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BRITANNIA VS PARLE
By Krishnan L
Industry Analysis
The consumer food industry mainly consists of readyto-eat products or ready-to-cook products such as pasta products, bakery products, biscuits, soft drinks, etc. Bakery industry in India is probably the largest among the processed food industries, the production of which has been steadily increasing in the country. The two major bakery industries, viz., bread and biscuits account for almost 82% of the total bakery products.
Based on the production in India biscuits can be broadly classified into:Main Categories of Biscuits : Glucose, Marie, Sweet, Salty, Cream & Milk. Glucose biscuits accounts for more than 50% of the total biscuit market value, Parle G dominate this market with more than 60% share followed by Britannia and ITC.
Consumption
Industry Research
Objective: To study eating habits with regards to consumption of biscuits amongst people. The composition of choices of food of people for breakfast and snacks shows that only 16% prefer biscuits.
Industry Research
Of the people who consume biscuits 25% people prefer cream biscuits, 12% prefer wafer biscuits, 34% prefer sweet plain biscuits and 29% of people prefer namkeen or salty biscuits.
Industry Research
The number of people who eat biscuits include 37% of people who eat them everyday, 29% eat twice a week, 14% eat four times a week, 8% eat once in 15 days, 6% eat once in 10 days and once in a month.
1892 - Britannia established with an investment of Rs. 295 in Kolkata 2007- Britannia ranked No.1 in the Metros across all categories. The Origin of Eat Healthy Think Better 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. Net sales for FY 2008-09 are Rs 3,112.2 Cr. For FY 07-08 biscuits recorded sales of Rs. 2,329.9 Cr Key Products Tiger, Good Day, Bourbon, 50-50, Treat, Milk Bikis, Marie Gold, NutriChoice, Timepass, Little Hearts
Makeover of Britannia
From being a manufacturer of baked products, BIL kicked off a diversification exercise to become a comprehensive foods company making cheese and other dairy products. BIL hired a Paris based design studio- Shining Strategic design, to craft a new logo and corporate slogan. Research showed that the brand 'Britannia' was synonymous with trust and quality, and the wide portfolio of products was seen as a source of strength .
ales
G R O W T H
M A T U R I T Y
D E C L I N E
Time
SWOT ANALYSIS
STRENGTHS BIL has strong brands like Tiger, Marie gold and Good day. It also has well penetrated distribution network. BIL is holding leadership position in six out of seven sub-categories of biscuits. WEAKNESS BIL is unable to improve its margin since last few quarters due to increasing input costs.
OPPURTUNITIES BIL has immense opportunities to increase its export turnover, which at presents is very meager. BIL can leverage its pillar brands in full swing. It may enter in to other food products or health beverages and to become total foods company.
THREATS Threats of regional and local players are more. Other competitors like ITC and Surya Agro are playing very aggressive role in this era beside the threat of inflation in prices of agriculture based commodities are always attached with it.
Key Products : Parle - G , Hide and Seek ,Krackjack ,Hide & Seek Milano ,Magix ,Digestive Marie ,Monaco ,Parle Marie ,Kreams ,Milk Shakti ,Parle 20-20 Cookies ,Golden arcs ,Nimkin ,Kreams Gold ,Chox ,Monaco Jeera
Brands Ambassadors
With Comics Chandamama, The 60-year-old magazine printed by the company sells 375,000 comic books in 13 languages was used by Parle to advertise its products. With Celebrities The agency figured that they wanted to feature real people as brand ambassadors of Parle-G. And Parle-Gs five driving propositions (taste, nutrition, meal substitution, mental development/alertness, and affordability/value-for-money) by making them integral to the campaign thought.
Hritik Roshan, Aamir khan and Darsheel safary endorsed hide n seek biscuit which raised the market share considerably.
Krackjack
Parle g Monaco
Sales
G R O W T H
M A T U R I T Y
D E C L I N E
Time
SWOT ANALYSIS
STRENGTHS Parle has strong brands like Monaco, Parle g and Krackjack. It also has well penetrated distribution network. It has very good distribution channels in rural areas also. It is the most well known brand. WEAKNESS There are less number of brands under its umbrella than Britannia. Its portfolio does not include breads and cakes.
OPPURTUNITIES The Glucose brand that enjoyed a monopoly in the market for decades surpassed the expectations of its makers, in popularity. It may look for markets aboard.
THREATS Britannia is eyeing the Glucose brand and aims to overtake Parley's within three years' time. The entry of big players in the field could mean more competition for old hands in the game. A big threat to legitimate biscuit makers comes from duplicates. the duplicates market.
Britannia Vs Parle
(Corporate Social Responsibility)
Britannia Industries, Naandi Foundation and Global Alliance for Improved Nutrition have come together to provide specially developed Britannia Tiger Iron Fortified Biscuits for 1.5 million children in Hyderabad as part of the AP Governments mid-day meal programme.
Every year, Parle organizes Saraswati Vandana in the state of West Bengal during the festival of Saraswati Puja, inviting schools from all across the state to participate. These events gives a chance to interact with children on a one-to-one basis, and promote the belief of fun and health for the whole family.
Britannia Industries Ltd has developed several brands and created recipes in respect of its products. The TIGER Brand which was developed by the Company has become one of the most successful brands in the country, with significant potential outside the country too.
Parle Products Ltd has been using the trademark GLUCO on its biscuits popularly known as Parle-G biscuits. The Parle-G is given more prominence on the packet than the GLUCO. Parle has strong brands like Monaco, Parle g and Krack jack. It also has well penetrated distribution network. It has very good distribution channels in rural areas also. It is the most well known brand.
MARKET SHARE
13 %
39%
8%
33%
upcomings
2010 New Prospects in the Indian Biscuit Industry GlaxoSmithKline Consumer Healthcare: Junior Horlicks Biscuitstoddler biscuit category. PepsiCo India Launched biscuit brand Aliva, it will be produced by food division Frito Lay India. United Biscuits (UK), worlds third largest biscuit company, is set to enter India market. Shakti Bhog plans to enter biscuits segment
CONCLUSION
Britannia and Parle, both are leaders in their respective segments. Parle should enhance its product mix and focus on lifestyle products. Britannia should develop economy range biscuits to capture the low income groups.
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