AD-Times

2021-22
Company Name: Britannia
FMCG Industry – Bird’s Eye View
•FMCG sector is the 4th largest sector in India with household and personal care accounting for 50 percent of
sales.
•The urban segment (accounts for a revenue share of around 55 per cent) is the largest contributor to the
overall revenue generated by the FMCG sector in India.
•Semi-urban and rural segments are growing at a rapid pace and FMCG products account for 50 per cent of
the total rural spending.
•The major FMCG companies in India are ITC, HUL, Dabur, Nestle, Parle Agro, etc

Source - https://www.ibef.org/industry/fmcg.aspx
Britannia– Introduction
• Britannia Industries is one of India’s leading food companies with a 100 year legacy and annual
revenues in excess of Rs. 12,000 Cr with presence in more than 60 countries across the globe.
• Britannia offers a wide variety of brands like Good Day, Tiger, Nutri-Choice, Milk Bikis and Marie Gold
which are household names in India.
• Britannia goods are sold in almost 5 million retail locations across India, reaching more than half of all
Indian households.
• The company’s Dairy business contributes close to 5% of revenue, with Britannia dairy products directly
reaching 100,000 outlets.
• The strategic expansion plan of the company is founded on the idea of ‘One new market each year.'
Throughout the next years, it aims to develop through local businesses in Africa and Southeast Asia.
• Britannia prides itself on adhering to its motto, "Eat Healthy, Think Better." Britannia became India's
first Zero Trans Fat Company by removing over 8500 tonnes of Trans Fats from goods.
• In 2009, the business established the Britannia Nutrition Foundation to alleviate malnutrition among
underprivileged children and mothers through public-private partnerships.

Source: http://britannia.co.in/about-us/overview
Britannia – SWOT Analysis
Strengths: Weakness:
• Britannia has been in industry for around 120 years • Lower market share in Dairy segment
now being one of the India’s most trusted brand • Heavy expenditure on advertising and marketing since
• Britannia offers wide range of bakery products like similar products are being offered by many companies
biscuits, rusks, cakes and dairy products like milk,
butter, cheese, etc.
• Britannia has strong distribution network reaching
even the remotest areas
• Marketing and advertising efficiency
• Innovative products for health conscious people like
oats and porridge, Britannia Nutri Choice biscuits
for diabetes patients, Vita Marie Gold, etc.

Opportunities:
• Expansion in other countries
• Britannia can benefit from expanding its product
line since it has loyal customers
• People's purchasing power in India is increasing
Threats:
• Lower-cost rivals may have an impact on Britannia's
market share
• Sales and income can be affected by inflation
• Rise in cost of raw materials
• Local dairies and bakers can cause business losses

Source: https://www.mbaskool.com/brandguide/food-and-beverages/3226-britannia-industries.html
 Brintannia– Marketing Mix
BIL offer a wide variety of edible goods. Their main products include bread, biscuits, cakes, rusk
and dairy products. They have continued to release a steady flow of products over the years, for
Product example, fruit bread, or the dairy product Half/Half. 90% of their revenue, however, comes from
biscuit manufacturing

For distribution, Britannia follows the FMCG channel of distribution wherein it appoints distributors
Place at select locations. These distributors are then responsible for handling dealers and retail showrooms.
Modern trade channels like Big bazaar and D mart as well as others are handled directly by the
company.

The company uses most of the usual methods of advertising, including billboards, magazines, tv ads and point
of purchase advertising. Britannia has high advertising spends for products like Good day and Bourbon which
Promotion are almost stars for the Britannia brand. However, the investment for marketing of Dairy products is minimal
because a lot of expenses have to be done for the distribution of the products.

Competitive pricing is the sole pricing strategy which Britannia uses.hus, Britannia products are much
better in quality and are good in price as well. The pricing strategy along with distribution has been so
Price strong, that people buy these products even on Railway stations and while traveling , instead of buying
local snacks.

Source - https://www.marketing91.com/marketing-mix-britannia/
 Britannia –BCG Matrix
BCG Matrix Product Portfolio

Source -
https://www.cfainstitute.org/-/media/regional/arx/post-pdf/2020/02/20/india-indian-institute-of-managem
ent-tiruchirapalli.ashx
 Brand Communication
Some of the latest Marketing campaigns as launched by Britannia are as
follows:
• Good Day’s major part of the communication over the years has always
focussed on its philosophy of ‘spreading smiles’ which is reflected right
in the Britannia Good Day advertisng journey.

• Britannia Good Day #KhushiyonKiZiddKaro campaign delivered a

timely message, an ode to the human spirit, and a rally for hope.

• ‘Har Khushi ko Banaye Khaas’ campaign from Good Day Cashew

• Company urging consumers to participate in the

#LearnFromHome contest and win prizes

Source - https://www.socialsamosa.com/2021/02/brand-saga-britannia-good-day-advertising-journey/
 Brand News
• Britannia Industries, FMCG major, plans to invest around Rs 700 crore (US$ 99.30 million) over
the next two-and-half years for its new facilities.

• Although, the rural demand remained stable during the coronavirus outbreak and the company will
focus more on its core products, its managing director Mr. Varun Berry said. Mr. Berry added,
"The company is looking at some capex (capital expenditure) of more than Rs 700 crore (US$
99.30 million) over the next two-and- half years.“

• The company plans to prioritize its core products as the future is uncertain for the next six to nine
months. The focus will be on less on innovation, Mr. Berry said. He added that the rural demand
was not affected by the coronavirus pandemic and it will continue to grow at a higher pace than
urban.

• The COVID-19 crisis will leave a permanent impact on the consumer behavior, and home
consumption will increase. The cost has been cut by reducing working capital as the inventory
levels were low, he added.

• Regarding commodity prices, Mr. Berry said there was deflation in flour and milk products,
while sugar saw a three per cent price rise.

Source: https://www.ibef.org/news/britannia-plans-rs-700-crore-capex-bullish-on-rural-demand
Good Luck!