Corporate and business level strategy of Britannia

Corporate strategy
" Our markets are poised for exciting times. As a successful organisation, we must not only keep pace with consumer expectation, but also anticipate them. Our new identity is to lay the base to project our future as a successful 'food' company, a company that provides high quality andtasty, yet healthy foods and beveragesThe Group Management Board comprises the Vice Chairman & Managing Director, Presidentsof the Business Sectors as well as heads of certain key corporate functions.In 2010, Britannia,one of the Indias largest biscuit brands held a market share of 38% in terms of value. Indian biscuit industry, the third largest producer of the biscuits in the world was highly under- penetrated. This presented numerous growth opportunities to new as well as existing players.Apart from the presence of big players like ITC Foods and Parle, the local manufacturers of biscuits and other Indian snacks had been raising concerns for Britannia. Besides competition,Britannia faced critical challenges due to declining margins in the biscuit industry due to theincreasing costs of raw materials. Its profit had been on a decline since 2005. Though Britanniahad forayed into dairy and bakery products, 90% of its revenues still came from its core business in biscuits category which was largely driven by product innovation. The case,highlighting the Britannias growth strategies, provides scope to analyse opportunities andchallenges for Britannia in the Indian biscuit industry. Pedagogical Objectives:  Product portfolio management, brand extension and market segmentation of Britannia  Analysing product innovation strategies of Britannia as its competitive advantage  Organic and inorganic growth strategies of Britannia to face the challenges in the Indian biscuit industry.

Business Strategy
1.It relates to the functional areas such as production,marketing,finance,personnel etc.Britannia has been investing significantly in higher and better quality of human resources both at the front end and at the back end. It has sharply segmented its go-to-market stratergy and unlike an earlier focus on simply increasing the number of outlets it covered. 2.Britinnia now has separate teams for general sales, modern trade, institutions, and semi-urban and rural markets. It is building strong capabilities in each of these segments.

3. Britinnia has been working with an international consulting agency for building capabilities shopper understanding as opposed to consumer understanding. 4. In 2008, Britinnia divided its product portfolio into two distinct categories: "health and wellness" and "delight and lifestyle." Products such as Tiger glucose and NutriChoice biscuits fall under the former category, while Good Day and Treat fall under the latter. Each category is headed by a senior executive responsible for outlining distinct growth strategies. 5. Other initiatives include introducing personal consumption packs to attract youth and people on the move, adding transit points such as bus stops and small roadside shops to its distribution network, and addressing workers in the business process outsourcing industry as a potential new market. 6. Britinnia has doubled its ad spending in the last three years. It is also working to increase trade marketing visibility and, for the first time ever, has signed on with a trade marketing agency. According to one of director of Britannia company Mr.Mehta, Britannia plans to increase advertising and marketing spending to 10% to 12% of sales over the next few years from a current 7%. 7. On the infrastructure front, Britannia has added 200,000 tons of annual capacity, an increase of about 60%. It has also devised a long-term distributed manufacturing stratergy, put in place a continuous replenishment supply efficiency system, and strengthened its supply chain management significantly.