Project report on Britannia

PROJECT GUIDE: SUBMITTED BY:

CONTENT:-

INTRODUCTION

COMPANY PROFILE

HISTORY

SEGMENTATION

MARKET SEGMENTATION

PRODUCT

TIGER

LITTLE HEART

MILK BIKIS

50-50

FINANCIAL ANALYSIS

BRITANNIA IN OVERSEAS

PRICE

PROMOTION

PLACE

SWOT ANALYSIS OF BRITANNIA

CONCLUSION

INTRODUCTION:-

The story of one of Indian’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 investment of Rs. 295. The company we all

know as Britannia today.

COMPANY PROFILE:-

Britannia Industries limited is an Indian food-products corporation

based in Kolkata, India. It sells its Britannia and Tiger brands of

biscuit throughout India. Britannia has an estimated 38% market

share.

The Company’s principal activity is manufactured and sale of biscuits,

bread, rusk, cakes and dairy products.

HISTORY:-

The company was established in 1892, with an investment of

Rs.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, a renowned

attorney, and operated under the name of “V.S. Brothers.” In

1918, C.H. Holmes, an English businessman 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 big demand during World War II, which

gave a boost to the company’s sales. The company name

finally was changed to the current “Britannia Industries Limited”

in 1979. In 1982 the American Company Nabisco Brands,

became a major foreign shareholder. In 1997 the company

repositioned itself as “Eat Healthy, Think Better”. By becoming

the core sponsors for 1997 world cup they enhanced their

brand identity and brand image. 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.

SEGMENTATION:-

Biscuit market in India can be segmented as follows:

Glucose

Marie

Snack

Digestive

Cream

Premium

Crackers

MARKET SEGMENTATION:-

• Age group – different product for different age groups. E.g.

Tiger and treat for kids, little hearts for youths and good

day for elder ones.

• Niche snacking segment- for those individually which are

on the go, the company introduced small packs.

• Occasions– Britannia’s subh kaamnayein is for special

occasions like festival.

PRODUCT:-

TIGER:-

Butterscotch, elaichi, strawberry, banana, orange, etc.

Key competitors like ITC (sun feast), surya foods (priyagold),

and parle agro do not provide such wide range of flavored

glucose biscuits.

• Targeted basically on kids.

• Positioning is done for modern mothers who play an

enabling role for their children to compete in today's world

and thus want the best.

Over the years, Tiger has become the mass-market face of

Britannia symbolizing fun and energy in both urban and rural

India, and transcending glucose biscuits

Little hearts

IT IS THE ONLY TYPE OF SNACK BISCUIT IN THE MARKET.

A WAFER BISCUIT WITH SUGAR COATING

• LITTLE HEARTS IS TARGETED TOWARDS THE

GROWING YOUTH SEGMENT.

• A COMPLETELY UNIQUE PRODUCT, IT WAS THE

FIRST TIME BISCUITS WERE RETAILED IN POUCH

PACKS LIKE POTATO WAFERS.

GOOD DAY:-

BRITANNIA GOOD DAY STARTED PREMIUM BISCUITS

ENRICHED WITH CASHEW, BUTTER, BADAM PISTA, ETC.

(1986)

• THIS RICH BISCUIT ENJOYS A FAN FOLLOWING OF

CONSUMERS ACROSS ALL AGES.

• 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.

MILK BIKIS:-

The only biscuits with milk flavored cream, makes it the

most different product in front of its key competitors.

• Milk Bikis too is targeted towards kids who 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.

50-50

This biscuit comes under snack biscuit. It was

launched in 1993. It came with a flavor of maska – chaska as a

difference. It covers 1/3 of the market share.

Financial Analysis

Britannia's gross sales turnover increased to Rs 18,179 mn in

2005-06 from Rs 16,154 mn in the previous year, registering a

growth of 13%. Operating profit at Rs 1,763 mn increased by

7%, profit before tax and exceptional items at Rs. 1,958 mn

declined by 19% against 2004-05 , impacted by the profit on

sale of long term investments that accrued to 'other income' last

year.

[Fig- 2.1: Gross Sales of Britannia]

The Company achieved these results despite significant

increases in input cost, particularly sugar, fuel and oils, coupled

with aggressive pricing in the industry.

The Company's focused initiatives on commercialising market

place opportunities, supply chain efficiencies and overall cost

management resulted in its top line growth and profitability.

Operating margin at 10.3% in 2005-06 compared with 10.9% in

the previous year was impacted by the inflation in input costs.

Despite stiff competition, the Company stabilised and held its

overall market share at 31.7% in volume and 38.8% in value for

the last year.

Exports turnover during the year was Rs 111.71 mn against Rs

71.65 mn in 2004-05, a growth of 56%

[Fig 2.2: Earning per Share of Britannia]

Opening High of the Day Low of the Day Closing12001250130013501400145015001550

28-o129-0130-0131-0101-02

[Fig 2.3: Graph of Share Movement of Britannia Industry on the

BSE]

BRITANNIA IN OVERSEAS:-

MIDDLE EAST

• In March 2007, Britannia industries limited formed a joint

venture with the khimji ramdas group, one of the largest

and the most respected business conglomerates in the

Middle East.

It offers a wide spectrum of products under the brand nutro,

which is a leading biscuit brand in the Middle East.

Sri Lanka 

• 29th august 2008 goes down in the history of our

company as the day, when britannia started

manufacturing and marketing its products in Sri Lanka.

Products manufactured in Sri Lanka include the most

popular milk bikis, milk cream smileys, vita Marie gold,

creams and cookies. 

PRICE:-

• All the biscuit under Britannia has kept appropriate pricing.

• Every biscuit has economy packs to family packs.

• This style covers every economic segments in the market.

PROMOTION:-

• Sales-promotion – e.g. Eat healthy ,think better, buy

Britannia ,see cricket ,eat only Britannia

• Exchange 4 empty packs with a booklet, when tiger

was introduced in the market.

• Britannia supplied note books, scales pencils to

children in the name of its new brand of cost.

• Britannia is providing small gifts in the Britannia

treats pack.

PLACE:-

• Communication channel – TV , radio

• Distribution channel – big bazaar , retail shop

• They give first communication channel on

advertisement, promotion.

They spend huge amount own money over to distribution

channel, they keep their product in front of customer, they

complete to customer to purchase.

SWOT ANALYSIS OF BRITANNIA:-

Strength

Fulfil one of our Basic

Requirement among Air ,

Water , Food, Shelter

Widely accepted in all

Generations

Easily available in various forms

Provide good Instant Remedy

for hunger in the form of

readymade food

Preserves the non-seasonal

food and makes it available all

throughout the year

Weakness

Decreases nutritional value

Increases the cost of food

product

Industry and technology

requires high investment

Regular usage of processed

food can cause alteration in

health

Opportunities

Increase economy of India

Generate employment

opportunity

Good quality of Goods

Provide competition to foreign

companies

Improve living standard

Provide goods to nation at

cheaper rate

Inflow of foreign reserve and

funds for the govt.(taxes)

Threats

Many companies are result

oriented

Increase in pollution

Sometimes provide poor quality

of product for more profit

Lack of technology

Unable to utilize all the

resources efficiently

CONCLUSION

After going thick on the thing, now time is to make a complete

picture. While making a product a SKU (Stock Keeping Unit) of

the shop retailers think about the GMROI (Gross Margin Return

on Investment) and they promote the brand which provide them

highest. They expect return in the form of profit margin,

company schemes, window display and references of the shop.

Among these, company schemes make the differences and are

the highest source of motivation after profit margin. Retailing

demands a constant push from the company.

Marketer needs to use advertising and brand building strategies

to address the discerning buyers and retail push to in different

buyers. The manufacturer should understand consumer

behaviour because retailers can't help quality and price. It is

only up to dealers said it is demand they sell Britannia 42%

agree that at retail shop it is brand popularity, which determine

the purchase of biscuit.

There is a greater need to understand the retailer behaviour

considering them as a team working for the company may help

them to be attached to the company. There should be feeling of

belonging to the company in inner of the retailers. Setting

values club for retailers so that they may exchange views with

the company and help in understanding consumer behaviour.