BRITANNIA -NUTRICHOICE

NIKHIL YADAV,13150,

MBA++[MARKETING]PUMBA ,PUNE.

PUMBA

BRITANNIA

BISCUIT MARKET:• India Biscuits Industry is the largest among all the

food industries in India. • Turn over around Rs. 15000 CRORES!!!!• India is known to be the second largest

manufacturer of biscuits • States that have the larger intake of biscuits are

Maharashtra, West Bengal, Andhra Pradesh, Karnataka, and Uttar Pradesh. Maharashtra and West Bengal, the most industrially developed states, hold the maximum amount of consumption of biscuits.

• Indian biscuit industry has occupied around 55-60 percent of the entire bakery production

• Even, the rural sector consumes around 55 percent of the biscuits in the bakery products.

- Sources: http://business.mapsofindia.com/india-industry/biscuits.html#sthash.Bz9Mg0bG.dpuf

SOURCES:FBMI

SOURCES-BUSCUIT INDUSTRY ON slide share

Sources- parle-g marketing strategy on slide share

• Northern States: 28%Southern States: 24%Western States: 25% Eastern States: 23%

• Glucose 44%Marie 13%Cream 10% Crackers 13%Milk 12%Others 8%.

Sources: biscuitfederation.com

Few years back, large scale bakery manufacturers like cadbury, nestle, and brooke bond tried to trade in the biscuit industry but couldn't hit the market because of the local companies that produced only biscuits.

• The Federation of Biscuit Manufacturers of India (FBMI) has confirmed a bright future of India Biscuits Industry. According to FBMI, a steady growth of 15 percent per annum in the next 10 years will be achieved by the biscuit industry of India. Besides, the export of biscuits will also surpass the target and hit the global market successfully.

Sources:biscuitfederation.com

“I confirm to the view that there are three things of companies –those that watch things happen, those that make things happen ; and those that wonder what happened. We certainly wish to make things happen.” Sunil K Alagh, Managing Director and CEO August 1998.

Vision " Dominate the branded dairy market in India with milk and milk products that enhance the health and well

being of the consumer”

“Our vision is that every third Indian must be a Britannia Consumer . We want to build a universal acceptance for the brand Britannia , while expanding our business within the bakery segment and in other select synergetic food and beverage area” to reflect this new philosophy BIL had changed its Corporate logo and slogan in 1997

Profile •Registered in March 21 1918.•One of the best known brand, its all about eating healthy for leading a better life.•Largest company in the Indian food processing industry,whose product range also includes Bread and Cakes.•Exporter of key Biscuit brands.•Flagship product “milk Bikkis” and “Marie Gold”.•CEO of Britannia Industries “Mrs. Vinita Bali”

Main Competitors Product CompetitorGlucose biscuit

Parle

Cakes Mongiris “western India” advantage of being first brand in this segment.

Bread Modern food, small scale industries.

Cheese/ butter

Amul, Dabur, Nestle

Dairy whitener

Amul , Nestle,Every day, HLL’s Milkana

HistoryThe company was incorporated in 21st March ,as a public limited company under the Indian Companies Act 1913. The company manufactured bakery and soybean ,export of cashew, kernels marine products, general merchandise items and computer software.•1921-became the first biscuit company in India to install and run a gas oven plant.•Established a factory at “Kasara Pier Road, Mumbai” .In the same year ,the company became a subsidiary of “Peek Fren &co.Ltd”, and further strengthened its position by expanding the factories at Calcutta and Mumbai.

•1939-45- A large part of companies production was diverted to war effort on account of world war II , and 95% of the total capacity was booked for the production of “service biscuit.”•1954- The development of high quality sliced and wrapped bread in India was pioneered by the company and was manufactured at Delhi.•1979- On 3rd October the name of the company was changed from Britannia biscuit CO.LTD to Britannia Industries LTD.•1980- Company Signed 10 year technical collaboration with Nebico PVT. LTD, Nepal.

•1989- The Executive Office relocated to Bangalore•1992-BIL celebrates its Platinum Jubilee•1993- Wadia Group acquires stake in ABIL, UK and becomes an equal partner with Groupe Danone in BIL•1994- Volumes cross 1,00,000 tons of biscuits

•1997- Re-birth - new corporate identity 'Eat Healthy, Think Better' leads to new mission: 'Make every third Indian a Britannia consumer‘ BIL enters the dairy products market•1999- "Britannia Khao World Cup Jao" - a major success! Profit up by 37%•2000-Forbes Global Ranking - Britannia among Top 300 small companies•2001 -BIL ranked one of India's biggest brands ,No.1 food brand of the country ,Britannia Lagaan Match: India's most successful promotional activity of the year Maska Chaska: India's most successful FMCG launch

Milestone

•2002- BIL launches joint venture with Fonterra, the world's second largest dairy company ,Britannia New Zealand Foods Pvt. Ltd. is born ,Rated as 'One amongst the Top 200 Small Companies of the World' by Forbes Global ,Economic Times ranks BIL India's 2nd Most Trusted Brand,Pure Magic -Winner of the Worldstar, Asiastar and Indiastar award for packaging• 2003- ‘Treat Duet'- most successful launch of the year, Britannia Khao World Cup Jao rocks the consumer lives yet again •2004- Britannia accorded the status of being a 'Superbrand‘,Volumes cross 3,00,000 tons of biscuits ,Good Day adds a new variant - Choconut - in its range•2005 - Re-birth of Tiger - 'Swasth Khao, Tiger Ban Jao' becomes the popular chant! ,Britannia launched 'Greetings' range of premium assorted gift packs,The new plant in Uttaranchal, commissioned ahead of schedule,The launch of yet another exciting snacking option - Britannia 50-50 Pepper Chakkar

Milestone

Launches•1986- Good-day•1989- Circuit and pure Magic•1990- Eliachi Cream , Petit Beure, Milk Bikkis and Fruit Bread.•1992- Little Heart•1993- Fifty-Fifty•1994- Bakers Choice, Thinlite• 1995- Pure Magic•1996 – Marie Gold•1997-Jim Jam, tiger, Chekkers•1999- Flavored Milk Brand “Zip-Sip”

Slogans•“Eat healthy think Better” The first two words convey rational benefit while think better has an emotional appeal.•Hindi slogan “swath khao, tan man jagao” it represents India core cultural ethos-good food leads itself to a healthy mind.

Name of the company Country of Incorporation

International Bakery Products Limited India

J B Mangharam Foods Private Limited India

Sunrise Biscuit Company Private Limited India

Britannia Lanka Private Limited Sri Lanka

Britannia and Associates (Dubai) Private Co. Limited

Dubai, UAE

Britannia and Associates (Mauritius) Private Limited

Mauritius

Klassik Foods Private Limited India

Al Sallan Food Industries Company SAOC Oman

Britannia Dairy Private Limited India

SUBSIDIARIES

Exports•USA•Ghana•Saudia Arabia•Kuwait•Bahrin•UAE•Oman•Seychelles•Singapore

Eat Healthy,Think Better

Swasth Khao Tan Man Jagao

Segmentation

Biscuit market in India can be segmented as follows:GlucoseMarieSnackDigestiveCreamPremiumCrackers

TARGET SEGMENTHealth conscious Fitness consciousDiabetic patientAge group 40+[ more prone to diseases]

PRODUCT PORTFOLIO:

ProductsTiger Banana- Britannia Tiger Banana packed with IRON ZOR and goodness of Banana is accessible to all, being available inconvenient packs priced at Rs.2, Rs.4 and Rs.10. IRON ZOR helps make mind sharper and body stronger.

NutriChoice SugarOut Sounds like yesterday when people commented that healthy foods meant compromising on the taste. The product is not just sweet but tastes great, and yet contains

More Products……

• Treat Fruit Rollz Want to know a little secret? They make the besttiffin treats! Fruit Rollz is indeed a yummy snacking option for kids, while keeping the Moms assured about the goodness provided by the fruit filling.

• Britannia 50-50 Pepper Chakkar - The tangy and • distinctivepepper flavoured biscuit, is truly a • case of leveraging the marketingmix to best • advantage

NUTRICHOICE PRODUCTS-:

1. Oats Cookies

2. Ragi Cookies

3. Nutrichoice Health Starter Kit

4.Nutrichoice 5 grain

5. NutriChoice SugarOut

6. NutriChoice Digestive Biscuit

PRODUCT LINE VARIANTS:• 1. Nutrichoice-hi fibre

– 75 gm*[pack of 5]= Rs.275– 250 gm = 502. Nutrichoice –cookies[oats & ragi] 150 gm – Rs 55 75 gm – Rs 303. Nutrichoice multigrain 100 gm – Rs25 200 gm – Rs504. Nutrichoice classic life cracker 300 gm – Rs 455. Nutrichoice sugar out flavours:lite time, chocolate, orange.

Sources:britannia.co.in

Current Market Scenario

• According to A.C Nielson, Parle has overtaken Britannia in the biscuits market which is Rs 15,000 crores plus in terms of revenue.

• Parle has close to 45% share of the biscuits market while Britannia has 38% share. For years, these two companies were tied in market share with 35 % share each.

• The Rs 3600 crores premium cream biscuit market has turned hyper competitive with Cadbury's Oreo and ITC's Sunfeast brands biting into the share of Britannia Industries, and Parle Products planning to enter super-premium creams.

• GlaxoSmithKline Consumer Healthcare: Junior Horlicks Biscuits-toddler biscuit category.• PepsiCo India Launched biscuit brand Aliva, it will be produced by food division Frito Lay

India.• United Biscuits (UK), world’s third largest biscuit company, is set to enter India market.• Shakti Bhog plans to enter biscuits segment.Sources:businessmaps.india.com

KEY LEARNINGS:

• India’s lower and middle class segment will continue to hold the key to success of the biscuit industry in India.

• Distribution (in rural markets) and advertising (in urban markets Innovation) and launching of new brands are being adopted by the companies to grab the market.

• The companies have added new variants into their existing brands including stylish packaging.

• One factor on which smaller players like Bisk Farm, Priya Gold, etc., are leveraging is the "quality". Since most of the bigger players like Britannia and ITC outsource their manufacturing, there is difference in the quality of biscuits contrary to these firms who do the production in-house.

• The focus on urban markets have also contributed significantly to the growth of the biscuit industry.

• Standard grocers are the leading distribution channel, with one third of the Indian biscuit market, by value. Traditional grocers are the only other channel to take a double-digit share.

Future Outlook•Sunil K Alagh, Managing Director and CEO(August 1998) of Britannia Industries said “we will look at only those areas where we can be number one or two”•Britannia Industries limited 1996-97 annual report stated “the need of the hour is to become a low cost producer without compromising on the quality of our product , this will give us the cutting edge in the market place. We are doing this by installing modern process equipments and state-of-the-art packaging systems, focusing on quality, global productivity and developments of new products and processes. Those actions will help us in consolidating our position as a vibrant and stronger player in the core bakery operations”