Type Industry Founded Headquarters Number of locations

Public Food processing 1892 Kolkata, West Bengal, India 300 stores

Area served
Key people Products

World wide
Nusli Wadia, (Chairman) Vinita Bali, (MD) Bakery products, including biscuits, bread, cakes and rusk, and dairy products, including milk, butter, cheese, ghee and dahi 4,670 crore 134 crore

Revenue Profit

VISION

To dominate the food and beverage market in India with a distinctive range of Tasty Yet Healthy Britannia brands.

MISSION

To dominate the food and beverage market in India through a profitable range of Tasty yet Healthy products by making every Indian a Britannia consumer. We want to be part of our consumer- at home, out of home, a natural part of his life

BUSINESS DESCRIPTION

The Wadia Group of India along with Groupe Danone of France, are equal shareholders in ABIL, GROUPE DANONE is an International FMCG Major specializing in Fresh Dairy Products, Bottled Water and Biscuits/Cereals. One of the World leaders in the food industry

Britannia products

Cheese Butter Ghee Gourmet Dairy whitener Dahi Actimind Tigerzor choko milk Tigerzor badam milk Milk

Consumption Pattern-Cheese

There have been two significant changes in consumption patterns, affecting each end of the spectrum. In the mass consumption category, Indian consumers are more ready to buy off the shelf. Paneer, which all the major cheese producers are marketing as a branded product, was traditionally home made. Secondly, with greater international exposure, rising incomes and brand affiliation; the demand for niche cheese products has increased. Amul was an early mover in capitalizing on the demand for specialized cheeses like Gouda and Emmental.
However, cheese consumption continues to be an urban phenomenon, with processed cheese and cheese spreads accounting for about 80% of the total cheese consumption. Also, cheese is mostly consumed by children and is yet to be part of the mainstream adult diet on a mass scale.

Intense competition amongst sellers

The Amul and Britannia brands have the strongest national dairy brand identity. To compete with these established brands and gain national presence, other cheese retailers will resort to heavy marketing. Cheese advertising budgets alone are likely to be around 2%-4% of total revenues. Advertising strategies could include, for e.g. cross selling with complementary food products and offering free cheese tasting sessions.

Intense competition amongst sellers

Mother Dairy has already been pursuing aggressive advertising strategies. One successful promotion in Delhi and Mumbai was the "Cheese khao superhero ban jao" Another, helped the company bond better with its retailers. In November 2005, retailers in Delhi displayed banners proclaiming, "Cheese ke saath bees ki cheez" Both these innovative campaigns were hugely successful in brand awareness and sales.

Production Pattern

The state cooperatives that market cheese like Amul, Mother Dairy and Verka have their own production plants and source milk from their cooperatives. Among international cheese companies, only Dabon Private Limited also produces cheese in the country, having its own plant in Noida, near Delhi. The only significant private player, Britannia, does not make its own cheese but has it produced by the Maharashtra based private dairy company Dynamix Dairy Private Limited (which has a technical collaboration with Schreiber Cheese, USA). Bel Fromageries, the global French company that sells Laughing Cow and Kiri varieties of cheese in India, imports cheese into the country through its agent, Rai and Sons, Delhi.

awards

2000 Forbes Global Ranking - Britannia among Top 300 small companies 2001 BIL ranked one of India's biggest brands No.1 food brand of the country 2002 Rated as 'One amongst the Top 200 Small Companies of the World' by Forbes Global Economic Times ranks BIL India's 2nd Most Trusted Brand Pure Magic Winner of the Worldstar, Asiastar and Indiastar award for packaging

awards

2010 Britannia was presented the Master Brand 2010 Award by CMO Council in November 2010. Rotary Club of Chennai awarded CSR Award to Britannia in November, for our work in nutrition. Britannia received the Most Respected Company Award 2011 from Business world. Bourbon received the Most Popular Confectionery Product Preferred By Youth (Biscuit) Award.

IMCRBNQA (Indian Merchant Chambers Ramakrishna Bajaj National Quality Award) conferred the Manufacturing Performance Excellence Trophy a National Quality Award for the 2010 cycle, for Britannia Corporate Office (Bangalore), Britannia Industries Ltd. (Rudrapur) and Sunandram Foods Pvt Ltd (Mangaldoi, Guwahati).

THE STRATEGY OF BRITANNIA

The companys policy is customer satisfaction with less price as well as quality. Target maximum customer and sale of maximum volume. The company wants to reach the product in every segment of customer. The also have targeted to urban, rural, city town and villages area of a market. High promotion for selling the product and achieve maximum market share. The company wants to increase the profitability by selling of maximum quantity. The company is facing high competition so the profit margin is low but high turnover.

MARKET SHARE
amul Britannia Regional brands e.g. Mother Dairy, Vijaya Imported brands e.g. Kraft, Laughing Cow

BRITTANNIA VS AMUL

Formed in 1946,is also known as CO OPERATIVE MOVEMENT IN INDIA it is managed by

Gujarat co-operative milk marketing federation ltd.(GCMMF).

dairy co-operative of Gujarat turnover of Rs 27000 cores by the year 2020.

AN OVERVIEW

Members: 13 district cooperative milk producers' Union No. of Producer Members: 2.79 million No. of Village Societies: 13,328 Total Milk handling capacity: 11.22 million litres per day Milk collection (Total - 2008-09): 3.05 billion litres Milk collection (Daily Average 2008-09): 8.4 million litres Milk Drying Capacity: 626 Mts. per day

Cattlefeed manufacturing Capacity: 3500 Mts per day

MARKET SHARE AND STATUS

BUTTER MILK POWDER CHEESE
85% 40% 50% 24.75% 50% 90% 10%

ICE CREAM
SWEETS CHOCO-DRINK CHOCOLATE

MARKETING MIX
1% on promotion Amul Butter girl is the longest running ad campaign in country for 41 years. Agreement signed with Wall Mart

Product: Dairy products Cooling products Place: Rural Market Urban market International Market

Price Low pricing strategy Promotion: Advertisement

SWOT ANALYSIS
Strength Wide range of products Affordable price Distribution network Diversification Effective AD Campaign Opportunity: Export segment Sport s drink new market Entry in retailing Packaged sweets market Weakness: Need to focus on other product as well Improve on road transport infrastructure

Threats: Increasing population Increasing requirement Adulteration Difficult to expand Population of milch animal

AMUL STRENGTHS

Collect as much as 195 lac kg per day.(19.5)million of milk in the peak flush season. Dairy has organized over 10,000 village cooperatives . Everyday dairy collects 4,47000 liters of milk . Dairy sells 400 tones of cattle everyday. Strong marketing . Strong brand name.

MARKET OVERVIEW..
India is both the worlds largest producer and of dairy products. Total size of the dairy market is 234,600 crores, growing at 5% and dominated by increasing consumption and sale of milk. The market that converts milk to value-added products like dahi, yoghurt, cheese and dairy based beverages is growing strongly, albeit from a narrow and small base of around ` 11,000 crores

STP

Segment People who need and consume bakery and dairy products Target Group Middle and upper middle class families, especially kids Positioning Indias leading manufacturer of premium quality and healthy biscuits, bakery and dairy products. And available at every store

SWOT

Strength 1. Around 120 years in the industry 2. Indias most trusted brand 3. Wide range of bakery products like biscuits, rusks, cakes and dairy products like milk, butter, cheese, etc. 4. Strong distribution network ensuring proper availability of the products even in the remotest of areas 5. Marketing and advertising efficiency 6. Innovative products for health conscious people 7. Strong presence in rural markets 8. Products for all

WEAKNESS

Lower market share in dairy segment Heavy expenditure on advertising and marketing Similar products produced by many companies means high brand switching LESS CONTACT WITH FARMER HIGH COMPETATION

Opportunity
1. 2. 3. 4.

Increase in purchasing power of people in India Increase its share in the dairy industry Product line extension Expansion in other countries

THREATS
1.

2.
3.

4.

5.

Lower price offering competitors Local dairies and bakeries Up gradation from unbranded and loose products to packaged, at accessible prices milk and milk products. Competition in value added dairy will intensify as more players enter the market supported by significant brand and infrastructure investment. Only 9% of food consumed in India is packaged and branded

THE STRATEGY OF BRITANNIA

The companys policy is customer satisfaction with less price as well as quality. Target maximum customer and sale of maximum volume. The company wants to reach the product in every segment of customer. The also have targeted to urban, rural, city town and villages area of a market. High promotion for selling the product and achieve maximum market share. The company wants to increase the profitability by selling of maximum quantity. The company is facing high competition so the profit margin is low but high turnover.

POTENTIAL OF ENTRANT

Competitors AMUL NESTLE Mother dairy Aarey

Buyers power

Substitutes

Suppliers

According to porters generic model, we feel Britannia falls under the diffentiation category as in 2008, Britannia divided its product portfolio into two distinct categories: "health and wellness" and "delight and lifestyle. This clearly states that it believes in product uniqueness while having a broad market.