Marketing Management

Project

Submitted by:
10609147 Faisal Shah

10609186 Yugasha Gupta

10609130 Abhishek Kumar

10609182 Uday Prasad

10609172 Shantanu Rana

10609148 Gaurav Bhatt

 Table of Contents

Executive Summary

1. Company History

2. Industry Structure

3. Environment

4. Products

5. Price

6. Distribution Network

7. Promotion

8. Financial Analysis

9. Customer Survey Analysis

10 .Appendix

a. Sample Customer Questionnaire

b. Sample Dealer Questionnaire

c. Financial Statements

d. Bibliography
EXECUTIVE SUMMARY
After going thick on the things, now time is to make a complete picture. While making a
product a SKU (stock keeping unit) of the shop retailers think about the GMROI (gross
margin return on investment) and they promote the brand which provides them highest. They
expect return in the form of profit margin, company schemes, window display and reference
of the shop. Among these, company schemes make the difference and are the highest
sources of motivation after profit margin. Retailing demands a constant push from the
company.

Marketer needs to use advertising and brand building strategies to address the discerning
buyers and retail push to in different buyers. The manufacturer should understand consumer
behavior because retailers can’t help quality and price. It is only up to manufacturers to
deliver what consumer wants. I need to stress on it because 58% retailers said that it is
demand why they sell Britannia. 61% agree that at retail shop it is brand popularity, which
determine the purchase of biscuit.

There is a greater need to understand the retailer behavior. Considering them as a team,
working for the company may help them to be attached to the company. There should be a
feeling of belonging to the company in inner of the retailers. This can be done by setting
values club for retailers so that they may exchange views with the company and help in
understanding consumer behavior.
 CONSUMER BUYING BEHAVIOR
Understanding 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.

iv. 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.

III. STAGES IN BUYING DECISION PROCESS

Here are five stages in buying decision process namely problem recognition search,
evaluation of alternatives purchase decision and past purchase behavior.

NEED RECOGNITION

The buying process starts with the buyer’s recognition of a problem of need. The buyer
senses a difference between his actual state and desired state.

INFORMATION SEARCH

ii. There are different sources from where a consumer can gather information like
personal sources commercial sources, experimental sources.

EVALUATION OF ALTERNATIVES

After gathering information about different products the customer will be in a fuss as to
choose which product among the mainly alternatives consumer usually evaluate the
alternatives on traditional basis, on the basis of utility function etc. from the many alternative
consumers at last choose the best one for him.

PURCHASE DECISION

A consumer who decides to execute purchase intention will be making up to five purchase
decisions.

POST PURCHASE BEHAVIOR

After purchasing the product and services the consumer will experience some level of
satisfaction or dissatisfaction with the product and services that will influence subsequent
behavior. If consumer is satisfied he may show the probability of buying the product the next
time, satisfied customer will say good thing about the product, proving the statement that
"satisfied customer is the best advertisement.” A dissatisfied customer may take some action
against it. They may try to reduce the dissonance by abandoning returning the product.

Understanding consumer needs and buying process is the foundation of any company. By
understanding how buyers go through problem recognition, information search evaluation of
alternatives, the purchase decision and post purchase behavior marketers can pick up many
clues as to how to meet buyers need.
COMPANY HISTORY:
1892 • The Genesis - Britannia established with an investment of Rs. 295 in
Kolkata

1910 • Advent of electricity sees operations mechanised

1921 • Imported machinery introduced; Britannia becomes the first company

East of the Suez to use gas ovens

1939 - 44 • Sales rise exponentially to Rs.16,27,202 in 1939

• During 1944 sales ramp up by more than eight times to reach Rs.1.36
crore

1975 • Britannia Biscuit Company takes over biscuit distribution from Parry's

1978 • Public issue - Indian shareholding crosses 60%

1979 • Re-christened Britannia Industries Ltd. (BIL)

1983 • Sales cross Rs.100 crore

1989 • The Executive Office relocated to Bangalore

1992 • BIL celebrates its Platinum Jubilee

1993 • Wadia Group acquires stake in ABIL, UK and becomes an equal

partner with Groupe Danone in BIL

1994 • Volumes cross 1,00,000 tons of biscuits

1997 • Re-birth - new corporate identity 'Eat Healthy, Think Better' leads to
new mission: 'Make every third Indian a Britannia consumer'

• BIL enters the dairy products market

1999 • "Britannia Khao World Cup Jao" - a major success! Profit up by 37%

2000 • Forbes Global Ranking - Britannia among Top 300 small companies

2001 • BIL ranked one of India's biggest brands

• No.1 food brand of the country

• Britannia Lagaan Match: India's most successful promotional activity

of the year

• Maska Chaska: India's most successful FMCG launch

2002 • BIL launches joint venture with Fonterra, the world's second largest
dairy company

• Britannia New Zealand Foods Pvt. Ltd. is born

• Rated as 'One amongst the Top 200 Small Companies of the World' by
Forbes Global

• Economic Times ranks BIL India's 2nd Most Trusted Brand

• Pure Magic -Winner of the Worldstar, Asiastar and Indiastar award for
packaging

2003 • 'Treat Duet'- most successful launch of the year

• Britannia Khao World Cup Jao rocks the consumer lives yet again

2004 • Britannia accorded the status of being a 'Superbrand'

• Volumes cross 3,00,000 tons of biscuits

• Good Day adds a new variant - Choconut - in its range

2005 • Re-birth of Tiger - 'Swasth Khao, Tiger Ban Jao' becomes the popular
chant!

• Britannia launched 'Greetings' range of premium assorted gift packs

• The new plant in Uttaranchal, commissioned ahead of schedule.

• The launch of yet another exciting snacking option - Britannia 50-50

Pepper Chakkar

2006 • Britannia re-launched NutriChoice Hi-Fibre Digestive biscuits in an

international large sized biscuit pack.

• Britannia acquires 51% stake in Bangalore-based bakery foods retailer

Daily Bread.

2007 • Britannia industries formed a joint venture with the Khimji Ramdas
Group and acquired a 70 percent beneficial stake in the Dubai-based
Strategic Foods International Co. LLC and 65.4% in the Oman-based Al Sallan
Food Industries Co. SAOG.

• Britannia NutriChoice SugarOut range introduced - 1st of its kind of

biscuits to be be launched in India with "No Added Sugar" (Variants -
Chocolate Cream, Orange Cream, and Litetime)
2008 • Britannia NutriChoice 5 Grain biscuits launched - Biscuits with the
goodness of 5 health Cereals, and sweetened with Natural honey. Britannia
Nutrichoice promised consumers "Bhook Bhagao, Kuch Healthy Khao"

• Britannia launched Iron fortified 'Tiger Banana' biscuits, 'Good Day

Classic Cookies', Low Fat Dahi and renovated 'MarieGold'.

2009 • Britannia NutriChoice Nature Spice Crackers launched - Your favorite

Cream Crackers, now made even more exciting with the addition of "Sabut"
Ajwain and Jeera spices.

• Britannia takes full control of Daily Bread.

• Britannia-Fonterra joint venture dairy business restructured. Britannia

acquires entire stake of Fonterra BNZF name changed to Britannia Dairy Pvt.
Ltd.

• Recognizing the changing global trends & health benefits of removing

transfats, Britannia is the first Bakery brand in India to remove transfats from
its products.

• Wadia Group acquired stake holdings from Group Danone and

becomes the single largest shareholder in BIL.

2010 • Britannia NutriChoice launches a New Year pack - the Health Starter
Kit. Created for everyone who makes New Year resolutions and doesnt follow
through. The Health Starter Kit contains 1 pack each of NutriChoice Hi-Fiber
Digestive, NutriChoice 5 Grain, NutriChoice Nature Spice Cracker bundled
together with a Fit Sip Sipper and a fitness chart. All this only for Rs 100.
BOARD OF DIRECTORS:

Name Designation

Mr. Nusli Neville Wadia Chairman

Ms. Vinita Bali Managing Director

Mr. A.K.Hirjee Director

Dr. Ajai Puri Director

Mr. Avijit Deb Director

Mr. Jeh N Wadia Director

Mr. Keki Dadiseth Director

Mr. Nasser Munjee Director

Mr. Ness Nusli Wadia Director

Mr. Nimesh N Kampani Director

Mr. Pratap Khanna Director

Mr. S.S.Kelkar Director

Dr. Vijay L. Kelkar Director

INDUSTRY STRUCTURE:
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. In fact, the countries which led this
seafaring charge, such as those in Western Europe, are the ones where biscuits are most
popular even today. Biscotti is said to have been a favorite of Christopher Columbus who
discovered America!

Making good biscuits is quite an art, and history bears testimony to that. During the 17th
and 18th Centuries in Europe, baking was a carefully controlled profession, managed
through a series of 'guilds' or professional associations. To become a baker, one had to
complete years of apprenticeship - working through the ranks of apprentice, journeyman,
and finally master baker. Not only this, the amount and quality of biscuits baked were also
carefully monitored.

The English, Scotch and Dutch immigrants originally brought the first cookies to the United
States and they were called teacakes. They were often flavored 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".

As technology improved during the Industrial Revolution in the 19th century, the price of
sugar and flour dropped. Chemical leavening agents, such as baking soda, became available
and a profusion of cookie recipes occurred. This led to the development of manufactured
cookies.

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. 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 other forms 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.

The Indian biscuits' market is estimated to be 1.1 million tonnes per annum and valued at
over Rs 50 billion. India is known to be the second largest manufacturer of biscuits, the first
being USA. It is classified under two sectors: organized and unorganized. The present
biscuits-bakery sector in India looks like a battlefront. The battle being led by stalwarts like
Britannia and Parle with close competition from other companies like ITC, Nutrine, HLL
Kissan, Kwality and even international brands like Kellogs, Nestle, Sara Lee and United
Biscuits.

The biscuit segment has developed with large markets of mass consumption covering over
90% of the overall potential market. The country comprises of huge unorganized sector.
Biscuits market on an average grew at 8% per annum in the last five years. The rural
penetration of the branded biscuits segment is also significant. Towns with populations of
less than a lakh contribute significantly to the industry's turnover, with some estimates
placing it at 40%. However, rural markets largely consume lower-priced varieties, and it is
here that branded biscuits meet with stiff competition from the unorganized sector.

The unorganized sector in the biscuits segment does exert pressure on the pricing policies of
the organized players. But only up to a point since the penetration of brands in this business
even in the rural areas is fairly significant. Therefore, the value for only the branded
business segment is more indicative of the industry's competitive pressures.

Three domestic players, Britannia, Parle and ITC, have thus far dominated the market—with
an average annual growth of 10-12%. According to the Federation of Biscuit Manufacturers
of India (FBMI), 60% of the total market is organized and the rest—unorganized.

As per a research conducted in 2009 though ITC was able to increase its market share by a
significant percent, Britannia still is the leader with highest volume of sales and value
market share. Researcher says that Parle has been Britannia’s toughest competitor. The
biscuit market in India still has lot of room for expansion from the existing players and the
new entrants.
ENVIRONMENT:
Major Players in the Industry

• BRITANNIA INDUSTRIES LTD.(BIL)

• PARLE

• ITC Ltd.

• Surya Foods & Agro Ltd. (PRIYA GOLD)

Biscuits: Major Players & Market Share

Nutrine Kwality Others

4% 4% 4%

SmithKline
Consumer
8%
Britannia
40%
Bakeman's
10%

Parle
30%

Category wise break up of Biscuits:

World Per-Capita Consumption (in Kgs)

Biscuits Productions (in Tonnes)

PRODUCTS:

GLUCOSE BISCUITS

• TIGER

• CHOTA TIGER

• TIGER CHAI BISKOOT

• TIGER ROSEMILK CREAM

• TIGER BRITA ENERGY POPS

• TIGER CHOCLATE CREAM

• TIGER ORANGE CREAM

• TIGER COCONUT ENERGY

• TIGER ELAICHI CREAM

• TIGER KESAR CREAM

• TIGER BANANA
CREAM BISCUITS

• TREAT CHOCO GELO

• TREAT DELICIOUS DATES

• TREAT APPLE PUNCH

• TREAT FLAVOURED TANGY ORANGE

• TREAT STRAWBERRY FLAVOURED SURPRISE

• BOURBORN TREAT

• TREAT ELAICHI FON

• TREAT JIM JAM

• TREAT MANGO MISCHIET

• TREAT MASTI ORANGE

• TREAT PINEAPPLE PRANK

NUTRI CHOICE BISCUITS

• NUTRI CHOICE 5GRAINS

• NUTRI CHOICE DIGESTIVE

• NUTRI CHOICE CREAM CRACKER

• NUTRI CHOICE THIN ARROWROOT

• NUTIR CHOICE SUGAROUT CHOCLATE

• NUTRI CHOICE SUGAROUT LITETIME

• NUTRI CHOICE SUGAR OUT ORANGE CREAM

MARIE BISCUITS

• MARIE GOLD

• VITA MARIE GOLD

MILK BISCUITS

• MILK BIKIS

• MILK BIKIS CREAM

GOOD DAY BISCUITS

• GOOD DAY CHOCONUT

• GOOD DAY BUTTER SCOTCH

• GOOD DAY HONEY & RAISIN

• GOOD DAY CHOCLATE CHIP

• GOOD DAY RICH BUTTER COOKIES

• GOOD DAY RICH CASHEW COOKIES

• GOOD DAY RICH PISTA BADAM

50-50 BISCUITS

• 50-50

• 50-50 MASKA CHASKA

• PEPPER CHAKKAR

LITTLE HEARTS
• LITTLE HEARTS CLASSIC

PURE MAGIC

• PURE MAGIC

Products Punch Lines

50-50 “Very Very Tasty Tasty”

Good Day “Ho gaya re Good-Day”

Littile Heart “Direct Dil se”

Marie Gold “Tea Time biscuit”

Milk Bikis “Eating Milk”

Neutri Choice “Swasth khao Tan Man jagao”

Time pass “Perfect partner for Time pass moments”

Tiger “Eat Healthy Think better”

Treat “Lovable devils”

PRICE:
Pricing is one of the most important elements of the marketing mix, as it is the only mix,
which generates a turnover for the organisation. The remaining 3p’s are the variable cost for
the organisation. It costs to produce and design a product; it costs to distribute a product
and costs to promote it. Price must support these elements of the mix. Pricing a product too
high or too low could mean a loss of sales for the organisation. Pricing should take into
account the factors like fixed and variable costs, competition, company objectives, proposed
positioning strategies, target group and willingness to pay.

GOODDAY CHOCO CHIPS 72 x 75 Gm. (Rs15.)

GOODDAY CASHEW 80 x 75 gm. (Rs12.)

GOODDAY CASHEW FAMILY 48 x 250 Gm. (Rs20.)

GOOD DAY BUTTER 80 x 75 gm. (Rs10.)

GOODDAY BUTTER FAMILY 48 x 250 Gm. (Rs18.)

GOODDAY PISTA 80 x 75 gm. (Rs12)

GOODDAY PISTA FAMILY 48 x 250 Gm. (Rs 12)

The pricing strategies are based much on what objectives the company has set itself to
achieve and Britannia has adopted a number of pricing strategies:

Competition pricing: They have set a price which is competitive when compared with
competitors.

Product Line Pricing: Priced different products within the same product range at different
price points. The better the feature and the benefit given the greater the consumer will pay.
This form of price discrimination assists the company in maximising turnover and profits.

Bundle Pricing: The organisation bundles a group of products at a reduced price when
providing family packs.

Value Pricing: They have also used value based pricing.

Britannia has worked a lot on fixing the price of its biscuits. It has packaged its products in
various sizes and at various prices. Its biscuits ranges from Rs 10 to Rs 20.

Cost Sheet Rs
Cost of Production 1.00

Company’s Profit 1.50

Packaging 0.50

Promotion 2.00

Transportation 1.00

Selling & Distribution 1.75

Cost to Distributor 7.75

Distributors profit 0.75

Cost to Wholesaler 8.50

Wholesaler Profit 0.50

Retailer Cost 9.00

Retailer Profit 1.00

MRP 10.00

DISTRIBUTION NETWORK:
Though figures vary widely from product to product, roughly a fifth of the production cost of
an item goes on getting it to the customer. The term 'place' deals with various methods of
transporting and storing goods and then making them available to the customer.

Getting the right product to the right place at the right time involves the distribution system.
Distribution is the process of moving goods and services to the places where they are
wanted.

Channel Levels: The channel of distribution used by Britannia is:

Intensive Distribution: As biscuits need to reach the consumer at their nearest locations this
type of distribution channel is used. This type of distribution helps when for products that
are categorized by low involvement of the customer and where customer looks for location
convenience.
PROMOTION:
Promotion includes all of the techniques that a company uses to communicate with other
individuals and organisations. An important avenue for communication is advertising.
Advertising is referred to as 'above the line' promotion. Other types of promotion such as
special offers and discounts are referred to as being 'below the line'. Advertising
communicates the desirability, emotional benefits and exclusive features of the product.

Advertising:
Britannia works in close partnership to promote its biscuits with retailers. Promotion costs
are shared with retailers. The more retailers sell - the more Britannia is able to help them.

Britannia launches products that offer the company good returns, supporting these through
brand building and leveraging on its nationwide supply chain. Brand building is an integral
part of Britannia’s marketing philosophy with continued promotions for its various brands
creating loyal customers in the process.

Good Day, "Richness is only one functional facet of Good Day. But there is also a large
emotional facet — that of spreading happiness.This became the plank on which Good Day
began to be advertised. Also with traditional notions of health changing, rich foods are not
necessarily looked at as being unhealthy. "Good Day is full of nuts and is rich but it is also
good for health. So, they created the Swasth kao, tan man jagao (Eat healthy, energise body
and mind) campaign."

Sales promotion:
“Eat Britannia, Go for World Cup" was the theme adopted in 1999 .People bought the
biscuit packs and searched for the lucky scratch for flying to England to see world Cup
Cricket match.The sales bounced 37% high on account of this strategy. The scheme came
alive again during the world Cup Match in 2002-2003 in South Africa.

" Lagaan - the super hit movie " brought fame to Britannia Biscuits also as 40000 buyers of
Britannia Biscuit packs were invited to see and a small lucky group to play the game with the
movie Stars of Lagan. What a novel way to promote a product - a perception in correct
proportion indeed !!

Now, recently promotional strategy are "Jodi Banao" Offer & winning ideas of the “
Monmatano Britannia pran bhorano sharodiya” contest like create a special flower
arrangement for dashmi. Get all the women in your street together and make a huge,
elaborate face of durga with flowers.

Publicity:
Britannia brand is advertised through hoardings on cricket grounds, on highways, through
image building exercises like donations etc.
FINANCIAL ANALYSIS:
Annual Performance 2009-10 
For the year ended 31st March 2010, the Company achieved a sales growth of 17.5% on an
expanded base arising from 27.5% growth in the previous year. Net Profit of the Company increased
77.5 % to Rs 1,910 Mn compared with Rs 1,076 Mn in 2008-09. Operating Margin increased by 307
basis points to 7.5%.

The Company witnessed all round growth in key categories with Biscuits recording sales of Rs.
23,299 Mn. Bread, Cake and Rusk business crossed the Rs. 2,700 Mn mark during 2009-10. This
business has doubled in two years.
In an intensely competitive biscuit environment, all Power Brands of the Company recorded double
digit growth, with Tiger and Good Day growing in excess of 20%. The Company’s innovation forays
have successfully addressed new benefit clusters and NutriChoice Digestive has claimed its position
in the health and vitality space. The Company continues to maintain its leadership edge in 6 out of 7
key product segments, the only exception being Glucose.

The business continued to face inflationary pressure in key raw materials such as wheat flour,
refined palm oil, skimmed milk powder and other dairy products, as well as energy costs. These were
more than offset on the cost side through operational and procurement efficiencies, productivity
improvements, cost reduction programs and on the revenue side through improved product mix and
higher realization, aided by strong consumer off take.

Exceptional items for the year include Rs.130.5 Mn towards amortization of VRS costs. Earnings per
Share are Rs.80 compared with Rs.45.1 last year.
 SIGNIFICANT RATIOS
    2009-10 2008-09

  Measures of Investment

  Return on equity Profit after tax % 26.1 18.3

Shareholders’ funds
 

 
  Book value per share Shareholders' funds Rs. 306.6 246.6
Number of equity shares
 

 
  Dividend cover Earnings per share times 3.8 2.6
Dividend (plus tax) per share
 

 
  Measures of Performance
 

 
  Profit margin Profit before tax & exceptional item % 9.2 5.7
Net Sales + Other Income
 
 
  Debtors turnover Gross Sales times 56.5 81.0
Debtors + Bills receivable
 

 
  Stock turnover Gross Sales times 8.7 10.8
Stock
 

 
  Measures of Financial Status
 

 
  Debt ratio Borrowed capital % 14.5 0.8
Shareholders’ funds
 

 
  Current ratio Current assets times 1.6 1.2
Current liabilities
 

 
  Tax ratio Tax provision % 17.8 9.1
Profit before tax
 
       
 

CUSTOMER ANALYSIS:
Results of the survey of various class of respondent conducted by us shows that the biscuit
market industry in the urban sector of India is broadly classified into 4 major categories.
Responses indicate that Britannia covers the maximum portion of the Pie chart indicating its
market share to be 38 percent.

Parle G the second largest share holder with 31 percentages is catering to diverse
palettes of rural as well as urban India.

ITC,s Sunfeast trails the share tally with a market share of 21 percent.
Others category constitutes Biscuit industries that have very small percentage of market
share. Industries like Priya Gold , Duke , Anmol etc comprise of only 10 percent of the urban
market.

Estimated related share of various brands of the biscuit (urban) industry in

India.

Age wise consumption pattern.

Findings
Out of the 4 respondents whose age were below 17 yrs , 75 percentage of respondents
opted Flavour as their highest priority.
In the age category of 17 to 22 , the respondents opted Flavour were 60
percent of the total.Rest 40 percent opted nutrition as their best alternative.

People in the age group of 22 to 30 considered Nutrition (45%) as their best choice.
In the age segment of 32 and above, 71.4% of the respondents considered Nutrition as their
best alternative.A mix trend of Ingradients and flavour was seen in this category as equal
percentages (14.3%) of respondents went

In response to the market survey of respondents following observations were recorded.

Top Three Britannia Products

Tiger 22 % share

Treat 19.4% share

Good Day 19.4% share

Besides top three products mentioned above 50-50 holds 13.9 percent.
Milk Bikkis and Time Pass another very favourate products of Britannia Basket of goddies
hold 8.3 percent each.Further followed by Nutri Choice (5.6) and Greetings (2.8) percent.

The Graph shows the percentage share of various products of

Britannia .
 The Product Mix data found from the consumer survey indicates that there is a
healthy consumption of Glucose (43.2%) utilized by Consumer, whereas Salty Biscuits like
Crack-Jack and Monaco holds second healthy percentage of 32.4%. Chocolate having 8.1%
among total biscuits for Parle.

Products Percentage

Glucose 43.2%

Milk 5.4%

Cream 2.7%

Butter 5.4%

Chocolate 8.1%

Protein 2.7%

Salty 32.4%
APPENDIX:
Consumer’s Questionnaire

1. Do you eat biscuits?

Yes No

2. What type of biscuits you normally prefer?

Branded Bakery product

3. How often do you eat biscuits?

• Once in a month • Once in a fortnight

• Once in a week • Alternate days • Everyday

4. Please tick your likely tastes?

• Sweet • Salty

• Mix of sweet and salty • Others

5. Rank the buying factors (Plz tick any one of them)?

• Price • Brand name

6. Please tick the brand you normally prefer to buy?

• Britannia • Parle G

• ITC (Sun feast) • Others

7. On the basis of the below mentioned categories please tick your likely choices?

• Sweet • Salty

• Others

8. Please rate the attributes of the various biscuits give below

On a scale of 1 to 5. (1 being the Least Important and 5 being the Most Important).

Attributes Britannia Parle G ITC (Sun feast)

Crispness

Size

Nutrition value

Ingredients

Freshness

Colour

Flavors

9. If Britannia is not available in the shop will you look for it in the next

Shop?

• Yes • No
10. If the retailer gives you another brand of biscuits instead of Britannia, Will you buy?

• Yes • No

11. I like Britannia because (tick any one)

It keeps me healthy and fit

It makes me fell strong

It satisfies my hunger

It makes me feel happy

It gives me a feeling of being funky and trendy

It makes me feel energetic

It makes me think better

It is the Healthiest Breakfast I can have

It is very convenient to have

Any other (please specify) -------------------------------------------------

12. Please tick the Britannia Biscuit you like most?

Britannia Tiger Britannia 50-50 Britannia Nutri Choice

Britannia Milk Bikis Britannia Treat Britannia Time Pass

Britannia Good Day Britannia Greetings Britannia Marie Gold

12. Which TV commercial of Britannia appeals you most?

PLEASE FILL SOMETHING ABOUT YOURSELF

Name ____________________________________________________

Age Group (yrs): Sex: M/F

(below 17 yrs)

(17 - 22)

(22 – 30)

(30 and above)

House Hold income level:

(12000 – 15000) pm

(15000 – 25000) pm

(25000 – above) pm

Occupation___________________________________________

Thank You For Your Co-operation : -

Retailers Survey

A survey was undertaken of the retailers in the New Delhi and nearby regions,
primarily to find out their perceptions and reactions to the four preferred brands
of biscuits. They are :

• Britannia

• Parle G

• ITC Sunfeast

The sample size taken was 20

The findings of the research have been:

• Most of the retailers had stocked all the above 3 brands and they were
accompanied by POP and POS promotions provided by the companies .

• As to which brand was stocked the most, 55% stored Britannia, 25% stored
Parle , and 20% stored ITC and Priya gold.When asked to rate the visibility of
the three brands ,they rated Britannia the best.

• On an average, 25 to 30 packs of Britannia and 15 to 25 packs of Parle were

sold in a day. Britannia and Parle had the maximum credit period. In terms of
delivery system the retailers rated ITC as the best .Both Britannia and Parle
were rated Fair by the retailers. Priya gold leaded the run in the category of
Maximum credit period of the brand amongst the retailers. Britannia was rated
as the Most Aggressive selling brand by the retailers .

• The brand offering the best margin was the Priyagold brand (10%) While the
rest offered (5%) to the retailers.

• The distributor replenished stocks once a week

Criteria for selection of the brand by the consumers

Lower Income Group Price Sensitive

Middle income group Packet Size and Price sensitive

Higher Income Group Brand sensitive.

Age group that purchases the most

1) children, females (25 to30)

2) males—senior citizen(45 to 55)

Packet size sold max—60 to 70 gms of rs 10. or the family packs

Retailer Questionnaire

The survey is conducted on the retailers in Delhi in context of the perception to the major
brands.

 Britannia
  Parle

 Sunfeast

1. What all brands of biscuits do you store?

• Britannia • Parle

• Sunfeast • Any other (Please

Specify______________________ )

2. Which of these brands sell the most (tick any one)?

• Britannia • Parle

• Sunfeast • Any other (Please

Specify______________________ )

3. Which of these brands do you offer the maximum visibility?

• Britannia • Parle

• Sunfeast • Any other

4. As per the brands the packets sold per day? Please tick

0-20 20-40 40-60 60+

Britannia

Parle

Sunfeast

Others

5. Please rate the delivery systems of the various brands?

Very Effective Moderate Less Not Effective

Effective Effective

Britannia

Parle
 Sunfeast

Others

6. Which brand allows you the maximum credit period?

• Britannia • Parle

• Sunfeast • Any other

7. Does Britannia has the most aggressive marketing strategies?

Strongly Disagree Neither agree Agree Strongly agree

disagree nor disagree

8. Which of the brands provide the highest sales incentives?

• Britannia • Parle

• Sunfeast • Any other

9. Which of the flavors of biscuits are demanded the most?

• Glucose • Cream

• Chocolate • Salted

• Others

10. Which packet size sells the most?

Single Pack Double Pack Money saver

Britannia

Parle

Sunfeast

11. The age group that purchases the most?

(________________________ ____________ __________

__)
12. Which is the most important criteria for the choice of selection by the consumers?

• Price • Packet size

• Brand • Any other

Financial Statements

Balance sheet Rs Crores

  Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06

Sources of funds

Owner's fund

Equity share capital 23.89 23.89 23.89 23.89 23.89

Share application money - - - - -

Preference share capital - - - - -

Reserves & surplus 800.65 731.92 590.93 525.20 419.63

Loan funds

Secured loans 2.20 1.94 1.53 1.62 6.14

Unsecured loans 22.97 104.16 3.25 7.74 -

Total 849.70 861.91 619.60 558.45 449.66

Uses of funds

Fixed assets

Gross block 511.50 453.18 392.12 315.37 250.35

  Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06

Less : revaluation reserve - - - - -

Less : accumulated depreciation 233.67 212.19 193.75 174.81 154.39

Net block 277.84 240.99 198.37 140.56 95.95

Capital work-in-progress 6.02 9.69 16.03 11.08 31.70

Investments 423.10 380.83 320.05 359.86 330.08

Net current assets

Current assets, loans & advances 553.66 577.48 382.61 349.10 278.07

Less : current liabilities & provisions 437.55 370.31 323.03 318.22 320.37

Total net current assets 116.11 207.17 59.58 30.88 -42.30

Total 849.70 861.91 619.60 558.45 449.66

Notes:

Book value of unquoted investments 423.07 380.81 352.55 392.33 228.56

Market value of quoted investments 2.15 2.93 2.12 2.88 2.02

Contingent liabilities 162.96 169.55 102.63 67.24 61.24

Number of equity sharesoutstanding

238.90 238.90 238.90 238.90 238.90
(Lacs)
Profit & Loss account ------------------- in Rs. Cr. -------------------
of Britannia Industries
Mar '06 Mar '07 Mar '08 Mar '09 Mar '10
12 mths 12 mths 12 mths 12 mths 12 mths
Income
Sales Turnover 1,615.45 1,817.92 2,317.11 2,617.66 3,142.89
Excise Duty 27.88 104.58 117.79 29.80 30.51
Net Sales 1,587.57 1,713.34 2,199.32 2,587.86 3,112.38
Other Income 53.93 22.28 21.56 20.12 31.38
Stock Adjustments -9.72 12.29 34.21 -17.05 19.44
Total Income 1,631.78 1,747.91 2,255.09 2,590.93 3,163.20
Expenditure
Raw Materials 889.74 1,020.94 1,438.79 1,546.74 1,936.66
Power & Fuel Cost 14.07 22.70 24.13 22.78 21.47
Employee Cost 71.64 73.07 76.71 90.53 96.02
Other Manufacturing Expenses 190.32 139.71 188.17 222.18 281.37
Selling and Admin Expenses 191.02 233.91 327.95 382.26 499.69
Miscellaneous Expenses 37.12 34.34 49.09 74.00 72.45
Preoperative Exp Capitalised 0.00 0.00 0.00 0.00 0.00
Total Expenses 1,393.91 1,524.67 2,104.84 2,338.49 2,907.66
Mar '05 Mar '06 Mar '07 Mar '08 Mar '09
12 mths 12 mths 12 mths 12 mths 12 mths
Operating Profit 183.94 200.96 128.69 232.32 224.16
PBDIT 237.87 223.24 150.25 252.44 255.54
Interest 2.10 5.09 8.90 9.73 16.01
PBDT 235.77 218.15 141.35 242.71 239.53
Depreciation 18.97 21.72 25.27 29.08 33.46
Other Written Off 0.00 0.00 0.00 0.00 0.00
Profit Before Tax 216.80 196.43 116.08 213.63 206.07
Extra-ordinary items -8.99 4.28 2.32 18.64 26.42
PBT (Post Extra-ord Items) 207.81 200.71 118.40 232.27 232.49
Tax 57.95 54.29 10.76 41.26 52.12
Reported Net Profit 148.77 146.43 107.65 191.00 180.40
Total Value Addition 504.17 503.73 666.05 791.74 970.99
Preference Dividend 0.00 0.00 0.00 0.00 0.00
Equity Dividend 33.45 35.84 35.84 43.00 95.56
Corporate Dividend Tax 4.69 5.03 6.09 7.31 16.24
Per share data (annualised)
Shares in issue (lakhs) 238.90 238.90 238.90 238.90 238.90
Earning Per Share (Rs) 62.27 61.29 45.06 79.95 75.51
Equity Dividend (%) 140.00 150.00 150.00 180.00 400.00
BIBLIOGRAPHY
 BOOKS

 AUTHOR PHILIP KOTLER

 MAGAZINE

 AUTHOR MURTHY E.N.

 INTERNET

 www.britannia.co.in

 www.google.co.in