You are on page 1of 9

Britannia Industries Limited 

is an Indian company specialised


in food industry, part of the Wadia Group headed by Nusli
Wadia. Founded in 1892 and headquartered in Kolkata, it is one
of India's oldest existing companies and best known for its
biscuit products. The company sells
its Britannia and Tiger brands of biscuits, breads and dairy
products throughout India and abroad. Beginning with the
circumstances of its takeover by the Wadia Group in the early
1990s, the company has been mired in several controversies
connected to its management. However, it still has a large
market share and it is profitable.

Britannia Industries Limited

Formerl Britannia Biscuit Company


y Limited

Type Public

Traded BSE: 500825
as NSE: BRITANNIA
NSE NIFTY 50 Constituent

ISIN INE216A01030

Industry Food processing

Founded 1892; 130 years ago in Calcutta


1918; 104 years ago as Britannia
Biscuit Company Limited

Headqua Kolkata, West Bengal


rters , 
India

Area Worldwide
served

Key Nusli Wadia (Chairman)


people Varun Berry (Managing
Director)
Product Bakery
s products including biscuits, bread
, cakes and rusk
dairy
products including milk, butter, ch
eese, ghee and dahi
Revenue  ₹11,878.95
crore (US$1.6 billion) (2020)
Operatin  ₹1,860.87
g crore (US$250 million) (2020)
income
Net  ₹1,402.63
income crore (US$190 million) (2020)
Total  ₹7,253.34
assets crore (US$960 million) (2020)
Number 4,480 (as on 31 March 2019)
of
employe
es
Parent Wadia Group
Subsidia Manna Foods Private
ries Limited
International Bakery
Products Limited
Website www.britannia.co.in
Footnotes / references

Strengths of Britannia
1. Brand portfolio: Britannia is the only company in India that
has offerings in bakery products across the segment for all
income groups due to which it’s possible for them to acquire
large share of wallet of consumers. Britannia holds nearly
30% market share in the India’s biscuit category.
2. High Brand Recall: Because of its presence across range of
bakery products like biscuits, rusk, cakes & dairy products like
milk, butter & cheese etc., their shelf visibility is high. Also
their focused marketing & advertising campaigns resulted into
positive word of mouth & high TOMA (top of mind
awareness).
3. Serving Indian Markets from last 120 years: 123 years ago,
in a small house in central Calcutta (now Kolkata) an intrepid
baker made a batch of delicious, golden brown biscuits. These
were meant for officers of the British Raj and their
families, people used to the high standards of English tea-time
snacking. Over the last century and a quarter, Britannia has
been serving the Indian consumer with a range of fresh,
nutritious and flavor-rich products. Today, Britannia is a
leading food company in India with over Rs. 6000 crores in
revenues, delivering products in over 5 categories through 3.5
million retail outlets to more than half the Indian population.

Weaknesses of Britannia
1. Over dependency on the biscuit business: Britannia’s 75%
revenue comes from biscuit business. Although they are
market leader in the same but over dependency on the same
may affect their long term existence in the business.
2. Various brands got commoditized over time: Brands like
Bourbon & glucose biscuits of Britannia got commoditized
over time such as in case of “bourbon”, Parle also introduced
“Parle bourbon” biscuits. Brand name when used like this by
other companies creates confusion in the mind of the
consumers resulting in loss of sale.
3. No overseas presence: Apart from India Britannia have
presence in Dubai & Oman that too through subsidiaries. But
overall export of the products is very less then its actual
potential.
4. Struggling dairy business: Dairy business contributes only
5% of the company’s overall revenues.
Opportunities of Britannia
1. Emerging Dairy Industry: With organoleptic (flavor, taste &
color) features shaping the dairy industry, improving dairy
products can help the company to improve their market share
& reposition itself in dairy market.
2. Changing lifestyle & demand for healthier food
products: Improvement in literacy rate, health awareness,
changing lifestyle,& increase in disposable income are shaping
the demand for healthy food products.
3. Overseas Market: Expanding its business to other overseas
market can help the company to emerge as a global player in
the food products.

Threats in the SWOT analysis of Britannia


1. Competition in the market: With increasing number of
players (local players – Anmol, Priya & national- ITC, Parle),
it’s becoming very hard for the company
to differentiate themselves from others. There is also threat
from counterfeit products destroying its brand image in the
market.
2. Price of raw material: Increasing price of commodities will
result in further increase in the price of the end product.
Further increase in price will result in decrease
in profitability or reduced consumption.
3. Buyers power: With highly diversified
consumer goods market where there are lots of brands
claiming different sorts of benefits, it’s very difficult for
consumers to stick to a particular brand & hence results
into brand switching where consumer get power to select a
brand based on several factors like
availability, reference group recommendation, preference &
price.
Britannia and parle the two food majors of India in the field of
biscuits and bakery products. fighting it out in market for the
share of consumers pocket and market dominance .In yester
years it was market segments which both have dominated and
not much was seen to disturb that arrangement.Parle with its
Parle G , Krackjack and manaco where as Britannia has Good
day , Marie gold , Creams
Britannia dominated the premium segment of biscuits where as
parle dominated the mass ,low premium biscuits ,things were
pretty predictable but for the entry of new players have changed
that status .Now that ITC and Priya gold are trying to break into
their market and have established them selves as important
players in biscuit market . These two major biscuit producers
has are now forced to innovate products by the consumers to
create brands which could be differentiated.
Both are trusted brand are ranked in top brands for biscuit, both
have a long history of brands. The Major difference though is
that where Britannia is revenues from bakery products is around
90 % ,share of biscuit sales is around –80% for parle
Recently two categories has seen major ad war are bourbon and
salty snacks . Parle has come up with new bourbon under its
hide and seek umbrella brand .Pitching against Britannia s
popular bourbon which has 70% market share of the bourbon
biscuits. Parle upped its TV ads by roping in Hritik roshan.
Similarly Parle has re jigged its Krack Jack biscuits to
Britannia's 50- 50 eating up its market share. Krack Jacks with
new packaging and TV ads of Krack and Jack promoting the
brands. It would be interesting to see what impacts these would
have on the sales of these two biscuits.

PARLE VS BRITANNIA
Business
Description Britannia Parle
Established 1896 1929
Nature of business Public ltd Family run business
No of manufacturing 5 own ,40CMU 8 own units ,60 CMU
units
Market share ( value) 32.80% 32.94%
Ads Major methods Cricket events and players Celebrities endorse ment

New areas of promotion Environment Health and wellness

IMPORTANT BRANDS PITCHED AGAINST EACH OTHER

Category Britannia Parle Leader


Glucose Tiger Parle -G Parle-G
Marie Marie Gold Parle Marie Marie Gold
Salty snacks 50-50 Krack Jack Krack Jack
Choco chips Good day Hide n seek Good day
Milk Milk bikis Milk sakhti Milk bikis
Bourbon Bourbon Hide n Seek Bourbon
Nice Nice ------ Britannia Nice
Multi grain Nutri choice ----- Nutri choice
Cream Cream Treat Kreams Cream treats
Cookie Good day 20-20 Good day
Segmentation helps in understanding the different group of
customers available in the population and what are characteristics
associated with each of the group.

Britannia uses a mix of demographic & psychographic segmentation


strategy considering the population variables such as age, social
class, education level, income level, marital status, and occupation.

To serve the different customer groups accordingly, it uses


differentiated targeting strategy.

Britannia has positioned itself as a brand caring for the consumers


and serving healthy and delicious processed foods. It uses value-
based positioning strategy.

You might also like