project report

Britannia industries

m.COM 4th SEM (marketing management)

SESSION:-2020-21

THE BHOPAL SCHOOL OF SOCIAL SCIENCES

Submitted To Submitted by
Dr. Amrita Sahu Blessy Joseph
Associate Professor Roll no. 19103013
Department of commerce

CERTIFICATE FROM THE PROJECT GUIDE

This is to certify that the Project Report titled “Maeketing analysis of Britannia industries”
is a bonafide work of Blessy Joseph enrolment number R170190280002
undertaken for the partial fulfillment of Masters in Commerce (M. Com) degree of Barkatullah
University under my guidance. This project work is original and has not been submitted earlier for
the award of any degree or diploma of any other University or Institution.

Signature of the Guide

Dr. Amrita Sahu

Associate Professor

Department of Commerce,

BSSS, Bhopal
 DECLARATION

I BLESSY JOSEPH daughter of C.S JOSEPH certify that the project report entitled on
“Quantitative analysis of Britannia industries”, Quantitative analysis report on Britannia
industries, prepared by me is my personal and is authentic work under the guidance of Dr. Amrita
Sahu, Associate Professor, Department of Commerce.

Date: 13/06/2021 Signature of the Student

Place: BHOPAL Name: Blessy Joseph

Class: M.COM

(IV SEMESTER)
 Roll Number: 19103013

ABOUT THE SECTOR BASIC OVERVIEW OF THE

INDUSTRIES

Fast-moving consumer Goods

(FMCG) or consumer packaged goods (CPG) segment is the fourth largest sector in
the Indian economy. The market size of FMCG in India is estimated to grow from
US$ 30 billion in 2011 to US$ 74 billion in 2018. Food products are the leading
segment, accounting for 43 per cent of the overall market. Personal care (22 per cent)
and fabric care (12 per cent) come next in terms of market share. Growing
awareness, easier access, and changing lifestyles have been the key growth drivers
for the sector.

Rural – set to rise

Rural areas expected to be the major driver for FMCG, as growth continues to be
high in these regions. Rural areas saw a 16 per cent, as against 12 per cent rise in
urban areas. Most companies rushed to capitalize on this, as they quickly went about
increasing direct distribution and providing better infrastructure. Companies are also
working towards creating specific products specially targeted for the rural market.
The Government of India has also been supporting the rural population with higher
minimum support prices (MSPs), loan waivers, and disbursements through the
National Rural Employment Guarantee Act (NREGA) programmer. These measures
have helped in reducing poverty in rural India and given a boost to rural purchasing
power. Hence rural demand is set to rise with rising incomes and greater awareness
of brands.

Urban trends
With rise in disposable incomes, mid- and high-income consumers in urban areas
have shifted their purchasing trend from essential to premium products. In response,
firms have started enhancing their premium products portfolio. Indian and
multinational FMCG players are leveraging India as a strategic sourcing hub for
cost-competitive product development and manufacturing to cater to international
markets.

Top Companies
According to the study conducted by AC Nielsen, 62 of the top 100 brands are
owned by MNCs, and the balance by Indian companies. Fifteen companies own
these 62 brands, and 27 of these are owned by Hindustan Unilever. The top ten India
FMCG brands are:
1. HUL
2. ITC
3. Nestlé India
4. GCMMF (AMUL)
5. Dabur_India 6.Asian_Paints_(India)
7. Cadbury India
8. Britannia Industries
9. Procter_&_Gamble_Hygiene_and_Health_Care
10. Marico Industries
Britannia Industries Limited is an Indian food and beverage company. Founded
in 1892 and headquartered in Kolkata, it is one of India's oldest existing companies.
It is now part of the Wadia Group headed by Nusli Wadia. The company sells
its Britannia and Tiger brands of biscuits, breads and dairy products throughout
India and in more than 60 countries across the world.
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 per cent of revenue and
Britannia dairy products directly reach 100,000 outlets.
Britannia Bread is the largest brand in the organized bread market with an annual
turnover of over 1 lac tons in volume and Rs.450 crores in value. The business
operates with 13 factories and 4 franchisees selling close to 1 million loaves daily
across more than 100 cities and towns of India.

Britannia believes that ‘Taste & Trust’ are its sobriquet and will constantly endeavor
to make a Billion Indians reach out for a delightful and healthy Britannia product
several times a day!
Imagine Britannia.

HISTORY

The company was established in 1892 by a group of British businessmen with an

investment of 295. Initially, biscuits were manufactured in a small house in central
Kolkata. Later, the enterprise was acquired by the Gupta brothers, mainly Nalin
Chandra Gupta, an attorney, and operated under the name "V.S. Brothers." In 1918,
C.H. Holmes, an English businessman based in Kolkata, was taken on as a partner
and The Britannia Biscuit Company Limited (BBCo) was launched. The Mumbai
factory was set up in 1924 and Peek Freans UK, acquired a controlling interest in
BBCo. Biscuits were in high demand during World War II, which gave a boost to
the company's sales. The company name was changed to the current "Britannia
Industries Limited" in 1979. In 1982, the American company Nabisco Brands,
Inc. acquired the parent of Peek Freans and became a major foreign shareholder.

MISSION:
“To meet or, where possible, exceed the expectations of our diverse client base
with flexible, innovative solutions of the highest quality that adhere to safe,
ethically sound and environmentally friendly codes of practice.”
 Vision:

• Expanding our global client base via enhancement of our reputation in

selected business segments
• Developing a stable client base with significant repeat business
• A flexible and innovative approach towards the needs of our clients; aware
of emerging trends and technological breakthroughs
• A lucid yet commanding approach to project management that promotes
clarity and timeliness
• Being able to communicate effectively and knowledgeably in the diverse
range of countries/cultures in which we operate

Company Profile

Britannia Industries Limited

Formerly Britannia Biscuit Company Limited

Type Public

Traded as BSE: 500825

NSE: BRITANNIA
NSE NIFTY 50 Constituent
 ISIN INE216A01030

Industry Food processing

Founded 1892; 129 years ago in Calcutta

1918; 103 years ago as Britannia Biscuit Company
Limited

Headquarters Kolkata, West Bengal,

India

Area served Worldwide

Key people • Nusli Wadia (Chairman)

• Varun Berry (Managing Director)
Products • Bakery
products including biscuits, bread, cakes and rusk
• dairy
products including milk, butter, cheese, ghee and dahi
Revenue ₹11,878.95 crore (US$1.7 billion) (2020)
Operating ₹1,860.87 crore (US$260 million) (2020)
income
Net income ₹1,402.63 crore (US$200 million) (2020)
Total assets ₹7,253.34 crore (US$1.0 billion) (2020)
Number of 4,480 (as on 31 March 2019)
employees
Parent Wadia Group
Website www.britannia.co.in

Board of Directors
The members of the Board of Directors of Britannia are

Mr.Nusli N Wadia Chairman

Mr.Keki Dadiseth Director

Mr.Avijit Deb Director

Dr.Ajai Puri Director

Mr.Jeh N Wadia Director

Mr.Ness N Wadia Director

Dr.Ajay Shah Director

Dr.Y S P Thorat Director

Mr.Keki Elavia Director

Mrs.Tanya Dubash Director

Mr.Varun Berry Managing Director

1.1 THE COMPETITION

Competitors – Parle Glucose also known as Parle-G (G for Genius) is
manufactured in India by the Parle Products which is one of the oldest brand names
and the biggest selling biscuits in India.

Market Share – Parle-G has a market share of 70% in the biscuit industry in India
followed by Britannia, Tiger with 17-18%, and Sun feast of 8-9% share.

Sales/Profit Trend – More than 50% of the company’s turnover is estimated at

around Rs 20 billion. It has started expanding to areas such as Western Europe, USA,
UK, UAE and Canada.

Target Market – Parle has a target market which is focused in India, consisting of
people of all category groups such as children, teenagers, family members and even
old aged people as it is a popular biscuit eaten during Tea-time snack.

1.2 Product Portfolio of Britannia

Britannia’s entire product offering derive their premium qualities from the principles
of health and taste. This key premise has led to the evolution of a lifetime menu
where Britannia product exists for every stage in a person’s life. The highest
consumption group for biscuit are children; here Britannia offers milk bikes’ with
all the ‘goodness of milk’ required by younger kids. While the tiger brand is aimed
for 7-14 year olds and provides them with the exuberant health required by winners
of tomorrow. Treat a range of delicious cream biscuit- is meant as a treat for children
during fun times.

A particularly notable success has been little hearts, meant for teenagers and kids,
which has completely dispelled an erstwhile industry axiom that this target group
did not snack on sweet biscuit.

Moving on other age groups, Britannia

created 50-50 as a biscuit snack for young
adults. The savory time pass brand is
targeted at the same age group as well,
Britannia marigold, is regarded as a tea-
time offering, packed with wheat energy
with health conscious urban adults. Good
day, a cookie filled with rich ingredients
is a healthy everyday treat for entire family.

Britannia has a range of cakes and bread entrenched in the bakery segment. These
products allow the consumers better interactions with the brand and maintain
continuity of the taste with health promise.

In 2004, the company was

extremely active in rolling
out new products. It
introduced its Little Hearts
brand, which are referred to
as “melt in the mouth”
biscuits. Little Hearts
Orange (orange-flavored
biscuits) and Classic retail
for 10 Rupees. Britannia
also added Blackcurrant
Treat, Jam Treat, Good Day
Ginger nut and Good Day Chocó-Nut to its growing biscuit line in 2004. For the
bread and dairy markets, Britannia introduced NutriChoice vitamin-enriched bread
and Milk Man low-fat cheese slices.

There were no new product launches in 2005, instead the company worked on
strengthening existing brands. It released Premium Assorted Exotic Creme Biscuits,
which feature varieties of some of the most popular biscuits – Pure Magic Chocolate,
Pure Magic Vanilla, Pure Magic Strawberry & Vanilla and Jam Treat. The pack
retails for 100 Rupees. The company also reformulated its 50:50 Maska Chaska
biscuits.

THE MARKET ENVIRONMENT

Business Sector and Geographical Market.

Britannia Industries Limited is a public food industry, with its headquarters located
in Bangalore, well-known for its Britannia and Tiger biscuits. It now has around 300
stores spread, owned by DANONE and Kalabakan Investments in India. As we
know, they deal in Biscuits, Rusk, Diary products, Bread and Cakes.

The company, in 2007 formed a Joint Venture with Khimji Ramdas Group to expand
and sell biscuits to the Middle East countries, as it’s the most respected business and
the key district players in selling biscuits. It now provides a large range of
commodities under the brand ‘Nutro’, which is the primary brand name in Middle
East.

PEST – G Analysis

Political Factors:

• The Food regulations were put into practice at the State & Central level.
• Severe TAX rules had been started.
• Several other Government Regulations were put into action.

Economic Factors:

• The Gross Domestic Products started rising at 8-9%

• A raise in the disposable returns took place.
• Rupee Appreciation was a great concern.

Social Factors:

• 70% inhabitants are lower than 35 years of age.

• Good knowledge among the individuals of various things.

Technological Factors:
 • Process improvement and Product Innovation played a great role.
• Innovative techniques were thought to be adopted.

1.3
1.4 COMPANY’S MARKETING STRATEGY
1.5

The marketing mix of a company is an assortment of different elements of the

marketing plan. When a company decides to market its products to customers, it
does a small exercise called Segmentation, Targeting and Positioning (STP) of its
customers.

❖ Segmentation
This is the process of separating the customers into smaller categories on common
factors to better understand and generalize their needs and wants. We have
researched Britannia’s segmentation strategy and it is as follows:
1.5.1.1
1.5.1.2 Demographic Segmentation

• Kids:- Fruity Rolls, Tiger and treat

• Matured People:- Good Day, Cream Cracker
• Youth:- Little Hearts, Cream Biscuits
• Gender:- For All

Behavioural Segmentation

• Benefits:- for health benefits, all Nutri products, tea time snack biscuits
• User Status:- Little Heart Biscuit and time pass.
• Usage Rate:- Marie Gold is for high usage rate Customers.
• Occasion:- Snack Biscuit, Fruit rolls.

1.5.1.3
1.5.1.4 Psychographic Segmentation

Britannia in the past 100 years has adapted accordingly to the Indian market and
requirements like running a few of the successful campaigns and offering some great
products according to age group.

1.5.2
1.5.3
❖ Targeting

Targeting is the step that follows segmentation, in which the company selects the
customer types it wants to serve. Britannia in the past 100 years has not only focused
on the new generation of kids but also has focused on elderly people by various
products:

• Britannia Tiger- Low price and for low-income group

• Britannia Marie Gold:- Biscuit and Family size.
• Treat fruit roll:- For children during the celebration and occasional time.

❖ Positioning

This is the final step of the process in which after deciding the customer the company
wishes to target, it decides what kind of messaging or kind of stance they should
take while marketing the product.
Britannia has many brands in its portfolio and it smartly manages to use each of them
to position itself in all segments. Have a look at their smart positioning:

• Tiger:- Positioning for the mother to choose for kids

• Little Hearts:- Positioned as snacks for young people.
• Good Day:- Positioning is as everyday biscuits which brings happiness in everyone
lives
After discussing the marketing mix of Britannia, let us now discuss the social media
strategy employed by Britannia to win over its customers.

1.6
1.7 THE MARKETING MIX

1. Product

Britannia has a large variety of products to choose from, not only do they
manufacture Biscuits, but they also make different types of Diary items, Breads and
Rusk. They launch products which in gets good returns for the company through
building a good brand and quality products which are supplied across different
countries.

The main streamline of Britannia products include:

a. Biscuits such as:

Marie Gold, Treat, Milk Bikis, Time Pass, tiger, 50-50

NutriChoice also available for Diabetic people.

b. Dairy Delights include few products like:

Cheese, Milk, Dahi (Yoghurt), Ghee, Butter

c. Bread types have:

Sandwiches, Coffee, Confectionary, Assorted Breads, Benefits of Branding

2. Place

Britannia had started selling products in India, but now it has expanded overseas to
places like Middle East and Sri Lanka.

They have even started to export their goods to places such as:

USA, Ghana, Saudi Arabia , Kuwait, Bahrain,

Qatar, UAE, Oman, Seychelles, Singapore.

3. Price

Britannia has adopted the Market Penetration Method of pricing. It focuses on

the quality of the products keeping in mind the pricing strategy. This helps
improve and generate large sale volume for their products. It aims at maximizing
the market share and to produce new product lines. A few examples are:

a) Vegetarian Cakes are available at Rs. 15/- for a 75 gm pack.

b) Nutrichoice Health Starter Kit is for Rs 100.
c) Britannia Tiger Banana packed with IRON ZOR priced at Rs.2, Rs.4 and
Rs.10.

4. Promotions
To attract the consumers of Britannia, they very innovatively came up with ideas to
promote their brand in numerous different ways, and now they have leveraged
India’s two most successful passions of all times:

Cricket

Movies

Nearly every Indian’s dream was to be present at a stadium while India is playing
cricket, during the World Cup, so
Britannia created the ‘Britannia Khao,
World Cup Jao’ contest in 1999. They
made it very simple for their target
market to enter this contest, which was
to purchase more products to win a
scratch and win lucky card and
winning an all expenses paid trip to
England to watch the World Cup
Match. They held it again in 2002-
2003 held in South Africa which
successfully set a unique trend of their
own. They even came up with another
creative promotion of ‘Britannia
Khao, Cricketer Ban Jao’ that was
fuelled by the need of every Indian to
be a part of the passion called Cricket followed by a promotion called ‘Britannia
Lagaan Match’ in 2001 that revolved around a movie called Lagaan was based on a
cricket match. This promotion gave the consumers a chance to interact with the film
stars and also get to pay cricket with them. The match had over 40,000 spectators
and made the headlines of leading newspapers and news channels and was found to
be the most unbeaten promotional act of that year. So we understand that sports and
the sporting events are the key promotional tools of Britannia.

Therefore we now know that Britannia promotes their products through various
media’s such as Events, Television, Magazines and Sales Promotions too.
Swot Analysis

Strengths

• Widely Distributed network and accepted by all age groups.

• Innovative products like-Little Hearts, 50-50 Chakkar, and Nice Time.
• Celebrity endorsements – Sachin Tendulkar, Aamir Khan.
• The Brand Slogan of Britannia “Eat Healthy Think Better” is the key asset of
the firm.
• It is available in various different forms of packages.
• The variety of products is an added advantage as they not only focus on
assorted biscuits but also cakes, breads, Rusk and dairy products.

Weaknesses

• Faces stiff competition from their rival Parle and Nestle on the basis of Price
and Distribution channels.
 • The industry and technology requires high investments.
• As too many different types of brands enter the market, they might lose focus.
• Even though the prices are affordable, they might not be easily available to
the lower income groups.

Opportunities

• People are willing to try newer variants and hence it satisfies the taste buds by
its newer variants.
• It generates employment opportunities.
• As consumers are very concerned about their health, it helps them to
strengthen brands NutriChoice, Milk Bikis, and Tiger biscuits.
• Competition increases.
• This helps to enhance mergers.

Threats

• They might sometimes be unable to utilize all the resources efficiently.

• They may provide poor quality of biscuits for more profits.
• As there are a number of biscuits in the existing market, they have large
number of challengers.
• Consumer demands may alter impulsively.
• Government might come up with new restrictions without notices.

1.8

1.9 Britannia’s Social Media Strategy

In this era of digitalization, it has become very important for companies to promote
themselves on social media platforms. Britannia has been doing its best on Social
Media as well as to achieve its communication aims.

Instagram: Britannia has a total of 7,158 followers and they usually post their newly
launched products and creative banners and schemes for different festivals.
Face book: On Face book, Britannia has a total 25,727 likes on their page and they
usually post short advertisement videos and posts, contests.

Twitter: It has 14,700 followers on Twitter. It uses the same creative ideas on
Twitter as on Face book and Instagram.

1.10Britannia’s Influencer Strategy

Influencers, owing to their mass reach, are important to every Industry. It helps in
cutting through the noise and attracting the followers of the celebrity to your brand
directly. Britannia has a sizable and trusted network with famous influencers and
their fan following.

Recently, Saif Ali Khan and Shipra Khanna were seen whipping up cheesy dishes
in Britannia Cheese Star Chef.
Vinay Subramanyam, Head-Marketing, Britannia Industries, shared more on
the Little Hearts campaign featuring rapper Kaam Bhaari and actress & influencer
Ahsaas Channa.

Britannia Good Day unveils ‘Khusiyon ki zidd Karo’ with Deepika Padukone.
Bollywood celebrities Vidyut Jamwal and Bhumi Pednekar were also seen
encouraging people to make a healthy start and participate in
Britannia’s #TheNutrimovement.

PROBLEM’S FACED BY BRITANNIA INDUSTRIES

➢ GENRATING DEMAND IS THE BIGGEST CHALLENGE

It is surprising as FMCG is not a big ticket purchase. When there is a slowdown

in this sector, it reflects lack of optimism on the part of the consumers,"
Britannia Industries MD Varun Berry said the sluggishness persisted despite
prices not moving up. "Our volume growth is almost 130% of our sales growth
in recent months," Berry added.
The Nusli Wadia-controlled company's profits have jumped fivefold, while
stock price has vaulted sevenfold since FY11. On a CAGR (compound annual
growth rate) basis, Britannia's top line revenue has been growing at 12% while
bottom line soared 45% between 2012 and 2015.

➢ LACKS OF MARKETING STRATGEY

 • The social media presence of Britannia is relatively low with only 25K
followers on Face book, 7K followers on Instagram, and 14K followers on
Twitter.
• The Brand has been following the only conventional style of marketing with
celebrities and missing out on Influencer Campaigning which can create a
significant impact on social media networks.
• The Marketing strategy of Britannia is less aggressive as compared to its
competitors like Parle G, ITC, Influencers
• The Britannia being the largest name in the food industry should focus on
promoting health and nutrition through their products.
We can clearly see that Britannia needs to bring the level of commitment and
focus on its digital marketing efforts as they have put in their traditional marketing
methods. With big pockets and sound business fundamentals, Britannia can face its
competitors on all grounds if it quickly adapts its marketing efforts and modernizes.

➢ PROBLEMS DURING COVID LOCKDOWN

▪ Biscuit maker Britannia Industries has said continued impediments to supply of

essential goods, amid the 21-day lockdown, will create a shortage of packaged
food in the market over the next few days. The issue may prolong till everything,
from warehousing to movement of trucks, and permits for manufacturing
facilities, is activated across the country.

▪ The food industry supply chain is disaggregated and dependent on inter-state

movement of goods. This has caused a shortage of raw materials, and inventories
across the chain, "If even one link in the supply chain is broken, the country
could run out of stocks of packaged food in the next 7-10 days," said Varun
Berry, managing director, Britannia Industries said in a statement to the media.

▪ Our factories are primed to manufacture products at this time with all due
hygiene and social distancing protocols in place. But we need support from
district authorities in allowing our factory workers to travel to the factory
 premises with appropriate safeguards. While the Central government has issued
all necessary permissions, the immediate need of the hour is that it be percolated
right down to the district authorities. This will help us kick start production and
ensure un- interrupted supply of essential packaged foods throughout the
country," he said.
▪ Much like other large packaged consumer goods companies, Britannia too has
seen plant closures, at least in pockets where heavy lockdowns are in place. With
restrictions on movement of goods, several companies are finding it hard to
transport goods from their factories to warehouses. Moreover, distributors and
wholesalers of these goods too are finding it hard to ensure supply to retail stores.

Conclusion

Britannia has been successfully developing and generating trust among consumers
by delivering a trust base and quality products. The marketing strategy of Britannia
is product-centric where the company has been highlighting the taste and nutrition.
Various brands like Parle G, ITC are giving neck-to-neck competition to Britannia
in terms of market share and new product development. Britannia’s marketing
strategy has to change with the current market trends to gain customer attention

Now that we have an in-depth view of the company’s profile, marketing strategy and
marketing mix, it shows the different methods used to adapt to promote and publicize
their products across India and other countries. Based on the information researched,
we find that they focus on consumer needs to a very large extent. This is shown by
the fact that, since consumers are more health conscious nowadays, they have
introduced NutriChoice Diabetic Biscuits. It is also proven by their tagline, “Eat
Healthy, Think Better”. In conclusion, we see that how a small sized company has
grown to be one of the largest biscuit selling brands across India and many other
countries world-wide.

SUGGESTION AND RECOMMENDATIONS:

❖ Britannia can cut costs for some period of time followed immediately by
strong advertising. As we have seen during the research that most of
institutions give most preference to the margin provided to them on milk
products .As the quality and taste and availability of Britannia dairy Products.
Britannia dairy Products are best in market and local Dairy give companies
good margin to them, Price remains the main criteria of institutional Dairy
sales

❖ Can start schemes like cash prizes or foreign trips on scratching the barcode
on the packet

❖ Locate the institutions using competitor’s and provide them attractive offers
to increase the market share so that at least the big competitors will not try to
expand.
 ❖ Mergers and Acquisition in the Dairy industry with local players help the
company in. increasing its distribution network and Market share

❖ Efficiency in distribution

❖ Remove communication barriers and misconceptions between the Institutions

and distributors by effective communication with institutions time to time

Biblography

https://iide.co/case-studies/mother-dairy-marketing-strategy/

https://www.livemint.com/news/india/covid-19-lockdown-
britannia-fears-stock-shortage-if-supply-issues-not-resolved-
11585211611377.html

https://en.wikipedia.org/wiki/Britannia_Industries
https://timesofindia.indiatimes.com/business/india-
business/generating-demand-is-biggest-challenge-says-
britannia-md/articleshow/50460621.cms