Britannia vs McVities

Presented By Group 4:
Arun Rana Ashray Mishra Ayush Sinha Pragya Agarwal Sommya Singhal Kushal Abrol

Britannia
Britannia Industries Limited is an Indian company based in Kolkata Famous for Britannia and Tiger brands of biscuit

Britannia has an estimated 35% market share.

Britannia was equally recognized 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 MaskaChaska became India's most successful product launch.

 In 2002, formed a joint venture with Fonterra, the world's second largest Dairy Company, and Britannia New Zealand Foods Pvt. Ltd. was born.

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.

United Biscuits Pvt Ltd.

Wholly owned subsidiary of United Biscuits British multinational food manufacturer that was formed in 1948 following the merger of two Scottish family businesses McVitie Price and MacFarlane Lang. Leading manufacturer of snack foods brands in over 100 countries worldwide with its key markets in UK, France, Netherlands and other European Countries.

UB International
Drives the marketing and sales of UBs biscuits and snacks around the world. Consumer led approach for key brands in key markets. It aims to meet consumer needs in the three main global snacking trends Health Pleasure Convenience

Positioning of Mcvities
Healthy Biscuit Whole grain " content->worldwide postioning " Whole Wheat At Its Heart". In India, it focuses on Health(whole grain) and taste Taste ke Nayi Language

Positioning Hierarchy
Enjoyed the world over: International appeal Great Tasting: Indulgent category Made of Wholesome Ingredients: McVities is not about dieting, or weight loss. British Brand: Heritage

Positioning of Britannia
Enjoyable and healthy Britannia is not in the "health food" business, but rather "in the business of delight and enjoyment," competing not only with other biscuits but also with savories, chocolates and other snacks---MD

Product Portfolio Comparison

Glucose Category Mc Vities Britannia

No Product

Choco chips Strawberry Chocolate Elaichi Butterscotch Orange Pineapple Tiger Tiger coconut energy Tiger energy pops Tiger chai biskoot Tiger banana biscuit

Marie Category

Mc Vities

Britannia

McVities Marie

Vita marie honey oats Marie gold Rs 5 Vita marie gold Marie Gold

Cream Category

McVities

Britannia

Chocolate Orange

Choco decker milko Treat choco Choco decker jelly Mango mischief Pine apple Jim Jam Masti orange Elaichi Fun Bourbon

Health Category

Mc Vities

Britannia

Digestive

Diabetic friendly essentials oat cookies Diabetic friendly essentials ragi cookies Nutri choice digestive Nutri choice 5 grain Classic lite cracker Nutri spice cracker Nutri choice thin arrowroot

Salty Category

Mc Vities

Britannia

No Product

Time pass mindless masala Time pass tapori masala Time pass loafer lemon Nimkeen Classic salted

Cookies Category

Mc Vities

Britannia

Butter Cookies Cashew Cookies

Good day Butter Good day Cashew Rich butter cookies Choconut cookies Butter scotch cookies Honey & Raisin cookies Choconut Chocolate chip Rich butter cookies ATC Rich cashew cookies ATC Rich pista cookies ATC

Milk Category

Mc Vities

Britannia

No Product

Almond cookies Milk bikis Milk cream

Product Portfolio Comparison: Dairy Products

Dairy Products Mc Vities
No Product

Britannia
Dahi Daily fresh low fat dahi Daily fresh dahi 200gm Daily fresh dahi 400gm Acti mind Mango Strawberry Britannia Dairy Whitener Dairy whitener pouch 20gms Dairy whitener 950 gm Carton pack Dairy whitener 950 gm Pouch pack

No Product

No Product

Product Portfolio Comparison: Cakes

Cakes Mc Vities No Product Britannia Barcake orange Barcake chocolate Veg cake Nutri choice family slice Nutri soft premium sandwich Chunk cake pineapple Chunk cake berry cherry Chunk cake fruit Cupcake vanilla Cupcake berry cherry Cupcake cashew C\upcake orange Barcake milk Barcake butter sponge Barcake pineapple Barcake fruit

Britannia: SKUS present in Indian Market

Product Good day Bourbon Treat Fifty -Fifty Milk Bikis Nutri Choice SKU (gm) 35, 75, 90, 100, 180 112 100, 200, 164 67 156 100

Marie Gold Time Pass Cookies

Tiger

330, 337, 370, 90, 171, 182, 133 64, 71 100

82, 58, 67, 150, 65, 64, 71

McVities: SKUS present in Indian Market

Product Description McVitie's Digestive McVitie's Butter Cookies McVitie's Cashew Cookies McVitie's Chocolate Creams McVities Orange Creams SKU (gm) 16, 82, 123, 230 66, 166 68, 136 63 58

McVitie's Marie 117 G McVitie's Marie 225 G

117 225

Evolution of Britannia & its product extension Britannia has rationalized its product portfolio pruning the number of its brands. Moved into the mass market for biscuits introducing low-priced varieties under the umbrella brand, Tiger Britannia has the option to draw from the product portfolio of Groupe Danone.

 Launched a number of dairy products (processed cheese, flavoured milk, butter, ghee and dairy whitener) and ethnic snack foods such as alloo bhujiya and chana choor. Britannia Industries has acquired 49% stake in Kwality Biscuits. It has also acquired Kwality Chef and several other trademarks along with copyrights, designs in labels and packing material.

Britannia is looking for more acquisitions in food business.

Evolution of Mc Vities
Mcvities entered India in late 2009 after buying a plant in HP and launched Digestive in Feb 2010 Market share of 22 % In Jan 2011 United Biscuits launched McVities Chocolate Cream which was followed by launch of cookies and Marie in March,2011 and Orange Cream in May,2011 in the digestive category

Britannia vs Mc Vities
Presence in all segments namely low-end, mid-priced and premium Good Day, Tiger, Treat, Marie, Milk Bikis, 50:50 are referred to as power brands, which together account for around 90 per cent of revenues in the biscuit business.

Mass segment contributes the volumes, the premium segment adds value to the sales.

 Britannia has a focus on health segment (high fibre & low fat) through its Nutrichoice range with variants like digestive, cream crackers and multi-grain. Although this segment is small, it is still unique . The growing urban and health conscious population would drive the demand for these biscuits in the future.

Perceived Gaps
Many times higher number of products in almost all the categories of biscuits. Britannia still has to concentrate on the health needs of the consumers and can introduce the health perspective in its already existing categories as well as come up with new category of biscuits focusing on health. Britannia is a leader and far ahead of Mc Vities in the all the segments of biscuits.

New Product Introductions

Ice Creams
Strong presence in the food industry High brand equity can help Britannia to enter the Indian ice-cream market to combat with strong players like Amul, Kwality Walls and Vadilal. The Indian ice cream industry is currently estimated to be worth Rs. 2,000 crores, growing at a rate of approximately 12%. Ice cream can contain a considerable quantity of air, even up to half of its volume. This makes ice cream a business with high profit margin.

 Potato Chips
Market Potential of Potato Wafers and Chips Potato Wafers and Chips are one of the most celebrated in the Ready To Eat munchies market, relished in almost all the parts of the world. They serve as an appetizer, side dish, or snack.

 Aggressive marketing and advertising planning to communicate the presence of the new product category under the brand name Britannia Use of existing strong distribution channels as well as develop new cold channels for the ice-creams. Sales promotion and advertising should be the battleground for Britannia in its initial phase of product launch.

Go-to-Market Strategy

Define the market opportunity

Go-to-market strategy

Review current and prospective market of ice-creams and potato chips Review trend data from trade publications and analysts Define the primary customers who will be served by the new offering, and determine what would compel them to buy the products from your organization. Develop a revenue model based on expectations for market penetration, average deal size, and the impact of new marketing efforts. Estimate margins over one-year and three-year periods, based on start up and ongoing costs. Based on how the market is defined, set clear goals for market Focus on the issues: How and where the products will be launched? Why do customers need these products? Why will customers buy these products from Britannia?

Build budget models

Define the strategy

Outline the tactics of the 1st year of operations

Identify and manage risks

When, where and how many units to be launched? Do any other product lines need to be pruned in order to increase sales of the new product
Risks involved with presence of strong players Risks related to the acceptance of new products and their tastes

Reducing the GTM time

The company should initially launch the product category with lesser number of more probable of success variants.
Using the same distribution channels will give Britannia a huge advantage, save time and money for the company and enable the company to enter into the market earlier and in a stronger way.

Sources of Brand equity

Media types used in advertising Public relations Sales promotions Sports association

CBBE

Brand identity (Brand salience) Mc. Vities 33 % of the customers say that they are neutral when it comes to recall. Nearly 30 % respondents agree that they do recall Mc. Vities when there is any buying situation. 35 % respondents refused completely for this brand.

 Britannia 90 % agreed readily that they do recall Britannia biscuits when they are in a buying situation.

When it comes to brand recall and awareness Britannia is far ahead of Mc. Vities.

Major issues
Not advertising properly. They used channels like DISCOVERY on television to advertise their product which were not very familiar to the Indian consumers Not present in each and every segment of the industry

Brand performance Incremental innovation rather than radical Rather than venture in new product categories, Britannia has gone for the line extension. The urban and educated people are still convinced by the quality of Mc. Vities biscuits but the company has not been able to make an image among the customers.

 Mc. Vities has still not come up with all price segments products in India. They have just come up with few products whereas Britannia has come up with all three segments products.

Brand imagery Britannia spends about 7 % of its revenues on advertising and it appears to spend it to a good effect. Memorable taglines, innovative campaigns ( linked to world cup, or tv shows for example )a mix of more functional and advertising spots, have fostered brand recognition.

 Good job of mixing functional and celebrity campaigns to reinforce corporate brand and build distinct images for its various biscuit brands Whereas Mc. Vities has not been able to build such strong image in the minds of Indian consumers. They have not been able to position any of their product in a way that consumers can associate with it.

Brand responses( judgements ) Packaging

When the consumers were talked about the packaging, most of them find the Britannia biscuits packaging quite attractive and informative. Whereas when the consumers were talked about Mc. Vities , most of them were neutral about its packaging. Neither they were commenting on the packaging of products nor they found it very attractive.

 Pricing
Britannia has entered each price segment, people do not have much issues with its pricing Mc. Vities, since they have not launched all of their products in India, so pricing is an issue for some of the consumers, though most of the consumers were neutral for this aspect.

 Quality
Indian consumers rely more on Britannia over Mc. Vities biscuits. Britannia has strongly positioned itself as eat healthy, think better

Brand feelings
Most of the consumers especially children and youth feel good when they have Britannia biscuits. They like the taste and packaging of the biscuits. Moreover the celebrity endorsement for nutrichoice and attractive advertisements of of other products make them feel good.

 In case of Mc. Vities most of the consumers are neutral when they were asked about this aspect.

Brand resonance
When asked about whether the customers would like to go for some other brand if Britannia is not available , some of them said they will not. Whereas many were ready to switch on some other brand

BRAND AUDIT
A market survey was conducted in order to comprehensively examine both Mc. Vities and Britannia and discover their sources of brand equity

Demography of respondents:
Age
19% 16%
10-20 21-39 >40

65%

Annual Family Income

13% 33% 21% 0-2,00,000

2,00,000-5,00,000
5,00,000-10,00,000 >10,00,000

33%

30% 20% 15% 10% 5% 0%

Awareness of the products offered by both the brands:

25%

Mc. Vities
27% 6%
Strongly Disagree Neutral Disagree

27%

27%

13%
Agree Strongly Agree

Britannia

60% 50% 40% 30% 20% 10% 0%

47% 0% 0% 0%
Agree

53%

Strongly Disagree Neutral Disagree

Strongly Agree

Brand Recall
35% 30% 25% 20% 15% 10% 5% 0%

33% 21% 13%

33%

Mc. Vities
0
Strongly Agree

Strongly Disagree Neutral Disagree

Agree

60% 50% 40%

Britannia

30% 20% 10% 0%

53% 7%
Agree

40%

0%

Strongly Disagree Neutral Disagree

Strongly Agree

60% 50% 40% 30% 20%

Comparison of products offered by both the brands in same categories:

53%

Mc. Vities

10% Comparing Digestive with Nutrichoice, Marie with VitaMarie 13% 13% 13% 7% 0% Gold, Creams 3with 4 Treat 5and Cookies with Gooday 1 2

Britannia

70% 60% 50% 40% 30% 20% 10% 0%

60% 33% 0% 7% 0%

60% 50% 40% 30% 20% 10%

Customers attitude towards pricing of the products by the two brands:

55% 7% 13%
Neutral

Mc. Vities
20% 5%
Agree Strongly 80% Agree

0%

Strongly Disagree Disagree

Britannia

70% 60% 50% 40% 30% 20% 10% 0%

67%
7% 13%
Agree

0%

13%
Strongly Agree

Strongly Disagree Neutral Disagree

Attractiveness of packaging of the product:

60% 50% 40% 30% 20% 10% 0%

50%

Mc. Vities
15%

29% 3%
Strongly Disagree Disagree Neutral

3%
Strongly Agree

Agree

Britannia

70% 60% 50% 40% 30% 20% 10% 0%

60%

0% 0% Strongly Disagree Neutral Disagree

13%

27% Agree Strongly Agree

Quality of the product:

Strongly Agree Agree Neutral

13% 31% 48%

Mc. Vities
30% 40% 50% 60%

Disagree 2%
Strongly Disagree

6%
0% 10% 20%

Strongly Agree

31% 56% 13%

Agree

Britannia

Neutral Disagree 0%

Strongly Disagree 0% 0% 10% 20% 30% 40% 50% 60%

Taste of the products offered by brands:

Strongly Agree Agree Neutral Disagree Strongly Disagree 0%

17% 25% 40% 10% 8%

10% 20% 30% 40% 50%

Mc. Vities

Strongly Agree

15% 60% 23% 2%

Agree

Britannia

Neutral Disagree

Strongly Disagree 0% 0% 10% 20% 30% 40% 50% 60% 70%

Promotional Offers by the brands:

Strongly Agree
Agree Neutral Disagree Strongly Disagree

21% 13% 40% 13%

Mc. Vities

13%
0% 10% 20% 30% 40% 50%

Strongly Agree
Agree

20%

60%
13% 7%

Britannia

Neutral Disagree

Strongly Disagree 0%

Brand likely to be recommended to friends and family:

Strongly Agree

27%

Agree
Neutral Disagree Strongly Disagree 0%

27%
13% 20% 13%
5% 10% 15% 20% 25% 30%

Mc. Vities

Strongly Agree

40% 40% 7% 13%

Agree

Britannia

Neutral Disagree Strongly Disagree

0%
0% 10% 20% 30% 40% 50%

Getting a feeling of fun and excitement while using the brand:

Strongly Agree 0% Agree

33% 33% 14% 20%

0% 10% 20%
Strongly Agree Agree

Neutral
Disagree Strongly Disagree

Mc. Vities
30% 40%

20% 34% 33%

Britannia

Neutral

Disagree
Strongly Disagree 0% 0%

13%

5%

10% 15% 20% 25% 30% 35%

Celebrity endorsement is a major criteria:

Strongly Agree Agree Neutral Disagree 0% 13% 33% 47%

Strongly Disagree
0%

7% 10% 20% 30% 40% 50%

Brand Awareness
Strongly Agree Agree Neutral Disagree Strongly Disagree 0%

10% 16% 30% 37% 7%

5% 10% 15% 20% 25% 30% 35% 40%

Mc. Vities

Strongly Agree Agree

53% 40%

Britannia

Neutral 3% Disagree 4%

Strongly Disagree 0% 0% 10% 20% 30% 40% 50% 60%

Factors considered while purchasing: (1- Least Rating, 5 Highest Rating)

a) Health Suggestions on Packet
5

5%
40% 41% 7% 7%
0% 10% 20% 30% 40% 50%

4
3

2
1

b) Color of the packet based on the flavour

5 4% 4 3 2

26% 50% 20%

1 0%
0% 20% 40% 60%

c) Separate pack per serve

5 4 3

13% 67% 13% 7%

1 0%
0% 20% 40% 60% 80%

d) Packaging style
5 0% 4 3 2 1 0% 0% 10% 20% 30% 40% 50%

47%
40% 13%

e) Appearance on shelf

5 0% 4 3 2 1 0% 0% 10% 20% 30% 40% 50%

47% 33% 20%

Will you go for any other brand if Britannia is not available?

37%

63%

Yes

No

THANK YOU!!