Industry analysis

Biscuit industry had value growth of approx. 19% in 2013 and is expected to grow by a
CAGR of 10% by 2018.
The industry witnessed maximum growth in cookies segment (34%) followed by sandwich
biscuits (28%).CAGR of 16% in cookies and 14% in sandwich biscuits is expected over
the forecasted period
Growth in this industry can be attributed to the
following reasons:

Market share

Britannia

22%

35%

15%

Parle
Sunfeast

28%

Others

(*) Disposable income and willingness to

experiment is increasing
(*) Since more women are going out for work, the
demand for biscuits is increasing as a substitute
for traditional breakfast

Observations: All the brands are moving towards premium biscuits as they are expected to
perform better. Approx. 82% of biscuit sales are through small kirana shops and the modern retail
outlets only contribute 6-7% of sales.

Competitor analysis

Consumer preferences from primary research

Methodology: Online and Offline questionnaire
181 respondents across South India including 47 face to face interviews conducted in
Malls and Super Markets of Kozhikode city
Basis for our segmentation of the market were the three demographic variables namely
Gender, Age and their Average weekly expenditure on biscuits
It was observed that 96% of the respondents ate biscuits
Demographic variables of the respondents:
Gender

114

> RS 100
32

61,
34%

Male
120,
66%

RS 50- RS100

30

<12
years

Female

23
37

RS 25 - RS 50

12 to 19-30 30-50 >50

18
years years years
years

71

< RS 25

50

Age

50

100

Average weekly expenditure

Observations: Majority of the customers average weekly expenditure on biscuits is between Rs

25- Rs 100 .Those 23 customers with > Rs 100 as their average weekly expenditure on biscuits
can be treated as customers for ones premium product
Consumer preferences and their eating habits when it comes to biscuits/cookies:

* How often do you eat biscuits?

60

44

38

40

* Preferred time of consumption?

47

41

22

79

100
50

20

57
22

20

0
Daily once Daily twice Once in two
days

Weekly
once

*Where do you generally buy biscuits from?

150

While With tea /

traveling coffee /
milk

19

15

Bakeries

Others

Others

* Main consumers of biscuits in your family?

100

34

Evening
snack

129

150

113

100
50

Breakfast

Very rare

67

60
23

50
0

Kirana stores Super markets

Mother

Father

Children

Grandparents

Observations: The ideal target market would be the ones marked in Red. The ones in Green
can be an alternate option like where a product can be specially positioned as a travel snack. An
option of positioning biscuit as an alternative for breakfast might not be successful as seen from
our primary research

* Factors influencing the purchase of biscuits:

Factor

Brand

Price

Taste

Packaging

Availability in
different SKUs
(size of packets)

Health
concerns

Mean

3.92

3.56

4.48

3.52

3.40

3.84

Factor

Innovative
product

Advertisement

Brand
ambassador

Store
display

Retailer
suggestion

Family,
friends or
relatives

Mean

3.64

3.21

2.39

2.96

2.72

3.40

The above question was asked to the respondents to rate the following factors in 5 point Likert
scale with 1 being strongly disagree, 3 being neutral and 5 being strongly agree. (Detailed
report attached in appendix)
Observations: Numbers in green are the primary concerns to be addressed in the new product
with orange ones being the secondary concerns. We need not worry about the factors in red as
customers are either neutral or least likely to be influenced by them.
Need Gap Analysis:

Visibility/
Availability in
shops

(*) Consumers were asked to select

attributes that influenced purchase in
respective brands (Max 5, Min 0)

Brand
awareness
4
3.5
3
2.5
2
1.5
1
0.5
0

Value for money

Taste

(*) Helps in understanding how Sunfeast

fares in different attributes with its
competitors and to conduct Need Gap
analysis

Variety

(*) It clearly shows Britannia fares better

in most of the attributes than the rest with
Parle and Sunfeast closely following

Advertisements

Britannia

Sunfeast

Parle

Priya Gold

(*) Also an indication that me-too

strategy with Britannia cookies might
not be successful considering its high
competition in all attributes and brand
recall among customers

Annexure:
(*)Factors influencing the purchase of the biscuits:

Question

Strongly
disagree

Disagree

Neutral

Agree

Strongly
agree

Mean

Brand

30

86

51

3.92

Price

17

43

88

24

3.56

Taste

54

112

4.48

Packaging

13

63

74

24

3.52

Availability in
different
SKUs (size of
packets)

18

71

66

19

3.40

Health
concerns

13

42

59

60

3.84

Innovative
product

65

70

32

3.64

Advertisement

24

84

52

13

3.21

Brand
ambassador

35

62

67

12

2.39

Store display

17

39

69

46

10

2.96

Retailer
suggestion

24

46

74

30

2.72

Family,
friends
relatives

12

24

48

74

23

3.40

or

(*) Order of preference of brands in buying biscuits?

Brand

Britannia

113

49

13

ITC Sunfeast

28

78

62

13

Parle

31

51

91

Priya Gold

15

154

Total

181

181

181

181