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 %
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