A STUDY ON CUSTOMER BEHAVIOUR AND COMPETITOR ANALYSIS TOWARDS

BRITANNIA CREAM BISCUITS IN COIMBATORE

CHAPTER-1

INTRODUCTION

This research is to study about the study on customers’ expectations and customer engagement
level towards Britannia cream biscuits, which is consumed by people of all ages but focusing the
young as they are more into snacking. The analysis is all about customer expectation of these products
based on different variables like price, quantity, quality, advertisement, satisfaction, taste, packaging,
brand loyalty, etc. Also, how customers’ expectations and feel about these products and their
competitor products, and also the service, margin, etc given by these and competitor products, and
finally to do a category killer analysis to find out where the gap exists in these areas and to give
valuable suggestions as an intern.

All of the marketing processes starts at one point - the consumer. So every consumer is a very
important person to a marketer. Consumer basically decides on what to purchase, when to purchase,
for whom to purchase, why to purchase, from where to purchase, and how much to purchase. In order
to become a successful marketer, one must understand the minds of a customer, their liking or
disliking towards each and every product. He must also know the time and the quantity of a product
a consumer may purchase so that he can store the goods or provide the services according to the
likings of the consumers. Gone are the days when the concept of the market was to let the buyers
beware or when the market was mainly the seller's market. Now the whole concept of consumer’s
sovereignty prevails. The manufacturers produce and the sellers sell whatever the consumer likes. In
this sense, the consumer is supreme in the market.

Also, since my study is about the Modern trade in specific, importance to a consumer is the key
because it is all about impulse buying, touch and feel, and consumer decision rather than a customer‘s
decision.

Britannia, a maker of biscuits, cakes, bread, and dairy products, is considering repositioning the brand
as a foods company and diversifying its revenue streams. The 100-year-old company has traditionally
earned a majority of its revenue through the sale of biscuits. As part of the recent business strategy,
it launched milk-based drinks and yogurts, besides cream wafers, salty snacks, and croissants. India‘s
biscuit market is estimated to be worth ₹ 30,000 crore.
But over the long-term, biscuits, as a category, may struggle to expand significantly given the
changing consumer preferences. Britannia is, therefore, looking to diversify its portfolio with dairy,
bread, rusks and macro-snacking products.

ABOUT THE COMPANY

Britannia Industries is one of India‘s leading food companies with a 100 year legacy and annual
revenues in excess of Rs. 9000 Cr. Britannia is among the most trusted food brands and manufactures
India‘s favorite brands like Good Day, Tiger, NutriChoice, MilkBikis and Marie Gold which are
household names in India. Britannia‘s product portfolio includes Biscuits, Bread, Cakes, Rusk, and
Dairy products including Cheese, Beverages, Milk, and Yoghurt. Britannia is a brand which many
generations of Indians have grown up with and our brands are cherished and loved in India and the
world over. Britannia products are available across the country in close to 5 million retail outlets and
reach over 50% of Indian homes.

The company‘s Dairy business contributes close to 5 percent of revenue and Britannia dairy products
directly reach 100,000 outlets.

They have a presence in more than 60 countries across the globe. Our international footprint includes
the presence in the Middle East through local manufacturing in UAE and Oman, are the No 2 biscuit
player in UAE with a strong contention to leadership and have a similarly strong market position in
the other GCC countries. They are also the market leaders in Nepal and are in the process of investing
in a manufacturing facility in the country.

Their footprint spreads across North America, Europe, Africa, and South East Asia through exports
and we are investing in a state- of- the- art facility in Mundra SEZ, Gujarat, to service the exports
markets.

Their strategic expansion plan is based on the principle of ―One new market a year‖. They plan to
expand through local operations in Africa and South East Asia in the coming year.

Britannia takes pride in having stayed true to its credo, Eat Healthily, Think Better‖. Having removed
over 8500 tonnes of Trans Fats from products, Britannia became India‘s first Zero Trans Fat
Company. Over 50% of the Company‘s portfolio is enriched with essential micronutrients which
nourish the body.
Britannia Industries Ltd. (BIL) is aiming to generate ₹ 500-crore turnover from three new non-biscuit
snack products it launched recently.

Treat Croissant, a center-filled snack made under a joint venture with Greek company Chipita, he
said, ―The new products are cream-wafers, salted snacks, and croissants. The company is trying to
increase the share of non-biscuit segments in its turnover. While biscuits account for about 70% of
BIL‘s turnover, non-biscuit products such as cakes, rusk, bread, and dairy have a share of about 23%.

Cream wafers have been a semi-organized business for a while. There is only one major name -
Pickwick - and a few local brands. Also, it is not an advertised category and consumers pick it up
from experience. To make it a part of the family purchase basket, the parent also has to be convinced.

Also, there is a lot of awareness among today's children and they are some of the fastest changing
consumers. Unlike the cream wafers from a couple of decades back, today's teen has a host of other
options to choose from.

While there don‘t seem to be much competition, one of the primary challenges would be market
creation. There isn't a huge market for the product and that's why all the major players have stayed
away. This has its own challenges as there is no proven strategy in place.

Britannia entered the Rs 24,000 crore per annum salty snacks market, which is dominated by
Haldiram‘s and Pepsico. It launched salty snacks under its existing brand Time Pass as part of a
strategy to expand to non-biscuit segments.
Incidentally, croissants will be Britannia‘s big bet. The company has launched croissant in two flavors
— vanilla and chocolate. The company has entered into a 60:40 JV with Chipita of Greece. Around
₹ 100 crore has been invested to set up a new line at the Ranjangaon unit near Pune in Maharashtra.

Market sources say the business could be a ₹ 200-250 crore segment for Britannia in 2-3 years. But,
a

Category market needs to be created first. Incidentally, there are no major national players in the
segment.

―Croissant is a new market that we are building on, rather creating. However, they have, in the past,
created markets for rusks and cakes. In fact, the company has opted for two flavors to flag-off the
category while the greater focus will be to build the market.

The company has also set up the Britannia Nutrition Foundation in 2009 and began working on a
public-private partnership to address malnutrition amongst underprivileged children and women.
EVOLUTION OF BRITANNIA

1892- A humble genesis was made to manufacture biscuits in a small house in Central Calcutta, with
an investment of Rs.295.

1897- The business was acquired by Gupta brothers who moved operations to Dum Dum in Calcutta
under the name of V.S. Brothers.

1918- Mr. C. H. Holmes, an English businessman, partnered with Gupta Brothers. Britannia was
incorporated on the 21st of March 1918 as a public limited company under the Indian Companies Act
VII of 1913.

1921- Britannia obtained priority certificate to import new machinery. It became the first company
east of the Suez Canal to use gas ovens.

1924- New factories were established in Mumbai and Calcutta. Britannia became a subsidiary of
Peek, Freon & Company Limited, a leading biscuit company in the UK.

1935-45- During World War II Britannia diverted 95% of its production for manufacturing service

biscuits for soldiers.

1954- High quality sliced and packaged bread was pioneered and launched in Delhi.

1979- On 3rd October, the Company was re-christened from Britannia Biscuit Company Limited to
Britannia Industries Limited.

1983- Sales crossed the Rs. 100 crore milestone.

1992- Britannia celebrated its Platinum Jubilee and launched

`Little Hearts‘. 1993- The Wadia Group acquired a stake in ABI Holdings Limited (ABIH), United
Kingdom and became an equal partner with Group DANONE in BIL. Brand„50-50‟ was launched.

1997- „Eat Healthily, Think Better‟ became the new corporate mantra. Britannia entered the dairy
business. „Tiger‟ biscuits were launched. ―Jim Jam‖ and ―Checkers‖ were launched.

2000- Forbes Global ranked Britannia among the Top 200 small companies. Britannia was ranked
No.1 food brand of the country. Britannia Lagan Match was India‘s most successful promotional
activity of the year.
2002- Britannia formed a joint venture with Fonterra, the world‘s second-largest dairy company and
Britannia New Zealand Foods Private Limited was born.

2005- Brand Tiger‘s re-birth was marked by the slogan ―Swath Khao, Tiger Ban Jao‖, which
became a popular chant. Britannia launched „Greetings‟ a range of assorted gift packs. Britannia

―50-50 Peppershaker‖ was launched.

2007-in a survey conducted by AC Nielsen ORG-Marg and published in the Economic Times,
Britannia was rated the No.1 MOST TRUSTED FOOD BRAND. It also ranked as No.1 Brand in
Metros across all categories.

2007- Britannia Industries formed a joint venture with the Khimji Ramdas Group and acquired a 70
percent beneficial stake in the Dubai-based Strategic Foods International Co. LLC and 65.4% in
Oman based AlSallan Food Industries Co. SAOG.

2008- Britannia launched Iron fortified ―Tiger‖ biscuits, ―Good Day Classic Cookies‟, Low Fat
Dahi and renovated ―MarieGold‟.The story of one of India's favorite 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 mechanized 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. 100crores revenue mark. On the operations
front, the company was making equally dynamic strides. In 1992, it celebrated its Platinum Jubilee.
In 1997, the company unveiled its new corporate identity - "Eat Healthily, 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 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 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.

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 strong management at the
helm means Britannia will continue to dream big on its path of innovation and quality. And millions
of consumers will savor the results, happily ever after.

PARENT GROUP

Britannia's controlling stake is joint with Groupe Danone and Nusli Wadia. Groupe Danone is
one of the leading players in the world in bakery products business. It acquired an interest in Britannia
Industries in 1989 and acquired a controlling stake in 1993. Nusli Wadia group is one of the leading
industrial houses in the country, with interests mainly in textiles and petrochemicals.

Britannia's plants are located in the 4 major metro cities - Kolkata, Mumbai, Delhi, and Chennai. A
large part of products is also outsourced from third-party producers. Dairy products are outsourced
from three producers - Dynamix Dairy based in Baramati, Maharashtra, Modern Dairy at Karnal in
Haryana, Thacker Dairy Products at Howrah in West Bengal.

The seeds of success are rooted in a variety of factors. Britannia has an excellent distribution network
of over 100 stock- keeping units, 3000 employees, over 1500 authorized whole-sellers, 53 depots,
and 46 factories. Britannia sells around 1.50 lakh tonnes of biscuits, over 4500 tonnes of bread and
cakes and 3,000 tonnes of dairy products. Britannia products are sold in over 2 million outlets,
reaching millions of consumers who buy approximately 2.4 billion packs every year.

Throughout its existence, Britannia has operated on the principle of providing products to the
consumer that are healthy and tasty. This is brought about by the use of high-quality ingredients with
a strong focus on ―naturalness‖ and modern manufacturing practices. The company today has a wide
range of bakery products in the biscuit, bread and cake segments. With its pioneering role in the
bakery sector, Britannia‘s products are today has excellent value wholesome and hygiene products
for the consumer. However, Britannia sees its role as being larger than just this. The company has a
commitment to the health of Indian masses, and this commitment is especially strong in the context
of children.

Britannia brand name has always stood for good wholesome food values. Britannia is the epitome of
health, hygiene, and nutrition. It has undergone a change, which is truly comprehensive in nature.
The dynamic new motto ―‖ EAT HEALTHY, THINK BETTER‖ is designed to capture the very
essence of purity, energy, and freshness, implicit in all its food products along with the existing
products they have also expanded their portfolio with the introduction of Britannia cheese and cheese
spreads, Britannia butter and Britannia dairy whitener. All of which has already created quite a Stir
in the market.

Today, after over seven decades of being an inseparable part of life in India, Britannia is now set to
usher its customers into a healthier and tastier future.

PRINCIPLES AND POLICIES OF THE COMPANY:

Derives from the company mission, vision, and cherished values.

Build a stronger bond between people.

Generating motivation to excel.

Enabling continuance learning and renewal of skills.

Providing opportunities to perform and the potential to grow.

MISSION OF THE COMPANY:

―To dominate the food and beverage market in India through a profitable range of tasty yet healthy
products.‖

Regarding the basis of setting the mission and vision statement, Britannia gives topmost priority to
customer satisfaction, followed by quality, market leadership, increased profit variety, sales turnover,
and profit maximization.

Our markets are poised for exciting times. As a successful organization, we must not only keep pace
with consumer expectation but also anticipate them. Our new identity is to lay the base to protect our
future as a successful 'food' company, a company that provides high quality and tasty, yet healthy
foods and beverages".- Chairman
MARKETING MIX OF BRITANNIA

The marketing mix of Britannia discusses the marketing mix strategy of Britannia Industries
Limited (BIL), which is a market leader in the Indian bakery and biscuit market. Established in March
1918, it has steadily grown and secured itself as one of the heavyweights of India. Its portfolio of
brands includes Tiger, Good Day, Marie Gold and 50:50. It became the first company in the East to
use imported gas ovens, and as a business, flourished and began to acquire its reputation for quality
and value. Installing automatic plants in Calcutta and Mumbai helped to increase production, and a
number of small takeovers strengthened the company‘s position. In 1997 the company had a mission
change and identified a ―eat healthily, think better‖ strategy as one they intended to pursue. In the
same year, they joined the dairy product market, and released a string of snacks, with this philosophy
in mind. Dairy products account for around 10% of the company‘s revenue.

From 1998-2001, the company‘s operating profits were 18%, as sales grew at a compound annual
rate – against the market – of 16%. More recently, BIL has been seeing the growth of around 27%
per year, compared to the industry growth rate of about 20%.

Product

BISCUITS DAIRY BREADS RUSK

CAKES
Good Day Cheese Butter White Premium Bake
Bar Cakes
Marie Ghee Curd Sandwich Suji Toast
Chunk Cake
Milk Breads Maska Rusk
Nutri choice Cup Cakes Veg.
Tiger Dairy Whitener Whole Wheat cakes
50-50 Gourmet Breads
Nut & Raisin
Bourbon Milk Cheese Honey & Oats Romance
bikis Treat Nice Actimind
time BreadS Muffills
Little hearts Multi-Grain
cookies Pure Breads Multi-
Magic Time Pass Fiber Bread
 BIL offers a wide variety of edible goods. Bakeries set up in the 1960s at various locations around
India ensured a constant supply of fresh bread, and as the company began distributing biscuits from
other smaller companies it had taken over, they started to manufacture and release their own biscuits.
Their main products include bread, biscuits, cakes, rusk, and dairy products. They have continued to
release a steady flow of products over the years, for example, fruit bread, or the dairy product
half/half. 90% of their revenue, however, comes from biscuit manufacturing. Their combined factory
capacity is some 433,000 tonnes per year. In 2006, the Tiger brand part of the company achieved total
sales of $150 million. BILs present annual revenue is around Rest 22 billion, nine-tenths of which is
generated through biscuit sales.

Price

Competitive Pricing is the sole pricing strategy which Britannia uses. Parle is one of the major
competitors of Britannia and in that, Parle G has remained unbeatable for decades. In dairy, Amul is
a strong competitor for Milk, Cheese, and other dairy-based products. In bakery products, you will
find local competition as well as Wonder Cakes and other veg cake makers who have their own line
of products. To stay above all of them, Britannia adopts a competitive pricing strategy. Thus,
Britannia products are much better in quality and are good in price as well. The pricing strategy along
with distribution has been so strong, that people buy these products even on Railway stations and
while traveling, instead of buying local snacks
Place

The company was built up and was known for many years as the Biscuit King. Britannia currently
has an estimated 38% of the market share. The company has also invested in its dairy products, and
in 2001 announced a joint venture with the New Zealand Dairy, allowing it to produce cheese and
butter amongst other things. The company distributes its goods up and down the length and breadth
of India. In 2007 BIL agreed to a joint venture with the Khimji Ramdas Group and acquired a 70%
beneficial stake in the StrategicFoods International Company based in Dubai. The company has been
voted one of India‘s 100 most trusted companies, as listed in the Brands Trust Report. For
distribution, Britannia follows the FMCG channel of distribution wherein it appoints distributors at
select locations. These distributors are then responsible for handling dealers and retail showrooms.
Modern trade channels like big bazaar and D mart as well as others are handled directly by the
company. The distribution channel follows breaking the bulk wherein large amounts are transferred
from the factory to C&F, from C&F to distributor and then forward to retailers and dealers. The
distribution in urban areas is fantastic with Britannia being present almost everywhere. However, the
rural penetration of the company is still less because of the challenges of distribution in a rural area.

Promotion

The strongest asset for the promotion of Britannia products is the product itself. The products are
tasty and people like it. Thus, a pull is created directly by the product. However, today, no company
can exist without promotions and advertising. Same as in the case of Britannia as well. However, the
advertising spends on Britannia are controlled because of the brand equity of Britannia products and
the presence of the brand for almost a century in the Indian market.

The company uses most of the usual methods of advertising, including billboards, magazines, TV
ads and point of purchase advertising. In November 2012, BIL hired Salman Khan to endorse its
Tiger range of products. The popular Bollywood actor promotes the core values of the Tiger brand
range because of his own dashing style and personality. Britannia has high advertising spends on
products like Good day and Bourbon which are almost stars for the Britannia brand. However, the
investment for the marketing of Dairy products is minimal because a lot of expenses have to be done
for the distribution of the products. Britannia has enough brand and clout in the market, because of
its constant presence in the last few decades, that its product receives a natural pull from the market
 C&FA
suppliers Manufacturer
(DISTRIBUTOR)

RETAILER STOCKLIST

OVERVIEW OF INDUSTRIES
 Fast moving consumer goods (FMCG) are the 4th largest sector in the Indian economy. There are
three main segments in the sector – food and beverages which accounts for 19 percent of the sector,
healthcare which accounts for 31 percent and household and personal care which accounts for the
remaining 50 percent.

The FMCG sector has grown from US$ 31.6 billion in 2011 to US$ 52.75 billion in 2017-18. The
sector is further expected to grow at a Compound Annual Growth Rate (CAGR) of 27.86 percent to
reach US$ 103.7 billion by 2020. The sector is projected to grow by 11-12 percent in 2019. It
witnessed a growth of 16.5 percent in value terms between June–September 2018; supported by
moderate inflation, increase in private consumption and rural income. It is forecasted to grow at 12-
13 percent between September–December 2018. FMCG‘s urban segment is expected to have a steady
revenue growth at 8 percent in FY19 and the rural segment is forecasted to contribute 15-16 percent
of total income in FY19. Post GST and demonetization, modern trade share grew to 10 percent of the
overall FMCG revenue, as of August 2018.

Accounting for a revenue share of around 45 percent, the rural segment is a large contributor to
the overall revenue generated by the FMCG sector in India. Demand for quality goods and services
have been going up in rural areas of India, on the back of improved distribution channels of
manufacturing and FMCG companies. The urban segment accounted for a revenue share of 55
percent in the overall revenues recorded by the FMCG sector in India.

FMCG Companies are looking to invest in energy efficient plants to benefit society and lower
costs in the long term. Patanjali will spend US$ 743.72 million in various food parks in Maharashtra,
Madhya Pradesh, Assam, Andhra Pradesh, and Uttar Pradesh. Dabur is planning to invest Rs 250-
300 crore (US$ 38.79-46.55 million) in FY19 for capacity expansion and is also looking for
acquisitions in the domestic market. Investment intentions, related to FMCG sector, arising from
paper pulp, sugar, fermentation, food processing, vegetable oils and vanaspati, soaps, cosmetics and
toiletries industries, worth Rs 916.13 billion (US$ 15.55 billion) were implemented between January–
December 2018.

Growing awareness, easier access, and changing lifestyles are the key growth drivers for the
consumer market. The focus on agriculture, MSMEs, education, healthcare, infrastructure and tax
rebate under the Union Budget 2019-20 is expected to directly impact the FMCG sector. These
initiatives are expected to increase the disposable income in the hands of the common people,
especially in the rural area, which will be beneficial for the sector.
 New players have entered the market at the national level and the regional level, making the
industry dynamic and very competitive. Aggressive pricing activity, trade, and consumer promotions
have pulled down the overall pricing power of the brands in the market. This needs to be managed
through strong margin management measures in order to sustain profitability in the industry.

The per capita consumption continues to grow across all age groups and socio-economic strategies.
Biscuits continue to maintain their position as one of the most widely distributed and available
packaged food categories in India. 38% of the total volume comes from the rural markets through
this number varies by type of biscuit, with glucose being the most widely distributed in rural markets
at 50% overall sales. The market has also migrated towards bulk and family packs that offer better
value for money on a per kg basis. Though the profit margin made on FMCG products is relatively
small (more so for retailers than the producers/suppliers), they are generally sold in large quantities;
thus, the cumulative profit on such products can be substantial. FMCG is a classic case of low margin
and high volume business.

There is a significant market of biscuit in India. The industry has flourished in India immensely
over the years and is still growing remarkably. The 12,000 crores biscuit industry provides an
enormous opportunity for growth in India.

The biscuit industry has emerged in later parts of the 20th century and now it has become the most
loved snack enjoyed by every age group. The variations in the biscuits like cholesterol free, healthy,
tasty and easiness to carry at a reasonable cost have attracted lots of people making the industry grow
at a larger pace.

Consumers even prefer higher value products and low-cost branded products over unbranded items
as their disposable income has become high. And keeping all these points in view, the manufacturers
are providing the best products at lower costs.

The industry has several players, the topmost being the Britannia and Parle which accounts for
70% of the industry‘s volume and revenues. Other companies dealing in this sector include Sara,
Heinz,
Excelsia (Nestle), SmithKline Consumer, United Biscuits, Brakeman‘s, Champion, Kwality and
Priya.
Source: Business today

The regulation of Biscuit industry in India is done by FBMI (Federation of biscuit Manufacture of
India) which is the apex body for the industry. IBMA (Indian Biscuits Manufacturer Association) is
also a body regulating and promoting biscuit industry in India. Their main objective is to protect the
interests and development with a systematic and hygienic Biscuit manufacturing Industry in India.

Biscuits have a huge demand all over India with maximum consumption in Maharashtra and West
Bengal. The biscuits even have a substantial amount of exports. After 2005, India is the third largest
producer of biscuits in the world. In the recent past, the growth in the industry has been stagnant.

The volume of biscuits has increased to 12-15% over the last few years, in last year it has fallen to a
single digit which is not a good sign. There are many factors which have slowed down the rates.
These include the price hikes due to inflation, late monsoon rains, unacceptable expensive and
exposure of new biscuits in the rural market are the few reasons. The rural grew faster than urban
areas in the last few years but the demands of the rural population in the last two year have slowed
drastically.

To sustain in the field with future growth prospects many players are trying to innovate various
options. Glaxo SmithKline is promoting Horlicks. It is trying to make it stand for various breakfast
products & biscuits. the other companies like ITC top in cream biscuits while Britannia tie-up with
Kotak results into benefit from improvements in its manufacturing efficiency and distribution and
better profitability. Thus, companies are taking prominent steps to growth and become industry
leaders.

If monsoon rains do not pick up soon the rural spending would be much on the items like biscuits
and so the demand may still fall. And if the inflation grows not keeping up the pace with the income
of the marginal consumer, it will again slow down the demand. But if the environment and the
economic factors remain stable the biscuit industry will show potential growth in the future years.
The Indian market is still largely un-penetrated and so there is a scope for growth. It will gear up
aggressively in the future years.

ACHIEVEMENT OF THE INDUSTRIES

Britannia is synonymous with the rise and growth of the biscuit industry in India. Throughout this
process, it has displayed an uncanny intuition about emerging popular tastes for biscuits. This
foresight, coupled with the will to innovate and evolve new products, has been the impetus that has
propelled the Britannia brand ahead of the rest. Being the market leader, Britannia Industries operates
under an underlying principle of setting its own rules and standards that have almost always become
the adopted paradigm for the entire biscuit industry.

MODERN TRADE:

In the last two years, growth in modern trade (MT) sales has increased substantially with multiple
changes in trade and policy environment.

Demonetisation and GST were important policy factors that contributed to the modern trade in the
last few years.

When the history of Indian modern trade is written, 2018 will be remembered as the year in which
this channel breached the double-digit mark in terms of contribution to total FMCG sales.

While 10 percent is still much below other Asian peers like Indonesia, China, Thailand, Malaysia and
Philippines, it‘s the recent pace of growth and the imminent promise it holds for the future that has
all the stakeholders excited.
Demonetization and GST

In the last two years, growth in modern trade (MT) sales (include including brick and mortar retail
banners, standalone MT outlets, and eCommerce) has increased substantially with multiple changes
in trade and policy environment.

Demonetisation and GST were important policy factors that contributed to the modern trade in the
last few years. This, coupled with new stores being added along with the companies‘ focus on
improving same-store sales growth has led to sustained growth in MT. The Street has definitely taken
note of that and we‘ve seen a manifold increase in the listed retail stocks since 2017.
The Evolution of the Customer

With increasing universe along with favorable policy changes, consumer preference itself has
witnessed a slight tilt towards modern trade. A small nudge but a giant leap, as consumer behavior
experts would say because among the most difficult things to change in the world is consumer
behavior.

The only thing stickier than the way consumers shop for household goods is ―Fevi-Kwick.‖ People
are buying more, people are buying more on important days, and people are buying more than ever
before, on big days.
Walmart‘s $16 billion acquisition of Flipkart was the biggest deal in the e-commerce-retail space
ever. This deal is a testament to all that I‘ve mentioned above – accelerating pace of modern trade,
huge potential for modern trade in India, expanding the universe, evolving customer habits and the
future of omnichannel retail, this deal is it. The world‘s biggest offline modern retailer buying India‘s
largest online retailer is just a trailer of India‘s modern trade potential.

―Indian retail as an opportunity is phenomenal. It is unique in terms of three things constantly

working and intersecting with each other. A) Large populations and phenomenal
urbanization/agglomeration towards large cities. B) A deep, vibrant and well entrenched
entrepreneurial spirit among Indian traders. C) A strong affinity towards MRP understanding even
among the least literate masses of the country," Neville Norohna told CNBC-TV18 on October 29.

Today, many Indian consumers can‘t imagine life without the convenience of Modern Trade (MT).
In fact, even when the term MT was coined back in the late 90s, it was expected that the nascent
organized retail format would steadily fuel economic growth in the future. In spite of a great start,
impediments like poor infrastructure slowed the sector down, particularly in the financially trying
period between 2008 and 2016. While new players and formats were seen in the market between the
end of 2015 and through most of 2016, it was a time of deliberation, deep contemplation and
consolidation.

The MT landscape in India comprises both local and national brands, which consists of chains and
strong independent stores. Together, there are about 600 MT banner stores in India, with the top 20
contributing to ~75% of the business. According to Nielsen estimates the total number of organized
stores is ~18,197, of these, 11,758 are banner stores. Such stores have grown by 19% as of MAT
August 2018, is a clear indication of the burgeoning size of MT as a channel. Data reveals that
supermarkets grew by a sizeable 25%, while hypermarkets grew by 15% in comparison in the same
timeframe. The number of modern trade stores in small towns of less than 100,000 population has
also seen a sizeable increase, growing three times faster as compared to metros.

Of the 90 FMCG categories tracked, 43 of them have a higher MT contribution and makeup almost
70% of total MT sales. Categories like Cheese, Breakfast Cereals, Packaged Rice, Hand-wash/ Body
wash and Olive Oils have a much higher MT contribution, to the tune of 50%. Geographies aside,
analysis of seasonal trends reveal that big sale events in January, May, August and during the festival
of Diwali are a huge draw for consumers, taking the MT contribution to 17% from 15%. Categories
like Washing Powders, Chocolate, Salty Snacks, as well as large packs of Packaged Rice, Diapers,
Packaged Tea and branded packs of Deodorants are a big part of shopping baskets during events.
 CHAPTER-2

REVIEW OF LITERATURE

 According to Mittal and Kamakura (2001) also address the link between satisfactions
and repurchase behavior. Their major findings indicate that despite identical rating on
satisfaction, due to respondent characteristics such as age, education, marital status
and area of residence, significant difference was observed in repurchase behavior. Over
the past decade, retailers use manufacturer brands to generate consumer interest,
patronage and loyalty in a store.
 (T. Ravi chandran, and G. Arumugasamy 2013) the researcher indicated that the
majority of the milk consumers prefer fresh milk. There is the high demand for Arogya
milk in Nagercoil town and it is a positive sign for Local and National brands. They can
promote their products by effective advertising, improved quality and by keeping a
check on the price.
 A world-wide study conducted by Nielsen N.V. (2014) found that environmentally
conscious consumers believe it is very important that snacks include ingredients that
are sourced sustainably (35%), are organic (34%) and use local herbs (25%). Further,
respondents around the world care about the absence of ingredients than the addition
6of them. Astudy by Boobier et al (2006) confirmed that traditional high-fat and high-
sugar biscuits can be modified to produce a healthy alternative that can be
manufactured under strict commercial conditions. The modified biscuit (Addition of
Vitamin B6, B12, Folic Acid, Vitamin C, Prebiotic Fiber, reducing salt and sugar) was
acceptable to consumers in terms of eating quality, flavor and colour.
 (Dr.S.Sivasankaran and Dr.R.Sivanesan 2013) determines how far the consumers are
satisfied with the overall performance of the branded milk producers. Now the dairy
industry is facing tremendous competition with many private companies enter into this
field. In order to sustain in the market by giving better service, a company should always
try to find out the satisfaction level of the consumers and should take all
 necessary steps and measures to retain the customers. Today, almost all the people are
consuming milk and milk products. Whereas Brand preferences of the
rural and urban consumers are differ. Some buyers are totally brand International
Journal of Multidisciplinary Research and Development loyal, buying only one brand in
a product group. Most of the buyers switch over to other brands.
 (Deepa ingavale, H.M Thakar 2012) observed that the change in purchase decisions was
due to marketing-related factors such as availability, advertisement, product quality,
and price of the products. Multinational companies have created a brand preference
for branded milk products such as branded butter, paneer, chees, milk powder and
proper market segmentation will help to manufacture these products as per the
requirements of the customers. All Companies are required to build their brands with
the help of packaging, point of purchase advertising, delivery vehicles, retail outlets,
marketing communication and sponerships etc.
 Dr. M. Arutselvi,( 2012), ”A Study On Consumers‟ Preference Towards Various
Types Of Britannia Biscuits In Kanchipuram Towns”. The topic deals with the study
of consumer behaviour towards Britannia Biscuits. The consumer behavior varies from
brand to brand on the basis of quality, quantity, price, taste, advertisement etc. It is
concluded that the market study on biscuits at Kanchipuram town as helped to know
the status of biscuits. It has revealed the requirements of the taste of the consumer of
biscuits. Britannia Biscuits are having a good market share in Kanchipuram Town.
 Renuka Hirekenchanagoudar (2008) says that the present investigation made an
attempt to analyze the buying behaviour of ready-to-eat food products by consumers
of Hubli and Dharwad. A total sample of 200 respondents was selected for the study.
Majority of the respondents were aware of Parle-G, Lays, Frooti and Amul brands in case
of biscuits, chips fruit juice and ice creams accordingly. Television was the major source
for getting information about various brands in all the four products. Biscuits were
consumed by all the respondents because of their convenience to use as snacks. Parle-
G, Lays, Maaza and Amul brands were highly preferred brands of biscuits, chips, fruit
juice and ice creams respectively. The main factors influencing brand preference for
biscuits, chips, fruit juice and ice creams were quality, taste and reasonable price. Most
 of the respondents would go to other shops if preferred brand in all the four products was
not available. Thus, the study revealed that the younger generation preferred more ready-
to-eat food products than the other age groups. The consumer behaviour also varies from
product to product.
 F. Mohamed Sabura, and Dr. T. Vijayakumar (2009) made a “study on retailer attitude
towards Britannia biscuits with special reference to rural areas of Coimbatore city”. To
analyse the customer satisfaction about Britannia biscuits. The total sample respondents
was fixed at judgment randam basis. The data was collected from 250 respondents in
Coimbatore city. Different statistical tools are for used by analysis of the collected data,
such as tabulation, percentage analysis, bar diagram, ANOVA and Karl Pearson‟s co
efficient of correlation. The conclusion draw from the retailer‟s point and that, the
distribution system of Britannia biscuits needs improvement through the direct selling
method to satisfy the customer.
 CHAPTER-3

RESEARCH METHODOLOGY

The research methodology is a systematic process of the collection and analysis of data. It is
simply the plan of action for research which explains in detail how data is to be collected, analyzed
and interpreted.

OBJECTIVES OF THE STUDY

• To study on customers’ expectations and customer engagement level towards Britannia cream
biscuits.

• To understand the customer‘s buying behaviors of the same.

• To identify the gap in these products with that of competitors using category killer strategy

STATEMENT OF PROBLEM

Cream biscuits are usually consumed in all season by all age groups. The decision whether to buy or
not depends only on the basis of consumer attitude only which can be influenced by the brand itself and
the customer, thus finding out the gaps existing to fill it with positive solutions.

LIMITATION OF THE STUDY

1. The research is conduct only in modern trade store as we work under modern trade Britannia.
2. It is conducted in the Coimbatore city, thus scope is limited to people of Coimbatore and their
preference might change with that of other region people.
3. The sampling method chosen is non- probability convenient sampling as that is convenient to
reach people but again the scope is limited.

DATA COLLECTION

The method of data collection includes two types for the study, such as primary data and
secondary data.
PRIMARY DATA

Primary data is the data that is collected for the first time by Research. The primary
data will be collected through a structured questionnaire.

SECONDARY DATA

It refers to the existing available sources of information like the article, newspaper,
company websites, etc.

TOOL FOR DATA COLLECTION

Systematic interview structure is used for the collection of data from consumers and
customers of Britannia.

TOOLS FOR ANALYSIS

The analysis for the study is done on the basis of data collected through observation,
questionnaire, and discussions with consumer and customers of Britannia. The following
tool is used for research.

• Chi-square
• T-test
• Anova
• Regression
• Coorelation.