Britannia Case Study
Britannia Case Study
Britannia Case Study
MANAGEMENT
CATERING TECHNOLOGY AND
APPLIED NUTRITION
Topic
CERTIFICATE
This is to certify that ASHISH GURUNG student of
BHMCT (Final Year) has completed his project work on
BRITANNIA INDUSTRIES: A CASE STUDY
PROJECT GUIDE
SIGNATURE
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ACKNOWLEDGEMENT
A Project like this cannot be completed without help and
advice from different services. This project has been made
possible through direct and indirect co-operation of various
people for whom I wish to express my appreciation and
gratitude.
Date:
Place: ASHISH GURUNG
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Table of Contents
Introduction
Background
Methodology
Findings
Internal Environment
External Environment
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Abstract
Britannia was the largest bakery manufacture in India. Due to a successful initiative the company
intended to scale up the manufacture, distribution of social products and sustain the business. Thus,
the CEO started to make a policy to develop and expand the social products. Based upon the
movement, we found out the shortcomings including profit decreased, limited marketing strategy,
and potential competitors. Therefore, the given recommendations were saving costs, cooperation
with government or outsourcing, brand management and improving the quality of products.
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Introduction
known for its wide range of food products, including biscuits, bread, cakes, dairy
Britannia has a strong presence in the Indian market and is one of the most trusted and
recognized brands in the country in FMCG category. It has a vast distribution network
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that reaches every corner of India, making its products easily accessible to consumers.
The company has a strong focus on innovation and quality, constantly introducing new
research and development team that works on developing innovative and healthy food
initiatives to reduce its environmental impact. It has also undertaken several social
welfare programs to support the communities it operates in. Over the years, Britannia
has expanded its presence globally and exports its products to over 60 countries. It has
manufacturing facilities in multiple locations across India and has a workforce of over
4,000 employees.
With a rich history and a strong brand reputation, Britannia Industries Limited
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continues to be a leader in the Indian food processing industry, providing quality and
HISTORY
central Kolkata. Later, the enterprise was acquired by the Gupta brothers, mainly
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Nalin Chandra Gupta, an attorney, and operated under the name, V.S. Brothers. In
partner and The Britannia Biscuit Company Limited (BBCo) was launched. The
Mumbai factory was set up in 1924 and Peek Freans acquired a controlling interest in
BBCo. During the World War II, the government of British India needed a continuous
supply of biscuits for British soldiers. The Britannia Biscuit Company started
supplying biscuits to British Army for several years, and the company sometimes
devoted 95% of its capacity to produce biscuits for the armed forces. 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 acquired the parent of Peek Freans and became
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a major foreign shareholder. In 1978, Britannia came out with its public issue, and its
Indian company. The 38% foreign stake was owned by the UK-based Associated
In 1993, textile tycoon Nusli Wadia of Bombay Dyeing took control of the company
from Britannia's then-chairman Rajan Pillai, with the help of French food giant
Danone. In 2009, Wadia Group became the largest shareholder in BIL after acquiring
Managing Director of Britannia Industries Limited, and Ranjeet Kohli was also
In December 2022, Britannia Industries entered into a joint venture agreement with
manufacture and sell cheese products in India and other markets. Under the joint
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venture, Bel SA acquired a 49% stake in BDPL, a subsidiary of Britannia Industries,
for ₹262 crore and infused an additional ₹215 crore in the joint venture.
In August 2022, the company expanded its product portfolio by entering the western
snacking market with the launch of its new product, Treat Croissant
2.To continuously innovate and introduce new products that cater to changing
consumer preferences.
4.To create value for all stakeholders, including customers, employees, shareholders,
and society.
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7.To provide a safe and inclusive work environment for employees.
company operates.
society.
1.To be the most preferred and trusted food brand in every household.
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4.To be a leader in product innovation and development.
7.To build strong and enduring relationships with customers, suppliers, and other
stakeholders.
10.To create long-term value for shareholders through consistent and profitable
growth.
Company Profile
Britannia
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erly Company Limited
Comp Public
any
type
ISIN INE216A01030
Head Hungerford
quart Street, Kolkata, India
13
ers (registered office)
Whitefield, Bangalore,
India (corporate
headquarters)
Area Worldwide
serve
d
Key Nusli
peopl Wadia (Chairman)
e Varun Berry (Executive
Vice-Chairman & MD)
Rajneet Kohli (CEO)
N
Venkataraman (Executi
ve Director & CFO)
Produ Bakery
cts products including bisc
uits, bread, cakes and ru
sk
Dairy
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products including milk,
butter, cheese, ghee and
dahi
Reven ₹16,301
ue crore (US$2.0 billion)
(FY23)
Oper ₹2,605
ating crore (US$330 million)
incom (FY23)
e
Net ₹2,322
incom crore (US$290 million)
e (FY23)
Numb 4,480 (2019)
er of
emplo
yees
Paren Wadia Group
t
Subsi Manna Foods Private
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diarie Limited
s International Bakery
Products Limited
Websi Britannia
te
Board of Directors
Mang Dir
16
N Venkataraman Executive Director &
CFO
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expanding to areas such as Western Europe, USA, UK, UAE
and Canada.
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2.Cakes: Britannia offers a variety of cakes such as sponge
cakes, fruit cakes, and cream cakes under brands like
Britannia Treat and Britannia Cakes.
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7.Health drinks: Britannia offers health drinks like Tiger
and Milk Bikis which are popular among children.
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13.Digestive biscuits: Britannia offers a range of digestive
biscuits that are known for their health benefits.
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3.Trade policies: International trade policies, such as tariffs
and trade agreements, can impact the company's export and
import activities.
Economic Factors:
1.Economic growth: The overall economic growth of the
country can influence consumer spending patterns and
demand for Britannia's products.
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Social Factors:
1.Changing consumer preferences: Shifts in consumer
preferences towards healthier and more nutritious food
options can impact the demand for Britannia's products.
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options, which Britannia needs to consider in its product
portfolio.
Technological Factors:
1.Automation and digitization: Technological
advancements in manufacturing processes and supply chain
management can improve operational efficiency and reduce
costs for Britannia.
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3.E-commerce: The growth of e-commerce platforms
provides new opportunities for Britannia to reach a wider
customer base and increase sales.
Environmental Factors:
1.Sustainable sourcing: Increasing focus on sustainable
sourcing of raw materials and environmentally friendly
production processes can impact Britannia's supply chain
and manufacturing practices.
Legal Factors:
1.Food safety regulations: Compliance with food safety
regulations is crucial for Britannia to maintain product
quality and consumer trust.
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2.Intellectual property rights: Protecting its brand and
intellectual property rights is important for Britannia to
prevent imitation and maintain a competitive advantage.
Businesses
The company's principal activity is the manufacture and sale
of biscuits, bread, rusk, cakes and dairy products.
Biscuits
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As of 2023, about 80% of Britannia's annual revenue comes
from biscuits. Britannia has an estimated market share of
33% in the organised biscuits market in India.
The company's factories have an annual capacity of 433,000
tonnes. The brand names of Britannia's biscuits
include MarieGold, Tiger, Nutrichoice, Good Day, 50-
50, Treat, Pure Magic, Milk
Bikis, Bourbon, Nice Time and Little Hearts among others.
In 2006, Tiger, the mass market brand, realised
$150.75 million in sales, including exports to the U.S. and
Australia. This amounts to 20% of Britannia's revenue for
that year.
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).
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Britannia holds an equity stake in Dynamix 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. Britannia
intends to source most of the products from New Zealand,
which they would market in India. The joint venture will
allow technology transfer to Britannia. Britannia and the
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 Dynamix) would be
transferred to the joint venture. 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.
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Marketing Strategy Of Britannia
The marketing strategy of a company is an assortment of
different elements of the marketing plan. When a company
decides to market its products to customers, it does a small
exercise called Segmentation, targeting and Positioning (STP)
of its customers. Let us discuss these concepts further.
Segmentation
This is the process of separating the customers into smaller
categories on common factors to better understand and
generalise their needs and wants. We have researched
Britannia’s segmentation strategy and it is as follows:
*Demographic Segmentation
1.Children: Fruity Rolls, Tiger, Treat
2.Adults: Good Day, Cream Cracker
3.Youth: Little Hearts, Cream Biscuits
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4.Gender: All Inclusive
*Behavioural Segmentation 1.Benefits:-
for health benefits, all Nutri products, tea time snack biscuits.
2.User Status:- Little Heart Biscuit and time pass. 3.Usage
Rate:- Marie Gold is for high usage rate Customers.
4.Occasion:- Snack Biscuit, Fruit rolls.
*Psychographic Segmentation
Over the course of the last century, Britannia has adeptly
aligned itself with the Indian market and its evolving
demands, effectively executing successful campaigns and
introducing exceptional age-specific products.
Targeting
After segmentation, the subsequent phase is targeting, where
the company identifies the specific customer segments it aims
to cater to. Over the span of the last century, Britannia has
extended its focus beyond just the new generation of children,
encompassing products tailored for the elderly population:
-Britannia Tiger – Economically priced for the
budget-conscious.
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-Britannia Marie Gold – Suitable for families and offered in a
biscuit form.
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Positioning
This is the final step of the process in which after deciding the
customer the company wishes to target, it decides what kind
of messaging or kind of stance they should take while
marketing the product.
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launch products which in gets good returns for the company
through building a good brand and quality products which
are supplied across different countries.
2. Place
Britannia had started selling products in India, but now it
has expanded overseas to places like Middle East and Sri
Lanka.
They have even started to export their goods to places such
as:
USA, Ghana, Saudi Arabia , Kuwait, Bahrain, Qatar, UAE,
Oman, Seychelles, Singapore.
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3. Price
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Britannia has adopted the Market Penetration Method of
pricing. It focuses on the quality of the products keeping in
mind the pricing strategy. This helps improve and generate
large sale volume for their products. It aims at maximizing
the market share and to produce new product lines. A few
examples are:
a) Vegetarian Cakes are available at Rs. 15/- for a 75 gm
pack.
b) Nutrichoice Health Starter Kit is for Rs 100.
c) Britannia Tiger Banana packed with IRON ZOR priced at
Rs.2, Rs.4 and Rs.10
4. Promotions
To attract the consumers of Britannia, they very innovatively
came up with ideas to promote their brand in numerous
different ways, and now they have leveraged India’s two
most successful passions of all times:
*Cricket
*Movies
Nearly every Indian’s dream was to be present at a stadium
while India is playing cricket, during the World Cup, so
Britannia created the ‘Britannia Khao, World Cup Jao’
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contest in 1999. They made it very simple for their target
market to enter this contest, which was to purchase more
products to win a scratch and win lucky card and winning an
all expenses paid trip to England to watch the World Cup
Match. They held it again in 2002- 2003 held in South
Africa which successfully set a unique trend of their own.
They even came up with another creative promotion of
‘Britannia Khao, Cricketer Ban Jao’ that was fuelled by the
need of every Indian to be a part of the passion called
Cricket followed by a promotion called ‘Britannia Lagaan
Match’ in 2001 that revolved around a movie called Lagaan
was based on a cricket match. This promotion gave the
consumers a chance to interact with the film stars and also
get to pay cricket with them. The match had over 40,000
spectators and made the headlines of leading newspapers
and news channels and was found to be the most unbeaten
promotional act of that year. So we understand that sports
and the sporting events are the key promotional tools of
Britannia.
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Therefore we now know that Britannia promotes their
products through various media’s such as Events,
Television, Magazines and Sales Promotions too.
SWOT Analysis
Strengths
• Widely Distributed network and accepted by all age
groups.
• Innovative products like-Little Hearts, 50-50 Chakkar, and
Nice Time.
• Celebrity endorsements –Sachin Tendulkar, Aamir Khan.
• The Brand Slogan of Britannia “Eat Healthy Think Better”
is the key asset of the firm.
• It is available in various different forms of packages.
• The variety of products is an added advantage as they not
only focus on assorted biscuits but also cakes, breads, Rusk
and dairy products.
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Weaknesses
• Faces stiff competition from their rival Parle and Nestle on
the basis of Price and Distribution channels
• The industry and technology requires high investments.
• As too many different types of brands enter the market,
they might lose focus.
• Even though the prices are affordable, they might not be
easily available to the lower income groups.
Opportunities
• People are willing to try newer variants and hence it
satisfies the taste buds by its newer variants.
• It generates employment opportunities.
• As consumers are very concerned about their health, it
helps them to strengthen brands NutriChoice, Milk Bikis,
and Tiger biscuits.
• Competition increases.
• This helps to enhance mergers.
Threats
• They might sometimes be unable to utilize all the
resources efficiently.
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• They may provide poor quality of biscuits for more profits.
• As there are a number of biscuits in the existing market,
they have large number of challengers.
• Consumer demands may alter impulsively.
• Government might come up with new restrictions without
notices.
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a) Increasing brand awareness: Britannia aims to expand
its reach and increase brand recognition among its target
audience through social media platforms.
b) Driving website traffic: The company intends to
leverage social media to direct traffic to its website, where
customers can explore products, make purchases, and engage
with the brand.
c) Enhancing customer engagement: Britannia aims to
foster meaningful interactions with its customers, encouraging
feedback, and building long-term relationships.
d) Generating leads and conversions: The company
seeks to leverage social media to generate leads and drive
conversions, ultimately boosting sales and revenue.
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a) Age and gender: Britannia's products cater to a wide
range of age groups and genders. Understanding the
preferences and consumption patterns of different
demographics will help in crafting relevant content.
b) Interests and lifestyle: Britannia's target audience may
have specific interests, such as health-conscious individuals,
parents, or young professionals. Understanding their lifestyle
and preferences will enable Britannia to create content that
aligns with their needs.
c) Online behavior: Understanding how the target
audience interacts with social media platforms, the frequency
of their usage, and the type of content they engage with will
help Britannia optimize its social media presence.
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a) Variety of content formats: Britannia should diversify
its content formats, including images, videos, infographics,
blog posts, and user-generated content. This variety will keep
the audience engaged and cater to different preferences.
b) Relevance and timeliness: Britannia should create
content that is relevant to its target audience and aligns with
current trends and events. This will help the brand stay top-of-
mind and foster engagement.
c) Storytelling: Britannia can leverage storytelling
techniques to create a deeper emotional connection with its
audience. Sharing stories about the brand's heritage, product
development, and customer experiences can help build brand
loyalty.
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d) User-generated content: Encouraging customers to
share their experiences and opinions about Britannia's
products can enhance authenticity and foster a sense of
community.
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b) Instagram: As a visually-driven platform, Instagram
can be ideal for showcasing Britannia's products, behind-the-
scenes content, and user-generated content. It is particularly
popular among younger demographics.
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efforts and ensure a positive return on investment. Key
performance indicators (KPIs) that Britannia can track may
include:
a) Reach and impressions: Tracking the number of
people reached and impressions generated can provide
insights into the overall brand exposure.
b) Engagement metrics: Monitoring likes, comments,
shares, and click-through rates can help Britannia gauge the
level of audience engagement and the effectiveness of its
content.
c) Website traffic and conversions: Analyzing the traffic
driven from social media platforms to the website, as well as
tracking conversions, can provide insights into the impact of
social media on sales.
d) Customer sentiment: Monitoring customer sentiment
through social listening tools can help Britannia understand
how customers perceive the brand and make necessary
improvements.
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Britannia has been successfully developing and generating trust among
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❖ Britannia can cut costs for some period of time followed immediately by
strong advertising. As we have seen during the research that most of
institutions give most preference to the margin provided to them on milk
products .As the quality and taste and availability of Britannia dairy
Products. Britannia dairy Products are best in market and local Dairy give
companies good margin to them, Price remains the main criteria of
institutional Dairy sales.
❖ Can start schemes like cash prizes or foreign trips on scratching the
barcode on the packet.
❖ Locate the institutions using competitor’s and provide them attractive
offers to increase the market share so that at least the big competitors will
not try to expand.
❖ Mergers and Acquisition in the Dairy industry with local players help
the company in. increasing its distribution network and Market share
❖ Efficiency in distribution.
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❖ Remove communication barriers and misconceptions between the
Institutions and distributors by effective communication with institutions
time to time.
https://iide.co/case-studies/mother-dairy-marketing-strategy/
https://en.wikipedia.org/wiki/Britannia_Industries
https://timesofindia.indiatimes.com/business/india-business/
generating-demand-is-biggest-challenge-says-britannia-md/
articleshow/50460621.cms
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