BRITANNIA

NIKITA ASAWA 2008B2A7255H

INTRODUCTION
In 1892, a small biscuit company was started in an ordinary house in Calcutta with an initial investment of Rs 295. Today, we all know this company as BRITANNIA. By 1910, with the introduction of electricity, Britannia mechanized its operations, In 1975, they took over the distribution of biscuits from Parry's who till now distributed Britannia biscuits in India

 In 1997, the company unveiled its new corporate identity - "Eat Healthy, Think Better. In 1999, they used the slogan "Britannia Khao, World Cup Jao" for further promotion. Britannia strode into the 21st Century as one of India's biggest brands and the pre-eminent food brand of the country. .

BRITANNIA PRODUCTS
NutriChoice5 Grain Tiger Banana NutriChoice SugarOut NutriChoice Digestive Biscuits Treat Fruit Rolls New Britannia Milk Bikis

STRENGTHS
In a survey conducted by AC Nielsen ORGMarg, consumers voted brand 'Britannia' among the 'Top 10' most trusted brands across categories for the fifth successive year It was also rated as the second most trusted food brand in 2008 and first in 2007. It was rated as the seventh most trusted brand across all categories in 2008.

STRENGHTS
It is the only biscuit company to have removed trans-fat from all its recipes. Widely accepted and available and it is a nonseasonal food which is in demand thought-out the year It has doubled its advertising budget in the last 5 yrs.

WEAKNESS
Requires a high level of investment in terms of innovation and technology in which Britannia is stagnant Britannia Industries witnessed a loss in sales momentum for the third consecutive quarter (2005-06) as the company has been feeling the heat of growing competition Biscuits is the only thing Britannia is known for even though it deals with dairy products.

OPPORTUNITY
Demand for a health free product as people are more health conscious Improved standard of living Higher disposable income India is considered as the third largest producer of Biscuits after USA and China, the per capita consumption of biscuits in our country is only 2.1 Kg., compared to more than 10 kg in the USA, UK and West European countries

THREATS
Competitors coming up with similar products at a lower price since this commodity is very price sensitive Rapid increase in the cost of major inputs such as wheat flour, sugar, oil, packaging material, fuel, power, transportation, etc, has made a dent in the viability of the industry as it is an agro based industry.

 Commodity inflation continues to have a significant impact on input cost and this inflationary pressure has put industry profits under pressure. Completion form foreign companies Poor quality for lower prices

VALUE CHAIN ANALYSIS

INNOVATION
One major step they took to enhance quality was to remove 8500 tons on trans-fat from their biscuits, making them completely fat free and becoming the only company to have done that. They also fortified their biscuits with vitamins and micronutrients like iron, and soon 50% of their products were fortified. They invested in their segments of bread, rusk and cakes, and soon doubled their business in this category by recognizing that building brand and innovating were the key drivers of growth.

OPERATIONS
On the infrastructure front, Britannia added 200,000 tons of annual capacity, an increase of about 60%. It also devised a long-term distributed manufacturing strategy, put in place a continuous replenishment supply efficiency system, and strengthened its supply chain management as well. They invested over Rs 200 crore in capacity expansion.

OPERATIONS
They improved their manufacturing facilities to meet the growing demand. They also tied up with Prima Engineering Industries, a very reputed supplier of machines used for baking biscuits, to provide them with the latest technology for better quality biscuits.

OUTBOUND LOGISTICS AND DISTRIBUTION

They invested significantly in higher and better quality of human resources both at the front end and at the back end. They created separate teams for general sales, modern trade, institutions, and semi-urban and rural markets.

MARKETING AND SALES

They began by aggressively marketing their products as healthier alternatives in comparison to other biscuits. They invested heavily in advertising to promote the new identity of biscuits i.e. health foods and also made an attempt to increase trade marketing visibility. They marketed their products to the retailers and distributors to increase their loyalty towards them. They also changed their packaging by introducing smaller packages to attract the youth and travelers.

RESOURCE BASED VIEW

Value: Britannia came out with smaller pack formats and different SKUs to target the travelling segment. And also with the `Greetings' gift pack during Diwali last year to make the emotional connect both with individuals and institutions Market share: Britannia is the market leader in its industry and is among the fastest growing FMCG companies .

 Rare: By marketing itself as a healthier alternative, however, Britannia seeks to sharply differentiate itself from other brands -- and that move has paid off.. Very good distribution network: Products are sourced from several manufacturing locations spread across the country and reach millions of consumers through an efficient and widespread distribution chain..

 Immitatibility: Investments in people, brands and infrastructure, improved efficiencies and cost reduction, and new choices for consumers. Organization: Britannia Industries ltd follows the Strategic Business Unit structure. Britannia has three independent business units, Biscuits, Bakery and Dairy products

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