Britannia Industries Limited

Britannia Industries limited is an Indian food-products corporation based in Kolkata, India. It sells its Britannia and Tiger brands of biscuit throughout India. Britannia has an estimated 38% market share.

The primary business segment of Company is Foods comprising (i) Bakery products – biscuit, bread, cake & rusk and (ii) Dairy products – milk, butter, cheese, ghee, dahi, milk-based ready to drink beverages & dairy whitener.

It is a 6400 crore Rupees revenue generating FMCG giant with a portfolio of products targeting almost all segments. Its 2014 profit from operation was 533.24 crore rupees in 2014. Its major brands were growing in double digits in 2014. It has kept up the pace of differentiation by working and investing aggressively behind new consumer understanding, advertising and activation programs and marketplace competitiveness. Company continues to focus on its two strength areas – Health and Indulgence – through brands that are targeted specifically on each of these need states. Brands are also segmented on consumer segments like Premium, Mid, Mass or demographic segments like homemakers, kids, adults, families etc.

Industry structure and development

Bakery

Company’s bakery business constitutes of biscuits, cake, bread and rusk. Biscuit is estimated to be the largest ready to eat food business in India growing at 12%-14% over last three years. This has attracted interest from both foreign and national players. The additional marketing activity has only led to more visibility for the category and helped maintain the growth momentum. Cake and Rusk is less developed category for national brands and lot of local players are operating. Bread on other hand due to its low shelf life is category associated with localized production reaching the proximate market.

Biscuit Market segmentation

Biscuit market in India can be segmented as follows: Glucose, Marie, Snack, Digestive, Cream, Premium and Crackers.

Dairy

India remains the largest milk producing and consuming market in the world. While liquid milk consumption continues to drive the industry, there has been a significant shift in the dynamics of the value added segment of dairy with access to milk, portfolio strategies and increasing investments determining the right to succeed. The dairy industry is developing along four trends that include - (i) Cooperatives

modernizing with products which are gold standard and seeking a dominant presence, (ii) Regional private players looking to go national and investing in both brand building and capacity, (iii) Emerging regional players with limited portfolio and (iv) International Dairy companies looking to invest into the Indian market.

Parameters that affects the industry

(1)High Input cost

(2)Distribution network

(3)Increased disposable income

(4)Changing life style

(5)Growth in organized retail

(6)Increased consumption of processed and packaged foods

(7)Shelf space

(8)Poor infrastructure

(9)Growth of online channel

Company’s Portfolio

Britannia’s biscuits

Tiger:-

Butterscotch, elaichi, strawberry, banana, orange, etc.

Key competitors like ITC (sun feast), surya foods (priyagold), and parle agro do not provide such wide range of flavored glucose biscuits.

• Targeted basically on kids.

• Positioning is done for modern mothers who play an enabling role for their children to compete in today's world and thus want the best.

Over the years, Tiger has become the mass-market face of Britannia symbolizing fun and energy in both urban and rural India, and transcending glucose biscuits

Little Hearts

It is the only type of snack biscuit in the market. A wafer biscuit with sugar coating

• Little Hearts is targeted towards the growing youth segment.

• A completely unique product, it was the first time biscuits were retailed in pouch packs like potato wafers.

Good Day

Britannia Good day started premium biscuits enriched with cashew, butter, badam pista, etc. (1986)

• This rich biscuit enjoys a fan following of consumers across all ages.

• Good Day is amongst the fastest growing brands in Britannia's portfolio and is today the market leader with almost 2/3 share of the market. The brand is synonymous with everyday treats that infuse happiness into people's daily lives.

Milk bikis

The only biscuits with milk flavored cream, makes it the most different product in front of its key competitors.

• Milk Bikis too is targeted towards kids who may dislike drinking milk, but they love Britannia milk bikis!

• Milk bikis has been trusted by mothers as a source of growth energy of milk and their loyalty to the brand has made it an integral part of their children's nutrition regimen.

50-50

This biscuit comes under snack biscuit. It was launched in 1993. It came with a flavor of maska – chaska as a difference. It covers 1/3 of the market share.

Marie Gold

A Marie is a type of sweet biscuit similar to tea biscuit. It is propagated as low cholesterol and healthy biscuit for family

Nutrichoice

Britannia NutriChoice is one of India’s leading health brands today, changing the way Indians think, feel and behave about health and healthy living. NutriChoice provides a range of ‘power packed’ snacks specially created for people who seek a healthy way of life

Jim Jam

It is targeted at kids with irresistible range of yummy, creamy biscuits to fuel their tricks

Bourbon

It is biscuit for youth and adults who are quality conscious and ready to pay higher cost for that quality

Bread

It includes white bread and Atta bread and product assortment include fruit bun. Burger bun and pav

Dairy products

It includes Cheese, fresh dairy, Ghee, butter and dairy whitener

Cakes

It includes bar cakes, chunk case, raisin romance and muffles

Rusk

It includes premium bread and Maska rusk