Documente Academic
Documente Profesional
Documente Cultură
Britannia
Industries
NutriChoice
Marketing Management
1501068
Phadnis
Aniket
1501074
Aroop Sanyal
1501100
Sahu
Sabyasachi
1501103
Bose
Saurabh
1501104
Shah
Nishant
1501108
Ghosh
Sumitro
Table of Contents
Britannia Industries An Overview.................................................................................................................. 3
Timeline of Britannia Industries Limited:......................................................................................................................................3
Product Portfolio...........................................................................................................................................................................4
Major Players................................................................................................................................................................................4
Awards and Recognitions:............................................................................................................................................................4
Current Trends and Prospects in the Biscuit Industry:..................................................................................................................4
BCG Analysis:................................................................................................................................................. 5
The Dog: Tiger Glucose...........................................................................................................................................................5
The Cash Cow: Good Day / Marie............................................................................................................................................5
The Question Mark: Cream Biscuits Pure Magic / Bourbon...................................................................................................5
The Star: Health Biscuits Nutrichoice...................................................................................................................................6
Digestive Biscuits Industry Overview.............................................................................................................6
Players in the Market....................................................................................................................................................................6
Size of the Market.........................................................................................................................................................................6
Drivers..........................................................................................................................................................................................6
Porters Five Forces....................................................................................................................................... 7
Bargaining power of supplier...................................................................................................................................................7
Bargaining power of Buyers....................................................................................................................................................7
Threat of New entrants............................................................................................................................................................7
Rivalry among Established rivals............................................................................................................................................7
Threat of substitutes...............................................................................................................................................................7
SWOT Analysis............................................................................................................................................... 8
Segmentation................................................................................................................................................ 8
Targeting:...................................................................................................................................................... 9
Geographic..............................................................................................................................................................................9
Demographic...........................................................................................................................................................................9
Psychographic.......................................................................................................................................................................10
Behavioral.............................................................................................................................................................................10
Positioning.................................................................................................................................................. 10
Product Life Cycle........................................................................................................................................ 11
Marketing Mix of Nutrichoice........................................................................................................................ 11
The Product................................................................................................................................................................................11
The Price.....................................................................................................................................................................................12
Distribution and Place................................................................................................................................................................12
Promotion...................................................................................................................................................................................13
Indias first health social networking site nutrichoiceiHealthU:............................................................................................13
Two sided message in advertising campaign........................................................................................................................13
Britannias Nutrijig campaign:...............................................................................................................................................13
Recommendations:....................................................................................................................................... 14
Increase Global Presence......................................................................................................................................................14
Place......................................................................................................................................................................................14
Quality and Product...............................................................................................................................................................14
Appendix..................................................................................................................................................... 16
Summary of Responses..............................................................................................................................................................16
BCG Analysis..............................................................................................................................................................................18
2 | Page
Britannia
Britannia Industries An Overview
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 exacting standards of English tea-time
snacking. From the paeans of ecstasy for that first batch of aromatic, flavour-some
biscuits was born a long tradition of delectable baking - and its Indian custodian,
Britannia
BRITANNIA , EAT HEALTHY, T HINK BETTER .
Britannia Industries Limited (A Wadia Enterprise) is an Indian food products corporation
based in Kolkata1. Over the last century, Britannia has been serving the Indian consumer
with a range of fresh, nutritious and flavour rich products. Their core value is to deliver a
sensory experience in every product every time.
Since its inception in 1892, with an initial capital of Rs. 275/- Britannia has become one of
Indias leading food companies and a leader in the Bakery and Dairy segments. Their
revenues are around Rs. 6000 cr annually and currently has 38.5 % market share of the
Rs. 250002cr biscuit industry in India.In the biscuit industry where the organized and
unorganized sector is divided roughly in 55:45, its distribution spans over 35 lakh retail
outlets and its reach over 40% of Indian homes3. Moreover more than half (55%) of
Britannias revenues comes from the rural sector
3 | Page
Product Portfolio
Britannia is Indias favourite food brand and a storehouse of power brands like Good Day,
Tiger, NutriChoice, MarieGold etc. which are household names in India.
Its product portfolio comprises of biscuits, bread, cakes, rusks, and a host of dairy
products like cheese, beverages, dairy whitener. Out of its 13 biscuit brands, there are 5
power brands that Britannia has identified viz. Good Day, Tiger, 50:50, Marie Gold and
NutriChoice.
Major Players
The major competitors of Britannia in the biscuit industry are Parle and ITC which have
market shares of 29.5% and 14.8% respectively. However, new entrants like Cadbury
India Ltd. which sells Oreo, McVitties and GlaxoSmithKline have made the market
competitive.
Britannia was awarded the Global Performance Excellence Award By Asia Pacific
Quality Organization in 2012
Britannia was voted in top 300 small companies by Forbes global
Britannia Industries was awarded the Brand Equity Most Trusted Brands according
to consumer surveys in 2002
Britannia Industries was conferred with the prestigious Golden Peacock National
Quality Award.
Hence, looking at the progress of Britannia since its inception in 1892, it can be said that
Britannia has built its footprint in the overall industry- biscuit by biscuit.
4 | Page
BCG Analysis:
The BCG analysis gives us a better picture of the biscuit industry and how the various
products of Britannia are faring vis--vis the competitors in the market. The market
shares and the growth rates are as indicated in the matrix and in the Appendix
Lets start from the bottom:
5 | Page
Drivers
2011 emerged as the year of low cost nutrition. Consumers began to accept new
products much faster than before. Leading players amped up their production and the
subsequent positioning statements and advertising made consumers realise that biscuits
that are inherently low-cost can be nutritious as well.
Sales of biscuits have risen over the 1990s and the biscuits segment is one that already
has mass market acceptance. Biscuits are a segment that has a unique perception here
in the country they are considered as a healthy snacking option by default
High margins have incentivised the manufacturer to introduce different kinds of biscuits
that are targeted to specific segments. The evolution of modern organized retail and an
increasing affluence amongst consumers has also encouraged manufacturers to develop
and produce on a mass scale.
6 | Page
Threat of substitutes
Biscuits or healthy biscuits is a breakfast snack and has many alternatives that offer the
same value-addition in terms of micronutrients like iron and folic acid.
Organized sector - Kelloggs cornflakes, Quaker oats etc.
Unorganized sector local products or regional products that are usually the preferred
choice of breakfast in India.
To counter the threat of substitutes companies are trying offer better value through wider
product accessibility. They are vying for the limited shelf space by investing heavily in
differentiated packaging.
7 | Page
SWOT Analysis
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Segmentation
Segment
Demographic
Pros
Age
Cons
Age
Age group of 25+ are more
It is still not the first choice
health conscious.
of school children and
college students.
Income
Income
Medium to high income
Majority population is
groups are willing to spend
below middle class level
money
on
healthier
and do not buy biscuits as
alternatives.
snacks.
Education
Education
With a rising educated middle
Difficult to market such
class, the market acceptance
product in low literacy
8 | Page
Psychographi
c
populations
Lifestyle
Lifestyle
The product is tailor made for
The survivors might never
the achiever segment of the
find it useful or valuable
population.
and they constitute a huge
part of the population.
Social Class
Social Class
The majority consumer base
Lower middle class and
varies from middle class to
working class view health
upper class.
snacks as a luxury.
Behavioral
Occasions
Occasions
Health biscuit can be made
It does not suit the taste
into a habit for the customers
buds of Indian customers
as a mid meal snacks.
immediately and would take
time to make it a regular
habit.
Benefits
Benefits
It is perceived as a high cost
The USP of the product is its
product.
perception as a health
substitute in terms of richness
in fibre at an affordable cost.
Loyalty status
Loyalty status
As a first mover into the
industry accompanied with a
huge brand name, consumers
tend to be loyal to the brand.
9 | Page
Targeting:
Geographic
City: Our target of the health product will be tier 1 and tier 2 cities, due to greater
market size and urban life style of the population.
Demographic
Age: The primary age group that is must be targeted is from 25 to 55 years. This age
group segment constitutes more than 40% of the population. This age group is more
health conscious and would invest in healthier substitutes over snacks.
Income: The middle and higher income group is targeted owing to their affordability of
the product. Nutrichoice has come out with a product NutriChoice Heavens for the
higher income group making it the premium product. On the other hand NutriChoice
Digestive is aimed at the middle income group.
Education: Since the health biscuit is making people aware of its benefits, it is highly
popular among educated mass and with the growing literacy, the product can target a
greater volume.
Psychographic
Lifestyle: All the health biscuits under NutriChoiceis targeting Achievers and Strivers.
The Achievers are those people who have worked their way to success. The Strivers on
the other hand are people who have a strong will power and welcome challenges. The
health products like NutriChoice appeals to them more than common snacks.
Social Class: The upper class and upper middle class have a high amount of spending
habits in buying health oriented products; hence the health biscuits will be ideal to be
targeted on them.
Behavioral
Occasions: We are looking to substitute the daily Indian snacks with health biscuits.
Benefits: With the stress on being a health oriented product, its main benefits like high
fiber, zero cholestrol, zero trans fat can be projected as a healthier alternative over
traditional snacks.
User Status & Rates: The product is targeted for the regular and potential user like
those who are prone or diagnosed with disease such as diabetes, high cholesterol and
obesity.
10 | P a g e
Loyalty Status: Since NutriChoice is one of the first products to be launched under
Health snack, we are aiming to hold customers based on the early movers and brand
name of Britannia.
Summary: We look to target the 25-55 age group people lying in the middle and higher
income group living in tier 1 and tier 2 cities having a high educated population. Further
NutriChoice is targeted to be accepted as a substitute for traditional Indian snacks
specially for people having an attitude of those of strivers and achievers looking for
health benefits and for those taking precautions of their health.
Positioning
The current positioning statement of the brand describes it as a Helathy Snacking
Option without Compromising on the Taste & the Health
The recall for the brand was amongst one of the highest when related to a digestive
biscuit the figures substantiated by its market share and its aggressive promotion
campaigns designed to pull customers not only towards the product but a healthy
lifestyle overall.
The direct competitor is McVitties which has been rated slightly higher on a taste level as
compared to Nutrichoice and hence Nutrichoice needs to make a conscious effort to
enhance the product in this regard.
11 | P a g e
Growth
Maturity
Decline
Sales
Stage
The health biscuit industry is a growing industry, where the consumers have started
giving preference to health oriented products. The market size comprises only of the
upper and upper middle class. With the growing income of people, greater health
awareness, increasing population and variety of NutriChoice products, the brand is in the
Growth stage
12 | P a g e
The Price
Nutrichoice chooses different price mixes for each of its products ranging from INR 10 to
INR 50 per 75gms. A high variation in size is also provided so as to match a particular
price point, given the fickle nature of the Indian FMCG Customer
The pricing of each product variant is unilaterally determined by the absolute price point
because that determines affordability for a large section of consumers. In the recent
years, there has been a spike in the prices of raw ingredients coupled with a sharp
decline during the same period. Britannia chooses to pass on whatever benefit they get
with this pricing to the customer. But given that the demand and substitutability of a
product in the FMCG sector has to largely remain free of any variation, the company
chooses to pass on this benefit by increasing the quantity offered at that price point.
Custom
ers
Convenience
stores
Kirana
Stores
Distributi
Allocatio
n
CFA
Factory
Sorting
Britannia follows the FMCG channel of distribution. The factory products are first shelled
out to the CFAs (Carrying & Forwarding) agents. These are then sorted and passed on to
the distributors across India and then allocated to retailers, which include minor local
kirana stores. The company handles the distribution to modern trade channels like the
Big Bazaar, Reliance Fresh itself. The other channel of sales or distribution is also the
institutional channel/trade like Hotels, Airlines, and IRCTC.
The company is focusing to improve on its distribution footprint to reach a wider
consumer base. It is investing heavily on infrastructure to reach out more outlets.
Currently the reach of Britannia is 3.6 million outlets, which is higher than Parle (3.3
million). It plans to take manufacturing to consumption centers especially in weak
regions like north and west.
On an all-India, the urban-rural split of business is 60:40.There is room for improvement
as far as rural penetration goes.
13 | P a g e
Small grocery
stores
other grocery
retailers
Hypermarkets/Sup
ermarkets
80.9
Apart from the normal convenience and retails stores, Britannia is planning to procure
shelf spaces in pharmacies in consistency of their products functionality to provide health
benefits.
Promotion
Britannia NutriChoice has positioned itself as a tasty and healthy biscuit, available at an
affordable price and as a result offers better value for money. Over time, it was
perceived as highly instrumental in representing the growing trend of Indians adopting
the healthy lifestyle. Britannia conveyed this message and consolidated the brand of
Nutrichoice through advertising and many other social media activities including
billboards, magazines, television ads and point of sales advertising. However, with
Britannia being consolidated in the market, it follows a pull strategy rather than a push
strategy.
14 | P a g e
Recommendations:
Increase Global Presence
Britannia Industries as of today has very limited global presence. Though, It is in joint
venture with biscuit manufacturing companies in the Middle East (Saudi Arabia and
Oman), it has no presence in the western countries. With the per capita consumption in
the South East countries hovering around 5.5% and that in the US being around 9-10%,
Britannia Nutrichoice should foray into the global market to consolidate its brand equity.
Besides, to capture the attention of the western market Nutrichoice should also align its
market offerings with the tastes of the western markets by incorporating new flavours.
Place
The biscuit industry as of now is divided into organized and unorganized sector in the
ratio 55:45. Moreover, with the market in Tier II and Tier III cities still being relatively
untapped, Nutrichoice can penetrate into these cities by leveraging the existing
distribution channels of Britannia. Moreover, with the increasing trend of diabetic and
obese people, Nutrichoice, can look at procuring shelf space in pharmacy stores
15 | P a g e
References
http://www.moneycontrol.com/news/cnbc-tv18-comments/pepsi-britannia-eat-into-snackmarket-target-health-fans_667118.html
http://pitchonnet.com/blog/2014/02/11/constant-innovation-helps-britannias-nutrichoiceremain-relevant/
http://marketingpractice.blogspot.in/2014/01/britannia-nutrichoice-tasty-health.html
http://www.afaqs.com/news/story/37081_McVities-Digestive-Wholesome-challenge
http://www.businesstoday.in/magazine/features/biscuit-market-global-firms-want-anindian-share/story/13884.html
http://www.ihealthu.com/nutrichoice
http://articles.economictimes.indiatimes.com/2013-11-04/news/43658657_1_unitedbiscuits-mcvitie-revenue-growth
http://www.indiamart.com/britanniaindustries/products.html
http://www.telegraphindia.com/1110530/jsp/business/story_14046653.jsp
http://www.foodnavigator-asia.com/Markets/Biggest-biscuit-consumer-set-for-fast-growthand-premium-charge
http://marketingpractice.blogspot.in/2014/01/britannia-nutrichoice-tasty-health.html
16 | P a g e
http://www.business-standard.com/article/management/the-biscuit-battles114120800961_1.html
http://www.indiainfoline.com/article/news-business/britannia-launches-nutrichoicediabetic-friendly-essentials-113101603308_1.html
http://www.biscuitfederation.com/indus_profile.htm
17 | P a g e
Appendix
Appendix
Summary of Responses
18 | P a g e
19 | P a g e
BCG Analysis
Segment
20 | P a g e
Specifications
Relative Market
Share amongst
Gro
14
Hig
sh
Star
Question
Mark
Cash Cow
Dog
21 | P a g e
competitors
Co
55
Mc
20
Su
30
Par
11.6
Par