britania 1.10

Upload: rup-mahadik

Post on 09-Apr-2018

247 views

Category:

Documents


0 download

TRANSCRIPT

  • 8/8/2019 Britania 1.10

    1/26

    BUSINESS ENVIORNMENT PROJECT

    2010-2011

    Name: abc

    Class: 4 A, Roll no:29

    Project on BRITANIA BISCUIT

  • 8/8/2019 Britania 1.10

    2/26

    Index

    Meaning of Business Enviornment What is enviornment analysis

    Need & importnace of business analysis

    Acknowldement

    Company Overview

    Business Profile

    Financial Performance

    History of Britania Biscuits

    Good day story Reasons for going global

    Swot analysis

    Marketing Strategy

    PEST Recommendations

  • 8/8/2019 Britania 1.10

    3/26

    Meaning of Business Environment

    Business environment is an aggregate of all the conditions, events and

    influences that surround and affect it. It is broad and ever changing as

    its separate elements interact with one another. It consists of internal

    and external factors that may influence the nature and scope of

    business activities. It can be described as favourable or unfavourable,

    liberal or conservative and progressive or regressive.

    What is Environmental analysis?

    Environmental analysis is the study of the business environment like

    political, legal, cultural, economic, technological, etc so that the

    company can have a competitive edge by balancing the companys

    resources and objectives with the external environment. The study of

    business environment or environmental impact analysis within the

    country is absolutely essential in the case of all business enterprises.

    An analysis of business environment is necessary for a clear

    understanding of the environment and the changes taking place in it.

    It also helps in matching the strengths and weaknesses of firm with

    the opportunities and threats operating in the environment. Thus

    environmental analysis helps a firm to achieve its long term objectives

    like survival, growth and stability of an organization. Environmental

    analysis has three basic goals:

    First the analysis should provide an understanding of current and

    potential changes taking place in the task environment. It is important

    that one must be aware of the existing environment.

  • 8/8/2019 Britania 1.10

    4/26

    Secondly, environmental analysis should provide inputs for strategic

    decision-making. Mere collection of data is not enough. The

    information collected must be used for strategic decision making.

    Thirdly, environmental analysis should facilitate and foster strategic

    thinking in organizations- typically a rich source of ideas and

    understanding of the context within which a firm operates. It should

    challenge the current wisdom by bringing fresh viewpoints into the

    organizations.

    Need and importance of B.E analysis

    1) Knowledge of internal environment:

    It is very important for the business to understand its internal

    environment such as business policies, objectives of business

    enterprise, its resources, organization structure and authority

    responsibility relationship which is provided by environmental

    analysis.

    2) It provides information about prospects and problems:

    Various factors surrounding the business keeps on changing due

    to technological developments, consumers income, habits and

    socio economic changes. These changes open up new

    opportunities and also create problems for the present and newentrepreneurs. A study of environment can help to identify new

    opportunities and minimize the problems.

  • 8/8/2019 Britania 1.10

    5/26

    3) It studies dynamic behavior of the environment: Various factors

    surrounding business such as economic, social, political, etc keep

    changing. These changes have a profound effect on the

    functioning of business enterprises. An analysis of business

    environment helps to understand the dynamism of the

    environment and suggest means to adapt and adjust to them.

  • 8/8/2019 Britania 1.10

    6/26

  • 8/8/2019 Britania 1.10

    7/26

    ACKNOWLEDGEMENT

    A work is never a work of an individual. I owe a sense of gratitude to

    the intelligence and co-operation of those people who had been so

    easy to let me understand what i needed from time to time for

    completion of this exclusive project.

  • 8/8/2019 Britania 1.10

    8/26

    We want to express our gratitude towards Mrs .Ashwini Kadam,Business Environment Faculty, DY Patil for giving me an opportunity todo this project.

    Last but not the least, I would like to forward our gratitude to my

    friends & who always endured me and stood by me and without whom

    i could not have envisaged the completion of my project.

    Company Overview

    The story of one of India's favourite brands reads almost like a fairy

    tale. Once upon a time, in 1892 to be precise, a biscuit company was

    started in a nondescript house in Calcutta (now Kolkata) with an initial

    investment of Rs. 295. The company we all know as Britannia today.

  • 8/8/2019 Britania 1.10

    9/26

  • 8/8/2019 Britania 1.10

    10/26

    world's second largest Dairy Company, and Britannia New Zealand

    Foods Pvt. Ltd. was born. In recognition of its vision and accelerating

    graph, Forbes Global rated Britannia 'One amongst the Top 200 Small

    Companies of the World', and The Economic Times pegged Britannia

    India's 2nd Most Trusted Brand.

    Today, more than a century after those tentative first steps,

    Britannia's fairy tale is not only going strong but blazing new

    standards, and that miniscule initial investment has grown by leaps

    and bounds to crores of rupees in wealth for Britannia's shareholders.

    The company's offerings are spread across the spectrum with products

    ranging from the healthy and economical Tiger biscuits to the more

    lifestyle-oriented Milkman Cheese. Having succeeded in garnering the

    trust of almost one-third of India's one billion population and a strong

    management at the helm means Britannia will continue to dream big

    on its path of innovation and quality. And millions of consumers will

    savour the results, happily ever after.

  • 8/8/2019 Britania 1.10

    11/26

    Business Profile

    Britannia manufactures diary products from its plants located inKolkata, Delhi, Chennai, Mumbai, and Rudrapur. The company has atotal installed capacity of 163,500 MT of biscuits and proteinfoodstuffs. Key brands include Tiger, Good Day, Milk Bikis, Treat, and

    Marie. In FY09 the company launched new brands; 50:50 Chutkule,Treat Fruit, Rollz, NutriChoice Digestive, and renovated Milk Bikis,Chota Tiger, and Chocolate Cream in the Tiger range. Further in 2008,the company launched iron fortified Tiger' biscuits,'Good Day ClassicCookies', Low Fat Dahi and renovated 'MarieGold'.

    In 2009, biscuits and high-protein food achieved a y-o-y productionincrease of 23% and 26%, respectively. During FY09, the bread, cake,and rusk business grew by 54% y-o-y. Britannia exports its productsto countries in the Middle East and to USA, Ghana, and Singapore. It

    has a JV in New Zealand to undertake marketing of dairy products. In2009, Britannia formed a JV with Khimji Ramdas Group to set up twobakery product companies in the Middle East. The company acquired70% stake in Strategic Foods International LLC in Dubai and in Oman-based Al Sallan Food Industries Co SAOG. During 20093, Britanniaformed a strategic alliance with a Bangalore-based company, DailyBread. This alliance will provide products under the brands Daily Breadand Delucas.

  • 8/8/2019 Britania 1.10

    12/26

    Registered Office:5/1/A Hungerford Street,

    Kolkata - 700 017

    West Bengal

    Ph: 033 - 2287 0505 / 2287 2439 / 2287 2057

    Fax: 033 - 2287 2501

    Financial Performance

    The year witnessed unprecedented commodity inflation, particularly in

    sugar, wheat and milk products, in the latter half of the year, coupled

    with a fiercely competitive environment. This restrained your

    Companys ability to correct selling prices and had a high adverse

    impact on margins and profitability. Consequently, whilst your

    company added Rs 2817 MM to gross sales, Profit from Operations

    declined by Rs 778 MM, excluding provisions for certain one-off items

    aggregating Rs 258 MM for certain disputes relating to a long term

    lease, excise duty demand and obligation arising from a past

    acquisition. Net cash flow from operating activities was Rs 2353 MM,

    achieved by a disciplined approach to managing working capital.

    Exceptional items for the year include Rs 329 MM towards amortization

    of VRS costs and provision of Rs 200 MM for losses arising from Sri

    Lanka operations andclosure. Earnings Per Share was Rs 48.77. The

    tables below show trends in performance across key parameters:

  • 8/8/2019 Britania 1.10

    13/26

  • 8/8/2019 Britania 1.10

    14/26

    History of Britania Biscuits

    The history of biscuits can be traced back to a recipe created by the

    Roman chef Apicius, in which "a thick paste of fine wheat flour was

    boiled and spread out on a plate. When it had dried and hardened it

    was cut up and then fried until crisp, then served with honey and

    pepper."

    The word 'Biscuit' is derived from the Latin words 'Bis' (meaning

    'twice') and 'Coctus' (meaning cooked or baked). The word 'Biscotti' is

    also the generic term for cookies in Italian. Back then, biscuits were

    unleavened, hard and thin wafers which, because of their low water

    content, were ideal food to store.

    As people started to explore the globe, biscuits became the ideal

    travelling food since they stayed fresh for long periods. The seafaring

    age, thus, witnessed the boom of biscuits when these were sealed in

    airtight containers to last for months at a time. Hard track biscuits

    (earliest version of the biscotti and present-day crackers) were part of

    the staple diet of English and American sailors for many centuries.

    The English, Scotch and Dutch immigrants originally brought the

    first cookies to the United States and they were called teacakes. They

    were often flavoured with nothing more than the finest butter,

    sometimes with the addition of a few drops of rose water. Cookies in

    America were also called by such names as "jumbles", "plunkets" and

    "cry babies".

    Interestingly, as time has passed and despite more varieties

    becoming available, the essential ingredients of biscuits haven't

    changed - like 'soft' wheat flour (which contains less protein than the

    flour used to bake bread) sugar, and fats, such as butter and oil.

  • 8/8/2019 Britania 1.10

    15/26

    Today, though they are known by different names the world over,

    people agree on one thing - nothing beats the biscuit!

    Some interesting facts on the origin of otherforms of biscuits

    The recipe for oval shaped cookies (that are also known as boudoir

    biscuits, sponge biscuits, sponge fingers, Naples biscuits and Savoy

    biscuits) has changed little in 900 years and dates back to the house

    of Savoy in the 11th century France. Peter the Great of Russia seems

    to have enjoyed an oval-shaped cookie called "lady fingers" when

    visiting Louis XV of France.

    The macaroon - a small round cookie with crisp crust and a soft

    interior - seems to have originated in an Italian monastery in 1792

    during the French Revolution.

    SPRING-uhr-lee, have been traditional Christmas cookies in Austria

    and Bavaria for centuries. They are made from a simple egg, flour and

    sugar dough and are usually rectangular in shape. These cookies are

    made with a leavening agent called ammonium carbonate and baking

    ammonia.

    The inspiration for fortune cookies dates back to the 12th and 13th

    Centuries, when Chinese soldiers slipped rice paper messages into

    moon cakes to help co-ordinate their defence against Mongolian

    invaders.

  • 8/8/2019 Britania 1.10

    16/26

    Good day Story

    Britannia Good Day was launched in 1986 in two delectable avatars -Good Day Cashew and Butter. Over the years, new variants wereintroduced - Good Day Pista Badam in 1989, Good Day Chocochips in2000 and Good Day Choconut in 2004.

    This rich cookie enjoys a fan following of consumers across allages, loyal to the brand promise of a great taste, evident from thevisibly abundant ingredients. Good Day is among the fastest growingbrands in Britannia's portfolio and it has been the leader in the cookiescategory ever since its launch. The brand is synonymous witheveryday treats that infuse happiness into people's lives.

    After two decades of magnificent success; it was time to give thenation yet another reason to have a good day. Abundance, goodness,indulgence and now unrestrained joy - that is the message of this new

    campaign.The new TT ad is the uncontrollable expression of the ticket collector'shappiness and joy that is stimulated by consumption of the cookie,that spreads cheer amongst the people around him creating anatmosphere of shared joy that's unorchestrated and straight from theheart. The celebration was taken to the IPL as Good day cheered alongwith a million cricket fans in the stadiums, each screaming andproclaiming "Ho gaya re Good Day". The dazzling brilliance of thisendeavour, the contagious rhythm needs to be lived and spreadthrough the nation, making 'Iska toh ho Gaya Re Good Day' a part ofthe common lingo and a way of life.Good Day truly believes laughter and happiness are infectious, ittranscends race, caste creed unifying humanity in an inclusiveemotion.

    The brand perseveres to infuse cheer, hearten the nation and

    enliven lives. With its rightful place on the front page ofThe Times of

    India, Good Day gifts the nation a priceless treasure, that of

    spreading JOY!

  • 8/8/2019 Britania 1.10

    17/26

    Products:

    Competitiors in India

  • 8/8/2019 Britania 1.10

    18/26

    Other players

    HLL,

    Bisk Farm,

    Anmol,

    Elite,

    Cremica,

    Dukes,

    Anupam,

    Craze,

    Reasons for going global?

  • 8/8/2019 Britania 1.10

    19/26

    The Company witnessed all round growth in key categories withBiscuits recording sales of Rs. 23,299 Mn. Bread, Cake and Ruskbusiness crossed the Rs. 2,700 Mn mark during 2007-08. This

    business has doubled in two years.

    In an intensely competitive biscuit environment, all Power Brands ofthe Company recorded double digit growth, with Tiger and Good Daygrowing in excess of 20%. The Companys innovation forays havesuccessfully addressed new benefit clusters and NutriChoice Digestivehas claimed its position in the health and vitality space. The Companycontinues to maintain its leadership edge in 6 out of 7 key productsegments, the only exception being Glucose.

    The Company introduced several new and renovated offerings in Tiger,Good Day, Treat and MarieGold. The health and nutrition platform wasbuttressed by Tiger Banana with iron-zor, fortified Milk Bikis,renovated MarieGold and Nutrichoice Digestive. To tap the moreindulgent consumers, your Company launched Good Day ClassicCookies, while continuing to roll out individual consumption packs atthe highly affordable Rs. 5 price point.

    The Bread, Cake and Rusk portfolio was strengthened with thesuccessful relaunch of Breads, fortified with vitamins and minerals,positioning them firmly as the healthy start to your day. This

    innovation combined with relevant consumer activation in key marketshas seen a 30%+ growth in the Bread, Cake and Rusk business.

    Britania industries ltd, Indias leading biscuit co, expects to start workon its unit in Japan.Even as Britania is expanding capacities, it is concentrating on costminimization,Which continues to be a key parameter for the manufacturing systemand in this regard, the appropriate exploitation of latest technologieslike energy efficient ovens, on line mixing have been put in place infew relevant units. This drive will continue in the forthcoming years toleverage technology as a competitive edge.

    What is SWOT analysis??

  • 8/8/2019 Britania 1.10

    20/26

    SWOT Analysis Sample A scan of the internal and external

    environment is an important part of the strategic planning process.

    Environmental factors internal to the firm usually can be classified as ..

    Content Inside: SWOT Analysis Sample A scan of the internal

    and external environment is an important part of the strategic

    planning process. Environmental factors internal to the firm usually

    can be classified as strengths ( S ) or weaknesses ( W ), and those

    external to the firm can be classified as opportunities ( O ) or threats

    ( T ). Such an analysis of the strategic environment is referred to as a

    SWOT analysis .

    Strength

    1. Britania Brand

    2. Diversified Product Range3. Extensive Distribution Network4. (Availability in mostremote villages)

    5. Low & mid range price segment6. catering to mass7. Better understanding of consumer psyche.

    Weakness

    1. Dependance on retailers and grocery stores for displaying diversifiedBritania products on shelf to induce impulsive buying

    2. Dependance on Britania3. Lackness of rural areas

    Threats

  • 8/8/2019 Britania 1.10

    21/26

    1. Hike in the cost of production due to hike in the prices of raw materialsand increase in transportation plus distribution cost due to high wedges andoil prices2. Entry of ITC (having very good distribution channels) in to biscuitindustry

    Opportunities

    Indian Biscuit Manufacturers Association (IBMA) estimates annualgrowth of around 20% in next couple of years.The $220 Billion food industry is expected to grow to $300 Billion by2015.

    Per capita consumption of Biscuits in the country t he country isonly 1.8 kg as compared to 2.5 kg to 5.5 kg in Sout h East Asiancountries and European countries, and 7.5 kg in USA.Growing demand of Sugar free cream crackers & diet biscuitsOpportunity to further grown in Urban & Rural market; Currentpenetration levels are

    Urban Market : 75% to 85%Rural Market: 50% to 65%Grow in southern and east India

  • 8/8/2019 Britania 1.10

    22/26

    Marketing Strategies

    Britania price Mix

    Britania has adopted the Market Penetration strategy i.e Low pricealong with capuring of a Japan market . The biscuit industry is beenexperiencing steady growth of 14-15% annually.

    Also they focus on providing good quality products at the sametime, which means it uses the value pricing method.Profit margin distributors is 4% and for retailers is 10-12%

    Britania place Mix

  • 8/8/2019 Britania 1.10

    23/26

    The extensive distribution network, built over the years,is a major strength forBritania products.

    Britania has got nearly 150 wholesalers, catering to 100000 retil outlates inJapan, A 200 strong dedicated field force services its huge wholesalers &retailers network.

    Additionally got there are 20 depots and C&F agents supplying goods tothe wide distribution network.

    Britania Pramotion Mix

  • 8/8/2019 Britania 1.10

    24/26

    Advertising It was advertising through press ads, schools, online websites,and brochures in Japanese (official), Ainu, Korean. The communicationspoke about the basic benefits of energy and nutrition.

    Britania has advertised the use of Japanes celebritySales Pramotion: Britania have planning to hold day fairs at branded venueswhere games and fun events are organzied for the loacl people, whereBritania products are giveway prizes.Public relations: Britania have planning something to do for enhancing publicrelations:Britania sponsored the teleserial of the Japanese superhero, the great japhero, that going to be become a huge success.

    PEST

  • 8/8/2019 Britania 1.10

    25/26

    Political:TaxesProduction and distribution licenses

    Economical:Increase in per capita incomeIndias GDP growing at an average 8 %

    Social:Increase in per capita consumptionIndias 2nd largest producer of biscuitAgeLifestyle

    Perception

    Technological:InnovationR & D

    Recommendations

  • 8/8/2019 Britania 1.10

    26/26

    To get benefit s of growing biscuit industry, I have following2 recommendations to Britania

    1] a. Promote Parle brand through schemes such as Britania GraminSwastha Yojana (a net work of ambulance van visiting rural areasgiving basic medical treatments educating people on nutrition deficiencyproblems and promoting Parle nutritious products)

    b. Promote Parle brand through T. V. shows such as Britania Sakhi(Britania - Friend of Women ).The weekly T.V show will cater to healthissues of women and children and will explain long term benefit s of healthydiet )

    Results Expected 1.Improved sales through Top of mind recall.2.Reduced competition for visible shelf space in small groceryand retail stores.3. Communicating Britania value of Nutrition Product4. Brand Loyalty

    2] Advertise products segment wise as followsa. Nutritious/Glucose biscuits

    Advertisement by doctors/ dieticians to explain t he benefit s to heath

    conscious consumersAdvertisement by cricketers (Cricket is a very popular game in India)to attract youth

    b. Cream biscuitsTo be endorsed by bollywood (film) starts

    Result s expected 1. Increased penetration in rural,2. Southern and eastern market.

    3. Attracting health & diet conscious people.