Beruflich Dokumente
Kultur Dokumente
Jalgaon(425002)
CERTIFICATE
Guide
Mr Makrand Watt
Acknowledgement
Comparative study of sales analysis for bakery product of BIL, ITC &
Parle is the method to check out the market share, market status &
market value of product of respective organization. Here study of
Britannia India Ltd, ITC & Parle is taken into consideration for
performing Comparative analysis. BIL is widely known brand in bakery
products all over india considered for analysis with parle & ITC major
competitor of BIL. It was learning experienced for me to analyse such a
fine operating unit of Britannia India Ltd working together with Surbhi
Agency Aurangabad.
Learning and working with innovation is important but development is
worthwhile for growth of industry or organization this can be brought
with analysis of Market. It ensures that it cannot be perfect without
practical knowledge, hence practical knowledge is important for
management student. It included the detail study of operations carried by
BIL ltd incorporating me in the market analysis.
Complete market study & Analysis for bakery products is described in
detail further.
Index
CHAPTER I - Introduction
CHAPTER VI - Conclusion
CHAPTER I
Introduction
Britannia Industries Limited is an Indian company based in Kolkata that is
famous for its Britannia and Tiger brands of biscuit, which are highly recognised
throughout the country. Britannia is one of India’s leading biscuit firms, with an
estimated 38% market share.
The Company's principal activity is the manufacture and sale of biscuits, bread, rusk,
cakes and Dairy products.
HISTORY
The word 'Biscuit' is derived from the Latin words 'Bis' (meaning 'twice') and
'Coctus' (meaning cooked or baked) . The word 'Biscotti' is also the generic term
for cookies in Italian. Back then, biscuits were unleavened, hard and thin wafers
which, because of their low water content, were ideal food to store.
Therefore biscuits became the ideal travelling food since they stayed fresh for long
periods. The seafaring age, thus, witnessed the boom of biscuits when these were
sealed in airtight containers to last for months at a time. Making good biscuits is
quite an art, and history bears testimony to that. During the 17th and 18th Centuries
in Europe, baking was a carefully controlled profession, managed through a series
of 'guilds' or professional associations. To become a baker, one had to complete
years of apprenticeship - working through the ranks of apprentice, journeyman,
and finally master baker.
Not only this, the amount and quality of biscuits baked were also carefully
monitored. As technology improved during the Industrial Revolution in the 19th
century, the price of sugar and flour dropped. Chemical leavening agents, such as
baking soda, became available and a profusion of cookie recipes occurred. This led
to the development of manufactured cookies.
India Biscuits Industry came into limelight and started gaining a sound status in the
bakery industry in the later part of 20th century when the urbanized society called
for ready made food products at a tenable cost. Biscuits were assumed as sick-
man's diet in earlier days. Now, it has become one of the most loved fast food
product for every age group. Biscuits are easy to carry, tasty to eat, cholesterol free
and reasonable at
cost. The States that have a larger intake of biscuits are Maharashtra, West Bengal,
Andhra Pradesh, Karnataka, and Uttar Pradesh. Maharashtra and West Bengal, the
most industrially developed states, hold the maximum amount of consumption of
biscuits The Federation of Biscuit Manufacturers of India (FBMI) has confirmed a
bright future of India Biscuits Industry. According to FBMI, a steady growth of 15
percent per annum in the next 10 years will be achieved by the biscuit industry of
India.
Besides, the export of biscuits will also surpass the target and hit the global market
successfully. Interestingly, as time has passed and despite more varieties becoming
available, the essential ingredients of biscuits haven't changed - like 'soft' wheat
flour (which contains less protein than the flour used to bake bread) sugar, and fats,
such as butter and oil. Today, though they are known by different names the world
over, people agree on one thing - nothing beats the biscuit!
Industry Overview
The Indian biscuits' market is estimated to be 1.1 million tonnes per annum
and valued at over Rs 50 billion. India is known to be the second largest
manufacturer of biscuits, the first being USA. It is classified under two
sectors: organized and unorganized. The present biscuits-bakery sector in
India looks like a battlefront. The battle being led by stalwarts like Britannia
and Parle with close competition from other companies like ITC, Nutrine,
HLL Kissan, Kwality and even international brands like Kellogs, Nestle, Sara
Lee and United Biscuits.The biscuit segment has developed with large
markets of mass consumption covering over 90% of the overall potential
market. The country comprises of huge unorganized sector. Biscuits market
on an average grew at 8% per annum in the last five years. The rural
penetration of the branded biscuits segment is also significant. Towns with
populations of less than a lakh contribute significantly to the industry's
turnover, with some estimates placing it at 40%. However, rural markets
largely consume lower-priced varieties, and it is here that branded biscuits
meet with stiff competition from the unorganized sector. The unorganized
sector in the biscuits segment does exert pressure on the pricing policies of
the organized players. But only up to a point since the penetration of brands in
this business even in the rural areas is fairly significant. Therefore, the value
for only the branded business segment is more indicative of the industry's
competitive pressures.
Three domestic players, Britannia, Parle and ITC, have thus far dominated
the market—with an average annual growth of 10-12%. According to the
Federation of Biscuit Manufacturers of India (FBMI),
Company Overview
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. By
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. Britannia's business was flourishing. But, more importantly, Britannia
was acquiring a reputation for quality and value. As a result, during the tragic
World War II, the Government reposed its trust in Britannia by contracting it to
supply large quantities of "service biscuits" to the armed forces.
As time moved on, the biscuit market continued to grow… and Britannia grew
along with it. In 1975, the Britannia Biscuit Company took over the 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 dynamic strides. In 1992, it
celebrated its Platinum Jubilee. In 1997, the company unveiled its new corporate
identity - "Eat Healthy, Think Better" - and made its first foray into the dairy
products market. In 1999, the "Britannia Khao, World Cup Jao" 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-eminent food brand of the country. It was equally recognised for its
innovative approach to products and marketing: 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.
In 2002, Britannia's New Business 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 amongst the Top 200 Small Companies of the
World', and The Economic Times pegged Britannia India's 2nd Most Trusted
Brand.
Today, more than a 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 population and a strong management at the
helm means Britannia will continue to dream big on its path of innovation and
quality. And millions of consumers will savour the results, happily ever after.
Profile
Company Secretary
Bankers
V Madan
The Company's plants are located in Mumbai, Kolkata, Delhi, Chennai and
Uttarakhand.
Contact Britannia
Registered Office
5/1/A Hunger ford Street,
Kolkata - 700 017
West Bengal
Ph: 033 - 2287 2439 / 2287 2057 Fax: 033 - 2287
2501
Wadia Group acquired stake holdings from Group Danone and becomes the
single largest shareholder in BIL.
2010
Britannia NutriChoice launches a New Year pack - the Health Starter
2
0 Kit. Created for everyone who makes New Year resolutions and doesnt
1 follow through. The Health Starter Kit contains 1 pack each of
0 NutriChoice Hi-Fiber Digestive, NutriChoice 5 Grain, NutriChoice Nature
Spice Cracker bundled together with a Fit Sip Sipper and a fitness chart.
All this only for Rs 100.
The total environment of business, for our purposes, include six factors, viz.,
political – legal, economic, socio – cultural, technological, global and natural. From
the above six environments we have chosen three environments viz., GLOBAL,
POLITICAL and ECONOMIC ENVIRONMENTS.
Raymond Vernon had introduced a product-cycle theory in late 1960s, but this
theory is still relevant till today. This theory explains that how companies go
global. Initially, small scale companies produce attractive products and sell them in
their home markets. Sooner or later, foreigners come to know about these products.
As the popularity of these products increases they start exporting them abroad. As
the foreign demand grows, the economies of foreign production changes.
Eventually, the company starts setting up their own plants globally. In this manner
various companies go global.
Japanese organization
5) Collective responsibility
They have already adopted the technique of 5’s which most companies adopt
viz., Seiri, Seiton, Seiso, Seiketsu, Shitsuke.
Over the years, BIL has grown to become a multi-million US Dollar company.
Many of the BIL products – biscuits are market leaders in their category.
Today, BIL enjoys approx 35% share of the total biscuit market and a 15% share of
the total confectionary market, in India. The BIL Biscuit brands, enjoy a strong
imagery and appeal amongst consumers.
Be it a big city or a remote village of India, the BIL name symbolizes quality,
health and great taste! And yet, we know that this reputation has been built, by
constantly innovating and catering to new tastes.
In this way, by concentrating on consumer tastes and preferences and emphasizing
Research & Development, the BIL brand grows from strength to strength.
Further, since the company has hived-off its dairy division, overall
growth rates would clearly be lower than what investors have been used to
for a while. As far as profitability goes, much depends on the company’s
ability to further reduce costs, unless there is a further reduction in excise
rates. Given the increase in competition, taking price hikes may still be some
time away. In such a scenario, Britannia’s long-term growth rate would turn
out to be much lower than earlier estimates. It’s no wonder then that the
stock has underperformed the market and peers in the FMCG sector by a
huge margin during the current rally. The stock still gets a discounting of
around 14 times FY04 earnings, which, considering that growth rates will
drop, gives the feeling that the stock’s underperformance will continue.
ITC Ltd has posted a 21.8% rise in net profits to Rs 323.51 crore for
the October-December 2002 quarter (Q3) compared to the corresponding
period of the previous fiscal. Net sales during the quarter was reported at Rs
1,647.60 crore, up 12.2% over the corresponding of the previous period.
In the nine months ended December 2002, ITC’s net profits were up
16% to Rs 1,047.93 crore.
In detail -
MARKETING MIX
MARKETING STRATEGY
Marketing is not Euclidean geometry a fixed system of concept. Rather
marketing is one of the dynamic fields with in the management arena. The
market faces continually a new challenge everyday and companies must
respond to it positively. Therefore it is not surprising that new market idea keep
surfacing to meet new market place challenges.
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.
Following strategies adopted by the organization.
A strong quality of the product and customer satisfaction:
Customers always believe in good quality product. in my survey I found that in
percentage term more people is quality conscious and not price conscious.
Customer satisfaction is very important part of the organization that at any cost
they have to fulfill.
A growing relationship with customer and customer retention:
Nowadays a good relation with 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.
Focus on competitors activity:
Every organization should must be careful about it's competitors step, because
they can disturb the growing sales process of the organization.
Companies are increasing by pursuing market beyond their borders. When they
enter other countries they must follow the tradition of that country and also they
make plan for local market that which type of product has more demand and how
can it run in the market.
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.
So on the basis of marketing strategy a organization runs in the market. It is
several types of which makes helpful to increase sales and turnover of the
organization.
COMPETITORS
Generally all organizations have competitors in the market. A particular
organization always comprises with other same business and according to
market share we clarify the brand of product is giving more challenge to my
product.
I found many products which can be compared with Britannia Biscuit. As a
conclusion I found that particularly in my provided area Britannia is really doing
well and its performance is on surprising level. During the field work and after
intensive study it was found that main competitor of Parle & Priyagold biscuits is
BRITANNIA as the market leader.
When we compared with other businesses then we follow the quality, price,
distribution system, promotional strategy etc. of the competitors Britannia in this
area is doing well.
So this is the comparison with other biscuits brands. According to our findings we
found that BRITANNIA is the market leader followed by BRITANNIA biscuits.
These two biscuits companies the lion's share in the 2,200 crore biscuits industry.
CHAPTER V
Data Analysis
PURCHASE DECISION
A consumer who decides to execute purchase intention will be making up to five
purchase decisions.
POST PURCHASE BEHAVIOR
After purchasing the product and services the consumer will experience some
level of satisfaction or dissatisfaction with the product and services that will
influence subsequent behavior. If consumer is satisfied he may show the
probability of buying the product the next time, satisfied customer will say good
thing about the product, proving the statement that "satisfied customer is the best
advertisement.” A dissatisfied customer may take some action against it. They
may try to reduce the dissonance by abandoning returning the product.
Understanding consumer needs and buying process is the foundation of any
company. By understanding how buyers go through problem recognition,
information search evaluation of alternatives, the purchase decision and post
purchase behavior marketers can pick up many clues as to how to meet buyers
need.
MARKET POTENTIAL
Market potential of the BRITANNIA is much positive in competitive era and will
sure cover the maximum market share of biscuit product. Potentiality of any
product depends upon the futuristic performance of the product. it depends that
how much retailers have potentiality to be permanent seller of BRITANNIA.
For great potentiality it is necessary to improve those factors which are going to
effect retailers. In my study I found some factors which can help to cover great
potentiality.
These factors are following:
• Scheme delivery should in perfect determining time.
• Some places distributors not able to cover his particular area. That should be
improved.
• Scheme facility should be regular as much as possible.
• Small pack also should be in the market.
• Always collect the views of retailers. It gives psychological effect on the
retailers about care ness by manufacturing company.
These factors are very important for the organization. If company is able to
improve these all factors then definitely its market share will more increase.
Retailers will take more interest to sell Britannia biscuit and customer will also
enjoy for it.
So potentiality is very high to Britannia biscuit in positive direction.
Here is data collected from retailers of Aurangabad –
Town Name-Aurangabad
2) Aw Name -Raju
Town Name-Aurangabad
Route Name-Chavni
Rs Sales
Sr No Dealer Name-Surbhi Agen. Bil Parle ITC
1 Prakash Provision 1115.4 2000 0
2 Azim Kirana 2873.74 6000 0
3 Ashish Cold dirnk 3840.11 6000 1500
4 Prem Privision 407.1 3000 1000
5 Sachin Medical 367.05 0 0
6 Royal Tobaco 4822.17 6000 1500
7 Agrawal Provision 5602 7000 1000
8 Deluxe Bekry 1155.18 0 0
9 Rafat Kirana 3204.76 4000 1800
10 Mohmad Kirana 4886.4 8000 3000
11 Apnna Kirana 2320.04 1000 0
12 Aadi Kirana 1507.75 2000 500
13 Amir Kirana 1255.5 2000 600
14 Rubi Biscit 1532.2 2000 600
15 Famous Kirana 1048.41 3000 900
16 Ali Kirana 1611.05 2000 0
17 Mathura Gen. 0 1000 300
18 New Naj Kirana 1415.36 6000 1200
19 Aadip Tobaco 28130.33 50000 20000
20 Supper Kirana& Gen. 35000 12000
21 Naj Kirana 3030.36 5000 1500
TOTAL sales in Rs 70124.91 151000 47400
3) Aw Name -Ashish
Town Name-Aurangabad
4) Aw Name -Ashish
Town Name-Aurngabad
Route Name-Jbli Park
Rs Sales
Sr No Dealer Name-Surbhi Agency Bil Parle ITC
1 Akbar Kirana 5508 4000 1000
2 New Esha Genral 2804 4000 2000
3 Nobal Comunication 1824 4000 1000
4 Anjum kirana 1038 8000 200
5 Monus Restaurant 1040 8000 0
6 Insha Genral 802 2500 1000
7 Raja Provision 2343 500 400
8 Aaditya Provision 248 1000 500
9 Anand provision 2002 1500 500
10 Sri.Smartha Genral 1080 0 0
11 Krishna Medical 2008 4000 1200
12 Priya Provision 603 1000 0
13 Tulisi Genral 332 300 0
14 Mayur Medical 2088 500 0
15 Parshavnath Medical 814 1800 0
16 Vaibhav Provision 508 1500 200
17 Sandip Brade 2005 500 0
18 Suvidha Genral 1607 2000 500
19 Shree gurukrupa kirana 11046 18000 2000
20 Sagar Provision 1436.76 1500 0
21 Pratik Provision 2276.35 16000 6000
22 Shri.Data Genral 2479.21 1500 400
23 Mavli Provision 1313.47 2800 800
24 ashwini Provision 223 600 0
25 jaiswal Genral 4271.51 10000 1500
26 Good Luck Kirana 1033.72 1500 700
27 Awais Kirana 930.86 2600 0
28 hari om prov. 706 1500 250
29 hiran Kirana 1484 3000 0
30 Rauf Kirana 1025 1000 300
31 Kasim Kirana 3067.35 10000 4000
32 Mobin Kirana 422 1000 400
33 ziya Kirana 8601.64 20000 6000
34 varad prov. 3230 5000 1000
Total 72200.87 141100 31850
5) Aw Name -Ganesh
Town Name-Auragabad
7) Aw Name -Ashish
Town Name-Aurangabad
Route Name-Key-2
Rs Sales
Sr No Dealer Name-Surbhi Agency Bil Parle ITC
1 Rajtilak Provision 4330.08 6000 0
2 Varad Medical 4305 1000 0
3 Swaraj Fastfood 8550.88 7000 1500
4 Anand Daily Needs 7051.5 5000 0
5 Jain Supper Mrkt. 8057.65 12000 2000
6 Prince Genral 20368.45 13000 3000
7 Sarita Dep. 36017.18 16000 2000
8 Dipak Provision 6547.36 4000 0
9 Cone N Cake 48332.86 35000 3000
10 Dalpath Provision 16200.65 4000 0
11 Mahakali Supper Shope 6155.08 12000 3000
12 Shive Rice 6431.85 22000 3000
13 Scholar Stationry 8855.32 11000 4000
14 mayur mini mrkt. 11346 14000 2000
15 Kumar prov. 9008 12000 3000
Total 201557.86 174000 26500
8) Aw Name -Ganesh
Town Name-Aurangabad
Route Name-Monda
Rs Sales
Sr No Dealer Name-Surbhi Agen. Bil Parle ITC
1 Prakash Prov. 6713 20000 8000
2 Gaya Comunication 2810 3000 0
3 Ganesh Krupa Gen. 2184 3000 600
4 Tapasya Medical 2430 2500 1000
5 Eshwar Sweets 1403 1200 0
6 T.V.S. Provision 2086 7000 0
7 Vasumal Prov. 2844 12000 0
8 Priya Tredars 4672 25000 5000
9 Maduri Traders 2231 12000 4000
10 Tirthankar Traders 11347 30000 0
11 Sanjaykumar&com. 25676 80000 5000
12 S.S.D. Trading 9777 3000 5000
13 Rajastan Trading Con. 41541 200000 25000
14 Rajastan Agn. 30025 400000 0
15 Kirti Trading 24101 300000 5000
16 Ghansham Trading Com. 13213 70000 2000
17 A.A.S Traders 1437 15000 0
18 Pravin Traders 7450 35000 0
19 Gurnanak Traders 3745 12000 0
20 Gurudata Kirana 2512 10000 6000
21 Rahul Traders 10512 25000 0
22 Ratan Traders 16045 80000 20000
23 Rajkumar Trading 20630 400000 3000
24 Good Luck Prov. 26641 200000 0
25 M.B. Kirana 1013702 1000000 3000
26 S. Kirana 2710 18000 0
27 Santosh Trading 5702 50000 20000
28 Patni Trading Com. 2428 20000 2500
29 FulChand Jain 6305 25000 0
30 sumit Supper Markt. 5070 10000 2000
TOTAL 1307942 3068700 117100
9) Aw Name -Ganesh
Town Name-Aurangabad
Route Name-Nandanvan colony
Rs Sales
Sr No Dealer Name-Surbhi Agn. Bil Parle ITC
1 Patil Kirana 2172 2000 0
2 M.D. Basher 1676 4000 0
3 Ambika Prov. 3385 0 0
4 J.M.S Grahak Sanstha 1660 0 2000
5 Ganesh Kirana 4405 4000 1000
6 Kalika Prov. 2825 5000 0
7 Zee Rani Prov. 2540 2000 600
8 Jayesh Medi 946 2000 0
9 Subodha Prov. 680 1800 600
10 shantanu Prov. 6256 5000 0
11 Santinath prov. 1172 2500 0
12 Shruti milk Center 3785 4000 1000
13 Sabhu Prov. 4218 6000 1000
14 Sk Mugdiya. 1261 3000 500
15 Nilesh Prov. 1740 4000 0
16 Sidharth Deep. 514 1500 0
17 Rahman Tobaco 12202 10000 500
18 Mavli Medi. 3272 3000 0
19 Viraj Medi. 373 1200 600
20 Vankatesh Dilly needs. 550 500 0
21 kasari Prov. 1074 3000 1200
23 Sapana Kirana. 3377 3000 1600
24 Mrunal kirana 2125 4000 1000
25 Shree Janral. 1477 1000 600
TOTAL 63685 72500 12200
10) Aw Name -Raju
Town Name-Auragabad
Route Name-Pir Bazar
Rs Sales
Sr No Dealer Name-Surbhi Agen. Bil Parle ITC
1 Naffes Dairy 2618.08 4500 2000
2 Prakash Prov. 2708.6 14000 4000
3 Pushkar Gen. 1074.12 4000 0
4 Bhakchand Prov. 272.46 600 0
5 Shital Prov. 4037.01 20000 8000
6 Agrawal Prov. 5876.86 32000 9000
7 Paras Sweets 447.64 3500 0
8 Sagar Prov. 4700.5 18000 2000
9 Hubolikar Ent. 2014.01 4000 800
10 surabhi gen 1704.83 4000 1000
11 kadar kirana 714.48 2000 1500
12 Taher Kirana 1153.32 3000 1000
13 Ruchi Tea 2804.12 5000 1200
14 Janta seva kirana 1502 4000 1800
15 kaleem Kirana 3078.82 10000 500
16 Bhutada Kirana 1742.65 20000 8000
17 Santosh Prov. 3848 18000 7000
18 sachin medi, 194.6 0 0
19 Sumit prov. 1838.44 4000 2000
20 Anapurna Tea 1124.48 1500 800
21 tupe patil 1757 3000 700
total 45212.02 175100 51300
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 behavior because retailers can't help quality and price. It is
only up to dealers said it is demand they sell Britannia that at retail
shop it is brand popularity, which determine the purchase of biscuit.