SUBMITTED TO:

Mr. N.K. SACHDEV

(Co-ordinator)
IMT-GHAZIABAD

SUBMITTED BY: Rajeev Kanotra

Index
Acknowledgement Company Overview Companys Vision Britannias history Milestone Industry overview About products of Britannia Ltd Revenue Generation Pricing Model Distribution Strategies adopted What makes a Britannian Achievements Expansion in the Middle East Financial performance Investors Overview Bonus and dividend SWOT Analysis Taking brand Global Future strategies

Acknowledgement

The Britannia is all about eating healthy for leading a better life. The project on Britannia broadened my marketing horizons to a great extent. Initially, I had a superficial knowledge about the company. After working on this project, I have started thinking as marketers and learnt a lot as to how a company has to stand against all odds facing the market competition. I extend my sincere thanks to our coordinator, Mr. N.K. Sachdev whose consistent support, motivation and guidance has not only boosted my morale but also given me an insight into the subject. His constant stress on innovation and creativity has made my learning meaningful and beneficial. I being management students have also learnt how to be quick on my toes, to be receptive and industrious to exploit the opportunity given to me overcoming my weaknesses and leading my selves towards betterment.

INTRODUCTION

MARKETING :

In earlier times, marketers could understand consumers through the daily experience of selling to them. Marketing involves an exchange transaction between the buyer and seller. In other words, it is a set of activities to direct and facilitate the flow of goods and services from the original producer to final consumer in the process of distribution. Perhaps the basic change in the marketing thinking is the paradigm shift from perceiving a sale to creating a customer. Marketing in part has been largely transacted oriented; today it is more relationship oriented. In addition to designing the best marketing mix to make a sale, there is growing emphasis on winning and keeping customers. Good customers are always an asset which, when well managed and served, will return a handsome lifetime income stream to the company. In the intensely competitive market place, the companys loyalty through continually satisfying their needs in a superior way. According to Philip Kotler. Marketing can be defined as a social and managerial process by which individuals and groups obtain what they need and want through creating, offering and exchanging products of values with others.

CONSUMER The term customer is typically used to refer to someone who regularly purchases a particular store or company. Thus, a person who shops at FOOD-WORLD or who uses Pepsodent tooth is viewed as a customer of these firms. The traditional view points have been to define consumers strictly in terms of economic goods and services. This position holds that consumers are potential purchasers of products and services offered sale. Here our primary attention will be directed toward ultimate consumers, those individuals, who purchase for the purchase of individual or household consumption. And thus, this view has been broadened over time so that at least some scholars now do not consider a monetary exchange essential to the definition of consumer. CONSUMER MARKET & BUYER BEHAVIOUR : The aim of marketing is to meet and satisfy target customers needs and wants. But getting to know your customers is never a simple job. Customers may state their needs and wants but act otherwise. They may not be in touch with their deeper motivations. They may respond to influences that change their mind at the last minute. BRAND : Branding has been around for centuries as a means to distinguish the goods of one producer from those of another. In fact, the word brand is derived from the Old Norse word brandr, which means "to burn," as brands were and still are the means by which owners of livestock mark their animals to identify them. According to the American Marketing Association (AMA), a brand is a "name,

term, sign, symbol, or design, or a combination of them, intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of competition." Thus, the key to creating a brand, according to the AMA definition, is to be able to choose a name, logo, symbol, package design, or other attribute that identifies a product and distinguishes it from others. These different components of a brand that identify and differentiate it can be called brand elements. Brand elements come in many different forms. For example, consider the variety of brand name strategies that exist. In some cases, the company name is essentially used for all products (e.g., as with General Electric and Hewlett-Packard). In other cases, manufacturers assign individual brand names to new products that are unrelated to the company name (e.g., as with Procter & Gamble and their Tide, Pampers, Iams, and Pantene product brands).

Definition :
An identifying symbol, words, or mark that distinguishes a product or company from its competitors. Usually brands are registered (trademarked) with a regulatory authority and so cannot be used freely by other parties. For many products and companies, branding is an essential part of marketing.

Branding :
Definition
Entire process involved in creating a unique name and image for a product (good or service) in the consumers' mind, through advertising campaigns with a consistent theme. Branding aims to establish a significant and differentiated presence in the market that attracts and retains loyal customers.

Brand awareness :
Brand awareness is a marketing concept that refers to a consumer knowing of a brand's existence; at aggregate (brand) level it refers to the proportion of consumers who know of the brand.

Brand equity :

Brand equity refers to the marketing effects or outcomes that accrue to a product with its brand name compared with those that would accrue if the same product did not have the brand name
[3][4] [1][2]

. And, at the root of these marketing effects is consumers'

knowledge. In other words, consumers' knowledge about a brand makes manufacturers/advertisers respond differently or adopt appropriately adept measures for the marketing of the brand

Brand Strategy :
A plan that employs a unique set of design tools - logo, palette, typefaces, formats, images, and language - created for an organization and applied to all its communication tools: annual report, letterhead, business cards, packaging, .

Brand Awareness :
Brand awareness consists of brand recognition and brand recall performance. Brand recognition relates to consumers ability to confirm prior exposure to the brand when given the brand as a cue. In other words, brand recognition requires that consumers can correctly discriminate the brand as having been previously seen or heard. For example when consumers go to the store, is it the case that they will be able to recognize the brand as one to which they have already been exposed. In other words brand recall requires that consumers correctly generate the brand from memory when given a relevant cue. For example, recall of Kellogg's Corn Flakes will depend on consumers ability to retrieve the brand when they think of the cereal category.

Brand Image :
A positive brand image is created by marketing programs that link strong, favorable and unique associations to the brand in memory. The definition of customer-based brand equity does not distinguish between the source of brand associations and the manner in which they are formed; all that matters is the resulting favorability,

strength and uniqueness of brand associations. This realization has important implications for building brand equity. Besides marketercontrolled sources of information brand associations can also be created in a variety of other ways: by direct experience; from information communicated about the brand from the firm or other commercial or non partisan sources. OPERATIONAL DEFINITIONS OF THE CONCEPTS : Brand: A brand is a name, term, symbol, design, or other feature that identifies one sellers good or service as distinct from those of other sellers. Brand Name: A brand name is that part of a brand that can be spoken, including letters, words, and numbers; a brand name is often a products only distinguishing characteristic Brand Loyalty: Brand loyalty is a customers favorable attitude toward a specific brand, which affects the likelihood of consistent purchase of this brand when the need arises for a product in this product category.

Industry Profile
Fast Moving Consumer Goods FMCG Industry :
FMCG are products that have a quick shelf turnover, at relatively low cost and don't require a lot of thought, time and financial investment to purchase

Fast Moving is in opposition to consumer durables such as

kitchen appliances that are generally replaced less than once a year.

Three of the largest and best known examples of Fast Moving

Consumer Goods companies are Nestl, Unilever and Procter & Gamble.

The Indian FMCG sector is an important contributor to the

country's GDP. It is the fourth largest sector in the economy and is responsible for 5% of the total factory employment in India .

This has been due to liberalization, urbanization, increase in

the disposable incomes and altered lifestyle. . The lower-middle income group accounts for over 60% of the sector's sales. Rural markets account for 56% of the total domestic FMCG demand.

FMCG Evolution :
1950s-80s Low Investment in the sector

Low purchasing power Govts emphasis on small scale sector HLL and other companys urbane focus Post liberalization Entry of MNCs Focus shifted to getting to rural consumer first Others, like Nestle, remained with the urban population Latest fad to hit the market is the sachet bug. Mushrooming of regional brands Nirma enters and changes the focus to Value for Money in
the 70s

Post liberalization, Jyothi Laboratories, Ghari Detergent and

Anchor toothpaste giving the nation-wide brands a run for their money.

FMCG SECTOR :
Fast Moving Consumer Goods (FMCG) goods are popularly named as consumer packaged goods. Items in this category include all consumables (other than groceries/pulses) people buy at regular intervals. The most common in the list are toilet soaps, detergents, shampoos, toothpaste, shaving products, shoe polish, packaged foodstuff, household accessories and extends to certain electronic goods. These items are meant for daily of frequent consumption and have a high return. .

A major portion of the monthly budget of each household is reserved for FMCG products. The volume of money circulated in the economy against FMCG products is very high. Number of products the consumer use is very high. Competition in the FMCG sector is very high resulting in high pressure on margins.FMCG companies maintain intense distribution network. Companies spend a large portion of their budget on maintaining distribution networks. New entrants who wish to bring their products in the national level need to invest huge sums of money on promoting brands. Manufacturing can be outsourced. A recent phenomenon in the sector was entry of multinationals and cheaper imports. Also the market is more pressurized with presence of local players in rural areas and state brands.

THE TOP 10 COMPANIES IN FMCG SECTOR

SL. NO. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

Companies Hindustan Unilever Ltd. ITC (Indian Tobacco Company) Nestl India GCMMF (AMUL) Dabur India Asian Paints (India) Cadbury India Britannia Industries Procter & Gamble Hygiene and Health Care Marico Industries

Industry Watch Total: 1.3 Million Tonne (RS 45 Billion) Organized Sector ( 60 Unorganized Sector %) (40%)

- Parle tops the list in terms of volume Britannia is the numero uno in value terms

The annual turnover of the organized sector of the biscuit manufacturers is Rs. 80 billion in 2007. In terms of volume biscuit production by the organized segment is estimated at 1.30 million tonnes. In the organized sector, the industry is dominated by Britannia and Parle, which account for 70 per cent of the industry's volumes. Britannias market share stands at Rs 27 billion. While Parle derives a large portion of its revenues from low-priced biscuits. Parle-G and Britannia derive a fairly large share of their revenues from the medium- and premium varieties. In fact, Britannia's market share in the medium and premium varieties is significantly higher. Other organized players include domestic players like Bakemans, Champion, Kwality, Priya and MNCs like SmithKline Consumer, Kelloggs, Sara, Heinz, Excelsia (Nestle) and United Biscuits. The annual production of biscuit in the organized sector continues to be predominantly in the small and medium sale sector before and after de-reservation. The annual production was around 7.4 Lakh tonnes in 1997-98. In the next ten years, biscuit production witnessed an annual growth of 10% to 12%, up to 2007-08. The annual Growth showed a decline of 3.5% in 2000-01, mainly due to 100% hike in Central Excise Duty (from 9% to 16 %).

Production in the year 2001-02 increased very marginally by 2.75% where in 2002-03 the growth is around 3%.Thereafter the annual growth increased to over 8 %. The Federation's estimate for the growth of approximately 8% to 9%. However the average utilization of installed capacity by biscuit manufacturers in the country has been a dismal 60% over the last decade up to 2001-02. The average utilization of installed capacity after 2005-2006 has been over 85%. Though de-reservation resulted in a few MNCs, i.e. Sara Lee, Kellogs, Glaxo SmithKline Beecham, Heinz etc entering the biscuit industry in India, most of them, with the exception of SmithKline Beecham (Horlicks Biscuits), have ceased production in the country. On the other hand, import of biscuits, specially in the high price segment has started from 1998-99, but however, the quantum of imports has not so far increased alarmingly and has remained at around 3.75% of the consumption of biscuits in the country. Exports of biscuits from India have been to the extent of 7.5% of the total production. Exports are expected to grow further in the year 2007-08 and beyond. Biscuit is a hygienically packaged nutritious snack food available at very competitive prices, volumes, and different tastes. According to the National Council of Applied Economic Research (NCAER) Study, biscuit is predominantly consumed by people from the lower strata of society, particularly children in both rural and urban areas with an average monthly income of Rs. 750.00. Biscuits can be broadly categorized into the following segments: year 2007-2008 indicates a

Biscuit Category Glucose Marie Cream Crackers Milk Others

Annual Production in Percentage 44% 13% 10% 13% 12% 8%

In recognition of industry's obligations towards the community, being a part of it, biscuit manufacturers supply biscuits to the social welfare agencies in all States for the benefit of school children, senior citizens, and other needy sections of the society. FBMI (Federation of Biscuit Manufacturers of India) Members have always responded positively to our appeal as also by the Government, to rush truckloads of biscuits to the people affected by earthquakes, floods, famine etc. The industry has also participated in supplying biscuits to the people of war ravaged Afghanistan and presently to the Iraqi people, under the aegis of the UN. As regards the consumption pattern is concerned. surveys and estimates by industry from time to time indicate the average consumption scenario in the four Zones have been more or less close to each other, as below: Northern States: 28% Southern States: 24% Western States: 25% Eastern States: 23%

Though India is considered as the third largest producer of Biscuits after USA and China, the per capita consumption of biscuits in our country is only 2.1 Kg., compared to more than 10 kg in the USA, UK and West European countries and above 4.25 kg in south cast Asian countries, Le. Singapore, Hong Kong,

Thailand, Indonesia etc. China has a per capita consumption of 1.90 kg, while in the case of Japan it is estimated at 7.5 kg. Biscuit is a comparatively low margin food product in the PMCG (Packaged Mass Consumption Goods) sector. The commodity is also price sensitive, as a consequence of which, even when the Excise Duty was doubled on biscuits in 2000-01 biscuit manufacturers, including the major brands, were not able hike MRPs to the extend of the steep increase in the Duty. Besides lack of technology upgradation in manufacturing, packaging etc has also been a factor affecting our industry, along with inadequate financial credit and support particularly for the medium and small-scale biscuit units. Biscuit manufacturing as well as other bakery products like Bread etc are agro based industries, with the major inputswheat, flour/atta, sugar, milk vanaspati/vegetable oil etc. all being agriculture produces.

WADIA GROUP COMPANIES

Chemicals Airlines Consultancy Architecture Health Care

Textiles Foods

Britannia Industries Ltd.

Laminates

Wadia Group

Social Welfare Plantation

Electronics & Light Engineering

THE WADIA GROUP TODAY With 116 years at the forefront of industry in India, the Wadia Group is today broadly diversified in several growth industries that cover airlines, textiles, chemicals, petrochemicals, plantations, foods, electronics, light engineering, health, laminates, real estate and consultancy. Consistently, the Group companies have emerged as market leaders in fields they have entered. And over the years the Group has developed

an enviable record of successfully managing diverse technologies.

COMPANY OVERVIEW The Wadia Group of India along with Groupe Danone of France is equal shareholders in ABIL, UK which is a major shareholder in Britannia Industries Limited. GROUPE DANONE is an International FMCG Major specializing in Fresh Dairy Products, Bottled Water and Biscuits/Cereals. One of the World leaders in the food industry, these are some of the laurels it possesses:

No # 1 worldwide in Fresh Dairy Products No # 1 worldwide equally placed in Bottled Water (by volume) No # 2 worldwide in Biscuits and Cereal Products

Through its three core businesses (Fresh Dairy Products, Beverages and Biscuits and Cereal Products), GROUPE DANONE is committed to improving the lives of people around the world by providing them with better food products, a wider variety of flavors and healthier pleasures. Its dominant position worldwide is based on major international brands and on its solid presence in local markets (about 70% of global sales come from brands that are local market leaders). GROUPE DANONE is recognized for the dynamism and strength of its brands:

Danone: the leading brand worldwide for Fresh Dairy Products; DANONE represents almost 20% of the international market. DANONE is present in 40 countries worldwide. Evian: the best selling mineral water brand, with 1.5 billion bottles sold every year. Present in the 5 continents, in 125 countries. LU: the second brand worldwide, the first biscuits brand of GROUPE DANONE, which represents almost the half of the sales for the Biscuits and Cereal Products division. LU is mainly present in Western Europe. Wahaha: the leading brand for refreshing still water (water, ready made tea, fruit juices). The brand is one of the most popular in China, with more than 1.5 billion liters of water sold each year. Its name means "the child who laughs".

Financial results:

Net sales in 2004: 13,024 million Euros (+6.1% at comparable scope) Operational Income: 1,706 million Euros Operating Margin: 13.1% (+40 base points in relation to 2004).

VISION OF WADIA GROUP Think Of A Purpose That Spirals Forth To Create Innovations From Within. This Visionary Zeal; Built On Trust And Knowledge, Has Empowered The Wadia Group In Various Business Enterprises For more Than A Century. It now promises much more in the New Economy ...

HISTORY of Britannia Industries Ltd Started way back in 1892 with an investment of Rs. 295, biscuits were manufactured in a small house in central Kolkata. Later, the business was acquired by the Gupta brothers and operated under the name of V.S. Brothers. In 1918, C H Holmes, an English businessman in Kolkata was taken as a partner and The Britannia Biscuit Company Limited (BBCo) was launched. The Mumbai factory was setup in 1924 and Peak Freans, UK acquired a controlling interest in BBCo. Biscuits were in big demand during World War II, which gave a fillip to the companys sales. BBCo celebrated its golden jubilee in 1968 and the company name was changed to the current Britannia Industries Limited in 1979. In 1982 Nabisco Brands Inc., USA became a major foreign shareholder. Ten years later in 1992, Britannia Industries Limited celebrated its platinum jubilee. The following year, the Wadia Group acquired a stake in ABIL, UK and became an equal partner

with

Grope

MILESTONE OF BRITANNIA INDUSTRY LTD. Danone in Britannia

1918: Incorporation of company 1921: 1st Indian Biscuit Company in India to instal and run a gas oven plant. 1951: Company went Public 1980: Technical collaboration with Nebico 1986: Turnover increased for the 1st time by 19.4% 1991: Joint Venture with JMRP Co. Ltd. 1997: Diversification into cheese and dairy whitener 2001: Joint Venture with Fonterra Co-operative Group 2004: Marketing Alliance with Kolkata based Thacker Dairy Products Pvt Ltd. 2006: Britannia buys Caf Coffee Days stake in Daily Bread

Bakery Industry

Bread

Biscuits

Cake

INDUSRY OVERVIEW
Market size
Cakes 13%

Key Success Factors

Quality
Buscuits 37%

Bread 50%

Taste

Product
Britannia has restructured its portfolio of products at regular intervals, to constantly redefine and strengthen the Indian biscuit market. This strategy has enabled it to serve the key needs of the Indian consumer across age groups and diverse consumption situations, through an optimum range of brands. The success of this strategy enabled Britannia to reduce the number of focusbrands from 24 in 1998, to nine in 2001. All its product offerings derive their premium qualities from the principles of health and taste. This key premise has led to the evolution of a lifetime menu where a Britannia product exists for every stage in a persons life. The highest consumption group for biscuits are children; here Britannia offers Milk Bikis with all the goodness of milk required by younger kids, while the Tiger brand is aimed at 7-14 year olds and provides them with the exuberant health required by winners of tomorrow. Another offering for children Treat, a range of delicious cream biscuits is meant as a treat for children during fun times. A particularly notable success has been Little Hearts, meant for teenagers and kids, which has completely dispelled an erstwhile

industry axiom that this target group did not snack on sweet biscuits.

Bread Segment
HOW THE BREAD GETS ITS SPRING

Un-organized Sector Constitute 70%

Modern Foods, Britannia, and Wibbs are major players Unorganized sector constitute 70% of the markets Modern and Britannia account for 90% of the organised market Rural market accounts for 40% of bread consumption

Organized Sector 30%

Biscuit Segment

Products of Britannia Industries Ltd

Biscuits Marie Gold Cream Treat Maska Chaska Good Day Milbikis Little Hearts Pure Magic Tiger Bourbon Bread Frozen Desserts Cakes Cup Cakes MerriCake FruitCake Half-Half Dairy Products Milk: Good Morning Cheese Butter

Product contribution in revenue generation Of Britannia

Revenue Generation
Other Products 15%

Biscuits 85%

Bakery Products

Other Products

Pricing Model of Britannia vis--vis its Competitors

Low Price for all varieties Low Price for all varieties & High volume ieties & High volume High High margins in cream variants & Volume from others margins in cream variants & Volume from others

Parle & other players

Britannia & Sun feast (ITC)

Supply Chain
Raw Materials Manufacturing Unit

CFA

Regional Warehouse

Distributors

Retailers

Geographical Coverage

Index:
Functional Manufacturing Unit : Delhi, Kolkata, Uttaranchal, Chennai Contract Manufacturing Units: Asansol, Guwahati

Market Share of Major players in Bakery Industry (Volume)

Comparative Market Share

Market Share (Volume) 50 40 30 20 10 0 2004-05 Year 2005-06

(Volume)
Britannia ITC Parle Priya Gold

USA

Saudi Arabia Kuwait Ghana

Seychelles Singapore Oman Bahrain Qatar UAE

Exports Division

USA Kuwait Saudi Arabia Ghana Seychelles Singapore Bahrain Qatar UAE Oman

Strategies Adopted

Joint Venture Innovation Distribution Acquisition Contract Manufacturing Niche Marketing

Market
Baking practices were well known to Indian cuisine for thousands of years, but the humble biscuit became a familiar and commonplace item of diet only during the 20th century. The products and marketing strategies of Indias premier food company Britannia Industries.

Limited over the last century have been responsible for this remarkable dietary acculturation. The entire biscuits market is estimated to be 1.1 million tones per annum, and valued at over Rs. 50 billion.

The biscuits segment enjoys one of the most developed markets for any item of mass consumption, covering over 90 per cent of the overall potential market. This implies that over 900 million Indians buy and eat biscuits, with varying frequency in any year. The market is highly competitive at the supply-side, with

thousands of small-scale manufacturers as well as others in the organized, large-scale sector. The strength of the Britannia brand is demonstrated by the fact that it stands far above all in this fiercely competitive market, with over 46 per cent market share, by value Achievements Britannia is synonymous with the rise and growth of the biscuit industry in India. Throughout this process it has displayed an uncanny intuition about emerging popular tastes for biscuits. This foresight, coupled with the will to innovate and evolve new products, has been the impetus that has propelled the Britannia brand ahead of the rest. Being the market leader, Britannia Industries operates under an underlying principle of setting its own rules and standards that have almost always become the adopted paradigm for the entire biscuit industry. It brought the health dimension to an industry that was traditionally driven by taste alone. This is reflected in Britannias brand slogan, introduced in 1997 that exhorted consumers to Eat Healthy, Think Better. This was quickly embraced by the entire industry to come up with similar promotional campaigns showing biscuits to be an epitome of a healthy, happy diet. Going beyond biscuits has been the most difficult challenge and a litmus test for the company. Britannia entered the dairy category with the launch of Britannia Milkman range of dairy products. With the success of Britannia Milkman Cheese, it achieved a niche for itself in a category that was defined by a competitor that had created the category. Britannias products retail in over 2 million outlets, selling approximately 200 million packs a month. With millions of happy consumers every month, Britannia is considered to be one of the most trusted food brands in India (Source: ET Brand Equity Study, 2003). Britannia has also successively made the Forbes List of 200 Best Small Companies in the world for the years 1999, 2000 and 2002. .

BRITANNIA TO EXPAND IN MIDDLE EAST

BANGLORE: Britannia Industries Ltd announced on Wednesday that it proposes to acquire a majority stake in two bakeries Product Company in the Middle East market. This is consistent with Britannias growth strategy to expand its international presence. The acquisition of shares is subject to signing of definitive agreements. Details will be made available upon signing, a company release said. Britannias brand portfolio includes Tiger, Marie Gold, Good Day, 50:50 and Treaties in the Middle East market.

PRODUCT OVERVIEW: BISCUIT SEGMENT

Britannia Marie Gold Doubles Everybody's favorite Marie biscuit now comes in a completely new avatar! Recently launched in Tamil Nadu, Britannia Marie Gold Doubles is all about doubling expectations and experience. Naturally, everything about it is new and exciting. This special variant of Marie, through a patented production process, offers three delicious layers in a new flavor concept - with the same old crispiness and a subtle new taste. The shape of the new Marie Gold Doubles biscuit is completely altered and nowhere resembles the classic round Marie biscuit. The premium packaging is also a breakthrough design with an outer sleeve and unique shape. So whether people savor the biscuit themselves or gift it, Britannia Marie Gold Doubles is definitely double the enjoyment! Britannia 50-50 Pepper Chakkar The launch of the latest 50-50 variant left everybody guessing "What it eez?" From TV ads, radio, outdoor and in-store display materials to events, a website and SMS and email blasts, traditional and new media were blended synergistically to create excitement and curiosity about the unique taste of the biscuit. The tangy and distinctive pepper flavored biscuit, that's thin and crispy and more like a snack, caught the imagination of a younger audience craving something to nibble on. The 50-50 Pepper Chakkar launch is truly a case of leveraging the marketing mix to best advantage.

More Power to Britannia Treat! In a one-of-its-kind tie-up with the immensely popular kids' show "Power Rangers" on Toon Disney, Britannia Treat created a huge buzz amongst kids. The brand activity targeted children in three cities - Delhi, Mumbai and Bangalore - at various touch points such as schools, malls, residential colonies and amusement parks. The idea behind it was to bring fun and adventure into the Britannia Treat brand of cream biscuits with the help of a unique new collectible toy - the Power Rangers Shooter. These exciting new toys were available with packs of Britannia Treat, and kids had to collect them to solve the "Power Rangers" contest. An eye-catching float, specially designed to promote this contest, was moved around these cites and became the pulse point of "Shooter Mania". At the end of 10 days, the activity touched 225 schools across the three cities and reached more than 50,000 kids - and got every kid talking about Britannia Treat. Britannia Tiger's 'Alti Palti' Offer for Children Alti Palti was an exciting offer to go with the most popular biscuit in the country - Britannia Tiger. Children love lenticular or 3D picture collections and Tiger biscuits gave them just that. With the purchase of Britannia Tiger, kids collected lenticular gifts such as rulers, book labels, bag tags and stickers. Each gift had the animated Tiger mascot on it doing crazy things like skateboarding, cycling, dancing and more. The Alti Palti craze caught on like wildfire amongst the kids - just like Britannia Tiger biscuits!

THE ORIGIN OF EAT HEALTHY, THINK BETTER Britannia -the 'biscuit' leader with a history-has withstood the tests of time. Part of the reason for its success has been its ability to resonate with the changes in consumer needs-needs that have varied significantly across its 100+ year epoch. With consumer democracy reaching new levels, the one common thread to emerge in recent times has been the shift in lifestyles and a corresponding awareness of health. People are increasingly becoming conscious of dietary care and its correlation to wellness and matching the new pace to their lives with improved nutritional and dietary habits Britannia saw the writing on the wall. Its "Swasth Khao Tan Man Jagao" (Eat Healthy, Think Better) re-position directly addressed this new trend by promising the new generation a healthy and nutritious alternative that was also delightful and tasty. Thus, the new logo was born, encapsulating the core essence of Britannia - healthy, nutritious, and optimistic - and combining it with a delightful product range to offer variety and choice to consumers WHAT MAKES A BRITANNIAN

If you think Britannians are extraordinary individuals who are passionate about ever they doand succeed in everything they doyoure probably right. Britannians are ensure Market Leadership and generate exemplary performance in every function.

Britannians exhibit the following leadership behaviors (we fondly call Bulbs Britann

Integrity Team Orientation People Development Learning Orientation Customer Orientation Quality Orientation Drive for Results Entrepreneurial Spirit System and Process Orientation Communication

FINANCIAL PERFORMANCE(FY-2006) Britannia's gross sales turnover increased to Rs 18,179 mn in 200506 from Rs 16,154 mn in the previous year, registering a growth of 13%. Operating profit at Rs 1,763 mn increased by 7%, profit before tax and exceptional items at Rs. 1,958 mn declined by 19% against 2004-05 , impacted by the profit on sale of long term investments that accrued to 'other income' last year.

The Company achieved these results despite significant increases in input cost, particularly sugar, fuel and oils, coupled with aggressive pricing in the industry. Your Company's focused initiatives on commercializing market place opportunities, supply chain efficiencies and overall cost management resulted in its top line growth and profitability. Operating margin at 10.3% in 2005-06 compared with 10.9% in the previous year was impacted by the inflation in input costs. Despite stiff competition, your Company stabilized and held its overall market share at 31.7% in volume and 38.8% in value for the last year.

Exports turnover during the year was Rs 111.71 mn against Rs 71.65 mn in 2004-05, a growth of 56%.

The major exceptional items during the year were:

Compensation and amortization of VRS costs -- Rs. 111 mn Profit on sale of properties -- Rs. 117 mn

After considering all the exceptional items, PBT and Net Profit works out to Rs. 2,007 mn and Rs.1464 mn Earnings per Share are Rs. 59.96 for 2005-06. The Company's largest brand - Tiger, was successfully renovated with the re-staging of Tiger Glucose and the fortification of Tiger Creams. New variants were introduced in Treat Duet and "Pepper Chakkar" was launched under the 50:50 brand umbrellas. The Company also introduced Marie Gold Doubles in a totally new to market format and a new range "Greetings" - an assortment of biscuits was introduced during Diwali, targeted at the large gifting opportunity. The Company also seized the growing opportunity in adjacent categories like Cakes and the launch of Cup Cakes was the first step in strengthening this business. Additionally, new packaging formats

were introduced in several markets to tap into attractive price points from consumers' perspective. Britannia will continue to invest in its brands and deliver growth through an emphasis on brand activation, anchored by new product launches. INVESTORS OVERVIEW The success of Britannia lies in its strategy of identifying high value opportunities and capitalizing on them through relevant and differentiated brands, supported by an effective and efficient supply chain. The fountainhead of this strategy is Brand Building, i.e. increasing consumer relevance, preference and purchase. The key drivers are availability, presence, and merchandising for brands that offer consumers a satisfying experience across a variety of consumption occasions, and price points that represent good value for money. As a corporate, Britannia has worked for the benefit of all stakeholders - shareholders, consumers, dealers, suppliers, bankers, and employees. It has established an excellent track record in terms of its financial performance and dividends distributed to its shareholders. This has been adequately demonstrated with the Company's top line growing from Rs. 7,523 mn in 1997 to Rs. 18,179 mn in 2006 -a growth of 142% over the last 10 years. The net profit grew even more significantly at 718% from Rs. 179 mn in 1997 to Rs. 1,464 mn in 2005-06. As of 31st March 2006, the issued and paid up capital of Britannia amounts to 23,890,163 equity shares having a nominal value of Rs. 10/- each. The shareholder base is about 23,000 in number. Britannia's shares are listed at the Bombay Stock Exchange, National Stock Exchange and Calcutta Stock Exchange.

BONUS AND DIVIDEND HISTORY Britannia has an excellent track record of rewarding its shareholders. The company has an uninterrupted record of distributing dividends for several decades. The dividends declared over the last 10 years are as under:

Year 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

Dividend Percentage 40.00 40.00 50.00 55.00 45.00 55.00 75.00 100.00 110.00 140.00 150.00

Bonus History

Year 1961 1966 1968 1971 1976 1984 1987 1990 2000

Bonus Particulars 1 equity share for every 2 shares held 4 equity shares for every 10 shares held 2 equity shares for every 3 shares held 2 equity shares for every 3 shares held 7 equity shares for every 10 shares held 2 equity shares for every 5 shares held 2 equity shares for every 5 shares held 1 equity share for every 2 shares held 1 equity share for every 2 shares held

TAKING A BRAND GLOBAL( Britannia)

For a brand to be truly global, it has to address a fundamental consumer need, while consistently reflecting the same set of values across the world. DEVELOPING a global brand largely depends on the brand's ability to explore fresh avenues and sustain its competitive advantages in terms of economies of scale and productivity. A global brand is one that is perceived to reflect the same set of values around the world and removes national barriers and linguistic blocks while being marketed internationally. The basics of brand building apply to global branding strategy also. For a brand to become successful, a genuine demand or a psychological need must exist in the target market Today, when we look at the global market, we need to realize that at the most basic level all human beings share common physiological and safety needs as explained by Abraham Maslow in his `hierarchy of needs'. What separates one customer in one part of the world from another somewhere else are the complex social, cultural and esteem needs each of them has, depending upon the stage at which the civilisation/ nation is in the process of development. And despite centuries of technological development, these needs have remained as crucial as ever. At best they have undergone changes or modifications due to cultural and social processes. The real challenges for a brand manager come when he has to make the consumer aware about the product/service offered using a distinctive pattern, perhaps with a name, logo or colour, so that the strategy enables the customer to correctly identify and choose the brand from a cluttered basket. The brand's strength is not confined to the degree of recognisability and the quality of the product offering. Strong global brands cater to strong emotional needs. A brand such as Nike talks about believing in one's limitlessness, while one such as Rin speaks about destroying dirt, which is presented as a threat that disrupts the neat orderly world that we live in. A strong global brand while addressing a fundamental human motivation caters to this motivation in a distinctive way. It is driven by a distinctive brand idea, with the product being seen in the

marketplace merely as an expression of the brand idea. The product merely translates the brand idea into a tangible form, with features and styles, which is delivered to the consumer. For example, the brand idea associated with Dettol is the complete protection it provides users from dirt and infection. The company has adopted this idea across the globe irrespective of the cultural domain it targets. Consumers in all these countries experience the brand idea only through the strategic actions of the brand in the marketplace. These brands send market signals consistent with the idea they stand for. Starting from the tangible attribution of the brand through the product to the integrated marketing communication, the brand consistently sends the same signal in every market. The more consistent this marketing signal, the clearer the brand image across the country for global brands. Research suggests that strong brands are built over time. Trust in a brand gets built over a large number of interactions across a range of situations. So a strong global brand is like a network of complex psychological and market structural issues that include situations, associations, behaviors, feelings and symbols held together by a strong and powerful central idea. A successful marketing strategy has two options in creating a market presence. It can kill competition by constant communication and advertising or use communication to make customers experience the brand and discriminate in its favor. A strong global brand creates associations in the consumers' mind to make them see differently by guiding consumers to attach distinct functional and emotional benefits and appropriate meanings and beliefs to the brand. As a response to this effort, the consumer is willing to pay a premium for these brands only if they represent added value whether as superior quality or a clear emotional benefit.

Britannia's connection to health is known the world over. Brand communication should also communicate and connect to people. The links between Britannia and health are felt all over the world. This connectivity is the rational justification for people to overcome the extra spending required to acquire the brand. Successful brands live beyond generations due to this ability to connect. It is also not just a question of satisfying customers of different countries with varied cultural backgrounds, but also one of connecting with new generations of consumers with new sets of values, hopes and ambitions. For a brand to be successful globally, it has to click across the vertical class of generations and horizontal mass of global markets. In a global economy, organizations must reach customers in markets far from their home base. Strong brands act as ambassadors when companies enter new markets or offer new products. They also help in rectifying the corporate strategy to define which initiatives fit within the brand concept. Professional services companies such as Andersen Consulting re-branded as Accentor have realized that conveying a sense of trust and shared mission is as important as technical competence in winning multimillion dollar contracts across the globe. Information and the media have made us all global citizens. This presents an organization with the opportunity to broaden market scope by internationalizing product and service marketing in order to reap the benefits of economies of scale.

Issues in developing a global brand

There are various issues at the organizational level that influence the global branding strategy. There are two strategic parameters

affecting decisions on global branding. They are the relative strength of globalization pressure in that particular industry and the degree to which the company has internationally transferable assets. If globalisation pressures are weak and the company's assets including the brand are not transferable, then the company need not go in for a global brand. It should concentrate on creating a higher brand value in the domestic. If globalisation pressures are weak and the company has transferable assets, then it should look at extending these to a similar market using a global brand. The home advantage due to a strong brand proposition can be used as a platform for building brands in selective markets. By this the company can reap added revenue and scale economies with valuable international marketing experience. This category of global brand extension goes in for looking at analogous international markets that are similar to the home market in terms of consumer preference, geographic proximity, cultural similarity or even government regulation. Bajaj Auto's extension to the South Asian market for its three-wheelers is an example of brand success in an analogous market. The success of Indian films with a typical emotional branding is another example of brand success. Companies can look for countries with a common cultural and linguistic heritage. The success of Ramanand Sagars serial Ramayana in the Asian market is another example. The story of Asian Paints in the Indian market has made it to go in for global branding in countries such as Nepal, Fiji and Korea with its typical low cost formulations and service delivery propositions to support the brand name `Asian Paints'. Companies from emerging markets can also go global and launch global brands. However, for having a global brand one has to take into consideration a different set of opportunities and constraints. The low cost of wages and proximity to raw materials also gives domestic companies a competitive advantage to go global. If these players can overcome the deficiencies in skills and financial resources, then launching a global brand will be a difficult proposition. The success of Infosys and Wipro as brands in the global market is examples of global branding successes in the hi-tech industry. However, there are many complex factors that can affect a global marketing strategy. These include the nature of the product (for example, consumer durable products being more suited to

standardization than non-durables), features of a particular market and even organizational history.

Common approaches to global branding

The development of standardized marketing strategies can vary dramatically. For example, should the strategy be based on the common features of a transnational mass market or upon the identification of common clusters in different countries? The problem for a multinational organization is that it operates in a number of countries and adjusts its products and practices in each at substantial cost. So, by standardizing elements of the marketing mix through an international strategy, the argument is that efficiency can be greatly improved. But question marks hover over the extent to which a uniform marketing strategy can be implemented. A great deal of diversity exists in geographical markets in terms of physical conditions and marketing infrastructure, not to mention political and cultural issues which may have an impact at the brand and advertising level. Cultural disparities can be a major stumbling block for the generation of transnational brand names. Initiatives such as the World Trade Organization are obvious attempts to combat some of these problems by the removal of national differences and the creation of a borderless world. The idea is that this will enable the rationalization of product mixes to eliminate brands geared towards particular local requirements.

Technology - a catalyst to product standardization

The development of the Internet and satellite television has paved the way for cross-boundary advertising and promotion. But management experts have also recognized that a basic similarity in tastes between countries is an important factor. Significant commonalities exist in Japanese, American and European lifestyle patterns and consumer demands. It is often argued that increasing travel and electronic communications will lead to the harmonization of such tastes and preferences. Various factors affect the extent to which companies adopt a uniform global branding approach. There are several types of transnational approaches that can be adopted. The `geocentric' approach is of interest here as it may be viewed as being synonymous with the term `global branding' whereby a company attempts to identify similarities among markets and implement

strategies with standard components. However, standardization and globalisation are not necessarily synonymous, as companies may adopt global branding strategies that can contain within them varying degrees of adaptation to local conditions. The standardization of global branding will take account of two broad dimensions the marketing process and the marketing mix. In terms of the marketing mix, the manner in which a brand is positioned can affect cross-border transferability. Price is also a key issue as it can reinforce the position and perception of a brand. Price can vary dramatically in different countries due to the competitive structure of the market and taxation. Therefore, substantial pricing differences can lead to different brand strategies being pursued. But brand identity and a clear, consistent message across countries can be asserted through standardized packaging. Literature surveys carried out for this article examined the global fast-food industry. It was found that there was a variation in the branding strategies of the companies involved, despite the fact that many were striving to develop some degree of standardization. This seems to indicate that the creation of a global strategy will meet considerable local obstacles. The transition of the Marathon brand to Snickers and Opal Fruits to Starburst may indicate that global branding tends to be developed incrementally. As we can see this leads to long established brands in one country being sacrificed in order to achieve harmonization.

Market Share of Major players in Bakery Industry (Value)

Comparative M arke t Share (Value)

50% Market Share (Value) 40% 30% 20% 10% 0% 2004-05 Ye a r 2005-06 Britannia ITC Parle Priya Gold Others

SWOT Analysis
Strength:
Joint venture with Fonterra Cooperative of New Zealand (Technology). Well Recognized Brand Name. A well-established distribution network.

Weakness:
Limited ability to invest in technology. Low Export Levels. Several "me-too products.

Opportunities: Reduction in Excise Duty Cater to low income segment. Existence of relatively small players like Nutrine, Brakemens, etc.

Threats: Presence of major players in the same line of business. Inconsistent Financial Performance Local Brands Unorganized sector

Future Strategies
Acquisitions in overseas & domestic markets Expansion of Production Capacity Diversify into other areas of Food and become a complete Food Industry. Entering into more outsourcing contracts

BIBLIOGRAPHY

BOOKS: Marketing Management by Philip Kotler Essentials of Marketing Management NEWS PAPERS: THE ECONOMIC TIMES THE TIMES OF INDIA THE BUSINESS AGE THE BUSINESS STANDARD THE INDIAN EXPERESS MAGAZINES: BUSINESS INDIA INDIA TODAY

INTERNET WEBSITES: www.britanniaindustries.com www.google.com www.parlebiscuits.com