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Transcript of Brit
Type Public
Industry Food processing
Founded 1892
Headquarters Kolkata, West Bengal, India
Number of locations 300 stores
Area served World wide
Key people Nusli Wadia, (Chairman)Vinita Bali, (MD)
Products Bakery products, including biscuits, bread, cakes and rusk, and dairy products, including milk, butter, cheese, ghee and dahi
Revenue 4,670 crore
Profit 134 crore
Parent Groupe DanoneWadia Group
VISION
To dominate the food and beverage market in India with a distinctive range of “Tasty Yet Healthy” Britannia brands.
MISSION
To dominate the food and beverage market in India through a profitable range of “Tasty yet Healthy” products by making every Indian a Britannia consumer. “We want to be part of our consumer- at home, out of home, a natural part of his life
BUSINESS DESCRIPTION
The Wadia Group of India along with Groupe Danone of France, are equal shareholders in ABIL,
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
Britannia products
Cheese Butter Ghee Gourmet Dairy whitener Dahi Actimind Tigerzor choko milk Tigerzor badam milk Milk
Consumption Pattern-Cheese
• There have been two significant changes in consumption patterns, affecting each end of the spectrum. In the mass consumption category, Indian consumers are more ready to buy off the shelf. Paneer, which all the major cheese producers are marketing as a branded product, was traditionally home made.
• Secondly, with greater international exposure, rising incomes and brand affiliation; the demand for niche cheese products has increased. Amul was an early mover in capitalizing on the demand for specialized cheeses like Gouda and Emmental.
• However, cheese consumption continues to be an urban phenomenon, with processed cheese and cheese spreads accounting for about 80% of the total cheese consumption. Also, cheese is mostly consumed by children and is yet to be part of the mainstream adult diet on a mass scale.
Intense competition amongst sellers
The Amul and Britannia brands have the strongest national dairy brand identity. To compete with these established brands and gain national presence, other cheese retailers will resort to heavy marketing. Cheese advertising budgets alone are likely to be around 2%-4% of total revenues. Advertising strategies could include, for e.g. cross selling with complementary food products and offering free cheese tasting sessions.
Intense competition amongst sellers
Mother Dairy has already been pursuing aggressive advertising strategies. One successful promotion in Delhi and Mumbai was the "Cheese khao superhero ban jao"
Another, helped the company bond better with its retailers. In November 2005, retailers in Delhi displayed banners proclaiming, "Cheese ke saath bees ki cheez" Both these innovative campaigns were hugely successful in brand awareness and sales.
Production Pattern
The state cooperatives that market cheese like Amul, Mother Dairy and Verka have their own production plants and source milk from their cooperatives.
Among international cheese companies, only Dabon Private Limited also produces cheese in the country, having its own plant in Noida, near Delhi.
The only significant private player, Britannia, does not make its own cheese but has it produced by the Maharashtra based private dairy company Dynamix Dairy Private Limited (which has a technical collaboration with Schreiber Cheese, USA).
Bel Fromageries, the global French company that sells Laughing Cow and Kiri varieties of cheese in India, imports cheese into the country through its agent, Rai and Sons, Delhi.
awards
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
2002 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
awards
2010 Britannia was presented the Master Brand 2010 Award by CMO Council in November 2010.
Rotary Club of Chennai awarded CSR Award to Britannia in November, for our work in nutrition.
Britannia received the Most Respected Company Award 2011 from Business world.
Bourbon received the Most Popular Confectionery Product Preferred By Youth (Biscuit) Award.
IMCRBNQA (Indian Merchant Chambers Ramakrishna Bajaj National Quality Award) conferred the Manufacturing Performance Excellence Trophy a National Quality Award for the 2010 cycle, for Britannia Corporate Office (Bangalore), Britannia Industries Ltd. (Rudrapur) and Sunandram Foods Pvt Ltd (Mangaldoi, Guwahati).
THE STRATEGY OF BRITANNIAIN INDIA….
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. The 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.
MARKET SHARE
amulBritannia Regional brands e.g. Mother Dairy, Vijaya Imported brands e.g. Kraft, Laughing Cow
BRITTANNIA VS AMUL
Formed in 1946,is also known as CO OPERATIVE MOVEMENT IN INDIA it is managed by ……………
Gujarat co-operative milk marketing federation ltd.(GCMMF).
dairy co-operative of Gujarat turnover of Rs 27000 cores by the year 2020”.
AN OVERVIEW…… Members: 13 district cooperative milk producers'
Union
No. of Producer Members: 2.79 million
No. of Village Societies: 13,328
Total Milk handling capacity: 11.22 million litres per day
Milk collection (Total - 2008-09): 3.05 billion litres
Milk collection (Daily Average 2008-09): 8.4 million litres
Milk Drying Capacity: 626 Mts. per day
Cattlefeed manufacturing Capacity: 3500 Mts per day
MARKET SHARE AND STATUS…
BUTTER 85%
MILK POWDER 40%
CHEESE 50%
ICE CREAM 24.75%
SWEETS 50%
CHOCO-DRINK 90%
CHOCOLATE 10%
MARKETING MIX
Product:Dairy productsCooling products
PriceLow pricing strategy
Place:Rural MarketUrban marketInternational Market
Promotion:Advertisement
1% on promotion
Amul Butter girl is the longest running ad campaign in country for 41 years.
Agreement signed with Wall Mart
SWOT ANALYSIS
StrengthWide range of productsAffordable priceDistribution networkDiversificationEffective AD Campaign
Weakness:Need to focus on other product as wellImprove on road transport infrastructure
Opportunity:Export segment Sport s drink new marketEntry in retailingPackaged sweets market
Threats:Increasing populationIncreasing requirementAdulterationDifficult to expandPopulation of milch animal
AMUL STRENGTHS
• Collect as much as 195 lac kg per day.(19.5)million of milk in the peak flush season.
• Dairy has organized over 10,000 village co-operatives .
• Everyday dairy collects 4,47000 liters of milk .
• Dairy sells 400 tones of cattle everyday.
• Strong marketing .• Strong brand name.
MARKET OVERVIEW…..
India is both the world’s largest producer and of dairy products. Total size of the dairy market is 234,600 crores, growing at 5% and dominated by increasing consumption and sale of milk. The market that converts milk to value-added products like dahi, yoghurt, cheese and dairy based beverages is growing strongly, albeit from a narrow and small base of around ` 11,000 crores
STP Segment People who need and
consume bakery and dairy products Target Group Middle and upper middle
class families, especially kids Positioning India’s leading
manufacturer of premium quality and healthy biscuits, bakery and dairy products. And available at every store
SWOT Strength
1. Around 120 years in the industry2. India’s most trusted brand 3. Wide range of bakery products like biscuits, rusks,
cakes and dairy products like milk, butter, cheese, etc. 4. Strong distribution network ensuring proper availability
of the products even in the remotest of areas5. Marketing and advertising efficiency6. Innovative products for health conscious people 7. Strong presence in rural markets8. Products for all
WEAKNESS
Lower market share in dairy segment Heavy expenditure on advertising and
marketing Similar products produced by many
companies means high brand switching LESS CONTACT WITH FARMER HIGH COMPETATION
Opportunity1. Increase in purchasing power of people
in India2. Increase its share in the dairy industry3. Product line extension4. Expansion in other countries
THREATS1. Lower price offering competitors2. Local dairies and bakeries3. Up gradation from unbranded and loose
products to packaged, at accessible prices milk and milk products.
4. Competition in value added dairy will intensify as more players enter the market supported by significant brand and infrastructure investment.
5. Only 9% of food consumed in India is packaged and branded
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. The 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.
According to porter‟s generic model, we feel Britannia falls under the diffentiation category as in 2008, Britannia divided its product portfolio into two distinct categories: "health and wellness" and "delight and lifestyle”. This clearly states that it believes in product uniqueness while having a broad market.