1. PROJECT ON
MARKETING MIX
OF
BRITANNIA INDUSTRIES
LIMITED
SUBMITTED BY: SUBMITTED TO:
• SNEHA GHOSH 09 DR. CHINMAYKUMAR
DASH
• TAMOJIT DAS 14
• MEGHNA MAITY 28
• DIVYANSHI VERMA 20
• ABHIRUCHI SINGH 16
BBA LL.B 2ND SEM (batch 2020-2025)
ADAMAS UNIVERSITY,KOLKATA
2. INTRODUCTION & HISTORY
Britannia Industries Limited is an Indian food and beverage company. Founded in 1892 and
headquartered in Kolkata, it is one of India's oldest existing companies. It is now part of
the Wadia Group headed by Nusli Wadia. The company sells its Britannia and Tiger brands
of biscuits, breads and dairy products throughout India and in more than 60 countries across
the world. Beginning with the circumstances of its takeover by the Wadia group in the early
1990s, the company has been mired in several controversies connected to its management.
However, it does enjoy a large market share and is exceedingly profitable.
The company was established in 1892 by a group of British businessmen with an investment
of ₹295. Initially, biscuits were manufactured in a small house in central Kolkata. Later, the
enterprise was acquired by the Gupta brothers, mainly Nalin Chandra Gupta, an attorney, and
operated under the name "V.S. Brothers." In 1918, C.H. Holmes, an English businessman
based in Kolkata, was taken on as a partner and The Britannia Biscuit Company Limited
(BBCo) was launched. The Mumbai factory was set up in 1924 and Peek Freans UK,
acquired a controlling interest in BBCo. Biscuits were in high demand during World War II,
which gave a boost to the company's sales. The company name was changed to the current
"Britannia Industries Limited" in 1979. In 1982, the American company Nabisco Brands,
Inc. acquired the parent of Peek Freans and became a major foreign shareholder.
3. • MARKETING MIX OF BRITANNIA
• The marketing mix of Britannia discusses the
marketing mix strategy of Britannia Industries
Limited (BIL), which is a market leader in the Indian
bakery and biscuit market. Established in March
1918, it has steadily grown and secured itself as one
of the heavyweights of India. Its portfolio of brands
includes Tiger, Good Day, Marie Gold and 50:50. It
became the first company in the East to use imported
gas ovens, and as a business, flourished and began to
acquire its reputation for quality and value.
• Installing automatic plants in Calcutta and
Mumbai helped to increase production, and a number
of small takeovers strengthened the company’s
position. In 1997 the company had a mission change,
and identified a ‘eat healthy, think better’ strategy as
one they intended to pursue. In the same year
• they joined the dairy product market, and released
a string of snacks, with this philosophy in mind.
Dairy products account for around 10% of the
company’s revenue.
• From 1998-2001, the company’s operating profits
were 18%, as sales grew at a compound annual rate –
against the market – of 16%. More recently, BIL has
been seeing growth of around 27% per year,
compared to the industry growth rate of about 20%.
4. • BRITANNIA MARKETING MIX- 4P’S
STRATEGY
• Marketing Mix of Britannia analyses the
brand/company which covers 4Ps (Product, Price, Place,
Promotion) and explains the Britannia marketing strategy.
There are several marketing strategies like
product/service innovation, marketing investment,
customer experience etc. which have helped the brand
grow.
• Marketing strategy helps companies achieve business
goals & objectives, and marketing mix (4Ps) is the widely
used framework to define the strategies. This article
elaborates the product, pricing, advertising & distribution
strategies used by Britannia.
Let us start the Britannia
Marketing Mix & Strategy:
5. • Britannia Product Strategy:
• The product strategy and mix in Britannia marketing
strategy can be explained as follows:
• Britannia manufactures wide variety of biscuits and
dairy products. Britannia’s product strategy in its
marketing mix width primarily consists of biscuits,
bread, dairy, cakes and Rusk. The product line depth is
highest for biscuits consisting of several products,
followed by cakes and breads. Britannia manufactures
biscuits for various segments of consumers; types
include sugar free biscuits, cream biscuits and jam
biscuits. Some of its popular brands are Britannia
Nutrichoice, Britannia Marie Gold, Britannia Pure
Magic, Britannia Little Hearts etc. Britannia Tiger
biscuits are the most famous of all products. Tiger
biscuits also cater to the international markets like
Australia, Malaysia and Indonesia. With their joint
ventures with dairy companies, Britannia is now able to
manufacture and sell cheese, dahi, ghee and butter. Its
products are primarily intended for middle class people
India, which forms the bulk of the population
6. • PRODUCT IN THE MARKETING MIX OF BRITANNIA
• BIL offer a wide variety of edible goods. Bakeries set up in the 1960s at various
locations around India ensured a constant supply of fresh bread, and as the company
began distributing biscuits from other smaller companies it had taken over, they started to
manufacture and release their own biscuits. Their main products include bread, biscuits,
cakes, rusk and dairy products. They have continued to release a steady flow of products
over the years, for example, fruit bread, or the dairy product half/half. 90% of their
revenue, however, comes from biscuit manufacturing. Their combined factory capacity is
some 433,000tones per year. In 2006, the Tiger brand part of the company achieved total
sales of $150 million. BILs present annual revenue is around Rs 22 billion, nine tenths of
which is generated through biscuit sales.
• Popular products forming a part of marketing mix of Britannia
• Britannia Tiger
• Britannia good day
• Britannia nice time
• Britannia treat
• Britannia 50 50
• Little hearts
• Bourbon
• Britannia Marie
• Britannia bread and bakery products
• Veg. cakes
• Britannia dairy products like Cheese, Butter, Ghee, etc.
• Britannia nutria-choice range of products.
7. • PLACE IN THE MARKETING MIX OF BRITANNIA
• Britannia has been one of the market share holder for many years in India. It has
also concluded some foreign deals, such as working with Peek, Frean and Company
which is a successful UK biscuit company, and also completed takeovers such as that
of Parry’s in 1975 which enabled the company to distribute its goods to more people.
The company was built up and was known for many years as ‘the Biscuit King’.
Britannia currently has an estimated 38% of the market share.
• The company has also invested in its dairy products, and in 2001 announced a joint
venture with the New Zealand Dairy, allowing it to produce cheese and butter amongst
other things. The company distributes its goods up and down the length and breadth of
India. In 2007 BIL agreed to a joint venture with the Khimji Ramdas Group, and
acquired a 70% beneficial stake in the Strategic Foods International Company based in
Dubai. The company has been voted one of India’s 100 most trusted companies, as
listed in the Brands Trust Report For distribution, Britannia follows the
FMCG channel of distribution wherein it appoints distributors at select locations.
These distributors are then responsible for handling dealers and retail showrooms.
Modern trade channels like Big bazaar and D mart as well as others are handled
directly by the company. The distribution channel follows breaking the bulk where in
large amounts are transferred from factory to C&F, from C&F to distributor and then
forward to retailers and dealers. The distribution in urban areas is fantastic with
Britannia being present almost everywhere. However, the rural penetration of the
company is still less because of the challenges of distribution in rural area.
• FMCG distribution model
• Breaking the bulk is applied
• Strong distribution in the country
• Rural distribution needs to be stronger
8. • PROMOTIONS IN THE MARKETING MIX OF
BRITANNIA
• The strongest asset for the promotion of Britannia products is the
product itself. The products are tasty and people like it. Thus, a pull
is created directly by the product. However, today, no company can
exist without promotions and advertising. Same is in the case of
Britannia as well. However, the advertising spends for Britannia are
controlled because of the brand equity of Britannia products and the
presence of the brand for almost a century in the Indian market.
• The company uses most of the usual methods of advertising,
including billboards, magazines, TV ads and point of
purchase advertising. In November 2012, BIL hired Salman Khan to
endorse its Tiger range of products. The popular Bollywood actor
promotes the core values of the Tiger brand range because of his
own dashing style and personality. Britannia has high advertising
spends for products like Good day and Bourbon which are almost
stars for the Britannia brand. However, the investment for marketing
of Dairy products is minimal because a lot of expenses have to be
done for the distribution of the products. Britannia has enough brand
and clout in the market, because of its constant presence in the last
few decades, that its product receives a natural pull from the
market.
• Relies more on pull than push
• Has amazing brand equity due to presence in the market for last
many decades
• Concentrates on promoting biscuits more than any other product
9.
10.
11.
12. • PRICE IN THE MARKETING MIX OF
BRITANNIA
• Competitive pricing is the sole pricing strategy which
Britannia uses. Parle is one of the major competitors of
Britannia and in that, Parle G has remained unbeatable for
decades. In dairy, Amul is a strong competitor for Milk,
Cheese and other dairy based products. In bakery
products, you will find local competition as well
as Monginis and other veg cake makers who have their
own line of products. To stay above all of them, Britannia
adopts a competitive pricing strategy. Thus, Britannia
products are much better in quality and are good in price
as well. The pricing strategy along with distribution has
been so strong, that people buy these products even on
Railway stations and while traveling, instead of buying
local snacks.
13. Some of the prices of the
Famous Britania Products :
Product Name Weight Price
Britania Good Day 180 gm Rs 35.00
Britania Coconut Butter Biscuits 180 gm Rs 35.00
Britania Good Day 90 gm Rs 12.00
Britania Good Day Choco-Nut Cookies 90 gm Rs 15.00
Britania Good Day 38 gm Rs 5.00
Britania Cake 16 gm Rs 5.00
Britannia Milk Bikis Biscuits 40.5 gm Rs 5.00
Britannia Marie Gold Biscuits 120 gm Rs 15.00
Britannia 50-50 Sweet & Salty Biscuits 200 gm Rs 30.00
14. • DAIRY PRODUCTS
• Dairy products contribute close to 10% to Britannia's
revenue. The company not only markets dairy products to
the public but also trades dairy commodities business-to-
business. Its dairy portfolio grew to 47% in 2000-01 and
by 30% in 2001-02. Its main competitors are Nestlé India,
the National Dairy Development Board (NDDB),
and Amul (GCMMF).[7]
• Britannia holds an equity stake in Dynamics Dairy and
outsources the bulk of its dairy products from its
associate.
• On 27 October 2001, Britannia announced a joint
venture with Fonterra Co-operative Group of New
Zealand, an integrated dairy company which handles all
aspects of the value chain from procurement of milk to
making value-added products such as cheese and
buttermilk.[7] Britannia intends to source most of the
products from New Zealand, which they would market in
India.[6] The joint venture will allow technology transfer to
Britannia.[7] Britannia and New Zealand Dairy each hold
49% of the JV, and the remaining 2 percent will be held by
a strategic investor. Britannia has also tentatively
announced that its dairy business (probably including
Dynamic) would be transferred to the joint
venture.[7] However, the authorities' approval to the joint
venture obliged the company to start manufacturing
facilities of its own. It would not be allowed to trade,
except at the wholesale level, thus pitching it in
competition with DANONE, which had recently
established its own dairy business.
15. • PERFORMANCE & PROFITABILITY
• Between 1998 and 2001, the company's sales
grew at a compound annual rate of 16% against
the market, and operating profits reached
18%.More recently, the company has been
growing at 27% a year, compared to the industry's
growth rate of 20%. At present, 90% of Britannia's
annual revenue of Rs 22 billion comes from
biscuits.
• Britannia is one of India's 100 Most Trusted
brands listed in The Brand Trust Report. Britannia
has an estimated market share of 38%.
Britannia's net profit FY 2014-2020
16. • Alternative Distribution and
Marketing strategies
• Along with normal distribution, Tiger is
also focusing on bulk supplies at railway
platforms, canteens and BPO offices,
thereby increasing its reach across regions
.Also launched "Chota-Tiger"(smaller
packs) with two to three biscuits to
facilitate quick eating at consumption
avenues. Separate market structure and
sales force is devoted to handle this
alternative distribution.
17. WEAKNESS
Brand Tussle
The relation between Britannia’s major stake holders -- Wadias and DANONE, has turned sour since 2005--06 over
the alleged unauthorized use of the Tiger brand by Danone in five countries; viz. Singapore, Pakistan, Malaysia,
Indonesia and Egypt. Britannia has filed a case against DANONE at Singapore court regarding the same.
18. Low Profit Margin
After a drop in operating profit margins to 6% levels in 2006-07 from over 11% in the previous year. The
current input prices are still significantly higher than previous year. Britannia will have to neutralize the
adverse impact of the same through a combination of improve realization per pack, operating efficiencies
and mix improvement.
Low penetration in Sub-Urban and Rural Section
Although Britannia has a large established distribution network, but still there is a huge unorganized
sector (40% of total Indian biscuit market) operating in sub-urban and rural areas. These regional players
mainly eat onto the potential market pie of Tiger biscuits, as it is the brand primarily into mass-market)
Lion’s share (70%) of Britannia’s revenue comes from metros
Decrease nutritional value
Increases the cost of food product
Industry and Technology requires high investments
19.
20. FINDING & SUGESSIONS
Britannia Products have Global Image.
Customer trust on Brand of Product and Name of Company while purchasing the Product
The Company always tries to deliver a good quality and taste products at reasonable and affordable
prices.
The Company should take necessary actions on Complaints made by Customers in order to satisfy them.
The Company should satisfy their employees by giving them Bonus, Incentives, Medical Allowances etc.
Faces stiff competition from their rival Parle and Nestle on the footing of Price and Distribution channels.
The industry and engineering requires high investing.
As excessively many different types of trade names enter the market, they might free focal point.
Even though the monetary values are low-cost, they might not be easy available to the lower income
groups.
21. CONCLUSION
We have studied and analyzed the food products market of Britannia on different aspects of the
market strategy and consumers.
According to us, a growth of any product is based on different aspects like manufacturing good
quality products, it should be well packed, it should have different quantities, preparing goods with
affordable price, publishes their products with the help of advertisement, internet, newspapers etc. ,
maintaining good and Healthy relations with their customers, analyzing market structures along with their
competitors etc.
According to us, a growth of any product is based on different aspects like manufacturing good quality
products, it should be well packed, it should have different quantities, preparing goods with affordable
price, publishes their products with the help of advertisement, internet, newspapers etc. , maintaining
good and Healthy relations with their customers, analysing market structures along with their competitors
etc.
