ASSIGNMENT # 1

OF
RURAL MARKETING

SUBMITTED BY - SUBMITTED TO -
AKHLESH KUMAR Ms. SAVITA MAM
RR1903A54 LSB, LPU
Company Profile

Britannia was incorporated in 1918 as Britannia Biscuits Co LTD in Calcutta. In 1924, Pea
Freon UK acquired a controlling stake, which later passed on to the Associated Biscuits
International (ABI) and UK based company. During the 50’s and 60’s, Britannia expanded
operations to Mumbai, Delhi and Chennai. In 1989, J M Pillai, a Singapore based NRI businessman
along with the Group DANONE acquired Asian operations of Nabisco, thus acquiring controlling
stake in Britannia. Later, Group DANONE and Nusli Wadia took over Pillai’s holdings.

Evolution of Britannia:
1892 - A humble genesis was made to manufacture biscuits in a small house in Central Calcutta,
with an investment of Rs.295.

1897 - The business was acquired by Gupta brothers who moved operations to Dum in Calcutta
under the name of V.S. Brothers.

1918 - Mr. C. H. Holmes, an English business man, partnered with Gupta Brothers. Britannia was
incorporated on the 21st of March 1918 as a public limited company under the Indian Companies
Act VII of 1913.

1924 - New factories were established in Mumbai and Calcutta. Britannia became a subsidiary of
Peek, Freon & Company Limited, a leading biscuit company in UK.

1997 - ‘Eat Healthy, Think Better’ became the new corporate mantra. Britannia entered the dairy
business. ‘Tiger’ biscuits were launched. ‘Jim Jam’ and ‘Checkers’ were launched.

2002 - Britannia formed a joint venture with Fonterra, the world’s second largest dairy company and
Britannia New Zealand Foods Private Limited was born.

2005 - Brand Tiger’s re-birth was marked by the slogan ‘Swasth Khao” Tiger Ban Jao’, which
became a popular chant. Britannia launched ‘Greetings’ a range of assorted gift packs. Britannia
‘50-50 Pepper Chakkar’ was launched.

2007 - In a survey conducted by AC Nielsen ORG-Marg and published in the Economic Times,
Britannia was rated the No.1 MOST TRUSTED FOOD BRAND. It also ranked as No.1 Brand in
Metros across all categories.
2008 - Britannia launched Iron fortified ‘Tiger’ biscuits, ‘Good Day Classic Cookies’, Low Fat Dahi
and renovated ‘Marie Gold’.

CHARACTERISTICS OF RURAL BUYERS INFLUENCE THE

PURCHASE OF BRITANNIA -
POSM (Point of Sales Material)
The point of sales material generally has three elements, i.e.

1. Temporary type

2. Semi-Permanent type

3. Permanent type

The semi- permanent type of point of sales material has an expiry life of about 6-8 weeks at
the outlets. These highlight the presence of Britannia and Britannia brands in the outlet. The
third type of point of sales material has an expiry life of at least one year at the outlets.

Elements of Point of Sales Material

Temporary Type Semi-Permanent Type Permanent Type

Sticker
Paper Flange
Poster
Wobblers
Danglers
Streamer
Elements of temporary visibility such as sticker, Paper flange, Poster, Wobblers are pre-
gummed and thus can be stuck on the retail and wholesale shops at appropriate locations.
The Point Of Sales Material such as Dangler and Streamer are hanging type and are hung at
appropriate locations in the outlets.

Madhurification -
Madhurification is a term used in terms of point of sales material. It generally refers to the
use of certain material which helps in the beautification of the shops.

The elements of madhurification include shelf kit which includes shelf strips and backing
sheet. It also includes Banners and Torans.

Importance of Madhurification -
1. Demarcates Category
2. Highlights our Products
3. Brand Britannia Visibility
Britannia was the first ever biscuit company to use Madhurification.

Qualitative Changes –
Taste is the base to know that what customer/consumers would like to purchase because if
the quality and the taste is good or better than the other biscuit than the consumer will
switch over on the good one.
In middle of the Project Company make some quality (taste) changes in their products on
the basis of the suggestion, which is given by the promoters. Company made some
qualitative and quantitative changes like in TIGER GLUCOUSE (low-price small pack).
Company increases the number of biscuits.

Marketing Strategy –
The marketing strategies for any company are not about a fixed concept. Rather it is full of new
challenges every day, and the companies must respond to it very positively.
The following strategies are basically adopted by Britannia in order to capture a good market
share.

 A strong quality of the product and customer satisfaction

  A growing relationship with customer and customer retention

 Focus on competitors activity

 A growing emphasis on global thinking and local marketing planning

 A growing emphasis on global thinking and local marketing planning

 Promotional Strategy

The strategy of Britannia

The company’s policy is customer satisfaction with less price as well as quality. Target
maximum customer and sale of maximum volume. The company wants to reach the product
in every segment of customer. They also have targeted to urban, rural, city town and
villages area of a market. High promotion for selling the product and achieve maximum
market share. The company wants to increase the profitability by selling of maximum
quantity. The company is facing high competition so the profit margin is low but high
turnover. The company’s major competitors are PARLE, SUNFEAST ANMOL and PRIYA
GOLD; Britannia volume crossed one lakh ton biscuit in 1994

SWOT Analysis -
 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 year
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)
Nature of Rural Markets
The nature of transactions between rural and urban markets can be categorized as -
Weakness
 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
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
 Rural Sellers-
Urban Buyers

Rural Sellers- Urban Sellers-

Rural Buyers Rural Buyers

CONSUMER BUYING BEHAVIOUR

Understanding the buying behavior of the target market is the essential task of marketing
management under marketing concept.

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.

 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,.

 Social Factors: A consumer behavior is also influenced by social factors such as the
consumer reference group family and social roles and status.

 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.
 PURCHASE PROCESS OF BRITANNIA
Buying Role - The buying role could be classified into four parts. These are initiator, influencer,
decider and buyer.

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.

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

 Information search

 Evaluation of alternatives.

 Purchase decision

 Post purchase behavior

By understanding of these Company can pick up many clues as to how to meet buyers need.

PROMOTION:

Promotion includes all of the techniques that a company uses to communicate with other
individuals and organizations.

• 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.

• 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.

• Publicity:

Britannia brand is advertised through hoardings on cricket grounds, on highways, through

image building exercises like donations etc.

Conclusion of Rural Area:

The rural India that has lot of money with it definitely offers a great potential for the
companies where the chances of outnumbering the urban areas in all aspects are very high.
But only those companies would survive at these places and win over the rural consumers
who can spend time and money on understanding the needs of them and come up with
innovative ideas.

The company should also strive to give more focus to the rural market in order to make it a
market leader. This can happen only with the firm commitment of the top management and
extension of full support to the marketing personnel by each and every department of the
organization.
BIBLIOGRAPHY
Books -

# Marketing Management by Philip Kotler

# Advertising and Sales Promotion by S.H.H. Kazmi & Satish K. Batra

Websites

# www.britannia.co.in

# http://www.naukrihub.com/india/fmcg/top-companies/

# http://www.ibmabiscuits.in/industry-statistics.html

# http://foodbizdaily.com/articles/32688-news-biscuit-industry-in-india-an-overview.aspx