Beruflich Dokumente
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MBA MARKETING
SRM ASSIGNMENT 2
NHCE
BRITA
NNIA
INDUS
TRIES
SRM ASSIGNMENT 2
NHCE
VISION
To be one of the best biscuit and baked snack products in Europe.
To produce innovative products for an ever changing markets.
Healthy biscuits and snacks using finest ingredients.
MISSION
We believe in quality and service. We believe that you as a client, should be able to rely fully
on the professional ability of your cleaning Contractor.
Your organization is as important to us as it is to you.
We believe that Britannia as youre appointed Cleaning Contractor should take full ownership
and responsibility for the Cleaning and Maintenance of your buildings, leaving you as a client
free to concentrate your time fully on your core business where you actually generate your
income.
We have made a promise to ourselves not to compromise and never put our name to poor
standards, we never have or ever will. We are confident in our quality and reliability.
We want you to be confident in promoting your Companies professional Image to
the world by choosing the services of Britannia Services Group we will ensure it is a
clean one. Britannia Services Group is quality and service you can trust. That is our
guarantee to you.
Type
Industry
COMPANY PROFILE
Public(BSE: 5
00825
NSE: BR
ITANNIA
)
Food
process
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Founded
Headquarters
Number of locations
Area served
Key people
Products
Revenue
NHCE
ing
1892
Kolkata,
West
Bengal/
Bangal
ore
(Karnat
aka), In
dia
300
stores
(2000)
India
Nusli
Wadia,
(Chairm
an)
Vinita
Bali, (M
D)
Bakery
product
s,
includin
g biscui
ts,
bread,
cakes
and
rusk,
and dai
ry
product
s,
includin
g milk,
butter,
cheese,
ghee
and
dahi
46.70
billion (
US$790
million)
(2011)
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Profit
Parent
Website
NHCE
1.34
billion (
US$23
million)
(2011)[
Wadia
Group
www.bri
tannia.c
o.in
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the previous year. Net Profit for the year at Rs. 191 crores grew by 77.6%. Operating
margin improved by more than 300 basis points.
For the last quarter of the year, the Company reported Net Sales of Rs. 6, 92 crores &
Net Profit of Rs. 61 crores, up 15.6% & 53.6% respectively, over the corresponding
quarter last year. The Board of Directors has recommended a dividend of Rs. 18 per
share of Rs. 10 each. Total payout including Dividend Distribution Tax amounts to Rs. 50
crores for the year.
In the food processing industry it ranks 2nd among the top 3 in net sales in India
Rank
Company
Net Sales(03/07)
Nestle
3500 crores
Britannia
2200 crores
Glaxo smith
1300 crores
Ratios
Mar
2007
Mar
2006
Mar
2005
Mar
2004
Mar
2003
Operating margin
5.85
(%)
11.72
11.58
11.21
11.35
Gross profit
margin (%)
10.46
10.39
9.65
9.34
8.48
9.25
8.16
7.59
Current ratio
1.35
1.18
1.10
0.86
Ratio
4.70
1.02
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2000
NET PROFIT
(IN MILLION RS)
2005-06
1500
1000
500
0
1
YEARS
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1997-98
10000
1998-99
1999-00
2000-01
2001-02
2002-03
2003-04
2004-05
2005-06
8000
6000
4000
2000
0
1
YEARS
Kerala businessman Rajan Pillai secured control of the group in the late 1980s,
becoming known in India as the 'Biscuit King'. In 1993, the Wadia Group acquired a stake
in Associated Biscuits International (ABIL), and became an equal partner with Group
DANONE in Britannia Industries Limited.
In what The Economic Times referred to as one of India's most dramatic corporate
sagas, Pillai ceded control to Wadia and DANONE after a bitter boardroom struggle, then
fled his Singapore base to India in 1995 after accusations of defrauding Britannia, and
died the same year in Tihar Jail The company is growing at a steady rate, and is currently
profitable. 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 Britannias 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.
The Wadias' Kalabakan Investments and Groupe DANONE had two equal joint
venture companies, Wadia BSN and UK registered Associated Biscuits International
Holdings Ltd., which together held a 51 per cent stake in Britannia. The ABIH tranche
was acquired in 1992, while the controlling stake held by Wadia BSN was acquired in
1995. It was agreed that, in case of a deadlock between the partners, DANONE was
obliged to buy the Wadia BSN stake at a "fair market value. ABIH had a separate
agreement signed in 1992 and was subject to British law.
Wadia was to be DANONEs partner in the food and dairy business, and product launches
from Groupe DANONEs were expected but never materialised despite the JV being in
existence for over 11 years in India. Under the 1995 joint venture agreement, DANONE is
prohibited from launching food brands within India without the consent of the Wadias. In
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addition, the partners agreed there would be the right of first refusal to buy out the
remaining partner in the event of the other wishing to sell its holding.
In May 2007, Nusli Wadia told the Ministry of Commerce and Industry that DANONE
invested in a Bangalore-based bio nutrition company, Avesthagen in October 2006
in violation of the government's Press Note 1, 2005, which requires a foreign
company to obtain the consent of its Indian joint venture partner before pursuing
an independent business in a similar area, including joint ventures based purely on
technical collaboration. DANONE argued that Press Note 1 did not apply to it as it
did not have a formal technology transfer or trademark agreement with
Avesthagen, and that its 25% holding in Britannia was indirect. Wadia also filed a
case in the Bombay High Court for a breach of a non-competition clause in that
connection. The court ordered DANONE not to alienate, encumber or sell shares of
Avestagen.
In September 2007, the Foreign Investment Promotion Board of India rejected DANONEs
claims that it did not need a non-compete waiver from the Wadias to enter into business
in India alone.
In June 2006, Wadia claimed DANONE had used the Tiger brand to launch biscuits in
Bangalore.
After a prolonged legal battle, DANONE agreed to sell its 25.48% stake in Britannia to
Leila Lands, which is a Wadia group entity based in Mauritius, and quit this line of
business. The deal was valued at $175200 m. With this buy-out, Wadia holds a majority
stake of 50.96%.
MARKET SHARE:
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Mar
Aug
Jul/Aug
Listing Information
Face Value Of Equity Shares
Market Lot Of Equity Shares
BSE Code
NSE Code
BSE Group
2
1
500825
BRITANNIA
A
No
No
No
Yes
Yes
Yes
No
Listing On
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Listed On
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found out that DANONE had launched the Tiger brand in Indonesia in 1998, and later in
Malaysia, Singapore, Pakistan and Egypt, when it attempted to register the Tiger
trademark in some of these countries in 2004. Whilst it was initially reported in
December 2006 that agreement had been reached, it was reported in September 2007
that a solution remained elusive. In the meantime since DANONEs biscuit business has
been taken over by Kraft, the Tiger brand of biscuits in Malaysia was renamed Kraft Tiger
Biscuits in September 2008.
Britannia initiated legal action against DANONE in Singapore in September 2007. The
dispute was resolved in 2009 with Britannia securing rights to the Tiger brand worldwide,
and DANONE paying Rs220 million to utilize the brand.
Britannia Indias No. 1 Biscuit Brand: Rated as Super Brand for 2 consecutive years
SRM ASSIGNMENT 2
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Encompasses
Material
Manufact
urer
Distribut
or
Funds
Retailer
Custome
r
Info
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Distribution Strategy
Parle Factory
Distributor
( Institutional
)
Institutions
Eg. Hospitals
Distributor
(Retailer
)
Retailer
Customer
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SWOT ANALYSIS
Strength
1. Around 120 years in the industry
2.Indias most trusted brand with strong brand recall
3. Wide range of bakery products like biscuits, rusks, cakes and dairy products like milk,
butter, cheese, etc.
4. Strong distribution network ensuring proper availability of the products even in the
remotest of areas
5. Major share in biscuits industry
6. Marketing and advertising efficiency
7. Innovative products for health conscious people like oats and porridge, Nutri Choice
biscuits for diabetes patients, Vita Marie Gold, etc.
8. Strong presence in rural markets
9. Products for all food and snacks segments
Weakness
1. Lower market share in dairy segment
2.Heavy expenditure on advertising and marketing
3. Similar products produced by many companies means high brand switching
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Opportunity
1. Increase in purchasing power of people in India
2.Increase its share in the dairy industry
3.Product line extension
4. Expansion in other countries
Threats
1. Lower price offering competitors
2.Local dairies and bakeries
3.Inflation can cause fall in sales and revenue
4. Rise in cost of raw materials
MANAGERS ROLE:
Vinita Bali, Managing Director, Britannia Industries, joined the company as Chief Executive
Officer in January 2005. Since Vinita joined Britannia as CEO in 2005, the company almost doubled
its turnover in just four years, growing at an annual rate of c23%, as compared to the previous three
years 10-11% growth. She has led Britannias charge beyond its core biscuits business into
categories such as dairy and bakery, and moved into international markets with Britannias range of
products. She received her Bachelor's Degree in Economics from LSR at the University of Delhi and
her MBA at the Jamnalal Bajaj Institute of Management Studies at Bombay University.
She pursued postgraduate studies in Business and Economics at Michigan State University on
a scholarship from The Rotary Foundation, and was selected to work as a Graduate Intern at the
United Nations headquarters in New York. She started her career with Voltas Ltd.-a Tata Group
company focusing on consumer products, where she launched Rasna soft-drink concentrate. In
1980, Vinita joined Cadbury India. The Coca-Cola Company chose her as its worldwide Marketing
Director in 1994 where she was responsible for the worldwide strategy for Coke. In 1997 she took
over as Vice President of Marketing for Latin America, and in 1999 relocated to Chile as President of
the Andean Division with sales in excess of US$1bn.
In 2001, she was made a corporate officer of The Coca-Cola Company and appointed Vice
President of Corporate Strategy reporting to the Chairman. After a nine-year association with Coke,
Vinita joined her mentor at Coke, Sergio Zyman at the Zyman Group in July 2003 as a Managing
Principal and Head of the Business Strategy practice in the company's Atlanta office. As a member of
the company's Board of Managers, Vinita shared responsibility for developing and managing Zyman
Group's consulting business.
Britannia was started in 1892 in a nondescript house in Calcutta (now Kolkata) with an initial
investment of Rs295. By 1910, with the advent of electricity, Britannia mechanized its operations, and
in 1921, it became the first company east of the Suez Canal to use imported gas ovens. In 1975, the
Britannia Biscuit Company took over the distribution of biscuits from Parry's who till then distributed
Britannia biscuits in India. In the subsequent public issue of 1978, Indian shareholding crossed 60%,
firmly establishing the Indianans of the firm. The following year, Britannia Biscuit Company was rechristened Britannia Industries Limited (BIL). Four years later in 1983, it crossed the Rs1bn revenue
mark. 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.
MARKET RESEARCH:
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"Britannia Industries' net profit jumps to Rs.878.50 million against Rs.530.20 million in the
corresponding quarter ending of previous year, an increase of 65.69 percent. Revenue for the quarter
rose 13.66 percent to Rs.15024.20 million from Rs.13218.90 million, when compared with the prior
year period. Reported earnings per share of the company stood at Rs.7.35 a share during the
quarter, registering 65.55 percent increase over previous year period. Profit before interest,
depreciation and tax is Rs. 1529.70 million as against Rs.905.90 million in the corresponding period
of the previous year."
KOLKATA, AUG 12:
Britannia Industries on Monday reported a standalone net profit of over Rs 86 crore for the quarter
ending June 2013; a 99 per cent increase on the Rs 44 crore it reported in the corresponding quarter
last fiscal. Turnover during the period stood at Rs 1,416 crore.
Amongst the expenses, the company reported a substantial increase in advertisement costs. Costs
rose to Rs 127 crore this quarter as compared to Rs 99 crore in June 2012.
Sequentially, however (between March 2013 and June 2013), sales and net profit both witnessed a
marginal drop.
According to Guarang Kakkad, Vice-President-Institutional Research, Religare Capital Markets Ltd,
the increase in net profit was aided by lower interest expense and higher other income. It was
partially offset by higher tax rate, he added.
On a consolidated basis, Britannia, during the period, reported a 93 per cent increase in net to nearly
Rs 90 crore and a 14 per cent increase in turnover to Rs 1,540 crore.
Operating margins improved to 7.7 per cent in comparison to the 4.5 per cent it reported during the
corresponding period last fiscal.
"The expansion in margin is consequent to an improvement in product mix and higher price
realization coupled with an emphasis on cost management, Vinita Bali, MD, Britannia was quoted as
saying in a company release.
The Wadia Group-controlled Britannia Industries expects its biscuit manufacturing unit in Gujarat to
be on stream in another two to three months.
The Gujarat unit is expected to be on stream next quarter. It will entail an investment commensurate
to similar plants, which is in the range of Rs 40-50 crore, said Britannia Industries Managing
Director Vinita Bali, addressing reporters here.
The company, she added, would focus on improving its product portfolio in the bakery and dairy
divisions. Biscuits, cakes, rusk and bread make up the bakery division. Dairy includes milk, butter,
yogurt and allied products.
Britannia, according to Bali, was also planning to sell its unit in Chennai, which has been shut since
2008-09. Plans are also afoot to move from its luxurious corporate office, Britannia Gardens, in
Bangalore, to a new one within the city. The shift is likely to take place early next year.
The Britannia stock closed trading at Rs 732, an increase of almost 5.43 per cent, at the BSE.
SEGMENTATION:
As the companies cannot go to all sectors and to all customers with different needs and demands of
customers. So it is very important for any company to identify various market segments. The
segmentation of BRITANNIA is analyzed as follows:Demographic segmentation:Looking at the age, gender, family size, income and occupation of various people, Britannia also have
segmented there market like:20
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Depending on Age: - Britannia Fruit Rolls is designed basically for the children. Good day, Cream
Creaker, Marry are basically for the more matured people. Little Hearts are designed for the younger
generation people.
Income: - Good Day, Milk Cream is basically for the people little bit of higher income level. Britannia
Marie, Suji tost are basically designed for them who belongs to a little lower level income group.
Different products with packages of Rs. 5, Rs. 10 are also made keeping the income status of people.
Behavioral segmentation:Some peoples behavior changes with their psychology and mood also. Keeping this into consideration
Britannia also has segmented this market.
Benefits: - At tea time we require also some snacks. Keeping this into consideration Britannia has
specified products like Cream Creaker, Suji tost.
User status: - People in dating or love often prefers for some time pass with some food. Britannias
Salted Time Pass and Little Hearts are the perfect solution for that. The Little Hearts biscuit are
extremely dedicated for the people in love as these biscuits are very little in size, shape like heart and
perfectly red colour.
Usage rate: - Britannia has also segmented their market depending on the customer usage rate. Marie
Gold is a product which is for High Usage Rate Customers.
Niche segmentation:It includes the further segmentation of the segments of the original market.
Britannia Slice Cakes and Britannia Good Day are designed for the people who actually also wants
some food characteristics in a biscuit. Different Cream Biscuits are also made for the people who love
to have biscuit with cream.
Target markets
Being a very much consumer market product Britannia have different target markets with different
products. This can be discussed with different products and markets. Being a very familiar consumer
product they basically use a full market coverage strategy with different products.
Britannia tiger: - with a lower price and smaller packs of this product Britannia basically targets for
people with relatively lower income group who are connected about the product quality as well as
with the pricing of the product. With this product Britannia also captured a huge proportion of rural
market of India.
Britannia 50-50:- pricing with a bit higher than Tiger it actually uses the concept of namkeen biscuit
or in other words snacks. People who like to have snacks with tea or anything else Britannia also
targets them with this product.
Britannia Marie gold: - with a bigger packaging size it targets for the families having more number of
people. As the requirement is high so they designed these packets with larger number of biscuits. Also
gives a family like moderate taste.
Britannia Good Day: - actually uses the concept of butter biscuits. It actually targets for the people
with a bit higher income group. Who wishes to buy biscuits not always for food requirement but for
bit of luxuriousness.
Treat Fruit Rollz: - it actually targets the children and uses a concept of celebration. As at the time of
celebrations among the children biscuit is an important issue. It targets the occasion as well as the
minor group of their potential market.
For Britannia Brands a three pronged strategy was followed through
Improved distribution in high growth markets of USA, Canada, Australia, New Zealand
and Singapore,
Launch of new products like Rusk, Nutrichoice 5 Grain, Nutrichoice Digestive, and
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CUSTOMER LOYALITY:
Britannia is one of this country's leading financial services organisations with a strong
competitive advantage from its 'Mutual' organisational structure which provides an
unbeatable link with its customers because its owners (members) are its customers.
Today modern organisations must pay close attention to the 3 Cs which are the basic facts of life of
business success namely customers, competition and costs. Customers provide organisations with
their basic needs through the sales which the organisation is able to make to contented customers.
Competitors provide organisations with a spur to efficiency. No company will be successful unless it
can stay ahead of its competitors.
Costs are the driving force that determine profitability. Successful companies must continually seek
new ways of keeping costs down whilst at the same time giving better value to customers.
The age of the consumer
When a firm produces goods or services it must make sure that it genuinely meets consumer needs.
A business is unlikely to be successful if it tries to deceive customers through advertising and
publicity but at the same time failing to meet their needs. The financial services industry has changed
out of all recognition in the 1990s. In the past the Industry had been characterised by specialisation:
Building Societies focused on managing customers savings and lending money to house buyers in
the form of mortgages
Insurance companies focused on a range of household and business insurances and the provision
of life assurance and pensions.
High Street banks focused on managing customers accounts, money transmission services and a
range of loan and overdraft facilities to private and business customers.
All this has changed as the government has encouraged active competition in the financial services
market. Increasingly, organisations have begun to offer a range of services. Today a modern financial
services organisation acts as a one-stop shop providing a range of benefits to customers:
1. Looking after their savings and rewarding them with interest
2. Providing mortgages and long term loans as well as short term personal loans and overdrafts
3. Providing bank accounts with cheque books, ATMs and other money transmission products
4. Providing customers with a range of insurance and assurance covers and pensions
5. Servicing customers requirements for foreign currency and overseas transactions, etc.
6. Providing a range of business services
7. Buying shares and unit trusts for customers
8. Many organisations, which are household names, now offer all or some of this range of
services and compete strongly with each other. These include Britannia Building Society,
National Westminster Bank and the Prudential.
9. As competition has spread within this sector, so too has the sophistication with which
customers needs are met. This development has been helped particularly by new
technologies such as the on-line database. Today, customers receive a 24 hour service from
financial service institutions through automated services which are to be found on the wall
outside financial services organisations and through telephone links.
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BRITANNIA BRANDS
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in the GCC markets and export their products across the world.
Strategic Food International Co. LLC (SFIC) is one of the largest biscuit and wafer
manufacturing companies in the Middle East. An ISO and HACCP certified company, SFIC
is also a proud winner of the Dubai Quality Appreciation Certificate. It offers a wide
spectrum of products under the brand Nutro, which is a leading biscuit brand in the
Middle East.
Al Sallan Food Industries Co is one of the foremost companies for the production of
cookies, rolls and chocolates. The products are well known under the brand name
of Baker's Pride.
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The challenge of online sales is logistics and fulfillment; processing Internet orders efficiently is crucial
for achieving the savings available with ecommerce. If your Web storefront isn't completely integrated
with your business system software, it may actually add costs by creating more work for your
employees.
Integration is also important in providing the additional functionality required for handling business-tobusiness sales over the Internet.
ECis Distributor Station Web storefront is completely integrated with our Maytech business
system software. Critical transaction data, including pricing, account information and order history are
stored and managed in Maytech, eliminating the need to re-key account information or upload
separate contracts to your Web storefront. Likewise, incoming orders are automatically downloaded
for processing.
Features
With Distributor Station and Maytech, your Web storefront is linked to every area of your operation.
This level of integration makes it easy to provide online accounts with their unique customer pricing,
reflecting their specific discounts or contracts. Additionally, Distributor Station provides your
customers:
Multi-level purchase authorizations
Online access to order history
Multiple order acknowledgement alternatives
Much more!
System Requirements
Hardware
For simplicity and security, Distributor Station is hosted and maintained by ECi in a state-of-the-art
collocation facility. Hardware management and routine site maintenance, including daily backups, are
included as part of the hosting service. The only hardware you will need is the appropriate type of
router or modem for your Internet connection.
Security
Distributor Station Web storefronts are hosted in a secured, restricted-access facility. Data security
features include a dedicated firewall appliance, redundant router infrastructure, and virus protection
for all servers.
Your Distributor Station site will include the VeriSign logo with navigation bar links for verification of
the certificate. For transaction security, Distributor Station pages display only partial account numbers
for credit card purchases.
While Distributor Station is fully integrated with Maytech, only specific transaction information is
transmitted between the two systems. Your Maytech system remains secure; customers cannot
access it through Distributor Station.
Internet Service
Distributor Station requires a dedicated Internet connection at your site and a static IP address for
connection to your Maytech system. You will need to work with an Internet service provider to set up
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these services. You will also need communication hardware (DSL modem, router, etc.) appropriate for
your type of Internet connection.
Distributor Station includes e-mail links to allow customer feedback. To implement this feature, you
must have at least one e-mail account.
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Apart from cheese and curd, Britannias non-biscuit products, which will account for roughly 20-25%
of its business, include ready-to-drink beverages such as flavored milk, ghee, bread, cake and rusk.
A majority of the sales of non-biscuit products come from cheese, curd and ready-to-drink beverages
and these three categories will continue to drive growth, Namboodiri said.
Britannias non-biscuit products are gaining importance for the company partly because margins are
higher than in biscuits, said Bhaveshkumar Jain, analyst at Sushil Financial Services Pvt Ltd.
The non-biscuit business is going to be a major driver of growth for Britannia. I expect the biscuit
business to grow 10-11% over the next years whereas the non-biscuit side will grow at 20-25%. Other
players like Nestle and DANONE have also sounded very positive about dairy products, Jain said.
STAFFING/RECRUITMENT
What makes Britannia:If u think Britannians are extraordinary individuals who are passionate about everything
they do... Create inspiration through everything they do and succeed in everything they
do youre probably right. Britannians are handpicked for a singular purpose to
perpetually ensure market leadership and generate exemplary performance in every
function.
Britannians exhibit the following leadership behaviors.
Integrity
Team orientation
People development
Learning orientation
Customer orientation
Quality orientation
Drive your results
Entrepreneurial spirit
System and process orientation
Communication
If you feel stack up well in terms of all these behaviors dont waste time join us!
RecruitmentNot many companies can boast a 100-year distinguished history, and fewer still can be
linked with stakeholders and markets across continents. This superlative trajectory
notwithstanding, at Britannia it's always been recognized that none of it would have
been possible without the people. Over the years, Britannia has been associated with
many brilliant careers, and evidence of the success of its strategic-yet-friendly people
policies is to be seen in the current crop of management and staff and indeed the
performance of the company itself.
Part of the allure of working at Britannia emanates from our strong belief in nurturing
people so they can get in their full stride. The other aspects that make Britannia a
coveted destination include proffered opportunities for growth, and that 'idea leadership'
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The total tenure of Management Training is 18 months for a Technical Trainee (Engineer/Food Technologist)
and 12 months for all other trainees.
SALES PROMOTION
Economic times = Britannia Industries net up 23% at Rs 53 crore
Sarah Jacob, ET Bureau May 30, 2012, 08.52PM IST
BANGALORE: Bakery products company Britannia Industries reported 22.6% increased net profit at Rs 53.03
crore in the quarter ended March 31 2012 compared to Rs 43.25 crore in the year-ago period.
The board of directors of the company recommended dividend of Rs 8.5 per share of face value Rs 2 on
Monday.
The Hindu business line
Britannia Industries today reported nearly two-fold rise consolidated net profit to Rs
89.58 crore for the first quarter ended June 30, 2013, due to improvement in product mix
and higher price realization.
*Stocks: Top Gainers/Top Losers
The company had posted a consolidated net profit of Rs 46.50 crore for the same period
previous fiscal.
*Search: India Inc A, B, C
Company's consolidated income increased to Rs 1,539.62 crore in the April-June quarter,
from Rs 1,348.15 crore during the same period last year, Britannia Industries said in a
filing to the BSE.
"The expansion in margin is consequent to an improvement in product mix and higher
price realisation coupled with an emphasis on cost management -- the growth we saw in
the second half of last year, continued," Britannia Industries Managing Director Vinita
Bali said.
Britannia Industries shares were trading at Rs 747 on BSE, up 7.59 per cent from its
previous close.
ADVERTISEMENTS
Britannia launches Vita Marie Gold; targets "today's women" with new campaign
Creative for the brand re-launched as 'Health Plus' Marie, is handled by Lowe Lintas.
To gain a higher share of mind and gain consumers in new geographies, Vita Marie Gold, a brand relaunched as the Health Plus Marie is coming out with a new multimedia campaign. Lowe Lintas has
worked on the multimedia campaign that spans across television, point of purchase - both traditional
and modern trade, as well as print.
The creative depicts a busy, young, working woman on a local, railway station grabbing a cup of chai
to have it with her Vita Marie when suddenly the train arrives and she has no choice but to board it.
Through her on board struggle to have the tea and biscuit, the woman depicts the struggle of all
active women who struggle to make the most out of their life and also tea breaks.
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On the thought behind this re-launch campaign, Anu Narasimhan, Category Director - Health and
Wellness, Britannia Industries, said, "The insight that we worked on for the campaign was that:
Todays woman has so many aspirations shes out to fulfill, so many activities she packs her day with,
so much of life shes eager to enjoy, that shes left with very little time to take care of bodys need for
extra nourishment. We chose the working woman' as our protagonist as she best personified the
'busy and time-crunched life' of today's woman, who wants more out of every moment, even her tea
breaks. We propositioned Vita Marie Gold as a 'Fully Loaded Marie for a Fully Loaded Life', her
intimate health accomplice rather than just another Marie."
Narasimhan informed that the communication across other media has been adapted into an
interesting caricature that depicts the enjoyment of the consumers life and why Vita Marie Gold is her
health accomplice. "What we are essentially trying to depict is that the modern day woman doesn't
want to give up any pursuit - and therefore brands have to find meaning in her life. Our brand fits in
as her accomplice to vitality," she added.
The campaign, which began on December 8, 2010 will run its course till January 15, 2011. The brand
will be using Hindi and Regional GECs along with Lifestyle and Movie channels.
Britannia unveils new campaign to push Bourbon
Britannia Industries has launched its latest campaign, which is dedicated to its chocolate
biscuit range, Bourbon. Conceptualized by Britannia's AoR McCann Erickson, the campaign
aims to focus on the sensual emotions that chocolate as a flavor evokes in a person.
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aspirational, cool and also funny. We are confident the consumers will see the film in totality and not
in parts and therefore enjoy the intended humor in the story."
Speaking about the consumer insight that the campaign is based on, Thomas says, "Todays youth
enjoy situations where they effortlessly maneuver themselves out of tricky situations; getting away
with it in broad daylight. We decided to base the campaign on this thought."
The media exposure for the campaign includes TV. The creative team working behind the campaign
includes Prasoon Joshi, Thomas and Ratish Subramanian. The film has been directed by Anurag
Basu and produced by Red Ice Productions.
Britannia awards media duties to Madison Media
Britannia has handed over its media duties to Madison Media after a fiercely fought, twostage, multi-way pitch that saw participation from Madison Media, OMD, Mudra Max, Lodestar,
MPG and the incumbent, Maxus. Maxus held the account for the last five years. The account
size is estimated to be Rs 75 crore. The pitch was led by Punitha Arum gam group CEO,
Madison Media. The account will be handled by Madison Media Infinity-II out of Bangalore.
Britannia has handed over its media duties to Madison Media after a fiercely fought, two-stage, multiway pitch that saw participation from Madison Media, OMD, Mudra Max, Lodestar, MPG and the
incumbent, Maxus. Maxus held the account for the last five years.
The account size is estimated to be Rs 75 crore. The pitch was led by Punitha Arumugam group
CEO, Madison Media. The account will be handled by Madison Media Infinity-II out of Bangalore.
We are delighted to have the countrys largest biscuit major and a marquee name in Indias
corporate world as our client, said Sam Balsara, chairman and MD, Madison World. Britannias
decision once again confirms that we have on the ground what it takes to be the media agency of
choice of large advertisers.
Britannia set to turn 90, launches new thematic campaign
As it prepares to celebrate its 90th anniversary, Britannia has unveiled a new brand campaign
that celebrates the Brittania way of life. The campaign has been conceptualized by McCann
Erickson and involves a set of three commercials of 45 seconds each, each portraying a
montage of situations which integrates Brittania products across categories to showcase how
the brand is a part of consumers' daily lives.
As it prepares to celebrate its 90th anniversary, Britannia has unveiled a new brand campaign that
celebrates the Brittania way of life. The campaign has been conceptualized by McCann Erickson and
involves a set of three commercials of 45 seconds each, each portraying a montage of situations
which integrates Brittania products across categories to showcase how the brand is a part of
consumers' daily lives.
Speaking about the brief provided by Britannia, Prasoon Joshi, executive chairman and regional
executive creative director, Asia Pacific, McCann Erickson said, "The increasing array of competitors
in the core segment of Britannia business today, that is 'Biscuits', are driving 'product sameness' and
competing aggressively on price to make it the single most important purchase factor. There is
increasingly very little differentiation in the category. The company wanted to leverage its mother
brand 'Britannia' much more."
Joshi added, "The campaign is a reflection of Britannia's philosophy and mission to add a little
liveliness to our lives. It focuses on life's moments that become a little more exciting or indulgent or
enjoyable, thanks to the presence of Britannia."
"While on the surface the campaign promises to be a visual delight, it also carries a deeper message
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that re-affirms Britannia's promise to its consumers that Britannia will continue working towards
adding more and more moments of joy in every life they touch," Joshi added.
Each of the commercials are a series of situations with music and a voiceover in the background. At
the start of the first TVC, two boys are bickering over a piece of cake, when one of them feeds the
piece to their dog, just to annoy the other boy. In the next scene set in a college laboratory, a boy lets
a girl know about his feelings for her using Britannia Little Hearts. In the last situation, a woman is
sitting with two young girls, and eats the biscuit just the way the girls eat it by licking off the cream
from the centre first. The commercial ends with the voiceover signing off with the brand's new
baseline, Zindagi mein life. The next two commercials too, have similar situations, each highlighting
the fact that Britannia brings people closer and helps them bond.
Speaking about the need for a thematic campaign specifically at this point in time, Neeraj Chandra,
vice president, sales, marketing and innovation, Britannia, explains "A lot has changed about India in
these years. The mindset of Indians has undergone a metamorphosis and so have their habits. In this
changing context, Britannia has silently played a critical role in the lives of millions of Indians. Be it
indulgence in a mouthwatering 'Treat' for children or providing the energy to be a 'Tiger' or the perfect
way to start a 'Good Day' or making a 'Nutri-Choice' in food Britannia has been India's preferred
choice."
The media mix for the campaign includes TV, print, outdoor and radio.
PRICING STRATIEGIES
FMCG major Britannia Industries Ltd today said it is in the process of reviewing the
pricing structure of its products in view of the sharp increase in input costs.
"Price is a dynamic variable and we are continuously monitoring the situation," Britannia
Industries MD and CEO Vinita Bali said when asked whether the company was planning
to increase product prices.
Bali said the company plans to invest Rs 200 crore across the country in the current
fiscal.
She said the company plans to enter the breakfast segment by offering a mixed pallete
ranging from 'upma' to porridge.
The company was in the process of setting up two factories in Bihar and Orissa.
Price of Britannia
The price strategy of Britannia are:Market-Penetration Pricing for the products like Tiger
Product Quality Leadership for products like Good Day and Treat
Special Event Pricing in festive season.
Price Range
Britannia good day coconut butter biscuit= 180gmRs 35;
Good day=90gmRs 12;
Good day Chaco-nut cookies=90gmRs 15;
Good day= 180gmRs 23
Marie gold=337gmRs 2
Milk bikis milk cream =89 gmRs 15
Milk bikisMilk bikis=128 gm85 gmRs 10Rs 7
Marie gold =171 gmRs 13
Marie gold =69 gmRs 5
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E COMMERCE
ECi Britannia E-commerce
Put Your Business on the Web
Ecommerce is key to leveling the playing field with superstores and other competitors. A flexible,
easy-to-use Web storefront lowers your costs on every order and helps you lock in customers.
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Thats why Britannia E-commerce is an ideal solution. Its a cost-effective Web storefront that is fully
integrated with the Britannia system. Britannia E-commerce offers a quick and easy interface and
powerful search tools for a competitive Web presence. And full integration means customer
information and pricing come directly from your Britannia system, eliminating the additional labor
associated with some Web storefronts.
Why Britannia E-commerce?
Customizable Web storefront
Custom pricing for each user
Custom coupons
Advanced search capabilities
No transaction fees/setup charges
Fully integrated with Britannia no re-keying orders
User-driven lists
Performance reporting and analysis
Simplifies office supply procurement
Machine matching
Punchout integration to customer procurement systems available.
CRM strategies
A growing relationship with customer and customer retention:
Now a days a good relation with the customer is very important for organization. Sale is totally depending on
the relation with the customers. Customers retention is also a major aspect for growing business. It means keep
the old customers and try to make new customer. Britannias customer relationship management is very strong
which is one of the major causes of selling of their product continuously.
Porters five force model analysis
Threat of New Entrants - Medium
Hard for a new entrant due to high product differentiation & a strong distribution n/w
Extremely price sensitive industry & therefore not much flexibility to increase prices
Depends on the agricultural sector for wheat
Low growth rate of 13%
VAT of 12.5% and an excise duty of 8%
Rivalry among existing firms - High
3 main players- Britannia, Parle, and ITC Ltd. (PriyaGold and Bakeman regional)
Britannia & Parle hold almost equal market share, ITC ltd holds a lower market share
Hence, they keep a close watch on the changing strategies of each other
Bargaining power of suppliers - High
Wheat is the main ingredient required for baking biscuits. During inflation they purchase wheat at the
price quoted by the farmers as wheat does not have a close substitute.
Threat of Substitute Products Medium
The substitutes of biscuits are namkeens, chips, potato wafers etc. but biscuits have become a part
of peoples everyday life.
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Biscuits are a low priced commodity, hence a small increase in price would be acceptable in urban
areas but may cause a shift to substitutes in rural areas
Bargaining power of buyers High Consumers have option of shifting brands according to their liking
of price, quality and taste.
Hence not much flexibility to biscuit manufacturers to increase price or compromise of quality. Also,
consumers are going for bulk purchases at cheaper rates from bakery stores.
Company Analysis
Companys sales rises from Rs. 31.1 Million to Rs. 34 Million
Profit Before Tax reduces from Rs. 2.3 Million to Rs. 1.2 Million
Profit available for appropriation reduced from Rs. 2.4 Million to Rs. 2.2 Million
Sources of fund included shareholders fund, loan fund and deferred tax liability reduces from Rs.
8,596 Millions to Rs. 8,258 Millions
Application of fund included fixed assests, investment, liabilities & provisions and miscellaneous
expenditure reduced from Rs. 8,596,456,000 to Rs. 8,258,690,000
Porters Five Forces Model by 0726335
The analysis of Cosmetic Industry has come out with Poters five forces model to analyze the level of
rivalry in this industry. In the Porters Five Forces Model the rivalry which is in the middle is most
powerful of the five competitive forces.
Rivalry among competing firms (High)
There are a large number of competitors in this industry, and all competitors are competing for the
same customers. Thus Carlina have to compete against its direct competitors that sell similar
products. The large number of direct competitors in the industry causes a high degree of rivalry.
Competitors are also selling similar products, which is cosmetic product. Due to having so many
options, customer is able to switch between brands easily. The industry is in its maturity stage
causing the market growth to be static. Thus all companies are striving to maintain its market share in
the industry against their competitors.
Barriers to enter for new competitors (Moderate)
The barriers to enter for new competitors are at a moderate, especially during the maturity stage of
the industrys life cycle. Majority of firms that already existed in the industry have developed
economies of scale, thus providing a cost advantage to them over the new entrants. If new
companies try to enter into the market, it will face problems especially to cover for the expenditures,
as they have not established good economies of scale. The new entrants will be forced to reduce the
price of products in order to compete, thus it is difficult to survive at the beginning stage.
Potential development of substitute products (High)
In the era of globalization environment, there is less time being and cost to spend on making one
things. Moreover there were a lot of foreign and domestic company produce the similar product.
Thus, there were many product and choice that available in the market. Plus, the significant change
in consumer behavior where they can tested the cosmetic product freely and product element as
pack design also become crucial other than quality. Therefore, all of this showed that high potential
development of substitute products in this market.
Bargaining Power of Suppliers (Moderate)
The bargaining power of suppliers is low for Carlina but for the whole industry, bargaining power is
moderate. Carlina does not need many suppliers because all of their production was made in house.
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Thus there is easy to find suppliers in case they have to switch between them to negotiate at the
lowest price possible.
Bargaining power of buyers (High)
The industry provides many substitutes for Carlina products, as there are many available products
from competitors that offer at lowest price and good quality than Carlina. Market research show that a
sharp contrast in consumer behavior between old and young people: senior identity themselves with
concrete fragrance and consistently consume it, youngster demonstrate low product fidelity, and are
vulnerable to the effect of advertising campaigns. They have the right to switch between products
easily. Thus, buyers have a significant bargaining power against KKD.
Threat of New Entrants - Medium
Hard for a new entrant due to high product differentiation & a strong distribution n/w
Extremely price sensitive industry & therefore not much flexibility to increase prices
Depends on the agricultural sector for wheat
Low growth rate of 13%
VAT of 12.5% and an excise duty of 8%
Rivalry among existing firms - High
3 main players- Britannia, Parle, and ITC Ltd. (PriyaGold and Bakeman regional)
Britannia & Parle hold almost equal market share, ITC ltd holds a lower market share
Hence, they keep a close watch on the changing strategies of each other
Bargaining power of suppliers - High
Wheat is the main ingredient required for baking biscuits. During inflation they purchase wheat at
the price quoted by the farmers as wheat does not have a close substitute.
Threat of Substitute Products Medium
the substitutes of biscuits are namkeens, chips, potato wafers etc. but biscuits have become a part of
peoples everyday life.
Biscuits are a low priced commodity, hence a small increase in price would be acceptable in urban areas but
may cause a shift to substitutes in rural areas
bargaining power of buyers - High
Consumers have option of shifting brands according to their liking of price, quality and taste.
Hence not much flexibility to biscuit manufacturers to increase price or compromise of quality. Also, consumers
are going for bulk purchases at cheaper rates from bakery stores.
Pricing strategy
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Cost+, Discount for List, and GP-based Pricing
GP Protection Algorithms
Inventory
Real time wholesale stock check
Inventory tracking
Multi location inventory management
Inventory reports
Refund Policy
Customer satisfaction
Membership/Subscription All annual memberships are "auto-renewing," meaning that we will bill
your credit card each year on the annual anniversary of your subscription, until you cancel. If for any
reason you are unhappy with any element of our subscription service, we will investigate every
complaint and will endeavour to resolve any issues as quickly as possible.
Merchandise In the event that you receive a package that is incorrect or damaged, we will gladly
provide a refund or replacement. Any items should be returned in the same condition as received,
unused and in original packaging. You have 7 days from the date you received the merchandise to
return it to us for a refund. Refunds will be made by cheque within 14 days of receipt of returned
goods. Should you need to return merchandise, please contact the Britannia Association office for a
product return code.
Failed transactions
Please ensure that your payment card details are kept up to date. If we are unable to process
payment from your card, we regret that it will be necessary to suspend your access to the members
only login until you provide us with details of a valid credit card.
MARKETING STRATEGY OF BRITANNIA
The 80-year-old biscuit king is reinventing itself. Britannia now wants to become a foods giant, with
the newly-added tag of health and nutrition. What's more, with a clever formula of prices and
products, it is targeting every segment of the Indian market.
Who does not know Britannia Rules! During period of A day before the World Cup Of Cricket 1999
began in England on May 14, 1999, one of Britannia Industries' senior-most marketing managers was
spotted at Mumbai's Sahara International Airport-escorting a gaggle of excited children, all of them
sporting Britannia caps, Britannia T-shirts, and other assorted Britannia paraphernalia. No, he wasn't
test-positioning yet another brand of biscuits on a group of unsuspecting young 'uns in an airport
lounge. Those kids were actually some of the 100 mega-winners of the Britannia Khao, World Cup Jao
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contest, being flown off on charters to Old Blight to watch the World Cup at Britannia's expense. See
Cricket. Sleep Cricket. Eat Only Britannia (sic!) so we can say that, this session is more powerful to
catch the customer.
The marketing strategies for any company are not about a fixed concept. Rather it is full of new challenges
every day, and the companies must respond to it very positively. The market process is applicable to more than
goods and services. Anything related to market including ideas, events, policies, prices and personalities comes
under market strategy. However it is important to emphasize opportunity in the market through market strategy.
The following strategies are basically adopted by Britannia in order to capture a good market
share.
1. A strong quality of the product and customer satisfaction:
General customers are basically concerned about the quality of product rather than the price of
the product. In our survey we found that basically people are first looking for the quality. If
good quality is there in the product then they are only looking for the price. But if the quality is
not satisfactory they even dont looking about the pricing of the product. In this regard
Britannia always maintained much more importance over there product quality. Thats why they
are among the very successful brand of today.
2. A growing relationship with customer and customer retention:
Now-a- days a good relation with the 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. Britannias customer relationship management is very strong
which is one of the major causes of selling of their product continuously.
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different variation in their product depending over various locations and the economic status of
the people is being very much helpful for the company.
6. Promotional Strategy
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. Sometimes Britannia comers to market with new
offerings and of course with cost benefits to the customers. Giving discounts over bulk purchase
also comes under this strategy.
Thank
you!
Have a
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