Research methodology

Research problem- To study the consumer buying behaviourofBritannia biscuits.

Data source- primary and secondary

Research approach- survey approach

Research methodology- Exploratory research

Exploratory research is conducted into an issue or problem where there are few or no

earlier studies to refer to. The focus is on gaining insights and familiarity for later

investigation. Secondly, descriptive research describes phenomena as they exist. Here

data is often quantitative and statistics applied. It is used to identify and obtain

information on a particular problem or issue. Finally causal or predictive research seeks

to explain what is happening in a particular situation. It aims to generalise from an

analysis by predicting certain phenomena on the basis of hypothesised general

relationships.

Research instruments- Questionnaire

Primary data- Questionnaire

Sampling plan

Sample – mall| supermarket

Sample method- random sampling

 A Random sample is one chosen by a method involving an unpredictable component.

Random sampling can also refer to taking a number of independent observations from the

same probability distribution, without involving any real population. The sample usually

is not a representative of the population of people from which it was drawn— this

random variation in the results is termed as sampling error. 

Sample size- 50

1

Introduction

Britannia Industries ltd. is India’s one of largest producer of biscuits with delightful

product range to offer variety and choice to consumers.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.

Having such huge product range company need to more concentrate on preparing budget

for the same and implementing it to achieve objective and goals of management.

Preparing budget is the fundamental need of any organization and it communicates plan

to everyone, to set a target and to draw a plan, it forecast coordination of activities.

As preparing budget is not only important concern for the company but to have the

budgetary control is also necessary to achieve the goals and to control the negative

variance. And thus same topic attracted to taken up for the study.

Project is prepared under the title of Budgetary Control and Financial planning. Project

covers the brief introduction of Britannia industry and Biscuit Industry also it includes

How Britannia Industry Limited prepares the effective Budget and how they calculate

and control the variance after comparison between actual figures with budgeted figures.

Understanding the process of the preparing budget and who all concern departments

involved in the process.

In organization each department need to prepare its own budget and have to scale the

boundaries within which they have to spend and they have to achieve the target so budget

is the important for each and every department. Now a days controlling variance is

became the main concern in front of management and thus it is useful to study variance

control and measure taken on adverse variance.

By understanding the process of preparing budget and understanding the requirement of

various monthly & weekly management reports of fluctuations, will give the loopholes in

the process.

2

Industry Overview

Industry Profile

Fast Moving Consumer Goods

FMCG Industry:

FMCG are products that have a quick shelf turnover, at relatively low cost and don't

require a lot of thought, time and financial investment to purchase.

• Fast Moving’ is in opposition to consumer durables such as kitchen appliances

that are generally replaced less than once a year.

• Three of the largest and best known examples of Fast Moving Consumer

Goods companies are Nestlé, Unilever and Procter & Gamble.

• The Indian FMCG sector is an important contributor to the country's GDP. It

is the fourth largest sector in the economy and is responsible for 5% of the

total factory employment in India .

• This has been due to liberalization, urbanization, increase in the disposable

incomes and altered lifestyle.

• The lower-middle income group accounts for over 60% of the sector's sales.

Rural markets account for 56% of the total domestic FMCG demand

3

ABOUT EVOLUTION OF BRITANNIA

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.

The beginnings might have been humble-the dreams were anything but. By 1910,

with the advent of electricity, Britannia mechanized its operations, and in 1921, it

became the first company east of the Suez Canal to use imported gas ovens.

Britannia's business was flourishing. But, more importantly, Britannia was acquiring

a reputation for quality and value. As a result, during the tragic World War II, the

Government reposed its trust in Britannia by contracting it to supply large quantities

of "service biscuits" to the armed forces.

As time moved on, the biscuit market continued to grow… and Britannia grew along

with it. In 1975, the Britannia Biscuit Company took over the distribution of biscuits

from Parry's who till now distributed Britannia biscuits in India. In the subsequent

public issue of 1978, Indian shareholding crossed 60%, firmly establishing the

Indianans of the firm. The following year, Britannia Biscuit Company was re-

christened Britannia Industries Limited (BIL). Four years later in 1983, it crossed the

Rs. 100 crores revenue mark.

On the operations front, the company was making equally dynamic strides. In 1992,

it celebrated its Platinum Jubilee. In 1997, the company unveiled its new corporate

4

identity - "Eat Healthy, Think Better" - and made its first foray into the dairy

products market. In 1999, the "Britannia Khao, World Cup Jao" promotion further

fortified the affinity consumers had with 'Brand Britannia'.

Britannia strode into the 21st Century as one of India's biggest brands and the pre-

eminent food brand of the country. It was equally recognized for its innovative

approach to products and marketing: the Lagaan Match was voted India's most

successful promotional activity of the year 2001 while the delicious Britannia 50-50

Maska-Chaska became India's most successful product launch. In 2002, Britannia's

New Business Division formed a joint venture with Fonterra, the 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.

5

COMPANY PROFILE

COMPANY’S BACKGROUND

Britannia was incorporated in 1918 as Britannia Biscuits Co LTD in Calcutta. In 1924,

Pea Frean UK acquired a controlling stake, which later passed on to the Associated

Biscuits International (ABI) an UK based company. During the 50’s and 60’s, Britannia

expanded operations to Mumbai, Delhi and Chennai. In 1989, J M Pillai, a Singapore

based NRI businessman along with the Group Danone acquired Asian operations of

Nabisco, thus acquiring controlling stake in Britannia. Later, Group Danone and

NusliWadia took over Pillai’s holdings.

Plant Location

Britannia's plants are located in the 4 major metro cities – Kolkatta, Uttaranchal, Delhi,

and Chennai. A large part of products are also outsourced from third party producers.

Dairy products are out sourced from three producers - Dynamic Dairy based in Baramati,

Maharashtra, and Modern Dairy at Karnal in Haryana and Thacker Dairy Products at

Howrah in West Bengal.

6

Today, Britannia is the largest biscuit and bakery company in the country with the daily

sales turnover of over Rs. 200 Crores. It is the market leader in the 1.3-million

tonneIndian biscuits industry with a 31% share. It has maintained market leadership with

a 48% value market share in the organized sector.

Britannia core businesses constitute of Bakery and Dairy products. Bakery products

account for 90% of the revenues and include Biscuits, Bread and Cake & Rusk. Dairy

products contribute to 10% of Britannia’s annual sales turnover of Rs 34,014 mm.

Throughout its existence, Britannia has operated on the principles of providing products

to the consumers that are healthy and tasty. This is brought about by the use of high

quality ingredients with a strong focus on ‘naturalness’ and modern manufacturing

practices. The company today has a wide range of bakery products in the biscuit, bread

and cake segment. It has trimmed down its wide product portfolio by reducing the

products from 35 to around 25 and began to focus on value-added instead of low-margin

products.

With the launch of Tiger brand, it has taken a plunge in the low-end category, taking

competition head on with Parle, which is the leader in this segment. The company has

also diversified within dairy and bakery products to enter the butter, cheese and ghee

markets. The portfolio was expanded with the launch of butter, pure flavored milk in tetra

packs and UHT milk.

Britannia has built an enviable retail distribution network, which services 400,000 retail

outlets in 2,200 towns with the help of 2,500 distributors. The company is aggressively

expanding its network with a bias towards the rural markets recently, in the ethnic food

segment, the company introduced a new range of traditional ‘namkeens’ in Mumbai

called Britannia Snax. The new range includes seven varieties of traditional namkeens

like 'Bikaner kiBhujia' and 'Rajasthani AluBhujia' in a price range of between Rs 5 and

Rs 20.The company is in the process of setting up a Greenfield Biscuit Project in

Uttaranchal to augment its production capacity, entailing an investment of about Rs 55.2

crore. This plant will have capacity to produce over 45,000 tonnes of two or three

7

varieties of biscuit per annum. So after over seven decades of being inseparable part of

life in India, Britannia is now set to usher its customers into a healthier and tastier future.

The branded health alternative available to the consumers constitute of Nestle, Amul, etc.

while the snacking and indulgence section is led by ITC &Haldirams. Among the new

entrants the ones posing more threats to Britannia include Kraft Foods. Kraft which has

very recently acquired Cadbury already has at its disposal a variety items that occupy the

mid-segment, like orea. Parle is currently concentrating on brands like Hide ‘n’ seek and

smart chips so that they can get a premium as well as take advantage by projecting

healthy snacking. Britannia which has an overall market share of 31% (nationally) has a

majority share in south & East of India. Britannia is the market leader in all the category

except Glucose. The objective that the marketing team of Britannia follows is, ‘No

Penetration Building, Go for Consumption Building’.

TARGET MARKET FOR SOME BRITANNIA PRODUCTS

Brand Target Market

Tiger Mother and child

Good-Day For all

Marie House-Wife

Nutri choice Health conscious consumers

Treat Kids & Youth

Milk Bikis Kids

Bourbon Youth

Other claim made by Britannia for better health are:

Zero Transfat

Fortification with nutrients

8

MISSION,VISION, VALUES, SUCCESS OF BRITANNIA COMPANY

Mission

We, the Britannia team, will successfully complete the Britannia development, on stream

1 October 1998, fulfilling all cost, value, and acceptance criteria.

Vision

Britannia will be viewed as a significant step forward in large field developments with

high safety and environmental standards and achieving excellent financial margins by

focusing on minimizing costs through the adoption of best practices.

Values

Value everyone’s contribution by empowering them to achieve

Success

Continuously improve business and technical practices. Encourage creativity to challenge

tradition. Develop individual and team skills. Build win-win relationships with suppliers

and contractors.

9

Objectives of Britannia company

High safety standards.

Reliability and quality.

Lowest-cost safe operator.

High environmental and ethical standards.

Maximization of economically recoverable reserves.

Achievement of lowest compatible capital cost.

Employee Satisfaction

A number of qualitative methods for accumulating feedback from employees were used,

and most involved face-to-face communication. The executive team made a collective

commitment to being visible across the organisation, talking to people and eliciting

feedback, including attendance at Mutual Understanding meetings.

Neville Richardson ensured he was at the forefront of this, and his “Captain’s Table”

initiative– informal lunch meetings with groups of employees from across the

organisation – washugely popular and successful. For those who preferred a less ‘direct’

way of providing the CEO with feedback, a ‘Tell Neville’ facility was introduced on

BritNet

10

The Learning of Britannia about their employees

Why has the Britannia change programme been so successful?

What the Britannia experience demonstrates is that the highest levels of employee

engagement can only occur when there is demonstrable commitment from the

organisation’s leadership. Good leaders will be visible, able to instil pride among

employees and promote a personal growth mindset. They will also show a genuine

passion for creating a positive working environment, engender a spirit of trust and co-

operation, and unite people with a sense of common purpose. For such a change

programme to be successful, leaders also need to create an organisational structure that

provides substantial opportunities for personal development, and where feedback from

across the business is solicited, and acted upon, systematically. Building on the strengths

of the organisation has created a distinctive culture and some compelling results. The

results Of the 24 key performance measures that were agreed at the start of the change

programme, Britannia is on or ahead of target in over 90% of them, including the

employee satisfaction measure.

In the Viewpoint survey carried out in November 2005, [95] per cent of employees across

the Group declared themselves to be ‘proud’ of Britannia, compared to [86] per cent two

years previously. And those who said they would recommend Britannia to others had

risen from [75] per cent to [90] per cent. The focus on the core business has had dramatic

results, with record profits and record mortgage lending in 2005, and the successful

integration of Bristol & West accelerating the growth opportunities for the future.

Mutuality is clearly having real resonance with members, with over 400,000 of them

voting for Britannia to stay mutual (versus 19,000 in 1996).

11

“The culture within Britannia has really changed people are actively wanting to make a

real difference for the benefit of the customer”

Britannia measured the levels of employee engagement based on model

below:s

12

Advocacy

proud

of

britannia

products

and

services

Commitmentintellectual

and

emotional

buy

in

to

mission

goods

and

values

Satisfactionemployees

get

what

they

need

in

terms

of

stimulation,

recognition,

support

and

growth

The Origin of 'Eat Healthy Think Better’

Britannia -the 'biscuit' leader with a history-has withstood the tests of time. Part of

the reason for its success has been its ability to resonate with the changes in

consumer needs-needs that have varied significantly across its 100+ year epoch.

With consumer democracy reaching new levels, the one common thread to emerge

in recent times has been the shift in lifestyles and a corresponding awareness of

health. People are increasingly becoming conscious of dietary care and its

correlation to wellness and matching the new pace to their lives with improved

nutritional and dietary habits. This new awareness has seen consumers seeking foods

that complement their lifestyles while offering convenience, variety and economy,

over and above health and nutrition.

Britannia saw the writing on the wall. Its "SwasthKhao Tan Man Jagao" (Eat

Healthy, Think Better) re-position directly addressed this new trend by promising

13

the new generation a healthy and nutritious alternative - that was also delightful and

tasty.

Thus, the new logo was born, encapsulating the core essence of Britannia - healthy,

nutritious, optimistic - and combining it with a delightful product range to offer

variety and choice to consumers.

FMCG SECTOR

Fast Moving Consumer Goods (FMCG) goods are popularly named as consumer

packaged goods. Items in this category include all consumables (other than

groceries/pulses) people buy at regular intervals. The most common in the list are toilet

soaps, detergents, shampoos, toothpaste, shaving products, shoe polish, packaged

foodstuff, household accessories and extends to certain electronic goods. These items are

meant for daily of frequent consumption and thus it have a high return .

A major portion of the monthly budget of each household is reserved for FMCG

products. The volume of money circulated in the economy against FMCG products is

very high.

14

Number of products the consumer use is very high. Competition in the FMCG sector is

very high resulting in high pressure on margins. FMCG companies maintain intense

distribution network.

Companies spend a large

portion of their budget

on maintaining

distribution networks.

New entrants who wish to

bring their products in the

national level need to invest

huge sums of money on

promoting brands.

Manufacturing can be

outsourced. A recent phenomenon in the sector was entry of multinationals and cheaper

imports. Also the market is more pressurized with presence of local players in rural areas

and state brands.

BOARD OF DIRECTORS

15

NAME DESIGNATION

Mr. Nusli Neville Wadia Chairman

Mrs. Vinita Bali Managing Director

Dr. A.K. Hirjee Director

Mr. Auijit Deb Director

Mr. Jeh.N. Wadia Director

Mr. KekiDadiseth Director

Mr. Nasser Munjee Director

Mr. Ness NusliWadia Director

BRITANNIA’S PRINCIPLE ACTIVIY

Asian Paints (India)

Cadbury India

Britannia Industries

Procter & Gamble Hygiene and Health Care

Marico Industries

Britannia Industries Limitedis an Indian food-products corporation based in Kolkata,

India. It is famous for its Britannia and Tiger brands of biscuit, which are popular

throughout India. Britannia has an estimated 38% market share. The Company's principal

activity is the manufacture and sale of biscuits, bread, rusk, cakes and dairy products.

THE TOP 10 COMPANIES IN FMCG SECTOR

SR.NO. COMPANIES SR.NO. COMPANIES

1. Hindustan Unilever Ltd. 6. Asian Paints

2. ITC 7. Cadbury India

3. Nestle India 8. Britannia Industries

4. GCMF (AMUL) 9. Procter & gamble hygiene health

and care

5. Dabur India 10. Marico Industries

16

- Parle tops the list in terms of volume

– Britannia is the no. 1 in value terms

Biscuits category with annual production in percentage

17

13%

10%

13%

12%

8%

MARIECREAMCRACKERSMILKOTHERS

Britannia produces so many kinds of biscuits targeting audience from children up to old

people. Their targeted audience covers all type of age group people. Marie is mostly

loved by all people, and also has got a good position in the market. Followed by crackers

its mostly recommended for the patients as its quite healthy. Milk biscuits has being

playing a major role in the children targeted sector where, children are still found of it as

it is tasty as well as healthy. Cream biscuits, these biscuits are mostly targeted for small

kids as they are mire interested in cream biscuits and even company has come out with

different creamy flavours which attract the kids a lot.

In terms of volume biscuit production by the organized segment is estimated at 1.30

million tones . In the organized sector, the industry is dominated by Britannia and Parle,

which account for 70 per cent of the industry's volumes. Britannia’s market share stands

at 31%. Britannia's market share in the medium and premium varieties is significantly

higher.

Biscuit is a hygienically packaged nutritious snack food available at very competitive

prices, volumes, and different tastes. According to the National Council of Applied

Economic Research (NCAER) Study, biscuit is predominantly consumed by people from

the lower strata of society, particularly children in both rural and urban areas with an

average monthly income of Rs. 750.00.

Biscuits can be broadly categorized into the following segments:

18

In recognition of industry's obligations towards the community, being a part of it, biscuit

manufacturers supply biscuits to the social welfare agencies in all States for the benefit of

school children, senior citizens, and other needy sections of the society. FBMI

(Federation of Biscuit Manufacturers of India) Members have always responded

positively to appeal and rush truckloads of biscuits to the people affected by earthquakes,

floods, famine etc.

Though India is considered as the third largest producer of Biscuits after USA and China,

the per capita consumption of biscuits in our country is only 2.1 Kg., compared to more

than 10 kg in the USA, UK and West European countries and above 4.25 kg in south East

Asian countries, i.e. Singapore, Hong Kong, Thailand, Indonesia etc. China has a per

capita consumption of 1.90 kg, while in the case of Japan it is estimated at 7.5 kg.

Biscuit is a comparatively low margin food product in the PMCG (Packaged Mass

Consumption Goods) sector. This commodity is price sensitive.

Biscuit manufacturing as well as other bakery products like Bread etc are agro based

industries, with the major inputs-wheat, flour, sugar, milk, vegetable oil etc. all being

agriculture produces.

Britannia brands and products enjoy unparalleled consumer

penetration and reach

19

Britannia brands reach more than 300 million homes across India.

More than 40% of Britannia consumption happens in rural India.

Britannia sells about 6 billion packs of biscuits products every year.

Britannia products are available through more than 3 million stores across India.

Britannia has a leader presence in very frequently consumed Bakery and Dairy

categories.

RURAL DEVELOPMENT MADE BY BRITANNIA

20

BRITANNIA BISCUITS AND THEIR TAGLINES

21

BRITANNIA BISCUITS THEIR TAGLINES

Britannia cookies “Zindagi Mein Life”.

Britannia Tiger Biscuits “IRON ZOR- Helps make mind sharper and body

stronger”.

Britannia Good Day “IskaToh Ho Gaya Re Good Day”.

Britannia Bourbon “Smooth, Rich and Delicious Bitter”.

Britannia 50-50 “Hatke”.

Britannia Marie Gold “Fully Loaded Marie For A Fully Loaded Life”.

Britannia Timepass “Fried is gone, Baked is in”.

Britannia Little Hearts “DilSabka Actually Sweet Hai” .

Britannia’s commitment : Removing the Bad

Britannia is the first food company in India to become a Zero Trans Fat company.

Britannia Tiger's 'AltiPalti' Offer for Children

AltiPalti as the name suggests is an exciting offer, which introduces children to a playful

but functional range of gifts. Lenticular or 3D picture collections are a popular

22

phenomenon amongst children and this year, Britannia Tiger the most popular biscuit

brand in the country will reward children with Lenticular gifts such as rulers, book labels,

bag tags and stickers on the purchase of every Rs. 3 and Rs. 4 pack of Britannia Tiger.

Each gift has the animated Tiger mascot on it doing a series of things like skate-boarding,

cycling, dancing and more.

The new offer is currently available in retail stores across the country. Consumers can

also witness attractive dispensers and Britannia Tiger branded posters and display

material based on the AltiPalti theme in stores.

A life size Tiger mascot is also slotted to visit select schools distributing the 3D

collection to lucky children. This could well be the chance for kids to photograph

themselves hand in hand with a Tiger.

The Britannia Tiger AltiPalti offer is an innovative yet indulgent proposition that has

already become a craze amongst children of all age groups across the country. The

AltiPalti offer is seen as the most exciting promotion ever from the brand to reward its

loyal consumers.

About Britannia Tiger

23

Britannia Tiger was launched in 1997 to cater to consumer needs in the growing glucose

biscuit category. It subsequently became the largest brand in Britannia's portfolio in the

very first year of its launch. Britannia Tiger has since grown from strength to strength,

establishing itself as a formidable player in the glucose biscuits category.

The brand was re-launched in June 2005 with a new marketing mix including a superior

product, refreshed packaging and new communication. The re-launch this year has helped

Tiger bolster its growth in the highly competitive glucose biscuit category.

Britannia Tiger today partners winners across the length and breadth of our country and

has become the first choice of today's mother to enable her child to win in life by tapping

into her child's inner pool of energy and fun. Tiger is the modern mother's choice for

providing the best collaborative care for her child.

COMPARISON STUDY BETWEEN BRITANNIA, PARLE AND ITC

PRODUCTS

BRITANNIA BISCUITS ITC BISCUITS PARLE BISCUITS

24

The Rs 3,600-crore premium cream biscuit market has turned hyper competitive with

Cadbury'sOreo and ITC's Sunfeast brands biting into the share of Britannia Industries,

and Parle Products planning to enter super-premium creams.

The numbers reveal how Oreo and Sunfeast (Dark Fantacy , Dream Cream and Premium

Cream) creamed Britannia to garner shares of 6% and 10.6%, respectively during January

to September 2011. The Sunfeast portfolio gained the most with 7% jump in value share.

Britannia's combined value share of the premium cream biscuit portfolio (Bourbon and

Treat) declined from 18% in January to 14.7% in September , as per Nielsen data

available with TOI. This has narrowed the share gap in premium creams between

Britannia and ITC.

25

"The cream category contributes less than 20% to the overall Britannia business.

However, in the recent past key brands like Bourbon and Treat have found much stronger

traction and appeal with consumers and have grown faster than the overall biscuit market.

Bourbon , in fact, has almost doubled and held on to its share of 9% year-to-date (9.2%

last year)," said a Britannia spokesperson.

"Competitive activity has also been there in different categories including a high decibel

launch of Oreo which has a share of 1 % in the biscuit market year to date," the Britannia

spokesperson said, adding, "with innovative and superior consumer delivery, Britannia

creams will sustain pricing."

Oreo, which was launched early this year, is said to have clocked in sales on the back of

high consumer spends, which went up by 51% in the second quarter ended September 30

this year as compared to the first quarter. ITC investments behind Sunfeast premium

cream biscuits were even higher at 114% in the last two sequential quarters. In contrast,

Britannia's spends on the premium cream biscuits increased just 6%.

Oreo hit the market with an aggressive introductory offer of Rs 10 per pack, a level most

Indian households can afford to splurge on. Cadbury India, which is now owned by Kraft,

adopted a strategy to drive awareness and rapid trials. "We reached out to consumers

across 14 cities through our 'Oreo Togetherness' campaign . We also leveraged the digital

medium in a big way," said Chandramouli Venkatesan, director , snacking and strategy,

Cadbury India. Oreo's price was gradually upped to Rs 12 based on the consumer

response.

ITC too upped the ante with its premium range of cream offerings receiving "positive

response from consumers with sales volumes recording impressive growth" , according to

Chitranjan Dar, divisional chief executive, ITC Foods division. Now, Parle Products, the

largest domestic biscuit maker, plans to enter the super-premium cream segment.

MARKET SHARE OF BRITANNIA, PARLE AND ITC

26

First CMI department of the BIL start ascertaining what was market growth rate for

Current Year and what will be the rate for the coming year. When we talk about market

growth there are two aspects which affect the market growth rate i.e. population which is

goes on increasing year on year and second one is consumption pattern of the people and

competition in the market. On these basis CMI department predict the growth rate for the

Coming Financial Year. Last year will be base year. Now suppose say for example last

year’s biscuit market was 1000crores and value and volume share is as follows

35% - BIL share

35% - Parle Share

10% - ITC Share

20% - Others

BIL35%

Parle35%

ITC10%

Others20%

Market Share

So in this case BIL’s Volume/Value share is 3500 Cr. And CMI department predicts the

Growth of market will be 10% then market will be of 1100crores then BIL sharing 3850

27

Cr. And they also have to add their own growth rate which comes from their annual plan.

So adding up BIL’s growth Rate (35% + 8% = 43%) now Company will be sharing 43%

Of 1100Crs. i.e. 4730Crs. will be the market share for the coming year and on this basis

they plan further operations of different Functional Departments.

These above data goes to Sales Department. Sales department take it as a target for the

year. Sales department project the demand region wise and brand wise and it is estimated

in value and volume. Further demand splits into the SKU region wise

once the target is decided it will be segregated into different categories. BIL have

following categories for Biscuits.

Glucose

Cookies

Crackers

Marie

Milk

Health

Cream

According to forecasted demand and last year’s data analysis target segregated into above

categories

18%

22%

15%10%

15%

10%10%

Company's Target

glucose

Cookies

Crackers

Marie

Milk

Health

Cream

28

Now after segregating into categories each category again divided into region wise

according to the last year’s performance of each brand under each category. Then the

region wise target is set, for example Cookies share is 22% of overall company’s Biscuit

target then it will be again divided into region.

Say, suppose company’s target is 100 tones, then Cookies share is 22 tones. So 22 tones

will be divided into five regions.

Chennai 1, 5

Chennai 2, 4Kolkatta,

6

Delhi, 2

Mumbai, 5

After deciding the region wise target, SKU volume is budgeted and it is done by the

respective Brand Team or Brand Manager considering each SKU’s performance for the

previous year. Each region has a depot according to the requirement and business in the

region. On the basis of last year’s contribution of each depot in the sales and performance

in the various parts of region this SKU’s budgeted volume is again distributed into

various depots. This way revenue budget of value and volume is prepared and it splits

into quarters.

Next part is contributed by the planning department they get inputs of projected demand

quantity of SKUs region wise and depots demand, then their role is to decide from which

factory to produce and supply to depots so all depots should have all types of sufficient

stock. On this planning department consider various factors like whether particular

factory have capacity and capability to meet requirement of depots or no.

29

Next step is to take decision of FSD i.e. from which Factory to produce which SKUs and

how much it is produce for which depot? Now this is very complex decision because BIL

have variety of SKUs and number of CPs & factories in this case there are number of

permutations and combination will come which is not feasible to take decision. BIL use

one tool to take this decision which is outsourced, where all the information inserted and

tool gives the optimal cost of sourcing and get the output of combinations of factory,

SKU & depots (i.e.FSD).

Once the FSD decision is taken then Variable Budget is to be made. Material cost should

be determine. For BIL main costs are Raw material, Packing Material, Manufacturing

cost and Transportation cost. Manufacturing each product quantity input of Raw Material

and Packing Material is ascertained from Bill of Material.

Important part of the variable budget is to projection of the Raw Material and Packing

material which is done by the Purchase department. While projecting the rate they

consider Commodity Inflation rate, overall inflation, economic conditions and agreement

with supplier if any. Following chart will explain Commodity inflation and also the

calculations with MPV impact.

DISTRIBUTION SYSTEM

30

Britannia Industries Limited (BIL) [50]

Company Warehouse [45]

Distributor [2600]

Wholesaler Rural Preferred Dealer (RPD)

Britannia Industries Limited (BIL) has got 50 company all over the country out of which

ithe company has got 45 warehouses of its own. Britannia company has 2600 distributors

all over the country which are a combination of wholesaler and rural dealers and its total

outlet are almost about 3500000.

DISTRIBUTION FOOTPRINT

31

Outlet [3500000]

North

South 1

EastWest

3500000 outlets

South 2

Increase penetration and accessibility

Influence mix at point of sale Increasing competition – competitive

edge Reduce uncertainty and dependency

Low dealers per lakh Low direct : indirect distribution

reach

DISTRIBUTORS

THE MAIN DISTRIBUTORS

POINTERS ROHINI DISTRIBUTOR YASH ENTERPRISES

740 outlets

4 salesman and 5

delivery vehicles

Average sales-45 lakhs

940 outlets

4 salesman and 4 delivery

vehicles

Average sales-25 lakhs

BEFORE

32

Increase penetration and accessibility

Influence mix at point of sale Increasing competition – competitive

edge Reduce uncertainty and dependency

Summer interns prospecting for new outlets

Data from A C Nelson Prospecting Delhi Geo-tagging - Bangalore

Prospecting was done in

July

800 new outlets were

found

373 outlets were finally

found viable

Prospecting was done in

August

860 new outlets were found

300 outlets were targeted

More than 200 outlets

were added

2 new salesman were

hired and 1 more

delivery vehicles were

introduced

New beats were activated

from 1st August.

More than 200 outlets were

added

1 new salesman was hired and

1 more delivery vehicles was

hired for 3 days a week

New beats were activation

from 1stSeptember.

PROSPECTING

ACTIVATION

ACTIVATION OF OUTLETS

New outlet list from prospector was split according to the geography.

Beatwise list was prepared and target was given to each salesman to activate new

outlet.

Salesman were given training to activate new outlet.

Catalogues were made available to salesman .

New salesman was under training and shadowing other salesman.

FOLLOWING ARE THE COMPANIES AS PARTNERS OF BRITANNIA

HELPING IN RURAL DEVELOPMENT

33

The following chart gives an overview of the two prolonged approach

towards the Britannia marketing.

34

A PRODUCT MARKETING – A TWO PROLONGED APPROACH

Design and delivery of customer needed product worked out by in keeping view corporate objective and environmental constraints

Collective Approach

Selective Approach

Objectives

CUSTOMERRELATIONSHIP MANAGEMENT WITH BRITANNIA

Definition of CRM by Dyche: “The infrastructure that enables the delineation of and

increase in customer value, and the correct means by which to motivate valuable

customers to remain loyal – indeed to buy again.”

Customer Relationship Managementis the establishment, development, maintenance and

optimization of long-term mutually valuable relationships between consumers and the

organizations. Successful customer relationship management focuses on understanding

the needs and desires of the customers and- is achieved by placing these needs at the

heart of the business by integrating them with the organization’s strategy, people,

technology and business processes.

35

To satisfy all customer by the product and to develop positive image of the company in terms of quality of thr service.

To develop sustainable relationship with selective high value customer and making efforts for their retention for added value to the bank.

To introduce system of objective assessment of the standard of customer service to find out areas and cause of deficiencies and take appropriate corrective action.

To concentrate on selective valuable customer through CRM to find out their latent and felt needs and to develop ways and means to satisfy them to ensure sustainable relationship.

1. definition of target group of customer and their expections.

2. development of proper marketing mix in terms of product, price, place and promotion.

At the heart of a perfect CRM strategy is the creation of mutual value for all the parties

involved in the business process. It is about creating a sustainable competitive advantage

by being the best at understanding, communicating, and delivering, and developing

existing customer relationships in addition to creating and keeping new customers.

CRM has been a hot topic in industry for a relatively short period of time. It formalizes

best practice into a strategy that enables a firm to indentify its customers and target them

in a way which will make them ore profitable and loyal. Fairhust argues that “the best

example of CRM still remain the one-to-one services provided by shopkeepers who know

their customers personally”.

Britannia is a Mutual Insurance Association of shipowners throughout the

world, which is registered in the United Kingdom and regulated by the UK

Financial Services Authority.

The fundamental distinction between a Mutual and other types of insurance company is

that a Mutual is not trying to make a profit, has no shareholders and exists purely for the

benefit of its Members. The funds of the Mutual are invested and the investment return is

used to benefit the Members. The Members are both the insurer and the insured. Mutual

insurance is collective self-insurance which operates at cost.

A Committee, comprising up to 30 Directors - 28 elected from the membership -

determines matters of policy on the advice of the Managers, Tindall Riley (Britannia)

36

Limited to whom the day-to-day management of Britannia is delegated. The Chairman

and Chief Executive of the Managers are members of the Committee.

Formation and Development

On May 1 1855, the day the UK Merchant Shipping Act 1854 came into force, the

Shipowners' Mutual Protection Society commenced business in London as the first

shipowners' Protection Association. Whilst the 1854 Act did provide shipowners, for the

first time, with a measure of limitation of liability for loss of life and personal injury - it

stipulated that the value of the ship for limitation purposes should be assessed at not less

than £15 per ton - many ships in fact had a lower value and the shipowner's liabilities

potentially exceeded the value of his ship. It was such liabilities, not covered by the

conventional marine market, which the Protection Society met. 

The Britannia Steam Ship Insurance Association was formed in 1871 as a mutual

insurance association for steamships with Classes 1 and 2 covering hull and machinery

risks and freight risks respectively. Five years later Class 3 of Britannia took over the

protection risks which had until then been covered by the Shipowners' Mutual Protection

Society. The first two Classes were subsequently wound up but Class 3 has continued to

the present day to cover the liability risks of shipowners. In 1886 Britannia became a

Protection & Indemnity (P&I) Club by treating cargo or 'indemnity' risks separately from

the other 'protection' risks. Over succeeding years cover was widened to meet the

increasing liabilities of shipowners.

In 1899 Britannia joined five other P&I Clubs in a Pooling Agreement to share the cost of

exceptionally large claims. Today thirteen Clubs are parties to the Agreement. Together

they cover over 90% of the world's merchant fleet and form the core of the International

Group of P&I Clubs.

Cover

Since its inception the cover provided by the Association has developed to meet the needs

of different types of ships and to respond to the impact of new legislation and regulations

37

around the world. For example, cover was expanded to include new oil pollution

liabilities under the 1969 Civil Liability Convention which followed the 1967 Torrey

Canyon disaster. Oil pollution has since become an increasingly high profile risk.

Nevertheless, traditional risks involving loss of life, personal injury, collisions, property

damage and cargo claims still account for much the greater part of the cost of claims

insured by Britannia.

While Class 3 (P&I) is by far the largest area of Britannia's business, it also conducts

insurance business through Class 6 (Freight, Demurrage and Defence - legal expenses

insurance).

Growth

Britannia has grown substantially in the last 50 years. In 1960 the gross tonnage entered

in the Association was 3 million. By 1970 it had reached 10 million and by 1980 had

quadrupled to 40 million. Britannia now insures approximately 138 million tons of

owned and chartered tonnage and is one of the largest P&I Clubs, accounting for over

10% of the world merchant fleet, with many of the world's best-known ship owners as

Members.

Service, Strength and Quality

Britannia is determined to maintain a position at the forefront of the P&I insurance world.

The principal factors which have governed its successful progress and which will provide

the foundation for its future development are:

A high quality membership selected from the world's leading ship owners.

38

A thorough understanding of Members' businesses backed up by a realistic risk

management programme.

Prudent underwriting leading to unrivalled predictability of insurance cost.

The application of legal, marine and commercial expertise in the active management

of claims so as to minimise Members' ultimate liabilities.

A successful investment policy which has made a substantial contribution to the

reduction of Members' costs.

A world-wide network of correspondents, including many who are exclusive to

Britannia, who provide assistance to Members on all aspects of P&I.

A highly motivated management team which keeps close control on all aspects of

the business.

Treasury

Treasury management

Treasury management as a set of techniques that act on the short-term liquidity of a

company, and at the same time affect those factors and processes that translate

immediately into cash, with the ultimate aim of increasing the profitability of the

company and improving working capital management.

39

Specifically, Treasury management handles excess cash which company having at that

point of time. Investing into different kinds of financial instruments like debt papers,

mutual funds, equity, corporate bond, government bond, commercial papers, etc. in a

fashion that company can de-invest whenever company is in need of that money. It also

involves forecasting future needs for funding and seeking the best alternatives for

obtaining it. Corporate Treasury has similar to investment banking.

When we talk in perspective of Britannia Treasury operation comes under the control of

CFO of the concern or the Vice-President/Director of Finance. Investment decisions and

limits are fixed in the board meeting.

Treasury Management refers to efficient management of liquidity and financial Risk in

business.

The responsibilities of Treasury Management include:

Management of cash, while obtaining the optimum return from surplus funds.

Management of foreign exchange rate risks, in accordance with the Company

policy.

Providing long-term and short-term funds as required by the business, at the

minimum cost.

Maintaining good relationship and liaison with financiers, lenders, bankers, and

investors (shareholders) and

Advising on various issues of corporate finance like capital structure, buy-back,

mergers, acquisitions, disinvestments etc.

40

Britannia Nutrition Foundation: Building Knowledge creation and awareness

through partnership.

Britannia approach to health and nutrition: targeted health entries, specialized products.

Fortification of popular products. Fortified products made accessible and affordable.

H & N initiatives, Britannia leads through product and thought leadership in India.

Fortification, zero trans fat, health entries, nutrition alliances, Clinton global initiatives,

creating knowledge.

In India a complex inter-network of culture, food behaviours, economic strata and health

levels. Helping health seekers make better snacking choices that are ‘Good For

Thinking’.

41

Peer Comparison

CompanyMarket Cap

(Rs. in Cr.)

P/E

(TTM)

(x)

P/BV

(TTM

)

(x)

EV/

EBIDTA

(x)

ROE

(%)

ROCE

(%)

D/E

(x)

Nestle India44,749.97 44.15 35.13 26.43 90.3 89.9 0.46

GlaxoSmith C H

L 12,684.67 31.66 11.09 16.29 33.8 51.7 0.00

Jubilant Food.8,817.00 75.25 29.42 39.44 43.0 58.2 0.05

Britannia Inds.5,979.89 31.74 11.47 22.15 34.6 24.7 0.92

Cadbury India1,504.25 5.08 1.47 0.00 33.9 42.1 0.03

Swojas Energy 10.99 0.00 0.96 0.00 0.0 0.0 0.47

42

Annual Performance 2010-11

In an environment that is becoming increasingly competitive and in a business whose

profit and profitability are greatly impacted by commodity inflation, profit from

operations increased from Rs. 1,248 MM to Rs. 1,794 MM. Your Company added Rs.

8,194 MM to the gross sales, which grew 23.9%. Earning per Share was Rs.12.16. The

tables below show trends in performance across key parameters:

43

In this Walk the Talk on NDTV 24X7, Vinita Bali, MD, Britannia, talks to The

Indian Express Editor-in-Chief Shekhar Gupta on why malnutrition is a sleeping

emergency that needs urgent action.

Indian Express, 13th September 11

I am at Delhi's Lady Sri Ram College for Women. My guest is one of the most

famous alumni of this college and one of India's most powerful CEOs, Vinita Bali.

Somehow corporate power and success is not something that you associate with

women-anywhere; not just in India.

It's interesting when we look at new recruits coming into the corporate world-it's almost

50-50 now. I remember when I passed out, we were 10 per cent women and 90 per cent

men. Things are changing.

Chocolates, soft drinks, biscuits. Do people tell you, 'Vinita Bali, you spent all your

life selling junk'?

They don't quite use the word 'junk'. Whenever somebody says that to me now, I say

look, I can't argue with the fact that fruit is more nutritious than biscuit, but I can tell you

biscuit is a whole lot more nutritious than a lot of other stuff we eat like puris, papri-

chaat, samosas and gulabjamun.

44

You have been talking a lot about nutrition now. What got you focused on

nutrition? And don't sell biscuits please.

No, this has nothing to do with biscuits. I'd rather say it as a story. Soon after I joined

Britannia and I have to use the biscuit analogy because I was walking through one of our

factories and I saw cases and cases stacked up in the factory. When I asked what these

were for, I was told that these were biscuits that we were making for the United Nations

as part of the World Food Program and these are made according to a WFP recipe and

largely used in areas where there is either a natural calamity or war.

You have been sending quite a lot of that to Afghanistan, for example.

We have been sending it to Afghanistan, Japan (during the tsunami) and Pakistan. Biscuit

is actually a great carrier of both calories and micro-nutrients. The thing is that what you

need at times, whether it comes through biscuits or anything else, is not just macro-

nutrients but also micro-nutrients. So one of the things that struck me was here we are

making calorie-dense and nutrition-dense biscuits for the world.

So you think the debate over malnourishment has got mixed up with the debate over

starvation? Is malnourishment being confused with starvation?

Absolutely. I think if you look at it, nutrition is one of those agendas or priorities that

finds its place nowhere. There is food, agriculture, food security, health and education.

There were some good programmes that we started in our country in 1975 through ICDS

(Integrated Child Development Services), which was aimed at addressing the issue of

malnutrition. But here we are, 35 years later, facing this gory statistic which says one out

of every three children born in this country is born underweight.

You have now been talking a great deal about malnutrition. When you say this to

people, do they assume you want to sell them biscuits? Tiger biscuits with something

in it. If they are malnourished, feed them cake and biscuits.

Not at all. I am not here selling biscuits. I am talking as a citizen of this country who got

into this area through her work. This talk has nothing to with Britannia. I can leave

Britannia and still be as passionate.

45

Supplements as in tablets?

And through food, nutritionally-dense food that can be locally produced. The third thing

is mass fortification of food. An example that has been successful in our own country is

the addition of iodine in salt. Let me give you another example. I lived in Santiago, Chile,

and no children were anaemic there. When I say none, I mean a statistically insignificant

proportion. One of the reason for this is that in 1954, Chile decided to fortify its staple

flour with iron.

Which means all soya sauce sold in China has to have iron in it?

Absolutely. It is a regulation. When we sell any food product, there are certain rules and

regulations and this is something that can be mandated. Countries that have done that like

Thailand, Mexico and Brazil have seen a lot of success.

Is it possible, technically, to fortify rice in India?

I believe so. You can fortify all flour, packaged foods and bread. We are sitting right here

in Delhi where bread is called double roti and we even consume it with daal.

Which five foods would you fortify and how?

I would fortify grains, oil, milk, packaged foods like breads and biscuits, and any drinks,

like juice.

What is the next step you are planning?

There are several things. Two years ago, we created the Britannia Nutrition Foundation.

Every year, during the national nutrition week, we organise a seminar and it has nothing

to do with biscuits that we sell. It brings together people from diverse sectors such as

scientists and nutritionists.

46

AN ARTICLE FROM ECOCONOMIC TIMES

18th March, 2010

"We realised that requirements of trade are evolving," Britannia Industries MD Vinita

Bali told ET. The integration of sales force — Britannia's third in four years — will help

the firm gain from synergies in distribution and replenishment, and expand the reach of

its dairy products manifold. Trade rivals said it's a move to improve profitability of the

country's leading biscuit marketer, with a 31.7% value share. Britannia posted a net profit

margin of 2.9% in the quarter ended September due to high cost of raw materials such as

milk and cashew nuts. "It certainly looks like Britannia is on an overdrive to cut costs," a

senior executive of a competing firm said on condition of anonymity.

The integration of the sales team, the person added, is more to report higher profits than a

response to competition. Another executive of a rival firm said, "If the aim is to cut costs,

it's a good move; but if the aim is to generate topline growth, probably not." Britannia

makes dairy products such as UHT milk, curd, fortified milk brands Actimind, Tiger Zor

and most recently gourmet cheese, for which it has tied up with a factory in the Swiss

Alps.

The dairy division, which accounts for close to 5% of its total sales, has doubled sales in

four years. The integration of dairy with biscuit distribution would expand the reach of

Britannia's dairy products manifold without the company actually making substantial

investments, ChanchalBiyani, an analyst at Mumbai-based brokerage firm GEPL Capital,

said. But the move has led to discontentment among a few distributors because they will

have to invest in cold storage warehousing for dairy products.

Some distributors, who did not wish to be named, have decided to quit the company's

dealership. "Britannia enjoys higher margins for dairy products and they want us to push

it even in institutions such as restaurants and hotels where such products are seldom

used," said a distributor who exited the partnership recently.

47

Not Just A Cookie Cutter

BE Straight talk

Brand Equity 22nd Dec 2010

Health and wellness may be the new mantra for food companies, but Vinita Bali of

Britannia Industries says taste and fun are two ingredients one shouldn't miss out

on, when it comes to the munchies

If there's one aspect of the business that excites Vinita Bali the most, it's the market visit.

It's the field visit that provides the vital ingredients necessary to run the business that

she's responsible for. "One doesn't learn anything by reading marketing books. Marketing

has to be experienced and for that one must step out," says Bali, MD of Britannia

Industries as we meet at the spacious sea-facing Britannia guest house in central Mumbai.

Market visits, she adds, are not just about looking at biscuits' off-take but to know more

about the lifestyle, consumers are leading now-a-days.

Indeed keeping a ear to the ground is crucial if one is in a segment as competitive as

biscuits. And for Britannia, it's not just the biscuits category, but also dairy and bakery

segments which are keeping Bali on her toes. With a phased launch of ActiMind in the

south and expansion of the Daily Bread stores into Goa and Bangalore, the span of

activity for Britannia has moved beyond biscuits. When it comes to the biscuits segment,

Bali says that the business is now divided into health and wellness and lifestyle and

indulgence. According to the Nielsen Company, the total size of the biscuit market is

around 11,000 crore with segments like glucose, cookies and even biscuits in the

indulgence category. Recently ET had reported that Mumbai based Parle Products has a

share of 45% of the biscuit market, compared to Britannia's share of 38%. Bali says that

the segments that are showing growth are not the glucose segment. Citing Nielsen

company for YTD (year-to-date) September 2010, total biscuit category is growing at

16% and glucose is growing at 7%. "And Britannia's first six month growth is 28%," she

says. In the rural markets, the segment that's growing the fastest is cookies, she adds.

"That's because the value for money perception has dropped. Now cookies are available

48

for 5. Therefore, consumers don't mind spending some more money to buy cookies."

Bali is not perturbed about the market share game as she believes the overall market is

showing robust growth. "We have seven power brands and they are showing above 20%

growth. The good news about operating in India is that we have a large population base at

every price points. Right from street food at Chowpatty to gourmet restaurants, there are

enough consumers." Even as the health and wellness plank is slowly enveloping the

market, Bali says one must be careful not to compromise on taste while serving healthy

snacking options. "Beyond a point, one is not going to sacrifice taste for health," she

says. Not wanting to put a finger on the total size of the health and wellness market, she

says there's an increasing awareness among Indian consumers given the numerous

medical problems.

It was in 1997 that Britannia launched the 'eat healthy, think better' platform, which

according to Bali was a very forward looking thing to do. But the first mover advantage

to ride on the health and wellness plank has only acquired currency today. "At that time,

it was more generic to biscuits and it was selling the category more than selling

individual brands or products," says Bali. Over the years, the realisation was that a mere

slogan didn't mean anything. "Consumers need a reason to choose Britannia, why is it

healthy? About two years back, we realised that we were sitting on big equity albeit

latent. We had to activate it and that can be done by giving it credibility. And one

becomes credible when one makes the claims tangible." The company, she adds, then

removed what's not and added what's beneficial to consumers in its products.

From biscuits, Britannia has diversified into dairy and bakery. Is packaged water now the

next step for Britannia? "In a sense we are in beverage because we sell milk. But just

because we are in the foods business it doesn't mean we should be in the water or juice

business. We need to have a certain competency to be relevant and the category has to be

profitable for one to take active interest. Between, bakery and dairy, we are seeing high

double digit growth and we believe we are better off doing what we do best."

CASE STUDY

49

SUCCESS STORY OF TIGER BISCUITS

Britannia Industries Limited (BIL) has emerged as one of the largest food companies in

India by 1999. According to a survey conducted by ORG-MARG and A&M, Britannia

was the fifth most popular brand in India in 1997 and was the only brand belonging to the

food category to figure in the top 10. A strong brand name, superior quality products and

an enviable distribution network had helped BIL become the market leader with 40%

share in Indian biscuits market.

The company has rationalised its product portfolio, pruning the number of brands from

35to 25, so that if it can devote greater attention to key businesses. In 1998, the company

moved into the mass market for biscuits introducing low priced varieties under the

umbrella brand, TIGER. The success of this brand has enabled Britannia expand its

market share in the “Glucose” biscuit market from 10% to 20%. While growth rates in

the mid-priced and premium biscuits have flagged, it is TIGER which has kept

Britannia’s biscuit business roaring. Market share: Britannia-43%, parle-33%, bakeman-

11% and other 13%.

RURAL MARKET- A WORLD OF OPPORTUNITY

50

According to a National Council for Applied Economic Research

(NCAER) study, there are as many ‘middle income and above’ households in the rural

areas as there are in the urban areas. There are almost twice as many ‘low middle

income’ household in rural areas as in the urban areas. At the highest income level there

are 2.3 million urban households as against 1.6 million households in rural areas.

Today TIGER is a Rs. 200 crore brand with a market share of 24%.

Having grown at 25% to 30% in the past growth is fast slowing down. TIGER has been

positioned as a nutritional product with the new logo being “EAT HEALTHY THINK

BETTER”. The high nutritional value includes carbohydrates, proteins, calcium, etc.

The company’s latest offering is “Britannia Tiger Chai Biscoot”. The

product has been launched in Maharashtra, West Bengal and Karnataka on the flagship

“TIGER”. The TIGER brand currently has four variants including TIGER Cashew

Badam, TIGER Protein, TIGER Coconut and now Chai Biscoot. Britannia with its

TIGER brand of biscuits with its low priced and convenient package products designed

for the rural masses have been other pioneers in rural marketing. Thus, Britannia has been

able to derive more than 30% of their revenues from rural market.

THE BRITANNIA TIGER LAGAAN MATCH

51

This was how the campaign took place: You needed to purchase a 100gm. Pack of

TIGER biscuits for which you will get a special “Britannia Lagaan Booklet”.10000 early

birds will win a prize. There is also the possibility of being selected in the team that will

play against the “Lagaan X1” team. Britannia pumped in around Rs. 2.5 crores to ensure

the success of this promotional offer. Analysts say that there was an incremental 20%

jump in sales when the scheme was on. This promotion was done in both the rural and

urban areas, thus it not only gave the company an increase in the sales but also gave the

brand and the company recognition.

THE BRITANNIA TIGER BACHAO ANDOLAN

This was conducted by Britannia Industries with a view to reach its rural customer and

also the target segment. This took place in the year 1998 when the company undertook

the responsibility of protecting the tiger community hand in hand with the forest

department of Gujarat, MP, etc. this was done by selecting from a village in Rajasthan.

The campaigns is still being carried out by the company and is one of the successful ones.

It has become a social responsibility of the company.

HOARDINGS

There are hoarding, which are put by the company in the rural|semi urban areas. The

hoardings are mostly put up with complete information regarding the product. The

information is given in the local language in order to let people know about the product.

The hoardings also have the mascot tiger which emphasizes a strong healthy individual.

T.V.

52

The various ad campaigns throughout the country are done by preparing a single

advertisement but the language in which it features is according to the regional language

of that state. The ads include famous personalities like Saurav Ganguly. The ads mainly

focus on the children in rural areas are often given small packs at a confessional rate and

at times they are distributed as free samples.

QUESTIONS

Q.1) Critically examine the factors that have contributed to the success of TIGER biscuits

in the market.

TIGER biscuits has been playing an important productive role in Britannia

industries. From the day it was launched it has been able to capture the maximum

Britannia shares in biscuits. The factors that Britannia was able to set such standards is

due to its rigorous advertisements in TV. and also movies such as lagan. The pricing

factor is also important it has the minimum cost with maximum value and even volume.

The packaging is quite attractive and is been liked by almost all age group people.

QUESTIONNAIRE AND BRIEF ANALYSIS DATA

53

1) Which is your favourite biscuits?

As good day has good positioning strategy and has done good marketing, so good day has

got maximum of likes of 40% following to 50-50, borbon and later the other biscuits.

Mostly children like good-day and bourbon compared to other biscuits.

2) Are you aware about the different Britannia products available in the

market?

0.700000000000001

30%

YESNO

About 70% of them are aware about the different brands available in the market and

even the products that come under Britannia brand. Some are unaware about the brand of

the biscuits.

3) Do you like the advertisements made by Britannia company compared to

other brands?

54

0.5; 24%

0.15; 7%

68%

YESNOOK

The tag line of Britannia that is “tin tintintin” is 68% famous compared to other biscuits brands.

Mostly advertisements are more attractive to kids rather than other targeted audience.

4) Are the Britannia products cost effective?

75%

25%

PRICING

YESNO

75% of the Britannia biscuits are cost effective such as tiger. 50-50, marie gold, and even

goodday to some extend but than some biscuits such as borbon, and nutria choice are

priced high compared to other brand biscuit range.

5) Do you remember the tag line and the brand ambassador of Britannia?

55

45%

55%

YESNO

55% of them remember Sachin Tendulkar as a brand ambassador for Britannia

biscuiots and “tin tintintin” as their tagline. But the advertising has buildgood

brand image in minds of kids for biscuits.

6) Do you think that Britannia biscuits are more nutritious compared to other

biscuits available?

65%

25%

10%

YESNONOT SURE

65% say yes, and some agree to some extend. According to survey not all Britannia

biscuits are nutritious of Britannia but yes some like nutria choice, raggi biscuits and all

are healthy and being liked by all age group of people.

7) Does advertisement make any effect on your purchasing decision?

56

45%

35%

20%

YES NOSOMETIMES

45% respondents say yes that advertising do make some effect on their purchasing,

specially when they have their chidren purchasing with them. The tendency to taste is

born after seeing the advertisement. Some say that they are brand loyal and wont try

anything new , were as some say that they always have a tendency to taste all the

products.

8) Mostly when do you eat the biscuits?

55%

20%

25%

TEA TIMETIME PASSTRAVELLING

According to respondents, 55% biscuits are mostly consumed during tea time whether its

morning or evening or while travelling, sometimes just as a time pass. It deoends on the

type of biscuit also.

9) Which other brands do you think can be compared with Britannia?

57

45%

35%

20%

ITCPARLEPRIYAGOLD

45% of the respondents, compared Britannia biscuits with ITC biscuits as even they have

got good advertising done due to which people get influenced to purchase the

product.parle and priyagold is liked just because it is cheap and has got a good volume

compared to Britannia products.

10) Are you satisfied with the pricing, quality, quantity and positioning strategy

of Britannia company?

70%

30%

YESNO

Pricing according to quality is good as most of the Britannia products are nutritious and

due to which people now-a-days are very health conscious and they won’t mind paying

more for something that has value added in it.

CONCLUSION

58

Britannia purpose: help people enjoy life through healthy snacking, make enjoyable food,

healthy and accessible to all people, anytime, anywhere-everyday. Britannia products

span multitude product categories in baking and dairy with strong health targeted entries.

Britannia approach to health and nutrition: targeted health entries, specialized products.

Fortification of popular products. Fortified products made accessible and affordable.

H & N initiatives, Britannia leads through product and thought leadership in India.

Fortification, zero trans fat, health entries, nutrition alliances, Clinton global initiatives,

creating knowledge.

In India a complex inter-network of culture, food behaviours, economic strata and health

levels. Helping health seekers make better snacking choices that are ‘Good For

Thinking’.

BIBLIOGRAPHY\ WEBLIOGRAPHY

59

1. Centre for monitoring indian economy (cmie) (2001-02 to 2009-10). Monthly review

of the indian economy. New delhi: cmie.

2. Centre for monitoring indian economy (cmie) (2000-01 to 2009-10). Prowess

database. New delhi: cmie.

3. Government of india (1990-91 to 2009-10). Economic survey.Newdelhi: ministry

of finance, department of economic affairs, government of india.

4. Reserve bank of india (1995 to 2010). Monthly bulletin. Mumbai: department of

statistics and information management, reserve bank of india.

5. Government of india (1990 to 2008). Statistical abstract india. New delhi: ministry

of statistics and programme implementation, central statistical organization,

government of india.

Website: http:// www.britannia.co.in/britannia_ar_2010

http://www.dabur.com/about%20dabur-historyhttp://

http://www.indiainfoline.com/markets/company/.../dabur-india.../500096

www.coolavenues.com

www.eds.com

www.ssrn.com

www.britindia.com

www.britannia.com

www.economictimes.com

www.articles.com

60

61