overview of indian biscuit industry

1. Overview of biscuit industry
in India
Rajat Khera
Gaurang Chauhan
Abhinav Rao
Joydeep Sharma
Gaurav

2. Overview of biscuit industry
in India:
• The Rs. 4,500 crore Indian biscuits market has grown at the rate of 12-14
percent year on year. Britannia is highest selling in terms of value,
followed by Parle and ITC.
• The biscuit industry is estimated to grow over 15-17% in the next few
years.
• The per capita consumption of biscuits in India is 2.0 kg.
• The biscuit market in India is extremely price sensitive. With Parle
providing most of its biscuits in the range of Rs. 4.00-6.00, other players in
the market can't think of increasing the prices.
• Role of distribution channel is very crucial for any FMCG product. Britannia
and Parle have got more or less a very wide coverage for their products in
whole of India.
• ITC already has a good understanding of distribution channels. The
company uses its existing network of convenience stores - the company's
name for the hole-in-the-wall pan-beedi shops - for Sunfeast.

3. Sector-wise Distribution
• The organized biscuit manufacturing industry‘s annual production
were around 1.1million tons in 2003-04, 1.25 million tons in 2004-05, 1.4
million tons in 2005-06, 1.6million tons in 2006-07 and 1.7 tons in 2007-
08.
• The unorganized sector consists of small bakery units, cottage
and household type manufacturing their goods without much packaging
and distributing their goods in the surrounding areas.Lower overheads
due to limited local area family management, focused product lines and
less expenditure on marketing help the unorganized sector to grow

5. Eat Healthy,Think Better
Swasth Khao Tan
Man Jagao

6. THE BEGINNING
• EVERY JOURNEY STARTS WITH ONE STEP
• BRITANNIA STARTED ITS JOURNEY IN 1892 FROM A SMALL
HOUSE IN KOLKATA
•
THE INITIAL INVESTMENT WAS MEAGER RS.275
• IN 1921 IT BECAME THE FIRST COMPANY EAST OF SUEZ
CANAL TO USE IMPORTED GAS OVENS

8. THE ORIGIN OF EAT HEALTHY AND
THINK BETTER
• Consumers seek foods that complement their lifestyles while offering
convenience, variety and economy, over and above health and nutrition.
• Britannia had the ability to resonate with the changes in consumer needs-needs
that have varied significantly across its 100+ year epoch.
• IN 2002 Re-birth - new corporate identity 'Eat Healthy, Think Better' lead to new
mission: 'Make every third Indian a Britannia consumer’
• Britannia saw the writing on the wall. Its "Swasth Khao Tan Man Jagao"(Eat
Healthy, Think Better) encapsulating the core essence of Britannia - healthy,
nutritious, optimistic - and combining it with a delightful product range to offer
variety and choice to consumers .

9. GOODIES SECTION
Britania offers products with a minimum cost of Rs.2 taking into consideration of all its
customers.

10. Products
Tiger Banana- Britannia Tiger Banana packed
with IRON ZOR and goodness of Banana is
accessible to all, being available inconvenient
packs priced at Rs.2, Rs.4 and Rs.10.
IRON ZOR helps make mind sharper and
body stronger.
NutriChoice SugarOut Sounds like yesterday
when people commented that healthy foods
meant compromising on the taste. The product
is not just sweet but tastes great, and yet
contains

11. More Products……
• Treat Fruit Rollz Want to know a little
secret? They make the besttiffin treats! Fruit Rollz is
indeed a yummy snacking option for kids, while keeping
the Moms assured about the goodness provided by the
fruit filling.
• Britannia 50-50 Pepper Chakkar - The tangy and
• distinctivepepper flavoured biscuit, is truly a
• case of leveraging the marketingmix to best
• advantage

13. • Since its inception in the year 2000, Bisk Farm has been recognised for its
delectable biscuits, cookies, cakes and rusks. The brand is owned and marketed by
SAJ Food Products (P) Ltd, a part of the Aparna Group of Companies.
• Bisk Farm has carved a niche for itself in the market in a fairly short span of time. It
is ranked amongst the top 3 bakery brands in the markets where it competes.
• Bisk Farm is presently available throughout Eastern and North Eastern India, and
parts of South, Central and North India. The company eventually aims to market its
delicacies across the country.
• In addition, as part of its drive to establish a presence across India, Bisk Farm has
invested in state-of the-art manufacturing facilities in Eastern and South India.
• Bisk Farm Just Baked is another ambitious part of the brand’s endeavour to share
its goodness directly with the consumer. It showcases the Brand’s array of freshly
baked Savouries, Danishes, Special Cakes, Pastries, Breads and other Confectionery
items, along with a great ambience.

14. Choko Squares
Hidden Chocolate Squares just keep springing up
in every bite. Chok Squares is chocolate redefined.
Purist’s would still like it christen it as Chokolicious
Digestive
Rich in fibre , nature fresh . Digestive is the biscuit
that balances your hectic and chaotic life style .
Gives you back the punch to carry on.
Just Ginger
If there was ever a biscuit , that spelled
Class , it would inevitably be Just Ginger.
This biscuit has a die hard following.

15. Champ
This Glucose biscuit is meant for the
Champion . Champ is for the budding
champions , the energizer to push you
further.
Cashew +
For those are Nuts about Cashew . This
premium biscuit Cashew + , is truly a
connoisseurs delight.
Milkuit
Milk was always healthy , but it never
tasted better that now . Milkuit the
delicious taste of health.

16. RUSK This unique Cake Ruskit is both innovate and teasing. Leaves
you wondering if you were indulging in a Cake or enjoying a Bread Ruskit. The
best of both worlds blended together.

17. Cream
Biscuits

18. Countlines
Life is not always sweet. Namkeenz is meant for those
who believe that a bit of salt adds the zest for living into
our lives.
Pure chocolate in every bite ,
Choco will give you a high every
time you bite into this delicacy.
Rounded to perfection , Tid Bit is
an evergreen biscuits and it
certainly a boon for all sweet
biscuit loving children.
Kids go crazy when it comes to Jungle Bites. This animal and bird
shaped biscuits is often the best solution for fretting mother
when children refuse to eat.

19. Retail Business
• Bisk Farm entered the retail space with Just Baked in 2009. Just Baked is
an endeavour to indulge the consumer in a premium Bisk Farm
experience. Presently operating in the city of Kolkata with 22 outlets.
• Just baked concentrates on their snacking haven, by providing the urban
consumer space to take a break from the hectic fast life. These Just Baked
outlets have a subtle, understated and a contemporary décor appealing to
all. The decor exudes the premiumness of the delectable Savouries,
Confectionaries and Breads topped off with a range of hot and cold
beverages.
• The BISK FARM portfolio has a lot more to offer with its complete range of
packaged products. Moving further, Just Baked aims to build on their
expertise and expand to 100 outlets in and around the city of Kolkata.
Thereby establishing a prominent presence in the retail space.

20. “Jo de jitne ki sakti”

21. The Beginning
• ITC Limited is an Indian public conlomerate company headquartered
in Kolkata,West bengal, India. Its diversified business includes four segments: Fast
Moving Consumer Goods (FMCG), Hotels, Paperboards, Paper & Packaging and
Agri Business.
• ITC entered the biscuits market with sunfeast brand in July 2003. The ITC website
says:“Sunfeast’s brand essence, “Spread the Smile” connotes happiness,
contentment, satisfaction and pleasure. The mascot Sunny reinforces the
emotional aspects of the brand.” Tagline of Sunfeast Glucose Biscuits is: “Jo de
jitne ki sakti” i.e. “one that gives the power to win”. So, once again it is using
emotional appeal.
• Reason for Entry into Biscuits
Food segment is Rs.50,000 cr which was increasing at the rate of 17-19 % in which
6% is FMCG (Branded and packaged)
India will have more organized and branded food product categories. It will cause a
dual effect: Increase of in base of biscuit segment and Increase in percentage of
branded food categories

22. Products
• Sunfeast Special Butter Cookies
• Sunfeast Special cookies are baked with real butter and the finest ingredients to give a
mouth-watering treat that makes every moment special.
• Sunfeast Special Choco Cookies
• Sunfeast Special cookies are baked with real butter and
the finest ingredients to give a mouth-watering treat that makes every moment special.
• ITC Sunfeast Dark Fantasy ChocoFills
• Sunfeast Dark Fantasy Choco Fills is the latest
and the most premium exquisite combination of
luscious chocolate filling enrobed within a perfectly
bakedrich cookie outer.An offer that fully epitomizes
the brand promise"Pure Indulgence"

23. Other Products....
• Sunfeast Special Tasty Choco Cream Biscuits
• Delicious value for money cream biscuits with a thick layer of cream
sandwiched between two biscuits
• Sunfeast Snacky Salted Masty Crackers
• Bigger than most others in the salted
biscuit category, Snacky is light and crispy
like no other.
Sunfeast Snacky Chilli Twist Crackers
Bigger than most others in the salted biscuit
category, Snacky is light and crisp
like no other.

24. Innovation
Sunfeast range of biscuits is competitively priced and would include two new product
innovations - Orange flavoured Marie and Butterscotch flavoured Cream biscuits launched for
the first time in the Indian market after 12 months of product research and development and
extensive sampling across 14,000 consumers. Dream Cream' split cream variants are available in
'Choco-Vanilla' and 'Strawberry-Vanilla' flavours.

25. Promotion
• Advertisement & promotions: 35-40% of turnover
Sunfeast school programme: cover 1000 schools across country, to familiarize
children with sunfeast brand name and sunfeast mascot.
• Brand ambassador: shahrukh khan & surya (south actor)
Official sponsor of WTA tennis championship-sunfeast open.
Launch of Sachin’s Fit Kit, the first product co-created with brand ambassador.
Other activities:
On buses, print media ,hoardings, TV and radio advertisements
• The Sunfeast Open was an annual WTA Tennis Tounament that was started
in Kolkata in 2005. The event was a Tier III-tournament with a prize money of USD
175,000 and was played on indoors greensetThe 2008 tournament in Mumbai, was
to be held outdoors in the premises of Cricket club of India.
• 14 manufacturing units
The company has extended its manufacturing capacity by setting up three new
biscuit plants in UP and West Bengal to focus on supply chain management
strategy to enhance product freshness, market servicing and margins.

26. Priyagold biscuits
 Ballabh prasad agarwal is the founder director and promoter of the
company.
 Was incorporated in November 1992.
 It comes under Surya food & agro ltd.
 Trademarks are “hak se mango” and “priya gold”
 Won a tender floated by Indian railways catering and tourism
corporation ltd.
 Received international quality crown award in london.

27. STP ANALYSIS
Segmentation
Premium segment
• Standard segment

28. Targeting
• Age group
• Health conciousious
• Taste preference

29. Positioning
• Add campaign
Paanch rs me milta hai
Priyagold butter bite biscuits

30. Current Market Scenario
• According to A.C Nielson, Parle has overtaken Britannia in the biscuits market which is Rs
15,000 crores plus in terms of revenue. Parle has close to 45% share of the biscuits market
while Britannia has 38% share. For years, these two companies were tied in market share
with 35 % share each.
• The Rs 3,600-crore premium cream biscuit market has turned hyper competitive with
Cadbury's Oreo and ITC's Sunfeast brands biting into the share of Britannia Industries, and
Parle Products planning to enter super-premium creams.
• GlaxoSmithKline Consumer Healthcare: Junior Horlicks Biscuits-toddler biscuit category.
• PepsiCo India Launched biscuit brand Aliva, it will be produced by food division Frito Lay
India.
• United Biscuits (UK), world’s third largest biscuit company, is set to enter India market.
• Shakti Bhog plans to enter biscuits segment.

31. Conclusion
• India’s lower and middle class segment will continue to hold the key to success
of the biscuit industry in India.
• Distribution (in rural markets) and advertising (in urban markets Innovation) and
launching of new brands are being adopted by the companies to grab the market.
• The companies have added new variants into their existing brands including stylish
packaging.
• One factor on which smaller players like Bisk Farm, Priya Gold, etc., are leveraging
is the "quality". Since most of the bigger players like Britannia and ITC outsource
their manufacturing, there is difference in the quality of biscuits contrary to these
firms who do the production in-house.
• The focus on urban markets have also contributed significantly to the growth
of the biscuit industry.
• Standard grocers are the leading distribution channel, with one third of the Indian
biscuit market, by value. Traditional grocers are the only other channel to take a
double-digit share.