Amul butter v/s Britannia (Product Strategy) 0Title : FOOD INDUSTRY The food industry is the complex, global collective

of diverse businesses that together supply much of the food energy consumed by the world population. Only subsistence farmers, those who survive on what they grow, can be considered outside of the scope of the modern food industry. The food industry includes: Regulation: local, regional, national and international rules and

regulations for food production and sale, including food quality and food safety, and industry lobbying activities Education: academic, vocational, consultancy Research and development: food technology Financial services: insurance, credit Manufacturing: agrichemicals, seed, farm machinery and supplies, agricultural construction, etc. Agriculture: raising of crops and livestock, seafood Food processing: preparation of fresh products for market, manufacture of prepared food products Marketing: promotion of generic products (e.g. milk board), new products, public opinion, through advertising, packaging, public relations, etc Wholesale and distribution: warehousing, transportation, logistics

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Amul butter v/s Britannia (Product Strategy) Retail: supermarket chains and independent food stores, direct-toconsumer, restaurant, food services ADVANTAGE OF INDIA UNDER FOOD INDUSTRY: India is one of the largest food producers in the world India has diverse agro-climatic conditions and has a large and diverse raw material base suitable for food processing companies 7 Investment requirement of around US$ 15 billion exists in the food processing sector India is looking for investment in infrastructure, packaging and marketing India has huge scientific and research talent pool A largely untapped domestic market of 1000 million consumers 300 million upper and middle class consume processed food 200 million more consumers expected to shift to processed food by 2010 Well developed infrastructure and distribution network Rapid urbanization, increased literacy, changing life style, increased number of women in workforce, rising per capita income- leading to rapid growth and new opportunities in food and beverages sector 50 per cent of household expenditure by Indians is on food items Strategic geographic location (proximity of India to markets in Europe and Far East, South East and West Asia)
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Amul butter v/s Britannia (Product Strategy)

Under the food industry, Dairy product is very important part of food processing. Dairy processing is acting good role in India.

Dairy Processing India ranks first in the world in terms of milk production. Indian production stands at 91 million tones growing at a CAGR of 4 per cent. This is primarily due to the initiatives taken by the Operation flood programmes in organizing milk producers into cooperatives; building infrastructure for milk procurement, processing and marketing and providing financial, technical and management inputs by the Ministry of Agriculture and Ministry of Food Processing Industries to turn the dairy sector into viable self-sustaining organized sector. About 35% of milk produced in India is processed. The organized sector (large scale dairy plants) processes about 13 million tones annually, while the unorganized sector processes about 22 million tones per annum. In the organized sector, there are 676 dairy plants in the Cooperative, Private and Government sectors registered with the Government of India and the state Governments. 8 Major Indian and Overseas Players in the Food industry ITC Limited Parle Products Pvt. Ltd. Agro Tech Foods Amul Perfetti India Ltd. Cadbury India Ltd.
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Amul butter v/s Britannia (Product Strategy)

PepsiCo India Holdings Nestle India Pvt. Ltd. Britannia Industries Ltd. Hindustan Unilever Limited MTR foods limited Godrej industries Limited Dabur India Ltd.

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Amul butter v/s Britannia (Product Strategy) India has a unique pattern of production. processing and marketing/consumption of milk.591 lakhs) under the plan scheme of the Ministry during the year 2006-07. 5 . These cooperatives form part of a national milk grid which links the milk producers throughout India with consumers in more than 700 towns and cities bridging the gaps on account of seasonal and regional variations in the availability of milk.1 million village Dairy Cooperative Societies (DCS) (about 110 farmers per DCS). The cumulative milk handled by DCS across the country is about 18 million kg of milk per day. Over 11 million farmer are organized into about 0. which is not comparable with any large milk producing country. 32 Units have been sanctioned financial assistance (Rs. The Ministry of food Processing Industries is promoting organized Dairy processing sector to accomplish upcoming demands of processed dairy products and helping to identify various areas of research for future product development and quality improvement to revamp the Indian dairy export by way of providing financial assistance to the dairy processing units. small and marginal farmers and landless labourers ) in the country are engaged in milk production. Approximately 70 million rural households (primarily.

AMUL is based in Anand. will naturally wonder what combination of influences and incentives is needed to multiply such a model a thousand times over in developing regions everywhere. is a dairy cooperative in India. It is a brand name managed by an apex cooperative organisation. Amul has spurred the White Revolution of India." The Amul Pattern has established itself as a uniquely appropriate model for rural development. It is also world’s biggest vegetarian cheese brand." from the Sanskrit "Amoolya. (GCMMF). especially the highly successful one known as AMUL. It is one of the best examples of co-operative achievement in the developing economy “Anyone who has seen .Amul butter v/s Britannia (Product Strategy) History Amul (AMUL means "priceless" in Sanskrit. the dairy cooperatives in the state of Gujarat.. which has made India the largest producer of milk and milk products in the world. UAE. which today is jointly owned by some 2.16 million litres per day. Formed in 1946. Gujarat and has been an example of a cooperative organization's success in the long term.8 million producer members with milk collection average of 10. Currently Unions making up GCMMF have 2. Gujarat Co-operative Milk Marketing Federation Ltd. Besides India. Amul has entered overseas markets such as Mauritius.. 6 ." was suggested by a quality control expert in Anand. USA.8 million milk producer in Gujarat India. The brand name "Amul. 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.

The farmers of Gujarat own the largest state of the art dairy plant in Asia – Mother Dairy. It is the apex organization of the Dairy Cooperatives of Gujarat. Australia. This State has been a pioneer in organizing dairy cooperatives and our success has not only been emulated in India but serves as a model for rest of the World. The combined processing capacity of these plants is 11. Over the last five and a half decades.11 billion.8 million village milk producers with millions of consumers in India and abroad through a cooperative system that includes 13. with four dairy plants having processing capacity in excess of 1 million Litres per day. Hong Kong and a few South African countries. produced by the district milk unions in 30 dairy plants. During the last year. under the renowned AMUL brand name. It markets the products. Gandhinagar. Its bid to enter Japanese market in 1994 did not succeed.which can handle 2.5 million litres of milk per day and process 100 MTs of milk powder daily. Anand (GCMMF) is the largest food products marketing organisation of India. Company information The Gujarat Cooperative Milk Marketing Federation Ltd. All dairy plants of the unions are ISO 7 . affiliated to 13 District Cooperative Milk Producers’ Unions at the District level and GCMMF at the State level. 67. Dairy Cooperatives in Gujarat have created an economic network that links more than 2.Amul butter v/s Britannia (Product Strategy) Bangladesh. 3. but now it has fresh plans entering the Japanese markets. The turnover of GCMMF (AMUL) during 2008-09 was Rs. China. more than 70% of whom are small. marginal farmers and landless labourers and include a sizeable population of tribal folk and people belonging to the scheduled casts. All its products are manufactured under the most hygienic conditions. Huge capacities for milk drying.6 million litres per day. These cooperatives collect on an average 7. Singapore. Gujarat .1 billion litres of milk was collected by Member Unions of GCMMF.5 million litres of milk per day from their producer members.141 Village Dairy Cooperative Societies (VDCS) at the village level. product manufacture and cattle feed manufacture have been installed.

The Dairy Cooperatives have helped in ending the exploitation of farmers and demonstrated that when our rural producers benefit. Business houses create profit in order to distribute it to the shareholders. The Gujarat Cooperative Milk Marketing Federation Ltd.Amul butter v/s Britannia (Product Strategy) 9001-2000. Ever since the movement was launched fifty-five years ago. OBJECTIVE OF THE RESEARCH To find out the “AMUL BUTTER‟ can only a product to dominate the dairy product market To find out the factors which Amul can stay in market since last so many year. Methodology :: TITLE OF THE STUDY A study of the of AMUL BUTTER ‟ beverages products in the market to compete with Britannia. This circulation of capital with value addition within the structure not only benefits the final beneficiary – the farmer – but eventually contributes to the development of the village community. In the case of GCMMF the surplus is ploughed back to farmers through the District Unions as well as the village societies. ISO 22000 and HACCP certified. This is the most significant contribution the Amul model co-operatives has made in building Nation. Gujarat’s Dairy Cooperatives have brought about a significant social and economic change to our rural people. GCMMF (AMUL)’s Total Quality Management ensures the quality of products right from the starting point (milk producer) through value chain until it reaches the consumer. socially as well as democratically. It is an institution created by the milk producers themselves to primarily safeguard their interest economically. cannot be viewed simply as a business enterprise. 8 . the community and nation benefits as well.

SCOPE OF THE STUDY The scope of the study is limited solely to the markets visited by the researcher for the purpose of research. It is a map (or) blue print to which the research is to be conducted. SAMPLING DESIGN The sampling design used was Convenience sampling. Secondary sources The secondary sources were used only for collecting information regarding the sample. SOURCES OF DATA Primary sources The primary data was collected through questionnaires. this may hence not be a total reflection of the penetration of AMUL products for all the retail outlets in Cochin. this study is intended to find out the percentage of Amul products exists now and find out the factors that influence the buying decision of retailers of beverage products. RESEARCH DESIGN A Research design specifies the methods and procedures for conducting a particular study. they were however not used for analysis.Amul butter v/s Britannia (Product Strategy) PROBLEM STATEMENT where Amul had penetration for its products. which is a non-probability sampling method. They were filled using the scheduled method of data collection by the researcher. Descriptive research design has been considered as a suitable methodology for present study and for data analysis. The convenience factors were the availability and approachability of the respondents. LIMITATIONS OF THE RESEARCH The limitations of the research were as follows 9 .

2.00. AMUL is exporting a wide variety of products which include Whole and Skimmed Milk Powder.000 wholesale dealers and more than 5.000 retailers. Time frame required was not enough to survey more number of outlets. UHT Milk. Cottage Cheese (Paneer). ANALYSIS TECHNIQUES Quantitative analysis is performed using the data collected at each outlet to estimate the presence of Amul products. It has nearly 50 sales offices spread all over the country. Lack of proper experience on the part of the researcher in conducting such studies in the past. AMUL is also the largest exporter of dairy products in the country.Amul butter v/s Britannia (Product Strategy) 1. more than 3. Tools Utilized ➢ Percentage Analysis ➢ Graph Chart Amul Brand Building GCMMF (AMUL) has the largest distribution network for any FMCG company. AMUL is available today in over 40 countries of the world. Clarified Butter (Ghee) and Indigenous 10 .

shrikhand. flavoured milk. curd. basundi. Amul plans to launch India's first sports drink Stamina. and countries in Africa. and (SAARC) neighbours. ghee. West Indies. cheese. The major markets are USA. butter. In September 2007. paneer.Amul butter v/s Britannia (Product Strategy) Sweets. the Gulf Region. milk. Nutramul brand and others. which will be competing with Coca Cola's Powerade and PepsiCo’s Gatorade. Amul emerged as the leading Indian brand according to a survey by synovate to Asia’s top 1000 Brands. 11 . In January 2006. ice cream. cream. chocolate. gulab jamuns. Products Amul Butter Delicious Table Margarine Amul Lite Amul's product range includes milk powders.

with a humorous take on current events and is updated 12 .The mascot was first used for Amul butter. Kool Cafe. But in recent years in a second wave of ad campaign for Amul products. The pun in her words has been popular. Masti Butter Milk. Amul's sugar-free Pro-Biotic Ice-cream won The International Dairy Federation Marketing Award for 2007. The image shows the "Amul baby" in between George Fernandes and Atal Behari Vajpayee. Amul introduced Kool Koko.Amul butter v/s Britannia (Product Strategy) In August 2007. Other Amul brands are Amul Kool. Its advertising has also started using tongue-in-cheek sketches starring the Amul baby commenting jovially on the latest news or current events. Mascot Since 1967 Amul products' mascot has been the very recognisable "Amul baby" (a chubby butter girl usually dressed in polka dotted dress) showing up on hoardings and product wrappers with the equally recognisable tagline Utterly Butterly Delicious Amul. ready to drink coffee and India’s first sports drink stamina. Amul outdoor advertising uses billboards. a chocolate milk brand extending its product offering in the milk products segment. she has also been used for other product like ghee and milk. a low calorie thirst quenching drink. Advertise An Amul butter ad on Pakistan's Kargil War fiasco.

K. that created. Omfed in Orissa. Sudha in Bihar. Sylvester da Cunha was the managing director of the advertising agency. saras in Rajasthan.Amul butter v/s Britannia (Product Strategy) frequently. Parag in Uttar Pradesh. which are 13 .M. The Amul ads are one of the longest running ads based on a theme. Aanchal in uttaranchal.F (Nandini) in Karnataka. Vijaya in Andhra Pradesh. Rivals The success of Amul resulted in similar organizations being setup by state governments throughout India. ASP. now vying for the Guinness records for being the longest running ad campaign ever with Smokey Bear. Vita in Haryana and others. the campaign. in 1967. Aavin in Tamil Nadu. Britannia Eat healthy Think better Britannia Industries Limited is an Indian company based in Kolkata that is famous for its Britannia and Tiger brands of biscuit. Examples are Milma in Kerala. Verka in Punjab. most of which had reasonable success.

with an estimated 38% market share. Britannia started its business in Calcutta (now Kolkata) with an initial investment of Rs. butter. Forbes Global rated Britannia 'One amongst the Top 200 Small Companies of the World'. Tiger. The Economic Times pegged Britannia India's 2nd Most Trusted Brand.Britannia Industries Ltd. New Britannia Milk Bikis.Amul butter v/s Britannia (Product Strategy) highly recognised throughout the country. Britannia owns popular brands like : • • • • • • • NutriChoice SugarOut. 295. cheese. Britannia's business flourished acquiring a reputation for quality and value. From thereon. rusk. NutriChoice Digestive Biscuit. snacks. The Britannia's fame is largely acknowledged through the colourful Britannia logos that Indian cricketers such as Virender Sehwag and Rahul Dravid wear on their bats. Britannia. Britannia 50-50. Britannia is one of India’s leading biscuit firms. bread. Britannia Marie Gold Doubles. Treat Fruit Rollz. The Company's principal activity is the manufacture and sale of biscuits. buttermilk and yogurt. one of the premier food product companies in India. Britannia started as a small biscuit company in 1892 and has grown to a household name. History 14 . packed milk. Activities Britannia product line includes biscuits. has a number of awards and accolades in its name like. cakes and dairy products.

The Company's principal activity is the manufacture and sale of biscuits. 295. rusk. which are highly recognised throughout the country. Later. and died the same year in Tihar Jail. which gave a fillip to the company’s sales. Biscuits were in big demand during World War II. The company name was changed to the current Britannia Industries Limited in 1979. UK acquired a controlling interest in BBCo. an English businessman in Kolkata was taken as a partner and The Britannia Biscuit Company Limited (BBCo) was launched. The Britannia's fame is largely acknowledged through the colourful Britannia logos that Indian cricketers such as Virender Sehwag and Rahul Dravid wear on their bats. In 1993. The Mumbai factory was setup in 1924 and Peek Freans. biscuits were manufactured in a small house in central Kolkata.[4] then fled his Singapore base to India in 1995 after accusations of defrauding Britannia. cakes and dairy products.. bread. It was started way back in 1892 with an investment of Rs. 15 . with an estimated 38% market share. In 1918. C H Holmes. In what The Economic Times referred to as one of [India's] most dramatic corporate sagas. UK and became an equal partner with Groupe Danone in Britannia Industries Limited. the Wadia Group acquired a stake in ABIL. Initially. Britannia is one of India’s leading biscuit firms. becoming known in India as the 'Biscuit King'. the business was acquired by the Gupta brothers and operated under the name of V. In 1982 Nabisco Brands Inc.S. USA became a major foreign shareholder Kerala businessman K. Pillai ceded control to Wadia and Danone after a bitter boardroom struggle. Rajan Pillai secured control of the group in the late 1980s.Amul butter v/s Britannia (Product Strategy) Britannia Industries Limited is an Indian company based in Kolkata that is famous for its Britannia and Tiger brands of biscuit. Brothers.

As time moved on. The company we all know as a britannia today. Britannia trades and markets dairy products. Britannia's business was flourishing. during the tragic World War II. By 1910. more importantly. in 1892 to be precise. it became the first company east of the Suez Canal to use imported gas ovens. a biscuit company was started in a nondescript house in Calcutta (now Kolkata) with an initial investment of Rs. In 1975. Britannia mechanised its operations. and the National Dairy Development Board (NDDB). the Britannia Biscuit Company took over the 16 . with the advent of electricity. Its main competitors are Nestle India.Amul butter v/s Britannia (Product Strategy) Dairy products Dairy products contribute close to 10 per cent to Britannia's revenue. the Government reposed its trust in Britannia by contracting it to supply large quantities of "service biscuits" to the armed forces. Britannia was acquiring a reputation for quality and value. Britannia holds an equity stake in Dynamix Dairy and had outsourced the bulk of its dairy products from its associate. But. and in 1921. The story of one of India's favourite brands reads almost like a fairy tale.and amul (GCMMF). Once upon a time. the biscuit market continued to grow… and Britannia grew along with it. 295. The beginnings might have been humble-the dreams were anything but. and its dairy portfolio grew at 47% in 2000-01 and by 30% in 2001-02. As a result.

and that miniscule initial investment has grown by leaps and bounds to crores of rupees in wealth for Britannia's shareholders. Four years later in 1983. Britannia's fairy tale is not only going strong but blazing new standards. Today. The following year.Amul butter v/s Britannia (Product Strategy) distribution of biscuits from Parry's who till now distributed Britannia biscuits in India. firmly establishing the Indianness of the firm. It was equally recognised for its innovative approach to products and marketing: the Lagaan Match was voted India's most successful promotional activity of the year 2001 while the delicious Britannia 50-50 Maska-Chaska became India's most successful product launch. it celebrated its Platinum Jubilee."Eat Healthy. In 2002. was born. the world's second largest Dairy Company. Britannia strode into the 21st Century as one of India's biggest brands and the pre-eminent food brand of the country. the "Britannia Khao. On the operations front. In 1997. In 1992. World Cup Jao" promotion further fortified the affinity consumers had with ‘Brand Britannia’. In 1999. 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. Indian shareholding crossed 60%. more than a century after those tentative first steps. In the subsequent public issue of 1978. the company unveiled its new corporate identity . Forbes Global rated Britannia 'One amongst the Top 200 Small Companies of the World'. In recognition of its vision and accelerating graph.and made its first foray into the dairy products market.100 crores revenue mark. the company was making eqally dynamic strides. it crossed the Rs. Having succeeded in garnering the trust of almost onethird of India's one billion population and a strong management at the 17 . Britannia's New Business Division formed a joint venture with Fonterra. and The Economic Times pegged Britannia India's 2nd Most Trusted Brand. and Britannia New Zealand Foods Pvt. Ltd. Britannia Biscuit Company was re-christened Britannia Industries Limited (BIL). Think Better" .

Amul butter v/s Britannia (Product Strategy) helm means Britannia will continue to dream big on its path of innovation and quality.Good Day.[1] The brand names of biscuits include VitaMarieGold. It would not be allowed to trade. Milk Bikis. 50 50. Good Morning. which they would market in India. except at the wholesale level. Treat. Singapore. which had recently established its own dairy business. Pakistan and Egypt when it attempted to register the Tiger 18 . Britannia has also tentatively announced that its dairy business would be transferred and run by the joint venture. Britannia announced a joint venture with Fonterra Co-operative Group of New Zealand. Thin Arrowroot. or 20% of Britannia revenues in 2006. [edit] Biscuits The company's factories have an annual capacity of 433.000 tonnes. Tiger. an integrated dairy company from procurement of milk to making value-added products such as cheese and buttermilk. happily ever after Joint venture with New Zealand Dairy On 27 October 2001. Managing Director Vinita Bali claims the company found out in 2004 Danone launched the Tiger brand in Indonesia in 1998 and later in Malaysia. Pure Magic.S. And millions of consumers will savour the results. thus pitching it in competition with Danone. and the remaining 2 per cent held by a strategic investor. the mass market brand. The company alleged that Danone has violated its intellectual property rights in the Tiger brand by registering and using Tiger in several countries in 2006 without the consent of the Britannia Board.75 million in sales including exports to countries including the U. The joint venture will allow technology transfer to Britannia. realised $150. Nutrichoice Junior. and Australia. Tiger. Nice and many more. The authorities' approval to the joint venture obliged the company to start manufacturing facilities of its own. Britannia planned to source most of the products from New Zealand. Britannia and New Zealand Dairy each holding 49% of the JV. Bourbon.

The dispute has been resolved with Denone paying Rs 220 Million for utilizing the brand.Amul butter v/s Britannia (Product Strategy) trademark in some of these countries. One of the World leaders in the food industry. The Wadia Group (parent company of Britannia) along with Groupe Danone of France has turned up to be an International FMCG Major specializing in Fresh Dairy Products. Performance Britannia has registered a turnover of Rs 21. No # 1 worldwide equally placed in Bottled Water (by volume). GROUPE DANONE three core business areas are Fresh Dairy Products.[8] Whilst it was initially reported in December 2006 that agreement had been reached. Britannia initiated legal action against Danone in Singapore in September 2007. Bottled Water and Biscuits/Cereals. Its dominant position worldwide is based on major international brands and on its rock solid presence in local markets (about 70% of global sales come from brands that are local market leaders). and Britannia securing legitimate right to use the Tiger brand worldwide. the Tiger brand of biscuits in Malaysia has been renamed Kraft TiGER Biscuits beginning September 2008. Beverages and Biscuits and Cereal Products strives to improve the lives of people around the world by providing them with better and value added food products.[9] it was reported in September 2007 that a solution remained elusive. some of its achievements are: • • • No # 1 worldwide in Fresh Dairy Products. No # 2 worldwide in Biscuits and Cereal Products.993 million for the year ended 19 .[8] In the meantime since Danone's biscuit business has been taken over by Kraft.

Avesthagen. in case of a deadlock between the partners. ABIH which has a separate agreement signed in 1992 and is subject to the British law. the Foreign Investment Promotion Board of India rejected Danone's claims 20 .[14] In addition. In May 2007. which requires a foreign company to obtain the consent of its Indian joint venture partner before pursuing an independent business in a similar area. Wadia BSN and UK registered Associated Biscuits International Holdings Ltd. Danone is obliged to buy the Wadia BSN stake at a "fair market value". Wadia was to be Danone's partner in the food and dairy business. In September 2007. Danone is prohibited from launching food brands within India without the consent of the Wadias. The court ordered Danone not to alienate. the partners agreed there would be the right of first refusal to buy out the remaining partner in the event of the other wishing to sell its holding. 2005. which together hold 51 per cent stake in Britannia. The ABIH tranche was acquired in 1992. Nusli Wadia told the Ministry of Commerce and Industry that Danone invested in a Bangalore-based bio nutrition company.. and product launches from Groupe Danone’s were expected but never materialised despite the JV being in existence for over 11 years in India. Wadia also filed a case in the Bombay High Court for a breach of a noncompete clause in that connection. including joint ventures based purely on technical collaboration. It was agreed that. Britannia has posted Net Profit to the tune of Rs 1076 million for the year ended 31st March 2006-07. while the controlling stake held by Wadia BSN was acquired in 1995. encumber or sell shares of Avestagen. in October 2006 in violation of the government's Press Note 1. and that its 25 pct holding in Britannia was indirect.Amul butter v/s Britannia (Product Strategy) 31st March 2006-07. Under the 1995 joint venture agreement. Danone argued that Press Note 1 did not apply to it as it did not have a formal technology transfer or trademark agreement with Avesthagen. Ownership and relationship between major shareholders The Wadias' Kalabakan Investments and Groupe Danone have two equal joint venture companies.

96%. "adding enjoyable vitality to life. Think Better. Wadia claimed Danone had used the Tiger brand to launch biscuits in Bangalore. The company was under no regulatory compulsion to do so. which is a Wadia group entity based in Mauritius. Danone will sell its 25. biscuit manufacturer Britannia Industries has called on consumers to "Eat Healthy. In June 2006. in fact. we felt that if our promise to consumers [is to] make products that are not just enjoyable but also good for them. She stresses that Britannia is not in the "health food" business. Wadia's will hold a majority stake of 50. 21 .500 tons of Trans fat from its biscuits in the last year. then we need to make that promise come alive through our products. Danone has finally agreed to sell its stake in Britannia and get out of this line of business. Over the last few years. The deal is valued to be at $175– 200 m. as managing director Vinita Bali puts it. 50% of its products are fortified. it is the only biscuit manufacturer in India to have taken such a step. emerging from a period of internal crisis and preparing to address a larger slice of India's growing food space.Translated literally from Hindi." Now. the 90-year-old Bangalore-based company is taking on a new slogan: Zindagi mein Life. After a prolonged legal battle.48% stake to Leila Lands. who has been at Britannia's helm since 2005. With this buy-out.Amul butter v/s Britannia (Product Strategy) that it does not need a non-compete waiver from the Wadias to enter into business in India alone. making them completely trans fat-free. chocolates and other snacks. the new slogan means "adding life to life" -. as we looked at what we stand for and what we could stand for. Britannia has also fortified many of its products with vitamins and micronutrients such as iron. For more than a decade. Currently." competing not only with other biscuits but also with savories. "Over the past few years." This is perhaps best exemplified by Britannia's decision to remove 8. Positioning the Britannia brand as both enjoyable and healthy is core to Bali's growth strategy."According to Bali. but rather "in the business of delight and enjoyment.or.

Hungry for More The new positioning is also intended to strengthen the mother brand itself. That was fine. Britannia has dabbled with bread and cake for more than two decades and entered 22 .S. (For the year ended March 2008. The dairy business. such as Tiger glucose biscuits.S. biscuits brought in about 90% of Britannia's net sales of $650 million. which Britannia entered in 1997 and spun off as a joint venture with New Zealand's Fonterra Group in 2002. as biscuits accounted for the bulk of the company's revenues. Think Better" campaign in 1997. In addition to growing its core biscuit business. it wants to significantly expand its small businesses including dairy.and that move has paid off. Microsoft founder and philanthropist Bill Gates included Britannia's fortified snacks in a list of eight examples of 'creative capitalism' published in Time magazine. With the introduction of the "Eat Healthy.). has revenues of barely $36 million and has yet to become profitable. Britannia seeks to sharply differentiate itself from other brands -. Britannia focused on building its individual brands.Amul butter v/s Britannia (Product Strategy) By marketing itself as a healthier alternative.) But now Britannia wants to broaden its menu. President Bill Clinton's campaign against childhood malnutrition through the high-profile Clinton Global Initiative. bread. however. Good Day cookies and Treat cream biscuits. Last September. The company was also recently recruited to participate in former U. cake and rusk (known as zwieback in the U.

"We will pursue profitable growth opportunities where we can create propositions that are relevant and differentiated from a consumer point of view. More important.Amul butter v/s Britannia (Product Strategy) the rusk market a few years ago. Britannia's vice president and chief operating officer: "We are looking at categories that gel with our principles of enjoyable and healthy food. confectionary and packaged foods. "Our vision is to become a larger player in the food space. meat and poultry. though speculation includes breakfast items and ready-to-cook and ready-to-eat products. We want to participate in as many consumption moments as possible in the food space through both leveraging our current products better and through different kinds of products. He has since moved on to become CFO of Bombay Dyeing. the Indian food industry is estimated to have been at $200 billion in 2006-07 and is expected to grow to $300 billion by 2015. Adds Neeraj Chandra." she notes. The report considers the food industry to include fruits and vegetables. dairy products. These three businesses together take in just $68 million. Bali says that Britannia will not look at staples such as rice. Britannia looks to explore other opportunities within the growing food space. like Britannia. marine and fish." 23 . wheat flour and sugar. and alcoholic and non-alcoholic beverages. breads and bakery. who was Britannia's chief financial officer when he was interviewed for this article. is a Wadia Group company. What new areas might Britannia enter? Company officials aren't saying. and as we get into newer products and newer categories. which. their strength will be derived from the Britannia mother brand. According to a November 2008 report by the Federation of Indian Chambers of Commerce and Industry and management consulting firm Technopak Advisors." says Durgesh Mehta.

including a brief stint as chief operating officer. There has been no new energy. and there is [a lot of growth] in this space itself. he says. says that while Britannia undoubtedly remains a market leader. taste and health are mutually exclusive in the Indian context. managing director of Surya Food & Agro. which makes the Priya Gold regional brand of biscuits. "Britannia certainly has the capability to be a larger player in food. "The brand equity of Britannia can be as elastic or as inelastic as its vision is for the Indian market." Agarwal says. no 'wow' factor.both of which Britannia has discontinued -. chief executive officer of Harish Bijoor Consults and a visiting professor at the Hyderabad-based Indian School of Business." Sen says. It has been launching variants with new packaging. a snack product." says Harish Bijoor. and it certainly has the capability to do so. Britannia is in an enviable position to leverage [these] opportunities. who was with Britannia for more than 25 years. Recent launches including Chutkule." Bijoor is also not convinced about Britannia's positioning as health-cum-enjoyment: According to his research. and Fruit Rollz -.failed to excite consumers. but it needs to be far more aggressive. Ingredients for Growth 24 . "There has not been a single new product in the past few years which has been pioneering for the category."Adds Bijoor: "Dairy and biscuits is still a wide-open arena. Agarwal.B. much of its strength is derived from past glory and its strong consumer equity. but there is nothing dramatically new. adds: "Redefining its boundaries to become a larger player in food is a great strategy for Britannia. P. the Indian arm of the Australian biscuit company. "Britannia has been very good at developing its current business. Britannia needs to innovate.Amul butter v/s Britannia (Product Strategy) Industry players and analysts see Britannia's move as both smart and inevitable. "The new products that Britannia has been introducing in recent times have been more by way of tweaking the existing portfolio. but it has not come out with any innovations in recent years." Sen is currently managing director of Unibic Biscuits India."Nikhil Sen.Both Sen and Bijoor add a note of caution.

the company has been investing significantly in higher and better quality of human resources both at the front end and at the back end. institutions. Britannia plans to increase advertising and marketing spending to 10% to 12% of sales over the next few years from a current 7%." Products such as Tiger glucose and NutriChoice biscuits fall under the former category. 25 . modern trade. It has sharply segmented its go-to-market strategy and. has signed on with a trade marketing agency. Other initiatives include introducing personal consumption packs to attract youth and people on the move. Each category is headed by a senior executive responsible for outlining distinct growth strategies.Amul butter v/s Britannia (Product Strategy) So what are Bali's main ingredients for growth? Investments in people. and semi-urban and rural markets. For instance." In 2008. for the first time ever. Britannia now has separate teams for general sales. unlike an earlier focus on simply increasing the number of outlets it covered. and new choices for consumers. Says Chandra: "These are some finer distinctions we would not even have thought of three years ago. Meanwhile. brands and infrastructure. It is also working to increase trade marketing visibility and. 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. It is building strong capabilities in each of these segments. while Good Day and Treat fall under the latter. According to Mehta. improved efficiencies and cost reduction. Britannia has doubled its ad spending in the last three years. Britannia divided its product portfolio into two distinct categories: "health and wellness" and "delight and lifestyle. Britannia has also been working with an international consulting agency for building capabilities in shopper understanding as opposed to consumer understanding.

Sources inside Britannia say revenue targets are $1. "What we make of it depends on our ability to commercialize the opportunity. We want to be among the three fastestgrowing FMCG companies in the country and to grow profitably.25 billion by 2010 and $3 billion by 2015." Amul product range Bread Spreads Amul Butter Utterly Butterly Delicious Amul Lite Low fat. and strengthened its supply chain management significantly. It has also devised a long-term distributed manufacturing strategy. "There is a huge opportunity out there in the market and it is up for grabs. vice president and chief technology officer: "The stocks at our distributors are now replenished within 24 hours. an increase of about 60%.Bali is looking to leverage all these new pieces for maximum competitive advantage." Lal adds that cost reductions over the last three years have saved the company $30 million.000 tons of annual capacity. According to Rajesh Lal. and in the past three years we have increased the availability of our [stock-keeping units] from 60% to 90% across the country. While Bali won't commit to any numbers. put in place a continuous replenishment supply efficiency system.Amul butter v/s Britannia (Product Strategy) On the infrastructure front. low Cholesterol Bread Spread Delicious Table Margarine The Delicious way to eat healthy 26 . Britannia has added 200. her hunger clearly is to be the best." she says.

Delicious Chocolate taste Nutramul Energy Drink A drink for Kids provides energy to suit the needs of growing Kids Amul Kool Chocolate Milk Amul Kool Flavoured Bottled Milk Amul Kool Flavoured Tetra Pack Amul Masti Spiced Buttermilk Amul introduces the Best Thirst Quenching Drink Amul Lassee 27 .Amul butter v/s Britannia (Product Strategy) Milk Drinks Amul Kool Millk Shaake Amul Kool Amul Kool Cafe Kool Koko A delight to Chocolate Lovers.

Purest Dairy Whitener Fresh Milk Amul Fresh Milk This is the most hygienic milk available in the market. Pasteurised in state-of-the-art processing plants and pouch-packed for convenience. Amul Gold Milk 28 . Sagar Tea Coffee Whitener Amulya Dairy Whitener The Richest.Amul butter v/s Britannia (Product Strategy) Amul Kool Thandai Powder Milk Amul Spray Infant Milk Food Still. Mother's Milk is Best for your baby Amul Instant Full Cream Milk Powder A dairy in your home Sagar Skimmed Milk Powder Which is especially useful for diet preparations or for use by people on low calorie and high protein diet.

..Amul butter v/s Britannia (Product Strategy) Amul Taaza Double Toned Milk Amul Lite Slim and Trim Milk Amul Fresh Cream Amul Shakti Toned Milk Amul Calci+ Amul Buttermilk Cheese Amul Pasteurised Processed Cheese 100% Vegetarian Cheese made from microbial rennet Amul Cheese Spreads Tasty Cheese Spreads in 3 great flavours. has a sweet-dry flavour and hazelnut aroma Amul Pizza Mozzarella Cheese Pizza cheese..makes great tasting pizzas! 29 . Amul Emmental Cheese The Great Swiss Cheese from Amul.

Amul butter v/s Britannia (Product Strategy) Gouda Cheese For Cooking Amul / Sagar Pure Ghee Made from fresh cream. Has typical rich aroma and granular texture. Cooking Butter Amul Malai Paneer Ready to cook paneer to make your favourite recipes! Utterly Delicious Pizza Britannia product 30 . An ethnic product made by dairies with decades of experience.

NutriChoice Digestive Biscuit. FUTURE PLANS  Expansion consumer of distribution and network.000 distributors.000 non-refrigerated retail outlets. Britannia 50-50. cheese.000 retailers with refrigerators and ➢ 5. buttermilk and yogurt. ➢ 46 sales offices.. packed milk. butter. Britannia owns popular brands like : • • • • • • • NutriChoice SugarOut. product creative marketing. we will education innovation.00. 31 . Treat Fruit Rollz. Tiger.Amul butter v/s Britannia (Product Strategy) Britannia product line includes biscuits.. ➢ 1. PRODUCT DEVELOPMENT ➢ Cooperative system ➢ Profitability ➢ Committed to the farmers DISTRIBUTION NETWORK ➢ 300 stock keeping units. New Britannia Milk Bikis. snacks. Britannia Marie Gold Doubles. ➢ 3.00.

5 million kg per day) of milk in the peak flush season. by 2020  Milk drying capacity will also be enhanced by 200 MT’s per day  Plan to expand our cattle feed manufacturing capacity.600 crores (Rs. by 2020.1 million kg per day). 26 billion) till the year 2020 32 .  Satellite dairies with combined processing and liquid milk packaging capacity of 50 LKPD will be established in major metro market  We plan to double to processing capacity of our dairy plants to 20.  Tapping the rising demand for new value-added products.000 MT’s per day. at an annual growth rate of 4%  Installing Bulk Milk Chillers and Automatic Milk Collection Systems in all our village cooperative societies. more than four times to 12.  Milk shed area will increase to 231 lakh kg per day (23.  Total investments envisaged for creating all the required infrastructure would be Rs.Amul butter v/s Britannia (Product Strategy) leverage effectively on rising income levels and growing affluence among Indian consumers.7 million kg per day. 2.  Collect as much as 195 lakh kg per day (19.

new.Amul butter v/s Britannia (Product Strategy) Findings from surveys :: The reason people prefer AMUL product Product Peopl e 48 1 1 6 3 1 60 43 7 4 2 Taste Price varie ty 3 1 1 1 Taste & Price Taste & variety 1 2 3 All 3 1 1 Amul Britannia Nutrilite Home-made Amul & home made Amul & nutrilite All 4 total 38 1 2 2 6 1 - Product Peop le 48 1 1 6 3 1 advert ise 43 - Newspa per 1 - sam ple 1 - Ad & news 2 Ad.& mag 2 - All 3 - Amul Britannia Nutrilite Home-made Amul & home made Amul & nutrilite All 4 1 1 - - 5 2 1 1 33 .

Amul butter v/s Britannia (Product Strategy) total 60 51 2 1 4 2 0 Product Amul Britannia Nutrilite Home-made Amul & home made Amul & nutrilite All 4 total Peop le 48 1 1 6 3 1 60 Local Mkt 34 1 1 4 3 1 44 Super mkt 14 2 - Both - 16 - Q .1) What kind of butter you buy ? Product • Total Amul 38 60 Britannia 15 Nutrilite 4 Home-made 3 34 .

& News 4 Ad.4) Where do you normally buy Amul product from ? People 60 Local Mkt 44 Super mkt 16 Q . News.6) Which quantity do you normally buy ? 35 .3) How you come to know about this product ? People 60 Advertiseme nt 51 Newspape r 2 sample 1 Ad.Amul butter v/s Britannia (Product Strategy) Q.2) Why do you prefer particular brand ? People 60 Taste 43 Price 7 variety 4 Taste & Price 2 Taste & variety 3 All 3 1 Q.& Mag 2 Q.

8) For what purpose do you butter mostly ? Q . of ads.14) Who will be the better competitor to Amul ? Q .7) How many times do you buy Amul Butter ? Q .16) If Amul come with low cholesterol did you accept it ? 36 .Amul butter v/s Britannia (Product Strategy) Q .12) What difference you see in both the product ? Q .13) Can you recall latest Amul Or Britannia advertisement ? Q .10) At what time you see more no. On Amul & Britannia ? Q .

21) Amul product with the Red colure packing its work in the market or not ? Q .22) Why do you fell Britannia brand is not as well.Amul butter v/s Britannia (Product Strategy) Q . 18) Would you prefer to switch to butter of anther brand if it is cheaper than your preferred brand without any change in quality & taste ? Q . dairy product in market as compare to Amul ? Q . 17) Do you think that the present cost of product which you prefer is costly? If yes what will be your ideal price range for 100gm butter pack ? Q .23) If company gives 20%off to customer it’s help to growth of selling of company product ? 37 .20) Dou you fell that company should change their brand name ? Q .

 Amul gives the better replacement offer to the expired product than the other company products.  Replacement offer to the expired product is one of the most important factor for influencing the stocking decision of the product. most of the retailers agree that Amul has good distribution channel.Amul butter v/s Britannia (Product Strategy) CONCLUSION  Most of the people always prefer Amul for any dairy product.000 million Indians  Also known for food brand  On the concern of distribution channel .  Low cost than any other brand was the one of the reason to chose Amul as a best product. 38 .  AMUL’S Philosophy  Trustworthy of 1.

Packaging of the product was ranked only 4th 39 . Consumer preference given by the company to the retailers of the product was raked 1st ii. i. Promotional strategies of the company for promoting its products was ranked 2nd iii.Amul butter v/s Britannia (Product Strategy)  Ranking of some other factors that influence the retailers stocking decision: Following is the order in which the retailers ranked the other factors that influence their stocking decision. Offers for the product was ranked 3rd iv.

Trust of the company is the most important point for its products. Credit offered by the distributor iii. Discounts provided by the company for its products. Distribution in supplying the products regularly iv. i.Amul butter v/s Britannia (Product Strategy) Overall ranking of the factors that influence the retailers stocking decision. Following is the sequential order in which the retailers ranked the factors that influence their stocking decision. ii. 40 .

Amul should take care of their goodwill of company market any damage product sell in the open market it may be effect company reputation. For this fact. Amul has a relatively good distribution network.Amul butter v/s Britannia (Product Strategy) RECOMMENDATIONS 1. 4. 2. Given the fact that margin offered to the retailer is not similar in the case of the competitors product. Company should also give the replacement offer to those outlet which is running with small business. 3. 41 . Here company should consider on the supply of product in the peak season. The main cause of the supply of fresh product is that customer always wants fresh product. the company should give good margin to the retailers than the competitors. 5. They don‟t want to take 3 or 4 days old product. but still company is not able to fulfill the demand of outlet in the peak season when demand is very high. Only fresh product should be supply in the outlet.

2) Why do you prefer particular brand ? -Price Variety Q.Amul butter v/s Britannia (Product Strategy) Appendix :: Market survey on Amul butter v/s Britannia Personal detail : Name Address Age Gender : : : : Occupation : Income p.a.1) What kind of butter you buy ? -Amul Nutrilite Britannia Home .3) How you come to know about this product ? -Advertisement Sample Newspaper Magazines Taste 42 .made Q. : Total family member : Questions : Q .

9) Do you recall advertisement of Amul butter ? -Yes No Q .4) Where do you normally buy Amul product from ? -Local market Super market (big bazaar) Q .6) Which quantity do you normally buy ? -100 gm 1 kg 500 5 kg Q . of ads. On Britannia ? -Morning Evening Afternoon Night 43 . On Amul ? -Morning Evening Afternoon Night Q .8) For what purpose do you butter mostly ? -On roti On bread On Bhaji On dosa Q . of ads.Amul butter v/s Britannia (Product Strategy) Q.10) At what time you see more no.5) Did you ever use any other Brand ? -Yes No Q .11) At what time you see more no.7) How many times do you buy Amul Butter ? -2 times in week On special occasion Once in week Others Q .

Amul butter v/s Britannia (Product Strategy) Q . 21 to 25 Q .13) Can you recall latest Amul advertisement ? -Yes No Q .15) Do you find that Amul butter having high cholesterol ? -Yes No Q . 11 to 15 Rs. 18) Would you prefer to switch to butter of anther brand if it is cheaper than your preferred brand without any change in quality & taste ? -Yes No Rs.12) What difference you see in both the product ? -Quality Promotion Size Quantity Price Q . 17) Do you think that the present cost of product which you prefer is costly? If yes what will be your ideal price range for 100gm butter pack ? -Rs. 16 to 20 Q .19) Is there anything that you feel lacking in your preferred brand ? 44 .14) Who will be the better competitor to Amul ? -Britannia Nutrilite Local Brand Q .16) If Amul come with low cholesterol did you accept it ? -Yes No Q .

23) If company gives 20%off to customer it’s help to growth of selling of company product ? -Yes No Q .22) Why do you fell Britannia brand is not as well. dairy product in market as compare to Amul ? -price Low quality Less promotion Small size Problem in packing High Q .24) Can you suggest a change which will improve the product further ? -- 45 .20) Dou you fell that company should change their brand name ? -Yes No Q .Amul butter v/s Britannia (Product Strategy) -- Q .21) Amul product with the Red colure packing its work in the market or not ? -Yes No Q .

google.wikipedia.amul.com 46 .org ➢ www.Amul butter v/s Britannia (Product Strategy) BIBLIOGRAPHY ➢ Marketing research WEBLIOGRAPHY ➢ www.com ➢ www.

of ads.8) For what purpose do you butter mostly ? -On roti On bread On Bhaji On dosa Q .Amul butter v/s Britannia (Product Strategy) Q . On Amul ? -Morning Evening Afternoon Night Q .5) Did you ever use any other Brand ? -Yes No Q .11) At what time you see more no.7) How many times do you buy Amul Butter ? -2 times in week On special occasion Once in week Others Q .6) Which quantity do you normally buy ? -100 gm 1 kg 500 5 kg Q .10) At what time you see more no.9) Do you recall advertisement of Amul butter ? -Yes No Q . On Britannia ? -Morning Evening Afternoon Night 47 . of ads.

Amul butter v/s Britannia (Product Strategy) Q .16) If Amul come with low cholesterol did you accept it ? -Yes No Q . 21 to 25 Rs. 18) Would you prefer to switch to butter of anther brand if it is cheaper than your preferred brand without any change in quality & taste ? -Yes No Q .15) Do you find that Amul butter having high cholesterol ? -Yes No Q .14) Who will be the better competitor to Amul ? -Britannia Nutrilite Local Brand Q .13) Can you recall latest Amul advertisement ? -Yes No Q . 17) Do you think that the present cost of product which you p refer is costly? If yes what will be your ideal price range for 100gm butter pack ? -Rs.19) Is there anything that you feel lacking in your preferred brand ? -- 48 . 16 to 20 Q .12) What difference you see in both the product ? -Quality Size Quantity Price Promotion Q . 11 to 15 Rs.

23) If company gives 20%off to customer it s help to growth of selling of company product ? -Yes No Q . dairy product in market as compare to Amul ? -Low quality Less promotion Small size Problem in packing High price Q .Amul butter v/s Britannia (Product Strategy) Q .21) Amul product with the Red colure packing its work in the market or not ? -Yes No Q .20) Dou you fell th at company should change their brand name ? -Yes No Q .22) Why do you fell Britannia brand is not as well.24) Can you suggest a change which will improve the product further ? -- 49 .

org  www.google.com 50 .com  www.Amul butter v/s Britannia (Product Strategy) BIBLIOGRAPHY  Marketing research WEBLIOGRAPHY  www.wikipedia.amul.