Biscuit & Cookies Industry

Presentation by Sachin.P.M 41001; Tarini 41002 & Ratul Maiti 41000;

Vision, Mission & Strategy of

What is it?
Vision

Mission

Its the sight of a train driver, i.e.

How far a train driver can see?

Its the
engine of a train

can be interpreted as the vision of a company.

to drive the bogies in desired direction.

What is it?
Vision Mission

In short Vision, Mission & Strategies?

Make a choice in life

define your VISION

Take responsibility for your own destiny have a MISSION

Execute your own ideas

follow your STRATEGY

Change in Mission of Wal-Mart

Vision

Mission

"We save people money so they can live better.

Wal-Mart: "To give ordinary folk the chance to buy the same thing as rich people. "Become a $125 billion company by the year 2000."

Vision, Mission & Strategies of

BISCUIT INDUSTRY
Biscuits are cheapest processed food ever made. Per `12600Cr But this industry size is aboutcapita consumption Biscuits were assumed as sick-mans diet in early days. But now, it has become the most India USA loved fast food for every age group. 2kg/person/yr 15kg/person/yr

The biscuit market has now moved from the core Urban-Cracker, Glucose base to more value added categories.
Rural- Glucose cookies,Cream sandwitch

BISCUIT INDUSTRY
Largest Global Biscuit producers
1.
2. 3.

USA China India-[30Lakh MT (with 17% export)]

Penetration Rate:
1. 2.

Urban -85% Rural -55%

Growth Rate: 12-17% in the next few years. (Britannia @ 22% CAGR)
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PRODUCTION OF BISCUITS IN INDIA (Category wise)

20-20 Sunfeast, 12%

Glucose Biscuit (44% of total biscuits) Milk Marie Market Share 12%
13%

Others 8%

Tiger, 22%
Glucose 44%

CREAM 10%

Parle G, 66%13%

CRACKERS

MARKET SHARE
14% 5% 6% 9% 35%

BRITANNIA PARLE SUNFEAST

PRIYA GOLD
ANMOL OTHERS

31%
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Poters 5F Model
Threat of substitute products

Bargaining power of suppliers

Rivalry among competing firms

Bargaining power of buyers

Threat of New entrants

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Poters 5F Model for Indian Biscuit Industry

Bakery Items, Fast foods, Ready-toeat

Not favorable Attract outsiders Freezing effect Welcome effect

Inflation in sugar & wheat prices

Britannia, Parle, ITC

Premium products are increasing in market

Oreo, PepsiCo

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Industry consists of
Major player

Minor player

Parle Britannia ITC

Emmerging Players Krafts Cadbury Oreo PepsiCo

Surya Biscuits Pvt. Ltd. PriyaGold Anmol cremica

Foreign Niche Players United biscuits Duke Unibic Nubisco

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Britannia Industries Ltd.

Britannia (Great Britain) Its a `4410Crs Industry

Est. in 1885

CEO: Vinita Bali Owners: Mysore Kingly Wadias family Got huge investment and got famous in World WarII. Products: Biscuits, Cookies, Bread, Rusk, Cake, Milk & its products and Breakfast. HQ: Kolkatta, Reg. Office: Bangalore Manuf. Unit:Bangalore,Mumbai,Kolkatta,Uttarakhand, & Orrissa
(up coming)
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Source: http://www.britannia.ac.in

Britannia Industries Ltd.

Strategies for Britannias NutriChoice Strategies Part-1 Vision Nutrichoices - Aged diabetic population Mission

campaigns To dominate the Lot and beverage food 5 varients: of Promotional To dominate the food and beverage market in India through a profitable range market in India with a distinctive Eat Healthy, Think Better of Tasty yet Healthy products by making range of Ragihealth, good for taste GoodTasty& Oats - Diabetic Friendly for Yet Healthy Britannia brands. every Indian a Britannia consumer.

"Eat Britannia, Go for World Cup 1999 & 2003 =37% increase in sale Tasty grains Dominant ragi, rice, 5 yet healthy - hunger burster (oats, corn,F&B market wheat) 'Britannia Lagaan Match Winner got chance to play cricket match with We want to be part of our consumer Sugar added film stars out - sweet but no at home,sugar home, a natural part (Taste Digestive bhi)for general health Every Indian A Britannia Bhi, Health To Make out of promote 50-50 brand free books, scale, pencils were provided free To of his/her life. Consumer of cost.

http://www.iHealthU.com at home, outside and everywhere.

Accurate Demographic segmentation

Milk Bikes Little Hearts Marrie Gold Good Day Bourbon

Children b/w 7-14yrs of age For Teenagers class friends Undisputed Universal brand to infuse happiness into peoples life adolescent/adult indulgence category.
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Source: http://www.britannia.ac.in

Britannia NutriChoice Ad

Now, let us look at the promotional activities for NutriChoice Positioning

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Sunfeast biscuits, ITC Food Div.

ITC joined Biscuit players in July 2003 Location: Bangalore, It started with the strategic plan to save its core cigarette industry using parallel advertising.

Source: ITC Food Division site & internet

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Sunfeast biscuits, ITC Food Div.

Vision

Strategy

Mission

To deliver highest To be one of the leading product quality and biscuits manufacture in Corporate strategy aimed at creating multiple drivers of growth anchored on its value to consumers Indian biscuit market time tested core competencies.

To attain leadership on the strength of world class standards in quality and costs Leverage the goodwill of trademarks to: Capture emerging opportunities Further enhance current brand equit To at least 11% capture the `11,000Cr biscuit industry To diversify ITCs core business from mere cigarettes to books, food & beverage industry, Hotels and there by advertise the products of ITC. = Parallel Advertising. To be one of the premier player of Biscuits in India

Source: ITC Food Division site & internet

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Parle

Est. in 1974 at Jhajjar, Haryana Size: 4000+Cr Company Largest biscuit & confectionary manufacturer of India Strengths: Extensive distribution network Consumption: 4515biscuits/second throughout India

Source: www.parleproducts.com

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Parle
Vision

Strategy

Mission

Shaktiman & 1929 - To provide JOY & 1997-Parle-G: Sponsored for Indian Superhero Every nation dreams of a better Chandamama comic tomorrow. And every nations CHEER to Children & adult (published in 13 indian language) tomorrow lies in the hands of alike, all over country with its

its children; children who make the nation proud in every aspect; the young geniuses Ek hi bite main sweet bhi, salt bhi campaign for KrackJack who shape the future of the nation. So its HIDE & SEEK Hritik Roshan, Aamir khan and Darsheel safary - endorsed important to nourish these young minds, How Parle-G maintained `4/- for many years?after all its a question of for By varying number of biscuits the nations future.
2005-Promote its products, Golu Galata

Biscuits.

Weight per biscuits Variation in Margin of sellers

Penetration strategies: How Parle became #1 in biscuit consumption volume? Source: www.parleproducts.com 20 High quality at low price

Unibic India Ltd

Unibic Australia Pvt. Ltd. Is the parent company. It manufactures and supplies

biscuits, cakes, cookies, pastries, and shortbreads to supermarkets in

Australia, the United Kingdom, South East Asia, New Zealand, Canada, and the United States

Incorporated in Indian in 2004

Source: http://www.unibicindia.com/corporateprofile.html 21

Unibic India Ltd

Vision

Strategy

Mission

To Provide world class product at affordable prices: To delight the consumer 1. Manufacture & Market of 1. Manufacturing with unique premium unit at Bangalore products in major markets 2. at reasonable products Marketing emphasis on Major towns and Organized retail. and organised trade 3. Niche market: Sugar-free biscuits prices 2. Strategic 4. No major player in Cookies market categoryalliance of biscuits. 5. Collaboration with Caf Coffee Day 3. Export to Australia, New 6. Export from Bangalore & Australia to US, Europe, Middle East. Zealand, UK and US, 7. Unique production methods-WireMiddle east and south cut technology east.

Not to mess up with the big guys (such as Britannia, Parle and ITC), Unibic has Adopted a strategy What not the big guys not do, will be done by Unibic Hence it has entered into Sugar Free biscuits.
Source: Product under development is chyawanprash New http://www.unibicindia.com/corporateprofile.html

biscuits just for change

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Kraft foods (Cadbury Oreo)

Vision

Strategy

Mission

Innovation Satisfying real-life "Helping People Around the Oreo was promoted by Oreo Thoroughness needs with unique ideas Bus, Bus Hoodings, World Eat and Live Better." It is still in the market research stage. Quality Fulfilling a promise to deliver the best It has suied major player Britannia (Treat-OSafety Ensuring highrights, to design) in Copy standards in everything we make capture Indian biscuit market.

Respect Caring for people, communities and the environment Integrity Doing the right thing Openness Listening to the ideas of others and encouraging an open dialogue

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Strategic Comparisons-1
10 9 8
9 8 8 7 6 6 8 7 6 8 7 6 8 7 7 8 7 8 7 8 8 7 8 7

Ranking

7
6 5 4

3
2 1 0

Packaging

Cost

Variety

Nutrition

Filling

Taste

Value Offerings
Parle Britannia Sunfeast

Popularity with kids

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Availability

Comparision-2
Type
Britannia

Pricing strategy
High margin in cream,

Promotional strategy
10% of its turnover on marketing, as its is growing @22% CAGR every year Best of Brand ambassadors, mass campaigns, followed Cadbury way Largest spender on ads & promotion i.e. 35-40% of its turnover on marketing 10% of its turnover on marketing especially market research. Not significant

Distribution strategy
Excellent distribution channel also through army Extremely widespread distribution Existing market of tobacco Small scale distributers

Digestive for lifestyle

volume from Marie & glucose

High value, low margin

Parle

Glucose, Choco chips

Sun feast Oreo

Premium Variety Cream sandwich segment Cookies, Butter, Healthy biscuits

High margin in cream, volume from Marie & glucose Not cheap for consumers, but good quality. Reasonable,

Unibic

Major metros and malls, export, CCD

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Thank you!!!

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Thank you!!!

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Disclaimer
All pictures and Logos used in this ppt
remains the property of the patent holders If there is any legal notifications to be made, it is at Thirthahalli court. Contact information: sachinpm.cabm@gmail.com

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