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(Pre PhD , 2015-16)

Submitted to

Prof .Manoj Kumar Sharma


Business Economics
UBS, Panjab University
Chandigarh

INDEX

CONTENTS

1.
2.
3.
4.
5.
6.
7.

PAGE NO.

Comapany analysis
Demand analysis
Market analysis
Market conduct
Cost analysis
Ratio analysis
Conclusion

DEMAND ANALSYS
1.1
1.2

Product of Britannia: Biscuits


Determinants of Britannia Biscuits: Demand of the product is influenced by
many factors. It is important for an organisation to understand its products
demand and its determinants for analysing its individual and market demand
following are the determinants of the Britannia biscuits.
1.2.1 Price of biscuits: On an average Rs.5- Rs. 10 (per unit )
1.2.2 Customer Preferences: favourable customer attitude leads to increase
in demand of product and on the other hand unfavourable attitude lead
1.2.3

to decrease in demand of product in the market.


Price of related goods: Price of biscuits of various competitors are
almost the same as Britannia is offering , Britannia is leading not
because of price leadership rather on product differentiation which

1.3

meets needs of all category of customers.


Market conditions: Britannia biscuits are selling their

product in

Monopolistic market where large number of firms are there like Parle, ITC ,
Cremica , Bonn, Glaxo smith klein etc and each satisfying small number of
share of the market with main emphasis to be on Product Differentiation and
1.4

Product variation.
Forecast of Demand :

Demand curve for a commodity is generally estimated from market data on the quantity
purchased of the commodity at various prices over time. By simply joining the different price
quantity observations, demand curve for the quantity cannot be generated. The demand curve
cannot be identified so simply. This is referred to as identification problem.
In order to forecast the demand for the Biscuits, regression analysis is used with sales as
dependent variable and advertisement as independent variable.
After running regression analysis (Refer appendix 1) the below mentioned regression equation
is formed: Y = 3963.4 + 6.62319 X

Where y = Sales
X = Advertisement

Interpretation: - The above mentioned regression equation can be used to forecast demand based on
sales and advertisement. The dependent variable sale is considered and independent variable
considered is advertisement. Depending on the companys policy, the budget for advertisement will
determine sales. Regression analysis gave R Square to be .0994, which states that 99.4% of the
variation in sales is explained by the expenditure on advertisement. The separate sales of product

Ariel were not available, hence the sales figures of company are considered and it is assumed that
Ariels sales will grow at the same rate as companys sales will grow.

1.5

COMPANY ANALYSIS

The story of one of India'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 initial investment of Rs. 295. The company we
all know as Britannia today.
The beginnings might have been humble-the dreams were anything but.
B y 1910, with the advent of electricity, Britannia mechanised its operations, and
in 1921, it became the first company east of the Suez Canal to use imported
gas ovens.
B r i t a n n i a ' s b u s i n e s s w a s f l o u r i s h i n g . B u t , m o r e i m p o r t a n t l y, Britannia was
acquiring a reputation for quality and value. As a result, during t h e t r a g i c Wor l d War
II, the Government reposed its trust in Britannia by contracting it to
s u p p l y l a r g e q u a n t i t i e s o f " s e r v i c e b i s c u i t s " t o t h e a r m e d forces .As time
moved on, the biscuit market continued to grow and Britannia grew
along with it. In 1975, the Britannia Biscuit Company too
k o v e r t h e distribution of biscuits from Parry's who till now distributed Britannia
biscuits in India. In the subsequent public issue of 1978, Indian shareholding crossed
60%, firmly establishing the Indianness of the firm. The following year
, Britannia Biscuit Company was re-christened Britannia Industries Limited(BIL).
Four years later in 1983, it crossed the Rs. 100 crores revenue mark. On the
operations front, the company was making equally dynamic strides. In1992, it celebrated its
Platinum Jubilee. In 1997, the company unveiled its new corporate identity - "Eat Healthy,
Think Better" - and made its first foray into t h e d a i r y p r o d u c t s m a r k e t . I n 1 9 9 9 ,
t h e " B r i t a n n i a K h a o , Wor l d C u p J a o " promotion further fortified the affinity
consumers had with 'Brand Britannia'. Britannia strode into the 21st Century as one of
India's biggest brands and the pre- e m i n e n t f o o d b r a n d o f t h e c o u n t r y. I t w a s
equally recognised for its innovativeapproach to products and marketin
g : t h e L a g a a n M a t c h w a s v o t e d I n d i a ' s m o s t successful promotional activity
of the year 2001 while the delicious Britannia 50-50Maska-Chaska became
India's most successful product launch. In 2002, Britannia's 1 N e w B u s i n e s s
Division formed a joint venture with Fonterra, the world's second
largest Dairy Company, and Britannia New Zealand Foods Pvt. Ltd. was born. In
recognition of its vision and accelerating graph, Forbes Global rated Britannia
'One a m o n g s t t h e Top 2 0 0 S m a l l C o m p a n i e s o f t h e Wor l d ' , a n d T h e
E c o n o m i c Ti m e s pegged Britannia India's 2nd Most Trusted Brand. Today, more than a
4

century after those tentative first steps, Britannia's fairy tale is not only going strong but
blazing new standards, and that miniscule initial investment has grown by leaps and bounds
to crores of rupees in wealth for Britannia's shareholders. 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. Having
succeeded in garnering the trust of almost one-third of India's one billion
populations and a strong management at the helm means Britannia will dream big on its
path of innovation and quality. And millions of consumers will savour the results,
happily ever after. For the year ended 31st March 2008, the Company achieved a sales
growth of 17.5%on an expanded base arising from 27.5% growth in the previous year. Net
Profit of the Company increased 77.5 % to Rs 1,910 Mn compared with Rs 1,076 in 200607.Operating Margin increased by 307 basis points to 7.5%.The Company witnessed all
round growth in key categories with Biscuits recording sales of Rs. 23,299 .
Bread, Cake and Rusk business crossed the Rs. 2,700 mark during 2007-08. This
business has doubled in two years. In an intensely competitive biscuit environment, all
Power Brands of the Company recorded double digit growth, with Tiger and Good
Day growing in excess of 20%.The Companys innovation forays have
successfully addressed new benefit clusters and Nutri Choice Digestive has
claimed its position in the health and vitality space .The Company continues to
maintain its leadership edge in 6 out of 7 key product segments, the only exception
being Glucose .The Company introduced several new and renovated offerings in
Tiger, Good Day, T r e a t a n d M a r i e G o l d . T h e h e a l t h a n d n u t r i t i o n p l a t f o r m
w a s b u t t r e s s e d b y Ti g e r Banana with iron-zor, fortified Milk Bikis,
renovated Marie Gold and Nutri choice Digestive. To tap the more indulgent
consumers, your Company launched Good Day Classic Cookies, while continuing to
roll out individual consumption packs at the highly affordable Rs. 5 price point.
The Bread, Cake and Rusk portfolio was strengthened with the successful
relaunch
of Breads, fortified with vitamins and minerals, positioning them firmly as the
healthy start to your day. This innovation combined with relevant consumer activation in
key markets has seen a 30%+ growth in the Bread, Cake and Rusk business .As a
Corporate, Britannia worked for the benefit of all stakeholders - shareholders,
consumers, dealers , suppliers, bankers and employees. It has established an excellent track
record in terms of its financial performance and dividends distributed to its
shareholders.

MARKET ANALYSIS
Major competitors:
Nestle
Glaxo smith con
Coffee day
Priya gold
Bonn
Cremica
ITC
Parle
Mc vities
Anmol biscuits
Amul

From the above pie diagram we came to know that Britannia with 33 % , maximum market
share in total bakery product market after that Parle follows the list with 31 % share. Then ITC
with 15 % share of market.
Total sales turnover of the company is Rs. 7175 .99 cr. with net profit of Rs.622.41 cr.. In 2015
Share of Britannia in organised sector is approximately 65% and in unorganised sector is 35%
(approx.).
6

Critical success factors of biscuit industry with refrence to britannia


1. Indias lower and middle class segment will continue to hold the key
2. Distribution and advertising and launching of new products
3. Britannia to add new variants in its existing basket
4. Focus on urban markets.
5. Alliances with suppliers, retailers, distributors, other linkages.

Porters 5 forces : Britannia


Threat of New Entrants is Medium
Since there is very high product differentiation and a very powerful distribution network
which makes it very hard for a new entrant to enter the market. The prices cant be increased to
a great extent i.e. there is not much flexibility in prices, so we can say that it is an extremely
price sensitive. It has a great dependency on the agricultural sector for wheat which is a main
component for most of its products
Rivalry among existing firms is High
The major players in this industry are Britannia, Parle, ITC Ltd., PriyaGold, Bakeman, Bonn
etc. The companies Britannia &Parle have an almost equal market share as compared to these
ITC ltd holds a lower market share. Since there is a neck to neck competition the companies
keep a close notice of the changing strategies of each other .
Bargaining power of suppliersisHigh
The main ingredient required for the manufacturing of biscuits is Wheat. When there is
inflation they have to purchase wheat at the price which the farmers quote since wheat does not
have a close substitute and leaves the companies with no other option.
Threat of Substitute Products is Medium
The substitutes which are consumed instead of biscuits are namkeens, chips, potato wafers etc.
Even though the biscuits have such substitutes they have become a staple part of peoples
everyday life. The biscuits are a low priced commodity, but even if there is a small increase in
the price, it would still be acceptable by people in the urban areas but in case of rural areas it
may cause people to shift to substitutes.
Bargaining power of buyers is High

The consumers have an option of switching from one brand to the other with due accordance to
their liking of price, quality and taste. This is the reason why there is not much flexibility given
to the biscuit manufacturers to increase the prices of their products or compromise on the
quality of their product. The consumers are also going for bulk purchases at cheaper rates from
bakery stores
Key executives:
Chairman- Mr. Nusli Neville Wadia
Managing Director Ms. Vinita Bali Directors
Mr. A.K.Hirjee,
Dr.AjaiPuri, Mr.Avijit Deb
Mr.Jeh N Wadia,
Mr. KekiDadiseth,
Mr. Nasser Munjee,
Mr. Ness NusliWadia,
Mr. Nimesh N Kampani,
Mr.PratapKhanna,
Mr.S.S.Kellkar,
Dr. Vijay L. Kelkar
VP & Chief Operating Officer: Neeraj Chand

MARKET CONDUCT
PRODUCTS:
BISCUITS:
GOODDAY
CRACKERS
NUTRICHOICE
MARIEGOLD
TIGER
MILK BIKS
JIM JAM TREAT
BOURBON
LITTLE HEARTS
NICE TIME
PURE MAGIC
CAKES:
BAR CAKES
CHUNK CAKES
MUFFINS
NUT AND RAISEN ROMANCE
DAIRY
CHEESE
FRESH DAIRY
RUSK
PREMIUM RUSK
MASKA RUSK
BREADS
WHITE SANDWICH
WHOLE WHEAT
BREAD ASSORTMENT

PRICE:
Pricing is one of the most important elements of the marketing mix, as it is the
only mix, which generates a turnover for the organisation. The remaining 3ps are the
variable cost for the organisation. It costs to produce and design a product; it costs to
9

distribute a product and costs to promote it. Price must support these elements of the mix.
Pricing a product too high or too low could mean a loss of sales for the organisation. Pricing
should take into account the factors like fixed and variable costs, competition, company
objectives, proposed positioning strategies, target group and willingness to pay.
GOODDAY CHOCO CHIPS 72 x 75 Gm. (Rs15.)
GOODDAY CASHEW 80 x 75 gm. (Rs12.)
GOODDAY CASHEW FAMILY 48 x 250 Gm. (Rs20.)
GOOD DAY BUTTER 80 x 75 gm. (Rs10.)
GOODDAY BUTTER FAMILY 48 x 250 Gm. (Rs18.)
GOODDAY PISTA 80 x 75 gm. (Rs12)
GOODDAY PISTA FAMILY 48 x 250 Gm. (Rs 12)
The pricing strategies are based much on what objectives the company has set
itself to achieve and Britannia has adopted a number of pricing strategies:

Competition pricing: They have set a price which is competitive when


compared with competitors .
Product Line Pricing: Priced different products within the same product range at
different price points. The better the feature and the benefit given the greater the
consumer will pay. This form of price discrimination assists the company in
maximising turnover and profits.
Bundle Pricing: The organisation bundles a group of products at a reduced price
when providing family packs. Value Pricing: They have also used value based
pricing. Britannia has worked a lot on fixing the price of its biscuits. It has
packaged its products in various sizes and at various prices. Its biscuits ranges
from Rs 10 to Rs 20.

PLACE
Though figures vary widely from product to product, roughly a fifth of the production
cost of an item goes on getting it to the customer. The term 'place' deals
with various methods of transporting and storing goods and then making
them available to the customer . Getting the right product to the right place at the
right time involves the distribution system. Distribution is the process of
moving goods and services to the places where they are wanted.

10

Channel Levels:
The channel of distribution used by Britannia is:

Intensive Distribution: As biscuits need to reach the consumer at their nearest


locations this type of distribution channel is used. This type of distribution
helps when for products that are categorized by low involvement of the
customer and where customer looks for location convenience.

PROMOTION:
Promotion includes all of the techniques that a company uses to communicate with other
individuals and organisations. An important avenue for communication is advertising.
Advertising is referred to as 'above the line' promotion. Other types of promotion such as
special offers and discounts are referred to as being 'below the line'. Advertising
communicates the desirability, emotional benefits and exclusive features of the product.
Advertising:
Britannia works in close partnership to promote its biscuits with retailers. Promotion costs are
shared with retailers. The more retailers sell - the more Britannia is able to help them.
Britannia launches products that offer the company good returns, supporting these through
brand building and leveraging on its nationwide supply chain. Brand building is an integral
part of Britannias marketing philosophy with continued promotions for its various brands
creating loyal customers in the process. Good Day, "Richness is only one functional facet of
Good Day. But there is also a large emotional facet that of spreading happiness. This
became the plank on which Good Day began to be advertised. Also with traditional
notions of health changing, rich foods are not necessarily looked at as being unhealthy.
"Good Day is full of nuts and is rich but it is also good for health. So, they created the
Swasth kao, tan man jagao (Eat healthy, energise bodyand mind) campaign."
Sales promotion:
Eat Britannia, Go for World Cup" was the theme adopted in 1999 .People bought the biscuit
packs and searched for the lucky scratch for flying to England to see world Cup
Cricket match. The sales bounced 37% high on account of this strategy. The
scheme camealive again during the world Cup Match in 2002-2003 in South
Africa." Lagaan - th e super hit movie " brought fame to Britannia Biscuits also as 40000
buyers of Britannia Biscuit packs were invited to see and a small lucky group to
play the game with the movie Stars of Lagan. What a novel way to promote a
product - a perception in correct proportion indeed !!Now, recently promotional strategy
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are "Jodi Banao" Offer & winning ideas of the Mon matano Britannia pran bhorano
sharodiya contest like create a special flower arrangement for dashmi. Get all
the women in your street together and make a huge ,elaborate face of durga with
flowers.
Publicity:
Britannia brand is advertised through hoardings on cricket grounds, on highways, through
image building exercises like donations etc.

12

COST ANALYSIS

13

RATIO ANALYSIS
It can be defined as the method of defining relationships among various financial statement
items. It helps to identify trends over time for one company or to compare two or more
companies at one point in time. The historical trends of these ratios can be used to infer a
companys financial condition and its attractiveness for potential investors.
In accordance with the nature of our industry and operations of Britannia Industries ltd, we
analysed various elements of the financial statements and their relationship with a
comparative view of data of last 5 years.
LIQUIDITY RATIOS
Measure the ability of a company to repay its short-term debts and meet unexpected cash
needs.
i)

Current Ratio
The Ratio deals with assessing the liquidity of the firm. It finds out the ability of
the company to pay its short term loans.
The bench mark for Current ratio is 2:1 ,i.e, Currents assets should be twice that
of current liabilities.
It is computed by division of current assets by current liabilities. It is denoted by
:Current ratio = Current assets / Current liabilities
Year
2011
Current ratio 1.04

2012
0.7

2013
0.79

2014
0.84

2015
1

Short term liquidity position of the company is not so good as it is not meeting the ideal
ratio of 2:1 in none of the above years due to lesser of current assets with the company
to the current liabilities.

ii)

Liquid Ratio
It may be defined as a relationship between quick/ liquid assets and current
liabilities. This ratio measures the capacity of the firm to pay its current liabilities
immediately
. The bench mark Quick ratio is 1:1.
It is computed by Dividing Liquid assets by current liabilities.
It is denoted as follows
Liquid assets = Current assets Stock prepaid expenses
Liquid Ratio = CA-Stock-Prepaid expenses = Liquid assets/ Current
liabilities
14

Year
Liquid ratio

2011
0.52

2012
0.36

2013
0.58

2014
0.47

2015
0.7

Liquidity refers to ability of concern to meet out its current obligations as


and when these become due but here it is only meeting approx.. 50 %
obligations during the above mentioned years except 2015 that is 70 %that
means its liquid assets has increased over the current liabilities.
PROFITABILITY RATIOS
Ratios that focus on how well a firm is performing are termed as such.
Profit margins measure performance with relation to sales. These are computed in the form of
percentage.
They are of two orientations :Related to sales
i) Gross profit ratio
The gross profit margin ratio measures how efficiently a company uses its resources.
There is no theoretical benchmark for this ratio as the higher it is, the better.
It is expressed as a percentage of gross profit from net sales. Where
It is denoted as follows:Gross profit Ratio = GP / NET SALES * 100
Year
GP ratio

2011
4.42

2012
4.66

2013
5.59

2014
8.44

2015
9.11

Higher the gross profit ratio better the results because sales are meeting out
the direct expenses of the company. Here it is increasing with the passage of
time that is in 2011 it was 4.42 and in year 2015 it has increased to 9.11 due to
increase in sales.
ii)

Year
NP ratio

Net profit ratio


NP ratio is used to measure the overall profitability of the firm and hence its
computation is relevant to proprietors.
There is no theoretical benchmark for this ratio as the higher it is, the better.
It defines the percentage of net profit(after tax) over sales of a company
It is denoted as follows:Net Profit Ratio = Net Profit / Net Sales*100

2011
3.44

2012
3.75

2013
4.16

15

2014
5.86

2015
8.67

Net proft ratio has doubled over the years that is in year 2011 it was 3.44 and
in year 2015 its 8.67 that means company is growing at a good rate . its sales
has improved over the period due to its new range of products.
iii)

Operating Ratio
It may be defined as a ratio that shows the efficiency of a company's
management.
There is no theoretical benchmark for this ratio. The lower it is, the better.
It expresses company's operating expenses as a percentage of revenue.
Operating Ratio = Operating cost / Net sales *100
Operating costs = COGS + Operating expenses Operating expenses =
Administration and office expenses + Selling and distribution expenses
Year
Operating
ratio

2011
5.48

2012
5.61

2013
6.61

2014
9.45

2015
10.75

This ratio is considered as the yardstick of operating efficiency but it should


be used cautiously because it may be affected by number of uncontrolled
factors . in 2015 operating ratio is 10.75 which indicates that only 10.75% of
the total sales has been consumed by operating cost and remaining is left to
cover the interest charges , dividend and income tax.
RATIOS RELATED ON INVESTMENT
i)
Return on assets ratio
An indicator of how profitable a company is relative to its total assets.
There is no theoretical benchmark to this ratio; it merely helps in
comparison in companies competing in the same industry.
It indicates as to how profitable a companys assets are in generating
revenue.
Return On assets = Net profit after tax / Total assets * 100

Year
ROA

ii)

2011
37.78

2012
43.54

2013
53.24

2014
71.17

2015
103.13

Return on Equity
Return on equity measures a company's profitability in accordance with
the profit a company generates with the money shareholders have invested.

16

There is no benchmark for ROE, the higher it is the better because it


implies profit after tax and preference dividend will be more than the
equity shareholders funds/ equity share capital respectively.
It is the amount of net income returned as a percentage of shareholders
equity, denoted as follows:Return On equity = Profit after tax &preference dividend / Equity share capital* 100

Year
Return
equity

2011
on 32.19

2012
35.9

2013
36.74

2014
45.67

2015
38.87

TURNOVER RATIOS
These ratios quantify the efficiency of business by computing how fast the assets
are churned in a given time period. It is always calculate in times.
i)

Inventory turnover ratio


It establishes how many times the inventory is churned and converted
into sales during the accounting period
There is no theoretical benchmark as Higher would imply scarcity of
stock and lesser number would imply excess inventory with the company.
It is expressed as cost of goods sold over Average inventory, denoted as
follows:- Where: Inventory conversion period is the time taken to convert the inventory
into sales. It is expressed in number of days . Denoted as follows:
Inventory Turnover Ratio = Cost of goods sold / Average inventory * 100
Where COGS = Opening stock +Purchases Closing stock
Average inventoy = Opening + closing/ 2
Year
ITR

2011
13.68

2012
13.17

2013
16.94

2014
17.15

LEVERAGE RATIOS
These ratios describe the amount of equity in comparison to debt or the amount of
earnings in comparison to debt. They also help in assessing the risk from the use
of debt capital. Structural ratios
i)
Debt equity Ratio
It indicates the relative proportion of shareholders' equity and debt used
to finance a company's assets.
The benchmark for this ratio is 2:1. It is usually lower in the labour
intensive businesses and higher in case of capital intensive businesses.
17

2015
21.24

It is the relationship of
Debt over equity shareholders funds in a company
Year
2011
Debt equity 0.95
ratio

2012
0.05

2013
0.31

2014
0.01

2015
-

Debt equity ratio


Profit and loss ratios
i)

Expense to cost ratio:

This ratio describes us the composition of expenses to net sales. How much
expenses we are incurring of the total sales.it helps us in assessing the cost to
net sales.

Year
2011
Expense to 1.22
cost ratio

2012
1.42

2013
1.71

2014
1.98

2015
1.77

ii.) Composition of raw material consumed:


This ratio describes us raw material consumed to total raw material purchased.
Year
Raw
material
consumed

2011
7.01

2012
0.03

2013
0.21

18

2014
0.25

2015
0.2

SWOT ANALYSIS
Strengths of Britannia
1.

2.

3.

4.

5.

6.

Brand portfolio: Britannia is the only company in India that has offerings in bakery
products across the segment for all income groups due to which its possible for them to
acquire large share of wallet of consumers. Britannia holds nearly 30% market share in
the Indias biscuit category.
High Brand Recall: Because of its presence across range of bakery products like
biscuits, rusk, cakes & dairy products like milk, butter & cheese etc., their shelf visibility
is high. Also their focused marketing & advertising campaigns resulted into positive word
of mouth & high TOMA (top of mind awareness).
Serving Indian Markets from last 120 years: 123 years ago, in a small house in
central Calcutta (now Kolkata) an intrepid baker made a batch of delicious, golden brown
biscuits. These were meant for officers of the British Raj and their families, people used
to the high standards of English tea-time snacking. Over the last century and a quarter,
Britannia has been serving the Indian consumer with a range of fresh, nutritious and
flavor-rich products. Today, Britannia is a leading food company in India with over Rs.
6000 crores in revenues, delivering products in over 5 categories through 3.5 million
retail outlets to more than half the Indian population.
In depth product portfolio: It has different offering for different income groups with
large assortments across the product categories like in Biscuits they have tiger ,milk
bikis , Good day, Bourbon ,little hearts, crackers , nutria-choice.
Market Penetration and distribution: Being present in the market with such large
SKUs and making it available through its robust distribution system, Britannia has
penetrated to every nook & corner of the country.
Market Leader in bakery: Britannia Industries Limited (BIL) is a major player in
the Indian Foods market with leadership position in Bakery category and has a market
share of ~ 30% in the industry. Britannia offers both delightfully indulgent and healthy
choices in biscuits, bread, cake, rusk and a range of dairy products that include cheese,
curd and specially formulated functional beverages with a dairy base.
Weaknesses of Britannia

1.

Over dependency on the biscuit business: Britannias 75% revenue comes from
biscuit business. Although they are market leader in the same but over dependency on the
same may affect their long term existence in the business.
2.
Various brands got commoditized over time: Brands like Bourbon & glucose
biscuits of Britannia got commoditized over time such as in case of bourbon, Parle also
introduced Parle bourbon biscuits. Brand name when used like this by other companies,
creates confusion in the mind of the consumers resulting in loss of sale.

19

3.

No overseas presence: Apart from India Britannia have presence in Dubai & Oman
that too through subsidiaries. But overall export of the products is very less than its
actual potential.
4.
Struggling dairy business: Dairy business contributes only 5% of the companys
overall revenues.

Opportunities for Britannia


1.

Emerging Dairy Industry: With organoleptic (flavor, taste & color) features shaping
the dairy industry, improving dairy products can help the company to improve their
market share & reposition itself in dairy market.
2.
Changing lifestyle & demand for healthier food products: Improvement in literacy
rate, health awareness, changing lifestyle,& increase in disposable income are shaping the
demand for healthy food products.
3.
Overseas Market: Expanding its business to other overseas market can help the
company to emerge as a global player in the food products.

Threats for Britannia


1.

Competition in the market: With increasing number of players (local players


Anmol, Priya & national- ITC, Parle), its becoming very hard for the company to
differentiate themselves from others. There is also threat from counterfeit products
destroying its brand image in the market.
2.
Price of raw material: Increasing price of commodities will result in further increase
in the price of the end product. Further increase in price will result in decrease in
profitability or reduced consumption.
3.
Buyers power: With highly diversified consumer goods market where there are lots
of brands claiming different sorts of benefits, its very difficult for consumers to stick to a
particular brand & hence results into brand switching where consumer get power to select
a brand based on several factors like availability, reference group recommendation,
preference & price.

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CONCLUSION
Britannia is one of the leading brands of the country and it has maintained this position for a
very long period of time. To maintain such efficiency, a company needs strict norms and the
focus to achieve growth despite the various challenges it faces. Britannia faced various
challenges in its rise to the top of the market and to position itself as the leader in the market.
The challenges comprised of rising commodity inflation, cost challenges and wastages in the
supply chain. The company now has a strategy and it focuses on the 3 thrust areas so as to
drive growth and they are revenue management, cost management and innovation. Britannia
has also maintained adequate stock of the seasonal products and has provided them at
adequate intervals so that there is adequate supply.
The following are some objectives of the company Britannia stands committed to the belief that every child has the right to grow & develop.
Focus of improving technology to counter hunger & malnutrition in India.
Improving the accessibility of products even to people living in remote villages & slums.
Britannia has initiated a public- private partnership named as GAIN & Naandi foundation
to develop fortified foods.
The companys biscuit brands outpaced the market growth during the period 2010-2012
which shows the robustness of the brand and its products. The company has maintained a
lead over its competitors which include Parle products private ltd.
ITC ltd.
Surya Food & Agro ltd.
Cadbury India ltd.
Bonn Nutrients Private ltd.
Mrs. Bectors Food Specialties ltd.

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