INDEX

SR

CONTENTS

NO

PAGE
NO.

.
1.

INTRODUCTION

2.

COMPONENTS OF IMC

3.

THE SHIFT FROM FRAGMENTED TO IMC

10

4.

TOOLS OF IMC & ITS BENEFITS

12

5.

BRITANNIA COMPANY PROFILE

13

6.

COMPANY HISTORY

15

7.

BRITINIA-LAUNCH OF VARIOUS

18

8.

PRODUCTS
BRITINIA- MARKETING

21

9.

SALES-GROWTH STRATEGY

32

10.

BRITINIA-ADERTISING

34

11

BRITINIA- THE COMPETITON

36

12

CONCLUSION

39

13

BIBLIOGRAPHY

41

Introduction:-

Integrated marketing communications (IMC) is an approach used by

organizations to brand and coordinate their communication efforts. The
American Association of Advertising Agencies defines IMC as "a
comprehensive plan that evaluates the strategic roles of a variety of
communication disciplines and combines these disciplines to provide clarity,
consistency and maximum communication impact. " The primary idea behind
an IMC strategy is to create a seamless experience for consumers across
different aspects of the marketing mix. The brand's core image and messaging
are reinforced as each marketing communication channel works together as
parts of a unified whole rather than in isolation.

An approach to achieving the objectives of a marketing campaign, through a

well coordinated use of different promotional methods that are intended to
reinforce each other.
As defined by the American Association of Advertising Agencies, integrated
marketing communications " ... recognizes the value of a comprehensive plan
that evaluates the strategic roles of a variety of communication disciplines
advertising, public relations, personal selling, and sales promotion and
combines them to provide clarity, consistency, and maximum communication
impact."

Integrated Marketing Communication (IMC) is the application of consistent

brand messaging across both traditional and non-traditional marketing channels
and using different promotional methods to reinforce each other.
It is essential for organizations to promote their brands well among the endusers not only to outshine competitors but also survive in the long run. Brand
promotion increases awareness of products and services and eventually
increases their sales, yielding high profits and revenue for the organization.
To understand integrated marketing communication, let us first understand what
does brand communication mean?
Brand communication is an initiative taken by organizations to make their
products and services popular among the end-users. Brand communication
goes a long way in promoting products and services among target consumers.
The process involves identifying individuals who are best suited to the purchase
of products or services (also called target consumers) and promoting the brand
among them through any one of the following means:
Advertising
Sales Promotion
Public Relation
Direct Marketing
Personal Selling
Social media, and so on
Integrated Marketing Communication - Let us now understand what does
integrated marketing communication mean?

Integrated marketing communication refers to integrating all the methods

of brand promotion to promote a particular product or service among
target customers. In integrated marketing communication, all aspects of
marketing communication work together for increased sales and maximum cost
effectiveness.

Various components of Integrated Marketing Communication:

1. The Foundation - As the name suggests, foundation stage involves
detailed analysis of both the product as well as target market. It is
essential for marketers to understand the brand, its offerings and endusers. You need to know the needs, attitudes and expectations of the
target customers. Keep a close watch on competitors activities.

2. The Corporate Culture - The features of products and services ought to

be in line with the work culture of the organization. Every organization
has a vision and its important for the marketers to keep in mind the same
before designing products and services. Let us understand it with the help
of an example.
Organization As vision is to promote green and clean world. Naturally its
products need to be eco friendly and biodegradable, in lines with the
vision of the organization.

3. Brand Focus - Brand Focus represents the corporate identity of the

brand.

4. Consumer Experience - Marketers need to focus on consumer

experience which refers to what the customers feel about the product. A
consumer is likely to pick up a product which has good packaging and
looks attractive. Products need to meet and exceed customer expectations.

5. Communication Tools - Communication tools include various modes of

promoting a particular brand such as advertising, direct selling,
promoting through social media such as facebook, twitter, orkut and so
on.

6. Promotional Tools - Brands are promoted through various promotional

tools such as trade promotions, personal selling and so on. Organizations
need to strengthen their relationship with customers and external clients.

7. Integration Tools - Organizations need to keep a regular track on

customer feedbacks and reviews. You need to have specific software like
customer relationship management (CRM) which helps in measuring the
effectiveness of various integrated marketing communications tools.
Integrated marketing communication enables all aspects of marketing mix to
work together in harmony to promote a particular product or service effectively
among end-users

Integrated Marketing Communications

Prior to the emergence of integrated marketing communications during the
1990s, mass communicationsthe practice of relaying information to large
segments of the population through television, radio, and other media
dominated marketing. Marketing was a one-way feed. Advertisers broadcasted
their offerings and value propositions with little regard for the diverse needs,
tastes, and values of consumers.
Often, this "one size fits all" approach was costly and uninformative due to the
lack of tools for measuring results in terms of sales. But as methods for
collecting and analyzing consumer data through single-source technology such
as store scanners improved, marketers were increasingly able to correlate
promotional activities with consumer purchasing patterns. Companies also
began to downsize their operations and expand marketing tasks within their
organizations. Advertising agencies were also expected to understand and
provide all marketing functions, not just advertising, for their clients.
Today, corporate marketing budgets are allocated toward trade promotions,
consumer promotions, branding, public relations, and advertising. The
allocation of communication budgets away from mass media and traditional
advertising has raised the importance of IMC importance for effective
marketing. Now, marketing is viewed more as a two-way conversation between
marketers and consumers. This transition in the advertising and media industries
can be summarized by the following market trends:

a shift from mass media advertising to multiple forms of communication

the growing popularity of more specialized (niche) media, which considers
individualized patterns of consumption and increased segmentation of consumer
tastes and preferences the move from a manufacturer-dominated market to a
retailer-dominated, consumer-controlled market the growing use of data-based
marketing as opposed to general-focus advertising and marketing greater
business accountability, particularly in advertising performance-based
compensation within organizations, which helps increase sales and benefits in
companies unlimited Internet access and greater online availability of goods and
services a larger focus on developing marketing communications activities that
produce value for target audiences while increasing benefits and reducing costs

Benefits of Integrated Marketing Communications

With so many products and services to choose from, consumers are often
overwhelmed by the vast number of advertisements flooding both online
and offline communication channels. Marketing messages run the risk of
being overlooked and ignored if they are not relevant to consumers' needs
and wants.
One of the major benefits of integrated marketing communications is that
marketers can clearly and effectively communicate their brand's story and
messaging across several communication channels to create brand
awareness. IMC is also more cost-effective than mass media since
consumers are likely to interact with brands across various forums and
digital interfaces. As consumers spend more time on computers and
mobile devices, marketers seek to weave together multiple exposures to
their brands using different touch points. Companies can then view the
performance of their communication tactics as a whole instead of as
fragmented pieces.
The other benefit of integrated marketing communications is that it
creates a competitive advantage for companies looking to boost their
sales and profits. This is especially useful for small- or mid-sized firms
with limited staff and marketing budgets. IMC immerses customers in
communications and helps them move through the various stages of the
buying process. The organization simultaneously consolidates its image,
develops a dialogue, and nurtures its relationship with customers
throughout the exchange. IMC can be instrumental in creating a seamless
purchasing experience that spurs customers to become loyal, lifelong
customers.

The Tools of Integrated Marketing Communications

The IMC process generally begins with an integrated marketing
communications plan that describes the different types of marketing,
advertising, and sales tools that will be used during campaigns. These are
largely promotional tools, which include everything from search engine
optimization (SEO) tactics and banner advertisements to webinars and blogs.
Traditional marketing communication elements such as newspapers, billboards,
and magazines may also be used to inform and persuade consumers. Marketers
must also decide on the appropriate combination of traditional and digital
communications for their target audience to build a strong brand-consumer
relationship. Regardless of the brand's promotional mix, it is important that
marketers ensure their messaging is consistent and credible across all
communication channels.

10

BRITANNIA- COMPANY PROFILE

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) a UK based company.
During the 50s and 60s, Britannia expanded operations to Mumbai, Delhi and
Chennai. Exports of sea foods started in the 70s. In 1987, Nabisco, a well
known European food company, acquired ABI. In 1989, J M Pillai, a Singapore
based NRI businessman along with the Groupe Danone acquired Asian
operations of Nabisco and thus acquired controlling stake in Britannia. Later,
Groupe Danone and Nusli Wadia took over Pillais holdings.
In 1977, the Government reserved the industry for small scale sector,
which constrained Britannia's growth. Britannia adopted a strategy of engaging
contract packers (CP) in the small scale sector. This led to several inefficiencies
at the operating level. In April 97, the Government dereserved the biscuit
sector from small scale.

Britannia has expanded captive manufacturing

facilities and has modernized and upgraded its facilities in the last five years. It
has also forayed into the Dairy Business with the launch of Cheese, Butter,
Ghee, Dairy whitener and flavored milk products.

11

Britannia's controlling stake is jointly with Groupe Danone and Nusli

Wadia. The Company is controlled by the Wadias. Danone provides product
support and technical assistance to the venture. Groupe Danone is one of the
leading players in the world in bakery products business. It acquired interest in
Britannia Industries in 1989 and acquired controlling stake in 1993. The Wadia
Group, headed by Nusli Wadia, is one of the leading industrial houses in the
country, with interests mainly in textiles and petrochemicals.
Britannia is the market leader in the organized biscuit and bakery
product market in India. They are the only Indian biscuit company with a
presence across all segments, from Glucose, Salted, Arrowroot and Premium
Cream Biscuits. Biscuits contribute 84% of Britannia's total turnover. Other
products include bread (6 per cent) and cakes (2 per cent). Britannia diversified
into dairy products in 1997 with processed cheese and dairy whitener. The
portfolio was expanded with the launch of butter, pure, flavoured milk in
tetrapacks and UHT milk.

Dairy products account for 8 per cent of the

companys total turnover. Over the years, Britannia has trimmed down its wide
product portfolio and focussed on value-added instead of low-margin products.
The company divested a range of unrelated business interests in soyabean
extraction, edible oils, export of cashewnuts and shrimp, granites and software.
The company rationalised its products portfolio by reducing the products from
35 to around 25.

Britannia has share of 20 per cent in the biscuit market. In the

organised biscuit market, the market share is higher at 40 per cent. The
company claims a share of 33 per cent of the organised cheese market and 15
per cent of the milk powder.

12

Plant locations
Britannia's plants are located in the 4 major metro cities - Kolkatta,
Mumbai, Delhi and Chennai. A large part of products are also outsourced from
third party producers. Dairy products were out sourced from three producers Dynamix Dairy based in Baramati, Maharashtra, Modern Dairy at Karnal in
Haryana and Thacker Dairy Products at Howrah in West Bengal.
Competitive position : The entry of new MNCs have not posed a direct threat
to Britannia, as these MNCs have positioned their brands in the premium/health
segment. Britannia has maintained market leadership with a 40% volume share
and 48% value market share in the organized sector. FMCG major HLL is
expected to venture into the segment. Britannia has been aggressive in new
launches and marketing during the last 2 years anticipating the competition. It
has also recently acquired a stake 49% stake Kwality Biscuits, gaining a. strong
foothold in the southern market
Bread is one of the most widely consumed processed foods in the country. The
market is estimated at 1.5mn tpa. The industry is dominated by a large number
of players in the unorganized sector, which accounts for over 80% of the
market. Britannia Industries and Modern Foods (now owned by HLL) are the
only two players with a national presence in packet slice bread segment. There
are several other regional players who have significant market shares in their
respective local areas. Britanniass bread business has been slowly degrowing
and registered a 9.4% yoy volume degrowth in FY01.
Dairy : India has emerged as the largest milk producing country in the world
manufacturing 81mn tons of milk pa. The country has one of the largest
livestock populations of the world and this industry plays a crucial role in terms
of providing income to around 70 million farmers in 500,000 villages. The top

13

6 states viz. Uttar Pradesh, Punjab, Madhya Pradesh, Rajasthan, Tamil Nadu
and Gujarat account for 58% of Indias milk production. The market size of
milk in India is worth Rs 45,000 cr and more than 90% of the market is
unorganized. Britannia has forayed into this huge market under a brand called
Milkman. Britannias dairy business has been growing at a fast pace on the
low base. Volume growth was 50% and value growth was 47% in FY01. In
value terms the Dairy business contributed to 10% of turnover in FY01. Prior to
the entry of Britannia, the organized market for dairy products like butter and
cheese was dominated by the regional milk cooperatives, such as Amul, Vijaya,
etc. Imported brands are also freely available in the country today. In the
organized domestic segment, Amul remains the dominant player and will
continue to be a stiff competitor, given its sourcing advantage and market
savviness. Significant entry barriers exist, but once the network is in place, it is
a cash generating business. The dairy market offers long-term opportunities for
organized players such as Britannia. Britannia outsources its milk requirement
from Dynamix Diary in Maharashtra and Karnal Dairy In Haryana.
Operating margins have been improving despite the fast pace of new product
launches in the last 2-3 years. Rationalization of manufacturing operations, and
greater contribution of higher margin dairy products have both contributed to
the margin gains. Britannia has decided to hive off its dairy business into a joint
venture with the New Zealand based Fonterra Cooperative. Britannia and
Fonterra will each hold 49% of the Rs2.25bn equity, while the balance 2% will
be held by business associates.

14

Britannia- The Highlights

Largest manufacturer of Biscuits in India
Product range includes breads and cakes
One of the best known brands, Britannia is the largest company in the Indian
food processing industry
Four production facilites with over 4367 employees.
Extensive all India distribution network of over 600,000 outlets, making it
among the most wide spread in the industry.
Exporter of various types of Biscuits.
BRITANNIA- THE LAUNCH OF VARIOUS PRODUCTS
Britannia constantly expands its product portfolio to achieve its vision of
converting every third Indian into its consumer. In order to appeal to the
younger generation, the company added two new products -- Sweet Lassi and
Britannia Milkman Cold Coffee to its existing dairy-based drinks portfolio
which includes the `ZipSip' brand of flavoured milk.

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 ki Bhujia' and
'Rajasthani Alu Bhujia' in a price range of between Rs 5 and Rs 20.
Tiger biscuits launch in July 1997 led Britannias foray into the glucose
category. Tiger now contributes about 40% to the biscuits turnover and has
been Britannias biggest success. The company has Tiger brand in the lowprice-low income segment. In this segment, value growth is lower than

15

volume growth. Tiger brand operates in a competitive market where price is

an important factor.
In Dec. 2000, Britannia dropped its plans to enter the mineral water
segment. The move comes close on the heels of Danone launching its own
mineral water brand, Evian, in India, through a separate wholly-owned
subsidiary, Danone India. Groupe Danone is globally the second-largest
producer of mineral water in the world with brands such as Evian, Volvic,
Ferrarelle Badoit, Font Vella and Aquaprima among
others. The mineral water segment in India is
growing at around 50% annually and is dominated
by Bisleri and Bailley.
In 2001, the launch of Maska Chaska, the
snack biscuit extension of Britannia's 50-50, is
selling more than the mother brand in certain markets like north Karnataka.
And in doing so, Maska Chaska is contributing nearly 30% to the mother
brand 50-50's total sales across the country
In October 2001, Britannia had agreed in-principle to acquire a 49%
stake in Snacko Biscuits, a privately held company, along with the
trademark `Nutrine` and several other trademarks in addition to their
copyrights and designs.
In 2002, the company acquired Kwality biscuits. BIL acquired the trade
mark "KWALITY", the Chef Device and several other trademarks owned by
Kwality Biscuits of Bangalore for a consideration of Rs 30 crore. It also
agreed in principle to acquire 49% equity of Kwality Biscuits.
In March 2002 , Britannia entered into a joint venture with the
Fonterra Cooperative Group, New Zealand. BIL has transferred its dairy
business to the new joint venture. The joint venture was effective from 27th

16

March 2002 and is engaged in areas relating to sourcing/manufacturing and

distribution of milk and milk products in India.
In March 2002,Britannia Tiger Chai Biskoot a new variant of the Tiger
brand the new hit major Indian markets. With this new launch, the objective
was to target all income groups in India and strengthen the mother brand
Tiger. The product is priced at Rs 4 for 75 gm and Rs 15 for 300 gm.
In October 2002, Tiger Mast Cream was launched across the nation.
This launch comes subsequent. This was with a view to fulfil another impulse
buying need of the consumer and to leverage the companys Brand portfolio , of
which Tiger was one of the core brands.
On April 02, 2003 Britannia Industries Ltd (BIL rolled out
Britannia Timepass in metros and mini-metros. The selling proposition for
the new snacking range was tasty yet healthy snacking option. The products
are available in two pack sizes of 25g and 50g, priced at Rs 5 and Rs 10
respectively. The launch of Timepass in the snacking category was an effort by
the company to try and strengthen its presence in the snacking segment.
At the moment, Britannia is in the process of rolling out a new variant of its
popular biscuit brand Tiger Mast Cream across the country. The company is
also extending its Little Hearts range to penetrate the youth segment more
effectively. The consumer response for GoodDay has been encouraging. The
price of GoodDay has been taken up only in the south Indian markets to bring in
parity. This brand has shown a healthy growth. The two new variants of Tiger
Chai Biskoot and Mast Cream -- have also met with enthusiastic response.
Such initiatives will enable the company to maintain its growth momentum.

17

BRITANNIA MARKETING
Promotions have been the chief propeller for growth for Britannia. Britannia has
gained the edge by creating an emotional surplus for the Britannia brand
through effective communication and providing products for different moments
of consumption. Another equally important move is exciting the consumer with
new products
Among the biggest promotions in 2001 was Britannia's glucose biscuit brand
Tiger's tie-up with the Hindi film blockbuster Lagaan. Biscuits market has
become the third largest category in terms of promotions - after toothpaste and
toiletries - in the last one year.The launch was supported with an advertising
campaign extending to print, POS (Point-of-Sale) materials and outdoor
branding.
Tiger had been positioned it as a biscuit that has to be taken as part of the chai
biscuit break. Chai Biskoot is an interesting extension, which will strengthen the
Tiger mother brand as the product is targeted at people across all income
groups. Tiger has successfully addressed themselves to the lower end of the
market.
Britannia's strategy has also been to drive margins from variants rather
than the mother brands. Britannia's strategy is to keep the price of its mother
brand at the lowest and launch variants at the higher price points and this has
worked for the company till date. Eg. Britannia has leveraged the equity of
Glucose biscuit brands like Tiger to extend it to variants like coconut. Britannia
is clearly playing a volume game. It is driving volumes through the Tiger brand.

18

Another strategy has been to indulge in cross-promotions. In 2000,For

example, the company offered a Little Hearts biscuit packet (priced at Rs 3) free
with the purchase of a 300 gm pack of Tiger. This also helped in pushing trials
for the Little Hearts brand.
Britannia believes its all about how you define the market, or how you redefine
it for yourself. At Britannia they came up with a one-line vision for the
company 'Every third Indian must be a Britannia consumer by 2004.' Because
Britannia believes that packaged products can be bought by just about every
third Indian.
Strategically expanding the product line is what Britannia believes in. Just
selling biscuits was not good enough. Britannia listed all the products used in a
home, and the competitors in each space. They then asked themselves if they
could acquire the No. 1 or No. 2 position in that market. Dairy seemed to be a
good area for them to enter. There were mostly large cooperatives without too
many branded products in the space. Amul was the leading producer. So
Britannia chose cheese, and wanted to become No. 2. In three years, they
became No. 1 in processed cheese.
Britannia's success is largely due to the company's razor-sharp clarity of
purpose. No one competes with Britannias low-end brands in terms of price.
Britannia has created an emotional service with their brand, to give the
consumers more than they expect. Britannia says they don't make the best
biscuits in India. What they do provide, however, is consistency-the idea that
wherever you open a packet of Britannia products, you'll get the same thing.
Britannia believes in being realistic and benchmarks itself with what the
consumer expects of them. The consumer in India today needs international

19

products at national prices. Britannia initially gets into an existing category and
then forays into different categories.
A brand built on a "low price-no frill" is what Britannia. Tiger provides a good
example of using this approach. After having achieved success at the lower end
of the market competing largely in the unorganised sector, the brand has
launched cream variants at (relatively) low price points.
Britannia has time and again exhibited its understanding of the Indian consumer.
This has been in the form of new launches, innovative marketing and
promotional schemes. In FY 2001, the company spent Rs 85 cr in advertising i.e
6.7% of net sales. Britannia has tied up with the makers of Lagaan. Britannia
has been associating itself with cricket and has achieved good results.
Brands need to stay relevant by stretching along with the customer and not
expect the consumer to stay with you, brands need to move on, be a part of the
consumers life and create an activated presence by getting the product
involved. The product has done just that.

20

Marketing Strategies of Britannia Industries

Britannia Industries Limited is engaged in the provision of bakery products,
including biscuits, bread, rusk and cakes, and dairy products. The company
primarily operates in India. The companys products include 50-50, Good Day,
Little Hearts, Marie Gold, Milk bikis, Nice Time, Nutri choice, Pure Magic,
Tiger and Treat. It is headquartered in Kolkata, India.

Strategic Planning Key Steps

Vision
To dominate the food and beverage market in India with a distinctive range of
Tasty Yet Healthy Britannia brands.
Every third person, in India, should be a Britannia Consumer.
Mission
To be one of the best biscuit companies.
Objective

21

Goal
To improve profitability
To provide better consumer service
To reduce carbon emissions
Strategy
A strong quality of the product and customer satisfaction
A growing relationship with customer and customer retention
Focus on competitors activity
A growing emphasis on global thinking and local marketing planning

22

BRITANNIA- THE MAKEOVER- EAT HEALTHY, THINK BETTER

Britannia initiated the new positioning in 1996 . They captured logic with
emotion. Their brand equity has been built and nurtured by each and every one
of the employees, who constitute the direct Britannia family, not to speak of the
extended family comprising distributors, suppliers and franchisees. For them,
success comes from becoming a part of their consumers lives. They drive thes
organisation with a passion to produce and market tasty yet healthy products
in which the consumer perceives value for money. They have built the
consumers trust by providing consistent quality and through emotional
bonding.
`Britannia gains most from World Cup promos'
Biscuit major Britannia India's Britannia khao, World Cup jao promotion has
emerged as the most recalled sales promotion among all World Cup-related
cricket sales promotion.
Interestingly, biscuits captured the No 1 slot among all the categories promoted
during the world cup. The campaign was a continuation of the success stories of
`Britannia Khao, World Cup Jao' in 1999. The promotion offered 100 cricket
enthusiasts an opportunity to visit South Africa and cheer the Indian team in
person in a match against Pakistan on March 1, 2003. The offer was valid on
select Britannia products from October 1 2002 onwards.
Wrappers of every such offer pack carried a certain number of runs which could
be exchanged for a specially designed `World Cup '03 scratch card' at any of the
8,000 authorised Britannia Prize centres across the country. On scratching the
pad on the card, the prizes were revealed to the customer. The company's

23

previous world cup promotion campaign held in 1999 was considered one of the
largest consumer promotions ever, wherein redemptions alone were in excess of
Rs 1.6 crore. The 2003 year's `Britannia Khao, World Cup Jao' promotion
featured more than one crore prizes.
Britannia Industries in 2003 had an interesting promotional event called
Britannia Milkman Cheese - not just Toppings. The event was targeted at
housewives and others who love to experiment with cuisine.
A free booklet of recipes was offered and participants were also invited to taste
the dishes. A series of such events were held at ITC Grand Maratha Hotel
Mumbai, through February and will carry on into March.
Besides creating excitment around the brand, the event sought to increase
consumption of Britannia Milkman cheese by encouraging customers to use
cheese in new and versatile ways and be creative and innovative in their
cooking
It reinforces Britannia's core values of "Eat healthy, Think better"
A 'Kids for Tigers' campaign carried out jointly by Sanctuary Cub magazine and
Britannia Industries Ltd. saw one million Indian children signing a scroll to
protect their national animal.
On this occasion an educational scholarship was handed over by Mr.Sunil
Alagh, CEO Britannia Industries Ltd. to Mr. B. Mazumdar Chief Wildlife
Warden Maharashtra, for the children of those forest guards who have done
exemplary work towards the saving the tiger.
Britannia's successful foray into the mass market for biscuits through `Tiger'
brand and into the dairy business gave volumes for Britannia when its

24

traditional businesses biscuits and bread showed signs of plateauing. With

low penetration of dairy products and snack foods, they offered significant
potential for growth. Therefore, unlike FMCG companies operating in markets
for mature products such as soaps or detergents, there appeared to be
considerable room for growth for Britannia.
In a bid to promote its popular biscuit brand 50-50 Maska Chaska, Britannia
Industries Ltd (BIL) has joined hands with Contests2win.com (C2W), a leading
customised contesting Website.
Britannia Industries Ltd announced a three-pronged strategy to maintain
volumes and market share and to improve sales.
Britannia plans to improve their sales through new product launches, renovation
and improving distribution. They will also focus on all-round cost savings and
improvement in productivity to ensure satisfactory growth in profits
Addressing shareholders at the companys annual general meeting, Mr Wadia
said the slowdown in the economy was expected to continue and as such
maintaining historical topline growth rates in the coming months would be
extremely challenging.
On the bakery business, he said the companys strategy was based on increasing
width of consumption through more penetrative distribution strategy and
introducing low price point packs.
The strategy also aimed at maintaining brand leadership through continuous and
contemporary image building apart from increasing depth of consumption
through specific promos to cater to regional preferences.

25

BRITANNIA OUTLINES INITIATIVE TO TAP INNOVATIONS

In an effort to better utilise employee innovations for tapping market
opportunities, Britannia Industries Ltd (BIL) had deployed a new initiative
termed opportunity managers. The rationale behind the initiative, according to
the company, was to leverage out-of-the-box ideas of its professionals to drive
the business forward. It believes that the uniqueness of this practice lies in the
fact that these ideas which the professionals implement need to pro-actively
impact the business.
Any innovative concept that professionals want to implement was
`something that needed to be implemented within a six- month
timeframe. And the deployment of the idea indicated a judicious use of
the companys resources.
Further, according to the company, the initiative is not just meant to
institutionalise a culture of innovation in the organisation, but to empower
professionals to use their innovative acumen to usher in value for the
businesses.
Accordingly, any professional who has a distinct business idea needs to make a
presentation to the top management that also comprises the managing director.
Once the idea is considered feasible for implementation, then the individual
concerned is given complete control to deploy the idea and generate the
promised results for the organisation.
Further, the employee whose ideas have been approved is given total autonomy
to choose the appropriate mix of professionals across levels who need to be a
part of his or her team.
Having pioneered a new concept, the professional then becomes the team leader
for the specific project right from the day it starts getting executed.

26

The audience for this initiative is mainly the talent that the company has
inducted from the management campuses. The younger breed of professionals
are not moulded into a defined mindset and hence Britannia believes that they
have the capability to explore a wider gamut of possibilities to come up with
ideas that can trigger growth for the businesses.
Once the said idea has been able to deliver profitable results for the business,
the employee is suitably rewarded with bonuses. This is an effort on Britannias
part to acknowledge the benefits that the individual has successfully leveraged
for the establishment.

27

BRITANNIA USES CRICKETERS FOR PROMOTIONS

Britannia Industries Ltd (BIL) had signed up six national cricketers, who play
for the Indian team to fuel a mega brand promotion initiative. The move is
aligned to the larger strategy to leverage the three lead brands that the company
has identified across two major categories which include biscuits and snacking
arena. In 2002, Britannia had decided to focus on two segments namely the
biscuits market and the mass market in the snacking arena. And Tiger, 50-50
and Timepass the chosen lead brands in these two categories. The mass market
represents a huge opportunity with its vast consumer base buying both into
branded products and those from the commodity sector. Brands like Tiger, for
instance, owe their success to being able to both gain upgrades from the
unorganised market and increasingly become a preferred brand in the organised
market

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SALES GROWTH STRATEGIES

At a time when growth rates for most FMCG products had wound down to
single digit, Britannia had managed to sustain a fairly healthy growth in its sales
revenues. This was on account of several factors.
One, the company has rationalised its product portfolio, pruning the number of
brands from 35 to 25, so that it could devote greater attention to key businesses.
Britannia has pruned the total number of brands being offered in the market and
those actually being supported through communication initiatives. This has
given the company a strong roster of solid brands
It also reduced contribution from the low-margin breads business to focus on
faster-growing segments such as biscuits and cakes. This appeared to have
resulted in better utilisation of the adspend. Despite sustaining a high-decibel
promotional campaign over the past years, Britannia's adspend-to-sales ratio
hovered at around 7 per cent, lowest in the FMCG universe.
Two, 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 per cent to over 20 per cent.
While growth rates in the mid-priced and premium biscuits had flagged, it was
Tiger which had kept Britannia's biscuit business roaring. Meanwhile, the
company kept up the high-decibel promotional campaign to make known its
other major brands -- 50:50, Mariegold, Bourbon, Pure Magic, Nice, Snax and

29

Milk Bikis. Britannia Khao World Cup Jao and Britannia Khao Crorepati Ban
Jao were among the more successful of these campaigns.
Three, to pep up overall growth rates, the company had also been leveraging its
brand image to establish a foothold outside of the highly competitive biscuit
market. Over the years, it has launched a slew of dairy products (processed
cheese, flavoured milk, butter, ghee and dairy whitener) and ethnic snack foods
such as Aloo Bhujiya and Chana Choor.
The foray into dairy products appears to be a success, with revenues improving
more than two-fold from Rs 38 crore in 1997-98 to Rs 89 crore in 2000-01.
Coffee Outlets and Petrol Pumps
The company is now in talks with speciality coffee outlets and petrol pumps to
place the products at strategic sites. BIL is taking up festival-specific initiatives
to trigger mobility for brands like Pure Magic and GoodDay Cakes. The
company plans to launch a range of assortment packs. The initiative is to
improve institutional sales along with enhancing the display appeal for brands.

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BRITANNIA ADVERTISING
Britannia made its mark in the general public with their first major TV
commercial for Glucose, which showed the then famous character Gabbar
Singh eating the biscuits with the byline- Gabbar ki asli pasand.
Britannia spent Rs. 29 crores in FY97 on advertising, up 39% from the previous
year, and 550% rise since FY91. None of their domestic competitors like Parry
or Bakemans can hope to match this, especially as they largely cater to regional
markets.
Britannia believes in high awareness through two components- one is media
awareness the other relates to point of consumption. The first one means large
advertising spends, and simple messages repeated umpteen times. Eat
Healthy. . Think Better also translated as Swasth Khao Tan Man Jagao
.Those are the key words. Britannia tries to get its message across in four-five
words.
Britannia kicked off its repositioning exercise in 1997 when it changed its
logo and corporate slogan as a first step in its makeover plans aimed at
transforming the company from essentially a 'bakery' business to a 'food'
business. Advertising played a crucial role in the repositioning. Key brands have
been re-packaged and re-launched, backed by very visible national advertising
campaigns.
To announce the new launch of a variant of Tiger- Chai Biskoot, the company
launched a high-voltage television campaign which included six ad films from
March 8 2002. For the first time, Britannia roped in six famous Bollywood
directors to produce these films. Earlier, the adfilms for a particular product was
produced by a single director. They used popular old Hindi film songs as the
back ground music for these commercials. With the tagline Chalo Chai
Biskoot Ho Jain, the commercials were produced by well-known directors Mr
Govind Nihalani, Mr Priyadarshan, Mr Aziz Mirza and Mr Mansur Khan.

31

The launch was supported with an advertising campaign extending to print,

Point-of-Sale materials and outdoor branding.
The ad spend for the current promotion world Cup 2003 would be close to Rs
10 to 12 crore

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BRITANNIA THE COMPETITION

The biscuit market is hotting up with two huge players Hindustan Lever, HLL,
and ITC entering the fray but they still have to get their product mix in place.
They are trying the safe way to bite a share of the mainstream category - the
Maries and the Glucoses.
ITC hasn't had a very smooth maiden run in the biscuit market. Its first product
Bischips-I bicuits was an odd combination of a baked biscuit and a chip and it
didn't go down too well with the consumers. So after eight months of making
little or no impact, ITC pulled the brand off shop shelves. It's now available
only in Bangalore. ITC claims it's the positioning of Bischips that failed.
ITC is not the only company striving to make inroads into the marie-glucose
segment. HLL began with a fruit cream brand called Greedy Bistiks, but is
currently test marketing its brand of glucose biscuits.
Both companies expect over 10% of the biscuit market in the next few years.
But analysts feel that ITC has an edge over HLL with its pan-beedi shop
distribution and the first mover advantage over HLL.
ITC announced the launch of a range of biscuits and expects the biscuits
segment to contribute Rs 150-200 crore to its turnover in the next four years.
They hope to a have a market share of 10-11 per cent in biscuits in three years.
This would, however, still place ITC at number three behind market leaders
Britannia and Parle.
ITC would initially source its biscuits from two factories one in Burdwan in
West Bengal and the other at Nagpur. The outsourcing activity could be
extended to a further two factories in the next three years to support the firm's
growth plans.

33

Naware said ITC had planned an aggressive media campaign to drive the sales
of its biscuits.
As the two new players shape up their entry strategies and products, the existing
players are working harder to hold their ground.
It is a matter of concern that regional players such as Priyagold offer products at
retail prices that are almost half that of established players such as Britannia.
The product offerings from such regional players may not necessarily be
innovative on taste, but are priced very aggressively and do not compromise on
quality. Some of Britannia's products such as Marie, Good Day and Milk Bikis,
for example, have been the victims of this strategy, registering some decline in
market share in recent months. However Britannia is is launching five new
advertising campaigns. Two of these are for its MarieGold and Tiger brands.
Parle too is looking to launch new products as well as re-launch some of the
older brands. Also it's going to start advertising after a gap of almost a year.
Priyagold is not an isolated case. Several small and mid-sized players in the
FMCG sector have been able to shake up big competitors thanks to wellfocused, region-specific, price-sensitive strategies.
This trend is highlighted more in semi-urban and rural markets, known to
occupy a significant share of the overall Rs 3,000-crore domestic biscuit
market. In fact, close to 70 per cent of Priyagold's sales are accounted for by
semi-urban rural markets, and the skew is expected to continue in favour of
these markets.
On the other hand, intensified competition from regional players has led the
established Britannia and Parle to squeeze their profit margins, offer products at
various price points, introduce small pack sizes, and offer aggressive marketing
promotions. And even as the battle royale continues between Britannia and
Parle on a national level, Surya Agro now claims market leadership in the non-

34

glucose biscuit segment, which, according to industry estimates, accounts for 30

per cent of the overall biscuits market.
It is very difficult for any company to enter the domestic biscuits market. First,
consider the competition. Britannia and Parle are very aggressive nationally, in
the East Priya Biscuits is tough competition for any new player, while Duke is
strong in the South. Then, of course, there is Priyagold. Yet another player is
Bakeman's. The second reason is that margins have to be incurred at dealer,
distributor and stockist levels. Then there are other factors such as large
investments involved in manufacturing and brand building. It makes it easier for
any company wanting to enter this segment, therefore, to buy out an existing
brand.
Recent times have thrown up examples of several established FMCG players
going slow on biscuits. Kellogg's recently stopped active production of biscuits,
Dabur has ruled out an entry and Nestle SA sold off the assets of Excelsia
Foods.
The pressure to grow for these companies is high also because of competition
from low priced players like Priya Gold.
The biscuit battle will be fought in the low priced categories of Glucose and
Marie and biscuits.

35

CONCLUSION
Britannia Industries Limited is also a major player in the ready to eat food
segment with leadership position in bakery category. The companys
plants are situated in Kolkata, Delhi, Chennai, Mumbai, Uttarakhand,
Orissa & Bihar with a capacity of 160,000 MT.The company has
transformed itself from being a primarily a biscuit company in 2008with
diversification efforts into other bakery products & dairy.
Britannia is mainly focusing on exporting its core products. They have
made inroads mainly in gulf and some European markets. They should
try to increase the exports as their partner is no 1 in biscuits it would help
them it could use them as their umbrella brand
Britannia was the pioneer in the sliced bread segment, yet the
contribution of bread in the total turnover is only 6% . Since the market
for packaged sliced bread exists, they should consider relaunching to
capture a larger share of this market.
Britannia is already into packaged beverages, now under their Joint
Venture with Fonterra. Since fruit juices are becoming a popular food
item at breakfast tables in Indian homes, as well as hotels. They also
offer an alternative to aerated drinks and they can be promoted on a
platform of Health with refreshment since Areated Drinks are not healthy.
Marketing Groupe Danone Products
Britannia can market some of the products of its parent company in India.
Thus it can expand its product line without having to invest much in Research
and Development.

Promotion of Ethnic Products

36

Britannia should promote the ethnic products it produces, like Ghee, since these
are commonly consumed in Indian households, it will make Britannia an
indespensible brand to the consumers.
We expect this new initiative to start yielding results from 2014.
Companys product categories are all growing at +15% while the overall
industry is growing at +10%. The company has over the years innovated
its product portfolio so as tocommand pricing premium in the market.
Brand leverage has helped Britannia gain foothold in new segment such
as chaas and healthy bread offerings. Innovation backed byadvertisement
exposure to help improve growth. Britannia accelerated the nutritional
drivein the last 3-4 years and has been growing in double digits in this
segment. The adultsHealth and Wellness segment is growing at +20%
levels and Britannia is witnessingsimilar to higher growth.
New introductions, both in the premium and discount segments. Also,
Britannia NutritionFoundation continues to work on initiatives related to
malnutrition in children and women and will partner with the
government, NGOs etc., to pilot and scale upsuccessful initiatives.

BIBLIOGRAPHY

37

www.britannia.co.in
www.wikipedia.com
www.businesstandard.com
www.just-food.com