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1PGCBM-22 - PBM Case Study 1
Prof. Dr. Sanjay Patro
Product and Brand Management
SMS ID Name CenterGr.
No.
2224047 Satish Mohan HyderabadBegumpet 38
2224051 Srikanth Kalakonda HyderabadBegumpet 38
2224058 Siddhartha Pillutla Hyderabad - Begumpet
38
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- Founded in 1892 with an initial investment of Rs. 295
- In 1918, Gupta Brothers partnered with C H Holmes- In 1921, first company in the east to use imported gas ovens
- During World War II, supplied large quantities of biscuits to armed forces
- In 1975, took over biscuits distribution from Parrys
- In 1978, subsequent to public issue, Indian shareholding crossed 60%- In 1979, name changed to Britannia Industries Ltd.
- In 1983, crossed the Rs. 100 crore mark
- In 1997, unveiled its corporate identity "Eat Healthy, Think Better"
In October 2009, as a big step in this mission, it initiated the setting up the
Britannia Nutrition Foundation
First food company in India to become a Zero Trans Fat company
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To dominate the food and beverage market in India through aprofitable range of Tasty yet Healthy products by making
every Indian a Britannia consumer. We want to be part of ourconsumer- at home out of home a natural part of his life.
To dominate the food and beverage market in India with a
distinctive range of Tasty Yet Healthy Britannia brands.
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Analyze the Snacks market
Device a Strategy
Provide a Roadmap
Key Questions to be addressed
Is the Market Big enough?
What is the feasibility to sustain in this space
What are the types of snacks that are both tasty and healthy
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0
2000
4000
6000
8000
10000
12000
14000
2002 - 03 2006 - 07 2010 - 11 2014 - 15 *
7700
8800
11000
13200
Rs. Billion
Source: Ministry of Food Processing Industries , India
* - Projected Figure
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Preference to eat Ready to Eat foods
Increasing spending on Snacks that are Healthy
Foods manufactured by Branded companies perceived
Healthier
Per capita Food spending to increase by 56.5%
Packaged Food Industry is close to $21.7 Billion / Rs. 1085
Billion in 2012
Projected to reach $26 Billion / Rs. 1302 Billion by 2015
MARKET IS BIG ENOUGH AND GROWING
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1085
9915
Current Market
Branded & Packaged
Un-branded
124
93
66
61
51
Top 5 Categories
Biscuits Refined Oil Packaged Tea
Non-refined Oil Salty Snacks
Rs. Billion
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PGCBM-22 - PBM Case Study 1
Mainly Unorganized
Very Few Branded Players
Branded players are coming with Indianised versions of Westernsnacks
Indian Snacks market valued at $ 3 Billion / Rs. 150 Billion
Branded Snacks comprise of $ 1.34 Billion / Rs. 67 Billion
Growing rapidly at 15%20% Growth in unorganized sector is only 7%8%
GROWING AND FEASIBLE TO SUSTAIN
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PGCBM-22 - PBM Case Study 1
Rs. Billion
16.32
16.51
15.89
1.06 1.22
Market Shared - Branded Snacks
ChipsExtruded
Other Savoury
Nuts
Popcorn
47.99
48.56
46.72
3.13 3.59
Market Share - Types of Snacks
Chips
Extruded
Other Savoury
Nuts
Popcorn
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PGCBM-22 - PBM Case Study 1
CHIPS
Potato Chips is 86% of the entire category of snacks
Dominated by PepsiCo with Frito-Lay
Haldirams and Future Group recent entries into this market
EXTRUDED
Mainly Corn based
Dominated by PepsiCo with Kurkure
SAVOURY
Indian Sev snacks
Dominated by Haldirams
NUTS
Small marketHaldirams the only Branded player
POPCORN
Small marketCongra Foods the only Branded players
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PGCBM-22 - PBM Case Study 1
58%
13%
8%
3%7%
11%
Chips / Crisps
Lays Bingo! Uncle Chipps
Haldiram's Private Label Others
58%
16%
10%
5% 8%5%
Savoury
Haldiram's Lehar Garden
Bikanervala Private Label Others
Haldirams is the only leading player in Savoury
Frito-Lay is the only leading player in Chips/Crisps
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Help people enjoy lifethrough healthy snackingMake enjoyable food, healthy & accessible to all people, any time,
anywhere -everyday
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To capture 20%ready to eat food category within next 2 year
and focus on generating growth through increasing the base and
frequency of consumption.
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STRENGTHS:
Fulfills one of the basic requirement - food
Widely accepted in all generations .
Provide good instant remedy for hunger in theform of readymade food.
Preserve the non seasonal food and makes itavailable throughout the year.
Perceived as Health-focused Brand .
WEAKNESSES:
Higher price of food products.
Technology requires high investment.
Regular usage of processed food may cause alterationin metabolic activities and health issues.
OPPORTUNITIES:
Economic growth of India.
Improved living standards .
Increase disposable income and busy lifestyle.
Need for Good nutrition quality of foods
Inflow of foreign reserves and funds from the govt.
Other avenues like ready to eat foods.
THREATS:
Competition from local and foreign companies.
Quality good for most products in the market
Lack of advanced technology.
Diversification low compared to competition
BIL
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Affordable Delight Health and Taste
Any Time, Any Where --on-the-go consumption
Indulgent Delight
Morphing of Categories
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Britannia Cakes - HUGE SuccessDiary Products - Mediocre Success Dominated by AMUL
Gulf CountriesGood Success due to Huge Indian Population
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PRODUCT:
Customer wants the Snacks to be healthy
The Snacks should also be tasty
Snacks should be Indianised to fit the spicy andtangy preference of the customer
Snacks should preferably look very Western
Brand differentiation should be health focus
PRICE:
Indian customer is price sensitive
S/He is ready to pay higher for healthy products but,should be tasty
Price differentiation if market is new
PLACE:
The target market should be Rural and Sub-urbanand Urban
Availability in Malls, Supermarkets, local storeSize of package to facilitate accessibility and Ease
Distribution channel should be very strong likeITC or PepsiCo
Sales force could be used to market door-to-doorjust like Eureka Forbes
PROMOTION:
Marketing should be done as a Healthy product
Reach the customer via advertisement on TV,Press, Radio
Sales force can be used for initial door-to-doorpromotion
Introduction of the brand best suited in rainy /winter /festive season
Market
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BIL will need to increase its footprint in food products that can be part of every
meal category of every consumer, especially in Main Meal and AnytimeAnywhere category
In between meals at home
Anytime Anywhere
Meal Accompaniment
Main Meal
Focus on Traditional Indian snacksCrispsand Nutsrather than Chips
Most important, continue focusing on its key products-line - Biscuits, Cakes and
Dairy which are Tasty and Healthy
In Main Meal category, it has little or no presence. It should focus on this marketand produce many Ready-to-Eat curries, sweets and snacks which are part of
an Indian Meal
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BIL should focus on Indian taste, market tasty snacks anddifferentiate with their motto Eat Healthy, Think Better
Companies like Haldirams, Parle burnt their fingers by
targeting the Chips market dominated by Lays
BIL should differentiate by making Indian snacks - Crisps and
Nuts market them as healthier
Continue to Focus on removing trans fats from its products.
Target health entries and specialized products
Fortificationof majority of its products
Fortified products should be made accessible and affordable
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