besa final

8/14/2019 Besa Final

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Britannia biscuits

Presented by:

Group 5


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Introduction on Biscuit Industry

Biscuits market in India : Rs 9,000-crore (Rs 90-billion)

India is known to be the second largestmanufacturer of biscuits, the first being USA

Bread and biscuits are the major part of thebakery industry and covers around 80 percent of

the total bakery products in India


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Annual growth rate of biscuits industry2003-04 15

2004-05 14

2005-06 14

2006-07 13

2007-08 15

2008-09 17

Yr. 2008.exemption from Central Excise Duty


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Biscuit Industry profile

Organised : Unorganised :: 40 : 60


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Introduction on BiscuitIndustryRural-urban penetration of Biscuit :

Urban Market : 75% to 85%

Rural Market : 50% to 65%

Per capita consumption of Biscuits :

INDIA 1.8 kg,

South East Asian Countries 2.5 kg to

5.5 kg

USA 7.5 kg


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Major playersof biscuit

industry in india


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CompanyOverview Indias second largest food company Sales close to Rs. 20 billion

Consistent annual growth rate of 15-20%

Sources products from more than 50 factoriesspread across the country

Key product lines include:

Biscuits

Bread, Cakes and Rusk

Product range caters to the whole spectrum frommass market to the premium segment


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Milestones

1892 Started with an investment of Rs. 295/- in Kolkatta

1918

Britannia Biscuit Company Ltd. (BBCo) was launched

1979

BBCo was rechristened as Britannia Industries Ltd.

1993

Wadia group aquired a stake in ABIL, UK & became anequal partner in BIL with Groupe Danone

1997 Corporate re-branding exercise gave rise to philosophy of

Eat Healthy, Think Better

1999

Britannia Khao World Cup Jao A major success!

Profit up by 37%


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Milestones continued..

1892 Started with an investment of Rs. 295/- in Kolkatta

1918

Britannia Biscuit Company Ltd. (BBCo) was launched

1979

BBCo was rechristened as Britannia Industries Ltd.

1993

Wadia group aquired a stake in ABIL, UK & became anequal partner in BIL with Groupe Danone

1997 Corporate re-branding exercise gave rise to philosophy of

Eat Healthy, Think Better

1999

Britannia Khao World Cup Jao A major success!

Profit up by 37%


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Milestones 2001

Britannia becomes one of Indias biggest brands

Britannia Lagaan Match Most successful promotionalactivity of the year

2002

Rated one amongst the top 200 small companies of theworld by Forbes Global

Indias 2nd most trusted brand Economic times

2004

Britannia accorded the status of being a Superbrand

Volume crosses 300,000 tonnes

2005

Company goes in for major expansion

Uttranchal plant commissioned ahead of schedule


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vision

To dominate the food and beverage

market in India with a distinctive range

of Tasty Yet Healthy Britannia

brands


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mission

To dominate the food and beverage

market in India through a profitable

range of Tasty Yet Healthy products

by making every Indian a Britanniaconsumer


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BCG Matrix of Britannia biscuits


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Strategies adopted

Diversification

Distribution

Competition


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Diversification

Diversification- to be the market leader in

food industry.

CHEESE

BAKERY PRODUCTS

DAIRY PRODUCTS

HEALTH BEVERAGES


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Health products

Actimind- a milk drink for children

Removed 10,000 trans fats

Fortified brands with micro-nutrients forexample : tiger with iron , nutrichoice with

5 grains like oat, ragi and honey, crackers

with ajawain and jeera.


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Power Brand Strategy

Brands like tiger have been diverified to

include iron , banana, and cream


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Fortified Biscuit Programme

Initially started for WHO.

Provide nutrition for kids.


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Distribution

Earlier they were using:

Factory > Depot > Wholesalers > RetailersCurrently using:

Factory > Wholesalers > Reatailers


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Competitor( based on price)

IMPORTANT BRANDS PITCHED AGAINST EACH OTHER Category Britannia Parle Leader Glucose Tiger Parle -G Parle-G

Marie Marie Gold Marie lite Marie Gold

Salty snacks 50-50 Krack Jack Krack Jack

Choco chips Good day Hide n seek Good day Milk Milk bikis Maha sakhti Milk bikis

Bourbon Bourbon Hide n Seek Bourbon

Nice Nice Nice Britannia Nice

Multi grain Nutri choice ----- Nutrichoice

Cream Cream Treat Kreme Cream treats Cookie Good day 20-20 Good day


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Political

Factors

Food laws implemented at State & Central levelStringent TAX lawsMany other Govt. Regulations

GDP increasing at 8-9%Increase in the disposable Income

Rupee Appreciation

70% population below 35 yearsGood awareness among the people

Process Innovation, Product InnovationInnovative techniques JIT, RFID

EconomicFactors

SocialFactors

TechnologyFactors

PEST Analysis


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e

Fig. Four Product Levelsfor Good Day

Access to distribution difficult


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Access to distribution difficultEconomies of Scale difficult

Product DifferentiationCapital RequirementsCost disadvantages

Govt. Policies

Many SuppliersFragmentedenvironmentSwitchingCostsNot animportantcustomerThreat of

Forwardintegration

Less large volumbuyersSwitching CostsNo individualbuyer can impactLess threat ofbackward

Integration

Fast foodHome made snacks

Changing consumptionpatterns

Porters 5 forces


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Strengths

Brand NameMarket Leadership

Product InnovationMany Successful brandsDistribution NetworkDanonePromotional ActivitiesCelebrity Endorsements

Weaknesses

Market leaders but still couldntprevent competitors to flourish

Britannias brand perception as biscuitsCompetition-couldnt adopt any strategyto defend its positionMay not centre on a single ProductNot able to increase its sales in anexpected manner

Opportunities

Per capita consumption in Ind2.55 Kg,develped countries-12Kg, Enormous

ScopeIncreasing Disposable IncomeOpportunities to increase exportsturnoverDiversification

Threats

Younger generation attracted to fast foodloosing importance as a tea time snackIncreasing cost of raw materials like sugar,

wheat, milkDecreasing margins in the glucose marketIntense competitionPrice sensitivity, difficult to pass the priceincrease to customers, particularly- glucoseCompetition intensifying with national &regional players

SWOT


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Britannia

Action Plan/ recommendations

Bakery Chain

Same quality,competencies

Investing on farmersImprove Operational

efficiency

Tap out of Home

market

Exports

Dairy products, rusks,Namkeen/snacks

Reduce dependenceOn Biscuits - diversify


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THANK YOU FOR YOUR

ATTENTION

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