besa final
TRANSCRIPT
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Britannia biscuits
Presented by:
Group 5
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Introduction on Biscuit Industry
Biscuits market in India : Rs 9,000-crore (Rs 90-billion)
India is known to be the second largestmanufacturer of biscuits, the first being USA
Bread and biscuits are the major part of thebakery industry and covers around 80 percent of
the total bakery products in India
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Annual growth rate of biscuits industry2003-04 15
2004-05 14
2005-06 14
2006-07 13
2007-08 15
2008-09 17
Yr. 2008.exemption from Central Excise Duty
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Biscuit Industry profile
Organised : Unorganised :: 40 : 60
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Introduction on BiscuitIndustryRural-urban penetration of Biscuit :
Urban Market : 75% to 85%
Rural Market : 50% to 65%
Per capita consumption of Biscuits :
INDIA 1.8 kg,
South East Asian Countries 2.5 kg to
5.5 kg
USA 7.5 kg
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Major playersof biscuit
industry in india
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CompanyOverview Indias second largest food company Sales close to Rs. 20 billion
Consistent annual growth rate of 15-20%
Sources products from more than 50 factoriesspread across the country
Key product lines include:
Biscuits
Bread, Cakes and Rusk
Product range caters to the whole spectrum frommass market to the premium segment
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Milestones
1892 Started with an investment of Rs. 295/- in Kolkatta
1918
Britannia Biscuit Company Ltd. (BBCo) was launched
1979
BBCo was rechristened as Britannia Industries Ltd.
1993
Wadia group aquired a stake in ABIL, UK & became anequal partner in BIL with Groupe Danone
1997 Corporate re-branding exercise gave rise to philosophy of
Eat Healthy, Think Better
1999
Britannia Khao World Cup Jao A major success!
Profit up by 37%
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Milestones continued..
1892 Started with an investment of Rs. 295/- in Kolkatta
1918
Britannia Biscuit Company Ltd. (BBCo) was launched
1979
BBCo was rechristened as Britannia Industries Ltd.
1993
Wadia group aquired a stake in ABIL, UK & became anequal partner in BIL with Groupe Danone
1997 Corporate re-branding exercise gave rise to philosophy of
Eat Healthy, Think Better
1999
Britannia Khao World Cup Jao A major success!
Profit up by 37%
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Milestones 2001
Britannia becomes one of Indias biggest brands
Britannia Lagaan Match Most successful promotionalactivity of the year
2002
Rated one amongst the top 200 small companies of theworld by Forbes Global
Indias 2nd most trusted brand Economic times
2004
Britannia accorded the status of being a Superbrand
Volume crosses 300,000 tonnes
2005
Company goes in for major expansion
Uttranchal plant commissioned ahead of schedule
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vision
To dominate the food and beverage
market in India with a distinctive range
of Tasty Yet Healthy Britannia
brands
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mission
To dominate the food and beverage
market in India through a profitable
range of Tasty Yet Healthy products
by making every Indian a Britanniaconsumer
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BCG Matrix of Britannia biscuits
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Strategies adopted
Diversification
Distribution
Competition
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Diversification
Diversification- to be the market leader in
food industry.
CHEESE
BAKERY PRODUCTS
DAIRY PRODUCTS
HEALTH BEVERAGES
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Health products
Actimind- a milk drink for children
Removed 10,000 trans fats
Fortified brands with micro-nutrients forexample : tiger with iron , nutrichoice with
5 grains like oat, ragi and honey, crackers
with ajawain and jeera.
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Power Brand Strategy
Brands like tiger have been diverified to
include iron , banana, and cream
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Fortified Biscuit Programme
Initially started for WHO.
Provide nutrition for kids.
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Distribution
Earlier they were using:
Factory > Depot > Wholesalers > RetailersCurrently using:
Factory > Wholesalers > Reatailers
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Competitor( based on price)
IMPORTANT BRANDS PITCHED AGAINST EACH OTHER Category Britannia Parle Leader Glucose Tiger Parle -G Parle-G
Marie Marie Gold Marie lite Marie Gold
Salty snacks 50-50 Krack Jack Krack Jack
Choco chips Good day Hide n seek Good day Milk Milk bikis Maha sakhti Milk bikis
Bourbon Bourbon Hide n Seek Bourbon
Nice Nice Nice Britannia Nice
Multi grain Nutri choice ----- Nutrichoice
Cream Cream Treat Kreme Cream treats Cookie Good day 20-20 Good day
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Political
Factors
Food laws implemented at State & Central levelStringent TAX lawsMany other Govt. Regulations
GDP increasing at 8-9%Increase in the disposable Income
Rupee Appreciation
70% population below 35 yearsGood awareness among the people
Process Innovation, Product InnovationInnovative techniques JIT, RFID
EconomicFactors
SocialFactors
TechnologyFactors
PEST Analysis
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e
Fig. Four Product Levelsfor Good Day
Access to distribution difficult
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Access to distribution difficultEconomies of Scale difficult
Product DifferentiationCapital RequirementsCost disadvantages
Govt. Policies
Many SuppliersFragmentedenvironmentSwitchingCostsNot animportantcustomerThreat of
Forwardintegration
Less large volumbuyersSwitching CostsNo individualbuyer can impactLess threat ofbackward
Integration
Fast foodHome made snacks
Changing consumptionpatterns
Porters 5 forces
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Strengths
Brand NameMarket Leadership
Product InnovationMany Successful brandsDistribution NetworkDanonePromotional ActivitiesCelebrity Endorsements
Weaknesses
Market leaders but still couldntprevent competitors to flourish
Britannias brand perception as biscuitsCompetition-couldnt adopt any strategyto defend its positionMay not centre on a single ProductNot able to increase its sales in anexpected manner
Opportunities
Per capita consumption in Ind2.55 Kg,develped countries-12Kg, Enormous
ScopeIncreasing Disposable IncomeOpportunities to increase exportsturnoverDiversification
Threats
Younger generation attracted to fast foodloosing importance as a tea time snackIncreasing cost of raw materials like sugar,
wheat, milkDecreasing margins in the glucose marketIntense competitionPrice sensitivity, difficult to pass the priceincrease to customers, particularly- glucoseCompetition intensifying with national ®ional players
SWOT
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Britannia
Action Plan/ recommendations
Bakery Chain
Same quality,competencies
Investing on farmersImprove Operational
efficiency
Tap out of Home
market
Exports
Dairy products, rusks,Namkeen/snacks
Reduce dependenceOn Biscuits - diversify
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THANK YOU FOR YOUR
ATTENTION