Professional Documents
Culture Documents
Zindagi Mein Life. That may be a hard-to-digest tag line, but that’s precisely what
Britannia has been attempting to follow. The mantra of India’s leading bakery products
firm is to continuously infuse more zindagi into its lifeline – the seven pillar brands, each
of which does more than Rs 200 crore business.
The vigour in the company’s operations seems to have increased after two important
events in the past couple of months — first, the Wadias bought out French foods major
Groupe Danone’s stake in the company; and second, Britannia ended its joint venture
with New Zealand-based Fonterra for the dairy business.
Britannia biscuits market in India has the seven pillar brands — Tiger, Good Day, Marie,
Treat, 50:50, Milk Bikis and Nutrichoice — have already become household names
across the country.The only thing it is seeking to do now is to keep pace with India’s fast
evolving consumption patterns and needs. In keeping with the underlying theme that the
company produces good food that is fun to eat, the company is offering products
spanning across segments — right from a basic glucose biscuit to a wholesome wheat
grain to a richer creamy chocolate biscuit.
At the heart of the branding strategy is the belief that biscuits can also fulfill various other
consumption needs to remain with the consumer throughout the day. Within biscuits also,
classically people have looked at this market as glucose, cream, non-cream etc. But
Britannia thinks otherwise. For example, five years ago, the market was largely glucose.
While that still remains a large segment, the market has also evolved into more affluent
forms of consumption. This perhaps is the specific insight that has made Britannia morph
its glucose-only brand ‘Tiger’ into a much larger brand by offering variety. The company
has been in the glucose market since the past decade and has managed to garner around
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17 per cent share in this high volume segment, lagging behind Parle’s share of around 65
per cent.
The company is also constantly expanding its list of brands with a sharp focus. Example:
Three years ago, broadly two to three brands were active — Goodday, Tiger and to an
extent Marie. But the base has now been enlarged to seven powerful brands.That explains
why the company is not only expanding its biscuits range with variations, it is also
parallelly widening its presence in the bread, rusks and cakes market too.
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1.2 Profile of the Organization
Britannia Industry Ltd. is one of the oldest company the company crossed more then 100
years not only completed more then century but also achieve huge reputation and brand
name. A solid brand, market leadership, an enviable history, a strong parent, constant
new product launches, a vast distribution reach, superior marketing capabilities and
healthy financials. Over the last couple of years, the company has refurbished its wide
product portfolio and has focussed on value-added products instead of low-margin
products. BIL derives revenues from four key product divisions, namely, biscuits, bread,
cake and rusk, and dairy products. Britannia Intustry Ltd. Known name company a
leading brand of biscuits started business in 1892 in a nondescript house in Kolkata with
an initial investment of Rs. 295. Britannia name was getting name and fame day by day
due to good quality and value. By 1910, with the advent of electricity, Britannia
mechanised its operations, and in 1921, it became the first company east of the Suez
Canal to use imported gas ovens. Britannia's business was flourishing. During World War
II, the Government reposed its trust in Britannia by contracting it to supply large
quantities of "service biscuits" to the armed forces. It was good opportunity for Britannia.
Britannia strode into the 21st Century as one of India's biggest brands and the
pre-eminent food brand of the country. It was equally recognised for its innovative
approach to products and marketing: the Lagaan Match was voted India's most
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successful promotional activity of the year 2001 while the delicious Britannia 50-50
Maska-Chaska became India's most successful product launch. In 2002, Britannia's New
Business Division formed a joint venture with Fonterra, the world's second largest Dairy
Company, and Britannia New Zealand Foods Pvt. Ltd. was born. In recognition of its
vision and accelerating graph, Forbes Global rated Britannia 'One amongst the Top
200 Small Companies of the World', and The Economic Times pegged Britannia
India’s 2nd most trusted brand.
The company's offerings are spread across the spectrum with products ranging
from the healthy and economical Tiger biscuits to the more lifestyle-oriented Milkman
Cheese. Having succeeded in garnering the trust of almost one-third of India's one billion
population and a strong management means Britannia will continue to dream big on its
path of innovation and quality. This rich biscuit enjoys a fan following of consumers
across all ages, loyal to the brand promise of a great taste evident from the visibly
abundant ingredients. Good Day is amongst the fastest growing brands in Britannia's
portfolio and is today the market leader with almost 2/3 share of the market
Marketing involves finding out what your customers want and then meeting their
requirements. To satisfy its customers, a business must create a successful mix of:
For the year ended 31st March 2008, the Company achieved a sales growth of 17.5% on
an expanded base arising from 27.5% growth in the previous year. Net Profit of the
Company increased 77.5 % to Rs 1,910 Mn compared with Rs 1,076 Mn in 2006-07.
Operating Margin increased by 307 basis points to 7.5%.
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The Company witnessed all round growth in key categories with Biscuits recording sales
of Rs. 23,299 Mn. Bread, Cake and Rusk business crossed the Rs. 2,700 Mn mark during
2007-08. This business has doubled in two year.
The Company introduced several new and renovated offerings in Tiger, Good Day, Treat
and MarieGold. The health and nutrition platform was buttressed by Tiger Banana with
³iron-zor², fortified Milk Bikis, renovated MarieGold and Nutrichoice Digestive. To tap
the more indulgent consumers, your Company launched Good Day Classic Cookies,
while continuing to roll out individual consumption packs at the highly affordable Rs. 5
price point.
The Bread, Cake and Rusk portfolio was strengthened with the successful relaunch of
Breads, fortified with vitamins and minerals, positioning them firmly as the healthy start
to your day. This innovation combined with relevant consumer activation in key markets
has seen a 30%+ growth in the Bread, Cake and Rusk business.
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the issued and paid up capital of Britannia amounts to 23, 890,163 equity shares having a
nominal value of Rs 10 each. The shareholder base is about 25,300 in number.
The Britannia brand is all about eating healthy for leading a better life
• Largest company in the Indian Food processing industry whose
product range also includes Breads and Cakes.
Britannia Biscuits
Tiger, launched in 1997, became the largest brand in Britannia's portfolio in the very first
year of its launch and continues to be so till today. Tiger has grown from strength to
strength and the re-invigoration in June 2005 and more recently, in Apr 2008 has further
helped bolster its growth in the highly competitive glucose biscuit category.
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2.
Britannia Good Day was launched in 1986 in two delectable avatars - Good Day Cashew
and Butter. Over the years, new variants were introduced - Good Day Pista Badam in
1989, Good Day Chocochips in 2000 and Good Day Choconut in 2004.
3.
India's first and favorite Bourbon's sweet adventure began in 1955. Since then, Bourbon
lovers across the country have been caught opening this chocolate couplet, licking the
cream, and nibbling at the melt-in-your-mouth biscuit, bit by bit. Some have been
witnessed chomping it whole, at one go. Some have been noted to alternate it with sips of
coffee; others team it with lots of gossip and gupshup, while a few have been observed
enjoying it with a book.
4.
With a brand name like 50-50, can the product be anything but fun? Launched in 1993,
50-50 belongs to the family of crackers and is considered the "very very tasty tasty"
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snack. Britannia 50-50 is the leader in its category with more than one-third of market
share. The versatile and youthful brand constantly aims to provide a novel and exciting
taste experience to the consumer. As a result, in 2001, the delicious Maska Chaska was
launched as a variant of the original brand and became an instant success.
5.
Britannia's oldest brand enjoys a heritage that spans the last 50 years - and going strong.
In a market swamped with me-too products and where even the name 'Marie' has become
generic, Britannia Marie Gold has maintained its stronghold. Today, the ever-popular
Marie Gold is synonymous with the 'Tea Time Biscuit'. Its taste, crispiness and lightness
make it a must for every tea break. It is the #1 brand in its category by a long shot.
6.
As a move to consolidate all the individual Cream Treat offerings under a single
umbrella, Britannia launched Treat in 2002. Treat has a range of tasty delights for all kids
with yummy creamy treasures within the biscuit shells. The kids have always relished
unraveling the irresistibly delicious creams hidden inside the biscuit Britannia Treat
offers a wide variety of flavors, such as the Elaichi, the Fruit Flavored Creams such as
Orange, Pineapple, Mango, and Strawberry, the Jam Filled Centers under the Jim Jam
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range, and the Duet Range (biscuits with two flavours of cream between three layers of
biscuit) comprising Strawberry Vanilla and Duet Strawberry Chocolate.
7.
n 1996, Milk Bikis launched a variant called Milk Cream. These round biscuits come
with smiley faces and are full of milk cream that makes them very popular with children.
Milk Cream also promoted the idea of 'eating milk' in a yummy way, which makes
mothers happy as well.
8.
In continuation of the promise of "Swasth Khao, Tan Man Jagao," Britannia introduced
NutriChoice range of healthy biscuits in 1998. The brand is targeted towards overall
health and wellness for adults. The range has for long comprised of three popular
variants, namely NutriChoice Thin Arrowroot, NutriChoice Cream Cracker and
NutriChoice Digestive.
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9.
Then in late 2000, supported by aggressive advertising that featured the brand as a perfect
partner for timepass moments, Britannia Timepass was launched.
10.
Little Hearts was launched in 1993 and targeted the growing youth segment. A
completely unique product, it was the first time biscuits were retailed in pouch packs like
potato wafers. The launch message introduced a special taste experience that made the
unlikeliest characters - like Dracula and Frankenstein - melt. In 1997, the 'Direct Dil Se'
campaign encouraged youngsters to openly express their feelings. And in 2003, two
variants called Little Hearts Chocolate and Little Hearts Sesame were rolled out with a
campaign "Dil sabka actually sweet hai". With Little Hearts, Britannia has tasted the
sweet taste of success.
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11.
Britannia Nice Time was the pioneer of sugar sprinkled biscuits in India. This unique
product managed to create such a strong consumer pull that soon there was a rush of
pretender products in the market, clearly indicative of the success of the concept. Today,
Nice Time has a fan base spread across India, and, particularly, East India, where its
consumers have grown up with the brand. Especially popular amongst children, Britannia
Nice Time has managed to create a loyal franchise for itself and is a strong brand loved
by people of all ages.
12.
Till 1958, there were no breads in the organised sector and bread consumption was a
habit typified by the British. Then, a mechanised bread unit was set up in Delhi with the
name "Delbis" which produced sliced bread and packed it under the Britannia name.
Thus, Britannia was not only the pioneer, but also inculcated in the people of Delhi the
habit of eating white sliced bread.
Britannia Dairy Products: : It took a new step into the dairy industry in 1997 with two
products - Processed Cheese and Dairy Whitener. Dairy products are outsourced from
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Dynamix Dairy Industries, a manufacturer based in Baramati, Maharashtra. . The cheese
market is estimated to be worth around Rs 125 crore and is expected to grow at about
20%. In fact, BIL could itself take the credit of putting the cheese market in such a
healthy growth trajectory. For increasing and promoting sales BIL started to provide
Refrigerator for it’s Dairy products. In 2002, Britannia's New Business Division namely
'Britannia Milkman' formed a joint venture with Fonterra, the world's second largest
Dairy Company, which gave birth to Britannia New Zealand Foods Pvt. Ltd.
13.
Britannia offers the largest range of cheese in India. Made at hi-tech facilities under high-
quality conditions, and from cow's milk, Britannia Milkman Cheese range is a very tasty
and healthy food for the family.The entire range of Britannia Milkman Cheese is
available in various forms, pack sizes and flavors, which provide a variety of easy, quick,
tasty, healthy recipes for family, guests and kids' tiffins.
14.
Britannia Milkman Butter is known for its rich yellow butter color, great taste, and
excellent spread-ability, even after refrigeration!Made by churning fresh cow's milk,
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Britannia butter can be used as a spread on your breads, or as a dollop on your paranthas,
or in baking, sauce making and frying.
15.
Britannia Milkman Ghee is trusted for its purity and taste all over India.Britannia is the
only national brand in ghee, and it offers 4 different variants in ghee, depending on the
taste, texture and color preferences of our consumers. Ghee made from cow's milk gives
you the goodness of Vitamin A, E and cancer fighting anti-oxidants like CLA
(Conjugated Linoleic Acid).
16.
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18. Milk: Britannia is reentering in this segment and launched it’s UHT milk on 28 th
June. UHT (Ultra High Temperature) milk in regular and 'Slimz' format,
which is a zero fat and zero cholesterol milk in Mumbai, Delhi and Bangalore markets for
starters. UHT Technology helps preserve and retain all the goodness of milk and has a
shelf life of 120 days.
19. Nutro: Britannia Industry ltd. has expanded its UAE operations by taking a 70
percent stake in Strategic Foods International Co. Ltd. (SFIC), one of the GCC's largest
biscuit and wafer manufacturing firms. The investment is part of the organisation's
campaign to capture the lion's share of the UAE's biscuit market, worth an estimated
AED500 million a year. The biscuit and wafer giant's growth stategy, which generates
annual revenues in excess of AED2.57 billion, is being underpinned by the re-launch of
its Nutro label after an investment of AED4 million. Research commissioned by BIL
revealed that Nutro products, especially Nutro Family Choice Wafers and Nutro Glucose
products, are among the brand's most favoured among shoppers.
2. PLACE: Britannia basically targeting high and upper medial class customers for
cheese so place where Britannia cheese is available is urban cites where people know use
of cheese and use cheese on daily bases.
Though figures vary widely from product to product, roughly a fifth of the production
cost of an item goes on getting it to the customer. The term 'place' deals with various
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methods of transporting and storing goods and then making them available to the
customer.
Getting the right product to the right place at the right time involves the distribution
system. Distribution is the process of moving goods and services to the places where they
are wanted.
3. Price: Pricing is one of the most important elements of the marketing mix, as it is the
only mix, which generates a turnover for the organisation. The remaining 3p’s are the
variable cost for the organisation. It costs to produce and design a product; it costs to
distribute a product and costs to promote it. Price must support these elements of the
mix. Pricing a product too high or too low could mean a loss of sales for the organisation.
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Pricing should take into account the factors like fixed and variable costs, competition,
company objectives, proposed positioning strategies, target group and willingness to pay.
The pricing strategies are based much on what objectives the company has set itself to
achieve and Britannia has adopted a number of pricing strategies:
Competition pricing: They have set a price which is competitive when compared with
competitors.
Product Line Pricing: Priced different products within the same product range at different
price points. The better the feature and the benefit given the greater the consumer will
pay. This form of price discrimination assists the company in maximising turnover and
profits.
Bundle Pricing: The organisation bundles a group of products at a reduced price when
providing family packs.
Value Pricing: They have also used value based pricing.
Price of cheese is continuously increasing due to fluctuating rate of row material. And
second factor behind increment of Britannia cheese price is that they are continuously
improving quality of product new products in different flavors are introduce by them
continuously in the market.
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Product Name MRP Retailers’ MRP Retailers’
Margin Margin
BUTTER
100 g.m 20 9.5% 20 9%
500 g.m 97 97 Price
MotherDairy
Mother Dairy markets approximately 2.8 million liters of milk daily in the markets of
Delhi, Mumbai, Saurashtra and Hyderabad. Mother Dairy Milk has a market share of
66% in the branded sector in Delhi where it sells 2.3 million liters of milk daily and
undertakes its marketing operations through around 14,000 retail outlets and 845
exclusive outlets of Mother Dairy.
The company’s derives significant competitive advantage from its unique distribution
network of bulk vending booths, retail outlets and mobile units. Mother Dairy ice creams
launched in the year 1995 have shown continuous growth over the years and today boasts
of approximately 62% market share in Delhi and NCR. Mother Dairy also manufactures
and markets a wide range of dairy products that include Butter, Dahi, Ghee, Cheese, UHT
Milk, Lassi & Flavored Milk and most of these products are available across the country.
Amul
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Amul (Anand Milk Union Limited), formed in 1946, is a dairy cooperative movement in
India.
The Amul Pattern has established itself as a uniquely appropriate model for rural
development. Amul has spurred the White Revolution of India, which has made India the
largest producer of milk and milk products in the world. It is also the world's biggest
vegetarian cheese brand
Amul is the largest food brand in India and world's Largest Pouched Milk Brand with an
annual turnover of US $1050 million (2006-07) . Currently Amul has 2.8 million
producer members with milk collection average of 10.16 million litres per day. Besides
India, Amul has entered overseas markets such as Mauritius, UAE, USA, Bangladesh,
Australia, China, Singapore, Hong Kong and a few South African countries.
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Cadbury
In India, Cadbury began its operations in 1948 by importing chocolates. After 60 years of
existence, it today has five company-owned manufacturing facilities at Thane, Induri
(Pune) and Malanpur (Gwalior), Bangalore and Baddi (Himachal Pradesh) and 4 sales
offices (New Delhi, Mumbai, Kolkota and Chennai). The corporate office is in Mumbai.
Our core purpose "creating brands people love" captures the spirit of what we are trying
to achieve as a business. We collaborate and work as teams to convert products into
brands. Simply put, we spread happiness!
Currently Cadbury India operates in four categories viz. Chocolate Confectionery, Milk
Food Drinks, Candy and Gum category. In the Chocolate Confectionery business,
Cadbury has maintained its undisputed leadership over the years. Some of the key brands
are Cadbury Dairy Milk, 5 Star, Perk, Éclairs and Celebrations. Cadbury enjoys a value
market share of over 70% - the highest Cadbury brand share in the world! Our flagship
brand Cadbury Dairy Milk is considered the "gold standard" for chocolates in India. The
pure taste of CDM defines the chocolate taste for the Indian consumer.
In the Milk Food drinks segment our main product is Bournvita - the leading Malted
Food Drink (MFD) in the country. Similarly in the medicated candy category Halls is the
undisputed leader. We recently entered the gums category with the launch of our
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worldwide dominant bubble gum brand Bubbaloo. Bubbaloo is sold in 25 countries
worldwide.
Since 1965 Cadbury has also pioneered the development of cocoa cultivation in India.
For over two decades, we have worked with the Kerala Agriculture University to
undertake cocoa research and released clones, hybrids that improve the cocoa yield. Our
Cocoa team visits farmers and advises them on the cultivation aspects from planting to
harvesting. We also conduct farmers meetings & seminars to educate them on Cocoa
cultivation aspects. Our efforts have increased cocoa productivity and touched the lives
of thousands of farmers. Hardly surprising then that the Cocoa tree is called the Cadbury
tree!
Today, we are poised in our leap towards quantum growth. We are a part of the Cadbury
PLC, world's leading Confectionery Company.
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1.4 Competition Information
Price: Pricing is one of the most important elements of the marketing mix, as it is the
only mix, which generates a turnover for the organisation. The remaining 3p’s are the
variable cost for the organisation. It costs to produce and design a product; it costs to
distribute a product and costs to promote it. Price must support these elements of the
mix. Pricing a product too high or too low could mean a loss of sales for the organisation.
Pricing should take into account the factors like fixed and variable costs, competition,
company objectives, proposed positioning strategies, target group and willingness to pay.
The pricing strategies are based much on what objectives the company has set itself to
achieve and Britannia has adopted a number of pricing strategies:
Competition pricing: They have set a price which is competitive when compared with
competitors.
Product Line Pricing: Priced different products within the same product range at different
price points. The better the feature and the benefit given the greater the consumer will
pay. This form of price discrimination assists the company in maximising turnover and
profits.
Bundle Pricing: The organisation bundles a group of products at a reduced price when
providing family packs.
Value Pricing: They have also used value based pricing.
Price of cheese is continuously increasing due to fluctuating rate of row material. And
second factor behind increment of Britannia cheese price is that they are continuously
improving quality of product new products in different flavors are introduce by them
continuously in the market.
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1.5 SWOT Analyses of Britannia Industry Ltd.:
Strength: Weakness:
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Opportunity: Threat:
2.1 Significance
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• To understand the route of marketing and selling
• To learn the behavior of consumers and retailers
• To study the offerings of the competitors of Britannia in the Market
• To understand the problems of distributors
• To enhance self observation power
• To determine the Key areas of Strengths & Weaknesses of Britannia
• To check the awareness level of the customers about Cheese
• To check the effect of shelf size on consumers
• To understand retailers need and wants and how to seal product in the
market and how to convince retailer of putting the product on the eye
caching point
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2.2 Managerial Usefulness of the Study
Research design constitutes the blue print for the collection, measurement, and analysis
of data. It aids the researcher in the allocation of limited resources by posing crucial
choices in methodology.
In order to fulfill the objectives of the study primary as well as secondary data have been
collected to analyze the trends in the Cheese Industry.
The Logic behind selecting the area of Delhi for primary data collection can be justified
by the argument that due to high migration rate from different states of the country to the
Delhi makes it almost representative of the entire country.
The Research Designs used for this Research are Descriptive and Exploratory
Research Design.
Second Phase of Research consist for clear instructions and planned focused path
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Pre-Planned research design for analysis
Advances instructions about instrument of data collection
Multi-Stage random sampling is used for sample design
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2.3 Objective
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2.4 Scope of the Study
The research was conducted through Multi-Stage random sampling in Delhi.
Information Needed
The information needed can be classified into the following heads:-
Primary
Information about retail size of all cheese brands in Delhi. So target for research were
retail shops of varies area of Delhi
Secondary
Detail study about the cheese Product and Britannia Indestry, other study and researches
related to Indian and other cheese industry.
Sources of secondary data
The secondary data was collected from research journals, Company websites and visit to
competitors and collecting informative booklets.
Scaling Techniques
Two kinds of scaling techniques were used in the questionnaire:
Ranking Scale
Consumers make relative judgment against other similar objects (Comparative Scales).
They were presented with several factors influencing decision making while buying a
cheese.
Dealers were presented with several factors influencing customer decision making of
purchasing chasse.
Likert Scaling
Respondents were presented with there name and presence of shelf size in percentage.
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Questionnaire Design and pre testing
Keeping in mind the information required for achieving the objectives of the research,
questionnaire was developed and Pre tested on a small sample of 50 respondents chosen
on a convenience basis .The questionnaire was a blend of following type of questions:-
Retailer name
Address of retail outlet
Total Shelf Size
Presence of all cheese brands in shelf of the shop
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2.5 Methdology
Survey – before starting the research, an in-depth study of the topic was conducted so as
to draw a clear image of what and how the research has to be carried out.
Formulating the Research Problem – the next step was to find out the problem of the
case. The most important task was to define the problem clearly from an analytical point
of view. This is the most important step because; if a problem is well defined then it
means that it is half solved.
Determining the Sample Size – furthermore the next step was to choose the number of
Shops to be targeted from various area of Delhi, and various classes of shop. So a total of
224 shops were approached for the survey
Collection and Analysis of Data – the data was collected from various class of shops
among different area of Delhi and the data was segregated into various parameters in
order to analyze it.
Interpretation of Data and Preparation of Report – the findings was identified and
recommendations were made and the final report was prepared.
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Strategy
Main strategy of Britannia is to improve visibility in terms of good shelf size at the shop.
There emphasis a lot on visibility of Britannia Dairy products.
Cheese Industry is growing at a fast pace in Indian market. Demand of cheese varies from
market to market and consumers to consumer. Like in posh areas demand and shelf size
of Britannia and other cheese brands is good but in areas where middle class people’s
ratio is high, the demand and shelf size of Amul and local cheese is good.
The objective of the project is to find out retail share of Britannia cheese, for that I visited
shops and through observation and interviewing of shop-keeper I tried to find out retail
share. Some sales officers helped me to find retailer outlets in different part of Delhi.
The data has been collected through various sources; Primary research has been done to
collect data. A Survey was carried out with the sample size of 224 in various classes of
retail outlets in vaious parts of Delhi. The main objective of project was to find out retail
share of Britannia cheese.
The Research Design is descriptive and exploratory and sampling technique used is
Random Sampling. Certain recommendations and conclusions have been derived that can
help Britannia to know retail share of its cheese products and to improve its retail share.
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LITERATURE REVIEW
India is one of the fastest growing markets for cheese with annual growth pegged at 20%
with a total consumption of about 7,000 tons a year according to Agri-Commodity
Federation. With one of the largest consumer bases in the world, cheese could be a multi-
million dollar industry in India. Nowhere else do people consume cheese in so many
different forms and use cheese in so many varieties of food preparation as in India.
When we think of buying a Cheese, than generally tow names Amul and Britannia comes
in over mind. there are certain parameter which effect consumer preference in Cheese ,
such as:
i. Test:
ii. Packaging:
iii. Flavor: Advertisement:
iv. Retailer Suggestion:
v. Shelf Size:
vi. Price:
vii. Brand Name:
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Major Players in Cheese Industry
As of now, the major players (in India) in the Cheese category are:
Britannia
Amul
Lebon
Mother Dairy
Kraft
Laughing Cow
Frico
President
Prestige
Frico
Arla,
Lurpark
Dairy Craft,
Floric,
Chodhery
Growth Drivers : India is one of the fastest growing markets for cheese with annual
growth pegged at 20% with a total consumption of about 7,000 tons a year according to
an official of the Indian Agri-Commodity Federation. With one of the largest consumer
bases in the world, cheese could be a multi-million dollar industry in India. Nowhere else
do people consume cheese in so many different forms and use cheese in so many
varieties of food preparation as in India. In 2007, Britannia, one of the India’s 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
34
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
the increasing costs of raw materials. Its profit had been on a decline since 2005. Though
Britannia had 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 Britannia’s growth strategies, provides scope to analyse
opportunities and challenges for Britannia in the Indian biscuit industry.
Pedagogical Objectives:
Britannia 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 Mehta, Britannia plans to increase advertising and
marketing spending to 10% to 12% of sales over the next few years from a current 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 strategy,
put in place a continuous replenishment supply efficiency system, and strengthened its
supply chain management significantly. According to Rajesh Lal, vice president and
chief technology officer: "The stocks at our distributors are now replenished within 24
hours, and in the past three years we have increased the availability of our [stock-keeping
units] from 60% to 90% across the country." Lal adds that cost reductions over the last
three years have saved the company $30 million. Bali is looking to leverage all these new
pieces for maximum competitive advantage. Sources inside Britannia say revenue targets
are $1.25 billion by 2010 and $3 billion by 2015. While Bali won't commit to any
numbers, her hunger clearly is to be the best. "There is a huge opportunity out there in the
market and it is up for grabs," she says. "What we make of it depends on our ability to
35
commercialize the opportunity. We want to be among the three fastest-growing FMCG
companies in the country and to grow profitably."During the last few years, the Indian
cheese market has grown steadily at 15 to 20 per cent per annum according to a market
survey of dairy products in India. The Australian cheese processor, Kraft, has made an
inroad into the Indian market followed by Remia of Holland. Initially, the imported
brands of cheese were introduced into Delhi, Mumbai, Kolkata and Chennai and were
patronized by expatriates. But, now some Indians too have started taking a fancy for these
brands.
classic (plain),
pepper,
Masala herbs,
Peppy Cilantro,
Onion,
36
Minty Coriander and have also
37
for household gadgets. All these opportunities can be determined ones the consumer
behavior is studied.
Product: The marketer designs the product or services that would satisfy unfulfilled
needs and wants. Further decision regarding product concerns to size, shape and features.
The marketer has also to decide about packaging, important aspects of service, warranties
and accessories etc.
Price: The second important component of marketing mix is price. Marketers must
decide what price should be charge for the product or the services. These decisions will
influence the flow of revenue to the company. Should the marketer charge the same,
higher or lower price in comparison to competition? Is the consumer price sensitive and
would a lower price stimulate sales? Should there be any price discounts? Do consumers
perceive lower price as being indicative of poor quality?
To answer these questions, the marketer must understand the way the company's product
is perceived by the consumers. It is only through consumer behavior study in actual
buying situations that the marketer can hope to find answers to these important issues.
38
Distribution: The next decision relates to the distribution channel, that is, where and
how to offer products and services for sale. Should the products be sold through all retail
outlets or through selected outlets or should company be involved in direct channeling for
the products? Is the location of the dealers important from the consumers' point of view?
Should the company think of direct marketing?
39
This hidden Information is considered to be the black box. In an attempt to obtain some
understanding, marketers study consumer behavior. Many researchers describe consumer
behavior as the study of individuals or groups and the mental, emotional and physical
processes they use to select, obtain, consume and dispose of products or services, to
satisfy needs and wants, and the impact that these processes have on the consumer and
society.
There are numerous models trying to explain consumer behavior. These models generally
deal with various stimuli, influential factors, the decision-making process and outcomes.
Some models are very basic and categories all variables such as the one proposed by
Philip Kotler, which is illustrated in figure above.
40
DATA ANALYSIS
Class A B C
No. of Shops 24 53 12
Percentage 27% 60% 13%
CLASS
C
A
13%
27%
B
60%
A B C
41
Out of 89 shops retail share of all brands are as followes:
42
Retail Share in Percentage
Lebon Others
1% 6%
M.D.
1%
Britannia
Amul
M.D.
Britannia
52% Lebon
Amul Others
40%
WEST DELHI:
43
Out of 84 Shope of west Delhi number of different classes of shopes are as follow:
Class A B C
No. of Shops 16 .64 4
Percentage 19% 77% 4%
CLASS
C
A
4%
19%
B
77%
A B C
44
Brand Britannia Amul Mother Lebon Other
Name Dairy
Quabites 106 86 0 2 6
Presentage 53% 43% 0% 1% 3%
Lebon Others
1% 3%
M.D.
0%
Britannia
Amul
M.D.
Lebon
Amul
43% Britannia Others
53%
Interpretation
This graph shows that britania 53% in south delhi has been leading from all other brands.
CENTRAL DELHI
45
Out of 35 shop of center Delhi number of different class of shops are:
Class A B C
No. of Shops 3 13 19
Percentage 9% 36% 55%
CLASS
A
9%
C B
55% 36%
A B C
Interpretation
This graph shows that britania 55% in central delhi has been leading from all other
brands.
46
Brand Britannia Amul Mother Lebon Other
Name Dairy
Quabites 47 45 0 0 8
Presentage 47% 45% 0% 0% 8%
Lebon Other
0% 8%
M.D.
0%
Britannia
Amul
M.D.
Britannia Lebon
47% Other
Amul
45%
NORTH DELHI:
47
Class A B C
No. of Shops 2 13 1
Percentage 13% 81% 6%
CLASS
C A
6% 13%
B
81%
A B C
Interpretation
This graph shows that britania 81% in north delhi has been leading from all other brands.
48
Shalf size was not ideal so I am taking it out of 50 Quabites
Others
12%
Lebon
2%
M.D.
0% Britannia
Amul
Britannia
M.D.
39%
Lebon
Others
Amul
47%
Interpretation
This graph shows that in retail shares of britania 39% in overall delhi and 47% of amul
giving tough competition .
OVERALL DELHI:
Out of 224 shop of overall Delhi number of different class of shops are:
Class A B C
No. of Shops 45 145 34
49
Percentage 20% 65% 15%
CLASS
C A
15% 20%
B
65%
A B C
Interpretation
This graph shows that retail shares of britania 65% in overall delhi has been leading from
all other brands.
50
Out of 224 shopes retail share of different brands of cheese:
Total shelf size is 550 quabite
Others
Lebon 6%
1%
M.D.
0%
Britannia
Amul
M.D.
Britannia Lebon
51%
Others
Amul
42%
Interpretation
This graph shows that retail shares of britania 51% in overall delhi has been leading from
all other brands.
FINDINGS:
51
Britannia is not able to satisfy Consumer who are using other good Brands: Kraft
and President tow international brands have made good position in high class and
upper middle class societies like Chadakaya puri and Vasanth Kung. The flavors
of Britannia Cheese is just according to Indian consumers whereas demand in
Indian foreign consumers for consuming high quality foreign flavor cheese in
quite high.
Demand and consumer behavior defer in every market according to there status
and company follow different strategy for every market and products availability
is also different like in west Delhi we find local brands too and in south Delhi
important brands are dominating.
Till now people in urban cities are not aware of the right use of cheese, even
people who consume cheese from Dairies are not aware of Britannia Cheese.
Outlets of Amul and Mother Dairy are increasing day by day but most of
consumers purchase only milk from these outlets.
Consumers are very much brand conscious now a days so Britannia name is good
opportunity for it’s dairy products but they just need to create some awareness
using banners and hoardings as many people are still not aware of Britannia dairy
products like cheese.
There are no Advertisements of Britannia Cheese in the market, not even in form
of Pamphlets and banners or hoardings. Due to which Cheese consumer don’t get
information about any new offers, like free knife coming with spread, Britannia
biscuits free with cheese products. But general trade products are in the invisible
place and consumers don’t get information about promotional strategy.
52
Choudhery is major compotator of Britannia due to its good quality and lower
price, in B2B it is acquiring Britannia Clients. The Park Hotel who was good
client of Britannia was it acquired by Choudhery Cheese. Even Bakeries also use
Choudhery Cheese for making fast food for there store. Even end consumers also
like this brands. Its shelf size is less but sales is very high.
Wholesalers who are selling Britannia cheese in large quantity want some extra
incentives for there extra sales.
In South Delhi Sales of Britannia is more than it’s shelf size but in other parts of
Delhi sales of Britannia Cheese is less than it’s Shelf size, in South Delhi sales
can be increased by providing extra incentive to wholesalers and retailers for extra
sales.
Amul is major competitor of Britannia in small parts of Delhi and other cities as
there distribution network and advertisement strategies are batter then Britannia.
Like in small retail shop of south Delhi where sales is less Britannia distributor
don’t like to go, Jamrat pur is one of the example, even small shops of other part
of Delhi also.
53
STRATEGY:
Besides focusing on competitive pricing, BIL has adopted three pronged strategy of
1. Freshness (Lower pipeline stock) : The fist purpose of Britannia is to fast
supply of products so that consumer fresh and can enjoy fresh test of it’s dairy
products. For that their supply pipeline is very short, Britannia cheese comes from
Baramati to Delhi to distributor hands and distributor supply it in to market.
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Recommendations:
• Extra Incentives for Extra sales: Retailer and wholesalers should get extra
incentives or margin for extra sales. It will motivate retailer and wholesaler for
selling Britannia cheese only. Like Selling of 24 packs of Britannia cheese slice 2
pacts of slice free or selling price in 2-3% is more. On the basis of monthly sales,
gift or extra benefit should be provided. Retailers who are contributing good sales
to Britannia every month dinner should be arranged for them in that area etc.
Distributors network in good areas is very week in C class shops and in small
areas of Delhi although demand of ghee is good is these areas. So distribution
network need to improve in smaller areas.
Britannia should come up with more flavors of cheese which can be substitute of
imported brands of cheese.
Promotional offers should come time to time for end users with proper
advertisement. For high quantity users of cheese some combined packs should be
launched so that consumers can get benefit in price.
In south Delhi sales of Britannia cheese is higher then other parts of Delhi but it
can increase by regular supply in small parts and shops.
55
LEARNINGS
56
ANNEXURES
57
QUESTIONNAIRE
Name:
Area/Location:
Address:
Contact No.:
58
7. On what occasions do you buys Britannia Product?
(a) Festivals (b) Birthdays
(c) Gift (d) Mood
10. How do you feel regarding price of different brands of Britannia Cheese?
(a) Britannia - High/Low
(b) Nestle -High/Low
(c) Amul -High/Low
(d) Others -High/Low
11. How easily do you get different brand of Britannia Cheese
(a) Easily (b) Not easily
(c) Rarely
13. If the price of another brand ae reduced would you shift your brand?
(a) Yes (b) No
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15. Do you have any suggestions regarding the product?
(a) Yes (b) No
(c) Not certain
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BIBLIOGRAPHY
61
BIBLIOGRAPHY
INTERNET
62