ASSIGNMENT

OF

MANAGEMENT CONTROL SYSTEM (MCS)

ON

BRITANNIA INDUSTRIES

Prepared By:

KUNJ SHAH

(127700592099)

KINAL SHAH

(127700592098)

KHUSHBOO SUMARIA

(127700592108)

INTRODUCTION TO INDUSTRY (FMCG)

Fast-Moving Consumer Goods (FMCG) or Consumer Packaged Goods (CPG)

are products that are sold quickly and at relatively low cost.

Examples include non-durable goods such as soft drinks, toiletries, and grocery

items. Though the profit margin made on FMCG products is relatively small, more

so for retailers than the producers/suppliers, they are generally sold in large

quantities.

FMCG is probably the most classic case of low margin/high volume business. Many

of the players on the retailer side such as Walmart, Carrefour, Choithram,

Tawseel, Sheel, Walgreens or Metro Group and supplier side are among the

largest and most recognized global companies.

Fast-moving consumer electronics are a type of FMCG and are typically low priced

generic or easily substitutable consumer electronics, including mobile phones,

MP3 players, game players, and digital cameras which are of disposable nature.

The following are the main characteristics of FMCGs:

From the consumers' perspective:

o Frequent purchase

o Low involvement (little or no effort to choose the item – products with

strong brand loyalty are exceptions to this rule)

o Low price

From the marketers' angle:

o High volumes

o Low contribution margins

o Extensive distribution networks

o High stock turnover

INTRODUCTION TO COMPANY (BRITANNIA)

The story of one of India's favorite brands reads almost like a fairy tale. Once

upon a time, in 1892 to be precise, a biscuit company was started in a

nondescript house in Calcutta (now Kolkata) with an initial investment of ` 295.

The company we all know as Britannia today.

The Company's principal activity is the manufacture and sale of biscuits, bread,

rusk, cakes and dairy products.

In 1918, C.H. Holmes, an English businessman in Kolkata, was taken on as a

partner and The Britannia Biscuit Company Limited (BBCo) was launched.

The company name finally was changed to the current "Britannia Industries

Limited" in 1979. In 1982 the American company Nabisco Brands, Inc. became a

major foreign shareholder.

On the operations front, the company was making equally dynamic strides. In

1992, it celebrated its Platinum Jubilee. In 1997, the company unveiled its new

corporate identity - "Eat Healthy, Think Better" - and made its first foray into the

dairy products market.

In 1999, the "Britannia Khao, World Cup Jao" promotion further fortified the

affinity consumers had with 'Brand Britannia'.

Britannia strode into the 21st Century as one of India's biggest brands and the

pre-eminent food brand of the country. It was equally recognised for its innovative

approach to products and marketing.

In recognition of its vision and accelerating graph, Forbes Global rated Britannia

'One amongst the Top 200 Small Companies of the World', and The Economic

Times pegged Britannia India's 2nd Most Trusted Brand.

Today, more than a century after those tentative first steps, Britannia's fairy tale

is not only going strong but blazing new standards, and that miniscule initial

investment has grown by leaps and bounds to crores of rupees in wealth for

Britannia's shareholders.

Having succeeded in garnering the trust of almost one-third of India's one billion

population and a strong management at the helm means Britannia will continue

to dream big on its path of innovation and quality. And millions of consumers will

savor the results, happily ever after.

Between 1998 and 2001, the company's sales grew at a compound annual rate of

16% against the market, and operating profits reached 18%. More recently, the

company has been growing at 27% a year, compared to the industry's growth rate

of 20%. At present, 90% of Britannia’s annual revenue of ` 22 billion comes from

biscuits.

BRITANNIA INDUSTRIES

Category Food Products

USP India’s very own bakery and dairy products brand

that is trusted for its quality.

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

COMPETITION

Competitors

Parle

Amul

Nestle

Mother Dairy

PRODUCT LINE OF BRITANNIA

Britannia Products

The Britannia Products consists of the four sectors:

Biscuits Sectors

Bread, Cakes and Rusk Sectors

Gift Sectors

Dairy Products.

Biscuits Sectors Bread, Cakes and Rusk Sectors

Gift Sectors Dairy Products

Britannia Tiger Biscuits

Britannia Bread Premium Assorted Cookies

Cheese

Milk Biscuits Britannia Toasted Rusk

Cookie Delight, Meetha Namkeen

Butter

Britannia Cookies, Healthy Gifts, Royale Special

Ghee

Britannia Good Day Biscuits,

Choco Delight Milk

Britannia Nice Time Biscuits,

Veggie Delight Gourmet Cheese

Britannia Treat Biscuits

Meetha Namkeen Dahi

Britannia Pure Magic

Dairy Whitener

Britannia 50-50 TigerZor Choco Milk

Time Pass Badam Milk

Little Hearts

BourbonBritannia Marie BiscuitsBritannia Nutri Choice Biscuits

CORE COMPETENCY:

Britannia's core competency is in the baking arena and this will give it a

competitive advantage.

BCG MATRIX (BOSTON CONSULTING GROUP)

Companies that are large enough to be organized into strategic business units

face the challenge of allocating resources among those units.

In early 1970’s the Boston Consulting Group developed a model for managing

a portfolio of different business units (or major product lines).

The BCG model is based on the product life cycle theory that can be used to

determine what priorities should be given in the product portfolio of a business

unit to ensure long term value creation.

A company should have portfolio of products that contain both high growth

products in need for cash inputs and low growth products that generate a lot of

cash.

It has 2 dimensions: Market Share & Market Growth.

The basic idea behind it is that the b9igger the market share a product has or the

faster the products market grows the better it is for the company.

BCG MATRIX OF BRITANNIA

STARS:

Britannia Tiger Biscuits

Milk Biscuits

Britannia 50-50

Little Hearts

Bourbon

Britannia Marie Biscuits.

QUESTION MARK:

Britannia Cookies

Britannia Nice Time Biscuits

Britannia Pure Magic

Choco Delight

Veggie Delight

Gourmet Cheese

Britannia Bread

CASH COWS:

Premium Assorted Cookies

Cheese

Britannia Toasted Rusk

Butter

Milk

Time Pass

DOGS:

Ghee

Dahi

Dairy Whitener

TigerZor Choco Milk.

SWOT ANALYSIS OF BRITANNIA

STRENGTH

India’s most trusted brand with strong brand recall.Wide range of bakery products like biscuits, rusks, cakes and dairy products like milk, butter, cheese, etc.Strong distribution network ensuring proper availability of the products even in the remotest of areas.

Major share in biscuits industry.

Marketing and advertising efficiency.

Innovative products for health conscious people like oats and porridge, Nutri Choice biscuits for diabetes patients, Vita Marie Gold, etc.

Strong presence in rural markets.

Products for all food and snacks segments.

WEAKNESS

Lower market share in dairy segment.

Heavy expenditure on advertising and marketing.

Similar products produced by many companies means high brand switching.

OPPORTUNITIES

Increase in purchasing power of people in India.

Increase its share in the dairy industry.

Product line extension.

Expansion in other countries.

THREATS

Lower price offering  competitors

Local dairies and bakeries

Inflation can cause fall in sales and revenue

Rise in cost of raw materials

SALES FIGURES

(In crores)

FINAL SHOW – OFF

Britannia33%

Parle33%

Others16%

Horlicks1%

ITC11%

Priya-Gold3%

Kraft Oreo3%

Overall Market Share

Year Net Sales % Change

2009-10 3403.5 -

2010-11 4213.7 24 %

2011-12 4947.04 18 %

2012-13 5564.38 12 %