A STUDY ON VARIOUS STRATEGY ADOPTED BY

BRITANNIA INDUSTRIES TO EXPAND THEIR

MARKET

In partial fulfillment of the Summer Internship of the

Master of Business Administration

PREPARED BY

SUMESH LAL

(20182MBAO152)

IN

BRITANNIA INDUSTRIES LIMITED

School of Management
PRESIDENCY UNIVERSITY,
BENGALURU – 560 064
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 Executive Summary

Britannia is the industry which has 100 years experience in Indian bakery and biscuit field. And
they are the one of the market leader in this sector. Britannia always try to maintain their market
hold as well as try to expand their business to some other countries, for that they adopting
various strategies like distribution, promotional strategies. In this project, adding details
regarding various strategies of Britannia industries which them helps to build a constant place in
the Indian as well as global market. Another thing is how the Britannia involves in the FMCG
industry of our nation. Britannia placed top ten market leaders in terms of FMCG sector.
Britannia has its own strength and weakness, to identify these things SWOT Analysis also added
in this project. However Britannia has its own working condition and structure. To find out the
each factor which make force in the working condition of Britannia industries I did industrial
analysis of Britannia industries. By going through this project you get a clear cut idea about
Britannia industries and their working environment.

I successfully completed my internship in Britannia Industries, Kerala. It was a good experience

for me; internship starts from 12th July 2019 and ended on 2nd August 2019. During the internship
period our supervisor sent me to various super markets and QRS Shops for understanding
various products of Britannia and how they are displaying for sell. This task was very helpful for
me to understood how Britannia maintaining their distribution strategy and how they are
displaying products according to the sales volume. Good Day is one of the profits making
product of Britannia so this product they displayed as an eye level product. One of another thing
is Britannia make one product as key product for one month because of increasing the sale of
that particular product. There are two types of combo packets one is company directly make the
combo packets and another one is Britannia make a deal with shops and then make combo
packets in order to sell the stocks which are stored in their go downs. Britannia has a good
market brand in Indian market so it doesn’t need more promotion, customers come front to
purchase Britannia product without any push.

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 CHAPTER – 1
INTRODUCTION
FAST - MOVING CONSUMER GOODS INDUSTRY
Fast Moving Consumer Goods (FMCG) are commonly referred to as packaged consumer goods.
The most common in the list are bathroom soaps, detergents, shampoos, toothpaste, shaving
products, shoe polish, packaged food and household accessories and extends to certain electronic
goods. These products are intended for frequent daily consumption and have a high yield. A
significant part of each household's monthly budget is reserved for FMCG products. The amount
of cash spent on FMCG products in the economy is very large.
The number of products used by the customer is very big. Competition is very high in the FMCG
industry, leading in elevated margin stress. FMCG businesses retain a cautious network of
distribution. Companies spend a big part of their budget on keeping networks of distribution.
New entrants who want to introduce their products nationally need to spend enormous amounts
of cash in brand promotion. The entry of multinationals and cheaper imports was a latest
phenomenon in the industry. With the presence of local players in rural regions and state brands,
the market is also more pressurized.

FMCG are those products that have a fast shelf turnover at comparatively low price, and
purchasing requires little thought, time and financial investment. This is the FMCG Industry's
significant features. The Indian FMCG industry contributes significantly to the GDP of the
countryIt 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 represent 56% of total national demand for FMCG.

FMCG EVALUATION
 1950’s-80’s – Low Investment in the sector
 Low purchasing power
 Govt’s emphasis on small scale sector
 HLL and other company’s urbane focus
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  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 70’s
Post liberalization, Jyothi Laboratories, ‘Ghari’ Detergent and ‘Anchor’ toothpaste giving the
nation-wide brands a run for their money.

TOP TEN COMPANIES IN FMCG SECTOR

1. MSG All Trading
It has 151 products range from basic wheat flour, pulses, and basmati rice to premium cosmetic
and bakery products also. All these products offered highest standards of quality. Now day they
try to overtake Patanjali products which influenced the Indian market a lot. Head office of MSG
is situated in Sirsa, Punjab. It has a turnover of 21 crores Indian rupees.

2. Hindustan Unilever Limited

Hindustan Unilever Limited (HUL) is an Indian consumer goods company which is number in
India. Its products include food products, beverages, cleaning agents, personal care products and
water purifiers. Some of the HUL products are follows, Bru coffee, Kissan, Active Wheel
detergent, Close Up toothpaste, Fair and Lovely, Lakme and the most dominating pureit Water
Purifier. HUL have more than 35 brands and over 200 products.HUL have a turnover of 4 billion
Dollars.

3. Colgate Palmolive
This company is a worldwide Consumer Products Company which belongs to America and
works on the production and distribution of general household, health care, oral and personal
care products. It is now emerged into a huge and successful commercial business whose product
brands include Colgate toothpaste, Brite detergent, Gard shampoo, Protex, Palmolive and Tahiti

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soap. Company’s main head office situated in Park Avenue, New York and it has a 17 Billion
Dollars.

4. ITC Limited
ITC Limited is the Imperial Tobacco Company of India which was established in 1910. After
that in 1970 company’s name was changed into India Tobacco Company Limited. At last in 2001
it was changed into ITC Limited. Its popular brands are Bingo, Savlon, Aashirvaad aata,
Sunfeast, Yippie etc. It is the largest cigarette, cigar manufacturer in India. Apart from this, the
company have another product lines like stationery products, packaged foods, apparels and IT
sector. Corporate office of ITC Limited is located in West Bengal, Kolkata. Above 29000 people
working in ITC and it has a 7 Billion Dollars turnover.

5. Nestle
Nestle is a Swiss food and drink company which was formed in 1905. Since 2014, it is one
of the largest food companies in the current times. Nestle product range includes baby food,
medical food, coffee and tea, confectionery, dairy products, ice cream, pet foods, and snacks.
India has its offices in Kolkata, Mumbai, Chennai, and Delhi. Its 447 factories spread over in 189
countries. The most popular brands of the company are Kit Kat, Milky bar, Nescafe, Maggi,
Nestea, Boost. Its Corporate Office placed in Vevey, Switzerland and it has turnover of 89
billion dollars.

6. Parle Agro
Parle Agro is an Indian private limited company which was founded in 1929 inIndia and it is one
of the biggest Indian food and Beverage Company worldwide. Its operations spread over 50
countries. Frooti, Appy Fizz, LMN, Hippo and Bailey are the famous brands own by Parle. It’s
corporate placed in Mumbai, Maharashtra. And it has more than 2500 employees and 5000 crore
turnover as their income from operations.

7. Britannia Industries Limited

Britannia Industries Limited is India’s largest food corporation which has won heart of million
people with their Tiger brands biscuits, breads and dairy products in more than 60 countries
including India. The company was established in 1892, with a capital investment of 265 Indian
rupees. The most tag line of the company is “Eat Healthy, Think Better”. Because of the quality

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products the company won the The Golden Peacock National Quality Award and the
Ramakrishna Bajaj National Award. Above 2000 people work in Britannia for providing better
service to customers. And its head office placed in Kolkata, West Bengal.

8. Marico Limited
Marico operates in the wellness industry with its banging presence in 25 countries throughout the
world. It starts operation in the year 1987. In India, their factories spread over 8 cities named
Pondicherry, Dehradun, Baddi and Paonts Sahib. Marico deals with products like hair care, skin
care, edible oils, health foods, male grooming, and fabric care. Parachute is the flagship brand of
Marico. Saffola, Hair & Care, Nihar, Nihar Naturals, Livon, Set Wet and Medlker. It has
turnover of 61 billion Dollar and more than 1000 employees, its head office situated in Bandra,
Maharashtra.

9. Procter and Gamble (P&G)

The Procter and Gamble Company is a national consumer goods corporation incorporated in
America and its operations spread over more than 25 countries including India. It has an
admiring and popular history in the Indian FMCG industry. Some of the successful brands
include AmbiPur air fresheners Duracell, Olay, Pampers, Vicks, Tide and many more products.
More than 125000 employees work in P&G worldwide and it has a turnover of 83 billion
Dollars.

10. The Godrej Group

The Godrej Group is an Indian conglomerate and its headquarters are in Mumbai, Maharashtra. It
operates in sectors such as agro-based and service-based sectors, real estate, consumer products,
appliances, furniture, security and agriculture products. It has 120 years experience in this
industry. Godrej Interio (furniture), Good night, Cinthol, Hit, Godrej Air, Soft and Gentle,
Cuticura and Ezee. It also has market in United Kingdom, Africa and Indonesia by
manufacturing deodorants and hand sanitizers. And it has a turnover of 4 billion dollar and more
than 25000 working in this company.

Micro and Macro Environment

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Every sector has its own environment and the activities of that specific sector are decided by a
very factor. FMCG has its own Micro Environment and Macro Environment. Micro-
environmental variables are variables that directly affect your company activities and your
achievement. Companies should carry out a complete assessment of their micro setting before
deciding on corporate strategy. Macro environmental variables are variables that have no direct
effect on their sector, but changes in the macro environment that influence the activities and
operations of the sector in question.

Micro Environment of FMCG Sector

The Micro environment is made up of factors that are close to the firm and it on day to day basis,
usually these factors interact with the firm. FMCG Sector has its own micro environment, it
include factors like customers, banks, trade unions, competitors, suppliers, shareholders and
media.

Suppliers

Employees
Customers

FMCG SECTOR

Shareholders Competitors

Media

 Customers

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All companies need clients; clients should be the focus. The marketing plan of the company
should aim at attracting and retaining clients through products that meet their requirements and
require outstanding customer service. FMCG Sector focuses a big amount of clients on buying
their products to attract clients with their promotional strategies, enhance product quality and set
a fair price for the product.

 Employees
It is vital to employ employees with appropriate abilities and experience. This method begins at
the recruitment level and continuously with continuing training and promotion possibilities
throughout an employee's jobs. To gain a competitive advantage, training and growth play an
significant role. Employees should attempt using abilities and expertise in the FMCG industry to
attract clients. If the works fail in their work, bad customer service and eventually sales affect the
entire sector.

 Suppliers
Suppliers provide essential materials to produce the FMC Goods. A supplier’s behavior will
directly impact the business and its profit. If the suppliers failed to provide good quality raw
material then the FMCG Sector unable to provide better quality products to market. And another
importance of suppliers in FMCG Sector is price fixation of products, price of products mainly
depends on its raw material cost if the raw material cost is high then it also make impact in the
price.

 Shareholders
Investment is require to grow of every organizations so may decide to raise money by floating on
the stock market that is move from private to public ownership. The introduction of public
shareholders brings new pressures as public shareholders want a return from the investment they
made in the industry. The pressure from shareholders to increase profit will affect organizational
strategy. Relationship with shareholders needs to be managed carefully as rapid short term
increase in profit could affect the long term success of the business.

 Media

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Media is a key factor in FMC Goods selling. For each organisation, positive media attention is
required. Most FMCG products are promoted by media advertising because FMCG clients are
very big in number so media is the only way to communicate with clients. Media should give
positive attention to products otherwise it will affect the operations of the organization. So we
can said that media has a direct impact in the market.

 Competitors
Competitor implies manufacturing and distributing on the market the same sort of products. But
differentiation is the only way to overcome competition in the marketing field. Each FMCG
company tries to deliver advantages that are better than competitors give. Every FMCG company
is trying to maintain USP (Unique Selling Point) for that. Analysis and tracking of competitors is
essential if an organisation is to enhance its market position. If a company is unaware of the
scheme of its competitor, competitors will discover it hard to withstand.

Macro Environment of FMCG Sector

Recently, Indian customer's lifestyle and culture has changed dramatically. Every year, the
population in India is growing and it will directly affect the FMCG sector and its organization.
While India's population is rising year after year, in 2017 the rate of population growth is 1.19
percent. The FMCG products ' supply and demand will be impacted by population shift. Another
significant factor, Indian customer lifestyle shift and social behavior will have an impact on the
Indian sector. If organizations fail to deliver better products in line with evolving lifestyles and
behaviors, then organizations will find it hard to survive on the market.

 Economic
The country's economic situation plays an significant part in the industry of the FMCG. Nearly
every sector in the globe was impacted by the current worldwide financial slowdown situation.
This financial situation leads to higher unemployment and low energy to spend on consumers.
Consumers do not choose to purchase costly products or services in this situation. So this
financial journey will have to be reviewed by FMCG Organization and react accordingly. They
will react according to the financial situation, consumer behavior and stakeholder behavior to the
Organization's achievement. An effective organization needs to be conscious of the evolving

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financial situation, the conduct of consumers and stakeholders, and create strategies according to
this situation.

 Political
Political variables will have a greater impact on the organization of the FMCG and it is the
responsibility of the organizations to do so. And it is essential for the organization to comply
with the non-conformance introduced by laws that can lead to the organization's consequences.
Small-scale sectors are subject to tax exemptions in sales and excise duty. It will help them to
invest more and it will increase the new entrants in this particular industry. And infrastructure
facilities such as highway etc are improving the network of distribution not only in urban regions
but also in rural regions.

Technological
Improving technology increases manufacturing by enhancing product quality and service
rendered to clients. With technology development, expenses will be decreased and the rate of
data transactions improved. Technology plays an enormous role in the FMCG industry by
creating fresh packaging, improving food products ' efficiency and longer life. Improved
communication technology and social media network allows the organization through enhanced
marketing methods to enhance communication and promotion to clients.

International trends
In the FMCG products worldwide, the financial situation had a huge impact. Emerging
economies such as India, China, and Brazil, however, are mainly unaffected and manage to do
well to rapidly recover. And the global market facing clients in the economic crisis became more
cautious in search of unique deals, cheaper products and discounts. Emerging economies like
India and Brazil are looking at the development of hypermarkets to help these nations grow
FMCG economies.

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 CHAPTER – 2
PROFILE OF THE COMPANY

INTRODUCTION
Britannia Industries is one of India's leading food businesses with a 100-year heritage and more
than Rs. 9000 Cr annual sales. Britannia is one of India's most trusted food products and
manufactures favorite Indian products such as Good Day, Tiger, Nutri Choice, Milk Bikis and
Marie Gold that are household names in India. Britannia’s product portfolio includes Biscuits,
Bread, Cakes, Rusk, and Dairy products including Cheese, Beverages, Milk and Yoghurt.
Britannia is a brand which many generations of Indians have grown up with and our brands are
cherished and loved in India and the world over. Britannia products are available across the
country in close to 5 million retail outlets and reach over 50% of Indian homes.
The company’s Dairy business contributes close to 5 per cent of revenue and Britannia dairy
products directly reach 100,000 outlets.
Britannia Bread is the largest brand in the organized bread market. And it has an annual turnover
of over 1 lac tons in volume and Rs.450 crores in value. The business operates with 13 factories
and 4 franchisees selling close to 1 mn loaves daily across more than 100 cities and towns of
India.
Basically Britannia industries is the subsidiary brand Wadia Group. Wadia Group is the reputed
business group they are interested in lot of business like plantation, food, textiles etc.

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Board of Directors
Chairman : Nusli N Wadia
Managing Director : Varun Berry

Vision :
To dominate the food and beverage market in India with a distinctive range of “Tasty Yet
Healthy” Britannia brands.

Mission :
To dominate the food and beverage market in India through a profitable range of “Tasty Yet
Healthy” products by making every Indian a Britannia consumer.

Short-term Objective :
 To improve share holder’s value.
 To improve internal processes and controls.

Long-term Objective :
 To be the lowest-cost producer in the market.
 To become largest volume player in the bakery industry.

Income and profit details

Basically Britannia industries is an Indian company incorporated in India itself but now a day’s
elaborating its operations to so many other countries like USA, UAE, Qatar, Bahrain, Ghana,
Saudi Arabia ,Kuwait , Singapore, Oman ,Seychelles. Britannia has production units in UAE and
Oman. By elaborating the market to world widely, company tries to make its presence all over
the world. Britannia is a public limited company and listed its shares in the stock exchange. Past
five years they are running with a huge profit margin in the food processing sector. In stock

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exchange market Britannia’s shares have a respect demand because of its profit making capacity.
Britannia industries past five years income and profits are mentioned below table.

Year Mar'19 Mar'18 Mar'17 Mar'16 Mar'15

Total Income
10672.97 9459.99 8559.15 7851.53 7263.52
(Cr.)
Profit(Cr.) 1122.2 947.89 843.69 763.31 622.41

This table shows that since March 2015 Britannia earn profit at an increasing level. Every year
both income and profit increasing, for that they are using various strategies. These are the
important details regarding Britannia’s profit and Income. According to the data 95% of the total
profit comes from bakery products and 5% comes from Dairy products itself.

BIL (BRITANNIA INDUSTRIES LTD.)

Bakery Products ( 95%) Dairy Products(5%)

Product Mix of Britannia

Britannia industry has a big product line which includes products like Biscuits, Breads, Dairy,
Cakes, Rusk, Crème Wafers and Croissant. In this Dairy products are produced as a separate
entity called Britannia Dairy, all other comes under the Britannia Industry. In this each of the
product line Britannia introduce new products and maintain old products to meet the market
demand and competition. Biscuits line include lot of sub division like Good Day, Crackers,
Nutrichoice, Marie Gold, Tiger, Milk Bikis, Jim Jam Treat, Bourbon, Little Hearts, Pure Magic,
Nice Time. Under this it can again classified based on the flavors and other features. For
example Good Day has nine varieties flavors and it again classified based on the quantity and
pricing. Like Good Day each products have its on classification based on the flavors and pricing.

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Good Day butter is the most demanded product of Britannia in current markets. Tiger biscuits
also have the same demand which is the identical product of Britannia. Now Britannia
celebrating their 100 years of experienced by launching 50 more products in the market by the
intention of making a sign in the global market. Croissant is the most innovative product of
Britannia industries. Below table shows the product categories of Britannia.

Biscuits Breads Dairy Cakes

Good Day Whole Wheat Breads Cheese Gobbles
Crackers White Sandwich Milk Based Beverages Tiffin Fun
Nutrichoice Breads Freash Dairy Nut & Raisin
Marie Gold Bread Assortment Everyday Goodness Muffills
Tiger Daily Breads   Layerz
Milk Bikis     Rollyo
Jim Jam Treat     Fudgeit
Bourbon      
Little Hearts      
Pure Magic      
Nice Time      

Rusk Crème Wafers Croissant

Toastea Treat Crème Wafer Treat Croissant

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 CHAPTER -3
STATEMENT OF PROBLEM

STATEMENT OF PROBLEM
Britannia Industries is very famous in the area of food processing they have great market share in
the Indian as well as global market. Britannia facing competition from other leading food
processing companies. For overcoming this tight competition Britannia adopts lot of marketing
strategies which will helps to defeat other brands. By conducting this study, aimed to identify
those strategies which are adopted by the Britannia and how it will helps them to making profit
in this current scenario.

OBJECTIVES

 To identify the marketing strategies adopted by the Britannia which make them unique.
 To conduct industrial analysis
 To conduct SWOT Analysis of Britannia

METHODOLOGY

In order to find out the marketing strategies and SWOT Analysis of Britannia Industries. I have
used various methods to collect and present the data. Mainly I used two types of data for doing
this work.

 Primary data
 Secondary data

Primary Data: This report has been prepared by using various primary data collection methods.

 Direct Interviewing: I have collected data from sales executives and marketing
manager by direct conversation with them. By applying this method I able to get clear
cut idea about strategies and SWOT area of Britannia industries.

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  Observation method: In this method, I visited some Britannia outlets and find out
various strategies adopted by the Britannia industries in the field of displaying
products.

Secondary Data: Secondary data are processed data which already exists in books, internet or
somewhere. I used some of the secondary data in this project;

 Official website of Britannia Industries.

 Some published research report, books, journal and articles.
 Stock Exchange Market website etc.

SAMPLES

In this project I gathered information and data from respective persons who working in Britannia
as marketing executives and sales manager. Samples are only from Kerala. Samples are only
collecting through direct conversation with them.

SIGNIFICANCE OF THE STUDY

Nowadays food processing sector contribute a big role in the GDP of our nation. Lot of new
companies start their operations this sector, so it may leads to large competition among the
companies. Britannia also comes under food processing sector. So Britannia is facing big
competition from all of these food processing companies but at the same time they running with
profit. By doing this study we should get an idea about how Britannia maintain profit margin
properly. And also enable to find out what are the unique techniques using by Britannia to attract
customers. These are important significance of this study.

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 CHAPTER – 4

Results and Discussions

Distribution Strategy of Britannia

Let discuss about the distribution strategy of Britannia. It has a strong distribution pattern,
according to the distribution feature it has been classified in to two either by wholesaler or by
agent. Wholesalers purchasing products directly from production units, distributed to retailers
and kirana shops. On the other hand agents made an important role in the distribution strategy.
By applying these two distribution strategies Britannia enable to get a place in the urban as well
as rural areas of entire nation.

Britannia Industries

Wholesalers Agents

Point of sale ie; Kirana Shops Big retail units like

Retailers Food bazaar and for
exports

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Marketing Segmentation, Targeting and Positioning of Britannia.

Segmentation–Britannia thought consumer-conscious of the highest quality of goods. So they

meet the consumer's need. And primarily segmentation based on demographic and
psychographic segmentation takes into account the distinct age groups, social class, level of
education, level of revenue, marital status, and employment.

Targeting–Britannia has concentrated on creating a strong customer relationship as they are

playing the most significant part in product sales. Not only did they keep up with the
expectations of the ancient customer, but they also tried to create fresh clients as their retention
plays a significant part in their company development.

Positioning – By focusing on new product manufacturing, Britannia doesn't forget to

remember their competitor's way of competing against them, so they pay even more attention to
each and every step they take towards achievement, they want to be ahead of them and succeed.
Britannia has established itself as a brand and has taken care of customers and served healthy and
delicious processed products. It utilizes a strategy of placement based on value.

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Britannia's competitive advantage

Strong product portfolio: with a big presence in each sub-branded product category, Britannia
helped capture the market generating Rs. 10672.9 Crs in March 19, an 18 percent jump from the
previous year. Britannia Industries has a business operation of more than 300 SKU.

Parent Company, Wadia Group: Britannia Industries is component of the powerful parent
corporation Wadia Group that has a presence in a wide range of businesses, whether they are
textiles, aviation, real estate, plantations, food, chemicals, electronics and light engineering, or
healthcare. Bombay Dyeing, GO Air, Bombay Burmah etc. are some of the well-known firms
group have.

Premium Products: Although the company has sub-brands in its product portfolio that have
recently entered the premium bakery & dairy products section to compete on the market and
have a variety of goods for all company segments. Some of their segment products offer
delicious innovative products to customers such as Good Day, Wonderfulls, Britannia Choco &
Vanilla flavor treatment, etc.

Marketing Mix of Britannia

Britannia is one of the Indian biscuit and bakery industry leaders. So they maintain a distinctive
marketing mix that allows them to maintain the location safer in both the Indian and international
markets. Britannia's established marketing mix makes profit every year.

Product in the Marketing Mix

Britannia provides a broad selection of food products. Bakeries were set up at multiple locations
around India in 1965 to ensure a steady supply of fresh bread, and the firm started to distribute
biscuits from other smaller businesses. They began producing and supplying their own biscuits
after that. Bread, biscuits, cakes, rusk and dairy products are their primary products. Bread,
biscuits, cakes, rusk and dairy products are their primary products. Over the years, they have
continued to publish products. Fruit bread, for instance, or the dairy product. However, 95% of
their income comes from the manufacture of biscuits. Their total factory capacity is

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approximately 600,000 tonnes per year. The Tiger brand was the company's share of total sales
of $150 million in 2006. Britannia's current annual income is around Rs 22 billion, nine-tenths of
which comes from biscuit sales.

Popular products of Britannia

 Britannia Tiger
 Britannia good day
 Britannia nice time
 Britannia treat
 Britannia 50 50
 Little hearts
 Bourbon
 Britannia Marie
 Britannia bread and bakery products
 Veg cakes
 Britannia dairy products like Cheese, Butter, Ghee, etc
 Britannia nutri choice range of products

Places in the Marketing Mix of Britannia

Britannia has been one of India's leading market share for many years. It also found some
overseas deals, such as working with the successful UK biscuit business Peek, Frean and
Company, and also finished takeovers such as that of Parry's in 1975, which allowed the
company to distribute its products to more individuals. The firm was constructed up and has been
known as the' Biscuit King' for many years. Britannia presently has a market share estimated at
39 percent.

The firm also invested in its dairy products and announced a joint venture with the New Zealand
Dairy in 2001, enabling it, among other things, to generate cheese and butter. The business
distributes its products over and over India's length and breadth. Britannia agreed to enter into a
joint venture with the Khimji Ramdas Group in 2007 and obtained a positive 75% interest in the

20
Dubai-based Strategic Foods International Company. The firm chosen from the Brands Trust
Report as one of India's 100 most trusted businesses.

Britannia follows the FMCG distribution channel in which it appoints distributors at selected
places for distribution. Then these retailers are liable for dealers and showrooms at retail outlets.
The business handles modern trade channels such as Big bazaar and D mart as well as others
directly. The distribution in urban regions is great as Britannia is almost everywhere present.
However, the company's rural penetration is still less due to the rural distribution difficulties.

• FMCG distribution model

• Bulk breakdown is implemented

• Strong nation distribution

• Rural distribution needs to be tightened

Promotion in the Marketing Mix of Britannia

The product itself is the strongest side to promote Britannia products. The goods are delicious
and individuals like it. So the item creates a pull directly. But no business can exist without
promotions and advertising in the present situation. The same is also true for Britannia. Because
of the brand equity of Britannia goods and the existence of the brand on the Indian market for
nearly a decade, advertising spending for Britannia is regulated and is now accessible on the
worldwide market as well.

The business utilizes most common advertising techniques, including billboards, magazines,
television advertising and advertising point of purchase. Britannia recruited Salman Khan in
November 2012 to endorse its Tiger product variety. Due to its own style and character, the
famous Bollywood actor encourages the key values of the Tiger brand spectrum. Britannia has
elevated advertising expenditure on products such as Good Day and Bourbon that are almost
stars of the Britannia brand. However, the investment in marketing Dairy products is small
because the distribution of the products requires a lot of expenditures. Because of its steady

21
existence in the last few centuries, Britannia has enough brand and clout on the market that its
product gets a natural pull from the market.

• Relies more on pull than push

• Has incredible brand equity owing to its market presence over the past several decades

• Focuses more on encouraging biscuits than any other product

Price in the Marketing Mix of Britannia

Competitive pricing is Britannia's one and only pricing strategy. Parle is one of Britannia's
biggest rivals and in that ; for centuries, Parle G has stayed unbeatable. Come to the dairy, Amul
is the biggest competitor for products based on milk, cheese and other milk goods. Local
competition from local brands, Monginis and other vegetarian cake manufacturers who have
their own product line will be found in bakery products. But Britannia takes a competitive
pricing strategy at the same moment. Britannia products are also great in terms of quality and
cost. Together with distribution, the pricing strategy was so powerful that why individuals
purchase these products even at railway stations rather than purchasing local snacks.

Market Development Strategy of Britannia

Market development is another strategy followed by the Britannia every year they expanding
their market at least one country. This is the most focusing area of Britannia and they fixed a
strategy that said that every year Britannia should find a new market for expanding the sale of
current product. Now they are starting production units in countries like UAE and Oman. By
adopting market development Britannia get more marketing space globally that’s the main
intention behind this. When Britannia only concentrate in India then they only get value in India
itself. That’s why Britannia try to expand their operation to many countries it help them to
expand their operation and it also help to improve the branding of Britannia. When Britannia got
a global brand value then they can reduce the promotion cost because of the brand value,
customers will pull to purchase Britannia product automatically. Britannia’s current overseas as
follows.

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Exports

 USA
 UAE
 Qatar
 Bahrain
 Ghana
 Saudi Arabia
 Kuwait
 Singapore
 Oman
 Seychelles

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Porter’s Five Force Analysis of Britannia

To search for the earnings and opportunities of the business, it is necessary to consider its rivals.
Therefore items that need to be considered in order to make a business prosper and thrive,
Michael Porter set up five forces that need to be considered in a company's strategic plan. This
involves;

1) Competitive Rivalry

2) Bargaining Power of Suppliers

3) Bargaining Power of Customers

4) Threats of New Entrants

5) Threats of Substitutes

As it can be seen that the competition of rivals is at the core as it is the most significant force
influencing a company's business and market share in its respective sector. Whereas the other
four forces reside around rivalry intensity and can be regarded as contributing factors.

The BIL can also be evaluated based on the porter's five forces mentioned below.

Competitor Rivalry

BIL owns about 38 percent of the market share. In addition, Britannia's growth rate is 27%.
Britannia has many rivals, including Parle and ITC. Britannia's key earnings are from the biscuits
they manufactured, and their biscuit products are also known to Parle and ITC (Dr. V. Suresh
Babu, 2016). The dairy products are also produced by Britannia. BIL's rivals are Amul and
Nestle in terms of dairy products. Amul is the leader in the dairy industry. In addition, the baking

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industry has a strong competitive proportion. The Britannia rivalry industry is therefore very big.

Threats of New Entrants

When we're talking about the dairy industry and the disorganized baking sector, it's simple for
fresh comers to enter the market. But when it comes to the larger-scale dairy industry and a well-
organized baking sector, on the other hand of the image, the fresh entrant needs a huge quantity
of capital to begin the company. In addition, the fresh comer has to face an intense competitive
climate in order to gain a position on the market. It must also take action to possess the channels
of distribution. The regulation that the state provides as far as food is concerned seems to be
quite unattractive. The baking industry is anticipated to generate huge profits while taking into
account the recent trends. This factor could pave a way for fresh entrants to be attracted. Thus we
conclude through the debate that the risk to the fresh entrants is moderate.

Threats of Substitutes

Threats of substitutes are the threats and risks that are expected to occur from the companies that
are producing similar products and goods and have more attractive services to offer to the
customers. Hence there exists a chance of the audience to turn their faces to those firms.
Britannia's replacements are snacks, crisps, cereals, fruits and other fast food products that can be
used as a substitute for the company's biscuits. Dairy products have a higher proportion of threats
than biscuits because of the ingredients used in them, as the majority of the crowd in any portion
of the globe is aware of their diet and weight. Therefore, the proportion of hazards that may arise
from Britannia's replacements is moderate.

Powers of Buyers/Customers

This force focuses specifically on the customer's capacity to negotiate and drop rates. The
magnitude of clients, audiences or buyers determines how essential the customer's presence is for
the organisation and how much the company's price or earnings will be reduced when it switches
from one company to the other. The lower and stronger amount of customers implies the greater
their impact on the company's success rate. (Dr. V. Suresh Babu, 2016) Talking about buyers /

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customers of Britannia products and goods may include retailers or consumers. The price has an
enormous effect on both the dairy and bakery industries. Increasing the product's meager cost
may therefore tend to move a client from one brand to the other. The purchaser's authority is
therefore regarded very high in such conditions.

Power of Suppliers

This specific force addresses the question of how readily suppliers ' supply prices can affect the
product's rising rates. It is mainly affected by the number of factors including the number of
suppliers for a product, the uniqueness of the supplies and the cost of switching from one
supplier to the next. If the business has fewer vendors, they will have a greater effect. The major
supplies of bakery products from Britannia are wheat and sugar. The other agricultural products
are also included. On the other side, the supplies are milk considering the dairy products (Sarkar,
2016). Negotiations with these providers are hard as their costs are considerably affected by
input manufacturing. The prices are also rising to a high point due to the increased demand for
such products. There are also other vendors that are used for packaging products in addition to
them.

So we conclude that there are many well-known brands on the market that pose a mild amount
of risk from fresh entries and replacements. The suppliers ' strength is mild in comparison to the
powerful client power. So the rivalry is regarded high in this way, as it is the core of all these
forces

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Strength Weakness

 Complete one of our basic air, water,  Increases food item costs
food, shelter requirements  Reduces dietary importance
 Widespread acceptance throughout  High investment is required in
generations industry and technology
 Easily available in different forms of  Regular use of processed foods can
product. lead to health changes
 Provide excellent immediate hunger  Market capitalization is one third of
remedy in the form of ready-made meals nestle capitalization
 Preserves and makes accessible non-
seasonal food throughout the year

 Over a century of history

 Second in the capitalisation of the

industry
Opportunities Threats

 Increasing India's economy  Many businesses are focused on

 Create job opportunities results

 Goods of good quality  Increase in the population of our

country
 To compete with overseas firms
 Provide bad product quality at times
 Improve standard of living
for greater gain
 Deliver products at a cheaper price to the
 Technology shortage
country
 Unable to make efficient use of all
 Foreign reserve inflow and govt funds
resources
(taxes)
 Increased raw material costs

SWOT Analysis of Britannia

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Some of the strategy techniques of Britannia are follows;  

1. Product quality and satisfaction of the client:

General clients are essentially conscious of product quality rather than product cost. We
discovered in our study that clients are basically looking for the quality first. If the quality of the
product is great, clients will only look for the cost. But if the quality isn't good, they don't even
look at the product's price. Britannia has always held much greater significance over the quality
of the product. That's why they're among today's effective brand.

2. Customer  retention relationship:

It is very essential for each organisation to maintain a healthy relationship with the client. The
sales margin depends entirely on the customer relationship. Retention of customers is also an
significant element of increasing company. It implies keeping the ancient client and trying to
create a fresh client. The customer relationship management of Britannia is powerful, which is
one of the main reasons for high-margin product sales.

3. Focus on the activities and strategy of the competitor

Each organisation has to take care of its competitors step because they can reduce the
organization's increasing sales process. Continuous monitoring of the strategies of the competitor
helps Britannia a lot.

4. A increasing focus on worldwide thinking and planning for

local marketing:

By pursuing the market beyond their boundaries, companies are growing revenues. When
entering other nations, they have to follow that country's tradition and plan for the local market
which sort of item has more demand and how it can operate on the market. For Britannia, their

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product varies depending on distinct places and the financial status of the individuals is very
helpful for the business.

KEY LEARNINGS FROM INTERNSHIP

I successfully completed my internship in Britannia Industries, Kerala. It was a good experience
for me; internship starts from 12th July 2019 and ended on 2nd August 2019. During the internship
period our supervisor sent me to various super markets and QRS Shops for understanding
various products of Britannia and how they are displaying for sell. This task was very helpful for
me to understood how Britannia maintaining their distribution strategy and how they are
displaying products according to the sales volume. Good Day is one of the brand which making
profit at an increasing level. So this product they displayed as an eye level product. One of
another thing is Britannia make one product as key product for one month because of increasing
the sale of that particular product.

After one week, they were gave the exact task. We were placed in one super market
named QRS Shop. There we did the promotion activities of Britannia and up selling of combo
packets. This task continued till the end of the day. Every day, we were spending 5 hours in that
shop and did the promotion and up selling. This task helps me to understand how we can
convenience customers to purchase one product. To increase the sales volume they made combo
packets at an offer price. There are two types of combo packets one is company directly make
the combo packets and another one is Britannia make a deal with shops and then make combo
packets in order to sell the stocks which are stored in their go downs. Britannia has a good
market brand in Indian market so it doesn’t need more promotion, customers come front to
purchase Britannia product without any push. This activity improves my communication skill
and I understood how we can deal with customers. At the we were communicating with our
supervisor he explained the strength and weakness of Britannia and also he gave an idea about all
the marketing strategy which are followed by Britannia. These are the important leanings from
this internship program.

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 CHAPTER – 5

Summary and Conclusion

Summary of the project

By doing this project able to understand the major strategies, which applied by Britannia
Industries for increasing sales. When comes to the marketing mix, Britannia always keep equal
importance to all factors of marketing mix that is product, place, price and promotion. Britannia
has a strong product line which include product like Good Day. Bourbon, Tiger etc. These
products are star position in the market. Every year Britannia try to expand their operation to at
least one country. Another important thing about Britannia is SWOT Analysis, by done with the
SWOT Analysis, able to get an idea about company’s strength and weakness, these two are
basically based on the internal factor of Britannia. Then come to the external part that is from
surrounding environment we should get the idea about opportunity and treats of Britannia. Brand
name is the one of the important strength of Britannia. Comes to the distribution strategy,
Britannia following two ways of distribution strategy, first one is through wholesalers and
second one is via agent. Britannia existing in Indian market from last 100 years and they have
good market share in the market every day they try to push their product in the market by
providing various offers like combo packets and celebration offers. These are the important
finding by doing this project.

LIMITATIONS

 I only got two months time for working in Britannia.

 Internship only based on one or two super markets.
 Activities limited to promotion and up selling
 Britannia officials not ready to share all the strategies they followed

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CONCLUSION
By conducting this study I got clear cut idea about the Britannia Products and how they are
maintain their place in this segmentation. Britannia’s strategies always related to the customer
based, they try to understand market condition and developing new products and promoted those
products by a significant way. Main advantage of Britannia is brand name, they have big brand
name in FMCG Sector. They increase sales volume by introducing new product line. Moreover
that Britannia is the leading company in FMCG Sector with decent market share.

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REFERANCE

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