PGCBM-22 Group38 PMB CaseStudy1 Britannia the-Road-Ahead v5.1

8/13/2019 PGCBM-22 Group38 PMB CaseStudy1 Britannia the-Road-Ahead v5.1

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1PGCBM-22 - PBM Case Study 1

Prof. Dr. Sanjay Patro

Product and Brand Management

SMS ID Name CenterGr.

No.

2224047 Satish Mohan HyderabadBegumpet 38

2224051 Srikanth Kalakonda HyderabadBegumpet 38

2224058 Siddhartha Pillutla Hyderabad - Begumpet

38


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- Founded in 1892 with an initial investment of Rs. 295

- In 1918, Gupta Brothers partnered with C H Holmes- In 1921, first company in the east to use imported gas ovens

- During World War II, supplied large quantities of biscuits to armed forces

- In 1975, took over biscuits distribution from Parrys

- In 1978, subsequent to public issue, Indian shareholding crossed 60%- In 1979, name changed to Britannia Industries Ltd.

- In 1983, crossed the Rs. 100 crore mark

- In 1997, unveiled its corporate identity "Eat Healthy, Think Better"

In October 2009, as a big step in this mission, it initiated the setting up the

Britannia Nutrition Foundation

First food company in India to become a Zero Trans Fat company



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To dominate the food and beverage market in India through aprofitable range of Tasty yet Healthy products by making

every Indian a Britannia consumer. We want to be part of ourconsumer- at home out of home a natural part of his life.

To dominate the food and beverage market in India with a

distinctive range of Tasty Yet Healthy Britannia brands.



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Analyze the Snacks market

Device a Strategy

Provide a Roadmap

Key Questions to be addressed

Is the Market Big enough?

What is the feasibility to sustain in this space

What are the types of snacks that are both tasty and healthy



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0

2000

4000

6000

8000

10000

12000

14000

2002 - 03 2006 - 07 2010 - 11 2014 - 15 *

7700

8800

11000

13200

Rs. Billion

Source: Ministry of Food Processing Industries , India

* - Projected Figure


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Preference to eat Ready to Eat foods

Increasing spending on Snacks that are Healthy

Foods manufactured by Branded companies perceived

Healthier

Per capita Food spending to increase by 56.5%

Packaged Food Industry is close to $21.7 Billion / Rs. 1085

Billion in 2012

Projected to reach $26 Billion / Rs. 1302 Billion by 2015

MARKET IS BIG ENOUGH AND GROWING


7/197PGCBM-22 - PBM Case Study 1

1085

9915

Current Market

Branded & Packaged

Un-branded

124

93

66

61

51

Top 5 Categories

Biscuits Refined Oil Packaged Tea

Non-refined Oil Salty Snacks

Rs. Billion


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PGCBM-22 - PBM Case Study 1

Mainly Unorganized

Very Few Branded Players

Branded players are coming with Indianised versions of Westernsnacks

Indian Snacks market valued at $ 3 Billion / Rs. 150 Billion

Branded Snacks comprise of $ 1.34 Billion / Rs. 67 Billion

Growing rapidly at 15%20% Growth in unorganized sector is only 7%8%

GROWING AND FEASIBLE TO SUSTAIN


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Rs. Billion

16.32

16.51

15.89

1.06 1.22

Market Shared - Branded Snacks

ChipsExtruded

Other Savoury

Nuts

Popcorn

47.99

48.56

46.72

3.13 3.59

Market Share - Types of Snacks

Chips

Extruded

Other Savoury

Nuts

Popcorn


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CHIPS

Potato Chips is 86% of the entire category of snacks

Dominated by PepsiCo with Frito-Lay

Haldirams and Future Group recent entries into this market

EXTRUDED

Mainly Corn based

Dominated by PepsiCo with Kurkure

SAVOURY

Indian Sev snacks

Dominated by Haldirams

NUTS

Small marketHaldirams the only Branded player

POPCORN

Small marketCongra Foods the only Branded players


11/1911


58%

13%

8%

3%7%

11%

Chips / Crisps

Lays Bingo! Uncle Chipps

Haldiram's Private Label Others

58%

16%

10%

5% 8%5%

Savoury

Haldiram's Lehar Garden

Bikanervala Private Label Others

Haldirams is the only leading player in Savoury

Frito-Lay is the only leading player in Chips/Crisps


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Help people enjoy lifethrough healthy snackingMake enjoyable food, healthy & accessible to all people, any time,

anywhere -everyday


To capture 20%ready to eat food category within next 2 year

and focus on generating growth through increasing the base and

frequency of consumption.


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STRENGTHS:

Fulfills one of the basic requirement - food

Widely accepted in all generations .

Provide good instant remedy for hunger in theform of readymade food.

Preserve the non seasonal food and makes itavailable throughout the year.

Perceived as Health-focused Brand .

WEAKNESSES:

Higher price of food products.

Technology requires high investment.

Regular usage of processed food may cause alterationin metabolic activities and health issues.

OPPORTUNITIES:

Economic growth of India.

Improved living standards .

Increase disposable income and busy lifestyle.

Need for Good nutrition quality of foods

Inflow of foreign reserves and funds from the govt.

Other avenues like ready to eat foods.

THREATS:

Competition from local and foreign companies.

Quality good for most products in the market

Lack of advanced technology.

Diversification low compared to competition

BIL


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Affordable Delight Health and Taste

Any Time, Any Where --on-the-go consumption

Indulgent Delight

Morphing of Categories


Britannia Cakes - HUGE SuccessDiary Products - Mediocre Success Dominated by AMUL

Gulf CountriesGood Success due to Huge Indian Population


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PRODUCT:

Customer wants the Snacks to be healthy

The Snacks should also be tasty

Snacks should be Indianised to fit the spicy andtangy preference of the customer

Snacks should preferably look very Western

Brand differentiation should be health focus

PRICE:

Indian customer is price sensitive

S/He is ready to pay higher for healthy products but,should be tasty

Price differentiation if market is new

PLACE:

The target market should be Rural and Sub-urbanand Urban

Availability in Malls, Supermarkets, local storeSize of package to facilitate accessibility and Ease

Distribution channel should be very strong likeITC or PepsiCo

Sales force could be used to market door-to-doorjust like Eureka Forbes

PROMOTION:

Marketing should be done as a Healthy product

Reach the customer via advertisement on TV,Press, Radio

Sales force can be used for initial door-to-doorpromotion

Introduction of the brand best suited in rainy /winter /festive season

Market


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BIL will need to increase its footprint in food products that can be part of every

meal category of every consumer, especially in Main Meal and AnytimeAnywhere category

In between meals at home

Anytime Anywhere

Meal Accompaniment

Main Meal

Focus on Traditional Indian snacksCrispsand Nutsrather than Chips

Most important, continue focusing on its key products-line - Biscuits, Cakes and

Dairy which are Tasty and Healthy

In Main Meal category, it has little or no presence. It should focus on this marketand produce many Ready-to-Eat curries, sweets and snacks which are part of

an Indian Meal



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BIL should focus on Indian taste, market tasty snacks anddifferentiate with their motto Eat Healthy, Think Better

Companies like Haldirams, Parle burnt their fingers by

targeting the Chips market dominated by Lays

BIL should differentiate by making Indian snacks - Crisps and

Nuts market them as healthier

Continue to Focus on removing trans fats from its products.

Target health entries and specialized products

Fortificationof majority of its products

Fortified products should be made accessible and affordable


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PGCBM-22 Group38 PMB CaseStudy1 Britannia the-Road-Ahead v5.1

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