Britannia vs Mcvities

8/4/2019 Britannia vs Mcvities

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Britannia vs McVities

Presented By Group 4:

Arun RanaAshray Mishra

Ayush Sinha

Pragya Agarwal

Sommya Singhal

Kushal Abrol


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Britannia

Britannia Industries Limited is an Indian company based inKolkata

Famous for Britannia and Tigerbrands of biscuit

Britannia has an estimated 35% market share.

Britannia was equally recognized for its innovative

approach to products and marketing: the Lagaan Matchwas voted India's most successful promotional activity ofthe year 2001 while the delicious Britannia 50-50 Maska-Chaska became India's most successful product launch.


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In 2002, formed a joint venture with Fonterra, the

world's second largest Dairy Company, and Britannia

New Zealand Foods Pvt. Ltd. was born.

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.


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United Biscuits Pvt Ltd.

Wholly owned subsidiary ofUnited Biscuits

British multinational food manufacturer that was

formed in 1948 following the merger of two Scottishfamily businesses McVitie Price and MacFarlaneLang.

Leading manufacturer of snack foods brands in over100 countries worldwide with its key markets in UK,France, Netherlands and other European Countries.


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UB International

Drives the marketing and sales of UBs biscuits and

snacks around the world.

Consumer led approach for key brands in key

markets. It aims to meet consumer needs in thethree main global snacking trends

Health

Pleasure Convenience


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Positioning of Mcvities

Healthy Biscuit

Whole grain " content->worldwide postioning

" Whole Wheat At Its Heart".

In India, it focuses on Health(whole grain) and taste

Taste ke NayiLanguage


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Positioning Hierarchy

Enjoyed the world over: International appeal

Great Tasting: Indulgent category

Made of Wholesome Ingredients:McVities is

not about dieting, or weight loss.

British Brand: Heritage


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Positioning of Britannia

Enjoyable and healthy

Britannia is not in the "health food" business, but

rather "in the business of delight and enjoyment,"

competing not only with other biscuits but also with

savories, chocolates and other snacks---MD


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Product Portfolio ComparisonGlucose Category Mc Vities Britannia

No Product Choco chips

StrawberryChocolate

Elaichi

Butterscotch

Orange

PineappleTiger

Tiger coconut energy

Tiger energy pops

Tiger chai biskootTi er banana biscuit


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Marie Category Mc Vities Britannia

McVities Marie Vita marie honey oats

Marie gold Rs 5

Vita marie gold

Marie Gold


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Cream Category McVities Britannia

Chocolate

Orange

Choco decker milko

Treat choco

Choco decker jelly

Mango mischief

Pine apple

Jim Jam

Masti orange

Elaichi FunBourbon


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Health Category Mc Vities Britannia

Digestive Diabetic friendly essentials oat

cookies

Diabetic friendly essentials ragi

cookiesNutri choice digestive

Nutri choice 5 grain

Classic lite cracker

Nutri spice cracker

Nutri choice thin arrowroot


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Salty Category Mc Vities Britannia

No Product

Time pass mindless

masalaTime pass tapori masala

Time pass loafer lemon

Nimkeen

Classic salted


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Cookies Category Mc Vities Britannia

Butter Cookies

Cashew Cookies

Good day Butter

Good day Cashew

Rich butter cookies

Choconut cookies

Butter scotch cookies

Honey & Raisin cookies

Choconut

Chocolate chip

Rich butter cookies ATCRich cashew cookies ATC

Rich pista cookies ATC


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Milk Category Mc Vities Britannia

No Product Almond cookies

Milk bikis

Milk cream


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Product Portfolio Comparison: Dairy Products

Dairy Products Mc Vities Britannia

No Product Dahi

Daily fresh low fat dahi

Daily fresh dahi 200gm

Daily fresh dahi 400gm

No Product Acti mind

Mango

Strawberry

No Product Britannia Dairy

Whitener

Dairy whitener pouch20gms

Dairy whitener 950 gm

Carton pack

Dairy whitener 950 gm

Pouch pack


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Product Portfolio Comparison: CakesCakes Mc Vities Britannia

No Product Barcake orangeBarcake chocolate

Veg cake

Nutri choice family slice

Nutri soft premium

sandwich

Chunk cake pineappleChunk cake berry cherry

Chunk cake fruit

Cupcake vanilla

Cupcake berry cherry

Cupcake cashew

C\upcake orangeBarcake milk

Barcake butter sponge

Barcake pineapple

Barcake fruit


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Britannia: SKUS present in Indian Market

Product SKU (gm)

Good day 35, 75, 90, 100, 180

Bourbon 112

Treat 100, 200, 164

Fifty -Fifty 67

Milk Bikis 156

Nutri Choice 100

Marie Gold 330, 337, 370, 90, 171, 182, 133

Time Pass 64, 71

Cookies 100

Tiger 82, 58, 67, 150, 65, 64, 71


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McVities: SKUS present in Indian Market

Product Description SKU (gm)

McVitie's Digestive 16, 82, 123, 230

McVitie's Butter Cookies 66, 166

McVitie's Cashew Cookies 68, 136

McVitie's Chocolate Creams 63

McVities Orange Creams 58

McVitie's Marie 117 G 117

McVitie's Marie 225 G 225


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Evolution of Britannia & its product extension

Britannia has rationalized its product portfolio

pruning the number of its brands.

Moved into the mass market for biscuits introducinglow-priced varieties under the umbrella brand, Tiger

Britannia has the option to draw from the productportfolio of Groupe Danone.


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Launched a number of dairy products (processedcheese, flavoured milk, butter, ghee and dairy

whitener) and ethnic snack foods such as alloobhujiya and chana choor.

Britannia Industries has acquired 49% stake inKwality Biscuits. It has also acquired Kwality Chef andseveral other trademarks along with copyrights,designs in labels and packing material.

Britannia is looking for more acquisitions in foodbusiness.


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Evolution of Mc Vities

Mcvities entered India in late 2009 after buying a

plant in HP and launched Digestive in Feb 2010

Market share of 22 %

In Jan 2011 United Biscuits launched McVities

Chocolate Cream which was followed by launch ofcookies and Marie in March,2011 and Orange Cream

in May,2011 in the digestive category


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Britannia vs Mc Vities

Presence in all segments namely low-end, mid-pricedand premium

Good Day, Tiger, Treat, Marie, Milk Bikis, 50:50 arereferred to as power brands, which togetheraccount for around 90 per cent of revenues in thebiscuit business.

Mass segment contributes the volumes, thepremium segment adds value to the sales.


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Britannia has a focus on health segment (high fibre &

low fat) through its Nutrichoice range with variants

like digestive, cream crackers and multi-grain.

Although this segment is small, it is still unique .

The growing urban and health conscious population

would drive the demand for these biscuits in the

future.


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Perceived Gaps

Many times higher number of products in almost all the

categories of biscuits.

Britannia still has to concentrate on the health needs ofthe consumers and can introduce the health perspective

in its already existing categories as well as come up with

new category of biscuits focusing on health.

Britannia is a leader and far ahead of Mc Vities in the all

the segments of biscuits.


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New Product Introductions

Ice Creams

Strong presence in the food industry

High brand equity can help Britannia to enter theIndian ice-cream market to combat with strongplayers like Amul, Kwality Walls and Vadilal.

The Indian ice cream industry is currently estimated tobe worth Rs. 2,000 crores, growing at a rate ofapproximately 12%.

Ice cream can contain a considerable quantity of air,even up to half of its volume. This makes ice cream abusiness with high profit margin.


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Potato Chips

Market Potential of Potato Wafers and Chips

Potato Wafers and Chips are one of the most

celebrated in the Ready To Eat munchies market,relished in almost all the parts of the world. They

serve as an appetizer, side dish, or snack.


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Aggressive marketing and advertising planning to

communicate the presence of the new product

category under the brand name Britannia

Use of existing strong distribution channels as well asdevelop new cold channels for the ice-creams.

Sales promotion and advertising should be the

battleground for Britannia in its initial phase of

product launch.


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Go-to-Market Strategy

Define the market opportunity Review current and prospective market of ice-creams and


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Go-to-market strategyDefine the market opportunity Review current and prospective market of ice creams and

potato chips

Review trend data from trade publications and analysts

Define the primary customers who will be served by the new

offering, and determine what would compel them to buy the

products from your organization.Build budget models Develop a revenue model based on expectations for market

penetration, average deal size, and the impact of new

marketing efforts.

Estimate margins over one-year and three-year periods,

based on start up and ongoing costs.

Based on how the market is defined, set clear goals formarket

Define the strategy Focus on the issues:

How and where the products will be launched?

Why do customers need these products?

Why will customers buy these products from Britannia?Outline the tactics of the 1st

year of operations

When, where and how many units to be launched?

Do any other product lines need to be pruned in order to

increase sales of the new product

Identify and manage risks Risks involved with presence of strong players

Risks related to the acceptance of new products and their

tastes


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The company should initially launch the product

category with lesser number of more probable of

success variants.

Using the same distribution channels will give

Britannia a huge advantage, save time and money for

the company and enable the company to enter into

the market earlier and in a stronger way.

Reducing the GTM time


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Sources of Brand equity

Media types used in advertising

Public relations

Sales promotions

Sports association


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CBBE


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Brand identity (Brand salience)

Mc. Vities

33 % of the customers say that they are neutral

when it comes to recall.

Nearly 30 % respondents agree that they do recall

Mc. Vities when there is any buying situation.

35 % respondents refused completely for thisbrand.


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Britannia

90 % agreed readily that they do recall Britannia

biscuits when they are in a buying situation.

When it comes to brand recall and awareness

Britannia is far ahead of Mc. Vities.


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Major issues

Not advertising properly.

They used channels like DISCOVERY on television

to advertise their product which were not veryfamiliar to the Indian consumers

Not present in each and every segment of theindustry


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Brand performance

Incremental innovation rather than radical

Rather than venture in new product

categories, Britannia has gone for the lineextension.

The urban and educated people are still

convinced by the quality of Mc. Vities biscuitsbut the company has not been able to makean image among the customers.


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Mc. Vities has still not come up with all price

segments products in India. They have just

come up with few products whereas Britannia

has come up with all three segmentsproducts.


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Brand imagery

Britannia spends about 7 % of its revenueson

advertising and it appears to spend it to a

good effect.

Memorable taglines, innovative campaigns (

linked to world cup, or tv shows for example

)a mix of more functional and advertising

spots, have fostered brand recognition.


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Good job of mixing functional and celebritycampaigns to reinforce corporate brand andbuild distinct images for its various biscuit

brands Whereas Mc. Vities has not been able to build

such strong image in the minds of Indianconsumers. They have not been able to

position any of their product in a way thatconsumers can associate with it.


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Brand responses( judgements )

Packaging

When the consumers were talked about the

packaging, most of them find the Britannia biscuitspackaging quite attractive and informative.

Whereas when the consumers were talked about Mc.

Vities , most of them were neutral about its

packaging. Neither they were commenting on thepackaging of products nor they found it very

attractive.


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Pricing

Britannia has entered each price segment, people

do not have much issues with its pricing

Mc. Vities, since they have not launched all oftheir products in India, so pricing is an issue for

some of the consumers, though most of the

consumers were neutral for this aspect.


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Quality

Indian consumers rely more on Britannia over Mc.

Vities biscuits. Britannia has strongly positioned

itself as eat healthy, think better


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Brand feelings

Most of the consumers especially children and youth

feel good when they have Britannia biscuits.

They like the taste and packaging of the biscuits.Moreover the celebrity endorsement for nutrichoice

and attractive advertisements of of other products

make them feel good.


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In case of Mc. Vities most of the consumers are

neutral when they were asked about this aspect.

Brand resonance

When asked about whether the customers would like

to go for some other brand if Britannia is not

available , some of them said they will not. Whereasmany were ready to switch on some other brand


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BRAND AUDIT

A market survey was conducted in order to

comprehensively examine both Mc. Vities and Britannia

and discover their sources of brand equity


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Demography of respondents:

16%

65%

19%Age

10-20

21-39

>40

13%

21%

33%

33%

Annual Family Income

0-2,00,000

2,00,000-5,00,000

5,00,000-10,00,000

>10,00,000


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Awareness of the products offered by both the

brands:

6%

27% 27%

13%

27%

0%

5%

10%

15%

20%

25%

30%

Strongly

Disagree

Disagree Neutral Agree Strongly

Agree

0% 0% 0%

47% 53%

0%

10%

20%

30%

40%

50%

60%

Strongly

Disagree


Agree

Britannia

Mc. Vities


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Brand Recall

21%13%

33% 33%

00%

5%

10%

15%

20%

25%30%

35%

Strongly

Disagree


Agree

Mc. Vities

0% 07%

53%40%

0%

10%

20%

30%40%

50%

60%

StronglyDisagree

Disagree Neutral Agree StronglyAgree

Britannia


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Comparison of products offered by both

the brands in same categories:

7% 13%

53%

13% 13%0%

10%

20%

30%

40%

50%

60%

1 2 3 4 5

0%7%

0%

33%

60%

0%

10%

20%

30%

40%50%

60%

70%

1 2 3 4 5

Britannia

Mc. Vities

Comparing Digestive with Nutrichoice, Marie with VitaMarieGold, Creams with Treat and Cookies with Gooday

Customers attitude towards pricing of the


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Customers attitude towards pricing of the

products by the two brands:

0% 7%13%

67%

13%0%

10%

20%

30%40%

50%

60%

70%

80%

Strongly

Disagree


Agree

Britannia

Mc. Vities

7% 13%

55%

20%5%0%

10%

20%

30%

40%

50%

60%

Strongly

Disagree


Agree

Attractiveness of packaging of the


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Attractiveness ofpackaging of the

product:

0% 0%13%

60%

27%

0%

10%

20%

30%

40%

50%

60%

70%

Strongly

Disagree


Agree

3%

29%

50%

15%3%0%

10%

20%

30%

40%50%

60%

Strongly

Disagree


Agree

Mc. Vities

Britannia

Quality of the product:


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Quality of the product:

6%

2%

48%

31%

13%

0% 10% 20% 30% 40% 50% 60%

Strongly Disagree

Disagree

Neutral

Agree

Strongly Agree

0%

0%

13%

56%

31%

0% 10% 20% 30% 40% 50% 60%

Strongly Disagree

Disagree

Neutral

Agree

Strongly Agree

Mc. Vities

Britannia

Taste of the products offered by


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Taste of the products offered by

brands:

8%

10%

40%

25%

17%

0% 10% 20% 30% 40% 50%

Strongly Disagree

Disagree

Neutral

Agree

Strongly Agree

0%

2%

23%

60%

15%

0% 10% 20% 30% 40% 50% 60% 70%

Strongly Disagree

Disagree

Neutral

Agree

Strongly Agree

Mc. Vities

Britannia

P ti l Off b th b d


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Promotional Offers by the brands:

13%

13%

40%

13%

21%

0% 10% 20% 30% 40% 50%

Strongly Disagree

Disagree

Neutral

Agree

Strongly Agree

0%

7%

13%

60%

20%

Strongly Disagree

Disagree

Neutral

Agree

Strongly Agree

Mc. Vities

Britannia

Brand likely to be recommended to friends


56/64

y

and family:

13%

20%

13%

27%

27%

0% 5% 10% 15% 20% 25% 30%

Strongly Disagree

Disagree

Neutral

Agree

Strongly Agree

Mc. Vities

0%

13%

7%

40%

40%

0% 10% 20% 30% 40% 50%

Strongly Disagree

Disagree

Neutral

Agree

Strongly Agree

Britannia

Getting a feeling of fun and excitement


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g g

while using the brand:

20%

14%

33%

33%

0%

0% 10% 20% 30% 40%

Strongly Disagree

Disagree

Neutral

Agree

Strongly Agree

0%

13%

33%

34%

20%

0% 5% 10% 15% 20% 25% 30% 35%

Strongly Disagree

Disagree

Neutral

Agree

Strongly Agree

Mc. Vities

Britannia

C l b it d t i j


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Celebrity endorsement is a major

criteria:

7%

0%

13%

33%

47%

0% 10% 20% 30% 40% 50%

Strongly Disagree

Disagree

Neutral

Agree

Strongly Agree

Brand Awareness


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Brand Awareness

7%

37%

30%

16%

10%

0% 5% 10% 15% 20% 25% 30% 35% 40%

Strongly Disagree

Disagree

Neutral

Agree

Strongly Agree

0%

4%

3%

40%

53%

0% 10% 20% 30% 40% 50% 60%

Strongly Disagree

Disagree

Neutral

Agree

Strongly Agree

Mc. Vities

Britannia

Factors considered while purchasing:


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(1- Least Rating, 5 Highest Rating)a) Health Suggestions on Packet

b) Color of the packet based on the flavour

7%

7%

41%

40%5%

0% 10% 20% 30% 40% 50%

1

2

3

45

0%

20%

50%26%

4%

0% 20% 40% 60%

1

2

3

4

5

c) Separate pack per serve


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d) Packaging style

0%

7%

13%

67%

13%

0% 20% 40% 60% 80%

1

2

3

4

5

0%

13%

40%

47%

0%

0% 10% 20% 30% 40% 50%

1

2

3

4

5


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e) Appearance on shelf

0%

20%

33%

47%

0%

0% 10% 20% 30% 40% 50%

1

2

3

4

5

Will you go for any other brand if


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Will you go for any other brand if

Britannia is not available?

63%

37%

Yes

No


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THANK YOU!!

Documents

Britannia vs Mcvities