Research Methodology
Research Methodology
Research Methodology
FMCG are products that have a quick shelf turnover, at relatively low cost and don't
employment in India .
This has been due to liberalization, urbanization, increase in the disposable incomes
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
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.
SR.
Companies
NO.
1.
2.
3.
Nestl India
4.
GCMMF (AMUL)
5.
Dabur India
6.
7.
Cadbury India
8.
Britannia Industries
9.
10.
Marico Industries
RESEARCH METHODOLOGY
OBJECTIVE OF THE PROJECT
1. To study the research management in general.
2. To have a deep knowledge of Britannia Industries.
1. This study will be useful for further knowledge and it will be easy to study the
topic.
company
in
1892
and
has
grown
to
household
name.
Britannia started its business in Calcutta (now Kolkata) with an initial investment of Rs.
295. From thereon, Britannia's business flourished acquiring a reputation for quality and
value.
3
Britannia Industries Ltd. has a number of awards and accolades in its name like :
o Forbes Global rated Britannia 'One amongst the Top 200 Small Companies of the
World'.
o The Economic Times pegged Britannia India's 2nd Most Trusted Brand.
Activities
Britannia product line includes biscuits, snacks, packed milk, cheese, butter, buttermilk
and yogurt. Britannia owns popular brands like:
GROUPE DANONE three core business areas are Fresh Dairy Products, Beverages and
Biscuits and Cereal Products strives to improve the lives of people around the world by
providing them with better and value added food products. Its dominant position worldwide
is based on major international brands and on its rock solid presence in local markets (about
70% of global sales come from brands that are local market leaders.)
Performance
Britannia has registered a turnover of Rs 21,993 million for the year ended 31st March 200607. Britannia has posted Net Profit to the tune of Rs 1076 million for the year ended 31 st
March 2006-07.
4
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, optimistic - and combining it with a delightful product range to offer variety and
choice to consumers.
2006-07 was an exceptional year for Britannia with top line sales growing at 27.5%, making
Britannia the leader among FMCG Companies in terms of organic growth. It also saw the
Bread, Cake and Rusk business grow 54% to become a Rs. 2,000 mn business.
Top line growth was driven by investment in the fundamental growth pillars of brands renovating existing brands and launching new ones and expanding reach. With the segmented
and sharpened go to market strategy , Britannias brands now have greater availability in rural
markets and pervasive presence in modern trade.
was ranked second among FMCG Companies in the Business World Most Respected
Company Survey2006.
Britannia's strategy of strengthening and sharpening its brands and liberating them from
existing formats and conventional biscuit archetypes has paid off. In that context, Tiger is
now more than a glucose biscuit and includes cream and coconut varieties. The Tiger Chota
extension draws on the kids snacking habit presenting biscuits as small, pop-able, snacks in a
pouch pack. Similarly, Treat added Fruit Rollz to its repertoire of delightful and indulgent
experiences
for
kids.
Innovation has shown its promise as a key business driver addressing several purchase and
consumption opportunities both in-home and out of home, as well as for gifting. Britannia's
focus on innovation has meant more new offerings (brands, product and pack forms) than the
rest of the industry combined. Prominent innovations include Chota Tiger, 50:50 Chutkule,
Treat Fruit Rollz, NutriChoice Digestive, NutriChoice Sugarout, Renovated Milk Bikis and
Chocolate Cream in the Tiger range. The Bread, Cake and Rusk portfolio was strengthened
with the successful national launch of Good Day cup cakes and extension of rusk to the
south.
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 topline growing from 8, 478 Mn in
1998 to 23,171 mn in 2007, a growth of 173% over the last 10 years. The net profit grew
even more significantly at 273 % from Rs 289 Mn in 1997-98 to Rs 1,076 Mn in 2006-07,
giving
CAGR
of
15.72
%.
biscuit
with two-in-one flavour viz. double cream and this was well received in the market. In the
cake market, under the premium segment, the company launched with Groupe Danone's
technological input a Swissroll Cake Mini Roule which was also met with good response.
1996
- Marie gold biscuits registered quantum growth in volumes and milk bikis milk cream
launched during the year was well received. Despite general slowdown in the economy the
company's profits improved.
1997
- The Biscuit industry has been dereserved which would not only remove restriction on
increasing capacity but would also provide opportunities of growth through new products and
efficient production systems. The Company undertook to diversify into cheese and dairy
whitner.
- The Company launched `Tiger' range of biscuits for mass market category, `Jim-Jam' and
`Chekkers' in the premium segment. The Company also launched Butter in Delhi during the
year.
- Britannia Industries Ltd is all set to launch a new corporate identity and a total revamp of
its product portfolio, with strategic inputs from an international strategic design and brand
repositioning company - Shining Strategic Design.
1998
- Food major Britannia Industries Ltd (BIL) has signed a wage agreement with the
Maharashtra General Kamgar Union (MGKU), providing an average wage increase for 1,000
workers employed in the biscuit manufacturing unit at Reay Road, Mumbai.
- The company has launched Half/Half, a soft cake filled with cream in two variants,
chocolate-vanilla and vanilla-orange. Half/Half comes in a twin-cake pack (Rs.6) and a tray
pack containing five cakes.
1999
- Britannia Industries Ltd has rolled out its flavoured milk brand `Zip-Sip' in tetrapaks. ZipSip has been launched in Mumbai and some markets in the South.
- Britannia Industries, launching the country's first branded flavoured milk is another step
towards its goal of becoming a dairy-products giant.
2000
- Britinnia Industries has launched consumer promotion scheme `Britannia Khao, Cricketer
Ban Jao' on May 1st.
- Britannia Industries, in its second coming in the Indian dairy market under the `Milkman'
brand, is introducing a range of products many in desi flavours to woo the Indian consumer.
- The Company has launched Vita Mariegold, a semi-sweet biscuit which reportedly has 10
essential vitamins, milk protein and 58 cereals.
2001
- Britannia Industries has launched Britannia Milkman Milk in Delhi.
- Biscuits major Britannia Industries will fund its in-principle agreement to acquire 49 % of
Kwality Biscuits through internal accruals.
2002
-Britannia Industries Ltd announced on March 26, 2002 that it has entered into a joint
venture with the Fonterra Cooperative Group, New Zealand's biggest company and one of the
leading diary co-operative groups in the world.
-Britannia's new COO is Nikhil Sen.
2003
- Board of Directors of Britannia Industries Ltd has passed a resolution to terminate the
employment of Mr S K Alagh as Managing Director of the company with immediate effect.
- The management of Britannia Industries has roped in John Miller, a Danone
representative, as additional director on its board.
-Britannia New Zealand Foods, a joint venture of Britannia Industries and Fonterra Cooperative group of New Zealand has launched Britannia MilkMan fresh milk.
2004
-Britannia Industries Ltd has informed that pursuant to the approval of the shareholders of the
9
Company at the AGM held on August 08, 2003 and the subsequent application to the Cochin
Stock Exchange Ltd., the said stock exchange has delisted the securities of the Company with
effect from November 15, 2003.
2005
-Britannia New Zealand launches health drink for adult.
2006
-Britannia Industries Ltd has forged a strategic alliance with CCD. Daily Bread Pvt Ltd a
Bangalore based Company engaged in manufacturing and retailing of premium breads, cakes
and high end ready to eat foods and snacks.
-Britannia Industries Ltd has appointed Mr. Stephan Gerlich as a Director.
3. Companys Background
10
PLANT LOCATION :
Britannia's plants are located in the 4 major metro cities Kolkatta, Mumbai, Delhi,
and Chennai. A large part of products are also outsourced from third party producers. Dairy
products are out sourced from three producers - Dynamic Dairy based in Baramati,
Maharashtra, and Modern Dairy at Karnal in Haryana and Thacker Dairy Products at Howrah
in West Bengal.
Britannia had spent 0.1 million US$ to hire Paris based designer Shombit Sen Gupta
to create a logo and packaging design. The logo had three objectives:
Give consumer reassurance that it was a trusted and familiar brand.
Britannia has the ability to change.
It had to be appropriate to the business the company was in.
The logo consists of the companys name and slogan, Eat Healthy Think Better. The
Hindi rendition is Swastha Khao, Tan Man Jagao. The corporate statement Eat Healthy
Think Better captures the Indian concept of the unity of mind and body.
The logo has three colours red, white, and green each having its own significance.
Colour Red denotes Energy and Vitality. White denotes purity. Green stands for Nutrition and
Freshness. The strike communicates Innovation and Futuristic Power of Britannia.
Today, Britannia is the largest biscuit and bakery company in the country with the
daily sales turnover of over Rs. 8478 million. It is the market leader in the 1.3-million tonne
Indian biscuits industry with a 60% share. It has maintained market leadership with a 48%
value market share in the organized sector.
Britannia core businesses constitute of Bakery and Dairy products. Bakery products
account for 90% of the revenues and include Biscuits, Bread and Cake & Rusk. Dairy
products contribute to 10% of Britannias annual turnover of Rs13.38bn. Throughout its
existence, Britannia has operated on the principles of providing products to the consumers
that are healthy and tasty. This is brought about by the use of high quality ingredients with a
strong focus on naturalness and modern manufacturing practices. The company today has a
wide range of bakery products in the biscuit, bread and cake segment. It has trimmed down
its wide product portfolio by reducing the products from 35 to around 25 and began to focus
11
BREADS
DAIRY
RUSK
Good Day
Cheese
Nice Time
Chunk Cake
Crackers
Bread Assortment
Accompaniments
12
CAKES
NutriChoice
Muffills
Marie Gold
Tiger
Milk Bikis
Jim Jam + Treat
Bourbon
Pure Magic
Little Hearts
GLUCOSE BISCUITS
TIGER
CHOTA TIGER
TIGER CHAI BISKOOT
TIGER ROSEMILK CREAM
TIGER BRITA ENERGY POPS
13
14
MARIE BISCUITS
MARIE GOLD
VITA MARIE GOLD
MILK BISCUITS
MILK BIKIS
MILK BIKIS CREAM
GOOD DAY BISCUITS
GOOD DAY CHOCONUT
GOOD DAY BUTTER SCOTCH
GOOD DAY HONEY & RAISIN
GOOD DAY CHOCLATE CHIP
GOOD DAY RICH BUTTER COOKIES
GOOD DAY RICH CASHEW COOKIES
GOOD DAY RICH PISTA BADAM
50-50 BISCUITS
50-50
50-50 MASKA CHASKA
PEPPER CHAKKAR
15
LITTLE HEARTS
LITTLE HEARTS CLASSIC
PURE MAGIC
PURE MAGIC
16
oGalsVSPrOMuetgbjcimvn
VISION
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
17
Quality Objectives :
Reduction in customer complaints
To start documentation of market returns dealer wise
To empower the workmen on individual work area to ensure that only quality product
are passed on the next page of production.
Continuous training for the development of human resources.
To minimize the accident level.
As part of the growth strategy, the company always try to build on the values of brand
"Britannia" by aggressively pursuing tasty yet healthy offerings of mass appeal and also
launching a host of affordable products, which would help rejuvenate the mother brand and
drive category consumption.
Goals
Once the company developed their vision, mission and core values, they can then develop
the goals and objectives needed to achieve your vision.
Goals are general statements of what Britannia wants to achieve. So they need to be
integrated with their vision. They also need to be integrated with their mission of how they
are going to achieve their vision.
To improve profitability
To increase efficiency
6. Marketing Strategies
BRITANNIA company has won many awards , because of their high quality products and
customer satisfaction and became 1st biscuit company in world. Since they are also worth for
their marketing strategies lets gaze across.
The main marketing strategies followed by the firm are-
18
Product strategy.
Reduced losses by way of elimination of losses.
Target customers to capture growth in each category by segmenting the market both
along conventional lines and through segmentation.
Look beyond the product, at the customer. And use knowledge to reposition the brand.
High class R&D, and recently enhanced testing and evaluation facilities
A corporate image of quality.
Eat Healthy. Think Better. Buy Britannia. The 80-year-old biscuit king is
reinventing itself. Britannia now wants to become a foods giant, with the newly-added
tag of health and nutrition. What's more, with a clever formula of prices and products,
it is targeting every segment of the Indian market.
After all, the Rs 1,030-crore Britannia had spent a whopping Rs 10 crore on the bkwcj
contest-the single biggest promotion ever in the Indian marketing history. Instead of
concentrating on a few of its biscuit brands, Britannia included all 16 of them in the 7level contest it ran, which blocked the air-waves for 13 weeks. The result: 1.60 crore
customers actually exchanged 4 empty packs each for the booklet on cricket that came
as the first reward
Pricing strategy.
Cost based pricing.
Demand based pricing.
Competition oriented pricing.
Product oriented pricing.
Affordability based pricing.
Promotional strategy.
"Eat Britannia, Go for World Cup" was the theme adopted in 1999 .People
bought the biscuit packs and searched for the lucky scratch for flying to England to
see world Cup Cricket match. The sales bounced 37% high on account of this
strategy. The scheme came alive again during the world Cup Match in 2002-2003 in
South Africa. "Lagan - the super hit movie" brought fame to Britannia Biscuits also
as 40000 buyers of Britannia Biscuit packs were invited to see and a small lucky
group to play the game with the movie Stars of Lagan. What a novel way to promote a
product - a perception in correct proportion indeed.
19
Financial strategies.
As Britannia is diversified business they are also in financial business named
Britannia finance & kotak Britannia so they get the good sourses of money. Some of
them lets come across
o To have long term capital they issue preference share shares mainly.
o BRITANNIA also do Self-financing to meet their capital needs.
o BRITANNIA has the sinking funds to meet their future uncertainities.
Human Resource strategy.
BRITANNIA were previously hiring only male candidates, but they start
hiring female HR managers.
They adopted HR Accounting for efficient recording of employee records.
Operational strategies.
After the great success of Scorpio BRITANNIA built their confedence in house
R&D.
Application of techniques like JQM, KAIZEN, TQM, TPM, JIT, ABC analysis
help to increase the standards of products through out the manufacturing process.
GENERAL ANALYSIS
1. SWOT ANALYSIS (Key To Business Strategy)
Strength
Weakness
investment
Opportunities
Threats
Increase in pollution
Lack of technology
govt.(taxes)
2. Competitive Position
The entries of new MNCs have not posed a direct there at to Britannia, as these MNCs have
positioned their brands in the premium/health segment. Britannia has maintained market
leadership with a 40% volume share and 48% value market share in the organized sector.
FMCG major HLL is expected to venture into the segment. Britannia has been aggressive in
new launches and marketing during the last 2 year anticipating the competition. It has also
recently acquired Kwality Biscuits, gaining a strong foothold in the southern market. In the
overall biscuit market, Britannia and Parle are two major players with 15% and10% market
shares respectively. In the organized biscuit market, Britannia has close to40% market share,
while Parle has around 30% share. Bakeman's has a market share of 10%, mainly with a
larger share of the cream biscuit segment. Smithkline Consumer has close to 8% market share
with its Horlicks and Boost brands. Other players like Nutriene (now acquired by Sara Lee),
Kwality etc have about 3-4% market shares each. Kwality Biscuits Pvt Ltd, a Bangalore
based company has been expanding its presence to other parts of the country.
21
CONCLUSION
After going thick on the thing, now time is to make a complete picture. While making a
product a SKU (Stock Keeping Unit) of the shop retailers think about the GMROI (Gross
Margin Return On Investment) and they promote the brand which provide them highest. They
expect return in the form of profit margin, company schemes, window display and references
of the shop. Among these, company schemes make the differences and are the highest source
of motivation after profit margin. Retailing demands a constant push from the company.
Marketer needs to use advertising and brand building strategies to address the discerning
buyers and retail push to in different buyers. The manufacturer should understand consumer
behavior because retailers can't help quality and price. It is only up to dealers said it is
demand they sell Britannia 42% agree that at retail shop it is brand popularity, which
determine the purchase of biscuit.
There is a greater need to understand the retailer behavior considering them as a team
working for the company may help them to be attached to the company. There should be
22
feeling of belonging to the company in inner of the retailers. Setting values club for retailers
so that they may exchange views with the company and help in understanding consumer
behavior.
BRITANNIA Industries has sure come a long way from being a company with a stodgy but
well-recognized brand name and an inconsistent financial performance in the mid1990s. After
a thorough overhaul of the operational structure, a revamp of its product portfolio and an
ambitious foray into new areas, such as dairy products and snack foods, the company has
managed to turn in robust financial performance over the past four years. BIL has also
confounded critics by showing above the industry average growth which has been mainly
attributed to its innovative offerings. BIL has consistently launched a new variant almost
every quarter. It has pruned its product line and gone to its core products after revitalizing
them through state of the art packaging and better visual appeal while at the same time
explored new markets such as the rural market. With a strong market share and a steady
stream of innovative product launches it is not idle boast to say that Britannia intends to make
every third Indian a Britannia customer by the year 2006.
BIBLIOGRAPHY
https://en.wikipedia.org/wiki/Britannia_Industries
https://www.scribd.com/doc/12937152/britannia-project-report
http://www.slideshare.net
http://britannia.co.in/
23
QUESTIONNERIS
1. HAVE YOU HEARD OF BRITANNIA COMPANY?
A. YES
B. NO
B. BAKERY PRODUCTS
C. BOTH PRODUCTS
SURROUNDINGS?
A. YES
B. NO
B. NO
7.
A. HIGH QUALITY
B. UNIQUE
C. UNRELIABLE
D. OVERPRICED
B. VERY WELL
C. NOT SO WELL
C. LOW QUALITY
B. ABOVE AVERAGE
C. BELOW AVERAGE
D. POOR
B. VERY LIKELY
C. SOMEWHAT LIKELY
11. IF OUR NEW PRODUCT WERE AVAILABLE TODAY, HOW LIKELY WOULD YOU
BE TO RECOMMEND IT TO OTHERS?
25
A. EXTREMELY LIKELY
B. VERY LIKELY
C. SOMEWHAT LIKELY
B. DAIRY PRODUCTS
D.I WILL NOT RECOMMEND
B. PRICE
D. TASTE
14. BRITANNIA COMPANY PRODUCES NEW PRODUCTS NOW AND THEN, ARE
THEY BETTER THAN THE OLD PRODUCTS?
A. YES
B. NO
B. NO
B. NO
B. TIGER BISCUITS
D. 50 50
B. DISAGREE
B. BAKERY PRODUCTS
B. NO
26