09891663303

RURAL MARKETING STRATEGIES Team 1

Silamabarasan

Kaushik

Thirumukkilan

Abhinesh

Gopi

Sriram

CONTENTS

Sl.noTopicPage number

1History of biscuits

3

2Biscuit industry in India

4

3Britannia

7

4Products

8

5Consumer buying behaviour

14

6Rural markets

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7SWOT analysis of Britannia

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8Penetration of Britannia in rural market

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9Conclusion22

HISTORY OF BISCUITSThe word biscuit is derived from the Latin words bis cotus, meaning twice baked. The idea of making biscuits goes back to the Romans. However biscuits as we know them were developed in the late Middle Ages.

People have eaten pancakes since the Middle Ages. (The earliest recipe dates from the 15th century).

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.

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."BISCUIT INDUSTRY IN INDIA Biscuit industry in India in the organized sector produces around 60% of the total production, the balance 40% being contributed by the unorganized bakeries. The industry consists of two large scale manufacturers, around 50 medium scale brands and small scale units ranging up to 2500 units in the country, as at 2000-01. The unorganized sector is estimated to have approximately 30,000 small & tiny bakeries across the country. The annual turnover of the organized sector of the biscuit manufacturers (as at 2001-02) is Rs. 4,350 crores. In terms of volume biscuit production by the organized segment in 2001-02 is estimated at 1.30 million tonnes. The major Brands of biscuits are - Brittania, Parle Bakeman, Priya Gold,Elite,Cremica, Dukes, Anupam, Horlicks, Craze, Nezone, besides various regional/State brands.

The annual production of biscuit in the organized sector, continues to be predominantly in the small and medium sale sector before and after de-reservation. The annual production was around 7.4 Lakh tonnes in 1997-98 In the next five years, biscuit production witnessed an annual growth of 10% to 12%, up to 1999-00. The annual Growth showed a decline of 3.5% in 2000-01, mainly due to 100% hike in Central Excise Duty (from 9% to 16%). Production in the year 2001-02 increased very marginally by 2.75% where in 2002-03 the growth is around 3%.

BRITANNIA

The story of one of India's favorite 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.

The beginnings might have been humble-the dreams were anything but. By 1910, with the advent of electricity, Britannia mechanized its operations, and in 1921, it became the first company east of the Suez Canal to use imported gas ovens. Britannia's business was flourishing. But, more importantly, Britannia was acquiring a reputation for quality and value. As a result, during the tragic World War II, the Government reposed its trust in Britannia by contracting it to supply large quantities of "service biscuits" to the armed forces.

As time moved on, the biscuit market continued to grow and Britannia grew along with it. In 1975, the Britannia Biscuit Company took over the distribution of biscuits from Parry's who till now distributed Britannia biscuits in India. In the subsequent public issue of 1978, Indian shareholding crossed 60%, firmly establishing the Indianness of the firm. The following year, Britannia Biscuit Company was re-christened Britannia Industries Limited (BIL). Four years later in 1983, it crossed the Rs. 100 crores revenue mark.

On the operations front, the company was making equally dynamic strides. In 1992, it celebrated its Platinum Jubilee. In 1997, the company unveiled its new corporate identity - "Eat Healthy, Think Better" - and made its first foray into the dairy products market. In 1999, the "Britannia Khao, World Cup Jao" promotion further fortified the affinity consumers had with 'Brand Britannia'.

Britannia strode into the 21st Century as one of India's biggest brands and the pre-eminent food brand of the country. It was equally recognized for its innovative approach to products and marketing: the Lagaan Match was voted India's most successful promotional activity of the year 2001 while the delicious Britannia 50-50 Maska-Chaska became India's most successful product launch. In 2002, Britannia's New Business Division formed a joint venture with Fonterra, the 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.

PRODUCTSTiger Banana

Britannia is committed to help secure every child's right to Growth & Development through good food everyday. Purposefully taking forward the credo of 'Eat Healthy, Think Better', we have launched a new variant under our power brand TIGER - TIGER BANANA - power packed with IRON ZOR & and with the delightful taste of banana.

IRON ZOR helps make mind sharper and body stronger. A Rs.4 pack has as much IRON ZOR as that in 1 kg of Banana.

R&D in Britannia has spent considerable time to develop this nutritious and delightful snack for children.Britannia Tiger Banana packed with IRON ZOR and goodness of Banana is accessible to all, being available in convenient packs priced at Rs.2, Rs.4 and Rs.10.

NutriChoice SugarOut

Sounds like yesterday when people commented that healthy foods meant "compromising on the taste." NutriChoice SugarOut is the most novel product range to have been introduced in the market. The product is not just sweet but tastes great, and yet contains no added sugar. This is because NutriChoice SugarOut is sweetened with "Sucralose," derived from sugar, which provides the same sweetness as any other biscuit, without the added calories of sugar.

This range is available in 3 delicious variants namely Litetime, Chocolate cream, and Orange cream, targeted towards all health sensitive people. It is also relevant for consumers with sugar related ailments. We are sure that you will be pleasantly delighted with its great taste and equally surprised to know that it has no added sugar.Don't be taken for a ride when you read "Sugar Free" label on many biscuit packs marketed in India or abroad. Even with 100% no-added sugar, wheat-cereals in biscuits have their own natural sugar content. Britannia has chosen to represent these biscuits with "No Added Sugar" claim, as there is no added sugar in the processing of NutriChoice SugarOut.

Britannia 50-50 Pepper ChakkarThe launch of the latest 50-50 variant left everybody guessing "What it eez?" From TV ads, radio, outdoor and in-store display materials to events, a website and SMS and email blasts, traditional and new media were blended synergistically to create excitement and curiosity about the unique taste of the biscuit. The tangy and distinctive pepper flavoured biscuit, that's thin and crispy and more like a snack, caught the imagination of a younger audience craving something to nibble on. The 50-50 Pepper Chakkar launch is truly a case of leveraging the marketing mix to best advantage.

NutriChoice Digestive Biscuit

Nothing can be more difficult than making small efforts in our daily life towards healthy and active living. 24/7 we are engrossed in our busy schedules; skipping meals, missing walks, along with inadequate sleep and frequently eating-out, all take a heavy toll on our health.

At least with the new and improved NutriChoice Digestive Biscuit, we have one less thing to worry about. Made with 50% whole-wheat and packed with added fibre (10% of our daily dietary needs), these delightfully tasty biscuits are amongst your healthiest bites of the day.

In your next visit to a shop just look out for its Golden-green international carton pack.

Try one and you'll know that you've made one smart choice - NutriChoice.

All kids who have relished the yummy creamy treasures of Britannia Treat in exciting flavors, have yet another reason to celebrate! Britannia Treat launches the amazingly yummy Treat Fruit Rollz!! These tasty soft rolls are filled with real fruits and provide a healthy yet mouth-watering treat to the kids. Fruit Rollz comes in four masti fruit flavours - Juicy Apple, Strawberry Surprise, Tangy Orange and Delicious Dates!

Want to know a little secret? They make the best tiffin treats! So during snack time what better than to munch on the delicious and healthy Fruit Rollz and discover the yummy fruit flavor from within the shells. Keeping up with Britannia's platform of 'taste bhi, health bhi', Fruit Rollz is indeed a yummy snacking option for kids, while keeping the Moms assured about the goodness provided by the fruit filling.

So go on and treat yourself to the lip-smacking snack!

New Britannia Milk BikisMilk Bikis, the favourite growth partner of Kids, now brings greater value and delight to all with its new product and pack design. Recently re-launched in its existing Southern & Eastern markets, and extended across India, the new Milk Bikis is all set to add excitement and appeal to nutritious food. Whoever said that good food needs to look dull and boring, will just have to take a look at Milk Bikis.

With a unique and attractive honeycomb design and an enhanced product experience, the new biscuit prompts the Kids will love it reaction amongst mothers. The milk goodness in the recipe is now enhanced with SMART NUTRIENTS 4 vital vitamins, iron and iodine, proven to aid mental and physical development in growing kids. The premium packaging, besides appealing to kids, also ensures that the biscuits remain fresh and crisp.So, whether its breakfast time or snack time at school, rest assured that kids will look forward to munching these crunchy, milky biscuits which even helps in their development. And yes, adults wont be far behind in reaching out for a pack

CONSUMER BUYING BEHAVIORUnderstanding the buying behavior of the target market is the essential task of marketing management under marketing concept. The consumer market consists of all the individuals and households who buy or acquire good and services for personal consumptions. The buying behavior tries to find out the answers for the questions, who buys? How do they buy? Where do they buy? Do they buy?

(A) FACTORS INFLUENCING CONSUMER BUYING BEHAVIOR

There are four major factors that influence the buying behavior such as cultural factors, social factors, personal factors, and psychological factors.

i. CULTURAL FACTORS: Culture is the most fundamental determinant of a person wants and behavior. Values, perceptions, preferences, and behavior are the main variable under culture of an individual. Each culture contains sub-culture like nationality, religious group, geographical area, and linguistic divisions etc.

ii. SOCIAL FACTORS: A consumer behavior is also influenced by social factors such as the consumer reference group family and social roles and status.

iii. PERSONAL FACTORS: A buyer decision is also influenced by his or personal characteristics, notably the buyers age, lifestyle, occupation, economic circumstances etc.

PSYCHOLOGICAL FACTORS: a person buying choice is also influenced by four major psychological factors such as motivation, perception, learning belief and attitudes.

(B) BUYING DECISION PROCESS

It includes buying roles, types of buying and steps in buying process.

i. Buying Role

The buying role could be classified into four parts. These are initiator, influencer, decider and buyer.

II. Types of buying behavior

Consumer decision taking varies with the type of buying decision. There are four types buying behavior such as Complex buying behavior, Habitual buying behavior, Variety seeking buying behavior.

Market segmentation and selecting target market

It is an effort to increase a company's precision marketing. The starting point of any segmentation discussion is mass marketing. In mass marketing, the seller engaged in the mass production, mass distribution and mass promotion of one product for all buyers. Market segment consists of a large identifiable group within a market with similar wants, purchasing power geographical location, buying attitudes or buying habita. It is an approach midway between mass marketing and individual marketing. Through this the choice of distribution channels, and communicaton channels become much easier. The researchers try to form segments by looking at consumer characteristics; geographic, demographic, and psychographic. After segmenting the market then target market selected.

2. Positioning:- The positioning is a creative exercise down with an existing product, the well known products generally hold a distinctive position in consumer's minds. The positioning requires that every tangible aspect of product, price, place and promotion must support the chosen positioning strategy. Company should develop a unique selling proposition (USP) for each brand and stick to it, PPL consistently promotes its DAP fertilizer by Higher yield at lower cost. As companies increase the number of claims for their brand, they risk disbelief and a loss of clear positioning. In general a company must avoid four major positioning errors. Those are under positioning over positioning, confused positioning and doubtful positioning.

3. Product:- A product is any offering that can satisfy a need or want. The major types of basic offerings are goods, services, experiences, events, places, properties, organizations, information and ideas. The company gives more importance in quality, packaging, services etc. to satisfy the customers. The products has it's life cycle. The product strategies are modified in different stages of product life cycle.

4. Price:- It is the most important aspect in company's point of view. Price of the product will be decided by the company according to the competitor's price.

5. Place:- This plays a major role in the entire marketing system. the company emphasis on it's distribution network. Proper distribution network gives proper availability of the product.

6. Promotion:- Promotion is the one of the major aspects in marketing strategies. By adopting various promotional activities the company create strong brand image. It also helps in increasing the brand awareness. It includes advertising, sales promotioins and public relations etc.

7. Research and Development:- after testing, the new product manager must develop a preliminary marketing strategy plan for introducing the new product in to the market. The plan consists of three parts. The first part describes the target market's size, structure and behavior. The second part out lines the planned price, distribution strategy and marketing budget for the first year. The third part of the development describes the long run sales and profit goals and marketing mix strategy over time.RURAL MARKETSThe main reasons for Britannia entering into rural markets are

Rural India accounts for over 75% of India's population.

Strength of Market

Size of Market

Incomes in rural India have improved dramatically.

The rural markets are growing at about two time faster pace than urban markets.

Rural India accounts for 60 % of the total national demand.

The snaking habit in rural market consists of tea with biscuits, so there is demand for biscuits in rural market.

Problems in Rural Marketing

Under developed people

Low levels of literacy

Physical Communication Facilities

Media for Rural Communication

Multiplicity languages and dialects

Vast and Uneven Spread

Low per capita income

Logistics, Storage, Handling and Transportation

Marketing Organisation and Staff

Product Positioning

Hierarchy of markets

Seasonal demand patterns

MARKETING MIX

Target Market

Product PricePromotion Place

Product varietyList priceSales promotionChannels

Quality DiscountsAdvertisingCoverage

DesignAllowancesSales forcesAssortments

FeaturesPayment periodPublic relationLocations

Brand nameCredit termsDirect marketingInventory

PackagingTransport

Sizes

Services

Warranties

Returns

SWOT Analysis OF bRITANNIA

Strength Fulfill one of our Basic Requirement among Air , Water , Food, Shelter

Widely accepted in all Generations

Easily available in various forms

Provide good Instant Remedy for hunger in the form of readymade food

Preserves the non seasonal food and makes it available all throughout the yearWeakness Decreases nutritional value

Increases the cost of food product

Industry and technology requires high investment

Regular usage of processed food can cause alteration in health

Opportunities Increase economy of India

Generate employment opportunity

Good quality of Goods

Provide competition to foreign companies

Improve living standard

Provide goods to nation at cheaper rate

Inflow of foreign reserve and funds for the govt.(taxes)Threats Many companies are result oriented

Increase in pollution

Sometimes provide poor quality of product for more profit

Lack of technology

Unable to utilize all the resources efficiently

Penetration of Britania in rural marketOver the last five years the share of glucose biscuits, a segment that has traditionally found favour in rural markets, has fallen from 35% to 15% of Britannia's biscuit sales. The $1-billion company now plans to push its slightly more premium offerings like Good Day cookies and Britannia Marie brands in to the country's hinterland in value packs of Rs 5.

"The rural consumers are also looking for quality. They will not stay with a Parle-G or Tiger (Britannia's glucose biscuit) for life. Agricultural income is growing pretty rapidly and consumers are looking to upgrade for better consumption experiences," said Varun Berry, India business head and executive director at Britannia.Britannia is stepping up its rural presence as well as expanding its food and snacks portfolio to drive long-term growth. Notably, rural markets have remained fairly stable as compared to urban markets during this slowdown and hence, companys strategy of increasing rural penetration seems to be appropriate. Improved financial health of its Dairy and International businesses will also aid growth. While an unprecedented rise in input costs remains the key risk, monetisation of its land assets at Chennai and Bengaluru will act as key stock price catalysts.

Staying away from rural and smaller markets wasn't a conscious decision for Britannia. "However, we hadn't built around that market to the extent that we were bullet proof," says Berry. He adds that going rural would not mean selling only low-priced biscuits in these areas. Premium brands such as Good Day would also be sold there but in smaller packs and at prices local residents can afford.

New launches by Britannia have been not been too successful. The company has tried oats and snacks (Snackuits), which it quickly took off the shelves when they failed to attract customers. Considering Berry's past experience as head of the food and snack business at PepsiCo, many expect Britannia to give snacks a second shot.

ConclusionFrom the above report are able to learn about the presence of Britannia in market both in rural and urban market and the issues faced in it ,threats posed by competitors and their lack of knowledge .thus certain plans such as creative advertisement and strategic planning can be done in order to penetrate eh market of rural as even rural people has started to have a good spent thrift thus by segmenting and targeting the correct sector of people will lead the Britannia to recapture its lost market by its effective strategy.

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