PROJECT REPORT

ON

MARKETING AND DISTRIBUTION

STRATEGIES OF BRITANNIA

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 ACKNOWLEDGEMENT

It is a pleasure to have the opportunity to extend my heartiest thanks to

everybody who helped me through the successful completion of my project
report, which is a great source of learning and experience for me.

I would like to thank __________________, for cheerfully and generously

giving his time, advice and efforts to completing my project report.

I feel highly privileged to express my indebtedness to my teachers, staff

members and friends for their valuable support guidance in carrying out this
study.

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 CONTENTS

ABSTRACT 1

INTRODUCTION 2

COMPANY PROFILE 12

LITERATURE REVIEW 28

RESEARCH METHODOLOGY 42

DATA ANALYSIS AND INTERPRETATION 44

FINDINGS 54

CONCLUSION 61

SUGGESTIONS 64

BIBLIOGRAPHY 65

ANNEXURE – QUESTIONNAIRE 66

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 ABSTRACT

The basic aim of the study is examine marketing and distribution strategies of Britannia in
Indian FMCG market. Every organization needs to have clear marketing objectives and the
major route to achieving organizational goals will depend on strategy. Developing a
competitive strategy involves establishing clear aims and objectives around which the
framework for a policy is created. Having established its strategy, an organization can then
work out its day-to-day tools and tactics to meet the objectives. The success of any business
entity solely depends on how effectively it utilizes its optimum resources. The company should
always be ready to make necessary changes according to the requirements, in order to attract
more customers so as to maintain a substantial growth in the market.
The study has been discussed and explained to reveal the significance of its distribution
strategies along with the strength and weaknesses of the organization. Secondary data is the
most of important for our research and I contributed in the area such as group or segment those
types of potential customers that are most likely to benefit from their product line. It also
includes business principles of the organization.
As present business scenario is totally about competition and customer satisfaction has become
the prime concern of each and every kind of industry. So it’s very essential to know what
customers want from an organization. Even today Companies are increasingly becoming
customer focused. If companies are able to know what are their customers thinking and what
their needs are, then it would be easy to make strategy accordingly to make a retail business
successful this research is very helpful. On a whole it was a good learning experience, as one
is able to understand marketing and distribution dynamics not with the help of books but with
the help of real learning – in the real world.

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 MARKETING STRATEIES OF BRITANNIA

MARKET PROFILE OF THE ORGANIZATION

Britannia core businesses constitute of Bakery and Dairy products. Bakery products account
for 90% of the revenues and include Biscuits, Bread and Cake & Rusk. Dairy products
contribute to 10% of Britannia’s annual turnover of Rs13.38bn. Throughout its existence,
Britannia has operated on the principles of providing products to the consumers that are healthy
and tasty. This is brought about by the use of high quality ingredients with a strong focus on
‘naturalness’ and modern manufacturing practices. The company today has a wide range of
bakery products in the biscuit, bread and cake segment. It has trimmed down its wide product
portfolio by reducing the products from 35 to around 25 and began to focus on value-added
instead of low-margin products.

BIL (Britannia Industries Ltd.)

Bakery Products Dairy Products

(90% revenue contribution) (10% revenue
contribution)

BIL (Britannia Industries Ltd.) has decided to focus on seven core brands in the biscuits and
bakery category. The brands included Good Day, Tiger, 50-50, Snax, and the Cream Treat
brands, among others.

With the launch of Tiger brand, it has taken a plunge in the low-end category, taking
competition head on with Parle, which is the leader in this segment. The company has also
diversified within dairy and bakery products to enter the butter, cheese and ghee markets. The
portfolio was expanded with the launch of butter, pure flavored milk in tetra packs and UHT
milk.

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 OBJECTIVES OF THE STUDY

• To perform a detailed study and research on the marketing functions and strategies
used by Britannia for maximizing the sales and loyalty among the customers and the
way they deal with there customers
• To examine marketing mix of Britannia
• To study the distribution network in getting sales enhanced of Britannia Industries
• To analyze the effectiveness of distribution management of Britannia

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 RESEARCH METHODOLOGY

Research Design

Due to the objectives of the research it is more qualitative and exploratory in nature. In
order to have more comprehensive definition and to become more familiar with the
problem. An extensive literature survey will be conducted to collect secondary data for the
location of different variable, probable contemporary issues and clarity of concepts.

This study seeks to identify the present scenario of the distribution strategies being
adopted by Britannia in Indian FMCG sector. For identification of key issues out of
possible variables related to the various dimensions of research descriptive research design
also opted for.

DATA COLLECTION

For the purpose of this study, a combination of secondary and primary data will be used.
The secondary data offered an in-depth knowledge of the concept of 'Distribution
Management"' and provided a base for conducting primary research.

Primary Data: Primary data is one which is collected by the investigator himself for the
purpose of a specific inquiry or study. Such data is original in character and is generated
by surveys conducted in individual or research institutions. The aim of the primary
research in the present study on distribution management in cross section of Britannia.
Collection of data from Britannia was done through 'Structured Interviews' through mail”.

Secondary Data - The secondary data can be obtained from journals, reports, FMCG trade
journals, business magazines, research organizations, articles from websites and so on.

The Data will also be collected from case study analysis of Britannia. Case study method
basically a qualitative research analysis pertaining to an organization. Normally case

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 study method of research focuses on organization or at best two or three homogenous or
competing organization unless it is cross organizational study to authenticate any
management practices or approve or disapprove any hypothesis framed by a researcher to
establish certain theories”.

SAMPLING

The basic idea of sampling is that by selecting some of the elements in a population. A
population element is subject on which the measurement is being taken. It is the unit of the
study. While an element may be a person, it can just as easily by something else. Types of
sampling design used in this study are distribution random sampling. The unrestricted simple
random sample is the simplest form of probability sampling.

Sampling Technique - Interview of company representatives

Sampling Instrument - Structured Questionnaire

Sampling Area - Delhi and NCR

Tools - Use of percentages and bar graphs for analysis

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FINDINGS

EFFECTIVENESS OF DISTRIBUTION CHANNEL STRUCTURE

COMPANY

C & F AGENTS

DISTRIBUTORS

WHOLESELLERS

RETAILERS
DIRECT
SELLING

END CONSUMERS

Britannia Industries Limited- Britannia industries Limited channel structures consist of C &
F Agents, Whole sellers, Distributors, mass retailers, rural and modern trade.

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PERFORMANCE APPRAISAL SYSTEM

The performance appraisal system in Britannia Industries Limited is done by the seniors of
the department. They keep supervision on the track performance of the employees and
according to the targets they have achieved on quarterly basis, the employees are given
appraisal accordingly. The main method of performance appraisal that has been adopted by
Britannia Industry Limited is 360 degree appraisal
method…………………………………………………………………………………………
…………………….

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MERCHANDISING AND PRODUCT DISPLAY

Apart from the area territory sales Incharge, company has hired an agency named ADICO who
provides their sales team an adequate POP for display of products in the stores. The agency
looks after the damage merchandise and proper display of Britannia products.

RETAILERS

• Regardless of the fact of their best distribution method, majorly biscuits are out of
stock from the company side. Earlier lot of cash discounts were provided but now a
day’s nothing is there
• Due to the fact of having vast product line, it’s very difficult for BRITANNIA to
control its market
• Britannia replacement policy is far better than its competitors
• Britannia offers a vast variety of products therefore a customer does not go empty
handed from the shop
• In festive season, BRITANNIA is offering great gifts to its customers which are now
a useful way of greeting someone. Though BRITANNIA has realized it later but the
impact is huge.
• Distribution is good, especially the bread as a perishable commodity it is ought to get
spoiled, and BRITANNIA takes it back on the fourth day.

DISTRIBUTOR

Generally the distributor has to keep the stock for more than a week, usually they get the
requirement well in advance from the c&f agents. They are having no such problem in
distribution to the wholesellers. The person goes to each shop in the locality on every Tuesday
and takes the order and goods are delivered within 48 hours. The invoice is given to the retailer
and cash is collected with the next order and dispatching of goods is done between 11am to
4pm.

SCHEMES

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Trade Load

1 CARDBOARD=216PCS.

Tiger 45grams - 24+1(total 9 pcs. are free on 1 cardboard)

Tiger cream - Rs. 3 off on 1 bundle ,Rs.15 off on 1 cardboard.

Tiger flavours -Rs.16.50 off on 1 cardboard.

TIGER 90 Grams:- 25 pcs - Rs 6.00 discount

50 pcs - Rs 8.50 discount

100 pcs-Rs 11.00 discount

MARIEGOLD :- 25 pcs - 0.05% discount

50 pcs - 1.00% discount

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 CONCLUSION

On the basis of the study done and the before said analysis we may conclude that the
distribution management has emerged from the back-benches of the marketing discipline and
is all set to become a specialized area of expertise, critical to the success of any brand. Till date
the distribution strategies of Britannia were evolutionary, but from now onwards the strategies
would be revolutionary and in this regard Britannia is leading from the front.

In recent years the profile of distributors has been changing. No longer are they old style
traders, sitting in dusty godowns and keeping track
of……………………………………………………………………………………….

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 SUGGESTIONS

Britannia should realize that overall marketing performance ultimately affects their own
individual performance. Furthermore, distribution channels are only as strong as the weakest
links between organizations in the chain. The linkages between the supply chain
manufacturing organization and suppliers may be functioning well. However, if the linkages
between the manufacturing organization and the retailing organizations are not functioning at
a desired level, then the supply chain is not performing well. The critical linkage for the
ultimate success of the supply chain is sales to the end customer. The critical linkage for the
ultimate success of the supply chain is not performing well.

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 BIBLIOGRAPHY

Gattorna John, handbook of Logistics And Distribution Management, Jaico publishing house,
2011

Vikram Shende (2014), Analysis of Research in Consumer Behavior of Automobile Passenger

Car Customer, International Journal of Scientific and Research Publications, Volume 4, Issue
2
Högström,C., Gustafsson, A., Tronvol, B. (2015). “Strategic brand management: Archetypes
for managing brands”, Journal of Business Research, 68: 391-404.
Saxena (2014), Marketing Management, Pearson Education

Donald S. Tull and Del.I. Hawkins, Marketing research – Measurement and method (7th
Edition), 2015

Still, Cundiff, Govoni, Sales Management – Decisions, Strategies and Cases (7th Edition), 2012

Business today, 12th May issue, 2013

Business world, 18th February issue, 2014

http://www.domain-b.com

http://www.expressindia.com

www.expresscomputeronline

www.aberdeen.com

www.agencyfaqs.com

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