Strategy assignment britannia_industries

Study Compiled by
AMIT KUMAR [GMITE12109]
AMIT AGARWAL [GMITE12108]
JOSEPH PAUL ABRAHAM SURESH
[GMITE121030]
ANKUR KHARE [GMITE121011]
SANTOSH BR [GMITE121057]
IIM Bamgalore
09-Dec-18
Strategic Management Assignment
- Britannia Industries Ltd.

Assignment - Strategic Management |GMITE 12 |IIMB
Assignment - Strategic Management |GMITE 12 | IIMB Page 1
Contents
Executive Summary of Project................................................................................................................................ 3
Britannia Industries................................................................................................................................................ 4
Britannia - Exciting goodness ............................................................................................................................. 4
Food Processing Industry Analysis: India.............................................................................................................. 5
Britannia Industries: Porters Five Forces Analysis...............................................................................................15
Britannia Industries: Firm Analysis ......................................................................................................................16
Britannia Industries: BCG Matrix......................................................................................................................16
Britannia Industries: SWOT Analysis................................................................................................................18
STP of Britannia Industries ...................................................................................................................................19
Segmentation .....................................................................................................................................................19
Demographic Segmentation:......................................................................................................................... 20
Behavioral Segmentation:.............................................................................................................................. 20
Psychographic Segmentation: ....................................................................................................................... 20
Niche Segmentation: ..................................................................................................................................... 20
Targeting ............................................................................................................................................................21
Positioning .........................................................................................................................................................21
Differentiation....................................................................................................................................................21
Growth Strategy .................................................................................................................................................21
Britannia Industries: Competitive positioning..................................................................................................... 22
Britannia Industries: Strategic Alliance and Partnership .................................................................................... 22
Britannia Industries: Resource and Capability analysis....................................................................................... 23
Infrastructure.................................................................................................................................................... 23
Innovation Capability........................................................................................................................................ 25
Process Innovation ........................................................................................................................................ 25
Product Innovation........................................................................................................................................ 25
Marketing Capability and Innovation............................................................................................................... 25
Marketing Mix Structure................................................................................................................................... 26
Britannia Marketing Mix (4Ps) Strategy ....................................................................................................... 27
Strong Distribution Network ............................................................................................................................ 29
Delightful Customer Experience....................................................................................................................... 30
Britannia Financials & Market Growth .................................................................................................................31
Britannia: Stock Exchange Performance.............................................................................................................. 34
Drivers for the future growth................................................................................................................................ 36

Outlook ................................................................................................................................................................. 37
Exhibits ................................................................................................................................................................. 38
Appendix............................................................................................................................................................... 49
Strategic Management Assignment -
Britannia Industries Ltd.
Company Website: www.britannia.co.in
Industry: Food processing
BSE: 500825
NSE: BRITANNIA

As part of Strategic Management Assignment we study Britannia Industries Ltd that belongs to Food
Processing Industry. It is headquartered in Kolkata, India. Operates & concentrates majorly in Indian
market so we will perform Industry analysis using Porters five forces with respect to Indian context
that looks into the External environment where company operates.
Where with respect to Britannia we find
- Its Landscape
- Choices between and within Industry and what determines our choice.
- Where does Britannia Position itself within the Industry.
Later we look into Firm Analysis that helps to get
- How does Britannia compete?
- How does Britannia build competitive advantage?
- and how Britannia sustains competitive advantage.
- Its Resource and Capability analysis
o Process, Product and Marketing innovation.
o Marketing strategy
o Infrastructure
We also perform BCG analysis where we identify product lines and its performance then we look into
its “Strategy for growth and market share” we also perform SWOT analysis that looks in Internal
environment but it has its own advantages & disadvantages listed below
 It gives the Laundry list that is helpful.
 But lacks linkage and application
 Can be compartmentalized like below as Internal and External factors.
Industry analysis and Firm analysis bridge External environment and internal environment linkage and
its application helps to identify firm strategy.
Then we briefly look into
- Financials and market growth
- Performance, future drivers and Outlook about Company
Executive Summary of Project

Britannia Industries Limited is a food manufacturing company in India, headquartered at Kolkata. It
was launched in 1892, with an initial investment of Rs. 295. Over the years, Britannia has changed
hands from one group to another. In the year 1995, it was acquired by the Wadia group, which is one
of the oldest conglomerate in India. In 2001, it went on with a joint venture with New Zealand Dairy,
and thus extended its portfolio of products in the dairy segment. Britannia gained huge revenues
lately and total sales has been ₹7869 crores and has a total market share of 33% (approx.) currently.
Headed by industrialist Nusli Wadia, Britannia is a giant in the ever-increasing food industry in India.
[Appendix7]
Britannia is one of the leading food companies India and has a legacy of more than 100 years. Today
it is among the most trusted food brands in India. Its portfolio includes biscuits, bread, cakes, rusk and
dairy products including cheese, beverages, milk and yoghurt. It is the largest brand in organized
bread market. Its products reach over five million retail shops and 50 per cent Indian households.
Total income of the company reached Rs 10,156.47 crore (US$ 1.58 billion) in FY18 and 2,585.84 crore
(US$ 385.72 million) in Q1 FY19.
Britannia - Exciting goodness
2018 Setting up an integrated mega food park in Maharashtra
2017 Joint venture with Chipta SA
2016 Established world class R&D facility in Bangalore, Karnataka
2014 Tie-up with Amazon for launch of latest products
2004 Accorded the status of a Superbrand
2000 Voted in top 300 small companies by Forbes Global
Britannia Industries

1997 Incorporated new ‘Eat Healthy. Think Better’ corporate identity, launched dairy products
1986 Good Day Brand was launched
1979 Name of the company changed to Britannia Industries Ltd
1954 Pioneered development of high quality sliced and wrapped bread in India
1921 Imported industrial gas ovens to increase production
1910 Operations were mechanized
1882 Established in Kolkata, West Bengal
India is the world's second largest producer of food next to China and has the potential of being
the biggest, backed by its food and agricultural sector. The total food production in India is likely to
double in the next 10 years.
The Indian packaged processed foods industry is estimated at US$ 10.87 bn – US$ 13.05 bn, including
biscuits, chocolates, ice-cream, confectionery, snacks, cheese and butter. • The industry is growing at a
healthy 14-15 percent over the past two-three years. • The industry received foreign direct investment
(FDI) totalling US$ 143.80 mn in 2008-09 against US$ 5.70 mn in 2006-07.2 [Appendix-10]
India is one of the top rankers in the production of bananas, guavas, ginger, papaya etc., although
processing levels in the country remain limited. This indicates an extensive opportunity in the food
processing sector. [Appendix-10]
Food Processing Industry Analysis: India

[Appendix-9]
The Indian food processing industry is pegged close to US$ 121 bn to US$ 130 bn. With the second
largest arable land in the world, India is the largest producer of milk, pulses, sugarcane and tea in the
world and the second largest producer of wheat, rice, fruits and vegetables. Indian agriculture being
the primary supporter caters to around 60 percent of the population for their livelihood and
contributes to 17 percent of GDP. Despite the massive production, the degree of processing is low
and ranges between 2 to 35 percent for different produce. [Appendix-10]
 Demand growth, supply advantages, and policy support have been instrumental in attracting
FDI
 The government’s main focus is on supply-chain related infrastructure, such as cold storage,
abattoirs and food parks
 By FY2020 - Indian food and retail market is projected to touch US$ 482 bn.
 By FY2022 - Food processing sector has the potential of attracting US$ 33 bn of investment in
coming years and generate employment of 9 mn persons days.

[Appendix-3]

Also, the following points below highlights the Advantage India as market and attractive investment
destination for food processing industry.

Key points regarding Food Processing Industry

 Food Processing Industry contributes to approx 14% of India’s GDP.

Key Activities and some major players in different stages of lifecycle.
 Food Processing Market majorly falls under un-organized sector and
small scale industry.
 Generates Major employment as direct and indirect job.

 Food Processing Industry has a huge potential in Indian market also
backed by Government policies.

Competitor
Rivalry
•BIL has a market share of 38% and has been growing at 27%, compared to the industry growth rate
of 20% Battle-scarred Britannia on expansion spree, Business Standard and has many competitors
based on the nature of product. Parle and ITC (Sunfeast) pose a great competition to BIL. BIL
earning major of its income from the biscuits, and Parle and ITC are the other major players in
biscuit market. BIL is also into the production of dairy products, where the two major players in
market are Amul and Nestle. Amul is the leader in the dairy industry. There is also a good level of
competition from the unorganized baking sector. Overall rivalry is Medium to high.
Threat of
New Entrants
•The entry on a small scale dairy industry and in the unorganized baking sector is easy. But on the
other hand to enter the large scale dairy industry and organized baking sector a huge amount of
investment is required in terms acquiring assets and to establish supply and distribution chains.
Government regulations pertaining to food norms and others may also seem to be unattractive.
Looking at the latest trends, the bakery industry is expected to earn huge revenues which might
attract new entrants. So the threat of new entrants is moderate.
Threat of
Substitutes
•Savoury snacks, crisps, cereals, fruits and other fast food can be substituted for biscuits. Dairy
products are dubious to be replacing with other products as they key ingredients of majority of
people’s diet. So the threat is a moderate threat of substitutes.
Buyer’s
Power
•The buyer’s of these products could be a retailer or the consumer. Both the dairy and bakery
industry are price sensitive, so a little increase in price might lead the consumer to shift other brand
or product. So the buyer’s power is calculated to be very strong.
Supplier’s
Power
•The major supplies for a bakery industry include wheat, sugar and other agriculture products. And
the major supplies for dairy products are milk. It’s difficult to bargain with the suppliers of the
above mentioned inputs as the price of these inputs is majorly influenced by the production of these
inputs. The prices tend to be high as the demand for these products is rising at much faster rate
than supply. The secondary supplies include the packaging material. The secondary supplies can be
easily substituted with the low-cost ones to save on cost. Overall the supplier’s power is
assessed to be moderately high.
Britannia Industries: Porters Five Forces Analysis

Conclusion of Five Forces Analysis:
As per Porters five forces analysis - Attractiveness is said to be medium to high for food processing
Industry.
For Detailed Analysis refer [Exhebit-8]
 Britannia is doing fantablous and this year marks super special and has 50 new products line to
mark 100 years of celebration. Firm has given 2200% returns in 10 years and performing
very well [Appendix13]
 Britannia market share is increasing Year on Year [Exhibit1] and [Exhibit4]
 It has not only bridged the gap but exceeded its closest competitor in term of market share
[Exhibit1]
Britannia Industries: BCG Matrix
Britannia Industries: Firm Analysis

 Biscuits account for nearly 70 per cent of its turnover, adjacencies – primarily cakes, rusk,
bread and dairy – together account for around 23 per cent of the sales. International business
accounts for the remaining.[Apendix-8]
 Cash cow for Britannia is GoodDay and other very well performing biscuit are MarieGold and
treat [Appendix-8A]
 Cakes, rusk, bread and dairy – together account for around 23 per cent of the sales so they are
question mark but Britannia is investing in it to gain market share and on path of becoming a
Total food Company by entering into Hybrid biscuit category and gaining market share in
dairy products. [Apendix-8] [Appendix-8B]
Using the BCG matrix to strategize
In outlines four potential strategies can be followed based on the results of the BCG matrix analysis:
1. Build. Increase investment in a product to increase its market share. For example, we can push a
question mark into a star and, finally, a cash cow. Example Cakes, rusk, bread and dairy products.
2. Hold. If you can't invest more into a product, hold it in the same quadrant and leave it be.. like
Tiger,50-50, little heart.
3. Harvest. Reduce your investment and try to take out the maximum cash flow from the product,
which increases its overall profitability (best for cash cows). Example Good Day,
4. Divest. Release the amount of money already stuck in the business (best for dogs). Once we
identify, it should be according to management decision to stay or put more money based on
different condition.

Britannia Industries: SWOT Analysis
SWOT Analysis gives a Laundry list of items but lacks linkage relationship.
Helpful
(to achieve the Objective)
Harmful
(to achieve the objective)
Internal Origin
(Attributes of
Organization)
Strength
 100 years in Industry, trusted
brand with strong brand recall.
 Extensive Distribution network.
 Providing wide Range of Food,
Snacks & Bakery products.
 Innovative Advertisement.
 Strong presence in Rural market
 State-of-the-art R & D center
 Government push for packaging
food
Weakness
 Dependence on Store and
Retailers
 Not an extensive Overseas
market
 Lower market segment in dairy
segment.
 Heavy expenditure on
advertisement and marketing.
 Similar products by many
companies tend to Brand
switching.
External
Origin
(Attribute of
Environment)
Opportunities
 Increasing demand for
healthy products like Oats,
diet, sugerfree biscuit etc.
 Retaining loyal retailers and
wholesalers
 Targeting interior area of
India.
 Increase share in Dairy
Industry.
 Increase in Purchasing power
of people.
 Expansion in other part of
India and other countries.
 In other food processing and
packaging product like juices,
pulps etc
Threat
- Local bakery products ,
Imitations
- New entrants like Oreo, Dark
Fantasy , Sun Feast etc..
- Margin war among major
brands.
- Increase in raw material due to
increase in inflation.
- Government policies – like
adhering to changing packaging
food norms, GST etc

Marketing Strategy that leads to Competitive advantage include anything from facts, events,
procedures, values and personalities. Britannia nearly sells all their products all over India and even
exports it other few countries. Their market rate kept growing every year in the Indian market.
Therefore, BIL has implemented a Diversification strategy, so that it becomes the market leader in the
food and biscuits industry. But they made sure that when they diversify, they make similar kinds of
products such as cheese, diary products and even more bakery items. So the company can realize
their marketing strategies by underlining the opportunities in the market. There are a various different
strategies they adopted.
Segmentation
Segmentation – They believed in the best quality of products for the consumers as they are health
conscious and so they fulfil this need of the consumers.
STP of Britannia Industries

Demographic Segmentation:
Age:
Kids-Fruit Rolls, Tiger & Treat
Matured People-Good Day, Cream Cracker
Youth– Little Hearts, Cream Biscuits
Income: Lower Income Group- Tiger, Marie
Higher Income Group-Good day, NutriChoice
Gender: For both Male & Female
Behavioral Segmentation:
Benefits-For Health Benefits; All Nutri Products, Tea Time Snack Biscuits &Sujie Toast
User Status– Little Heart Biscuit & Time Pass for Lovers.
Usage Rate-Marie Gold is for High Usage Rate Customers.
Occasion- Snack Biscuit, Fruit Rolls for occasion purposes.
Psychographic Segmentation:
Britannia has adopted itself according to the convenience and lifestyle of the Indian consumers so
Britannia came up with a different and new product line
Niche Segmentation:
Britannia Slice Cakes and Britannia good day are designed for the people who actually also wants
some food characteristics in a biscuit. Different cream biscuits are also made for the people who love
to have a biscuit with cream.

Targeting
Targeting – The Company focussed on building a good relationship with the customers as they are
they play the most important part in the sale of products. Not only did they keep up to the old
customer’s expectation, but they also try to make new customers as their retention plays a major role
for the growth of their business.
 Britannia Tiger-Low Price & Low Income Group
 Britannia 50-50-Tea Snack & Kids
 Britannia Marie Gold-Biscuit & Family Size.
 Britannia Good Day- Higher Income Group
 Treat Fruit Rollz-Children, during celebration & Occasion time.
Positioning
Positioning – While manufacturing new products, they don’t fail to remember their competitor’s way
of fighting against them, instead they pay even more attention to each and every step they take
towards success as they want to be ahead of them and succeed.
 TIGER : Positioning is done for modern mother choose for Kids
 LITTLE HEARTS : Positioning is to be a snacks for youngs.
 GOOD DAY : Positioning is as everyday biscuits which bring happiness in everyones lives
 MARIE GOLD :Positioning as a tea time biscuits with proteins
Differentiation
 Large variety and range of biscuits
 Most intensive distribution coverage
 Britannia has an image that generates fun along with a belief of good quality.
 Plays perfectly around it’s tag line “Eat healthy, Think better”
 Britannia Nutrition foundation – “To secure every child’s right to growth and Developmnet
through right 2 Nutrition”.
Growth Strategy
Growth Strategy – Even though Britannia biscuits started off by selling their products in India, they
slowly expanded and started to export it to other parts of the world. By doing so, they adapted to the
different cultures of those countries and made plans for those neighbouring areas and researched
and analyzed which product has more demand than the others and ways to improve their sales.

Promoting their brands is a very essential idea for their marketing strategy as it helps understand the
consumers the variety of benefits they get while purchasing the product. They should advertise and
publicize their message clearly stating the facts.
Based on the marketing strategies, we understand that building a brand is an important part of the
company. They understand how to increase sales and profits in a short span of time while continuing
to promote its variety of brands to create loyal consumers.
The positioning is a creative exercise down with an existing product. the well known products
generally hold a distinctive position in consumer's minds. The positioning requires that every tangible
aspect of product, price, place and promotion must support the chosen positioning strategy.
Company should develop a unique selling proposition (USP) for each brand and stick to it.
Full market positioning: Britannia is market leader in cookies segments.
Use positioning: Nutrichoice products for diabetic people.
Benefit positioning: with eat healthy think better, Britannia positions itself as healthy and
nutritious alternative.
Britannia Industries: Strategic Alliance and Partnership
 Strategic alliance with CCD – Britannia buys 50% stack in CCD and will Offer its products via
CCD channel bundled as offering to Customers [Appendix4]
 In turn, also CCD Partners with UBER for its store products distribution [Appendix6]
Britannia Industries: Competitive positioning

 Enriching our portfolio - Britannia-Chipita JV | Entered into a joint venture agreement with
Chipita S.A., a Greek company, for the manufacture and sale of ready to-eat delicious
croissants. [Appendix-12]
 Chunkies Tie-up with Amazon | An exclusive tie-up with Amazon for the launch of its latest
product Good Day Chunkies, a super-premium chocolate chip cookie. [Appendix-12]
Infrastructure
 Over the years Britannia has established itself very strongly in infrastructure and expanded
factory footprints across India and its distribution networks, providing them capacity and
innovation power.
Britannia Industries: Resource and Capability analysis

Innovation Capability
Currently, innovations contribute 5% to Britannia’s revenue, way higher that 3% two years ago. Managemnt
aims to scale this contribution to 8-10% over the next few years.
Process Innovation
ZERO day Inventory - has Britannia planned to operate with a ‘zero-day inventory’ by
‘reducing distance between its distribution centres and retail stores that the company reaches
directly [Appendix5]
Product Innovation
 Britannia continue to strive at innovation with new Products some of the examples are little
hearts to lure youth also every year it comes up with new products in market.
 Various new Products like Hybrid Biscuit are in line in their R&D center. [Appendix8B]
Marketing Capability and Innovation
 Chota Tiger was a repackaging of same product with lesser price and quantity and was a
great success. similarly they have been able to reproduce this with MilkBikies. [Appendix11]

 After Research and Development:- the new product manager develops a preliminary marketing
strategy plan for introducing the new product in to the market. The plan consists of three parts.
The first part describes the target market's size, structure and behavior.
The second part out lines the planned price, distribution strategy and marketing budget for
the first year.
The third part of the development describes the long run sales and profit goals and marketing
mix strategy over time.
Transition to ‘total foods company’ underway
Some of the products in different stages of R&D are baked salty snacks, chocolate coated Marie
biscuits, mango flavoured Tiger biscuits, granola bars, protein-filed biscuits, Karachi biscuits and
multiple variants of cheese.
Marketing Mix Structure
The marketing mix (also known as the 4 Ps) is a foundation model . The marketing mix has been
defined as the "set of marketing tools that the firm uses to pursue its marketing objectives in the
target".Thus the marketing mix refers to four broad levels of marketing decision, namely: product,
price, promotion, and place.

Britannia Marketing Mix (4Ps) Strategy
Product
A product is any offering that can satisfy a need or want. The major types of basic offerings are goods,
services, experiences, events, places, properties, organizations, information and ideas. The company
gives more importance in quality, packaging, services etc. to satisfy the customers. The products has
it's life cycle. The product strategies are modified in different stages of product life cycle.
With Respect to Britannia:
Britannia manufactures wide variety of biscuits and dairy products. Britannia’s product strategy in its
marketing mix width primarily consists of biscuits, bread, dairy, cakes and rusk. The product line depth
is highest for biscuits consisting of several products, followed by cakes and breads. Britannia
manufactures biscuits for various segments of consumers, types include sugar free biscuits, cream
biscuits and jam biscuits. Some of its popular brands are Britannia Nutrichoice, Britannia Marie Gold,
Britannia Pure Magic, Britannia Little Hearts etc. Britannia Tiger biscuits is the most famous of all
products. Tiger biscuits also cater to the international markets like Australia, Malaysia and Indonesia.
With their joint ventures with dairy companies, Britannia are now able to manufacture and sell cheese,

dahi, ghee and butter. Its products are primarily intended for middle class people India, which forms
the bulk of the population. [EXHIBIT2]
Promotion
Promotion is the one of the major aspects in marketing strategies. By adopting various
promotional activities the company create strong brand image. It also helps in increasing the
brand awareness. It includes advertising, sales promotioins and public relations etc.
Since the brand, Britannia is present for more than 100 years, perception about Britannia is always
good and enjoys high brand recall among consumers, this tends to be a great advantage for
Britannia. Advertisements for Television, print media and billboards are few of the many techniques
used by Britannia in their promotional marketing mix. Britannia has signed agreements with famous
personalities to promote their brand, but this has been different for different products. A bigger part
of their promotional activities is done in the sports sector. Britannia logo tagged cricket bats endorsed
by international players plays an important promotional activity. Britannia also promotes their product
as “essential for good health”, this captures the mind of consumers as nowadays people tend to be
more conscious about the nutrient value of what they consume. Hence, this concludes the Britannia
marketing mix.[EXHIBIT3] and [EXHIBIT5]
Price
It is the most important aspect in company's point of view. Price of the product will be decided
by the company according to the competitor's price.
Britannia is one of the leading food brands in India. The food manufacturing industry is very
competitive. The base of Britannia’s marketing mix pricing strategy is competition. Also the primary
segment for being middle class people, who are highly price sensitive, forces Britannia to play price
war with its competitors. Britannia tries to bundle its products, which in turn reduces the price of their
products, specially this can be seen in their products which are designed for the family packs. Their
strategy of discrimination of prices help them earn larger profits from consumers who are willing to
pay for healthier products and greater benefits. The price of Britannia products is very much
comparable with its competitors, especially with that of Parle products, and they are almost the same.
Place
This plays a major role in the entire marketing system. the company emphasis on it's
distribution network. Proper distribution network gives proper availability of the product.
Britannia distributes its products primarily via retail chain. The online segment, which contributes to
less purchases, has been possible by having tie ups with large ecommerce organizations. Britannia
products can be purchased from online portals. With extensive and strong distribution network
Britannia products, can be found in all large and small urban areas across India. But the rural
distribution network is not as good as that of the urban market. As a large FMCG player in India,
Britannia primarily depends on distributors who then decide on dealers and retailers for distribution.

Britannia has made deals with large retailers like spencers, big bazaar which hosts large quantity of
Britannia products and provides better display location.
Strong Distribution Network
Britannia’s factory all over India and its distribution network makes it easier to reach its product to the
last person standing and that’s the Britannia Advantage.
Year on year it has been expanding and now they have about 30,000 salesman, 52 lakh retail outlet
and growing. We can find Britannia in remotest part of India.
It has strong network that drives value – with more than 50 depots, 800+ trusted vendors, 70+
factories, 300+ stock keeping units.
It also has some of the unusual delivery system like:
- With Boats in backwaters of Kerala.
- With Bullock carts in interior part of Madhya Pradesh.
- With Camel carts in Rajasthan.

- Even Hand Pulled carts in country where ever needed.
Delightful Customer Experience
With all the process, Product and Marketing innovation Britannia is able to transform it into Customer
Delight [Appendix11]

 Showing great signs of Volume growth, growth on sales, EBITDA and gross margins.
 Net Profit rose by 27% CAGR
 Sale of goods at 10% CAGR growth.
Britannia Financials & Market Growth

 Revenue growth in weak performing states post a strong sentiment in increased market share.
 Direct reach has seen 2.5 times growth.
 Rural distribution network has seen 2.6 times growth.

Britannia: Stock Exchange Performance

New launches to drive the growth: After 2 years of lull, Britannia returns to new product launches to drive the
volume growth. This trend of new launches is prevalent with most FMCG companies in FY19 since FY17 – 18
was disrupted by demonetization and GST implementation. However, Britannia aggression is more than its
peers since Britannia wants to transform the organization to packaged food company.
New growth drivers: management is trying to leverage improving macro tailwinds w.r.t volume acceleration.
The company believes the growth drivers would be Cake, Chipita, Dairy and international business. Bread,
cake and Rusk are low penetrated categories in India vs. many countries and have higher share from them as
compare to biscuits. New product launches would be largely in 2HFY19.
Changing revenue pie: Currently 75% of revenue comes from biscuits while other products like cake, dairy,
rusk, bread etc only contributes 25%. Going forward other products contribution in the revenue increase while
biscuits share will come down <70%.
Margin accretive launches: All new product launches would be gross margin accretive since they will cater
to premium segment. Even bread margin has improved significantly after rationalism of cost and change in
sourcing.
New brand logo: Brit has changed the logo to refresh its identity. The new logo adds shades of yellow and
green at the bottom of the old logo that signifies the excitement and goodness respectively.
Focus on effective consumer campaign: The company has revamped its brand strategy and is focusing on
more effective consumer campaigns. On the completion of 100 years, Britannia will be running consumer
campaigns like “Tu sau saal jiyega” to thank the consumers and trying to cover its entire biscuit range with
variety consumers. The company is trying to use digital marketing to maximize its recall.
Distribution: The company sells 1 bn products in a month to cater to 77m households through 5 mn outlets.
The company added 0.33 mn direct reach over the last 15 months to 1.84 mn outlets.
Hindi Belt: Britannia continued to grow faster in its weak state (Rajasthan, Gujrat, UP, MP) that now
contributes ~18 – 20% for Britannia vs. these states contributes ~40% for the industry. These states were
contributing single digit few years back.
Dairy: Management has aggressive plans for ramping its diary business. Currently dairy business is ~Rs 5bn
and plans are to make it ~Rs 15 bn over the next 3 years. VAP would drive the diary business (not looking at
liquid milk). The key categories will be cheese, yoghurt, Beverages and diary whiteners.
International business: Despite having presence in >70 countries, the international business does not
contribute significantly. The SEZ facilities at Mundra (Gujrat) would help in accelerating international business.
The biscuits and rusks manufactured at the Gujarat plant will be exported to international markets such as
North America, The UK; African countries, Singapore, Australia etc.
Drivers for the future growth

Britannia Industries limited is the India's largest manufacturing company covering all sectors of bakery
products and diversifying into dairy products market. Developing and generating trust amongst its consumer
base and delivering quality products had made it success for Britannia.
A robust & vast product pipeline, entry in new categories & geographies and deepening penetration (weak
markets and rural geographies) & investments in brands are likely to help Britannia sustain its outperformance.
As we see the strategic direction of the company, today there is a neck-to-neck competition between the
competitors in the market. Not only the manufacturers but also the home-made bakery products is also giving a
tough competition to Britannia. Imitation of the product is very fast in the FMCG industry. And companies like
ITC, Parle G, are giving direct competition in terms of new product development, market coverage, and gaining
more market share.
In this scenario Britannia should adopt a Push strategy of marketing and on the same time provide the retailers
and distributors with more percentage of margin as compared to the competitors margin so that the retailers
also try to sell the products in the market. Research and Development is also one of the major concern and
should be taken over on a continuous basis as the customers taste and preference and buying behaviour is
changing on a fast pace.
Britannia should join hands with the Government initiatives and support the activities to gain a good image and
presence in the mindset of every Indian consumer.
Britannia will surely be able to fulfil its desired mission of making every third person the consumer of Britannia
if it follows the path of innovation and diversification.
Outlook

EXHIBIT1
EXHIBIT2
Exhibits

EXHIBIT3

EXHIBIT4

EXHEBIT5

Exhibit-6

Exhebit-7
Exhibit:8
Rivalry among
Competitors
Attractions
Low High
1 2 3 4 5
No. of
competitiors Large * Small
Indusrty growth Slow * Fast
Fixed Cost High * Low
Differentiation Low * High
Switching Cost Low * High
Openess of terms
of sales Secret * Open

Excess capacity Large * Small
Stratgic sales High * Low
Score (23/8) 2.9
Conclustion
Rivalry is
medium to
high
Barriers to exit
Attractions
Low High
1 2 3 4 5
Asset specilization High * Small
Cost to exit High * Small
Government
restrictions High * Small
Score 3.33
Conclustion
Barriers to
exist is high
Barriers to Entry
Attractions
Low High
1 2 3 4 5
Econmy of Sclae Small * large
Product
differentiation Low * High
Brand identity Low * High
Swithing cost Low * High
Access to
channels of
distribution Easy * limited
Capital
requirement Small * large
Access to
Technology Easy * Restricted
Access to raw
material Easy * Restricted

Government
protection None * Substantial
Score 3.33
Conclustion -
Barriers to Entry
Barriers to
entry is
Medium to
high
Threats from
Substitutes
Attractions
Low High
1 2 3 4 5
Availabality of
close substitutes High * Low
Switching cost Low * High
Substitute's price-
value Better * Worse
Profitabality of
the producers of
substitutes High * Low
Score 2
Threats from
Substitutes
High (so
attrictiveness
is low for
industry)
Bargaining Power
of Buyers
Attractions
Low High
1 2 3 4 5
Number of Buyers Small * Large
Avaialabality of
Substitutes Many * Few
Switching Cost low * High

Buyer's threat of
forward
integration High * Low
Industry's threat
of backward
integration Low * High
Contribution to
quality low * High
Contribution to
cost High * low
Buyer's
Profitabality Low * High
Score 3.75
Conclusion -
Bargaining Power
of Buyers High
Bargaining Power
of Suppliers
Attractions
Low High
1 2 3 4 5
Number of
Suppliers Small * Large
Avaialabality of
Substitutes Few * Many
Switching Cost High * Low
Supplier's threat
of forward
integration High * Low
Industry's threat
of backward
integration Low * High
Contribution to
quality High * Low
Contribution to
cost Low * High
Industry's
importance to
supplier Low * High
Score 3.5

Conclusion -
Bargaining Power
of Suppliers High
Government
Actions
Attractions
Low High
1 2 3 4 5
Industry
protection Low * High
Industry
regulation
(pollution, etc) High * Low
Customs and tariff
restrictions
abroad High * Low
Score 2.3
Conclusion -
Governament
Actions Low
Overall
Assesment
Attractions
Low High
1 2 3 4 5
Barriers to entry *
Rivalry among
competitors *
Barriers to exit *
Power of buyers *
Power of
suppliers *
Threat of
Substitutes *
Government
action *
Conclusion -
Overall
attractiveness (21/7 =3)
Medium
to high

Appendix1 – http://britannia.co.in/
Appendix2- https://en.wikipedia.org/wiki/Britannia_Industries
Appendix3- http://deepshikhaguptasipreportpdf-161121133314.pdf
Appendix4- https://economictimes.indiatimes.com/industry/cons-products/food/britannia-gets-its-share-of-the-daily-
bread/articleshow/1733323.cms
Appendix5- https://www.livemint.com/Companies/IvPf61tFFUdqHzeLInY3CP/Britannia-shifts-focus-to-direct-supply-
to-operate-with-zer.html
Appendix6- http://agronfoodprocessing.com/for-food-products-distribution-ccd-partners-with-uber/
Appendix-7- https://www.mbaskool.com/marketing-mix/products/16985-britannia.html
Appendix-8 https://www.thehindubusinessline.com/companies/britannia-baking-plans-to-grow-non-biscuit-
sales/article24659294.ece
Appendix-8A https://economictimes.indiatimes.com/industry/cons-products/food/britannia-industries-expects-its-largest-
selling-brand-good-day-will-overtake-countrys-largest-selling-biscuit-brand-parle-g/articleshow/65291433.cms
Appendix-8B https://economictimes.indiatimes.com/markets/expert-view/we-want-to-be-a-total-food-company-enter-
unknown-territories-varun-berry-britannia-industries/articleshow/65306870.cms
Appendix-9 https://www.ibef.org/download/Food-Processing-January-2017.pdf (IBEF executive summary)
Appendix-10 http://www.grantthornton.in/globalassets/1.-member-firms/india/assets/pdfs/food_processing_sector.pdf
(food processing sector - Govt Report 2017)
Appendix-11 http://britannia.co.in/investors/annual-report (Britannia Annual Report)
Appendix-12 http://britannia.co.in/milestones/details
Appendix-13 https://economictimes.indiatimes.com/markets/stocks/news/2200-return-in-10-years-this-100-year-old-
brand-still-has-moats/articleshow/65348753.cms
Appendix

Strategy assignment britannia_industries

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