devika - final report

8/8/2019 devika - Final Report

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A REPORT

ON

MARKET RESEARCHON

CONSUMER BEHAVIORFOR BISCUITS

AT TRANSIT CLUSTERS

BY:Name: Devika Mathur

Enrollment No.: 09BS0003081 Name of the Organization:

Britannia Industries Limited


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A REPORTON

MARKET RESEARCHON

CONSUMER BEHAVIORFOR BISCUITS

AT TRANSIT CLUSTERS

By:Devika Mathur09BS0003081

Britannia Industries Limited

A report submitted in partial fulfillment of the requirements of

MBA Program of

The ICFAI University, Dehradun

DISTRIBUTION LIST

Prof. Tapas Mahapatra Ms. Nimisha JainIBS-Gurgaon Area Sales Manager

Britannia Industries Ltd.

Date of submission


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AUTHORIZATION

I, Devika Mathur , here by state that, this project work entitled Studyon Consumer Behavior for Biscuits at Transit Clusters is an originalpiece of work done and submitted by me towards partial fulfillment of the requirement of MBA Program of ICFAI University, Dehradun. Thefindings and conclusions expressed in this report are genuine and foracademic purpose only. It is my own and it has neither been submittednor published anywhere before, any resemblance to earlier project or

research work is purely coincidental. It is totally based on my hard work and creativity.

Signature

Devika Mathur


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ACKNOWLEDGEMENTS

A work is never a work of an individual.There is joy in work. There is no happiness except in the realization that we haveaccomplished something - Henry Ford

The making of any project requires contribution from many people, right frominception till its completion. In my case also, there had been a few people whohave made this happen. It was not only learning but also an enriching experience.

I owe a sense of gratitude to the intelligence and co-operation of those peoplewithout whom this project wouldnt have been as much a learning experience andas successful. To those, who helped and supported me during the course of thisproject and provided me with what I needed from time to time for completion of this report.

My deepest sense of gratitude for the Faculty-in-Charge, Prof. Tapas Mahapatra ,IBS-Gurgaon, for constant guidance, professional help and support during thecourse of the project, for .guiding me and helping me at all times during theproject.

I express my thanks to the Company Guide, Ms. Nimisha Jain , (Area SalesManager, Britannia Ind. Ltd.) for extending her support and guidance for thisproject.

I also owe a word of thank to Mr. Sumant Sharma (Territory Sales Incharge,Britannia ind.ltd.), Mr. R.P. Singh (Salesman, Keshav Enterprises), Mr. MonishSharma (Salesman, Keshav Enterprises) who constantly guided me in my fieldwork.And last but not the least to all those retailers and consumers of biscuits whoguided and provided me with all the ground details which helped me towards thecompletion of this report.

Devika Mathur


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TABLE OF CONTENTS

1. AUTHORIZATION ......................................................................................................................... 32. ACKNOWLEDGEMENTS ............................................................................................................... 43. TABLE OF CONTENTS................................................................................................................... 54. ABSTRACT ................................................................................................................................... 65. COMPANY PROFILE ..................................................................................................................... 7

The Origin of 'Eat Healthy Think Better' ........................ .......................... .......................... ........... 8Britannias Portfolio .................................................................................................................... 9

6. FMCG INDUSTRY ....................................................................................................................... 107. BISCUIT INDUSTRY .................................................................................................................... 11

8. COMPETITORS .......................................................................................................................... 13Parle ......................................................................................................................................... 14Priyagold ................................................................................................................................... 14ITC Sunfeast ........................................................................................................................... 14

9. INTRODUCTION ........................................................................................................................ 15Objectives of Project: ................................................................................................................ 15Consumer Buying Behaviour ..................................................................................................... 16

10. PURPOSE AND SCOPE OF THE PROJECT ..................................................................................... 1711. LIMITATIONS OF THE STUDY ..................................................................................................... 1812. METHODOLOGY ........................................................................................................................ 1913. RETAIL MARKET SURVEY ........................................................................................................... 21

Statement of the Problem ....................... ......................... .......................... .......................... ..... 21Survey Details ........................................................................................................................... 22

14. FINDINGS OF THE RETAIL MARKET SURVEY ............................................................................... 2315. TRANSIT CLUSTER SURVEY ........................................................................................................ 2916. QUESTIONNAIRE ....................................................................................................................... 3017. ANALYSIS OF THE QUESTIONNAIRE ........................................................................................... 3418. SWOT ANALYSIS BRITANNIA ................................................................................................... 4919. CONCLUSION AND RECOMMENDATIONS .................................................................................. 5020. REFERENCES ............................................................................................................................. 51


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ABSTRACT

The project provides a background and an overview of how tastes, health consciousnessand price sensitivity influences consumers buying behaviors. It also attempts to identifyany commonalities and differences between consumers of various markets. And alsoillustrates what impact these differences and commonalities have on sales of Britanniabiscuits when compared to its competitors and substitutes.

The project is targeted at understanding the buying pattern of consumers in transits.

Transit Clusters are small shops/stalls that cater to the consumers in transit. The majorinfluencers that help consumers in making the decision of what to buy are the centre of

this study.

Consumers behave differently in different situations. A consumer behaves differentlywhen buying biscuits in his weekly ration and when buying as a snack while travelling.

The in-depth study of the behavior of the consumers at these transit clusters and to findout what sells at these points is the ultimate aim of my project at Britannia Ind. Ltd.


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COMPANY PROFILE

The story of one of India's favorite brands reads almost like a fairy tale. Once upon atime, in 1892 to be precise, a biscuit company was started in a nondescript house inCalcutta (now Kolkata) with an initial investment of Rs. 295. The company we all knowas Britannia today.

The beginnings might have been humble-the dreams were anything but. By 1910, withthe advent of electricity, Britannia mechanized its operations, and in 1921, it became thefirst company east of the Suez Canal to use imported gas ovens. Britannia's business wasflourishing. But, more importantly, Britannia was acquiring a reputation for quality andvalue. 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 armedforces.

As time moved on, the biscuit market continued to grow and Britannia grew along withit. In 1975, the Britannia Biscuit Company took over the distribution of biscuits fromParry's who till now distributed Britannia biscuits in India. In the subsequent public issueof 1978, Indian shareholding crossed 60%, firmly establishing the Indianness of the firm.The following year, Britannia Biscuit Company was re-christened Britannia IndustriesLimited (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, itcelebrated 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. In1999, the "Britannia Khao, World Cup Jao" promotion further fortified the affinityconsumers 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 approachto products and marketing: the Lagaan Match was voted India's most successfulpromotional activity of the year 2001 while the delicious Britannia 50-50 Maska-Chaskabecame India's most successful product launch. In 2002, Britannia's New BusinessDivision formed a joint venture with Fonterra, the world's second largest DairyCompany, 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 peggedBritannia India's 2nd Most Trusted Brand.


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Today, more than a century after those tentative first steps, Britannia's fairy tale is notonly going strong but blazing new standards, and that miniscule initial investment hasgrown by leaps and bounds to crores of rupees in wealth for Britannia's shareholders. Thecompany's offerings are spread across the spectrum with products ranging from thehealthy 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 billionpopulations and a strong management at the helm means Britannia will continue to dreambig on its path of innovation and quality. And millions of consumers will savour theresults, happily ever after.

The Origin of 'Eat Healthy Think Better'

Britannia -the 'biscuit' leader with a history-has withstood the tests of time. Part of thereason for its success has been its ability to resonate with the changes in consumer needs-needs that have varied significantly across its 100+ year epoch. With consumerdemocracy reaching new levels, the one common thread to emerge in recent times hasbeen the shift in lifestyles and a corresponding awareness of health. People areincreasingly becoming conscious of dietary care and its correlation to wellness andmatching the new pace to their lives with improved nutritional and dietary habits. Thisnew awareness has seen consumers seeking foods that complement their lifestyles whileoffering convenience, variety and economy, over and above health and nutrition.

Britannia saw the writing on the wall. Its "Swasth Khao Tan Man Jagao" (Eat Healthy,Think Better) re-position directly addressed this new trend by promising the new

generation a healthy and nutritious alternative - that was also delightful and tasty.

Thus, the new logo was born, encapsulating the core essence of Britannia - healthy,nutritious, and optimistic - and combining it with a delightful product range to offervariety and choice to consumers.


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Britannias Portfolio


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FMCG INDUSTRY

FMCG are products that have a quick shelf turnover, at relatively low cost and don'trequire a lot of thought, time and financial investment to purchase.Fast Moving is in opposition to consumer durables such as kitchen appliances that aregenerally replaced less than once a year.Three of the largest and best known examples of Fast Moving Consumer Goodscompanies are Nestl, Unilever and Procter & Gamble.The Indian FMCG sector is an important contributor to the country's GDP. It is the fourthlargest sector in the economy and is responsible for 5% of the total factory employmentin 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. Ruralmarkets account for 56% of the total domestic FMCG demand.

Fast Moving Consumer Goods (FMCG) goods are popularly named as consumerpackaged goods. Items in this category include all consumables (other thangroceries/pulses) people buy at regular intervals. The most common in the list are toiletsoaps, detergents, shampoos, toothpaste, shaving products, shoe polish, packagedfoodstuff, and household accessories and extends to certain electronic goods. These itemsare meant for daily of frequent consumption and have a high return. A major portion of the monthly budget of each household is reserved for FMCG products. The volume of money circulated in the economy against FMCG products is very high. Number of products the consumer use is very high. Competition in the FMCG sector is very highresulting in high pressure on margins.

FMCG companies maintain intense distribution network. Companies spend a largeportion of their budget on maintaining distribution networks. New entrants who wish tobring their products in the national level need to invest huge sums of money onpromoting brands. Manufacturing can be outsourced. A recent phenomenon in the sectorwas entry of multinationals and cheaper imports. Also the market is more pressurizedwith presence of local players in rural areas and state brands.


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BISCUIT INDUSTRY

Biscuit industry is the largest segment of the grain milling industry. India BiscuitsIndustry is the largest among all the food industries and has a turn over of aroundRs.3000 crores. India is known to be the second largest manufacturer of biscuits, the firstbeing USA. It is classified under two sectors: organized and unorganized. According tothe Federation of Biscuit Manufactures of India (FBMI), the biscuit industry in India inthe organized sector produces around 60% of the total production, the balance 40% iscontributed by the unorganized bakeries.

The production by organized players is estimated to be 1561, 000 tonnes, for the year2005, which means if we include the unorganized sector the total tonnage should be at

least 2,600,000. The industry consists of 3 large-scale manufacturers, around 50 mediumscale brands and 2500 small-scale units in the country. The unorganized sector isestimated to have approximately 30,000 small & tiny bakeries across the country.

The major brands are - Britannia, Parle, ITC, Priyagold, Cremica, Dukes, Anmol, Priya,etc besides various regional and state brands. Biscuit industry, which was reserved in thesmall-scale industry sector, was unreserved in 1997-98, based on the recommendations of the Abid Hussain Committee.

The annual production of biscuit in the organized sector continues to be predominantly inthe small and medium scale sector before and after de-reservation. Biscuit productionwitnessed an annual growth of 10% to 12%, up to 1999-00.

Bread and biscuits are the major part of the bakery industry and covers around 80 percentof the total bakery products in India. Biscuits stand at a higher value and production levelthan bread. This belongs to the unorganized sector of the bakery Industry and covers over70% of the total production.

India Biscuits Industry came into limelight and started gaining a sound status in thebakery industry in the later part of 20th century when the urbanized society called forready made food products at a tenable cost. Biscuits were assumed as sick-man's diet inearlier days. Now, it has become one of the most loved fast food products for every agegroup. Biscuits are easy to carry, tasty to eat, cholesterol free and reasonable at cost.States that have the larger intake of biscuits are Maharashtra, West Bengal, AndhraPradesh, Karnataka, and Uttar Pradesh. Maharashtra and West Bengal, the mostindustrially developed states, hold the maximum amount of consumption of biscuits.Even, the rural sector consumes around 55 percent of the biscuits in the bakery products.


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The total production of bakery products have risen from 5.19 lakh tonnes in 1975 to18.95 lakh tonnes in 1990. Biscuits contributes to over 33 percent of the total productionof bakery and above 79 percent of the biscuits are manufactured by the small scale sectorof bakery industry comprising both factory and non-factory units.

The production capacity of wafer biscuits is 60 MT and the cost is Rs.56,78,400 with amotive power of 25 K.W. Indian biscuit industry has occupied around 55-60 percent of the entire bakery production. Few years back, large scale bakery manufacturers likecadbury, nestle, and brooke bond tried to trade in the biscuit industry but couldn't hit themarket because of the local companies that produced only biscuits.

According to the biscuit manufacturers federation, the annual growth of overall biscuitindustry showed a decline of 3.5% in 2000-01, mainly due to 100 percent hike in centralexcise duty (from 8 % to 16%). Production in the year 2001-02 increased very marginallyby 2.75%, whereas in 2002-03 the growth was around 3%.

The Federation of Biscuit Manufacturers of India (FBMI) has confirmed a bright futureof India Biscuits Industry. According to FBMI, a steady growth of 15 percent per annumin the next 10 years will be achieved by the biscuit industry of India. Besides, the exportof biscuits will also surpass the target and hit the global market successfully.

Biscuit Category Annual Production inPercentageGlucose 44%Marie 13%Cream 10%Crackers 13%Milk 12%Others 8%


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COMPETITORS

Generally all organizations have competitors in the market. A particular organizationalways comprises with other same business and according to market share we clarify thebrand of product is giving more challenge to my product.


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Parle

In 1929 a small company by the name of Parle products emerged in British dominatedIndia. The intent was to spread joy and cheer to children and adults alike, all over thecountry with its sweets and candies. The company knew that it wouldnt be an easy task,but they decided to take the brave step. A small factory was set up in the suburbs of Mumbai, to manufacture sweets and toffees. A decade later it was upgraded tomanufacture biscuits as well. Since then, the Parle name has grown in all directions, woninternational fame and has been sweetening people's lives all over India and abroad.Apart from the factories in Mumbai and Bangalore, Parle also has factories inBahadurgarh in Haryana and Neemrana in Rajasthan, which are the largest biscuit andconfectionery plants in the country. Additionally, Parle Products also has 7manufacturing units and 51 manufacturing units on contract.

Priyagold

Surya Food & Agro Ltd. was incorporated in November 1992 and commenced itscommercial operations of manufacturing & selling of biscuits under brand Priyagold inOctober 1993. Over a period, they have established strong manufacturing capabilities andhave invested substantially in developing consumer preference for their products. Theirtrademarks / brands Haq Se Maango & Priyagold have emerged as powerful brandsin the FMCG sector. They have three plants located in Greater Noida, Lucknow & Surat.They also outsource some of our requirements to another plant located in Hyderabad.

ITC Sunfeast

In July 2003, ITC forayed into the Biscuits market with the Sunfeast range of Glucose,Marie and Cream Biscuits. Sunfeasts brand essence, "Spread the Smile" connoteshappiness, contentment, satisfaction and pleasure. The mascot Sunny reinforces theemotional aspects of the brand. In a span of 6 years Sunfeast has launched many newvarieties and has its presence in almost all types of biscuit categories.


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INTRODUCTION

Objectives of Project:

Analyze demand patterns and buying behavior at transit clusters.An important part of the marketing process is to understand why a customer orbuyer makes a purchase. Without such an understanding, businesses find it hard torespond to the customers needs and wants. Marketing theory traditionally splitsanalysis of buyer or customer behavior into two broad groups for analysis Consumer Buyers and Industrial Buyers

What brand, price, flavor, taste, etc. of biscuits sells most.The study of consumers helps firms and organizations improve their marketingstrategies by understanding issues such as how

The psychology of how consumers think, feel, reason, and select betweendifferent alternatives (e.g., brands, products).The psychology of how the consumer is influenced by his or her environment(e.g., culture, family, signs, media).The behavior of consumers while shopping or making other marketingdecisions.Limitations in consumer knowledge or information processing abilitiesinfluence decisions and marketing outcome.How consumer motivation and decision strategies differ between products that

differ in their level of importance or interest that they entail for the consumer.How marketers can adapt and improve their marketing campaigns andmarketing strategies to more effectively reach the consumer.

Collecting primary data and analyzing the same.Surveys collect data from a targeted group of people about their opinions,behavior or knowledge. This was done to identify customer requirements orpreferences. Retailers are the people who deal with consumers on a day-to-daybasis. They know what their consumers want. They know how to satisfy theircustomers needs.

With the changing face of the market, consumers n eeds are ever growing. Hence,it is essential to be aware of the changing preferences of the consumers. Theretailers know their customers best and so they can provide with the most apt andupdated information regarding consumer tastes and preferences.


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Recommendations to enhance sales at these transit points.Based on my findings from the survey with retailers, transit cluster shopkeepersand the consumers of biscuits, I will be required to recommend Britannia whatkind of biscuits must it keep at those selling point for maximum consumersatisfaction and to boost sales.Britannia must excel in all aspects quality, variety, pricing, promotion,availability, taste and value for money. Biscuits produced by Britannia are of unmatchable quality. Also the company hasa wide range of biscuits targeting all the classes, ages, etc. A biscuit by Britanniais easily affordable by a common man. Also it has to reach the common manthrough proper channels. Demand patterns vary from place to place, consumer to consumer. Thus it isimportant to be available to each and every consumer of the Britannia

Consumer Buying Behaviour

Understanding the buying behavior of the target market is the essential task of marketingmanagement under marketing concept. The consumer market consists of all theindividuals and households who buy or acquire good and services for personalconsumptions. The buying behavior tries to find out the answers for the questions, whobuys? How do they buy? Where do they buy? Do they buy?

FACTORS INFLUENCING CONSUMER BUYING BEHAVIORThere are four major factors that influence the buying behavior such as cultural factors,social factors, personal factors, and psychological factors.

BUYING DECISION PROCESSIt includes buying roles, types of buying and steps in buying process.

The study of the consumer preference not only focuses on how and why consumers makebuying decision, but also focuses on how and why consumers make choice of the goodsthey buy and their evaluation of these goods after use. So for success of any company or

product promotion it is very necessary to depart its concentration towards consumerpreferences.


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PURPOSE AND SCOPE OF THE PROJECT

The project attempts to understand the buyer decision making process, both individuallyand in groups. It studies characteristics of individual consumers such as demographics,and behavioral variables in an attempt to understand people's wants. It also tries to assessinfluences on the consumer from groups such as family, friends, reference groups, andsociety in general.

The project is restricted to the study of consumer behavior for biscuits only, produced byBritannia and other biscuits manufacturing companies.

Some of the areas that are considered are:1. Consumer recognition of a problem and the attempt to solve it by buying something.2. How consumers search for things that they need?3. How consumers evaluate the products that they buy?4. What is the impact on dissatisfaction on consumer purchases?5. How do consumers make purchase decisions?6. What kinds of advertising is the most effective?


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LIMITATIONS OF THE STUDY

My study involves collecting primary data and doing market research which can be of enormous value to an organization in gaining and/or maintaining its competitive edge.However, there are certain limitations are experienced by self.

1) BUDGETARY CONSTRAINTSGathering data requires a lot of commuting from place to place which sometimes meanscommuting between far away, which can be very expensive.

2) TIME CONSTRAINTSPrimary market survey may offer excellent insights, but it can be extraordinarily time-consuming. Time-consuming studies often produce results that are contradictory to thecurrent situation.

3) LINGUISTIC AND SEMANTIC CONSTRAINTSThere arises a barrier in communication as my data collection provides for interactionwith people from various background and beliefs. It must be made clear as to why data isbeing collected and the consent of participants must be obtained. In addition to this, thereare a number of guidelines, laid down by such organizations as the Market ResearchSociety, that, although not legally binding, encourage organizations to behave ethicallywhen dealing with members of the public.


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METHODOLOGY

1. PRIMARY DATA COLLECTIONPrimary data collection is necessary when a researcher cannot find the data needed insecondary sources. Some of the methods of primary data collection are

OBSERVATION

Field experimentThis method is generally used when the respondents are reluctant to part with theinformation due to various reasons. Here, the information is collected h m awitness or from a third party who are directly or indirectly related to the problemand possess sufficient knowledge.Advantage minimizes response biasDisadvantage limited to measuring behavior, time consuming

COMMUNICATION

a) Personal InteractionHere the investigator collects information personally from the respondents.Investigator meets them personally to collect information.Advantage permits detailed and in-depth questions and responses, minimizesnon-responseDisadvantage costly, interviewer bias, investigator bias,

b) Self-administered QuestionnairesIt is the most important and systematic method of collecting primary data,especially when the inquiry is quite extensive. It involves preparation of a list

of questions relevant to the inquiry.Advantage cost effective for large areas, minimizes interviewer bias,promotes accurate answersDisadvantage low response rates, unanswered questions, incorrect answers


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2. DATA REPRESENTATIONOnce the data is collected through primary data collection methods, it is presented inthe form of Reports, Graphs, Charts, and Pie Diagrams.

3. DATA ANALYSISThe gathered data is being analyzed using various mathematical and statistical tools.

Goal of an analysis:To explain cause-and-effect phenomenaTo relate research with real-world event

To predict/forecast the real-world phenomena based on researchFinding answers to a particular problemMaking conclusions about real-world event based on the problem

Data analysis is a process, within which several phases can be distinguished:Data cleaningInitial data analysis (assessment of data quality)Main data analysis (answer the original research question)Final data analysis (necessary additional analyses and report)


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RETAIL MARKET SURVEY

I was associated with Keshav Enterprises, Vasant kunj, a distributor of Britannia biscuits,for a week and a half. I travelled with the salespersons of the distributor to variousmarkets to study the consumer behavior.

I approached my survey by asking the retailers perception to the consumer behavior for biscuits, particularly Britannia.

The opinion of the retailers is of utmost importance since they directly deal with thetastes and preferences of the consumers. Thus they could share the insights to the biscuitmarket.

Statement of the Problem

To find the preference of the consumer for a biscuit based on the following points:1. Taste

Sweet v/s Salted

2. Value Trade-off

Price v/s Quality

3. Sales InfluencersEffect of Advertisements and Sales promotion schemes

4. What sells MostBrand v/s Product

5. Competition and market share for BritanniaLocal and other Major Players in the Market

Percentage of total market captured by Britannia

6. Health consciousnessBiscuits like Digestive, 5-Grain, etc., which include healthy ingredients

7. Price of biscuitsPsychological effect of the pricing


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8. Substitutes AvailableOther ready to eat snacks

9. Types of CustomersNature of the customer

Survey Details

Market Surveyed Type of CustomersNo. of Shops

Visited

South Motibagh Main Mkt Residents 12

Opposite Venkateshwar ClgAnd Motibagh

Students, Residents 25

ChattarpurSchool Kids,Low income households

21

Masoodpur Low income households 9

Vasant Vihar High income households 11

MohammadpurLow income households, small officesand laborers

20


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FINDINGS OF THE RETAIL MARKETSURVEY

1. Taste Preference

One of the parameters used to find out the behavior of consumers was Taste.This was understood by asking the shopkeepers the contribution of sweet and saltedbiscuits in the total sales for biscuits.

In this it was observed that people were more inclined towards biscuits that weresweet in taste.

Only 4% of the shops surveyed experienced higher sales for salted biscuits.

10% shops experienced an equal amount of sales for salted and sweet biscuits.And about 86% shopkeepers said that sweet biscuits were liked more by theircustomers.

Sweet 84Salt 4Equal 10

84

4 10

No. of Outlets

Sweet

Salt

Equal


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2. Value Trade-Off

Every market comprises of customers having a certain type of judging criteria, onesuch criterion for preferring a specific biscuit is the trade off between price andquality, i.e., price sensitivity.

The markets that I visited had customers driven by quality and were majorlyindifferent to the price at which the products are offered.

The rising quality consciousness among the middle and high income groups hasmade the quality and nutrition value of the product of utmost importance for theproducers.The focus of Britannia on adhering to strict quality standards has made it the mostpopular brand for biscuits and cakes in the market.

3. Sales influencers

Advertisements act as the major sales influencer for biscuits and cakes. The youthand children are attracted by the celebrity appeal created through brandendorsements by various youth icons, as they can connect to them and aspire to bethem.For example, Sachin Tendulkar, Rahul Dravid and many more players of the Inidancricket team endorsing for Britannia.

Families are majorly influenced by various schemes introduced for salespromotion, (example, family packs and discount offers) which prove to beeconomical and cost savers.

Other major factors which act as sales influencers are Age and Income of thecustomers.Ironically, high income groups who buy super-saver family packs end up savingmoney on the total transaction. Whereas low income groups buying small packspay more for the same quantity.


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4. What sells most?

People go for the Brand but develop a loyalty towards the product.This is evident from the very fact that Britannias GoodDay enjoys a huge market incookies segment but Britannias Tiger is overshadowed by Parles Parle -G inglucose biscuit segment.

Biscuits with highest market share:-

GoodDay (all types)MarieParle-GDigestiveBourbon5-GrainMonaco

Flavours with major market share:-

ButterCreamGlucoseChocolateOrange


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5. Competition and market share for Britannia

Britannia enjoys the largest market share in cakes and biscuits, capturingapproximately 70% of the market. Other players of the industry are

ParleITC SunfeastPriyagoldAnmolBikanerOther local brands

0%

10%

20%

30%

40%

50%

60%

70%

80%

Britannia Parle Sunfeast Others

Market Share


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6. Health Consciousness

One of the major factors which affect the buying behavior is Age.

As a person grows in Age his inclination towards a healthier product increases. He prefers a healthier lifestyle; the same is represented in peoples choice of biscuits.

During my survey I found that there is a growth in health consciousness among peoplereflected in their choice of biscuits. People were more driven by conscious about theirhealth than by flavor or brand.

Age Group Most Popular Biscuits

3-15 years Jim-Jam, Treat, Milk Bikis, Cream biscuits etc.

16-25 years Cakes, Little Hearts, Bourbon, GoodDay (chocochip/ choconut) etc.

25-45 years GoodDay, TimePass, 50-50, Cakes, Bourbon, PureMagic etc.

Above 45 years Digestive, Marie, NutriChoice, 5-Grain etc.

0

5

10

15

20

25

30

35

40

45

Health Consciousness Flavor Brand

My Findings


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7. Price of the Biscuit

Prices play an important role in making the customer choose a particular biscuit,major effect being the one of psychological pricing i.e., the round up prices.

As per the findings of the study, people are more willing to buy packs priced inmultiples of five, more so because of tender of change.

The tendency of the shopkeeper to give some other item (like gum or toffees) ratherthan change makes the customer go for round up prices.

8. Substitutes Available.

Other various substitutes available to the customers are:ChocolatesChipsHome made sweets and snacksNamkeen.

Thus Britannia faces competition not only with the various brands available in itssegment but also with all the products which act as substitutes of the biscuits.

9. Nature of the customer

People belonging to different backgrounds display different buying patterns in termsof price range.

Nature of Customers Price RangeStudents Rs. 10/- to Rs. 15/-Residents of Societies Rs. 15/- and above

Labourers Re. 1/- to Rs. 5/-Low Income households Re. 1/- to Rs. 20/-Office Cafeterias Rs. 5/- to Rs. 15/-


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QUESTIONNAIREName: ________________________________________________________

Occupation: ____________________________________________________Place: _________________________________________________________

1. What Age group do you belongBelow 1515-2526 40Above 40

2. Your monthly income lies inUnemployedBelow 50005000-1500015001-2500025001 40000Above 40000

3. Name 3 brands of biscuits that come to your mind.

4. Name 3 biscuits that come to your mind.

5. How much time do you spend waiting/in transit in a day?


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6. What brand of biscuits do you like?BritanniaParleSunfeast

PriyagoldBikanerOthers _________________________________________________

7. Which kind of biscuit do you prefer?SweetSaltySweet and saltyGlucoseCream filledDigestiveCookiesFlavored

o Chocolateo Orange, pineapple etco Elaichio Coconuto Cashew, walnut etc.o Butter

Others

8. Where do you buy biscuits from?General storesKirana storesDiscount stores (big bazaar, subhiksha, sabka bazaar etc.)Transit clusters (paan shops, tea shops etc.)

Other


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9. How frequently do you buy biscuits?MonthlyFortnightlyWeekly

More than once a weekDailyMore than once a day

10. What price range of biscuits do you buy?Re. 1 to Rs. 5Rs. 6 to Rs 10Rs. 11 to Rs. 15Rs. 16 and above

11. On an average, how much do you spend on biscuits monthly?


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13. How do you decide which biscuit to buy?PriceFlavorBrand

Number of biscuits in a packSales promotion schemes (discount coupons etc.)AvailabilityOther

14. How do you rate Britannia biscuits on the following (please tick)

Excellent Good Average PoorQualityVarietyPricingAdvertisementsAvailabilityTasteValue for money


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2. Income as a factor of consumer buying behavior

The distribution of monthly income was

nil

17%

below 513%

5-1528%

16-2529%

26-406%

above40

7%

Monthly Income (in Thousands)


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0

10

20

30

40

50

60

70

Britannia Parle Sunfeast Priyagold Others

N u m

b e r o f

R e s p o n

d e n t s

Brands in Consumers mind

3. Brand image

Britannia and Parle are the most popular brands in this age group.


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4. Positioning of the biscuits in the consumers mind

To study what biscuits are most liked by the consumers.

5. Transit/waiting time

There was a wide range of transit/waiting time.People with different purposes had different waiting times.

It ranges from 15 mins to 8-9 hours.

People going on long journeys had more than a day as their traveling time.

0

10

20

30

40

50

60

70

80

90

Monaco Goodday Parle-G Hide nSeek

50-50 Marie Bourbon Tiger

N u m

b e r

o f R e s p o n

d e n

t s

Biscuits in Consumer's Mind


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6. Brand preferences

Britannia

31%

Parle28%

Sunfeast24%

Priyagold12%

others5%


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Chocolate26%

Orange10%

Elaichi7%Cashew

28%

Butter29%

7. Flavor preferences

Flavored

0

5

10

15

20

25

Sweet Salty Sweet-Salty Glucose Creamfilled

Flavored

Flavor Preferences


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8. Place

Other purchase points include Army Canteens.

0

2

4

6

8

10

12

14

16

General Store Kirana Stores DiscountStores

Transitclusters

Others

Purchase Points


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9. Frequency

The frequency with which a consumer buys a pack of biscuit.

Monthly16%

Fortnightly11%

Weekly14%

More

thanonce aweek9%

Daily34%

More thanonce a day

16%

Purchase Frequency


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Re. 1 to Rs. 533%

Rs. 6 to Rs10

13%

Rs. 11 to Rs.

1534%

Above Rs. 15

20%

10. Size of the biscuit price that sells most

What price of biscuit sells the most in the selling points.


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0

20

40

60

80

100

120

Advertisement Newspaper Word of Mouth Billboards

11. Knowledge of a new biscuit- promotion strategies

How do consumers come to know about a new product in themarket is answered by the following chart.


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0

10

20

30

40

50

60

70

80

90

100

Price Flavor Brand Number of Biscuits

Schemesand prizes

Availability

12. Buying decision

A consumer makes the decision whether to buy a biscuit on thefollowing parameters.


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80

20

0 0

Excellent Good Average Poor

Number of Respondents

Quality

75

155 0



Variety

13. Britannia as a brand for consumers

Quality

Variety


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28

60

100



Pricing

70

10 15 5



Ads

Pricing

Advertisements


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90

8 2 0



Availability

88

102 0



Taste

Availability

Taste


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88

5 7 0



Value for money

Value for money


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SWOT ANALYSIS BRITANNIA

Unorganized bakeries. Rising input costs. ITC entry in biscuits. Priya Gold and Anmol

lower price offerings.

Rural markets. Cost saving from lowering of

excise duty on bakeryproducts.

Price hike competitors'brands

High overhead costs Competition from

Parle, Sunfeast, PriyaGold.

Established brand name. Widespread Distribution

Network. Wide Range products

covering all segments. Focus on rural markets. Superior technology like SAP. World-class factories.

Research and Developmentdepartment.

Strengths Weakness

ThreatsOpportunities


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CONCLUSION AND RECOMMENDATIONS

Britannia has maintained its market share through its variety of biscuits. This varietyhelps Britannia target every segment of the society. The demand pattern at transit clustersis different from the retail market since the consumer at both the points of selling are of different natures.

At transit clusters, Britannia does well with biscuits of smaller packs. Packs between theprice-range of Re.1 to Rs.5 perform very well. Also, GoodDay priced Rs.13 is quitepopular.

Chocolate flavored, glucose and cream filled biscuits sell fast at transit clusters where the

consumers are mostly children who are not that brand conscious. Hence, to attractchildren, Britannia can come up promotion schemes to boost sales.

Britannia is undoubtedly the market leader in the biscuits segment. But there are areas onwhich it can improve upon.

My recommendations to Britannia would be

Britannia must reach to the Transit Clusters through its proper chain of distributors.It is easier to track the retail market.But reaching each and every transit cluster becomes a tedious job, since they arepresent in every nook and corner of the city.While doing my survey I found that many shopkeepers faced the problem of not beingable to place the order for Britannia biscuits since no salespersons visited their shops.Hence they did not keep Britannia biscuits.

Round up prices.Prices play an important role in making the customer choose a particular biscuit,major effect being the one of psychological pricing i.e., the round up prices.As per the findings of the study, people are more willing to buy packs priced inmultiples of five, more so because of tender of change.The tendency of the shopkeeper to give some other item (like gum or toffees) ratherthan change makes the customer go for round up prices.People are hesitant in buying packs which are not priced in multiples of Rs.5.


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REFERENCES

BOOKS:Marketing Management by Philip KotlerMarketing Management, ICMR

NEWS PAPERS:The Economic Times

MAGAZINES:Business IndiaIndia Today4Ps Business and Marketing Marketing MastermindAdvertising Express

INTERNET WEBSITES:www.britannia.co.inwww.google.comwww.parleproducts.comwww.priyagold.com

devika - final report

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