SWOT ANALYSIS OF BRITANNIA

STRENGTHS WEAKNESS

 Fulfill one of our basic requirements  Decrease nutritional value

among Air, Water, Food and Shelter.
 Widely accepted in all generations.
 Eaily available in various forms.
 Provide good instant remedy for
hunger in the form of readymade foods.
 Preserves the non seasonal food and
makes it available all throughout the year.
 Increases the cost of food product
 Industry and technology requires high
investment
 Regular usage of processed food can
cause alteration in health

OPPORTUNITIES THREATS

 Increases economy of India  Many companies are result oriented

 Generate employment opportunity  Increse in Pollution
 Good quality of Goods  Sometimes provide poor quality
 Provide competition to Foreign products for more profits
companies  Lack of Technology
 Improve living Standard  Unable to utilize all available resources
 Provide goods in India for cheaper prices efficiently
 Inflow of foreign reserve and funds for
the government ( Taxes )

STRENGTHS
• Britannia is the industry leader and one of the fastest-growing FMCG firms in the last two
years.
• Despite 20- 25% inflation in key commodities over the last two years, it increased its net
profit by 77.5 percent and its operating margin by 307 basis points to 7.5 percent in 2007-08.
• In a survey conducted by AC Nielsen ORG-Marg, consumers voted brand 'Britannia' among
the 'Top 10' most trusted brands across categories for the fifth consecutive year.
• In 2008, it was ranked second most trusted food brand, and top in 2007.
• In 2008, it was ranked as the sixth most trustworthy brand in all categories.
• It had a successful year in 2007-08, with sales up 17.5 percent on top of 27.5 percent the
previous year, bringing in Rs 800 crore in additional revenue (total revenue for 2007-08 was
Rs 2,617 crore).
• It's the only biscuit company that doesn't use trans-fat in any of its recipes. Micronutrient-
fortified products now account for about half of the company's bakery assortment.
• It is widely accepted and available, and it is a non-seasonal food that is in high demand all
year.
• In the previous five years, it has more than doubled its advertising expenditure.
• Aim to focus more on trade marketing in the future.
WEAKNESS
• Britannia Industries saw a drop in sales momentum for the third quarter in a row (2005-06),
as the company felt the heat of increasing competition.
• Concentrate solely on the high-end market.
• Despite dealing with dairy goods, Britannia is only renowned for its biscuits.
• Biscuits were once thought to be a sick-diet man's because of their processed nature.
OPPORTUNITY
• Demand for a health-free product as people become more health-conscious
• Improved standard of living
• Increased disposable money
• The rural sector consumes about 55% of bread products.
• India is the third largest manufacturer of biscuits after the United States and China; per
capita biscuit consumption in our country is just 2.1 kg, compared to more than 10 kg in the
United States, the United Kingdom, and other Western European countries.

THREATS
• The Wadias of Bombay Dyeing Group and Groupe Danone of France have split up, with
Danone planning to utilise Britannia Industries Ltd's "Tiger" biscuit brand in numerous
countries.
• Competitors developing similar products at a cheaper price, as this commodity is extremely
price sensitive.
• As an agro-based industry, the rapid rise in the cost of major inputs such as wheat flour,
sugar, oil, packaging material, gasoline, power, and transportation has harmed the industry's
viability.
Why Biscuits deserve to be treated equally to tea, coffee, and other essential food goods,
which are subject to 4% VAT rather than the 12.5 percent applicable to luxuries.