BISCUIT INDUSTRY IN INDIA

BRITANNIA VS PARLE

INDEX

Consumer industry in India An overview. Biscuit industry in India- Overview. BRITANNIA company overview makeover product life cycle SWOT analysis PARLE company overview brand ambassadors product life cycle SWOT analysis BRITANNIA Vs PARLE Corporate social responsibility ,IPRs

Industry Analysis

The consumer food industry mainly consists of readyto-eat products or ready-to-cook products such as pasta products, bakery products, biscuits, soft drinks, etc. Automatic approval for FDI upto 51% has been introduced. Bakery industry in India is probably the largest among the processed food industries, the production of which has been steadily increasing in the country. The two major bakery industries, viz., bread and biscuits account for almost 82% of the total bakery products.

Biscuit Industry in India An Overview

Biscuit industry in India in the organized sector produces around 60% of the total production, the balance 40% being contributed by the unorganized bakeries. The major Brands of biscuits are- Britannia, Parle Bakeman, Priya Gold, Elite, Cremica, Dukes, Anupam and Horlicks. Though dereservation resulted in a few MNCs, i.e. Sara Lee, Kellogs, Smith Kline Beecham, Heinz etc entering the biscuit industry in India.

Basis Of Segmentation
Broadly there are three ways to segment the market followed by the biscuit industry:

Based on age group.

Based on purchasing power of the consumers

The lifestyle approach.

Based on the production in India biscuits can be broadly classified into:-

Industry Research

Objective: To study eating habits with regards to consumption of biscuits amongst people. The composition of choices of food of people for breakfast and snacks shows that only 16% prefer biscuits.

Industry Research

Of the people who consume biscuits 25% people prefer cream biscuits, 12% prefer wafer biscuits, 34% prefer sweet plain biscuits and 29% of people prefer namkeen or salty biscuits.

Industry Research

The number of people who eat biscuits include 37% of people who eat them everyday, 29% eat twice a week, 14% eat four times a week, 8% eat once in 15 days, 6% eat once in 10 days and once in a month.

Britannia: Company Overview

1892 - Britannia established with an investment of Rs. 295 in Kolkata 2007- Britannia ranked No.1 in the Metros across all categories. The Origin of Eat Healthy Think Better Britannia saw the writing on the wall. Its "Swasth Khao Tan Man Jagao" (Eat Healthy, Think Better) re-position directly addressed this new trend by promising the new generation a healthy and nutritious alternative - that was also delightful and tasty.

Makeover of Britannia
From being a manufacturer of baked products, BIL kicked off a diversification exercise to become a comprehensive foods and beverages company making cheese and other dairy products. BIL hired a Paris based design studio- Shining Strategic design, to craft a new logo and corporate slogan. Its work involved understanding the perceived and potential value of the brand where everything from colors and symbols to the typeface, was evaluated. Research showed that the brand 'Britannia' was synonymous with trust and quality, and the wide portfolio of products was seen as a source of strength .

Current market position of Britannia biscuits

Nutri Choice
I N T R O D U C T I O N

Treat Pure Magic

Good Day Tiger

Little Hearts Marie Nice

ales

G R O W T H

M A T U R I T Y

D E C L I N E

Time

SWOT ANALYSIS
STRENGTHS BIL has strong brands like Tiger, Marie gold and Good day. It also has well penetrated distribution network. BIL is holding leadership position in six out of seven sub-categories of biscuits. WEAKNESS BIL is unable to improve its margin since last few quarters due to increasing input costs. BIL is also facing problem of high turnover of its Key Managerial Personnel (KMP).

OPPURTUNITIES BIL has immense opportunities to increase its export turnover, which at presents is very meager. BIL can leverage its pillar brands in full swing. It may enter in to other food products or health beverages and to become total foods company.

THREATS Threats of regional and local players are more. Other competitors like ITC and Surya Agro are playing very aggressive role in this era beside the threat of inflation in prices of agriculture based commodities are always attached with it.

Parle: Company Overview

In 1929 a small company by the name of Parle products emerged in British dominated India. Parle G, retains, almost half the market share for biscuits in India. The Glucose brand that enjoyed a monopoly in the market for decades. The brand recently achieved the distinction of being the highest selling Glucose biscuit in the world.

Parle G, enjoys a 69% share in the glucose biscuit market, selling 2.7 million tones a year.

Brands Ambassadors

With Comics Chandamama, The 60-year-old magazine printed by the company sells 375,000 comic books in 13 languages was used by Parle to advertise its products. With Celebrities The agency figured that they wanted to feature real people as brand ambassadors of Parle-G. And Parle-Gs five driving propositions (taste, nutrition, meal substitution, mental development/alertness, and affordability/value-for-money) by making them integral to the campaign thought.

Hritik Roshan, Aamir khan and Darsheel safary endorsed hide n seek biscuit which raised the market share considerably.

Current market position of Parle biscuits

K r e a m s
I N T R O D U C T I O N

Hide & Seek

Krackjack

Parle g Monaco

Sales

G R O W T H

M A T U R I T Y

D E C L I N E

Time

SWOT ANALYSIS
STRENGTHS Parle has strong brands like Monaco, Parle g and Krackjack. It also has well penetrated distribution network. It has very good distribution channels in rural areas also. It is the most well known brand. WEAKNESS There are less number of brands under its umbrella than Britannia. Its portfolio does not include breads and cakes.

OPPURTUNITIES The Glucose brand that enjoyed a monopoly in the market for decades surpassed the expectations of its makers, in popularity. It may look for markets aboard.

THREATS Britannia is eyeing the Glucose brand and aims to overtake Parley's within three years' time. The entry of big players in the field could mean more competition for old hands in the game. A big threat to legitimate biscuit makers comes from duplicates. the duplicates market.

Britannia Vs Parle
(Corporate Social Responsibility)

Britannia Industries, Naandi Foundation and Global Alliance for Improved Nutrition have come together to provide specially developed Britannia Tiger Iron Fortified Biscuits for 1.5 million children in Hyderabad as part of the AP Governments mid-day meal programme.

Every year, Parle organizes Saraswati Vandana in the state of West Bengal during the festival of Saraswati Puja, inviting schools from all across the state to participate. These events gives a chance to interact with children on a one-to-one basis, and promote the belief of fun and health for the whole family.

Intellectual Property Rights (IPR)

Britannia Industries Ltd has developed several brands and created recipes in respect of its products. The TIGER Brand which was developed by the Company has become one of the most successful brands in the country, with significant potential outside the country too.

Parle Products Ltd has been using the trademark GLUCO on its biscuits popularly known as Parle-G biscuits. The Parle-G is given more prominence on the packet than the GLUCO. Parle Products filed a suit in Madras High Court against Bakemans Industries for the use of the word GLUCO in their trademark for the biscuits as they had registered this mark long ago.

MARKET SHARE

CONCLUSION

Britannia and Parle, both are leaders in their respective segments. Parle should enhance its product mix and focus on lifestyle products. Britannia should develop economy range biscuits to capture the low income groups.

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