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Chapter 1
Introduction
INTRODUCTION
MARKETING :
In earlier times, marketers could understand consumers
through the daily experience of selling to them. Marketing involves an
exchange transaction between the buyer and seller. In other words, it
is a set of activities to direct and facilitate the flow of goods and
services from the original producer to final consumer in the process of
distribution.
Perhaps the basic change in the marketing thinking is the
paradigm shift from perceiving a sale to creating a customer .
Marketing in part has been largely transacted oriented; today it is
more relationship oriented. In addition to designing the best
marketing mix to make a sale , there is growing emphasis on winning
and keeping customers. Good customers are always an asset which,
when well managed and served, will return a handsome lifetime
income stream to the company. In the intensely competitive market
place, the company s loyalty through continually satisfying their needs
in a superior way.
According to Philip Kotler. Marketing can be defined as a
social and managerial process by which individuals and groups obtain
what they need and want through creating, offering and exchanging
products of values with others .
SIDVIN SCHOOL OF BUSINESS, BANGLORE
A study on Effectiveness of Brand strategy of Britannia Biscuits
CONSUMER
The term customer is typically used to refer to someone who
regularly purchases a particular store or company. Thus, a person
who shops at FOOD-WORLD or who uses Pepsodent tooth is viewed
as a customer of these firms.
The traditional view points have been to define consumers strictly
in terms of economic goods and services. This position holds that
consumers are potential purchasers of products and services offered
sale. Here our primary attention will be directed toward ultimate
consumers, those individuals, who purchase for the purchase of
individual or household consumption. And thus, this view has been
broadened over time so that at least some scholars now do not
consider a monetary exchange essential to the definition of consumer.
CONSUMER MARKET & BUYER BEHAVIOUR :
The aim of marketing is to meet and satisfy target customers
needs and wants. But getting to know your customers is never a
simple job. Customers may state their needs and wants but act
otherwise. They may not be in touch with their deeper motivations.
They may respond to influences that change their mind at the last
minute.
SIDVIN SCHOOL OF BUSINESS, BANGLORE
A study on Effectiveness of Brand strategy of Britannia Biscuits
BRAND :
Branding has been around for centuries as a means to
distinguish the goods of one producer from those of another. In fact,
the word brand is derived from the Old Norse word brandr, which
means "to burn," as brands were and still are the means by which
owners of livestock mark their animals to identify them. According to
the American Marketing Association (AMA), a brand is a "name, term,
sign, symbol, or design, or a combination of them, intended to identify
the goods and services of one seller or group of sellers and to
differentiate them from those of competition."
Thus, the key to creating a brand, according to the AMA
definition, is to be able to choose a name, logo, symbol, package
design, or other attribute that identifies a product and distinguishes it
from others. These different components of a brand that identify and
differentiate it can be called brand elements. Brand elements come in
many different forms. For example, consider the variety of brand name
strategies that exist. In some cases, the company name is essentially
used for all products (e.g., as with General Electric and Hewlett-
Packard). In other cases, manufacturers assign individual brand
names to new products that are unrelated to the company name (e.g.,
as with Procter & Gamble and their Tide, Pampers, Iams, and Pantene
product brands).
Definition :
An identifying symbol, words, or mark that distinguishes a product or
company from its competitors. Usually brands are registered
(trademarked) with a regulatory authority and so cannot be used
freely by other parties. For many products and companies, branding is
an essential part of marketing.
SIDVIN SCHOOL OF BUSINESS, BANGLORE
A study on Effectiveness of Brand strategy of Britannia Biscuits
Branding:
Definition
Entire process involved in creating a unique name and image for a
product (good or service) in the consumers' mind, through advertising
campaigns with a consistent theme. Branding aims to establish a
significant and differentiated presence in the market that attracts and
retains loyal customers.
Brand awareness :
Brand awareness is a marketing concept that refers to a consumer
knowing of a brand's existence; at aggregate (brand) level it refers to
the proportion of consumers who know of the brand.
Brand equity :
Brand equity refers to the marketing effects or outcomes that accrue to
a product with its brand name compared with those that would accrue
if the same product did not have the brand name [1][2][3][4]. And, at the
root of these marketing effects is consumers' knowledge. In other
words, consumers' knowledge about a brand makes
manufacturers/advertisers respond differently or adopt appropriately
adept measures for the marketing of the brand
SIDVIN SCHOOL OF BUSINESS, BANGLORE
A study on Effectiveness of Brand strategy of Britannia Biscuits
Brand Strategy :
A plan that employs a unique set of design tools -logo, palette,
typefaces, formats,
images, and language -created for an organization and applied to all
its communication tools: annual report, letterhead, business cards,
packaging, .
Brand Awareness :
Brand awareness consists of brand recognition and brand recall
performance. Brand recognition relates to consumers ability to
confirm prior exposure to the brand when given the brand as a cue.
In other words, brand recognition requires that consumers can
correctly discriminate the brand as having been previously seen or
heard. For example when consumers go to the store, is it the case
that they will be able to recognize the brand as one to which they have
already been exposed. In other words brand recall requires that
consumers correctly generate the brand from memory when given a
relevant cue. For example, recall of Kellogg's Corn Flakes will depend
on consumers ability to retrieve the brand when they think of the
cereal category.
SIDVIN SCHOOL OF BUSINESS, BANGLORE
A study on Effectiveness of Brand strategy of Britannia Biscuits
Brand Image :
A positive brand image is created by marketing programs that link
strong, favorable and unique associations to the brand in memory.
The definition of customer-based brand equity does not distinguish
between the source of brand associations and the manner in which
they are formed; all that matters is the resulting favorability, strength
and uniqueness of brand associations. This realization has important
implications for building brand equity. Besides marketer-controlled
sources of information brand associations can also be created in a
variety of other ways: by direct experience; from information
communicated about the brand from the firm or other commercial or
non partisan sources.
OPERATIONAL DEFINITIONS OF THE CONCEPTS :
Brand: A brand is a name, term, symbol, design, or other feature that
identifies one seller s good or service as distinct from those of other
sellers.
Brand Name: A brand name is that part of a brand that can be
spoken, including letters, words, and numbers; a brand name is often
a product s only distinguishing characteristic
Brand Loyalty: Brand loyalty is a customer s favorable attitude
toward a specific brand, which affects the likelihood of consistent
purchase of this brand when the need arises for a product in this
product category.
SIDVIN SCHOOL OF BUSINESS, BANGLORE
A study on Effectiveness of Brand strategy of Britannia Biscuits
Industry Profile
Fast Moving Consumer Goods
FMCG Industry :
FMCG are products that have a quick shelf turnover, at relatively low
cost and don't require a lot of thought, time and financial investment
to purchase
SL.
NO.
Companies
1. Hindustan Unilever Ltd.
2. ITC (Indian Tobacco Company)
3. Nestlé India
4. GCMMF (AMUL)
5. Dabur India
6. Asian Paints (India)
7. Cadbury India
8. Britannia Industries
9. Procter & Gamble Hygiene and Health Care
10. Marico Industries
SIDVIN SCHOOL OF BUSINESS, BANGLORE
A study on Effectiveness of Brand strategy of Britannia Biscuits
Industry Watch
Total: 1.3 Million Tonne (RS 45 Billion)
Organized Sector ( 60 %) Unorganized Sector (40%)
-Parle tops the list in terms of volume
Britannia is the numero uno in value terms
.
The annual turnover of the organized sector of the biscuit
manufacturers is Rs. 80 billion in 2007.
.
In terms of volume biscuit production by the organized segment is
estimated at 1.30 million tonnes. In the organized sector, the
industry is dominated by Britannia and Parle, which account for
70 per cent of the industry's volumes. Britannia s market share
stands at Rs 27 billion. While Parle derives a large portion of its
revenues from low-priced biscuits. Parle-G and Britannia derive a
fairly large share of their revenues from the medium-and premium
varieties. In fact, Britannia's market share in the medium and
premium varieties is significantly higher. Other organized players
include domestic players like Bakeman s, Champion, Kwality, Priya
and MNC s like SmithKline Consumer, Kelloggs, Sara, Heinz,
Excelsia (Nestle) and United Biscuits.
.
The annual production of biscuit in the organized sector continues
to be predominantly in the small and medium sale sector before
and after de-reservation. The annual production was around 7.4
SIDVIN SCHOOL OF BUSINESS, BANGLORE
A study on Effectiveness of Brand strategy of Britannia Biscuits
Lakh tonnes in 1997-98. In the next ten years, biscuit production
witnessed an annual growth of 10% to 12%, up to 2007-08.
.
The annual Growth showed a decline of 3.5% in 2000-01, mainly
due to 100% hike in Central Excise Duty (from 9% to 16 %).
Production in the year 2001-02 increased very marginally by 2.75%
where in 2002-03 the growth is around 3%.Thereafter the annual
growth increased to over 8 %.
.
The Federation's estimate for the year 2007-2008 indicates a
growth of approximately 8% to 9%.
.
However the average utilization of installed capacity by biscuit
manufacturers in the country has been a dismal 60% over the last
decade up to 2001-02. The average utilization of installed capacity
after 2005-2006 has been over 85%.
.
Though de-reservation resulted in a few MNCs, i.e. Sara Lee,
Kellogs, Glaxo SmithKline Beecham, Heinz etc entering the biscuit
industry in India, most of them, with the exception of SmithKline
Beecham (Horlicks Biscuits), have ceased production in the
country.
.
On the other hand, import of biscuits, specially in the high price
segment has started from 1998-99, but however, the quantum of
imports has not so far increased alarmingly and has remained at
around 3.75% of the consumption of biscuits in the country.
Exports of biscuits from India have been to the extent of 7.5% of
the total production. Exports are expected to grow further in the
year 2007-08 and beyond.
.
Biscuit is a hygienically packaged nutritious snack food available
at very competitive prices, volumes, and different tastes. According
to the National Council of Applied Economic Research (NCAER)
Study, biscuit is predominantly consumed by people from the lower
strata of society, particularly children in both rural and urban
areas with an average monthly income of Rs. 750.00.
.
Biscuits can be broadly categorized into the following segments:
SIDVIN SCHOOL OF BUSINESS, BANGLORE
A study on Effectiveness of Brand strategy of Britannia Biscuits
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.
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SIDVIN SCHOOL OF BUSINESS, BANGLORE
A study on Effectiveness of Brand strategy of Britannia Biscuits
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 wor
king
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.
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SIDVIN SCHOOL OF BUSINESS, BANGLORE
A study on Effectiveness of Brand strategy of Britannia Biscuits
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.
Biscuit making process
MIXING: This is a process where all ingredients are put together in
right proportion for dough formation. These ingredients are then fed
into Mixers where mixing is done and dough is prepared for
moulding/cutting .Major ingredients are flour, fat, sugar and others
as per the product one would like to have.
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SIDVIN SCHOOL OF BUSINESS, BANGLORE
A study on Effectiveness of Brand strategy of Britannia Biscuits
PACKING: These biscuit are then stacked and fed into packing
machine for packing Different packing material are available for
packing of these biscuit in different packs slug packs , pouch pack or
family packs etc. These packs are then put into secondary packaging
like cartons to be transported to retailers.
Chapter - 2
Company Profile
COMPANY PROFILE
Production
Center
Authorized
Wholesalers Retailers
Basic Strategies :
.
New product development
.
New market development
SIDVIN SCHOOL OF BUSINESS, BANGLORE
A study on Effectiveness of Brand strategy of Britannia Biscuits
.
Outdoor promotion
.
Rural thrust
.
Cost management
Quality Policy :
.
Customer Satisfaction
.
Total quality management
· Continuous up gradation of technology
· Improvement in processes
· Focus to meet emerging needs of the customers
· Mutually dependent lasting relationship with co-packers,
associates and suppliers.
.
Environment responsibility
.
Development of human resources
.
Improving skills and knowledge
· Generating motivation to excel
· Installing a sense of pride
· Commitment towards quality
Quality Objectives :
.
Reduction in customer complaints
.
To start documentation of market returns dealer wise
.
To empower the workmen on individual work area to ensure that
only quality product are passed on the next page of production.
.
Continuous training for the development of human resources.
.
To minimize the accident level.
As part of the growth strategy, the company always try to build
on the values of brand "Britannia" by aggressively pursuing tasty yet
SIDVIN SCHOOL OF BUSINESS, BANGLORE
A study on Effectiveness of Brand strategy of Britannia Biscuits
healthy offerings of mass appeal and also launching a host of
affordable products, which would help rejuvenate the mother brand
and drive category consumption.
GLOBAL PARTNERS :
The Wadia Group of India along with Groupe Danone of France,
are equal shareholders in ABIL, UK which is a major shareholder in
Britannia Industries Limited. GROUPE DANONE is an International
FMCG Major specializing in Fresh Dairy Products, Bottled Water and
Biscuits/Cereals. One of the World leaders in the food industry, these
are some of the laurels it possesses:
COMPETITORS :
Generally all organizations have competitors in the market. A
particular organization always comprises with other same business
and according to market share we clarify the brand of product is
giving more challenge to my product.
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.
SIDVIN SCHOOL OF BUSINESS, BANGLORE
A study on Effectiveness of Brand strategy of Britannia Biscuits
PRODUCT PROFILE
SWOT ANALYSIS
STRENGTHS WEAKNESS
· Established brand
name.
· Widespread
Distribution
Network.
· Wide Range
products covering
all segments.
· Focus on rural
markets.
· Superior technology
e.g. SAP.
· World-class
factories.
· Research and
Development
department.
· High overhead costs
vis a vis
competition from
Parle, Priya Gold.
Opportunities S-O Strategies W-O Strategies
· Rural markets. · Differentiate brand
according to
· Distribution thrust
into interiors.
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SIDVIN SCHOOL OF BUSINESS, BANGLORE
A study on Effectiveness of Brand strategy of Britannia Biscuits
CHAPTER-3
CONCLUSION
CONCLUSION
Opportunity is always knocking, goes a splinter thought of the
popular aphorism. The trick is to open the door every time it knocks.
It clearly indicates that the price increase of 100-gram Parle-G glucose
biscuits is a very good opportunity for Britannia to achieve its
objective of making the company s Tiger glucose biscuit brands the
number one in the glucose biscuit segment. Though the 50-paisa
price increase of the 60-year-old 100-gram Parle-G brand seems to be
a major price change, it has been found to be very significant for the
just 7-year-old Britannia Tiger brand. The research of the company
show that the 50-paisa price increase of 100-gram Parle-G brand has
really added an appreciable percentage of the glucose biscuit
consumers to Britannia s 100 gram Tiger brand customer segment
and also a notable percentage is likely to be added to it. The major
reason that has driven Parle-G customers to change their brand was
found to be the 50-paisa increase in the price of Parle-G, thereby
indicating the price sensitivity of the customers.
In the case of Parle-G brand, the researcher found that it s the
taste, which contributed towards the customers brand loyalty. ParleG s
long presence in the market didn t have much impact on the
consumers brand choice, rather it was the taste that deferred
customers from switching to the other brands of glucose biscuits.The
Parle-G customers are not against consuming the Tiger brand
provided they get the same quality taste as that of the Parle-G brand.
They pointed out that the Tiger brand has a little lower milky taste
and is a little sweeter than it should be. Thus, the company must
SIDVIN SCHOOL OF BUSINESS, BANGLORE
A study on Effectiveness of Brand strategy of Britannia Biscuits
maintain the price and concentrate on the brand taste to take
maximum advantage of this opportunity. Also, marketing efforts are
required to make the consumers aware of the brand s price and make
them more of nutrition-conscious so that they can understand the
Glucose H-Force Biscuit concept.
CHAPTER-4
BIBLIOGRAPHY
BIBLIOGRAPHY
BOOKS:
.
Marketing Management by Philip Kotler (Prentier Hall of India Pvt
Ltd) Ninth Edition.
.
Essentials of Marketing Management by Reddy and Appanaih
(Himalaya Publishing House) Ninth edition.
.
Consumer behavior by R Nair (Himalaya Publishing House) Third
Edition.
.
Keeping Customer Happy by Jacqueline Dunckel and Brian Taylor
(Jaico Publishing House) Second Edition.
.
Essentials of marketing Management by S A Sherlaker (Himalaya
Publishing House) Twelfth Revised and Enlarged Edition Reprint.
NEWS PAPERS:
.
THE ECONOMIC TIMES
.
THE TIMES OF INDIA
.
THE BUSINESS AGE
.
THE BUSINESS STANDARD
.
THE INDIAN EXPERESS
MAGAZINES:
SIDVIN SCHOOL OF BUSINESS, BANGLORE
A study on Effectiveness of Brand strategy of Britannia Biscuits
.
BUSINESS INDIA
.
INDIA TODAY
INTERNET WEBSITES:
.
www.britanniaindustries.com
.
www.google.com
.
www.parlebiscuits.com
SIDVIN SCHOOL OF BUSINESS, BANGLORE
A study on Effectiveness of Brand strategy of Britannia Biscuits
Chapter - 5
Annexure
Brand Ambassadors
PRODUCT ADVERTISMENT