management and t-e supply c-ain team of t-e raft 0oods -as developed a strategy

    w-ic- t-ey believed would -elp t-em is ac-ieving competitive advantage. ?-e strategy focuseson involving t-e customers as part of t-eir team in creating value. According to t-eir strategy* t-e

    c-anges re4uired in t-e supply c-ain process can be implemented in steps wit- t-e -elp of

    innovations and collaboration wit- t-e customers.

    A Domestic Organization wit- a similar Business Model

    %arle %roducts company was founded in 1

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    ?-e original %arle company was split into t-ree separate companies* owned by t-e different

    factions of t-e original '-au-an family

    %arle %roducts* led by #i7ay* -arad and a7 '-au-an @owner of t-e brands %arleC,*

    Melody* Mango Bite* %oppins* ismi toffee bar* Monaco and rac3Eac3

    %arle Agro* led by %ra3as- '-au-an and -is daug-ters c-auna* Alis-a and :adia @owner

    of t-e brands suc- as 0rooti and Appy

    %arle Bisleri* led by ames- '-au-an

    S3ot nalysis

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    !.cti2ity *apping for Britannia

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    cti2ity *apping for lo3 cost pro2ider 4 United Biscuits

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    #. 7ision nd *ission

    sian company4Britannia

    Britannia&s vision for t-e future t-roug- its new mission statement is +very t-ird Indian s-ouldbe a Britannia consumer by t-e year 255". ?-ey want to be among t-e fastestCgrowing 0M',

    and to dominate t-e companies in t-e country and to grow profitably.6e want to be part of our

    consumer F at -ome* out of -ome *a natural part of -is lifeG.

    82aluation

    #oes it inc"ude$%#oes it mention &a"ues

    "i'e$%

    (ustomersProducts)

    Ser&ices*ar'ets (iti+enship Teamwor'

    Yes ye Yes yes No

    Techno"o,y(oncern for

    sur&i&a"Phi"osophy ce""ence /nte,rity

    No No No No No

    Se"f-concept

    (oncern for

    pub"ic ima,e mp"oyees

    No No No

    (ustomer or product-oriented%

    Customer-oriented

    US company4 raft 9oods

    )ere at raft 0oods we strive to produce superior products and services @2 to our customers @1

    ranging from w-olesalers to -ouse-olds. ?-e 21st century is sure to bring more innovation* new

    products* and new food tec-nology @$* t-us enabling us to create and deliver better and -ealt-ier

    products. raft 0oods continues to lead t-e food industry as t-e largest food supplier in :ort-

    America @9 wit- plans to continue e>pansion into new and e>isting global mar3ets @". 6e

    support t-e goals of t-e company by applying t-e -ig-est et-ical conduct wit-in our corporate

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    p-ilosop-y in all our business transactions @8* treatment of employees @pected return to

    s-are-olders @(. Our company ta3es pride in ma3ing today and t-e futureCdelicious.

    8urope company4 T$e :eal Good food company

    ?-e common t-eme across all t-e businesses is a transformation from being a manufacturing ledto a mar3et led business* understanding t-e mar3ets in w-ic- we operate and meeting customer

    re4uirements wit- 4uality products and e>cellent service.

    frican company4 :$odes food group

    Rhodes Food Group is a fast growing internationa!!y re"ognised food produ"tion andpro"essing "ompany that has #een pro$iding !o"a! and internationa! mar%ets withfresh &ua!ity produ"ts and premium #rands at "ompetiti$e pri"ing for o$er a "enturynow'

    6-ere we are goingH?o be t-e preferred supplier of 4uality food products.H

    %urpose-odes 0ood ,roup e>ists to offer 4ualitymeal solutionsfor t-e contemporary lifestyle.

    %. Porters nalysis of Biscuit Industry

    T$reat of 6e3 8ntrants ; *edium

    )ard for a new entrant due to -ig- product differentiation / a strong networ3

    Depends on t-e agricultural sector for w-eat =ow growt- rate of 1"

    #A? of 12.( and an e>cise duty of ;

    +>tremely price sensitive industry

    http://www.rhodesfoodgroup.com/http://www.rhodesfoodgroup.com/http://www.rhodesfoodgroup.com/
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    :i2alry among e

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    Danone and alaba3an Investments in India. As we 3now* t-ey deal in Biscuits* us3* Diary

    products* Bread and 'a3es.

    ?-e company* in 2559 formed a Eoint #enture wit- -im7i amdas ,roup to e>pand and sellbiscuits to t-e Middle +ast countries* as it&s t-e most respected business and t-e 3ey district

    players in selling biscuits. It now provides a large range of commodities under t-e brand :utro&*w-ic- is t-e primary brand name in Middle +ast.

    Pestel nalysis

    Political 9actors4

    ?-e 0ood regulations were put into practice at t-e tate / 'entral level.

    evere ?AJ rules -ad been started.

    everal ot-er ,overnment egulations were put into action.

    8conomic 9actors4

    ?-e ,ross Domestic %roducts started rising at ;C

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    8n2ironmental factors

    Agriculture based industry

    %opulation in country

    'egal factors

    ales ta> lowered to $

    Competitor

    'ompetitors C %arle ,lucose also 3nown as %arleC, @, for ,enius is manufactured in India by

    t-e %arle %roducts w-ic- is one of t-e oldest brand names and t-e biggest selling biscuits in

    India.

    Mar3et -are C %arleC, -as a mar3et s-are of 95 in t-e biscuit industry in India followed byBritannia* ?iger wit- 19C1;* and unfeast of ;Cpanding to areas suc- as 6estern +urope* !A* !* !A+ and 'anada.

    ?arget Mar3et C %arle -as a target mar3et w-ic- is focused in India* consisting of people of allcategory groups suc- as c-ildren* teenagers* family members and even old aged people as it is a

    popular biscuit eaten during ?eaCtime snac3.

    5.Indian Biscuit Industry

    (istory= 82olution= Gro3t$ :ate= > 9uture of t$e Industry

    ?-e origin of word biscuit is from =atin w-ic- means coo3ed twice. Indian biscuit industry

    came into limelig-t in later part of 25t-century w-en t-e urbanised society called for ready made

    food products at reasonable cost.

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    In Indian biscuit industry even t-e small companies are able to ma3e profits. Industry -as

    continuous growt- and will not be -indered due e>ternal factors. It -as flouris-ed enormously

    over years and will grow p-enomenally.

    Brittania is one of the major organized players in India.

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    Its market share stands at 27 billions. Its market share in medium and premium segment

    are significantly higher.

    Sie of t$e industry

    1. ?-oug- India is considered as t-e t-ird largest producer of Biscuits after !A and '-ina*t-e per capita consumption of biscuits in our country is only 2.1 g.* compared to more

    t-an 15 3g in t-e !A* ! and 6est +uropean countries and above $.2( 3g in sout- cast

    Asian countries* =e. ingapore* )ong ong* ?-ailand* Indonesia etc. '-ina -as a per

    capita consumption of 1.

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    ey success factors

    ey success factors for any organization operating wit-in t-e Industry

    India&s lower and middle class segment

    Distribution in ural mar3ets

    Advertising products effectively striving for innovation

    :ew variants being added into e>isting brands wit- stylis- products.

    0ocus on urban mar3ets.

    easonable %ricing

    Brittania has a very good distribution netork hich helps it to reach out to the rural masses.Itcaters to the needs of all segments at reasonable prices.It advertises its producys effectively and

    continuously strives to bring in ne products to its portfolio.