A Report of Business Model of BRITANIA INDUSTRIIES Submitted to

Prof. Subir Guha

By:

Name Ankur SharmaRoll No 05Section FN-7

company overview

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 mechanised 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 Indianness 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 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 recognised 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.

BRANDS AND PRODUCTS OF BRITANNIA

1. Tiger: - Tiger, launched in 1997, became the largest brand in Britannia's portfolio in the very first year of its launch and continues to be so till today. Tiger has grown from strength to strength and the re-invigoration in June 2005 and more recently, in Apr 2008 has further helped bolster its growth in the highly competitive glucose biscuit category.

Tiger is a Glucose biscuit, which comes with the added goodness of wheat and milk. It is for modern mothers who play an enabling role for their children to compete in today's world and thus want the best. Now Tiger Glucose has been fortified with "Iron Zor"

with an attempt towards addressing the Iron Deficiency crisis the children of India face.

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

Tiger Coconut : Delicious Coconut Flavoured Energy Biscuits, launched in 2001

Tiger Creams : Was Introduced in 2002 at just Rs 5 per pack. Tiger Cream is now available in Orange, Elaichi, Chocolate, Pineapple, Strawberry and Butterscotch flavours, and promises to bring more fun and more energy to children across the country.

Chota Tiger : Is an extension of brand Tiger launched nationally in May, 2007. It is mini sized poppable glucose biscuit with coloured sugar sprinkling. It comes in two variants: Milk Sparkies and Choco Sparkies

Tiger Banana : Britannia is committed to help secure every child's right to Growth & Development through good food everyday. Purposefully taking forward the credo of 'Eat Healthy, Think Better ', we have launched a new variant under our power brand TIGER - TIGER BANANA - power packed with IRON ZOR & and with the delightful taste of banana.

IRON ZOR helps make mind sharper and body stronger. A Rs.4 pack has as much IRON ZOR as that in 1 kg of Banana.

R&D in Britannia has spent considerable time to develop this nutritious and delightful snack for children.

Britannia Tiger Banana packed with IRON ZOR and goodness of Banana is accessible to all, being available in convenient packs priced at Rs.2, Rs.4 and Rs.10.

2. Good day :- Britannia Good Day was launched in 1986 in two delectable avatars - Good Day Cashew and Butter. Over the years, new variants were introduced - Good Day Pista Badam in 1989, Good Day Chocochips in 2000 and Good Day Choconut in 2004.

This rich biscuit enjoys a fan following of consumers across all ages, loyal to the brand promise of a great taste evident from the visibly abundant ingredients. 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.

After two decades of magnificent success; it was time to give the nation yet another reason to have a good day. Abundance, goodness, indulgence and now unrestrained joy - that is the message of this new campaign.

The new TT ad is the uncontrollable expression of the ticket collector's happiness and joy that is stimulated by consumption of the cookie, that spreads cheer amongst the people around him

creating an atmosphere of shared joy that's unorchestrated and straight from the heart. The celebration was taken to the IPL as Good day cheered along with a million cricket fans in the stadiums, each screaming and proclaiming "Ho gaya re Good Day". The dazzling brilliance of this endeavour, the contagious rhythm needs to be lived and spread through the nation, making 'Iska toh ho Gaya Re Good Day' a part of the common lingo and a way of life.

Good Day truly believes laughter and happiness are infectious, it transcends race, caste creed unifying humanity in an inclusive emotion.

The brand perseveres to infuse cheer, hearten the nation and enliven lives. With its rightful place on the front page of The Times of India, Good Day gifts the nation a priceless treasure, that of spreading JOY!

3. 50-50 :- With a brand name like 50-50, can the product be anything but fun? Launched in 1993, 50-50 belongs to the family of crackers and is considered the "very very tasty tasty" snack.

Britannia 50-50 is the leader in its category with more than one-third of market share. The versatile and youthful brand constantly aims to provide a novel and exciting taste experience to the consumer. As a result, in 2001, the delicious Maska Chaska was

launched as a variant of the original brand and became an instant success.

4. Marie gold: - Britannia's oldest brand enjoys a heritage that spans the last 50 years - and going strong. In a market swamped with me-too products and where even the name 'Marie' has become generic, Britannia Marie Gold has maintained its stronghold. Today, the ever-popular Marie Gold is synonymous with the 'Tea Time Biscuit'. Its taste, crispiness and lightness make it a must for every tea break. It is the #1 brand in its category by a long shot.

5. Treat :- As a move to consolidate all the individual Cream Treat offerings under a single umbrella, Britannia launched Treat in 2002. Treat has a range of tasty delights for all kids with yummy creamy treasures within the biscuit shells. The kids have always relished unraveling the irresistibly delicious creams hidden inside the biscuit Britannia Treat offers a wide variety of flavors, such as the Elaichi, the Fruit Flavored Creams such as Orange, Pineapple, Mango, and Strawberry, the Jam Filled Centers under the Jim Jam range, and the Duet Range (biscuits with two flavours of cream between three layers of biscuit) comprising Strawberry Vanilla and Duet Strawberry Chocolate.

Britannia Treat has now launched yet another mouth watering delight under its umbrella. The delicious Fruit Rollz take the Treat brand beyond the cream biscuits and provides yet another lip smacking delight to its consumers!

Fruit Rollz are soft rolls filled with the goodness of real fruits, and

provide a healthy yet scrumptious treat to our 'loveable devils' Treat also introduced its naughty and adorable brand mascot FUNTOOSH whose primary occupation is mischief! FUNTOOSH is the guy who will pull off any trick to make sure he gets to eat his Britannia Treat!

For all you kids who have relished the yummy treasures of Britannia Treat in exciting flavors, look out for yet another reason to celebrate!

Britannia Treat launches a new and exciting combination of chocolate and caramel in a single bar - TREAT CHOCO GELO. This unique and never before product is guaranteed to double the masti and double the fun that you have with Treat.

Treat Choco Gelo has been launched nationally in August, 2007 and is available at an attractive price of just Rs.5/-

So go ahead, open this delicious pack, indulge yourself with Treat Choco Gelo and enjoy Yummy Chocolate and Gooey Caramel for "Double Masti ka Double Dose"

6. Milk bikis :- Kids 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.

In 1996, Milk Bikis launched a variant called Milk Cream. These round biscuits come with smiley faces and are full of milk cream that makes them very popular with children. Milk Cream also promoted the idea of 'eating milk' in a yummy way, which makes

mothers happy as well.

To keep pace with the demands of the new generation and to bring milk nutrition to the masses in a delightful form, Milk Bikis, went one step further in the last quarter of 2006 in providing not just energy but ‘developmental fuel’ for children. With a unique and attractive honeycomb design and an enhanced product experience, the new biscuit is now fortified with SMART NUTRIENTS – 4 vital vitamins, iron and iodine, proven to aid mental and physical development in growing kids.

7. Nutrichoice:- In continuation of the promise of "Swasth Khao, Tan Man Jagao," Britannia introduced NutriChoice range of healthy biscuits in 1998. The brand is targeted towards overall health and wellness for adults.

The range has for long comprised of three popular variants, namely NutriChoice Thin Arrowroot, NutriChoice Cream Cracker and NutriChoice Digestive.

NutriChoice Thin Arrowroot - An ageless classicExtremely popular in East India for over 4 decades (where it is affectionately referred to as Britannia Theen), this brand contains the benefits of arrowroot known to aid digestion and remove harmful toxins from the body. Prior to 1998 it was being marketed as Britannia Jacob's Thin.

NutriChoice Cream Cracker - As nature would have wanted it to be

Ask any biscuit manufacturer and they will tell you how difficult it is to make this biscuit, especially with next to nothing sugar, with NO added colors and flavorings for taste. It is this neutral taste that makes it an ideal choice to be consumed with hot beverages, dips, chutneys, and accompaniments.

NutriChoice Digestive - Delightfully tasty and wholesomeMade with 50% whole-wheat and packed with added fibre (10% of our daily dietary needs), these delightfully tasty biscuits are amongst your healthiest bites of the day. In your next visit to a shop just look out for its Golden-green international pack.

In 2007, NutriChoice SugarOut was launched. NutriChoice SugarOut is the most novel product range to have been introduced in the market. The product is not just sweet but tastes great, and yet contains no added sugar. It is sweetened with "Sucralose," derived from sugar, which provides the same sweetness as any other biscuit, without the added calories of sugar.

This range is available in 3 delicious variants namely Litetime, Chocolate Cream, and Orange Cream, targeted towards all health sensitive people. It is also relevant for consumers with sugar- related ailments.

We are confident that you will be pleasantly surprised with the great tasting and healthy range of NutriChoice. Try one and you'll know that you've made one smart choice.

NutriChoice 5 Grain

Most consumers believe that to in order to stay healthy one needs to make certain compromises on some good things in life. Whether it is missing that extra hour of sleep over early morning exercise, or eating unappetizing foods over that extra oil-dripping samosa. At the same time most of us agree that good nutrition cannot come from one kind of food alone, but from a healthy combination / assortment of several healthy ingredients put together. Britannia NutriChoice 5 Grain Biscuits are a perfect answer to those looking for healthy eating options without as much making a compromise on taste, or convenience, or health.

Because Britannia NutriChoice 5 Grain biscuits are made from 5 carefully chosen healthy cereals (Oats that help reduce bad cholesterol, Corn which promotes heart health, Ragi a good source of both Calcium as well as Fibre, Rice low in fat, and Wheat that provides wholesome energy). These biscuits are delicately sweetened with natural honey, and come in a unique large oval shape. It is this large size and the healthy combination of the ingredients, that make it an ideal hunger buster for those in-between meals time hunger.

Britannia NutriChoice 5 Grain biscuit pack contains several small single serve pocket meals packs, so that one is never far away from pacifying hunger on the move. So whenever you miss your breakfast, or succumb to those unhealthy evening snacks, you can relish the goodness of health with Britannia NutriChoice 5 Grain biscuits.

8. Timepass namkee:- Before Timepass, Britannia's offering in the salted cracker category was Snax. Launched in 1999, Snax was promoted as a tastier base for toppings through edgy advertising.

Then in late 2000, supported by aggressive advertising that featured the brand as a perfect partner for timepass moments, Britannia Timepass was launched.

The brand quickly became a leader in Britannia's portfolio and, consequently, Snax was revamped as a lighter product and renamed Britannia Timepass Classic Salted. To further the franchise of the Timepass brand, a variant 'Nimkee' was introduced in the Eastern market in April 2003, and then taken nationwide after a favourable response. Judging by its history, the resounding success of Britannia Timepass will continue to grow.

9. Little hearts:- Little Hearts was launched in 1993 and targeted the growing youth segment. A completely unique product, it was the first time biscuits were retailed in pouch packs like potato wafers. The launch message introduced a special taste experience that made the unlikeliest characters - like Dracula and Frankenstein - melt. In 1997, the 'Direct Dil Se' campaign encouraged youngsters to openly express their feelings. And in 2003, two variants called Little Hearts Chocolate and Little Hearts Sesame were rolled out with a campaign "Dil sabka actually sweet hai". With Little Hearts, Britannia has tasted the sweet taste of success.

10. Nice time :- Britannia Nice Time was the pioneer of sugar sprinkled biscuits in India. This unique product managed to create such a strong consumer pull that soon there was a rush of pretender products in the market, clearly indicative of the success of the concept. Today, Nice Time has a fan base spread across India, and, particularly, East India, where its consumers have grown up with the brand. Especially popular amongst children, Britannia Nice Time has managed to create a loyal franchise for itself and is a strong brand loved by people of all ages.

11. Daily fresh : - Till 1958, there were no breads in the organised sector and bread consumption was a habit typified by the British. Then, a mechanised bread unit was set up in Delhi with the name "Delbis" which produced sliced bread and packed it under the Britannia name. Thus, Britannia was not only the pioneer, but also inculcated in the people of Delhi the habit of eating white sliced bread.

The Mumbai unit came up in 1963, and there again Britannia was the first branded bread in the city. From a company offering 2 packs - the 400gm and the 800gm plain white sliced bread - Britannia has evolved into a company offering 22 packs, catering to a variety of taste and price segments in the bread consuming market. The last couple of years also saw the introduction of Whole Wheat Bread as a part of "Eat Healthy, Think Better" credo.

CakesBritannia entered the cake market in the year 1963 and is the top player in the market. Britannia Cakes range is divinely scrumptious

and has both Bar Cakes and Cup Cakes which were launched in 2005. Bar Cakes are available in variants that include Fruit, Butter Sponge, Chocolate, Pineapple, Milk, Vanilla Chocolate and Orange. Apart from being delicious, these snacks are packed with healthy ingredients making them wholesome & delightful.Britannia cup cakes come in vanilla and orange flavours.

Rusks Britannia launched its rusks in the year 2005. In a Market full of unbranded players, Britannia rusks have stood head and shoulders above the rest in terms of sheer quality .They are made from the finest ingredients and baked with care as they are twice as crisper as and tastier than ordinary rusks. The communication for this mouthwatering offering is aptly “Enliven your spirits with Britannia rusks”.

CUSTOMER

TARGET AUDIENCE:-

It is an effort to increase a company's precision marketing. The starting

point of any segmentation discussion is mass marketing. In mass

marketing, the seller engaged in the mass production, mass distribution

and mass promotion of one product for all buyers. Market segment

consists of a large identifiable group within a market with similar wants,

purchasing power geographical location, buying attitudes or buying

habita. It is an approach midway between mass marketing and individual

marketing. Through this the choice of distribution channels, and

communicaton channels become much easier. The researchers try to

form segments by looking at consumer characteristics; geographic,

demographic, and psychographic. After segmenting the market then

target market selected.

Distribution channel:- This plays a major role in the entire marketing

system. the company emphasis on it's distribution network. Proper

distribution network gives proper availability of the product.By adopting

various promotional activities the company create strong brand image. It

also helps in increasing the brand awareness. It includes advertising,

sales promotioins and public relations etc.

Customer relationship :- Nowadays a good relation with customer is

very important for organization. Sale is totally depending on the relation

with the customers. Customer's retention is also a major aspect for

growing business. It means keep the old customer and try to make new

customer.

Customers always believe in good quality product. in my survey I found

that in percentage term more people is quality conscious and not price

conscious. Customer satisfaction is very important part of the

organization that at any cost they have to fulfill.

INFRASTRUCTURE

Value configuration:- Under the market strategy promotional idea is

very important. Organization provides some schemes or rebates to

retailers or consumers. They make advertisement according to

convenient of the people and the feature of the product.

So on the basis of marketing strategy a organization runs in the market.

It is several types of which makes helpful to increase sales and turnover

of the organization.

Capability:- 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 "Swasth Khao Tan Man Jagao"

(Eat Healthy, Think Better) re-position directly addressed this new trend

by promising 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

Partnership:- The Wadia Group of India along with Groupe Danone of France, are equal shareholders in ABIL, UK which is a major shareholder in Britannia Industries Limited. GROUPE DANONE is an International FMCG Major specializing in Fresh Dairy Products, Bottled

Water and Biscuits/Cereals. One of the World leaders in the food industry, these are some of the laurels it possesses:

No # 1 worldwide in Fresh Dairy Products No # 1 worldwide equally placed in Bottled Water (by volume)

No # 2 worldwide in Biscuits and Cereal Products

Through its three core businesses (Fresh Dairy Products, Beverages and Biscuits and Cereal Products), GROUPE DANONE is committed to improving the lives of people around the world by providing them with better food products, a wider variety of flavors and healthier pleasures. Its dominant position worldwide is based on major international brands and on its solid presence in local markets (about 70% of global sales come from brands that are local market leaders).

FINANCIAL PERFORMANCE

For the year ended 31st March 2008, the Company achieved a sales growth of 17.5% on an expanded base arising from 27.5% growth in the previous year. Net Profit of the Company increased 77.5 % to Rs 1,910 Mn compared with Rs 1,076 Mn in 2006-07. Operating Margin increased by 307 basis points to 7.5%.

The Company witnessed all round growth in key categories with Biscuits recording sales of Rs. 23,299 Mn. Bread, Cake and Rusk business crossed the Rs. 2,700 Mn mark during 2007-08. This business has doubled in two years.

In an intensely competitive biscuit environment, all ³Power Brands² of the Company recorded double digit growth, with Tiger and Good Day growing in excess of 20%. The Company¹s innovation forays have successfully addressed new benefit clusters and NutriChoice Digestive has claimed its position in the health and vitality space. The Company continues to maintain its leadership edge in 6 out of 7 key product segments, the only exception being Glucose.

The business continued to face inflationary pressure in key raw materials such as wheat flour, refined palm oil, skimmed milk powder and other dairy products, as well as energy costs. These were more than offset on the cost side through operational and procurement efficiencies, productivity improvements, cost reduction programs and on the revenue side through improved product mix and higher realisation, aided by strong consumer off take.

Exceptional items for the year include Rs 130.5 Mn towards amortisation of VRS costs. Earnings per Share are Rs. 80 compared with Rs.45.1 last year.