sm ppt

Products of Britannia

Strategies implemented by Britannia at present.

Strategies.

Expansion strategy

Stability strategy

Combination strategy

retrenchment strategy

Stability strategy

Stability strategy

• For more than a decade, biscuit manufacturer Britannia Industries has called on consumers to "Eat Healthy, Think Better."

• Britannia focused on building its individual brands, such as Tiger glucose biscuits, Good Day cookies and Treat cream biscuits.

Distribution strategy.

Production centre depots Authorized

wholesalers retailers.

Production centre Authorized wholesaler

retailer

OR

• personal consumption packs to attract youth and people on the move,

• adding transit points such as bus stops and small roadside shops to its distribution network, and

Quality policy

• Customer satisfaction• Total quality management (TQM)• Environment responsibility• Development of HR• Improving skills and knowledge• Reduction in customer complaints• Continuous training for the development of HR• To reduce the defects in the products• To minimize accident level

Expansion strategy

External expansion strategy

• Acquisitions and merger--in 1975 Britannia Biscuit Company (BBCo) took

over biscuit distribution from Parry's who till now distributed Britannia biscuits in India.

Thus it was later rechristened as BRITANNIA INDUSTRIES LTD.

• in 1993 the Wadia Group acquired a stake in ABIL, UK and becomes an equal partner with Group DANONE in BIL.

• --in 2001 Britannia acquired an equity stake in Dynamix Dairy and outsources the bulk of its dairy products from its associate.

External expansion strategy

• Joint venture with New Zealand Dairy

• On 27 October 2001, Britannia announced a joint venture with Fonterra Co-operative Group of New Zealand, an integrated dairy company from procurement of milk to making value-added products such as cheese and buttermilk.[7] Britannia planned to source most of the products from New Zealand, which they would market in India.[6] The joint venture will allow technology transfer to Britannia.[7] Britannia and New Zealand Dairy each holding 49% of the JV, and the remaining 2 per cent held by a strategic investor. Britannia has also tentatively announced that its dairy business would be transferred and run by the joint venture.[7]

• Britannia industries formed a joint venture with the Khimji Ramdas Group and acquired a 70 percent beneficial stake in the Dubai-based Strategic Foods International Co. LLC and 65.4% in the Oman-based Al Sallan Food Industries Co. SAOG.

• Britannia's decision to remove 8,500 tons of trans fat from its biscuits in the last year, making them completely trans fat-free. The company was under no regulatory compulsion to do so; in fact, it is the only biscuit manufacturer in India to have taken such a step. Over the last few years, Britannia has also fortified many of its products with vitamins and micronutrients such as iron. Currently, 50% of its products are fortified.

Retrenchment strategy

Turnaround strategy

• Even as Britannia was caught up in its internal crisis, the external landscape was fast changing. For a long time, only Parle Products was a strong competitor to Britannia in the national biscuit market

• giant ITC entered their turf as part of its diversification strategy. Using its financial muscle -- ITC's 2007-08 revenues were $5.5 billion -- and massive distribution network, it quickly succeeded in emerging as a leader ahead of BIL.

Reasons for the suffering

• The main reason why Britannia suffered was the back-end research and development and the potential for massive growth at a time when India's economy was booming

• Britannia was also completely unprepared internally for the irrational competition from ITC and parle.

britannia’s fresh recipe for growth

• Investments in people, brands and infrastructure, improved efficiencies and cost reduction, and new choices for consumers.

• It has sharply segmented its go-to-market strategy and, unlike an earlier focus on simply increasing the number of outlets it covered, Britannia now has separate teams for general sales, modern trade, institutions, and semi-urban and rural markets. It is building strong capabilities in each of these segments.

Product portfolio

Health andWellness

Design and lifestyle

Each category is headed by a senior executive responsible for outlining distinct growth strategies.

Health and wellness

Nutri choice health biscuits

Tiger glucose

Design and lifestyle

• Good day pic

Treat fruit rollz

achievements

• For the year ended March 2008, biscuits brought in about 90% of Britannia's net sales of $650 million.

• Its annual growth rate is 12.5%• Cream biscuits account for nearly 30-40% of

the market share.

Advertising strategy

• Britannia has doubled its ad spending in the last three years

• Britannia plans to increase advertising and marketing spending to 10% to 12% of sales over the next few years from a current 7%.

Recommended strategies…….

• Sources inside Britannia say revenue targets are $1.25 billion by 2010 and $3 billion by 2015

• It has devised a long-term distributed manufacturing strategy,

• put in place a continuous replenishment of supply efficiency system, and

• strengthened its supply chain management

recognitions

Top FMCG company in india

“There is a huge opportunity out there in the market and it is up for grabs," she says. "What we make of it depends on our ability to commercialize the opportunity. We want to be among the three fastest-growing FMCG companies in the country and to grow profitably.“

- vinita Bali