Britannia began in 1892 in Kolkata with an initial investment of Rs. 295. It became the first company east of the Suez Canal to use imported gas ovens. Britannia grew along with the biscuit market and established itself as an Indian company. It has since expanded its product portfolio and become one of India's largest food brands. Britannia utilizes an extensive distribution network and focuses on rural markets. A recent price increase by its competitor Parle-G presents an opportunity for Britannia to target former Parle-G consumers and become the top player in the glucose biscuit segment.
2. A COMPANY PROFILE
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 Rs. 295. The company we all know as Britannia
today.
The beginnings might have been humble-the dreams were anything but by 1910, with the advent of
electricity, Britannia mechanised its operations, and in 1921, it became the first company east of the
Suez Canal to use imported gas ovens. Britannia's business was flourishing. But, more importantly,
Britannia was acquiring a reputation for quality and value. As a result, during the tragic World War II, the
Government reposed its trust in Britannia by contracting it to supply large quantities of "service biscuits"
to the armed forces.
As time moved on, the biscuit market continued to grow… and Britannia grew along with it. In 1975, the
Britannia Biscuit Company took over the distribution of biscuits from Parry's who till now distributed
Britannia biscuits in India. In the subsequent public issue of 1978, Indian shareholding crossed 60%,
firmly establishing the Indianness of the firm. The following year, Britannia Biscuit Company was re-
christened Britannia Industries Limited (BIL). Four years later in 1983, it crossed the Rs. 100 crores
revenue mark.
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: the
Lagaan Match was voted India's most successful promotional activity of the year 2001 while the
delicious Britannia 50-50 Maska-Chaska became India's most successful product launch. In 2002,
Britannia's New Business Division formed a joint venture with Fonterra, the world's second largest Dairy
Company, and Britannia New Zealand Foods Pvt. Ltd. was born. 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.
The company's offerings are spread across the spectrum with products ranging from the healthy and
economical Tiger biscuits to the more lifestyle-oriented Milkman Cheese. Having succeeded in garnering
the trust of almost one-third of India's one billion populations and a strong management means
Britannia will continue to dream big on its path of innovation and quality.
3. MARKETING MIX – 4Ps of BRITANNIA
Product:
Britannia Good Day is an augmented product. Augmented products are those products which have
additional attributes in the product to differentiate it from the competitor’s products. They try to add
more attributes to improve the product and exceed the normal expectations of buyers i.e. to delight
them. Britannia Good Day enjoys a fan following of consumers across all ages who are loyal to the brand
and the biscuits promise of a great taste evident from the visibly abundant ingredients like butter,
cashew, pista badam, chocolate chips, nuts and dry fruits. With richness as one of the functional facet of
Good Day this product can be classified as a premium segment biscuit.
PRICE:
Pricing is one of the most important elements of the marketing mix, as it is the only mix, which
generates a turnover for the organisation. The remaining 3p’s are the variable cost for the organisation.
It costs to produce and design a product; it costs to distribute a product and costs to promote it. Price
must support these elements of the mix. Pricing a product too high or too low could mean a loss of sales
for the organisation. Pricing should take into account the factors like fixed and variable costs,
competition, company objectives, proposed positioning strategies, target group and willingness to pay.
PLACE:
As biscuits need to reach the consumer at their nearest locations. Britannia tries to reach the point of sale
i.e. retailers, kirana shops and also big retail units like Food Bazar and even exports.
PROMOTION:
Britannia works in close partnership to promote its biscuits with retailers. Promotion costs are shared
with retailers. The more retailers sell - the more Britannia is able to help them. Britannia launches
products that offer the company good returns, supporting these through brand building and leveraging
on its nationwide supply chain. Brand building is an integral part of Britannia’s marketing philosophy
with continued promotions for its various brands creating loyal customers in the process.
4. SWOT ANALYSIS
STRENGTHS:
•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.
WEAKNESS:
High overhead costs vis a vis competition from Parle, Priya Gold.
OPPORTUNITIES:
•Cost saving from lowering of excise duty on bakery products.
•Price hike in 100-gram Parle-G brand
THREATS:
• Unorganized bakeries.
•Rising input costs.
•ITC and HLL entry in biscuits. Priya Gold and Anmol lower price offerings.
5. STRATAGIES:
•Differentiate brand according to regional disparities (product content, packaging etc.).
•Uttaranchal manufacturing facility will cover burdens significantly.
•Maintain the price to gain market share, focus on the Tiger brand taste.
•Distribution thrust into interiors.
•Opening van markets.
•Restructure production facilities.
•Heavy advertising to create consumer pull and be allowed to charge a premium.
•Advertisements emphasizing the product quality and nutritional value.
•Cut overheads.
•Preempt innovations by these players, got first mover advantage.
6. 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. Parle-G’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 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.
