Download - Biscuit industry analysis and applied family brand strategies

7/31/2019 Biscuit industry analysis and applied family brand strategies

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Vision, Mission & Strategy of

Biscuit & Cookies

Industry

Presentation by

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

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What is it?

Vision

Its the sight of a traindriver, i.e.

How far a train drivercan see?

can be interpreted as thevision of a company.

Mission

Its the

engine of a train

to drive the bogies indesired direction.

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What is it?

Vision Mission

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In short Vision, Mission &

Strategies? Make a choice in life

Take responsibility for your own destiny

Execute your own ideas

define yourVISION

have a MISSION

follow your STRATEGY

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Change in Mission of Wal-Mart

Vision

"We save people moneyso they can live better.

Mission

Wal-Mart:

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

"Become a $125 billioncompany by the year

2000."

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Vision, Mission & Strategies of

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BISCUIT INDUSTRY

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

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

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

Per capitaconsumption

India -2kg/person/yr

Rural- GlucoseUrban-Cracker,cookies,Cream

sandwitch

USA -15kg/person/yr

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BISCUIT INDUSTRYLargest Global Biscuit producers

1. USA

2. China

3.

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

Penetration Rate:

1. Urban -85%

2. Rural -55%

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

(Britannia @ 22% CAGR)8


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PRODUCTION OF BISCUITS IN

INDIA (Category wise)Milk12%

Others8%

CREAM10%

CRACKERS13%

Glucose44%

Marie13%

Parle G, 66%

Tiger, 22%

20-20Sunfeast,

12%

Glucose Biscuit (44% of total biscuits)Market Share

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Poters 5F Model

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Rivalry amongcompeting firms

Bargaining powerof buyers

Bargaining powerof suppliers

Threat of Newentrants

Threat ofsubstitute products

P t 5F M d l f I di


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Poters 5F Model for IndianBiscuit Industry

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Britannia, Parle,ITC

Premium productsare increasing in

market

Inflation in sugar& wheat prices

Oreo, PepsiCo

Bakery Items, Fastfoods, Ready-to-

eat

Not favorableAttract outsidersFreezing effectWelcome effect


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Industry consists of

Major player

Parle

Britannia

ITC

Emmerging Players

Krafts Cadbury Oreo PepsiCo

Minor player Surya Biscuits Pvt. Ltd.

PriyaGold

Anmol

cremica

Foreign Niche Players

United biscuits Duke

Unibic

Nubisco

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Britannia Industries Ltd.

Britannia (Great Britain) Est. in 1885

Its a `4410Crs Industry

CEO: Vinita Bali

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

II.

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

HQ: Kolkatta, Reg. Office: Bangalore

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

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


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Britannia NutriChoice Ad

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Now, let us look at thepromotional activities forNutriChoice Positioning


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

It started with the strategic plan to save

its core cigarette industry using paralleladvertising.

17Source: ITC Food Division site & internet


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Sunfeast biscuits, ITC Food Div.

Vision

To deliver highestproduct quality and

value to consumers

Mission

To be one of the leadingbiscuits manufacture in

Indian biscuit market

Source: ITC Food Division site & internet 18

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

Capture emerging opportunities Further enhance current brand equit

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

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

Strategy


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

Largest biscuit & confectionary manufacturer of India

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

19Source: www.parleproducts.com


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Parle

Vision

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

Mission

Source: www.parleproducts.com 20

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

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

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

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

2005-Promote its products, Golu Galata

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

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

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

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

Strategy


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

It manufactures and supplies

biscuits,

cakes, cookies,

pastries, and

shortbreads to supermarkets in

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

Incorporated in Indian in 2004

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


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Unibic India Ltd

Vision

To delight the consumerwith unique premiumproducts at reasonable

prices

Mission

1. Manufacture & Market ofproducts in major marketsand organised trade

2. Strategic alliance

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

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

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

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

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

New Product under development ischyawanprashbiscuits just for change

Strategy


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Kraft foods (Cadbury Oreo)

Vision

"Helping People Around theWorld Eat and Live Better."

Mission Innovation Satisfying real-life

needs with unique ideas

Quality Fulfilling a promise todeliver the best

Safety Ensuring high standards ineverything we make

Respect Caring for people,communities and the environment

Integrity Doing the right thing

Openness Listening to the ideas of

others and encouraging an opendialogue

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Oreo was promoted by Oreo Thoroughness Bus, Bus Hoodings,It is still in the market research stage.

It has suied major player Britannia (Treat-O design) in Copy rights, tocapture Indian biscuit market.

Strategy


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Variety

Nutrition

Availability

Filling

Packag

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Popularitywithk

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Ranking

Value Offerings

Strategic Comparisons-1

Parle Britannia Sunfeast

Comparision-2


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Comparision-2

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Type Pricing strategy Promotionalstrategy

Distributionstrategy

Britannia Digestivefor lifestyle

High margin in cream,

volume from Marie &glucose

10% of its turnover onmarketing, as its isgrowing @22% CAGRevery year

Excellentdistributionchannel alsothrough army

Parle Glucose,Choco chips

High value, lowmargin

Best of Brandambassadors, mass

campaigns, followedCadbury way

Extremelywidespread

distribution

Sunfeast

PremiumVariety

High margin in cream,volume from Marie &glucose

Largest spender on ads &promotion i.e. 35-40% ofits turnover on marketing

Existing marketof tobacco

Oreo Creamsandwichsegment

Not cheap forconsumers, but good

quality.

10% of its turnover onmarketing especiallymarket research.

Small scaledistributers

Unibic Cookies,Butter,

Healthybiscuits

Reasonable, Not significant Major metros andmalls, export,

CCD


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Thank you!!!

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Disclaimer

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remains the property of the patent holders

If there is any legal notifications to be

made, it is at Thirthahalli court.

Contact information:

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