Bharath Canning Company Limited

Product and Brand Management

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Bharath Canning Company Limited

Product and Brand Management

Contents
INTRODUCTION:......................................................................................................... 0
MISSION..................................................................................................................... 0
PRODUCT LINE:.......................................................................................................... 0
CATEGORY ATTRACTIVENESS ANALYSIS:..................................................................1
AGGREAGATE CATEGORY ANALYSIS:...................................................................1
CATEGORY SIZE:.................................................................................................. 1
CATEGORY GROWTH:.......................................................................................... 2
STAGE IN THE PRODUCT LIFFECYCLE:................................................................3
SALES CYCLICITY:............................................................................................... 3
SEASONALITY:...................................................................................................... 3
PROFITS:.............................................................................................................. 4
CATEGORY FACTORS:............................................................................................... 4
THREAT OF NEW ENTRANTS:................................................................................4
BARGAINING POWER OF BUYERS:........................................................................4
BARGAINING POWER OF SUPPLIERS:...................................................................4
CATEGORY RIVALRY:........................................................................................... 4
PRESSURE FROM SUBSTITUTES:...........................................................................4
ENVIORNMENTAL ANALYSIS:.................................................................................... 5
POLITICAL FACTORS:........................................................................................... 5
ECONOMIC FACTORS:.......................................................................................... 5
SOCIAL FACTORS:................................................................................................ 5
TECHNICAL FACTORS:......................................................................................... 5
LEGAL FACTORS:................................................................................................. 5
BCG MATRIX OF BHARAT CANNING COMPANY LIMITED............................................6
CONCLUSION........................................................................................................... 7
REFERENCES........................................................................................................... 7

INTRODUCTION:
Bharath Canning Company Limited is Public incorporated on 10 February 1949. The company
type is Unlisted Public Company with four owners/directors: Darambala Shridhar Shenava,
Jyothi Shridhar Shenava, Kalavar Narayan Shetty, Vasanthi Govinda Shetty.
It is classified as Non-Government Company and is registered at Registrar of Companies,
Bangalore. The Company factory is set up in Kaup, Udupi. The company is into the FMCG food
manufacturing and canning industry. The company is 68 years old and has its customers in the
domestic market as well as international market. They have gained the experience and skills to
produce and deliver the finest food products in a convenient way. The ship their canned food
products to international markets.
Bicco is a perfect mixture of passion for fruits, human skills and latest technology. Quality
products have always been and will always be the strength of Bicco. Bicco also has a
modernized manufacturing plant which is situated 30 minutes from the airport and sea port. The
manufacturing unit is situated in the west coast of the country which produces some of the most
delicious fruits in the world.

MISSION
We at Bicco Foods are committed to produce high quality nutritious food products for our
customers in a convenient way at a competitive price.

PRODUCT LINE:
There are 2 trademarks for the company for the different product lines
BICCO

Class: 29 applied on date 19 January 2010

Goods and Services Description : Canned and bottled fruit and vegetable products and ready to
serve beverages, meat, fish, poultry, meat extracts, preserved, dried and cooked fruits and
vegetables jellies, jams, fruit ,sauces ,eggs, milk and milk products ,edible oils and fats

BIKOJOY (LABEL) Class : 32

Goods and Services Description: Mineral and aerated waters, and other non-alcoholic drinks
and beverages syrups and other preparations for making beverages.
CATEGORY ATTRACTIVENESS ANALYSIS:

The category attractiveness analysis analyzes the market based on the following characteristics.

AGGREAGATE CATEGORY ANALYSIS:

In the aggregate category the product is analyzed based on the category size, category growth,
Stage in the product life cycle, sales cyclicity, seasonality and profit.
CATEGORY SIZE:
Indias food processing industry accounts for 32% of the Indian food market. This industry is
mostly dominated by the ready to eat segment since 90% of the sales are for packaged foods.
This industry contribute around 1.3-1.5% of the total GDP of the country. The canned and
processed food are mainly export oriented .Since India is a rich agriculture resource based
country with strategic location and proximity for exporting , the government as part of the makein-India program is promoting investment in food processing as one of its agendas. The diversity
in the climate produces a variety of crops and many of its produce have achieved worldwide
popularity Food processing industry is one of the major employment intensive segments
contributing to 11.69% employment. The sectors that use food processing are Dairy, Fruits &
Vegetables, Grains & Cereals, Fisheries, Meat & Poultry, Consumer foods

CATEGORY GROWTH:
The growth in the food processing industry is noticed due to the rapid urbanization of India and
also the growth in population. Changing food habits and lifestyles coupled with enhanced
government support like

Infrastructure focus
National Mission for Food Processing
Financial support in terms of subsidy
Changing demographics and rising incomes
Entrepreneurship Development Programme
Food Processing Training Centres
Training at recognised institutions at State/National level

100% subsidy in the food manufacturing sector Bharath Canning Company Limited is involved
in both domestic as well as international business. This shows that the market has grown in the
international platform as well. With the growing demand for consumer goods, the demand for
processed foods also is increasing. According to data provided by the Department of Industrial
Policies and Promotion (DIPP), the food processing sector in India has got an amount of 6.82
billion dollars worth of Foreign Direct Investment (FDI) during the period April 2000-March
2016. The Confederation of Indian Industry (CII) estimates that the food processing sectors have
the potential of attracting around 33 billion dollars of investment over the next 10 years and also
generate employment of nine million person-days.

STAGE IN THE PRODUCT LIFFECYCLE:

There are 5 stages in the product lifecycle. The development stage, introduction stage, growth
stage, maturity stage, decline stage. The product is in the development stage at the initial part of
its life cycle. The introduction stage is where the category size is small and category growth is
low. The growth stage is where the category size is moderate and category growth is high. The
maturity stage is where the category size is large but the category growth is low. The decline is
when the category size is moderate and category size is negative.
The canned processed foods have passed through development and introduction stage. It is in the
growth stage where the demand for a variety of processed foods is increasing gradually. The
demand for the canned and processed food is increasing not only in domestic market as well as
international market.

SALES CYCLICITY:
The main consumers of Bicco processed food products are the local population. The demand for
Bicco foods is increasing among local vendors and the rest of the consumption is for exports to
different countries like key export destinations .USA is the favorite destination of processed foods
from India. Vietnam, Saudi Arabia, Iran, and UAE are the other major destinations for Indian
exports export of agro and processed foods among others.
According the information from Bharath Canning Company Limited their sales has shown
variation of about 15 to 19% every year.
The sales of the food processing industry is estimated to reach around $121 billion in the year
2012 which is a 32% of the total market. The sales cyclist of canned processed foods demands
majorly on the consumer goods
SEASONALITY:
Since canned processed foods are used majorly by FMCG manufacturers the foods are present
round the season and are always there. Since the demand for FMCG products is high, the
processed foods are also seen to have a high demand.
PROFITS:
The profits in the processed foods industry is good because of there exists a high demand for the
products round the clock. The profits for Bharath Canning Company Limited has been
approximately 10.2% of the turnover each year.
CATEGORY FACTORS:

The category factors helps in analyzing the structure of the industry by evaluating Porters five
dimensions. They are Threat of new entrants, bargaining power of suppliers, bargaining power of
buyers, category rivalry and pressure from substitutes.
THREAT OF NEW ENTRANTS:
The threat from new entrants in the food processing industry is high. Udupi is geographically a
smaller region and the threat from new entrants is more. The switching cost for buyers is less in
the packaging industry till the companies meet the needs of the buyers. New entrants like
Patanjali and Paperboat is posing as a threat to the existing companies. The capital requirements
for food processing industry is more which reduces the attractiveness of the company. Hence we
can say that Bharath Canning Company Limited has high threat of new entrants.
BARGAINING POWER OF BUYERS:
The bargaining power of buyers is high because the cost involved in purchasing the processed
food is high. The buyers have full information about the product and their requirements. It
becomes easier for buyers to have power over the manufacturers. The number of substitutes in
are increasing hence this increases the bargaining power of the buyers.
BARGAINING POWER OF SUPPLIERS:
The company manufactures canned processed and they do not have a substitute so the bargaining
power of suppliers is high. Since the number of manufacturers in canned food processing are
increasing, the suppliers have a larger market and hence the suppliers can easily shift to another
company to supply.
5

CATEGORY RIVALRY:
The rivalry among the competitors is very high. The number of processed foods manufactures in
manufacturers in Udupi, Manipal and Mangalore are high and hence the rivalry among
competitors is high. The rivals for Bharath Canning Company are not only other local food processing
companies but also established FMCG companies like ITC and global players like Mondelez, Del Monte
Foods.

PRESSURE FROM SUBSTITUTES:

The good processing is going through a lot changes and pressure from substitutes. The number of
substitutes for these products are increasing rapidly. Use of cheaper low quality food products for
lesser price. Hence the pressure for such food processing and canning companies is high.

ENVIORNMENTAL ANALYSIS:

The environmental analysis is based on the following

POLITICAL FACTORS:
The political factors that affect the sales of Bharath Canning Company Limited are employment tax,
tax policy, government stability, import restrictions on quality and quantity. These factors highly
influence the sales of processed canned foods in India.
ECONOMIC FACTORS:
The economic factors that affect the processed foods are loans, interest rates, unemployment, and
the purchasing power of customers and the increasing economic growth.
SOCIAL FACTORS:
The processing and canned food industries face environmental issues like recycling, pollution
regulation, and the corporate responsibility towards the society would affect in issues with the
material consumption Environmental impact like waste discharge, air pollutants etc. regulations
related to these factors need to be kept into consideration.
TECHNICAL FACTORS:
With the availability of the latest innovative technology in the present scenario the company
needs to be updated with the recent technical innovations. Any change in the technical factors
affects the sale of the processed food. Most of the times the buyers are well informed with the
new technologies and processes and expect the company to use them in the processing of canned
foods.

LEGAL FACTORS:
Legal factors that affect the sale of canned processed food may be the regulation on the export of
the products and the supply rules which are present in other states, the intellectual property law
imposed by the government, Environmental protection act. Legal factors mostly affects the sales
of dairy and milk products

BCG MATRIX OF BHARAT CANNING COMPANY LIMITED

QUESTION MARK
Processed Peas
Fruit pulps and
slices

STAR PRODUCTS
Natural Fruit Juice
-Natural Alphanso
Mango Drink
Fruit squash and
Crush

BICC
O
CASH COWS

Natural Fruit
Juice -Natural
Alphanso Mango
Drink
Fruit Jams
Pickles

DOGS
Fruit Juice in cans

The Bicco Stars which have high growth and high market share are mainly the natural fruit juices
especially in the alphonso mango flavor and the fruit squash and crushes which are available in
different flavors. They use and generate a large amount of cash for the company.
The Bicco Cash Cows which have low growth but high market share are once again the
Alphonso mango drink and the fruit jams in different flavors .There are also pickles which
generate a lot of sales.
The Bicco Dogs which have low growth and low market share are the fruit juice in cans since
consumers do not prefer here fruit juices in cans and would rather have them in tetra packs
The Bicco Question Marks have high growth but low market share since products like frozen
peas and fruit pulps nd slices are not most commonly used in local markets. They have a huge
8

potential in export countries and that is the reason that though they have high growth potential
they still have low market share.
CONCLUSION

Given the present market situation of Bharath Canning Company Limited where there are new
companies coming up it would be beneficial for Bicco to launch new products to strengthen its position. It
should also improve its volumes by introducing new variants of existing products.
REFERENCES
(https://3ci.in/8-company/482176-bharath-canning-company-limited-u85110ka1949plc001062, n.d.)
(https://www.zaubacorp.com/company/BHARATH-CANNING-COMPANYLIMITED/U85110KA1949PLC001062, n.d.)
(http://companydata.in/bharath-canning-company-limited/518304.py, n.d.)
(http://www.ibef.org/industry/indian-food-industry.aspx, n.d.)
(http://www.makeinindia.com/sector/food-processing, n.d.)
(https://www.quickcompany.in/trademarks/372141-bikojoy-label, n.d.)
(http://informix.in/bharath_canning_company_limited_bangalore/190761/, n.d.)