1

Research methodology

Res
earch problem- To study the consumer buying behaviourofBritannia biscuits.
Data source- primary and secondary
Research approach- survey approach
Research methodology- Exploratory research
Exploratory research is conducted into an issue or problem where there are few or no
earlier studies to refer to. The focus is on gaining insights and familiarity for later
investigation. Secondly, descriptive research describes phenomena as they exist. Here
data is often quantitative and statistics applied. It is used to identify and obtain
information on a particular problem or issue. Finally causal or predictive research seeks
to explain what is happening in a particular situation. It aims to generalise from an
analysis by predicting certain phenomena on the basis of hypothesised general
relationships.
Research instruments- Questionnaire


Primary data- Questionnaire

Sampling plan
Sample mall| supermarket
Sample method- random sampling
A Random sample is one chosen by a method involving an unpredictable component.
Random sampling can also refer to taking a number of independent observations from the
same probability distribution, without involving any real population. The sample usually
is not a representative of the population of people from which it was drawn this
random variation in the results is termed as sampling error.
Sample size- 50

2

Introduction
Britannia Industries ltd. is Indias one of largest producer of biscuits with delightful
product range to offer variety and choice to consumers.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.
Having such huge product range company need to more concentrate on preparing budget
for the same and implementing it to achieve objective and goals of management.
Preparing budget is the fundamental need of any organization and it communicates plan
to everyone, to set a target and to draw a plan, it forecast coordination of activities.
As preparing budget is not only important concern for the company but to have the
budgetary control is also necessary to achieve the goals and to control the negative
variance. And thus same topic attracted to taken up for the study.
Project is prepared under the title of Budgetary Control and Financial planning. Project
covers the brief introduction of Britannia industry and Biscuit Industry also it includes
How Britannia Industry Limited prepares the effective Budget and how they calculate
and control the variance after comparison between actual figures with budgeted figures.
Understanding the process of the preparing budget and who all concern departments
involved in the process.
In organization each department need to prepare its own budget and have to scale the
boundaries within which they have to spend and they have to achieve the target so budget
is the important for each and every department. Now a days controlling variance is
became the main concern in front of management and thus it is useful to study variance
control and measure taken on adverse variance.
By understanding the process of preparing budget and understanding the requirement of
various monthly & weekly management reports of fluctuations, will give the loopholes in
the process.

3

Industry Overview
Industry Profile
Fast Moving Consumer Goods

FMCG Industry:
FMCG are products that have a quick shelf turnover, at relatively low cost and don't
require a lot of thought, time and financial investment to purchase.
Fast Moving is in opposition to consumer durables such as kitchen
appliances that are generally replaced less than once a year.

Three of the largest and best known examples of Fast Moving Consumer
Goods companies are Nestl, Unilever and Procter & Gamble.

The Indian FMCG sector is an important contributor to the country's GDP. It
is the fourth largest sector in the economy and is responsible for 5% of the
total factory employment in India .

This has been due to liberalization, urbanization, increase in the disposable
incomes and altered lifestyle.

The lower-middle income group accounts for over 60% of the sector's sales.
Rural markets account for 56% of the total domestic FMCG demand





4

ABOUT EVOLUTION OF BRITANNIA


The story of one of India's favourite 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
Indianans 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. 100 crores 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
5

identity - "Eat Healthy, 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.

Today, more than a century after those tentative first steps, Britannia's fairy tale is
not only going strong but blazing new standards, and that miniscule initial
investment has grown by leaps and bounds to crores of rupees in wealth for
Britannia's shareholders. 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 a strong management at the
helm means Britannia will continue to dream big on its path of innovation and
quality. And millions of consumers will savour the results, happily ever after.





6

COMPANY PROFILE




COMPANYS BACKGROUND

Britannia was incorporated in 1918 as Britannia Biscuits Co LTD in Calcutta. In 1924,
Pea Frean UK acquired a controlling stake, which later passed on to the Associated
Biscuits International (ABI) an UK based company. During the 50s and 60s, Britannia
expanded operations to Mumbai, Delhi and Chennai. In 1989, J M Pillai, a Singapore
based NRI businessman along with the Group Danone acquired Asian operations of
Nabisco, thus acquiring controlling stake in Britannia. Later, Group Danone and
NusliWadia took over Pillais holdings.
Plant Location
Britannia's plants are located in the 4 major metro cities Kolkatta, Uttaranchal, Delhi,
and Chennai. A large part of products are also outsourced from third party producers.
Dairy products are out sourced from three producers - Dynamic Dairy based in Baramati,
Maharashtra, and Modern Dairy at Karnal in Haryana and Thacker Dairy Products at
Howrah in West Bengal.

Today, Britannia is the largest biscuit and bakery company in the country with the daily
sales turnover of over Rs. 200 Crores. It is the market leader in the 1.3-million
7

tonneIndian biscuits industry with a 31% share. It has maintained market leadership with
a 48% value market share in the organized sector.
Britannia core businesses constitute of Bakery and Dairy products. Bakery products
account for 90% of the revenues and include Biscuits, Bread and Cake & Rusk. Dairy
products contribute to 10% of Britannias annual sales turnover of Rs 34,014 mm.
Throughout its existence, Britannia has operated on the principles of providing products
to the consumers 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 segment. It has trimmed down its wide product portfolio by reducing the
products from 35 to around 25 and began to focus on value-added instead of low-margin
products.

With the launch of Tiger brand, it has taken a plunge in the low-end category, taking
competition head on with Parle, which is the leader in this segment. The company has
also diversified within dairy and bakery products to enter the butter, cheese and ghee
markets. The portfolio was expanded with the launch of butter, pure flavored milk in tetra
packs and UHT milk.
Britannia has built an enviable retail distribution network, which services 400,000 retail
outlets in 2,200 towns with the help of 2,500 distributors. The company is aggressively
expanding its network with a bias towards the rural markets recently, in the ethnic food
segment, the company introduced a new range of traditional namkeens in Mumbai
called Britannia Snax. The new range includes seven varieties of traditional namkeens
like 'Bikaner kiBhujia' and 'Rajasthani AluBhujia' in a price range of between Rs 5 and
Rs 20.The company is in the process of setting up a Greenfield Biscuit Project in
Uttaranchal to augment its production capacity, entailing an investment of about Rs 55.2
crore. This plant will have capacity to produce over 45,000 tonnes of two or three
varieties of biscuit per annum. So after over seven decades of being inseparable part of
life in India, Britannia is now set to usher its customers into a healthier and tastier future.
8

The branded health alternative available to the consumers constitute of Nestle, Amul, etc.
while the snacking and indulgence section is led by ITC &Haldirams. Among the new
entrants the ones posing more threats to Britannia include Kraft Foods. Kraft which has
very recently acquired Cadbury already has at its disposal a variety items that occupy the
mid-segment, like orea. Parle is currently concentrating on brands like Hide n seek and
smart chips so that they can get a premium as well as take advantage by projecting
healthy snacking. Britannia which has an overall market share of 31% (nationally) has a
majority share in south & East of India. Britannia is the market leader in all the category
except Glucose. The objective that the marketing team of Britannia follows is, No
Penetration Building, Go for Consumption Building.

TARGET MARKET FOR SOME BRITANNIA PRODUCTS
Brand Target Market
Tiger Mother and child
Good-Day For all
Marie House-Wife
Nutri choice Health conscious consumers
Treat Kids & Youth
Milk Bikis Kids
Bourbon Youth

Other claim made by Britannia for better health are:
Zero Transfat
Fortification with nutrients

9

MISSION,VISION, VALUES, SUCCESS OF BRITANNIA COMPANY

Mission

We, the Britannia team, will successfully complete the Britannia development, on stream
1 October 1998, fulfilling all cost, value, and acceptance criteria.

Vision

Britannia will be viewed as a significant step forward in large field developments with
high safety and environmental standards and achieving excellent financial margins by
focusing on minimizing costs through the adoption of best practices.

Values

Value everyones contribution by empowering them to achieve

Success

Continuously improve business and technical practices. Encourage creativity to challenge
tradition. Develop individual and team skills. Build win-win relationships with suppliers
and contractors.








10

Objectives of Britannia company

High safety standards.
Reliability and quality.
Lowest-cost safe operator.
High environmental and ethical standards.
Maximization of economically recoverable reserves.
Achievement of lowest compatible capital cost.


Employee Satisfaction

A number of qualitative methods for accumulating feedback from employees were used,
and most involved face-to-face communication. The executive team made a collective
commitment to being visible across the organisation, talking to people and eliciting
feedback, including attendance at Mutual Understanding meetings.
Neville Richardson ensured he was at the forefront of this, and his Captains Table
initiative informal lunch meetings with groups of employees from across the
organisation washugely popular and successful. For those who preferred a less direct
way of providing the CEO with feedback, a Tell Neville facility was introduced on
BritNet







11

The Learning of Britannia about their employees

Why has the Britannia change programme been so successful?
What the Britannia experience demonstrates is that the highest levels of employee
engagement can only occur when there is demonstrable commitment from the
organisations leadership. Good leaders will be visible, able to instil pride among
employees and promote a personal growth mindset. They will also show a genuine
passion for creating a positive working environment, engender a spirit of trust and co-
operation, and unite people with a sense of common purpose. For such a change
programme to be successful, leaders also need to create an organisational structure that
provides substantial opportunities for personal development, and where feedback from
across the business is solicited, and acted upon, systematically. Building on the strengths
of the organisation has created a distinctive culture and some compelling results. The
results Of the 24 key performance measures that were agreed at the start of the change
programme, Britannia is on or ahead of target in over 90% of them, including the
employee satisfaction measure.
In the Viewpoint survey carried out in November 2005, [95] per cent of employees across
the Group declared themselves to be proud of Britannia, compared to [86] per cent two
years previously. And those who said they would recommend Britannia to others had
risen from [75] per cent to [90] per cent. The focus on the core business has had dramatic
results, with record profits and record mortgage lending in 2005, and the successful
integration of Bristol & West accelerating the growth opportunities for the future.
Mutuality is clearly having real resonance with members, with over 400,000 of them
voting for Britannia to stay mutual (versus 19,000 in 1996).







12

The culture within Britannia has really changed people are actively wanting to make a
real difference for the benefit of the customer

Britannia measured the levels of employee engagement based on model
below:s







Advocacy

proud of britannia products and
services
Commitment
intellectual and emotional buy in to
mission goods and values

Satisfaction
employees get what they need in terms of stimulation,
recognition, support and growth


13

The Origin of 'Eat Healthy Think Better









Britannia -the 'biscuit' leader with a history-has withstood the tests of time. Part of
the reason for its success has been its ability to resonate with the changes in
consumer needs-needs that have varied significantly across its 100+ year epoch.
With consumer democracy reaching new levels, the one common thread to emerge
in recent times has been the shift in lifestyles and a corresponding awareness of
health. People are increasingly becoming conscious of dietary care and its
correlation to wellness and matching the new pace to their lives with improved
nutritional and dietary habits. This new awareness has seen consumers seeking foods
that complement their lifestyles while offering convenience, variety and economy,
over and above health and nutrition.

Britannia saw the writing on the wall. Its "SwasthKhao Tan Man Jagao" (Eat
Healthy, Think Better) re-position directly addressed this new trend by promising
the new generation a healthy and nutritious alternative - that was also delightful and
tasty.

Thus, the new logo was born, encapsulating the core essence of Britannia - healthy,
nutritious, optimistic - and combining it with a delightful product range to offer
variety and choice to consumers.
14


FMCG SECTOR






Fast Moving Consumer Goods (FMCG) goods are popularly named as consumer
packaged goods. Items in this category include all consumables (other than
groceries/pulses) people buy at regular intervals. The most common in the list are toilet
soaps, detergents, shampoos, toothpaste, shaving products, shoe polish, packaged
foodstuff, household accessories and extends to certain electronic goods. These items are
meant for daily of frequent consumption and thus it have a high return .
A major portion of the monthly budget of each household is reserved for FMCG products.
The volume of money circulated in the economy against FMCG products is very high.

Number of products the consumer use is very high. Competition in the FMCG sector is
very high resulting in high pressure on margins. FMCG companies maintain intense
distribution network. Companies spend a large portion of their budget on maintaining
distribution networks. New entrants who wish to bring their products in the national level
need to invest huge sums of money on promoting brands. Manufacturing can be
outsourced. A recent phenomenon in the sector was entry of multinationals and cheaper
imports. Also the market is more pressurized with presence of local players in rural areas
and state brands.
15

BOARD OF DIRECTORS








BRITANNIAS PRINCIPLE ACTIVIY
Asian Paints (India)
Cadbury India
Britannia Industries
Procter & Gamble Hygiene and Health Care
Marico Industries

Britannia Industries Limitedis an Indian food-products corporation based in Kolkata,
India. It is famous for its Britannia and Tiger brands of biscuit, which are popular
throughout India. Britannia has an estimated 38% market share. The Company's principal
activity is the manufacture and sale of biscuits, bread, rusk, cakes and dairy products.

NAME

DESIGNATION

Mr. Nusli Neville Wadia Chairman
Mrs. Vinita Bali Managing Director
Dr. A.K. Hirjee Director
Mr. Auijit Deb Director
Mr. Jeh.N. Wadia Director
Mr. KekiDadiseth Director
Mr. Nasser Munjee Director
Mr. Ness NusliWadia Director
16

THE TOP 10 COMPANIES IN FMCG SECTOR

SR.NO. COMPANIES SR.NO. COMPANIES
1. Hindustan Unilever Ltd. 6. Asian Paints
2. ITC 7. Cadbury India
3. Nestle India 8. Britannia Industries
4. GCMF (AMUL) 9. Procter & gamble hygiene health
and care
5. Dabur India 10. Marico Industries





17



- Parle tops the list in terms of volume
Britannia is the no. 1 in value terms

Biscuits category with annual production in percentage


Britannia produces so many kinds of biscuits targeting audience from children up to old
people. Their targeted audience covers all type of age group people. Marie is mostly
loved by all people, and also has got a good position in the market. Followed by crackers
its mostly recommended for the patients as its quite healthy. Milk biscuits has being
playing a major role in the children targeted sector where, children are still found of it as
it is tasty as well as healthy. Cream biscuits, these biscuits are mostly targeted for small
kids as they are mire interested in cream biscuits and even company has come out with
different creamy flavours which attract the kids a lot.
13%
10%
13%
12%
8%
MARIE
CREAM
CRACKERS
MILK
OTHERS
18

In terms of volume biscuit production by the organized segment is estimated at 1.30
million tones . In the organized sector, the industry is dominated by Britannia and Parle,
which account for 70 per cent of the industry's volumes. Britannias market share stands
at 31%. Britannia's market share in the medium and premium varieties is significantly
higher.
Biscuit is a hygienically packaged nutritious snack food available at very competitive
prices, volumes, and different tastes. According to the National Council of Applied
Economic Research (NCAER) Study, biscuit is predominantly consumed by people from
the lower strata of society, particularly children in both rural and urban areas with an
average monthly income of Rs. 750.00.
Biscuits can be broadly categorized into the following segments:
In recognition of industry's obligations towards the community, being a part of it, biscuit
manufacturers supply biscuits to the social welfare agencies in all States for the benefit of
school children, senior citizens, and other needy sections of the society. FBMI
(Federation of Biscuit Manufacturers of India) Members have always responded
positively to appeal and rush truckloads of biscuits to the people affected by earthquakes,
floods, famine etc.
Though India is considered as the third largest producer of Biscuits after USA and China,
the per capita consumption of biscuits in our country is only 2.1 Kg., compared to more
than 10 kg in the USA, UK and West European countries and above 4.25 kg in south East
Asian countries, i.e. Singapore, Hong Kong, Thailand, Indonesia etc. China has a per
capita consumption of 1.90 kg, while in the case of Japan it is estimated at 7.5 kg.

Biscuit is a comparatively low margin food product in the PMCG (Packaged Mass
Consumption Goods) sector. This commodity is price sensitive.
Biscuit manufacturing as well as other bakery products like Bread etc are agro based
industries, with the major inputs-wheat, flour, sugar, milk, vegetable oil etc. all being
agriculture produces.
19

Britannia brands and products enjoy unparalleled consumer
penetration and reach


Britannia brands reach more than 300 million homes across India.
More than 40% of Britannia consumption happens in rural India.
Britannia sells about 6 billion packs of biscuits products every year.
Britannia products are available through more than 3 million stores across India.
Britannia has a leader presence in very frequently consumed Bakery and Dairy
categories.




20

RURAL DEVELOPMENT MADE BY BRITANNIA






21

BRITANNIA BISCUITS AND THEIR TAGLINES

BRITANNIA BISCUITS THEIR TAGLINES
Britannia cookies Zindagi Mein Life.

Britannia Tiger Biscuits IRON ZOR- Helps make mind sharper and body
stronger.
Britannia Good Day IskaToh Ho Gaya Re Good Day.
Britannia Bourbon Smooth, Rich and Delicious Bitter.
Britannia 50-50 Hatke.
Britannia Marie Gold Fully Loaded Marie For A Fully Loaded Life.
Britannia Timepass Fried is gone, Baked is in.
Britannia Little Hearts DilSabka Actually Sweet Hai .


Britannias commitment : Removing the Bad
Britannia is the first food company in India to become a Zero Trans Fat company.
22

Britannia Tiger's 'AltiPalti' Offer for Children

AltiPalti as the name suggests is an exciting offer, which introduces children to a playful
but functional range of gifts. Lenticular or 3D picture collections are a popular
phenomenon amongst children and this year, Britannia Tiger the most popular biscuit
brand in the country will reward children with Lenticular gifts such as rulers, book labels,
bag tags and stickers on the purchase of every Rs. 3 and Rs. 4 pack of Britannia Tiger.
Each gift has the animated Tiger mascot on it doing a series of things like skate-boarding,
cycling, dancing and more.

The new offer is currently available in retail stores across the country. Consumers can
also witness attractive dispensers and Britannia Tiger branded posters and display
material based on the AltiPalti theme in stores.

A life size Tiger mascot is also slotted to visit select schools distributing the 3D
collection to lucky children. This could well be the chance for kids to photograph
themselves hand in hand with a Tiger.

The Britannia Tiger AltiPalti offer is an innovative yet indulgent proposition that has
already become a craze amongst children of all age groups across the country. The
AltiPalti offer is seen as the most exciting promotion ever from the brand to reward its
loyal consumers.







23


About Britannia Tiger

Britannia Tiger was launched in 1997 to cater to consumer needs in the growing glucose
biscuit category. It subsequently became the largest brand in Britannia's portfolio in the
very first year of its launch. Britannia Tiger has since grown from strength to strength,
establishing itself as a formidable player in the glucose biscuits category.

The brand was re-launched in June 2005 with a new marketing mix including a superior
product, refreshed packaging and new communication. The re-launch this year has helped
Tiger bolster its growth in the highly competitive glucose biscuit category.

Britannia Tiger today partners winners across the length and breadth of our country and
has become the first choice of today's mother to enable her child to win in life by tapping
into her child's inner pool of energy and fun. Tiger is the modern mother's choice for
providing the best collaborative care for her child.








24

COMPARISON STUDY BETWEEN BRITANNIA, PARLE AND ITC
PRODUCTS
BRITANNIA BISCUITS

ITC BISCUITS PARLE BISCUITS












The Rs 3,600-crore premium cream biscuit market has turned hyper competitive with
Cadbury'sOreo and ITC's Sunfeast brands biting into the share of Britannia Industries,
and Parle Products planning to enter super-premium creams.
The numbers reveal how Oreo and Sunfeast (Dark Fantacy , Dream Cream and Premium
Cream) creamed Britannia to garner shares of 6% and 10.6%, respectively during January
to September 2011. The Sunfeast portfolio gained the most with 7% jump in value share.
25

Britannia's combined value share of the premium cream biscuit portfolio (Bourbon and
Treat) declined from 18% in January to 14.7% in September , as per Nielsen data
available with TOI. This has narrowed the share gap in premium creams between
Britannia and ITC.
"The cream category contributes less than 20% to the overall Britannia business.
However, in the recent past key brands like Bourbon and Treat have found much stronger
traction and appeal with consumers and have grown faster than the overall biscuit market.
Bourbon , in fact, has almost doubled and held on to its share of 9% year-to-date (9.2%
last year)," said a Britannia spokesperson.
"Competitive activity has also been there in different categories including a high decibel
launch of Oreo which has a share of 1 % in the biscuit market year to date," the Britannia
spokesperson said, adding, "with innovative and superior consumer delivery, Britannia
creams will sustain pricing."
Oreo, which was launched early this year, is said to have clocked in sales on the back of
high consumer spends, which went up by 51% in the second quarter ended September 30
this year as compared to the first quarter. ITC investments behind Sunfeast premium
cream biscuits were even higher at 114% in the last two sequential quarters. In contrast,
Britannia's spends on the premium cream biscuits increased just 6%.
Oreo hit the market with an aggressive introductory offer of Rs 10 per pack, a level most
Indian households can afford to splurge on. Cadbury India, which is now owned by Kraft,
adopted a strategy to drive awareness and rapid trials. "We reached out to consumers
across 14 cities through our 'Oreo Togetherness' campaign . We also leveraged the digital
medium in a big way," said Chandramouli Venkatesan, director , snacking and strategy,
Cadbury India. Oreo's price was gradually upped to Rs 12 based on the consumer
response.
ITC too upped the ante with its premium range of cream offerings receiving "positive
response from consumers with sales volumes recording impressive growth" , according to
Chitranjan Dar, divisional chief executive, ITC Foods division. Now, Parle Products, the
largest domestic biscuit maker, plans to enter the super-premium cream segment.
26

MARKET SHARE OF BRITANNIA, PARLE AND ITC

First CMI department of the BIL start ascertaining what was market growth rate for
Current Year and what will be the rate for the coming year. When we talk about market
growth there are two aspects which affect the market growth rate i.e. population which is
goes on increasing year on year and second one is consumption pattern of the people and
competition in the market. On these basis CMI department predict the growth rate for the
Coming Financial Year. Last year will be base year. Now suppose say for example last
years biscuit market was 1000crores and value and volume share is as follows
35% - BIL share
35% - Parle Share
10% - ITC Share
20% - Others

BIL
35%
Parle
35%
ITC
10%
Others
20%
Market Share
27

So in this case BILs Volume/Value share is 3500 Cr. And CMI department predicts the
Growth of market will be 10% then market will be of 1100crores then BIL sharing 3850
Cr. And they also have to add their own growth rate which comes from their annual plan.
So adding up BILs growth Rate (35% + 8% = 43%) now Company will be sharing 43%
Of 1100Crs. i.e. 4730Crs. will be the market share for the coming year and on this basis
they plan further operations of different Functional Departments.
These above data goes to Sales Department. Sales department take it as a target for the
year. Sales department project the demand region wise and brand wise and it is estimated
in value and volume. Further demand splits into the SKU region wise
once the target is decided it will be segregated into different categories. BIL have
following categories for Biscuits.
Glucose
Cookies
Crackers
Marie
Milk
Health
Cream
According to forecasted demand and last years data analysis target segregated into above
categories
28


Now after segregating into categories each category again divided into region wise
according to the last years performance of each brand under each category. Then the
region wise target is set, for example Cookies share is 22% of overall companys Biscuit
target then it will be again divided into region.
Say, suppose companys target is 100 tones, then Cookies share is 22 tones. So 22 tones
will be divided into five regions.

After deciding the region wise target, SKU volume is budgeted and it is done by the
respective Brand Team or Brand Manager considering each SKUs performance for the
18%
22%
15%
10%
15%
10%
10%
Company's Target
glucose
Cookies
Crackers
Marie
Milk
Health
Cream
Chennai 1,
5
Chennai 2,
4
Kolkatta,
6
Delhi,
2
Mumbai,
5
29

previous year. Each region has a depot according to the requirement and business in the
region. On the basis of last years contribution of each depot in the sales and performance
in the various parts of region this SKUs budgeted volume is again distributed into
various depots. This way revenue budget of value and volume is prepared and it splits
into quarters.
Next part is contributed by the planning department they get inputs of projected demand
quantity of SKUs region wise and depots demand, then their role is to decide from which
factory to produce and supply to depots so all depots should have all types of sufficient
stock. On this planning department consider various factors like whether particular
factory have capacity and capability to meet requirement of depots or no.
Next step is to take decision of FSD i.e. from which Factory to produce which SKUs and
how much it is produce for which depot? Now this is very complex decision because BIL
have variety of SKUs and number of CPs & factories in this case there are number of
permutations and combination will come which is not feasible to take decision. BIL use
one tool to take this decision which is outsourced, where all the information inserted and
tool gives the optimal cost of sourcing and get the output of combinations of factory,
SKU & depots (i.e.FSD).
Once the FSD decision is taken then Variable Budget is to be made. Material cost should
be determine. For BIL main costs are Raw material, Packing Material, Manufacturing
cost and Transportation cost. Manufacturing each product quantity input of Raw Material
and Packing Material is ascertained from Bill of Material.
Important part of the variable budget is to projection of the Raw Material and Packing
material which is done by the Purchase department. While projecting the rate they
consider Commodity Inflation rate, overall inflation, economic conditions and agreement
with supplier if any. Following chart will explain Commodity inflation and also the
calculations with MPV impact.


30

DISTRIBUTION SYSTEM









Britannia Industries Limited (BIL) has got 50 company all over the country out of which
ithe company has got 45 warehouses of its own. Britannia company has 2600 distributors
all over the country which are a combination of wholesaler and rural dealers and its total
outlet are almost about 3500000.







Britannia Industries Limited
(BIL) [50]
Company Warehouse [45]
Distributor [2600]
Outlet [3500000]
Wholesaler
Rural Preferred
Dealer (RPD)
North
South 1
East
West
3500000
outlets
South 2
31


DISTRIBUTION FOOTPRINT














DISTRIBUTORS




Increase penetration and
accessibility
Influence mix at point of sale
Increasing competition
competitive edge
Reduce uncertainty and
dependency on intermediaries

Summer interns prospecting for
new outlets
Data from A C Nelson
Prospecting Delhi
Geo-tagging - Bangalore
Low dealers per lakh
Low direct : indirect distribution
reach

32


THE MAIN DISTRIBUTORS

POINTERS ROHINI DISTRIBUTOR YASH ENTERPRISES
740 outlets
4 salesman and 5
delivery vehicles
Average sales-45 lakhs
940 outlets
4 salesman and 4 delivery
vehicles
Average sales-25 lakhs
Prospecting was done in
July
800 new outlets were
found
373 outlets were finally
found viable

Prospecting was done in
August
860 new outlets were found
300 outlets were targeted
More than 200 outlets
were added
2 new salesman were
hired and 1 more
delivery vehicles were
introduced
New beats were activated
from 1
st
August.



More than 200 outlets were
added
1 new salesman was hired and
1 more delivery vehicles was
hired for 3 days a week
New beats were activation
from 1
st
September.


BEFORE

PROSPECTING

ACTIVATION

33

ACTIVATION OF OUTLETS
New outlet list from prospector was split according to the geography.
Beatwise list was prepared and target was given to each salesman to activate new
outlet.
Salesman were given training to activate new outlet.
Catalogues were made available to salesman .
New salesman was under training and shadowing other salesman.

FOLLOWING ARE THE COMPANIES AS PARTNERS OF BRITANNIA
HELPING IN RURAL DEVELOPMENT







34

The following chart gives an overview of the two prolonged approach
towards the Britannia marketing.






















A PRODUCT MARKETING A TWO PROLONGED APPROACH
Design and delivery of customer needed product worked out by in
keeping view corporate objective and environmental constraints
Collective
Approach
Selective
Approach
To satisfy all
customer by the
product and to
develop positive
image of the
company in terms of
quality of thr service.
To develop
sustainable
relationship with
selective high value
customer and making
efforts for their
retention for added
value to the bank.
To introduce system
of objective
assessment of the
standard of customer
service to find out
areas and cause of
deficiencies and take
appropriate corrective
action.
To concentrate on
selective valuable
customer through
CRM to find out their
latent and felt needs
and to develop ways
and means to satisfy
them to ensure
sustainable
relationship.
1. definition of target group of customer and
their expections.
2. development of proper marketing mix in
terms of product, price, place and promotion.
Objectives
Methodology
35

CUSTOMERRELATIONSHIP MANAGEMENT WITH BRITANNIA

Definition of CRM by Dyche: The infrastructure that enables the delineation of and
increase in customer value, and the correct means by which to motivate valuable
customers to remain loyal indeed to buy again.
Customer Relationship Managementis the establishment, development, maintenance and
optimization of long-term mutually valuable relationships between consumers and the
organizations. Successful customer relationship management focuses on understanding
the needs and desires of the customers and- is achieved by placing these needs at the
heart of the business by integrating them with the organizations strategy, people,
technology and business processes.
At the heart of a perfect CRM strategy is the creation of mutual value for all the parties
involved in the business process. It is about creating a sustainable competitive advantage
by being the best at understanding, communicating, and delivering, and developing
existing customer relationships in addition to creating and keeping new customers.
CRM has been a hot topic in industry for a relatively short period of time. It formalizes
best practice into a strategy that enables a firm to indentify its customers and target them
in a way which will make them ore profitable and loyal. Fairhust argues that the best
example of CRM still remain the one-to-one services provided by shopkeepers who know
their customers personally.






36

Britannia is a Mutual Insurance Association of shipowners throughout the
world, which is registered in the United Kingdom and regulated by the UK
Financial Services Authority.

The fundamental distinction between a Mutual and other types of insurance company is
that a Mutual is not trying to make a profit, has no shareholders and exists purely for the
benefit of its Members. The funds of the Mutual are invested and the investment return is
used to benefit the Members. The Members are both the insurer and the insured. Mutual
insurance is collective self-insurance which operates at cost.

A Committee, comprising up to 30 Directors - 28 elected from the membership -
determines matters of policy on the advice of the Managers, Tindall Riley (Britannia)
Limited to whom the day-to-day management of Britannia is delegated. The Chairman
and Chief Executive of the Managers are members of the Committee.

Formation and Development
On May 1 1855, the day the UK Merchant Shipping Act 1854 came into force, the
Shipowners' Mutual Protection Society commenced business in London as the first
shipowners' Protection Association. Whilst the 1854 Act did provide shipowners, for the
first time, with a measure of limitation of liability for loss of life and personal injury - it
stipulated that the value of the ship for limitation purposes should be assessed at not less
than 15 per ton - many ships in fact had a lower value and the shipowner's liabilities
potentially exceeded the value of his ship. It was such liabilities, not covered by the
conventional marine market, which the Protection Society met.

The Britannia Steam Ship Insurance Association was formed in 1871 as a mutual
insurance association for steamships with Classes 1 and 2 covering hull and machinery
risks and freight risks respectively. Five years later Class 3 of Britannia took over the
protection risks which had until then been covered by the Shipowners' Mutual Protection
Society. The first two Classes were subsequently wound up but Class 3 has continued to
the present day to cover the liability risks of shipowners. In 1886 Britannia became a
37

Protection & Indemnity (P&I) Club by treating cargo or 'indemnity' risks separately from
the other 'protection' risks. Over succeeding years cover was widened to meet the
increasing liabilities of shipowners.

In 1899 Britannia joined five other P&I Clubs in a Pooling Agreement to share the cost of
exceptionally large claims. Today thirteen Clubs are parties to the Agreement. Together
they cover over 90% of the world's merchant fleet and form the core of the International
Group of P&I Clubs.

Cover
Since its inception the cover provided by the Association has developed to meet the needs
of different types of ships and to respond to the impact of new legislation and regulations
around the world. For example, cover was expanded to include new oil pollution
liabilities under the 1969 Civil Liability Convention which followed the 1967 Torrey
Canyon disaster. Oil pollution has since become an increasingly high profile risk.
Nevertheless, traditional risks involving loss of life, personal injury, collisions, property
damage and cargo claims still account for much the greater part of the cost of claims
insured by Britannia.

While Class 3 (P&I) is by far the largest area of Britannia's business, it also conducts
insurance business through Class 6 (Freight, Demurrage and Defence - legal expenses
insurance).
Growth
Britannia has grown substantially in the last 50 years. In 1960 the gross tonnage entered
in the Association was 3 million. By 1970 it had reached 10 million and by 1980 had
quadrupled to 40 million. Britannia now insures approximately 138 million tons of
owned and chartered tonnage and is one of the largest P&I Clubs, accounting for over
10% of the world merchant fleet, with many of the world's best-known ship owners as
Members.

38

Service, Strength and Quality

Britannia is determined to maintain a position at the forefront of the P&I insurance world.
The principal factors which have governed its successful progress and which will provide
the foundation for its future development are:

A high quality membership selected from the world's leading ship owners.

A thorough understanding of Members' businesses backed up by a realistic risk
management programme.

Prudent underwriting leading to unrivalled predictability of insurance cost.

The application of legal, marine and commercial expertise in the active management
of claims so as to minimise Members' ultimate liabilities.

A successful investment policy which has made a substantial contribution to the
reduction of Members' costs.

A world-wide network of correspondents, including many who are exclusive to
Britannia, who provide assistance to Members on all aspects of P&I.

A highly motivated management team which keeps close control on all aspects of
the business.




39

Treasury
Treasury management
Treasury management as a set of techniques that act on the short-term liquidity of a
company, and at the same time affect those factors and processes that translate
immediately into cash, with the ultimate aim of increasing the profitability of the
company and improving working capital management.
Specifically, Treasury management handles excess cash which company having at that
point of time. Investing into different kinds of financial instruments like debt papers,
mutual funds, equity, corporate bond, government bond, commercial papers, etc. in a
fashion that company can de-invest whenever company is in need of that money. It also
involves forecasting future needs for funding and seeking the best alternatives for
obtaining it. Corporate Treasury has similar to investment banking.
When we talk in perspective of Britannia Treasury operation comes under the control of
CFO of the concern or the Vice-President/Director of Finance. Investment decisions and
limits are fixed in the board meeting.
Treasury Management refers to efficient management of liquidity and financial Risk in
business.
The responsibilities of Treasury Management include:
Management of cash, while obtaining the optimum return from surplus funds.
Management of foreign exchange rate risks, in accordance with the Company
policy.
Providing long-term and short-term funds as required by the business, at the
minimum cost.
Maintaining good relationship and liaison with financiers, lenders, bankers, and
investors (shareholders) and
Advising on various issues of corporate finance like capital structure, buy-back,
mergers, acquisitions, disinvestments etc.
40



Britannia Nutrition Foundation: Building Knowledge creation and awareness
through partnership.
Britannia approach to health and nutrition: targeted health entries, specialized products.
Fortification of popular products. Fortified products made accessible and affordable.
H & N initiatives, Britannia leads through product and thought leadership in India.
Fortification, zero trans fat, health entries, nutrition alliances, Clinton global initiatives,
creating knowledge.
In India a complex inter-network of culture, food behaviours, economic strata and health
levels. Helping health seekers make better snacking choices that are Good For
Thinking.


41

Peer Comparison

Company
Market Cap
(Rs. in Cr.)
P/E
(TTM)
(x)
P/BV
(TTM)
(x)
EV/EBIDTA
(x)
ROE
(%)
ROCE
(%)
D/E
(x)
Nestle India

44,749.97 44.15 35.13 26.43 90.3 89.9 0.46
GlaxoSmith C H
L

12,684.67 31.66 11.09 16.29 33.8 51.7 0.00
Jubilant Food.

8,817.00 75.25 29.42 39.44 43.0 58.2 0.05
Britannia Inds.

5,979.89 31.74 11.47 22.15 34.6 24.7 0.92
Cadbury India

1,504.25 5.08 1.47 0.00 33.9 42.1 0.03
Swojas Energy 10.99 0.00 0.96 0.00 0.0 0.0 0.47





42

Annual Performance 2010-11
In an environment that is becoming increasingly competitive and in a business whose
profit and profitability are greatly impacted by commodity inflation, profit from
operations increased from Rs. 1,248 MM to Rs. 1,794 MM. Your Company added Rs.
8,194 MM to the gross sales, which grew 23.9%. Earning per Share was Rs.12.16. The
tables below show trends in performance across key parameters:



43



In this Walk the Talk on NDTV 24X7, Vinita Bali, MD, Britannia, talks to The
Indian Express Editor-in-Chief Shekhar Gupta on why malnutrition is a sleeping
emergency that needs urgent action.

Indian Express, 13th September 11

I am at Delhi's Lady Sri Ram College for Women. My guest is one of the most
famous alumni of this college and one of India's most powerful CEOs, Vinita Bali.
Somehow corporate power and success is not something that you associate with
women-anywhere; not just in India.
It's interesting when we look at new recruits coming into the corporate world-it's almost
50-50 now. I remember when I passed out, we were 10 per cent women and 90 per cent
men. Things are changing.

Chocolates, soft drinks, biscuits. Do people tell you, 'Vinita Bali, you spent all your
life selling junk'?
They don't quite use the word 'junk'. Whenever somebody says that to me now, I say
look, I can't argue with the fact that fruit is more nutritious than biscuit, but I can tell you
biscuit is a whole lot more nutritious than a lot of other stuff we eat like puris, papri-
chaat, samosas and gulabjamun.


44

You have been talking a lot about nutrition now. What got you focused on
nutrition? And don't sell biscuits please.
No, this has nothing to do with biscuits. I'd rather say it as a story. Soon after I joined
Britannia and I have to use the biscuit analogy because I was walking through one of our
factories and I saw cases and cases stacked up in the factory. When I asked what these
were for, I was told that these were biscuits that we were making for the United Nations
as part of the World Food Program and these are made according to a WFP recipe and
largely used in areas where there is either a natural calamity or war.

You have been sending quite a lot of that to Afghanistan, for example.
We have been sending it to Afghanistan, Japan (during the tsunami) and Pakistan. Biscuit
is actually a great carrier of both calories and micro-nutrients. The thing is that what you
need at times, whether it comes through biscuits or anything else, is not just macro-
nutrients but also micro-nutrients. So one of the things that struck me was here we are
making calorie-dense and nutrition-dense biscuits for the world.

So you think the debate over malnourishment has got mixed up with the debate over
starvation? Is malnourishment being confused with starvation?
Absolutely. I think if you look at it, nutrition is one of those agendas or priorities that
finds its place nowhere. There is food, agriculture, food security, health and education.
There were some good programmes that we started in our country in 1975 through ICDS
(Integrated Child Development Services), which was aimed at addressing the issue of
malnutrition. But here we are, 35 years later, facing this gory statistic which says one out
of every three children born in this country is born underweight.

You have now been talking a great deal about malnutrition. When you say this to
people, do they assume you want to sell them biscuits? Tiger biscuits with something
in it. If they are malnourished, feed them cake and biscuits.
Not at all. I am not here selling biscuits. I am talking as a citizen of this country who got
into this area through her work. This talk has nothing to with Britannia. I can leave
Britannia and still be as passionate.
45

Supplements as in tablets?
And through food, nutritionally-dense food that can be locally produced. The third thing
is mass fortification of food. An example that has been successful in our own country is
the addition of iodine in salt. Let me give you another example. I lived in Santiago, Chile,
and no children were anaemic there. When I say none, I mean a statistically insignificant
proportion. One of the reason for this is that in 1954, Chile decided to fortify its staple
flour with iron.

Which means all soya sauce sold in China has to have iron in it?
Absolutely. It is a regulation. When we sell any food product, there are certain rules and
regulations and this is something that can be mandated. Countries that have done that like
Thailand, Mexico and Brazil have seen a lot of success.

Is it possible, technically, to fortify rice in India?
I believe so. You can fortify all flour, packaged foods and bread. We are sitting right here
in Delhi where bread is called double roti and we even consume it with daal.

Which five foods would you fortify and how?
I would fortify grains, oil, milk, packaged foods like breads and biscuits, and any drinks,
like juice.
What is the next step you are planning?
There are several things. Two years ago, we created the Britannia Nutrition Foundation.
Every year, during the national nutrition week, we organise a seminar and it has nothing
to do with biscuits that we sell. It brings together people from diverse sectors such as
scientists and nutritionists.



46

AN ARTICLE FROM ECOCONOMIC TIMES
18
th
March, 2010

"We realised that requirements of trade are evolving," Britannia Industries MD Vinita
Bali told ET. The integration of sales force Britannia's third in four years will help
the firm gain from synergies in distribution and replenishment, and expand the reach of
its dairy products manifold. Trade rivals said it's a move to improve profitability of the
country's leading biscuit marketer, with a 31.7% value share. Britannia posted a net profit
margin of 2.9% in the quarter ended September due to high cost of raw materials such as
milk and cashew nuts. "It certainly looks like Britannia is on an overdrive to cut costs," a
senior executive of a competing firm said on condition of anonymity.
The integration of the sales team, the person added, is more to report higher profits than a
response to competition. Another executive of a rival firm said, "If the aim is to cut costs,
it's a good move; but if the aim is to generate topline growth, probably not." Britannia
makes dairy products such as UHT milk, curd, fortified milk brands Actimind, Tiger Zor
and most recently gourmet cheese, for which it has tied up with a factory in the Swiss
Alps.
The dairy division, which accounts for close to 5% of its total sales, has doubled sales in
four years. The integration of dairy with biscuit distribution would expand the reach of
Britannia's dairy products manifold without the company actually making substantial
investments, ChanchalBiyani, an analyst at Mumbai-based brokerage firm GEPL Capital,
said. But the move has led to discontentment among a few distributors because they will
have to invest in cold storage warehousing for dairy products.
Some distributors, who did not wish to be named, have decided to quit the company's
dealership. "Britannia enjoys higher margins for dairy products and they want us to push
it even in institutions such as restaurants and hotels where such products are seldom
used," said a distributor who exited the partnership recently.


47

Not Just A Cookie Cutter
BE Straight talk
Brand Equity 22nd Dec 2010

Health and wellness may be the new mantra for food companies, but Vinita Bali of
Britannia Industries says taste and fun are two ingredients one shouldn't miss out
on, when it comes to the munchies

If there's one aspect of the business that excites Vinita Bali the most, it's the market visit.
It's the field visit that provides the vital ingredients necessary to run the business that
she's responsible for. "One doesn't learn anything by reading marketing books. Marketing
has to be experienced and for that one must step out," says Bali, MD of Britannia
Industries as we meet at the spacious sea-facing Britannia guest house in central Mumbai.
Market visits, she adds, are not just about looking at biscuits' off-take but to know more
about the lifestyle, consumers are leading now-a-days.

Indeed keeping a ear to the ground is crucial if one is in a segment as competitive as
biscuits. And for Britannia, it's not just the biscuits category, but also dairy and bakery
segments which are keeping Bali on her toes. With a phased launch of ActiMind in the
south and expansion of the Daily Bread stores into Goa and Bangalore, the span of
activity for Britannia has moved beyond biscuits. When it comes to the biscuits segment,
Bali says that the business is now divided into health and wellness and lifestyle and
indulgence. According to the Nielsen Company, the total size of the biscuit market is
around 11,000 crore with segments like glucose, cookies and even biscuits in the
indulgence category. Recently ET had reported that Mumbai based Parle Products has a
share of 45% of the biscuit market, compared to Britannia's share of 38%. Bali says that
the segments that are showing growth are not the glucose segment. Citing Nielsen
company for YTD (year-to-date) September 2010, total biscuit category is growing at
16% and glucose is growing at 7%. "And Britannia's first six month growth is 28%," she
says. In the rural markets, the segment that's growing the fastest is cookies, she adds.
48

"That's because the value for money perception has dropped. Now cookies are available
for 5. Therefore, consumers don't mind spending some more money to buy cookies."

Bali is not perturbed about the market share game as she believes the overall market is
showing robust growth. "We have seven power brands and they are showing above 20%
growth. The good news about operating in India is that we have a large population base at
every price points. Right from street food at Chowpatty to gourmet restaurants, there are
enough consumers." Even as the health and wellness plank is slowly enveloping the
market, Bali says one must be careful not to compromise on taste while serving healthy
snacking options. "Beyond a point, one is not going to sacrifice taste for health," she
says. Not wanting to put a finger on the total size of the health and wellness market, she
says there's an increasing awareness among Indian consumers given the numerous
medical problems.

It was in 1997 that Britannia launched the 'eat healthy, think better' platform, which
according to Bali was a very forward looking thing to do. But the first mover advantage
to ride on the health and wellness plank has only acquired currency today. "At that time,
it was more generic to biscuits and it was selling the category more than selling
individual brands or products," says Bali. Over the years, the realisation was that a mere
slogan didn't mean anything. "Consumers need a reason to choose Britannia, why is it
healthy? About two years back, we realised that we were sitting on big equity albeit
latent. We had to activate it and that can be done by giving it credibility. And one
becomes credible when one makes the claims tangible." The company, she adds, then
removed what's not and added what's beneficial to consumers in its products.

From biscuits, Britannia has diversified into dairy and bakery. Is packaged water now the
next step for Britannia? "In a sense we are in beverage because we sell milk. But just
because we are in the foods business it doesn't mean we should be in the water or juice
business. We need to have a certain competency to be relevant and the category has to be
profitable for one to take active interest. Between, bakery and dairy, we are seeing high
double digit growth and we believe we are better off doing what we do best."
49

CASE STUDY

SUCCESS STORY OF TIGER BISCUITS

Britannia Industries Limited (BIL) has emerged as one of the largest food companies in
India by 1999. According to a survey conducted by ORG-MARG and A&M, Britannia
was the fifth most popular brand in India in 1997 and was the only brand belonging to the
food category to figure in the top 10. A strong brand name, superior quality products and
an enviable distribution network had helped BIL become the market leader with 40%
share in Indian biscuits market.
The company has rationalised its product portfolio, pruning the number of brands from
35to 25, so that if it can devote greater attention to key businesses. In 1998, the company
moved into the mass market for biscuits introducing low priced varieties under the
umbrella brand, TIGER. The success of this brand has enabled Britannia expand its
market share in the Glucose biscuit market from 10% to 20%. While growth rates in
the mid-priced and premium biscuits have flagged, it is TIGER which has kept
Britannias biscuit business roaring. Market share: Britannia-43%, parle-33%, bakeman-
11% and other 13%.







50


RURAL MARKET- A WORLD OF OPPORTUNITY
According to a National Council for Applied Economic Research
(NCAER) study, there are as many middle income and above households in the rural
areas as there are in the urban areas. There are almost twice as many low middle
income household in rural areas as in the urban areas. At the highest income level there
are 2.3 million urban households as against 1.6 million households in rural areas.
Today TIGER is a Rs. 200 crore brand with a market share of 24%.
Having grown at 25% to 30% in the past growth is fast slowing down. TIGER has been
positioned as a nutritional product with the new logo being EAT HEALTHY THINK
BETTER. The high nutritional value includes carbohydrates, proteins, calcium, etc.
The companys latest offering is Britannia Tiger Chai Biscoot. The
product has been launched in Maharashtra, West Bengal and Karnataka on the flagship
TIGER. The TIGER brand currently has four variants including TIGER Cashew
Badam, TIGER Protein, TIGER Coconut and now Chai Biscoot. Britannia with its
TIGER brand of biscuits with its low priced and convenient package products designed
for the rural masses have been other pioneers in rural marketing. Thus, Britannia has been
able to derive more than 30% of their revenues from rural market.








51

THE BRITANNIA TIGER LAGAAN MATCH
This was how the campaign took place: You needed to purchase a 100gm. Pack of
TIGER biscuits for which you will get a special Britannia Lagaan Booklet.10000 early
birds will win a prize. There is also the possibility of being selected in the team that will
play against the Lagaan X1 team. Britannia pumped in around Rs. 2.5 crores to ensure
the success of this promotional offer. Analysts say that there was an incremental 20%
jump in sales when the scheme was on. This promotion was done in both the rural and
urban areas, thus it not only gave the company an increase in the sales but also gave the
brand and the company recognition.

THE BRITANNIA TIGER BACHAO ANDOLAN
This was conducted by Britannia Industries with a view to reach its rural customer and
also the target segment. This took place in the year 1998 when the company undertook
the responsibility of protecting the tiger community hand in hand with the forest
department of Gujarat, MP, etc. this was done by selecting from a village in Rajasthan.
The campaigns is still being carried out by the company and is one of the successful ones.
It has become a social responsibility of the company.


HOARDINGS
There are hoarding, which are put by the company in the rural|semi urban areas. The
hoardings are mostly put up with complete information regarding the product. The
information is given in the local language in order to let people know about the product.
The hoardings also have the mascot tiger which emphasizes a strong healthy individual.



52

T.V.
The various ad campaigns throughout the country are done by preparing a single
advertisement but the language in which it features is according to the regional language
of that state. The ads include famous personalities like Saurav Ganguly. The ads mainly
focus on the children in rural areas are often given small packs at a confessional rate and
at times they are distributed as free samples.

QUESTIONS
Q.1) Critically examine the factors that have contributed to the success of TIGER biscuits
in the market.
TIGER biscuits has been playing an important productive role in Britannia
industries. From the day it was launched it has been able to capture the maximum
Britannia shares in biscuits. The factors that Britannia was able to set such standards is
due to its rigorous advertisements in TV. and also movies such as lagan. The pricing
factor is also important it has the minimum cost with maximum value and even volume.
The packaging is quite attractive and is been liked by almost all age group people.









53

QUESTIONNAIRE AND BRIEF ANALYSIS DATA

1) Which is your favourite biscuits?

As good day has good positioning strategy and has done good marketing, so good day has
got maximum of likes of 40% following to 50-50, borbon and later the other biscuits.
Mostly children like good-day and bourbon compared to other biscuits.

2) Are you aware about the different Britannia products available in the
market?


About 70% of them are aware about the different brands available in the market and
even the products that come under Britannia brand. Some are unaware about the brand of
the biscuits.
40%
25%
30%
15%
GOOD DAY
50-50
BOURBON
OTHERS
70%
30%


YES
NO
54

3) Do you like the advertisements made by Britannia company compared to
other brands?


The tag line of Britannia that is tin tintintin is 68% famous compared to other biscuits brands.
Mostly advertisements are more attractive to kids rather than other targeted audience.

4) Are the Britannia products cost effective?


75% of the Britannia biscuits are cost effective such as tiger. 50-50, marie gold, and even
goodday to some extend but than some biscuits such as borbon, and nutria choice are
priced high compared to other brand biscuit range.



50%, 25%
15%, 7%
68%
YES
NO
OK
75%
25%
PRICING
YES
NO
55

5) Do you remember the tag line and the brand ambassador of Britannia?

55% of them remember Sachin Tendulkar as a brand ambassador for Britannia
biscuiots and tin tintintin as their tagline. But the advertising has buildgood
brand image in minds of kids for biscuits.


6) Do you think that Britannia biscuits are more nutritious compared to other
biscuits available?


65% say yes, and some agree to some extend. According to survey not all Britannia
biscuits are nutritious of Britannia but yes some like nutria choice, raggi biscuits and all
are healthy and being liked by all age group of people.

45%
55%
YES
NO
65%
25%
10%
YES
NO
NOT SURE
56

7) Does advertisement make any effect on your purchasing decision?

45% respondents say yes that advertising do make some effect on their purchasing,
specially when they have their chidren purchasing with them. The tendency to taste is
born after seeing the advertisement. Some say that they are brand loyal and wont try
anything new , were as some say that they always have a tendency to taste all the
products.

8) Mostly when do you eat the biscuits?


According to respondents, 55% biscuits are mostly consumed during tea time whether its
morning or evening or while travelling, sometimes just as a time pass. It deoends on the
type of biscuit also.

45%
35%
20%
YES
NO
SOMETIMES
55%
20%
25%
TEA TIME
TIME PASS
TRAVELLING
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9) Which other brands do you think can be compared with Britannia?

45% of the respondents, compared Britannia biscuits with ITC biscuits as even they have
got good advertising done due to which people get influenced to purchase the
product.parle and priyagold is liked just because it is cheap and has got a good volume
compared to Britannia products.

10) Are you satisfied with the pricing, quality, quantity and positioning strategy
of Britannia company?


Pricing according to quality is good as most of the Britannia products are nutritious and
due to which people now-a-days are very health conscious and they wont mind paying
more for something that has value added in it.
45%
35%
20%
ITC
PARLE
PRIYAGOLD
70%
30%
YES
NO
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CONCLUSION
Britannia purpose: help people enjoy life through healthy snacking, make enjoyable food,
healthy and accessible to all people, anytime, anywhere-everyday. Britannia products
span multitude product categories in baking and dairy with strong health targeted entries.
Britannia approach to health and nutrition: targeted health entries, specialized products.
Fortification of popular products. Fortified products made accessible and affordable.
H & N initiatives, Britannia leads through product and thought leadership in India.
Fortification, zero trans fat, health entries, nutrition alliances, Clinton global initiatives,
creating knowledge.
In India a complex inter-network of culture, food behaviours, economic strata and health
levels. Helping health seekers make better snacking choices that are Good For
Thinking.

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BIBLIOGRAPHY\ WEBLIOGRAPHY

1. Centre for monitoring indian economy (cmie) (2001-02 to 2009-10). Monthly review
of the indian economy. New delhi: cmie.
2. Centre for monitoring indian economy (cmie) (2000-01 to 2009-10). Prowess
database. New delhi: cmie.
3. Government of india (1990-91 to 2009-10). Economic survey.Newdelhi: ministry
of finance, department of economic affairs, government of india.
4. Reserve bank of india (1995 to 2010). Monthly bulletin. Mumbai: department of
statistics and information management, reserve bank of india.
5. Government of india (1990 to 2008). Statistical abstract india. New delhi: ministry
of statistics and programme implementation, central statistical organization,
government of india.
Website: http:// www.britannia.co.in/britannia_ar_2010
http://www.dabur.com/about%20dabur-historyhttp://
http://www.indiainfoline.com/markets/company/.../dabur-india.../500096
www.coolavenues.com
www.eds.com
www.ssrn.com
www.britindia.com
www.britannia.com
www.economictimes.com
www.articles.com
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