B r i t a n n i aI n d u s t r i e s L t d.

By, Group 6, Section-C

To understand the positioning of Britannia in the consumer’s mind

To identify important factors consumers consider while purchasing products

Marketing mix of Goodday biscuits and do competitor analysis.

 

Objectives

Management Team

ContentsOrganization1

Competitor Analysis2

External Analysis3

Marketing Mix4

Customer Analysis4

Pillar Brands

Tiger

GoodDay

Mariegold

Fifty Fifty

Milk Bikis

Cream Treat

Milestones• 1892

– Started with an investment of Rs. 295/- in Kolkatta• 1918

– Britannia Biscuit Company Ltd. (BBCo) was launched• 1979

– BBCo was rechristened as Britannia Industries Ltd.• 1993

– Wadia group aquired a stake in ABIL, UK & became an equal partner in BIL with Groupe Danone

• 1997– Corporate re-branding exercise gave rise to

philosophy of “Eat Healthy, Think Better”• 1999

– ‘Britannia Khao World Cup Jao’ – A major success! Profit up by 37%

Milestones• 2001

– Britannia becomes one of India’s biggest brands

– Britannia Lagaan Match – Most successful promotional activity of the year

• 2002– Rated one amongst the top 200 small

companies of the world by Forbes Global– India’s 2nd most trusted brand – Economic

times• 2004

– Britannia accorded the status of being a ‘Superbrand’

– Volume crosses 300,000 tonnes• 2005

– Company goes in for major expansion– Uttranchal plant commissioned ahead of

schedule

Company Overview• India’s second largest food company• Sales close to Rs. 20 billion• Consistent annual growth rate of 15-

20% • Sources products from more than 50

factories spread across the country• Key product lines include:

– Biscuits– Bread, Cakes and Rusk

• Product range caters to the whole spectrum from mass market to the premium segment

Financial Analysis

• Gross sales increased to Rs 2317.11 Cr in 2006-07 registering a growth of 28%.

• Profits declined by 33% due to increase in input prices and stiff competition

• Dividends of the order 100-150% were provided for the past 5 years

• Britannia followed the industry growth rate for the past 3-4 years while the profit margin followed a zigzag pattern.

• Costs have increased significantly on the production as well as on selling front.

Financial Analysis• Company has very small debt and its Debt-Equity ratio

is 0.01

• Company is maintaining good debt rating for future requirements

• PBITDM (Profit Before Interest Tax Depreciation Margin) expressed as a percentage of Sales is 6.58

• ROE is at a healthy Rate of 21.14%

• Current ratio has been improving over the years and hence the solvency position of the company

Competitive AnalysisCompany By Value By Volume

Britannia 37% 30.5%

Parle 31.3% 38.4%

ITC 6.3% 6.7%

Surya Food and Agro - 5%

OthersMarket Share by Volume

Britannia31%

Parle38%

ITC7%

Others19%

Surya Food andAgro5%

Industry Overview

• Biscuit industry is the third largest producer and fastest growing industry in FMCG sector

• It grew by 13% in 2006-07• Estimated Value: Rs 5000 Crore• Organized sector: 60% (approx)• Major Segments: Glucose ,Marie, Cream,

Crackers, Milk• Major Brands: Britannia, ITC, Parle,

Priyagold, Dukes etc

Political Political FactorsFactors

Food laws implemented at State & Central levelStringent TAX lawsMany other Govt. Regulations

GDP increasing at 8-9%Increase in the disposable IncomeRupee Appreciation

70% population below 35 yearsGood awareness among the people

Process Innovation, Product InnovationInnovative techniques – JIT, RFID

Economic Economic FactorsFactors

Social Social FactorsFactors

Technology Technology FactorsFactors

PEST Analysis

Access to distribution – difficultEconomies of Scale – difficult

Product DifferentiationCapital RequirementsCost disadvantages

Govt. Policies

•Many Suppliers•Fragmented environment•Switching Costs•Not an important customer•Threat of Forward integration

•Less large volume buyers•Switching Costs•No individual buyer can impact•Less threat of backward Integration

•Fast food•Home made snacks

•Changing consumption patterns

Porter’s 5 forces

Strengths

Brand NameMarket LeadershipProduct InnovationMany Successful brandsDistribution NetworkDanonePromotional ActivitiesCelebrity Endorsements

Weaknesses

Market leaders but still couldn’t prevent competitors to flourishBritannia’s brand perception as biscuits – stumbling block in venturing into new areasCompetition-couldn’t adopt any strategy to defend its positionMay not centre on a single ProductNot able to increase its sales in an expected manner

Opportunities

Per capita consumption in Ind–2.55 Kg, develped countries-12Kg, Enormous ScopeIncreasing Disposable IncomeOpportunities to increase exports turnoverDiversificationBakery Chain

SWOT

Marketing Mix - Product20 percent share of Britannia's biscuit 2/3 share

of the market

CAGR of 35 percent

Gaining acceptance as a family snack

Text

Text

Text

Good Day Products

Good Day Choco Nut Good Day Cashew

Good Day Chocolate Chip

Good Day Pista Badam

Good Day Butter

Marketing Mix - Product

Fig. Four Product Levels for Good Day

Price• On the basis of price, the biscuit market can be

segmented into• Low (less than Rs 40 per kg.) • Medium (Rs. 40-70 per kg.) • High (over Rs.70 per kg.)

• Caters to the upper middle and high end of the market - with a touch of premium to it.

• On the price quality matrix, Good Day biscuits can be classified as following a High-Value strategy.

Promotion• Consumers are becoming more health conscious• "Swasth Khao Tan Man Jagao" (Eat Healthy, Think

Better) campaign directly addressed this new trend• A new logo was created encapsulating the core

essence of Britannia - healthy, nutritious and optimistic• Good Day is positioned as a healthy and nutritious

product• Good Day advocates values that stand for health,

hygiene, family, trust and taste. • Sports and sporting events are a key channel for

promotions. • "Britannia khao, World Cup jao" campaign in 1999 and

2003 was the most recognized sales promotion among all Cricket World Cup-related sales activity.

Place

Customer AnalysisKey Information Areas• Demographic Profile of the consumer

– Age, Sex, Income level, Occupation• Personal Customer characteristics

– When do customer consume biscuits– Type of biscuits consumed– Where do the customer purchase– Purpose of buying (personal consumption, gifting, serving guests)– How much do consumers spend on biscuits

• Factors Affecting the buying decision– What are the various factors that are considered– Their order of preference

Comparative analysis– After the factors have been found out above, the following issues are

addressed.– How does Britannia fare on these attributes– How does the competitors fare on these attributes– The competitor brands taken for the analysis are

• Parle• ITC• Priya Gold (Surya Foods)

Customer Analysis

Methodology

• Preliminary Analysis– Secondary material on: Industry, Category, Competitors and

Consumers• Qualitative Research

– Interviews with few consumers to identify major factors influencing the purchase decision of biscuits

– Interacting with friends and family• Quantitative Research

– Customer survey using questionnaire – Survey done through both face to face interviews as well as

online• Tools Used

– Factor Analysis– Cluster Analysis– Fishbein Analysis. Software used is SPSS.

Data AnalysisRound One Analysis

Fishbein Analysis

Attribute Average Score

Brand 0.596774194

Taste 1.64516129

Package 0.016129032

Variety 0.064516129

Health 0.516129032

Price 0.112903226

Value for Money 0.64516129

Quality 0.806451613

Brand Fishbein Score

Britannia 6.581

Parle 3.161

ITC 2.984

Priya Gold -1.065

Hence from the Fishbein Analysis, it can be inferred that customers attitude towards Britannia is very favorable to the brand.

Factor AnalysisRotated Component Matrixa

Component

1 2 3

Variety 0.89

Package 0.835

Price

Quality 0.892

Brand 0.771

Taste 0.699

Value_for_Money 0.843

Health 0.835

‘Quality’, ‘Brand’ and ‘Taste’ have been combined into the next factor which may be named as the Wholesomeness factor.

‘Value for Money’ and ‘Health’ have figured into the third factor which may be named as Well Being factor.

‘Variety’ and ‘Package’ have been combined into one factor which can be named as Appearance factor. Since the survey was skewed towards the urban population, Price has not factored significantly.

Cluster Analysis• ‘Wholesomeness Factor’

Final Cluster Centers

Cluster

1 2 3

Consuming_period 2 3 2

Biscuit_type 2 5 2

Place_of_Purchase 2 2 2

Biscuits_usage 2 1 2

Willingness_to_spend 2 2 3

Sex 1 2 1

Age 2 2 2

Occupation 1 2 2

Income 2 2 4

Quality 4 3 4

Brand 4 3 4

Taste 5 4 5

Cluster 2 which is characterised by female population also preferred Marie biscuits, and consumed them mostly during tea time.

We also observe that the high income level group found in cluster 3 also scored higher on willingness to spend.

While the inter group variance was minimum for place of purchase (superbazaar), higher variance was observed on factors like consuming period, biscuit type, biscuit usage and other demographical factors.

Similar Cluster analysis done for Well Being Factor and Appearance Factor

BritanniaBritannia

Action Plan

Bakery ChainBakery Chain

Same quality, Same quality, competenciescompetencies

Investing on farmersInvesting on farmersImprove OperationalImprove Operational

efficiencyefficiency

Tap “out of Home” Tap “out of Home” marketmarket

ExportsExports

Dairy products, rusks,Dairy products, rusks,Namkeen/snacksNamkeen/snacks

Reduce dependence Reduce dependence On Biscuits - diversifyOn Biscuits - diversify

Thank You,Have a Good Day