Post on 09-Apr-2018
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BUSINESS ENVIORNMENT PROJECT
2010-2011
Name: abc
Class: 4 A, Roll no:29
Project on BRITANIA BISCUIT
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Index
Meaning of Business Enviornment What is enviornment analysis
Need & importnace of business analysis
Acknowldement
Company Overview
Business Profile
Financial Performance
History of Britania Biscuits
Good day story Reasons for going global
Swot analysis
Marketing Strategy
PEST Recommendations
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Meaning of Business Environment
Business environment is an aggregate of all the conditions, events and
influences that surround and affect it. It is broad and ever changing as
its separate elements interact with one another. It consists of internal
and external factors that may influence the nature and scope of
business activities. It can be described as favourable or unfavourable,
liberal or conservative and progressive or regressive.
What is Environmental analysis?
Environmental analysis is the study of the business environment like
political, legal, cultural, economic, technological, etc so that the
company can have a competitive edge by balancing the companys
resources and objectives with the external environment. The study of
business environment or environmental impact analysis within the
country is absolutely essential in the case of all business enterprises.
An analysis of business environment is necessary for a clear
understanding of the environment and the changes taking place in it.
It also helps in matching the strengths and weaknesses of firm with
the opportunities and threats operating in the environment. Thus
environmental analysis helps a firm to achieve its long term objectives
like survival, growth and stability of an organization. Environmental
analysis has three basic goals:
First the analysis should provide an understanding of current and
potential changes taking place in the task environment. It is important
that one must be aware of the existing environment.
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Secondly, environmental analysis should provide inputs for strategic
decision-making. Mere collection of data is not enough. The
information collected must be used for strategic decision making.
Thirdly, environmental analysis should facilitate and foster strategic
thinking in organizations- typically a rich source of ideas and
understanding of the context within which a firm operates. It should
challenge the current wisdom by bringing fresh viewpoints into the
organizations.
Need and importance of B.E analysis
1) Knowledge of internal environment:
It is very important for the business to understand its internal
environment such as business policies, objectives of business
enterprise, its resources, organization structure and authority
responsibility relationship which is provided by environmental
analysis.
2) It provides information about prospects and problems:
Various factors surrounding the business keeps on changing due
to technological developments, consumers income, habits and
socio economic changes. These changes open up new
opportunities and also create problems for the present and newentrepreneurs. A study of environment can help to identify new
opportunities and minimize the problems.
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3) It studies dynamic behavior of the environment: Various factors
surrounding business such as economic, social, political, etc keep
changing. These changes have a profound effect on the
functioning of business enterprises. An analysis of business
environment helps to understand the dynamism of the
environment and suggest means to adapt and adjust to them.
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ACKNOWLEDGEMENT
A work is never a work of an individual. I owe a sense of gratitude to
the intelligence and co-operation of those people who had been so
easy to let me understand what i needed from time to time for
completion of this exclusive project.
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We want to express our gratitude towards Mrs .Ashwini Kadam,Business Environment Faculty, DY Patil for giving me an opportunity todo this project.
Last but not the least, I would like to forward our gratitude to my
friends & who always endured me and stood by me and without whom
i could not have envisaged the completion of my project.
Company Overview
The story of one of India's favourite brands reads almost like a fairy
tale. Once upon a time, in 1892 to be precise, a biscuit company was
started in a nondescript house in Calcutta (now Kolkata) with an initial
investment of Rs. 295. The company we all know as Britannia today.
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world's second largest Dairy Company, and Britannia New Zealand
Foods Pvt. Ltd. was born. In recognition of its vision and accelerating
graph, Forbes Global rated Britannia 'One amongst the Top 200 Small
Companies of the World', and The Economic Times pegged Britannia
India's 2nd Most Trusted Brand.
Today, more than a century after those tentative first steps,
Britannia's fairy tale is not only going strong but blazing new
standards, and that miniscule initial investment has grown by leaps
and bounds to crores of rupees in wealth for Britannia's shareholders.
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. Having succeeded in garnering the
trust of almost one-third of India's one billion population and a strong
management at the helm means Britannia will continue to dream big
on its path of innovation and quality. And millions of consumers will
savour the results, happily ever after.
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Business Profile
Britannia manufactures diary products from its plants located inKolkata, Delhi, Chennai, Mumbai, and Rudrapur. The company has atotal installed capacity of 163,500 MT of biscuits and proteinfoodstuffs. Key brands include Tiger, Good Day, Milk Bikis, Treat, and
Marie. In FY09 the company launched new brands; 50:50 Chutkule,Treat Fruit, Rollz, NutriChoice Digestive, and renovated Milk Bikis,Chota Tiger, and Chocolate Cream in the Tiger range. Further in 2008,the company launched iron fortified Tiger' biscuits,'Good Day ClassicCookies', Low Fat Dahi and renovated 'MarieGold'.
In 2009, biscuits and high-protein food achieved a y-o-y productionincrease of 23% and 26%, respectively. During FY09, the bread, cake,and rusk business grew by 54% y-o-y. Britannia exports its productsto countries in the Middle East and to USA, Ghana, and Singapore. It
has a JV in New Zealand to undertake marketing of dairy products. In2009, Britannia formed a JV with Khimji Ramdas Group to set up twobakery product companies in the Middle East. The company acquired70% stake in Strategic Foods International LLC in Dubai and in Oman-based Al Sallan Food Industries Co SAOG. During 20093, Britanniaformed a strategic alliance with a Bangalore-based company, DailyBread. This alliance will provide products under the brands Daily Breadand Delucas.
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Registered Office:5/1/A Hungerford Street,
Kolkata - 700 017
West Bengal
Ph: 033 - 2287 0505 / 2287 2439 / 2287 2057
Fax: 033 - 2287 2501
Financial Performance
The year witnessed unprecedented commodity inflation, particularly in
sugar, wheat and milk products, in the latter half of the year, coupled
with a fiercely competitive environment. This restrained your
Companys ability to correct selling prices and had a high adverse
impact on margins and profitability. Consequently, whilst your
company added Rs 2817 MM to gross sales, Profit from Operations
declined by Rs 778 MM, excluding provisions for certain one-off items
aggregating Rs 258 MM for certain disputes relating to a long term
lease, excise duty demand and obligation arising from a past
acquisition. Net cash flow from operating activities was Rs 2353 MM,
achieved by a disciplined approach to managing working capital.
Exceptional items for the year include Rs 329 MM towards amortization
of VRS costs and provision of Rs 200 MM for losses arising from Sri
Lanka operations andclosure. Earnings Per Share was Rs 48.77. The
tables below show trends in performance across key parameters:
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History of Britania Biscuits
The history of biscuits can be traced back to a recipe created by the
Roman chef Apicius, in which "a thick paste of fine wheat flour was
boiled and spread out on a plate. When it had dried and hardened it
was cut up and then fried until crisp, then served with honey and
pepper."
The word 'Biscuit' is derived from the Latin words 'Bis' (meaning
'twice') and 'Coctus' (meaning cooked or baked). The word 'Biscotti' is
also the generic term for cookies in Italian. Back then, biscuits were
unleavened, hard and thin wafers which, because of their low water
content, were ideal food to store.
As people started to explore the globe, biscuits became the ideal
travelling food since they stayed fresh for long periods. The seafaring
age, thus, witnessed the boom of biscuits when these were sealed in
airtight containers to last for months at a time. Hard track biscuits
(earliest version of the biscotti and present-day crackers) were part of
the staple diet of English and American sailors for many centuries.
The English, Scotch and Dutch immigrants originally brought the
first cookies to the United States and they were called teacakes. They
were often flavoured with nothing more than the finest butter,
sometimes with the addition of a few drops of rose water. Cookies in
America were also called by such names as "jumbles", "plunkets" and
"cry babies".
Interestingly, as time has passed and despite more varieties
becoming available, the essential ingredients of biscuits haven't
changed - like 'soft' wheat flour (which contains less protein than the
flour used to bake bread) sugar, and fats, such as butter and oil.
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Today, though they are known by different names the world over,
people agree on one thing - nothing beats the biscuit!
Some interesting facts on the origin of otherforms of biscuits
The recipe for oval shaped cookies (that are also known as boudoir
biscuits, sponge biscuits, sponge fingers, Naples biscuits and Savoy
biscuits) has changed little in 900 years and dates back to the house
of Savoy in the 11th century France. Peter the Great of Russia seems
to have enjoyed an oval-shaped cookie called "lady fingers" when
visiting Louis XV of France.
The macaroon - a small round cookie with crisp crust and a soft
interior - seems to have originated in an Italian monastery in 1792
during the French Revolution.
SPRING-uhr-lee, have been traditional Christmas cookies in Austria
and Bavaria for centuries. They are made from a simple egg, flour and
sugar dough and are usually rectangular in shape. These cookies are
made with a leavening agent called ammonium carbonate and baking
ammonia.
The inspiration for fortune cookies dates back to the 12th and 13th
Centuries, when Chinese soldiers slipped rice paper messages into
moon cakes to help co-ordinate their defence against Mongolian
invaders.
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Good day Story
Britannia Good Day was launched in 1986 in two delectable avatars -Good Day Cashew and Butter. Over the years, new variants wereintroduced - Good Day Pista Badam in 1989, Good Day Chocochips in2000 and Good Day Choconut in 2004.
This rich cookie enjoys a fan following of consumers across allages, loyal to the brand promise of a great taste, evident from thevisibly abundant ingredients. Good Day is among the fastest growingbrands in Britannia's portfolio and it has been the leader in the cookiescategory ever since its launch. The brand is synonymous witheveryday treats that infuse happiness into people's lives.
After two decades of magnificent success; it was time to give thenation yet another reason to have a good day. Abundance, goodness,indulgence and now unrestrained joy - that is the message of this new
campaign.The new TT ad is the uncontrollable expression of the ticket collector'shappiness and joy that is stimulated by consumption of the cookie,that spreads cheer amongst the people around him creating anatmosphere of shared joy that's unorchestrated and straight from theheart. The celebration was taken to the IPL as Good day cheered alongwith a million cricket fans in the stadiums, each screaming andproclaiming "Ho gaya re Good Day". The dazzling brilliance of thisendeavour, the contagious rhythm needs to be lived and spreadthrough the nation, making 'Iska toh ho Gaya Re Good Day' a part ofthe common lingo and a way of life.Good Day truly believes laughter and happiness are infectious, ittranscends race, caste creed unifying humanity in an inclusiveemotion.
The brand perseveres to infuse cheer, hearten the nation and
enliven lives. With its rightful place on the front page ofThe Times of
India, Good Day gifts the nation a priceless treasure, that of
spreading JOY!
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Products:
Competitiors in India
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Other players
HLL,
Bisk Farm,
Anmol,
Elite,
Cremica,
Dukes,
Anupam,
Craze,
Reasons for going global?
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The Company witnessed all round growth in key categories withBiscuits recording sales of Rs. 23,299 Mn. Bread, Cake and Ruskbusiness crossed the Rs. 2,700 Mn mark during 2007-08. This
business has doubled in two years.
In an intensely competitive biscuit environment, all Power Brands ofthe Company recorded double digit growth, with Tiger and Good Daygrowing in excess of 20%. The Companys innovation forays havesuccessfully addressed new benefit clusters and NutriChoice Digestivehas claimed its position in the health and vitality space. The Companycontinues to maintain its leadership edge in 6 out of 7 key productsegments, the only exception being Glucose.
The Company introduced several new and renovated offerings in Tiger,Good Day, Treat and MarieGold. The health and nutrition platform wasbuttressed by Tiger Banana with iron-zor, fortified Milk Bikis,renovated MarieGold and Nutrichoice Digestive. To tap the moreindulgent consumers, your Company launched Good Day ClassicCookies, while continuing to roll out individual consumption packs atthe highly affordable Rs. 5 price point.
The Bread, Cake and Rusk portfolio was strengthened with thesuccessful relaunch of Breads, fortified with vitamins and minerals,positioning them firmly as the healthy start to your day. This
innovation combined with relevant consumer activation in key marketshas seen a 30%+ growth in the Bread, Cake and Rusk business.
Britania industries ltd, Indias leading biscuit co, expects to start workon its unit in Japan.Even as Britania is expanding capacities, it is concentrating on costminimization,Which continues to be a key parameter for the manufacturing systemand in this regard, the appropriate exploitation of latest technologieslike energy efficient ovens, on line mixing have been put in place infew relevant units. This drive will continue in the forthcoming years toleverage technology as a competitive edge.
What is SWOT analysis??
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SWOT Analysis Sample A scan of the internal and external
environment is an important part of the strategic planning process.
Environmental factors internal to the firm usually can be classified as ..
Content Inside: SWOT Analysis Sample A scan of the internal
and external environment is an important part of the strategic
planning process. Environmental factors internal to the firm usually
can be classified as strengths ( S ) or weaknesses ( W ), and those
external to the firm can be classified as opportunities ( O ) or threats
( T ). Such an analysis of the strategic environment is referred to as a
SWOT analysis .
Strength
1. Britania Brand
2. Diversified Product Range3. Extensive Distribution Network4. (Availability in mostremote villages)
5. Low & mid range price segment6. catering to mass7. Better understanding of consumer psyche.
Weakness
1. Dependance on retailers and grocery stores for displaying diversifiedBritania products on shelf to induce impulsive buying
2. Dependance on Britania3. Lackness of rural areas
Threats
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1. Hike in the cost of production due to hike in the prices of raw materialsand increase in transportation plus distribution cost due to high wedges andoil prices2. Entry of ITC (having very good distribution channels) in to biscuitindustry
Opportunities
Indian Biscuit Manufacturers Association (IBMA) estimates annualgrowth of around 20% in next couple of years.The $220 Billion food industry is expected to grow to $300 Billion by2015.
Per capita consumption of Biscuits in the country t he country isonly 1.8 kg as compared to 2.5 kg to 5.5 kg in Sout h East Asiancountries and European countries, and 7.5 kg in USA.Growing demand of Sugar free cream crackers & diet biscuitsOpportunity to further grown in Urban & Rural market; Currentpenetration levels are
Urban Market : 75% to 85%Rural Market: 50% to 65%Grow in southern and east India
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Marketing Strategies
Britania price Mix
Britania has adopted the Market Penetration strategy i.e Low pricealong with capuring of a Japan market . The biscuit industry is beenexperiencing steady growth of 14-15% annually.
Also they focus on providing good quality products at the sametime, which means it uses the value pricing method.Profit margin distributors is 4% and for retailers is 10-12%
Britania place Mix
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The extensive distribution network, built over the years,is a major strength forBritania products.
Britania has got nearly 150 wholesalers, catering to 100000 retil outlates inJapan, A 200 strong dedicated field force services its huge wholesalers &retailers network.
Additionally got there are 20 depots and C&F agents supplying goods tothe wide distribution network.
Britania Pramotion Mix
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Advertising It was advertising through press ads, schools, online websites,and brochures in Japanese (official), Ainu, Korean. The communicationspoke about the basic benefits of energy and nutrition.
Britania has advertised the use of Japanes celebritySales Pramotion: Britania have planning to hold day fairs at branded venueswhere games and fun events are organzied for the loacl people, whereBritania products are giveway prizes.Public relations: Britania have planning something to do for enhancing publicrelations:Britania sponsored the teleserial of the Japanese superhero, the great japhero, that going to be become a huge success.
PEST
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Political:TaxesProduction and distribution licenses
Economical:Increase in per capita incomeIndias GDP growing at an average 8 %
Social:Increase in per capita consumptionIndias 2nd largest producer of biscuitAgeLifestyle
Perception
Technological:InnovationR & D
Recommendations
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To get benefit s of growing biscuit industry, I have following2 recommendations to Britania
1] a. Promote Parle brand through schemes such as Britania GraminSwastha Yojana (a net work of ambulance van visiting rural areasgiving basic medical treatments educating people on nutrition deficiencyproblems and promoting Parle nutritious products)
b. Promote Parle brand through T. V. shows such as Britania Sakhi(Britania - Friend of Women ).The weekly T.V show will cater to healthissues of women and children and will explain long term benefit s of healthydiet )
Results Expected 1.Improved sales through Top of mind recall.2.Reduced competition for visible shelf space in small groceryand retail stores.3. Communicating Britania value of Nutrition Product4. Brand Loyalty
2] Advertise products segment wise as followsa. Nutritious/Glucose biscuits
Advertisement by doctors/ dieticians to explain t he benefit s to heath
conscious consumersAdvertisement by cricketers (Cricket is a very popular game in India)to attract youth
b. Cream biscuitsTo be endorsed by bollywood (film) starts
Result s expected 1. Increased penetration in rural,2. Southern and eastern market.
3. Attracting health & diet conscious people.