PowerPoint Presentation

                     PROJECT ON        

                 MARKETING MIX 

                            OF  

           BRITANNIA INDUSTRIES 

                        LIMITED

      SUBMITTED BY:                                               SUBMITTED TO: 

SNEHA GHOSH 09                                    DR. CHINMAYKUMAR DASH 

TAMOJIT DAS 14 

MEGHNA MAITY 28 

DIVYANSHI VERMA 20

ABHIRUCHI SINGH 16             

                                      BBA LL.B 2ND SEM (batch 2020-2025)

    ADAMAS UNIVERSITY,KOLKATA

INTRODUCTION & HISTORY

Britannia Industries Limited is an Indian food and beverage company. Founded in 1892 and headquartered in Kolkata, it is one of India's oldest existing companies. It is now part of the Wadia Group headed by Nusli Wadia. The company sells its Britannia and Tiger brands of biscuits, breads and dairy products throughout India and in more than 60 countries across the world. Beginning with the circumstances of its takeover by the Wadia group in the early 1990s, the company has been mired in several controversies connected to its management. However, it does enjoy a large market share and is exceedingly profitable.

The company was established in 1892 by a group of British businessmen with an investment of ₹295. Initially, biscuits were manufactured in a small house in central Kolkata. Later, the enterprise was acquired by the Gupta brothers, mainly Nalin Chandra Gupta, an attorney, and operated under the name "V.S. Brothers." In 1918, C.H. Holmes, an English businessman based in Kolkata, was taken on as a partner and The Britannia Biscuit Company Limited (BBCo) was launched. The Mumbai factory was set up in 1924 and Peek Freans UK, acquired a controlling interest in BBCo. Biscuits were in high demand during World War II, which gave a boost to the company's sales. The company name was changed to the current "Britannia Industries Limited" in 1979. In 1982, the American company Nabisco Brands, Inc. acquired the parent of Peek Freans and became a major foreign shareholder.

MARKETING MIX OF BRITANNIA 

The marketing mix of Britannia discusses the marketing mix strategy of Britannia Industries Limited (BIL), which is a market leader in the Indian bakery and biscuit market. Established in March 1918, it has steadily grown and secured itself as one of the heavyweights of India. Its portfolio of brands includes Tiger, Good Day, Marie Gold and 50:50. It became the first company in the East to use imported gas ovens, and as a business, flourished and began to acquire its reputation for quality and value.

Installing automatic plants in Calcutta and Mumbai helped to increase production, and a number of small takeovers strengthened the company’s position. In 1997 the company had a mission change, and identified a ‘eat healthy, think better’ strategy as one they intended to pursue. In the same year

they joined the dairy product market, and released a string of snacks, with this philosophy in mind. Dairy products account for around 10% of the company’s revenue. 

From 1998-2001, the company’s operating profits were 18%, as sales grew at a compound annual rate – against the market – of 16%. More recently, BIL has been seeing growth of around 27% per year, compared to the industry growth rate of about 20%.

BRITANNIA MARKETING MIX- 4P’S STRATEGY

Marketing Mix of Britannia analyses the brand/company which covers 4Ps (Product, Price, Place, Promotion) and explains the Britannia marketing strategy. There are several marketing strategies like product/service innovation, marketing investment, customer experience etc. which have helped the brand grow.

Marketing strategy helps companies achieve business goals & objectives, and marketing mix (4Ps) is the widely used framework to define the strategies. This article elaborates the product, pricing, advertising & distribution strategies used by Britannia.

Let us start the Britannia Marketing Mix & Strategy:

Britannia Product Strategy:

The product strategy and mix in Britannia marketing strategy can be explained as follows:

Britannia manufactures wide variety of biscuits and dairy products. Britannia’s product strategy in its marketing mix width primarily consists of biscuits, bread, dairy, cakes and Rusk. The product line depth is highest for biscuits consisting of several products, followed by cakes and breads. Britannia manufactures biscuits for various segments of consumers; types include sugar free biscuits, cream biscuits and jam biscuits. Some of its popular brands are Britannia Nutrichoice, Britannia Marie Gold, Britannia Pure Magic, Britannia Little Hearts etc. Britannia Tiger biscuits are the most famous of all products. Tiger biscuits also cater to the international markets like Australia, Malaysia and Indonesia. With their joint ventures with dairy companies, Britannia is now able to manufacture and sell cheese, dahi, ghee and butter. Its products are primarily intended for middle class people India, which forms the bulk of the population

PRODUCT IN THE MARKETING MIX OF BRITANNIA 

BIL offer a wide variety of edible goods. Bakeries set up in the 1960s at various locations around India ensured a constant supply of fresh bread, and as the company began distributing biscuits from other smaller companies it had taken over, they started to manufacture and release their own biscuits. Their main products include bread, biscuits, cakes, rusk and dairy products. They have continued to release a steady flow of products over the years, for example, fruit bread, or the dairy product half/half. 90% of their revenue, however, comes from biscuit manufacturing. Their combined factory capacity is some 433,000tones per year. In 2006, the Tiger brand part of the company achieved total sales of $150 million. BILs present annual revenue is around Rs 22 billion, nine tenths of which is generated through biscuit sales.

Popular products forming a part of marketing mix of Britannia

Britannia Tiger

Britannia good day

Britannia nice time

Britannia treat

Britannia 50 50

Little hearts

Bourbon

Britannia Marie

Britannia bread and bakery products

Veg. cakes

Britannia dairy products like Cheese, Butter, Ghee, etc.

Britannia nutria-choice range of products.

PLACE IN THE MARKETING MIX OF BRITANNIA

Britannia has been one of the market share holder for many years in India. It has also concluded some foreign deals, such as working with Peek, Frean and Company which is a successful UK biscuit company, and also completed takeovers such as that of Parry’s in 1975 which enabled the company to distribute its goods to more people. The company was built up and was known for many years as ‘the Biscuit King’. Britannia currently has an estimated 38% of the market share.

The company has also invested in its dairy products, and in 2001 announced a joint venture with the New Zealand Dairy, allowing it to produce cheese and butter amongst other things. The company distributes its goods up and down the length and breadth of India. In 2007 BIL agreed to a joint venture with the Khimji Ramdas Group, and acquired a 70% beneficial stake in the Strategic Foods International Company based in Dubai. The company has been voted one of India’s 100 most trusted companies, as listed in the Brands Trust Report For distribution, Britannia follows the FMCG channel of distribution wherein it appoints distributors at select locations. These distributors are then responsible for handling dealers and retail showrooms. Modern trade channels like Big bazaar and D mart as well as others are handled directly by the company. The distribution channel follows breaking the bulk where in large amounts are transferred from factory to C&F, from C&F to distributor and then forward to retailers and dealers. The distribution in urban areas is fantastic with Britannia being present almost everywhere. However, the rural penetration of the company is still less because of the challenges of distribution in rural area. 

FMCG distribution model

Breaking the bulk is applied

Strong distribution in the country

Rural distribution needs to be stronger

PROMOTIONS IN THE MARKETING MIX OF BRITANNIA 

The strongest asset for the promotion of Britannia products is the product itself. The products are tasty and people like it. Thus, a pull is created directly by the product. However, today, no company can exist without promotions and advertising. Same is in the case of Britannia as well. However, the advertising spends for Britannia are controlled because of the brand equity of Britannia products and the presence of the brand for almost a century in the Indian market.

The company uses most of the usual methods of advertising, including billboards, magazines, TV ads and point of purchase advertising. In November 2012, BIL hired Salman Khan to endorse its Tiger range of products. The popular Bollywood actor promotes the core values of the Tiger brand range because of his own dashing style and personality. Britannia has high advertising spends for products like Good day and Bourbon which are almost stars for the Britannia brand. However, the investment for marketing of Dairy products is minimal because a lot of expenses have to be done for the distribution of the products. Britannia has enough brand and clout in the market, because of its constant presence in the last few decades, that its product receives a natural pull from the market. 

Relies more on pull than push

Has amazing brand equity due to presence in the market for last many decades

Concentrates on promoting biscuits more than any other product

PRICE IN THE MARKETING MIX OF BRITANNIA 

Competitive pricing is the sole pricing strategy which Britannia uses. Parle is one of the major competitors of Britannia and in that, Parle G has remained unbeatable for decades. In dairy, Amul is a strong competitor for Milk, Cheese and other dairy based products. In bakery products, you will find local competition as well as Monginis and other veg cake makers who have their own line of products. To stay above all of them, Britannia adopts a competitive pricing strategy. Thus, Britannia products are much better in quality and are good in price as well. The pricing strategy along with distribution has been so strong, that people buy these products even on Railway stations and while traveling, instead of buying local snacks.

Some of the prices of the Famous Britania Products :

           Product Name   WeightPriceBritania Good Day180 gmRs 35.00Britania Coconut Butter Biscuits 180 gmRs 35.00Britania Good Day90 gmRs 12.00Britania Good Day Choco-Nut Cookies90 gmRs 15.00Britania Good Day38 gmRs 5.00Britania Cake16 gmRs 5.00Britannia Milk Bikis Biscuits40.5 gmRs 5.00Britannia Marie Gold Biscuits120 gmRs 15.00Britannia 50-50 Sweet & Salty Biscuits200 gmRs 30.00

DAIRY PRODUCTS

Dairy products contribute close to 10% to Britannia's revenue. The company not only markets dairy products to the public but also trades dairy commodities business-to-business. Its dairy portfolio grew to 47% in 2000-01 and by 30% in 2001-02. Its main competitors are Nestlé India, the National Dairy Development Board (NDDB), and Amul (GCMMF).[7]

Britannia holds an equity stake in Dynamics Dairy and outsources the bulk of its dairy products from its associate.

On 27 October 2001, Britannia announced a joint venture with Fonterra Co-operative Group of New Zealand, an integrated dairy company which handles all aspects of the value chain from procurement of milk to making value-added products such as cheese and buttermilk.[7] Britannia intends to source most of the products from New Zealand, which they would market in India.[6] The joint venture will allow technology transfer to Britannia.[7] Britannia and New Zealand Dairy each hold 49% of the JV, and the remaining 2 percent will be held by a strategic investor. Britannia has also tentatively announced that its dairy business (probably including Dynamic) would be transferred to the joint venture.[7] However, the authorities' approval to the joint venture obliged the company to start manufacturing facilities of its own. It would not be allowed to trade, except at the wholesale level, thus pitching it in competition with DANONE, which had recently established its own dairy business.

PERFORMANCE & PROFITABILITY

Between 1998 and 2001, the company's sales grew at a compound annual rate of 16% against the market, and operating profits reached 18%.More recently, the company has been growing at 27% a year, compared to the industry's growth rate of 20%. At present, 90% of Britannia's annual revenue of Rs 22 billion comes from biscuits.

Britannia is one of India's 100 Most Trusted brands listed in The Brand Trust Report. Britannia has an estimated market share of 38%.

Britannia's net profit FY 2014-2020

Alternative Distribution and Marketing strategies

Along with normal distribution, Tiger is also focusing on bulk supplies at railway platforms, canteens and BPO offices, thereby increasing its reach across regions .Also launched "Chota-Tiger"(smaller packs) with two to three biscuits to facilitate quick eating at consumption avenues. Separate market structure and sales force is devoted to handle this alternative distribution.

WEAKNESS

Brand Tussle

The relation between Britannia’s major stake holders -- Wadias and DANONE, has turned sour since 2005--06 over the alleged unauthorized use of the Tiger brand by Danone in five countries; viz. Singapore, Pakistan, Malaysia, Indonesia and Egypt. Britannia has filed a case against DANONE at Singapore court regarding the same.

Low Profit Margin

After a drop in operating profit margins to 6% levels in 2006-07 from over 11% in the previous year. The current input prices are still significantly higher than previous year. Britannia will have to neutralize the adverse impact of the same through a combination of improve realization per pack, operating efficiencies and mix improvement.

Low penetration in Sub-Urban and Rural Section

Although Britannia has a large established distribution network, but still there is a huge unorganized sector (40% of total Indian biscuit market) operating in sub-urban and rural areas. These regional players mainly eat onto the potential market pie of Tiger biscuits, as it is the brand primarily into mass-market) Lion’s share (70%) of Britannia’s revenue comes from metros

Decrease nutritional value

Increases the cost of food product 

Industry and Technology requires high investments

FINDING & SUGESSIONS

Britannia Products have Global Image.

Customer trust on Brand of Product and Name of Company while purchasing the Product

The Company always tries to deliver a good quality and taste products at reasonable and affordable prices.

The Company should take necessary actions on Complaints made by Customers in order to satisfy them.

The Company should satisfy their employees by giving them Bonus, Incentives, Medical Allowances etc.

Faces stiff competition from their rival Parle and Nestle on the footing of Price and Distribution channels. 

The industry and engineering requires high investing. 

As excessively many different types of trade names enter the market, they might free focal point. 

Even though the monetary values are low-cost, they might not be easy available to the lower income groups.

CONCLUSION

We have studied and analyzed the food products market of Britannia on different aspects of the market strategy and consumers.

According to us, a growth of any product is based on different aspects like manufacturing good quality products, it should be well packed, it should have different quantities, preparing goods with affordable price, publishes their products with the help of advertisement, internet, newspapers etc. , maintaining good and Healthy relations with their customers, analyzing market structures along with their competitors etc.

According to us, a growth of any product is based on different aspects like manufacturing good quality products, it should be well packed, it should have different quantities, preparing goods with affordable price, publishes their products with the help of advertisement, internet, newspapers etc. , maintaining good and Healthy relations with their customers, analysing market structures along with their competitors etc.

Thank You.