Final 32 Report

8/2/2019 Final 32 Report

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MAYANK THUKRAL (08P089)

SUDHANSHU GARG (08P108)

SUPRABH SAMSUKH (08P110)

Britannia Industries LimitedA Report on Tiger Biscuits


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1. Executive Summary

The FMCG market is set to reach to US$ 33.4 billion in 2015. Penetration level as

well as per capita consumption in most product categories like jams, toothpaste, skin

care, hair wash etc in India is low indicating the untapped market potential.

Burgeoning Indian population, particularly the middle class and the rural segments,

presents an opportunity to makers of branded products to convert consumers to

branded products. Growth is also likely to come from consumer 'upgrading' in the

matured product categories. With 200 million people expected to shift to processed

and packaged food by 2010, India needs around US$ 28 billion of investment in thefood-processing industry.

India is one of the largest emerging markets, with a population of over one billion.

India is one of the largest economies in the world in terms of purchasing power and

has a strong middle class base of 300 million.

Around 70 per cent of the total households in India (188 million) reside in the ruralareas. The total number of rural households is expected to rise to 153 million in

2009-10. This presents the largest potential market in the world. With growing

incomes at both the rural and the urban level, the market potential is expected to

expand further.

An average Indian spends around 40 per cent of his income on grocery and 8 per

cent on personal care products. The large share of fast moving consumer goods

(FMCG) in total individual spending along with the large population base is another

factor that makes India one of the largest FMCG markets.

In India per capita consumption of biscuits is estimated at a low 1.5 kg, reflecting the

huge potential for growth of the industry. Over 900 million Indians buy and eat

biscuits with varying frequency in any year. The penetration of branded product in

this segment is quite significant, and is valued at Rs 2,500-3,000 crore. None of the

other wheat-based segments is as developed as the biscuits industry. The biscuit

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segment has developed with large markets of mass consumption covering over 90%

of the overall potential market. The Indian biscuits' market is estimated to be 1.1

million tonnes per annum and valued at over Rs 50 billion. The unorganized sector

accounts for over 50% of the market. The market has been growing at a CAGR of 6-

7% pa.

The present biscuits-bakery sector in India looks like a battlefront. The battle being

led by stalwarts like Britannia and Parle with close competition from other companies

like ITC, Nutrine, HLL Kissan, Kwality and even international brands like Kellogg,

Nestle and United Biscuits.

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Contents

1. Executive Summary ............................................................................................ 2

2. Company Overview .. 5

3. Product Overview .. 6

4. SWOT Analysis .. 7

4.1 Strengths 8

4.2 Weakness .. 10

4.3 Opportunities ... 11

4.4 Threats ... 125. Competitor Analysis ... 13

5.1Analysing strategies and activities of direct competitors .... 15

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6. Analysis of Consumer Behaviour . ... 22

6.1 Survey Methodology

. 22

6.2 Demographics of the Respondents... 22

6.3 Details about Family

. 24

6.4 Consumption Behaviour

.. 25

6.5 Buying Behavior

286.6 Brand Awareness

. 31

6.7 Most Liked functionalities

. .. 33

6.8 Outcomes

... 35

7. Conclusion .. .. .. 37

8. References . .. 39

9. Questionnaire used for Survey... ... 40

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2. Company Overview

Britannia Industries Ltd is the leading bakery products company in India with a

predominant focus on sale of branded biscuits. The company's history goes back to

1892, when it was incorporated in Kolkata under the name of Britannia Biscuit

Company. BIL got its current name in 1979. Four years later, in 1993, the Nusli

Wadia group acquired a stake in BIL's parent, Associated Biscuits International Ltd,

UK and became an equal partner in BIL with French Major, Groupe Danone.

The company is engaged in the business of biscuits, bread, cakes and rusks. In

addition to the bakery business, Britannia runs its dairy operations through its joint

venture Britannia New Zealand Foods Pvt Ltd.

It caters to diverse needs and tastes of the Indian consumer across age groups

through its optimum range of biscuit brands. Some of its popular brands are -- Tiger,Good Day, Marigold, Milk Bikis, Treat, 50:50, Little Heart, Bourbon, Pure Magic,

Snax, Premium Bake and Nutrichoice.

The company's strategy of consistently renovating its existing brands and launching

new ones has helped it garner larger share of the Indian biscuits market every year.

Its market share stands at about 35 per cent. It is essentially a biscuit company with

90.2 per cent revenues coming from sale of biscuits. The company has a biscuits

manufacturing capacity of 1,63,500 tonnes per annum, spread over five units located

at Delhi, Mumbai, Chennai, Kolkata and Uttaranchal.

3. Tiger Biscuits

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Launched in 1997 as a mass-market product, now Tiger constitutes 50% of

Britannias market share in organized biscuit sector.Tiger became the largest brand

in Britannia's portfolio in the very first year of its launch and continues to be so till

today. Tiger has grown from strength to strength and the re-invigoration in June 2005

has further helped bolster its growth in the highly competitive glucose biscuit

category.

Why Britannia Tiger?

Britannia Tiger is a mass-market product

Tiger is in Glucose biscuit segment which caters to the need of low-price

market

Tiger has distribution in metro, suburban and rural sectors

Promotion mix of Tiger is very diverse, viz. celebrity promotion, competitions,

emotional pitch etc

Tiger brand is in the market for last 11 years and it has evolved with changing

customer needs

Tiger is the most successful brand in its category

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4. SWOT Analysis

STRENGTH WEAKNESS

Contract Manufacturing Model

Strong brand positioning as a health

force biscuit

Quality Accreditations

Various Tigers

Alternative Distribution and Marketingstrategies

Excise duty holiday

Value for Money

Brand name tussle

Low profit margin

Low penetration in sub-urban and

rural sector

OPPORTUNITY THREAT

Cost-control

Untapped Market Potential

International Market

Growth Potential

Increasing Inflation

Bleak near-future industry outlook

Competition

Price sensitive market

Customer behavior shift

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4.1 Strengths

1. Contract Manufacturing Model

What makes Britannia unique amongst its peers is its contract manufacturing model.

The company outsources entire production of bread, cakes & rusk sold by it. Around

76 per cent of its biscuits are also produced by third party units. This strategy has

helped Tiger brand in catering to growing market needs quickly and at lowest price

possible.

2. Strong brand positioning as a healthforce biscuit

Tiger as a brand has been a roaring success. Within a year of launch, Tiger Glucose

and Tiger Cashew have, together, achieved a turnover of Rs 100 crore and a

marketshare of 30 per cent in the glucose biscuits segment.

At the low-end price-points targeting the mass market, Tiger Glucose (Rs 5 for a

100-gm pack) and Tiger Cashew Badam (Rs 6 for 75 gm) are positioned as

healthforce biscuits. Consumer research showed that good health is the

overwhelming objective when mothers choose snacking options for their children; it

also revealed that mothers are aspirational for their children. So, the selling line for

Britannia Tiger was Jam Ke Khao, Kuch Ban Ke Dikhao (Eat Lots, Become

Something). The proposition repositioned Tiger brand, and brought a contemporary

feel to the advertising.

3. Quality Accreditations

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Other than 'Cremica', 'Priya Gold' and 'Britannia Tiger', none of the other brands

carry the ISI mark.

In a comparative test study done in 2003 by 'Voice', a voluntary organisation in

interest of consumer education, it was revealed that only the claims of 'Britannia

Tiger' as a health product matched the actual content of the biscuit. On the contrary,

'Parle G', which claimed to have eight per cent proteins, actually has just 6.8 per cent

of it while Kellogg's had only 6.2 per cent against the claimed 7.4 per cent.

4. Various Tigers

Britannia has gained market share for its Tiger brand by introducing different variants

catering to all segments of society viz. glucose, cream(Orange, Elaichi, Chocolate,

Rose Milk and Kesar), coconut, Chota-Tiger and recently-launched banana variant.

Enhancing the portfolio of varieties under the Tiger brand is intended to give

consumers more reasons to buy.

5.Alternative Distribution and Marketing strategies

a) Along with normal distribution, Tiger is also focusing on bulk supplies at railway

platforms, canteens and BPO offices, thereby increasing its reach across regions.

b) Also launched "Chota-Tiger"(smaller packs) with two to three biscuits to facilitate

quick eating at consumption avenues. Separate market structure and sales force is

devoted to handle these alternative distribution.

6. Excise duty holiday

The combined taxes, central-vat, excise & local taxes used to amount to 26% of total

cost of Tiger biscuit. Recently government gave relief to biscuit industry by

exempting the biscuit variants with cost below 100per kg from excise duty. This

measure has come as a great relief to Tiger as it falls under the privileged segment.

7. Value for Money

Tiger biscuit is positioned at low-end price-points (Rs 5/ Rs10) targeting the mass

market. Tiger biscuit has maintained quality at low prices, maximizing value for the

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customer. Tiger had maintained the same price for its flagship glucose brand for

several years to enhance customer satisfaction.

4.2 Weakness

1. Brand name tussle

The relation between Britannia's major stake holders -- Wadias and Danone, has

turned sour since 2005--06 over the alleged unauthorized use of the Tigerbrand by

Danone in five countries; viz. Singapore, Pakistan, Malaysia, Indonesia and Egypt.

Britannia has filed a case against Danone at Singapore court regarding the same.

2. Low profit margin

After a drop in operating profit margins to 6% levels in 2006-07 from over 11% in the

previous year. The current input prices are still significantly higher than previous

year. Britannia will have to neutralize the adverse impact of the same through a

combination of improved realization per pack, operating efficiencies and mix

improvement.

3. Low penetration in sub-urban and rural sector

a) Although Britannia has a large established distribution network, but still there is a

huge unorganized sector(40% of total Indian biscuit market) operating in sub-urban

and rural areas. These regional players mainly eat onto the potential market pie ofTiger biscuits, as it is the brand primarily into mass-market.

b) Lions share (70%) of Britannias revenue comes from metros. Penetration in sub-

urban and rural areas is very low.

4.3 Opportunities

1. Cost-control

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Cost-cutting measures, especially in the areas of manufacturing, logistics and

distribution, will pave the road for increased profit margins. Rising inflation and

increased input prices have been pushing profit margins for last couple of years. So,

employing various strategies to control cost will help in meeting financial objectives.

2. Untapped Market Potential

India's per capital biscuit consumption is still at about 1 kg, as against 2.5 to 3 kg in

Sri Lanka, 5 kg of europe and 7.5 kg of USA. So, in future we can expect per capita

consumption to grow to at least 2.5 kg. This entails to a huge untapped potential

market.

3. International Market

Although britannia exports its various products to countries including the US, Ghana,

Seychelles, Singapore, Oman, Saudi Arabia, United Arab Emirates, Qatar, Bahrain,

and Kuwait, but Tiger is exported to only Sri Lanka, US and AUS. So, the existing

distribution network can be leveraged to export in these countries.

4. Growth Potential

a) The company is investing Rs.130 crore from its internal cash reserves towards

capacity addition. It is also believed to be adding capacities at its contract

manufacturing units at West Bengal, Assam, Pondicherry, Kanpur and Nagpur.

b) The company has also been following the inorganic route of expansion quite

actively in the recent past. It made its first international acquisition in March 2007 by

buying 70 per cent stake in Strategic Food International Co LLC, Dubai, a leading

company in the biscuits and cookies segment in the GCC (Gulf Cooperation Council)

markets.

c) Biscuit industry in India in the organized sector produces around 60% of the total

production, the balance 40% being contributed by the unorganized bakeries. With

increased production capacities Tiger will be able to capture part of unorganized

sector.

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4.4 Threats

1. Increasing Inflation

Food inflation is in excess of 10 per cent and input-cost inflation will be more severe

in 2008-09. Inflation will remain the biggest challenge for the next year. Increasing

prices of inputs - 20-25% increase in inputs in last 2 yrs. Prices of food grains are

soaring wheat have increased from 650 to 980 per quintal

2. Bleak near-future industry outlook

The growth in the biscuit market in India has reflected a decline in the last fiscal. This

can be attributed to increasing input prices and rising inflation. Also, oil prices have

reached $144/barrel. All these factors indicate that in near-future industry has a

rough ride ahead.

3. Competition

Strong competition from ITC, Parle, Sara Lee, United Biscuits, Kellogg, and Nestle

India ensures that it does not take its leadership, in the domestic market, for granted.

Specifically in Glucose biscuit segment, Tiger faces stiff competition from Parle

Products' Parle-G biscuits.

4. Price sensitive market

Tiger biscuit operates in the low-price segment, which is catering to a very price

sensitive customer. This leads to very low margins and hence very less space for

innovation. Any increase in price can lead to substantial market-shift.

5. Customer behavior-shift

Biscuit industry in low-price segment faces stiff competition from other foods

category viz. namkeen, chips etc. These are also in the low price segment(Rs 5-10

category) and have the advantage of lower taxes. VAT on this food segment is 4%

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while Biscuit segment is levied a VAT of 12.5%. Lower taxes provide for higher profit

margins and stiffer competition in supply chain.

Competitor Analysis

Brand competitors are defined as competing brands of products which can satisfy

the consumers wants almost equally as each other.

For Britannias Tiger brand, the main competitors are Parle, ITC and Priya Gold.

Other small brands in the biscuits industry are Cremica, Dukes, Bakemans, Anmol,

and Sobisco. Apart from these products from biscuit segment, other snacks like

Chips and Namkeens also serve as alternative products that satisfy the needs of the

customers and eat into the potential market of Britannia Tiger.

Analysing competitors presence in the current market on some parameters, viz.

Market share, brand awareness, brand reach, marketing expenditure and growth;

following observations are made.

A glance at the Market share of different competitors, in the organized biscuit

segment in Indian consumer market, will tell us that Britannia is the market leader

with 38% market share closely followed by Parle.

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38%

31%7%

5%

19%

Volumes in 2006

Britannia

Parle

ITC

Priya Gold

Others


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Parle G scores over Britannia Tiger and other products in Brand Awareness among

consumers. This observation is based on the sample survey done by our team

during the preparation of this report.

In brand reach Britannia scores much above other products in the biscuit market

with a reach to 3.3 million stores, as against Parles reach to 1.8 million and ITCs

reach to 1.5 million stores.

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3.3

1.81.5

0

1

2

3

4

Reach (in millions)

Britannia

Parle

ITC


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ITC has the highest Marketing expenditure when compared to both Britannia and

Parle. ITC spent Rs 117 crores in 2004-05 under marketing expenditure head, while

Britannia and Parle spent Rs 100 crores and Rs 50 crores, respectively.

Apart from the above comparisons, on comparing growth of Biscuit sector, whichgrew at a CAGR of 7% in last 5 years, with that of other snack categories like Chips

(15-20%) and Namkeens (35%); it can inferred that Namkeens and chips are eating

into a huge potential market of Britannia Tiger.

5.1 Analysing strategies and activities of direct competitors:

Parle Products has been India's largest manufacturer of biscuits and confectionery,

for almost 80 years. It is regarded as maker of the world's largest selling biscuit,

Parle-G. It is also a host of other very popular brands like krackjack, Monaco, Hide &

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Seek, Parle Marie, Digestive Marie etc. in biscuit segment and Melody, Mango Bite,

Poppins etc. in confectionery segment. The Parle name symbolizes quality, nutrition

and great taste to Indian customers. With a reach spanning even the remotest

villages of India, the company has seen a great growth since its inception. While to

consumers it's a beacon of faith and trust, competitors look upon Parle as an

example of marketing brilliance.

Many of the Parle products - biscuits or confectioneries, are market leaders in their

category and have won international acclaim such as the Monde Selection, since

1971. Parle products play the low price game at all varieties of biscuits from glucose

to cream. Essentially, Parle plays a high volume, low margin game. With a 40%

share of the total biscuit market and a 15% share of the total confectionary market inIndia, Parle has grown to become a multi-million dollar company. According to ORG-

MARG reports, Parle G commands a good 65 per cent market share in the domestic

biscuit market.

One of the most popular products of Parle

Group is Parle-G. It has ruled the biscuits

market for over 65 years. The glucose

biscuits category in India is estimated at Rs

15 billion. The Parle G brand faces

competition from Britannia's Tiger brand of

biscuits. But being the largest selling

glucose biscuit brand has not made Parle

complacent. The Mumbai-based low-profile biscuits major have always tried to see

some more scope in the category. It has wisely built more `social' equity for its

largest selling brand, Parle G, by giving scholarships to poor children from West

Bengal & Tamil Nadu. Its corporate equity was weak in these States compared to

Britannia. With academics being a priority in these States, it has strengthened the

equity of its corporate brand in these parts by using these tactics.

There was a time when the biscuit maker was threatened, when Britannia's Tiger

made an entry into the glucose segment a couple of years ago. Today, in spite of

bigger FMCG majors such as ITC and HLL muscling their way into the category,

Parle is not exactly on shaky ground. Besides, the category is fast expanding and its

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growth in the sluggish FMCG industry has helped the company hold on to its

dominant position. While competing new and global players in this segment, Parle

found that there are distribution gaps in the eastern and southern markets

(compared to the North and the West), and it enhanced its distribution channel in

these parts.

Protecting the turf of its largest-selling glucose brand, Parle has also decided to

restrict its line extensions to avoid diluting its equity. While it has extended Parle G to

a more premium variant (Magix), it has deleted the Parle G tag for its Milk Shakti

brand and brought it under the generic Parle name.

Reacting to the competition in the biscuits segment, it took on Britannia's brand of

Good Day cookies. Parle Products introduced two new cookie variants under its

chocolate chip cookie brand Hide & Seek. Sporting flavours such as Butter and

Cashew Badam. Hide & Seek till then existed as a single chocolate chip cookie

brand at the premium end of the market.

Good Day, for the first time, will have a challenger brand at the national level. In fact,

cookies, which generally have high butter content, are manufactured by a host of

regional players (mainly the local bakeries) and the big national players will have tofight for their share in this segment from the unorganised local players.

Considering that the biscuits category has been growing rapidly at nearly 8 per cent,

Parle has decided not to focus on its confectionery brands. In spite of having certain

strong confectionery brands such as Poppins, Mango Bite, Melody and Kismi, Parle

realises that it cannot get the margins in this category compared to its biscuits.

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In 2003, ITC forayed into the Biscuits market with the Sunfeast range of Glucose,

Marie and Cream Biscuits. The mascot Sunny reinforces the emotional aspects of

the brand. ITC is comparatively late entrant into the biscuits market. But the late

entrant is already on the podium in the third place with as much as 7 per cent of the

market in terms of value. There was a business synergy consideration in ITCs

decision to enter into biscuits market. ITC was already value-adding to wheat with its

branded atta presence. By entering the biscuits segment, it could also improve its

bottom-line further.

Before entering the segment, ITC dug into market research. Research revealed that

the category had gaps which ITC could settle into. Findings revealed that consumers

wished to taste new and innovative products. That was precisely what the

competition had not done in a big way. The biscuits industry had witnessed little

innovation; Glucose was Glucose and Marie was still Marie. In 2003, ITC launched

Sunfeast with six ranges. But it was a calculated risk. ITC stuck to categoryfavourites like Glucose, Marie and Bourbon cream. Along with that, it also launched

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innovations such as orange-flavoured Marie, Marie light and butterscotch-flavoured

cream biscuits. In 2004, Sunfeast followed this up with the launch of Sunfeast Milky

Magic. It has then launched the Sunfeast Snacky and Sunfeast Golden Bakes.

For biscuits, distribution and visibility are extremely important as it's partly an impulse

purchase product. Sunfeast has been fortunate in this respect as ITC already had a

good understanding of distribution channels due to its tobacco business. The

company used its existing network of convenience stores -- the company's name for

the hole-in-the-wall pan-beedi shops -- for Sunfeast. Not content with the existing

resources, the company also looked at grocery stores and other retail formats. The

brand is now available in nearly 1.8 million outlets while Britannia has a presence in

nearly 3.3 million outlets and Parle is available in 1.5 million outlets.

In April 2005, Sunfeast launched its major campaign. It signed on Hindi film actor,

Shah Rukh Khan as its brand ambassador. For promotions in southern states,

Sunfeast has signed Tamil super star Surya as a brand ambassador. The company

has been spending 35-40 per cent of its turnover from the biscuits segment on

advertising and promotions. Going by that number, ITCs annual marketing spends

are estimated to be in the region of about Rs 115-120 crore (Rs billion). Priya Gold

spent close to Rs 45-50 crore (Rs billion), nearly 10 per cent of its turnover on

marketing. Even market leader Britannia with spends of Rs 100 crore (Rs billion)

(2004-05) spends about 10 per cent of sales on marketing.

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As far as pricing is concerned, Sunfeast look at a two-pronged strategy; high

margins in cream variants and volumes from the Marie and Glucose segments. The

biscuit consumer is willing to pay more only when he sees a clearly differentiated

product. Hence companies have little choice in terms of pricing. Industry barometer

AC Nielsen has indicated that both Parle and Britannia are losing market shares to

ITC. According to the AC Nielsen retail sales audit, both Britannia and Parle have

lost volumes while there is an increase in volume of Sunfeast. But, to catch the large

market share of Britannia & Parle, Sunfeast may have to drop its prices and this will

squeeze its margin even lower.

Priyagold is a biscuit brand of Surya Food & Agro Ltd., started in Oct. 1993. The

company has an installed production capacity of 300 tonnes per day and the

capacity utilisation stands at 60 per cent at present. The Priyagold biscuit range is

being produced in the plants located in Noida, Lucknow, Surat, Nadiad and

Faziabad. The company has very good presence in northern part of the country.

After establishing itself in the northern part, the company has now started to spread

its wings in southern part also and thus, making a direct competition with Britannia &

Parle.

The Priyagold brand has seen good growth in the non-glucose biscuit segment,

which, according to industry estimates, accounts for 30 per cent of the overall

biscuits market. Several multinationals have expressed interest in either buying out

or forging strategic alliances with the company to tap the ever growing Indian

Biscuits Market. Priyagold currently has 23 varieties of biscuits and it has plans to

increase it by foraying into salty biscuits. It spends close to Rs 45-50 crore (Rs

billion), nearly 10 per cent of its turnover on marketing. The company has also

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started tapping foreign market by exporting Priyagold biscuits to markets such as

Dubai, Muscat and Oman.

The main strength of Priyagold biscuits is that almost 70% of its sales come from

rural India which is a booming market. This gives the company a fine opportunity to

leverage its rural distribution network for exponential growth of the country.

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5. Analysis of Consumer Behaviour

6.1 Survey Methodology

We surveyed people on the internet using an on-line survey and direct surveys by

going directly to the people. The on-line survey was sent to people across the

country in different states in order to make sure that we get the best mix in our

survey.

6.2 Demographics of the Respondents:

Following are the details we gathered from the respondents, along with appropriate

reasons for choosing these parameters:

1. Monthly family Income: On the basis of this we can find if different tastes

and preferences exist for consumers falling in different income levels.

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2. Type of family: Here we have given two options to the respondents: nuclear

and joint. This was again aimed to find the different tastes, preferences and

usage for the biscuits across various types of families.

3. Lady of the house: Here two options were given to the consumers:

Housewife and Working. This was so because buying behaviour of a house

wife contrasts with that of a working lady. Compared to a working lady, a

housewife generally focuses more on the variety, buys from local shops and

uses biscuits for various purposes.

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4. Family size: This was added to see the increase in the consumption of

biscuits with the increase in family size.

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5. No. of children: As biscuits are mainly consumed by children and it has been

seen that biscuits, especially glucose present in the lower range, are targeted

towards the children. So, this was added to find out how biscuit consumption

increases with the increase in no. of children.

6.3 Details about Family

We further gathered details about the family, like who decides to buy the biscuit and

the age of the person who decides about the brand to be purchased.

1. Decision about buying the biscuits: This was to know about the way

decision is made about the biscuits at any home. This way we can identify

which family member needs to be targeted by the company. The results we

obtained are as follows:

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From the data it is evident that most of the time the decision is taken by the

lady of the house. This clearly gives the idea about potential buyer for our

product.

2. Age of decision maker for buying biscuits: Depending upon the age of the

decision maker a company can further come to know about his/ her tastes,

likes and preferences.

6.4 Consumption Behaviour

We tried to learn more about the consumption behaviour of the respondents

by asking them details like who consumes the biscuits mostly in your house,

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what kind of biscuits are most preferred, for what purpose are the biscuits

consumed, etc.

1. Who likes biscuits the most: This was again asked to further learn about the

consumption behavior. The options given are: everyone, children, adults and

others. Those who will consume the maximum will definitely have some say

in the purchase, so that aspect can be provided. We obtained following

results:

Here we can see that biscuits are liked and eaten by everyone in the

house. The biscuits are generally bought by the lady of the family and liked

by children more, but ultimately it is consumed by everyone.

2. Purpose of eating the biscuits: This will give us the details of the way

biscuits are consumed, about the purpose for which biscuits are mostly

bought, etc. This can again provide an effective medium to position a brandby the company. We obtained following results:

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Here we can see that mostly biscuits are consumed during evenings and

mornings. We can spot a trend. Generally this is the time when biscuits

are taken with the tea.

3. Type of biscuits preferred: There are various types of biscuits available in

the market. A few of them are glucose, cream, marie, sugar-free, salted etc.

So, the results obtained are:

As far as the preference of type of biscuits is concerned we can see that

the preference is almost same for cream, Marie, namkeen (salted) and

glucose biscuits. Although out of these we can see cream biscuits leading

the way. On the other hand, sugar-free biscuits are not preferred by many.

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4. Different ways in which biscuits are used: This can further provide

company details about the way biscuits can be positioned. Here we can see

that biscuits are used (in most of the households) in the form of snack,

supplement with tea/ coffee, serving the guests etc. Very few times it was

used as a food, hunger cruncher or general eating etc. So this can give us

fair amount of idea how a company can position its brand.

5. Food items used instead of biscuits: The results gave us the details about

the substitutes of the biscuits prefer. In most of the cases these were some

snacks like namkeen, samosas, rusk, chips, sweets etc. Although very few of

the times people even said fruits, dry fruits etc.

6.5 Buying Behavior

We analyzed buying behavior of the respondents. Here we generally asked

about the place from where they buy the biscuits, frequency at which they buy

biscuits etc.

1. Place where biscuits are bought: This can give us an idea about the

place where customer buys the biscuits. Here company can concentrate

for the maximum promotion. The following results have been obtained:

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Here we can see that biscuits are mainly purchased from nearby provision

store. So our main focus should be increse our brand reach to small

retailers as it still people but 70 % of time from nearby stores.

2. Frequency of purchase: Here we decided to link the results obtained

here with the demographics of the respondents so that we can relate the

consumption with the demographic attributes like monthly income of the

family, type of family etc.

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Also with respect to various demographic parameters we obtained

following results:

Frequency of purchase increase with the

1. increase in family income

2. increase in family size

3. increase in no. of children

4. more for joint families

5. more if lady of the house is not working

3. Time of purchase: Here we decided to find the time of purchase. The

time of the day when maximum biscuits are bought.

On the basis of the results we can see that maximum purchase occursduring evening. This is the time when we can find maximum people

purchasing the biscuits.

4. Attributes affecting Buying Behavior

It is a comparative study of the consumer perception about the below

listed attributes of a biscuit across various products while buying decision:

Freshness

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Crispness

Price

Taste

Availability (easy access, in required size)

Advertisements

Brand Name/Image

Packaging (easy to carry/store, attractive)

Other (looks, smell, consistency)

Recommendation of shopkeeper

Recommendation of family/friends/relatives

It has been seen that the Taste, Freshness and Crispness are the major

draws to consumers when they purchase biscuits.

Surprisingly Britannia Tiger falls behind in terms of advertisements and

packaging as per the consumer data. However Tiger scores well in

Freshness, Price, Availability and Brand Image vis-a-vis its competitor

products, attributes which augur well for the product and is a pointer as to

why it has been able to retain its customers and bag a large market share

over the years.

6.6 Brand Awareness

We decided to test the brand awareness of Tigers competitors. Tiger basically lies in

the glucose segment of the market. The respondents were questioned about the

awareness of various competing brands in the glucose market and the brand which

they liked the most. Here we judhed the Tiger against Parle G, Priya Gold and ITC

Sunfeast.

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1. Brand Awareness: Here respondents were questioned about the awareness

of the glucose brands. The following results were obttained:

Here we can see that Parle G has maximum brand awareness out of all.

2. Most liked brand: Here respondents were questioned about the brand they

liked the most.

Here we can see that Parle G is the most preferred brand out of all these.

On further analysis we found out that Parle G, ITC sunfeast and priya gold are

more preferred by people in lower income group while Tiger is preferred by

people in upper income group.

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6.7 Most Liked functionalities

We asked respondents about the factors liked by them:

Easy/quick to eat

Easy to carry in tiffin/picnics/journey

Is liked by members of the family

Is good for health

Is trendy/ fashionable

Is not for adults

Is preferred over other foods that can be eaten instead of biscuits by

members of the family

Is too dry/not tasty to eat

Does not become stale/spoilt quickly

Is preferable in some season of the year

Is easily digestible

Good biscuits are easily available

We asked them to rate the factors as per their preference. We found that

respondents have given high importnce to following factors:

Is not for adults



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This implies that these are the factors that impact them the most while deciding to

buy or not buy any biscuit brand.

6.8 Outcomes

On the basis of our survey we have made the following conclusions:

1. The decision of the brand of the biscuits to be bought is mostly taken by the

lady of the family

2. Biscuits are liked by people of all age groups (not only by children) and are

mainly taken during evenings and mornings with tea/ coffee.

3. Glucose, Marie, cream and salted biscuits are the most preferred types of

biscuits with sugar-free and others being the least.

4. Snacks like namkeen, samosas, rusk, chips, sweets etc. are the major

substitutes of the biscuits and respondents prefer to have these food items in

case biscuits are not available at home.

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5. In glucose segment of the biscuits Parle G has the maximum brand

awareness and is liked by the most. So we can say that this is the major

competitor of Tiger.

6. As far as the buying behaviour goes consumers prefer nearby provisional

store more than bakery or hypermarket. Hence availability and sales

promotions at small retailers will play major role.

7. When asked about the factors which influence the decision about biscuits, we

found that people give importance to:

a. Is not for adults

b. Is too dry/not tasty to eat

c. Is preferable in some season of the year

This indicates that the biscuits are mostly liked by children, generally preferred in

some season of the year and taste is a very important attribute before a consumer

decides to buy or not to buy.

8. Out of all the attributes taste, freshness and crispness are the major draws to

consumers when they purchase biscuits.

9. The major factors which form the perception about the brand are:

a. Taste

b. Brand Name/Image

c. Packaging (easy to carry/store, attractive)

10.Out of these four attributes Britannia has been perceived well in taste and

brand name, while perception about its packaging and ease with which it can

be returned to consumer is not very good.

11.It has been found that the people in lower income groups prefer attributes like

taste and packaging more important than others. While those in higher

income group emphasize more on brand image

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Indian biscuits' market is estimated to be 1.1 million tonnes per annum and

valued at over Rs 50 billion. The market has been growing at a CAGR of 6-7%

pa.

The present biscuits-bakery sector in India looks like a battlefront. The battle

being led by stalwarts like Britannia and Parle with close competition from other

companies like ITC, Nutrine, HLL Kissan, Kwality and even international brands

like Kellogg, Nestle and United Biscuits.

Consumer behavior analysis of the customers, as studied in this report through

market surveys, reveal some insights into the biscuit industry and Britannia Tiger

brand in particular.

Brand awareness This is an important factor when it comes to sales.

Britannia Tiger brand is behind Parle on this parameter and needs to

improve on it

Substitute products Namkeens and other food snacks are fast

emerging, growing at 35% pa, as product substitutes of Glucose biscuits

Consumers prefer nearby provisional stores to hypermarket and thusgood distribution network is a prerequisite of good sales. Also, availability

and sales promotions at small retailers will play a major role

Urban vs Rural Organised biscuit industry has a very low penetration in

rural markets. ITC is the only player to have good sales in rural markets

Taste, freshness and crispness are the major draws to consumers when

they purchase biscuits

Britannia has been perceived well in taste and brand name, while

perception about its packaging and ease with which it can be returned to

consumer is not very good

Bleak industry outlook - growing inflation and food prices will eat into the

profit margins of the biscuit industry

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Industry needs to keep innovating the product and marketing strategies to

keep up with the changing customer wants, viz. customer shift towards

namkeens and other food snacks

8. References

1. http://www.india-today.com/btoday/22061999/markting.html

2. http://britannia.co.in/

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3. Prowess database

4. http://biscuitfederation.org

5. www.indiastat.com/

6. 13e edition, Kotler, Keller Koshi and Jha: Marketing Management, Pearson

Publications

Britannia-Tiger Questionnaire

1. Are biscuits eaten in your house? Yes No

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2. Who generally eats biscuits in your house? (Please tick only one)

Everyone Children only

Adults only Any other

(specify)_________________

3. When/for what do you generally use biscuits? (You may tick more than one)

Morning (breakfast) Evening (snack)

Meals (lunch/dinner) Tiffin

When sick Any other

(specify)_________________

4. Which of the following kinds of biscuits does your family use? (You may tickmore than one)

Namkeen biscuits Cream biscuits

Marie Biscuits Sugar Free Biscuits

Glucose Biscuits Any other (specify) ________________

5. What are the different ways in which biscuits are generally used in your house?

1. ____________________ 2. ____________________ 3. ____________________

6. Which food items are generally used in your house instead of biscuits?

1. ____________________ 2. ____________________ 3. ____________________

7. From where do you generally buy biscuits? (You may tick more than one)

Nearby provision store Hypermarket

Bakery Others

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8. How often do you buy biscuits? (Please tick only one)

Daily 2-3 times a week

Regularly other than

weekends/holidays

Weekends/Holidays

Occasionally, for special purposes Any other

(specify)_________________

9. What time of the day do you generally buy biscuits? (You may tick more than

one)

Morning Evening Other

10.What brands of biscuits are being/have been used in your house?1. ____________________ 2. ____________________ 3. ____________________

11. Are you aware of the following brands of biscuits?

Parle G ITC Sunfeast Priya Gold Britannia Tiger

12. Please rank the following brands of biscuits in order of preference.

Parle G ITC Sunfeast Priya Gold Britannia Tiger

13. Please rate the following for how likely each of the factors are to influence you

(and your family) to use/not use biscuits? (-3: most likely reason not to use, 0:

does not affect, +3: most likely reason to)

-3 -2 -1 0 +

1

+

2

+3

Easy/quick to eat

Easy to carry in tiffin/picnics/journey

Is liked by members of the family

Is good for health

Is trendy/ fashionable

Is not for adults

Is preferred over other foods that can beeaten instead of biscuits by members of the

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family


Does not become stale/spoilt quickly


Is easily digestible

Good biscuits are easily available

14. Please rate the following on how important each of the factors are when you

buy/use biscuits? (1: least important, 7: most important)

1 2 3 4 5 6 7

Freshness

Crispness

Price

Taste

Availability (easy access, in required size)

Advertisements

Brand Name/Image

Packaging (easy to carry/store, attractive)

Other (looks, smell, consistency)

Recommendation of shopkeeper

Recommendation of family/friends/relatives

Can be returned to shopkeeper easily if not

good

15. Please rate the performance of the given types of biscuits on each of the

attributes on a scale of 1 to 7. (1: performs poorest, 7: performs best)

Tiger Biscuits Parle G Sunfeast

Freshness

Crispness

Price

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Taste

Availability (easy access, in req

size)

Advertisements

Brand Name/Image

Packaging (easy to carry/store,

attractive)

Other (looks, smell,

consistency)

Recommendation of

shopkeeper

Recommendation offamily/friends/relatives

Can be returned to shopkeeper

easily if not good

16. How do you buy biscuits? (Please tick only one)

I collect information, develop perceptions about the brand, then buy the brand.

I buy the brand, learn about the brand, then form perceptions about the brand.

I buy the brand, experience the brand and then gain information about the

brand.

17. Which of the following is true for you in biscuit buying? (You can tick more than

one)

I am price conscious.

I look at a lot of information before buying biscuits.

I associate biscuits buying with esteem/ego.

I am emotionally involved in biscuit buying.

Biscuit buying is a habit for me.

Biscuits give me quick satisfaction.

I am more likely to buy brands of biscuits that offer gifts.

Please tell us about your family?

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1. In your house who decides

whether to buy biscuits or not?

Mother/ wife

Children

Earning male

member

Other (specify)

2. In your house who decides

which brand of biscuits to buy?

Mother/ wife

Children

Earning male

member

Other (specify)

3. Age of decision maker for

buying biscuits

Less than 20 years

30-40 years

20-30 years

Greater than 40

years

4. Monthly family income Less than Rs.

10000

Rs. 15000-25000

Rs. 10000-15000

More than Rs.

250005. Type of family Nuclear Joint

6. Lady of the house Housewife Working lady

7. Family size____________ 8. No. of children___________

Final 32 Report

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