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B r i t a n n i aI n d u s t r i e s L t d.
By, Group 6, Section-C
To understand the positioning of Britannia in the consumer’s mind
To identify important factors consumers consider while purchasing products
Marketing mix of Goodday biscuits and do competitor analysis.
Objectives
Management Team
ContentsOrganization1
Competitor Analysis2
External Analysis3
Marketing Mix4
Customer Analysis4
Pillar Brands
Tiger
GoodDay
Mariegold
Fifty Fifty
Milk Bikis
Cream Treat
Milestones• 1892
– Started with an investment of Rs. 295/- in Kolkatta• 1918
– Britannia Biscuit Company Ltd. (BBCo) was launched• 1979
– BBCo was rechristened as Britannia Industries Ltd.• 1993
– Wadia group aquired a stake in ABIL, UK & became an equal partner in BIL with Groupe Danone
• 1997– Corporate re-branding exercise gave rise to
philosophy of “Eat Healthy, Think Better”• 1999
– ‘Britannia Khao World Cup Jao’ – A major success! Profit up by 37%
Milestones• 2001
– Britannia becomes one of India’s biggest brands
– Britannia Lagaan Match – Most successful promotional activity of the year
• 2002– Rated one amongst the top 200 small
companies of the world by Forbes Global– India’s 2nd most trusted brand – Economic
times• 2004
– Britannia accorded the status of being a ‘Superbrand’
– Volume crosses 300,000 tonnes• 2005
– Company goes in for major expansion– Uttranchal plant commissioned ahead of
schedule
Company Overview• India’s second largest food company• Sales close to Rs. 20 billion• Consistent annual growth rate of 15-
20% • Sources products from more than 50
factories spread across the country• Key product lines include:
– Biscuits– Bread, Cakes and Rusk
• Product range caters to the whole spectrum from mass market to the premium segment
Financial Analysis
• Gross sales increased to Rs 2317.11 Cr in 2006-07 registering a growth of 28%.
• Profits declined by 33% due to increase in input prices and stiff competition
• Dividends of the order 100-150% were provided for the past 5 years
• Britannia followed the industry growth rate for the past 3-4 years while the profit margin followed a zigzag pattern.
• Costs have increased significantly on the production as well as on selling front.
Financial Analysis• Company has very small debt and its Debt-Equity ratio
is 0.01
• Company is maintaining good debt rating for future requirements
• PBITDM (Profit Before Interest Tax Depreciation Margin) expressed as a percentage of Sales is 6.58
• ROE is at a healthy Rate of 21.14%
• Current ratio has been improving over the years and hence the solvency position of the company
Competitive AnalysisCompany By Value By Volume
Britannia 37% 30.5%
Parle 31.3% 38.4%
ITC 6.3% 6.7%
Surya Food and Agro - 5%
OthersMarket Share by Volume
Britannia31%
Parle38%
ITC7%
Others19%
Surya Food andAgro5%
Industry Overview
• Biscuit industry is the third largest producer and fastest growing industry in FMCG sector
• It grew by 13% in 2006-07• Estimated Value: Rs 5000 Crore• Organized sector: 60% (approx)• Major Segments: Glucose ,Marie, Cream,
Crackers, Milk• Major Brands: Britannia, ITC, Parle,
Priyagold, Dukes etc
Political Political FactorsFactors
Food laws implemented at State & Central levelStringent TAX lawsMany other Govt. Regulations
GDP increasing at 8-9%Increase in the disposable IncomeRupee Appreciation
70% population below 35 yearsGood awareness among the people
Process Innovation, Product InnovationInnovative techniques – JIT, RFID
Economic Economic FactorsFactors
Social Social FactorsFactors
Technology Technology FactorsFactors
PEST Analysis
Access to distribution – difficultEconomies of Scale – difficult
Product DifferentiationCapital RequirementsCost disadvantages
Govt. Policies
•Many Suppliers•Fragmented environment•Switching Costs•Not an important customer•Threat of Forward integration
•Less large volume buyers•Switching Costs•No individual buyer can impact•Less threat of backward Integration
•Fast food•Home made snacks
•Changing consumption patterns
Porter’s 5 forces
Strengths
Brand NameMarket LeadershipProduct InnovationMany Successful brandsDistribution NetworkDanonePromotional ActivitiesCelebrity Endorsements
Weaknesses
Market leaders but still couldn’t prevent competitors to flourishBritannia’s brand perception as biscuits – stumbling block in venturing into new areasCompetition-couldn’t adopt any strategy to defend its positionMay not centre on a single ProductNot able to increase its sales in an expected manner
Opportunities
Per capita consumption in Ind–2.55 Kg, develped countries-12Kg, Enormous ScopeIncreasing Disposable IncomeOpportunities to increase exports turnoverDiversificationBakery Chain
SWOT
Marketing Mix - Product20 percent share of Britannia's biscuit 2/3 share
of the market
CAGR of 35 percent
Gaining acceptance as a family snack
Text
Text
Text
Good Day Products
Good Day Choco Nut Good Day Cashew
Good Day Chocolate Chip
Good Day Pista Badam
Good Day Butter
Marketing Mix - Product
Fig. Four Product Levels for Good Day
Price• On the basis of price, the biscuit market can be
segmented into• Low (less than Rs 40 per kg.) • Medium (Rs. 40-70 per kg.) • High (over Rs.70 per kg.)
• Caters to the upper middle and high end of the market - with a touch of premium to it.
• On the price quality matrix, Good Day biscuits can be classified as following a High-Value strategy.
Promotion• Consumers are becoming more health conscious• "Swasth Khao Tan Man Jagao" (Eat Healthy, Think
Better) campaign directly addressed this new trend• A new logo was created encapsulating the core
essence of Britannia - healthy, nutritious and optimistic• Good Day is positioned as a healthy and nutritious
product• Good Day advocates values that stand for health,
hygiene, family, trust and taste. • Sports and sporting events are a key channel for
promotions. • "Britannia khao, World Cup jao" campaign in 1999 and
2003 was the most recognized sales promotion among all Cricket World Cup-related sales activity.
Place
Customer AnalysisKey Information Areas• Demographic Profile of the consumer
– Age, Sex, Income level, Occupation• Personal Customer characteristics
– When do customer consume biscuits– Type of biscuits consumed– Where do the customer purchase– Purpose of buying (personal consumption, gifting, serving guests)– How much do consumers spend on biscuits
• Factors Affecting the buying decision– What are the various factors that are considered– Their order of preference
Comparative analysis– After the factors have been found out above, the following issues are
addressed.– How does Britannia fare on these attributes– How does the competitors fare on these attributes– The competitor brands taken for the analysis are
• Parle• ITC• Priya Gold (Surya Foods)
Customer Analysis
Methodology
• Preliminary Analysis– Secondary material on: Industry, Category, Competitors and
Consumers• Qualitative Research
– Interviews with few consumers to identify major factors influencing the purchase decision of biscuits
– Interacting with friends and family• Quantitative Research
– Customer survey using questionnaire – Survey done through both face to face interviews as well as
online• Tools Used
– Factor Analysis– Cluster Analysis– Fishbein Analysis. Software used is SPSS.
Data AnalysisRound One Analysis
Fishbein Analysis
Attribute Average Score
Brand 0.596774194
Taste 1.64516129
Package 0.016129032
Variety 0.064516129
Health 0.516129032
Price 0.112903226
Value for Money 0.64516129
Quality 0.806451613
Brand Fishbein Score
Britannia 6.581
Parle 3.161
ITC 2.984
Priya Gold -1.065
Hence from the Fishbein Analysis, it can be inferred that customers attitude towards Britannia is very favorable to the brand.
Factor AnalysisRotated Component Matrixa
Component
1 2 3
Variety 0.89
Package 0.835
Price
Quality 0.892
Brand 0.771
Taste 0.699
Value_for_Money 0.843
Health 0.835
‘Quality’, ‘Brand’ and ‘Taste’ have been combined into the next factor which may be named as the Wholesomeness factor.
‘Value for Money’ and ‘Health’ have figured into the third factor which may be named as Well Being factor.
‘Variety’ and ‘Package’ have been combined into one factor which can be named as Appearance factor. Since the survey was skewed towards the urban population, Price has not factored significantly.
Cluster Analysis• ‘Wholesomeness Factor’
Final Cluster Centers
Cluster
1 2 3
Consuming_period 2 3 2
Biscuit_type 2 5 2
Place_of_Purchase 2 2 2
Biscuits_usage 2 1 2
Willingness_to_spend 2 2 3
Sex 1 2 1
Age 2 2 2
Occupation 1 2 2
Income 2 2 4
Quality 4 3 4
Brand 4 3 4
Taste 5 4 5
Cluster 2 which is characterised by female population also preferred Marie biscuits, and consumed them mostly during tea time.
We also observe that the high income level group found in cluster 3 also scored higher on willingness to spend.
While the inter group variance was minimum for place of purchase (superbazaar), higher variance was observed on factors like consuming period, biscuit type, biscuit usage and other demographical factors.
Similar Cluster analysis done for Well Being Factor and Appearance Factor
BritanniaBritannia
Action Plan
Bakery ChainBakery Chain
Same quality, Same quality, competenciescompetencies
Investing on farmersInvesting on farmersImprove OperationalImprove Operational
efficiencyefficiency
Tap “out of Home” Tap “out of Home” marketmarket
ExportsExports
Dairy products, rusks,Dairy products, rusks,Namkeen/snacksNamkeen/snacks
Reduce dependence Reduce dependence On Biscuits - diversifyOn Biscuits - diversify
Thank You,Have a Good Day