britannia nutrichoice - future scope

8/20/2019 Britannia Nutrichoice - Future Scope

1/21

1501068 AniketPhadnis

1501074 Aroop Sanyal

1501100 SabyasachiSahu

1501103 Saurabh

Bose1501104 NishantShah

1501108 Suitro!hosh

Group 1

BritanniaIndustries

NutriChoiceMarketing Management


2/21

"able o# $ontentsBritannia %ndustries & An '(er(ie)******************************************************************************************************************3

Timeline of Britannia Industries Limited:......................................................................................................................................3

roduct ortfolio........................................................................................................................................................................... !

Ma"or la#ers................................................................................................................................................................................!

$%ards and &ecognitions:........................................................................................................................................................... .!

Current Trends and rospects in the Biscuit Industr#:..................................................................................................................!

B$! Analysis+*************************************************************************************************************************************************5

The 'og: Tiger Glucose...........................................................................................................................................................(

The Cash Co%: Good 'a# ) Marie............................................................................................................................................ (

The *uestion Mark: Cream Biscuits + ure Magic ) Bour,on...................................................................................................(

The -tar: ealth Biscuits + Nutrichoice................................................................................................................................. ../

,i-esti(e Biscuits & %ndustry '(er(ie)*************************************************************************************************************6

la#ers in the Market..................................................................................................................................................................../

-i0e of the Market........................................................................................................................................................................./

'riers........................................................................................................................................................................................../

Porter.s /i(e /orces***************************************************************************************************************************************7

Bargaining po%er of supplier...................................................................................................................................................2

Bargaining po%er of Bu#ers....................................................................................................................................................2

Threat of Ne% entrants............................................................................................................................................................2

&ialr# among sta,lished rials............................................................................................................................................ 2

Threat of su,stitutes...............................................................................................................................................................2

S'" Analysis***********************************************************************************************************************************************8

Se-entation************************************************************************************************************************************************8

"ar-etin-+******************************************************************************************************************************************************

Geographic..............................................................................................................................................................................4

'emographic...........................................................................................................................................................................4

s#chographic.......................................................................................................................................................................15

Behaioral............................................................................................................................................................................. 15

Positionin-**************************************************************************************************************************************************10

Product 2i#e $ycle****************************************************************************************************************************************11

arketin- i o# Nutrichoice************************************************************************************************************************ 11

The roduct................................................................................................................................................................................ 11

The rice.....................................................................................................................................................................................16

'istri,ution and lace......................................................................................................................................................... .......16

romotion...................................................................................................................................................................................13India7s 8rst health social net%orking site nutrichoiceiealth9:............................................................................................13

T%o sided message in adertising campaign........................................................................................................................ 13

Britannia7s Nutri"ig campaign:...............................................................................................................................................13

ecoendations+***************************************************************************************************************************************14

Increase Glo,al resence................................................................................................................................................... ...1!

lace......................................................................................................................................................................................1!

*ualit# and roduct...............................................................................................................................................................1!

Appendi*****************************************************************************************************************************************************16

-ummar# of &esponses..............................................................................................................................................................1/

BCG $nal#sis..............................................................................................................................................................................1

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Britannia

Britannia %ndustries & An '(er(ie)“123 years ago, in a small house in central Calcutta (now Kolkata) an intrepid baker

made a batch of delicious, golden brown biscuits !hese were meant for o"cers of the

#ritish $a% and their families, people used to the e&acting standards of 'nglish teatime

snacking rom the paeans of ecstasy for that *rst batch of aromatic, +aoursome

biscuits was born a long tradition of delectable baking and its -ndian custodian,

#ritannia.

B%"ANN%A 9A" :9A2":; ":%Nhao@


4/21

Product Port#olioBritannia is India7s faourite food ,rand and a storehouse of po%er ,rands like Good 'a#@

Tiger@ NutriChoice@ MarieGold etc. %hich are household names in India.

Its product portfolio comprises of ,iscuits@ ,read@ cakes@ rusks@ and a host of dair#

products like cheese@ ,eerages@ dair# %hitener. ?ut of its 13 ,iscuit ,rands@ there are (

po%er ,rands that Britannia has identi8ed i0. Good 'a#@ Tiger@ (5:(5@ Marie Gold andNutriChoice.

a=or Players The ma"or competitors of Britannia in the ,iscuit industr# are arle and ITC %hich hae

market shares of 64.(F and 1!.F respectiel#. o%eer@ ne% entrants like Cad,ur#

India Ltd. %hich sells ?reo@ Mcitties and Glao-mith>line hae made the market

competitie.

A)ards and eco-nitions+• Britannia %as a%arded the Glo,al erformance cellence $%ard B# $sia aci8c

*ualit# ?rgani0ation in 6516• Britannia %as oted in top 355 small companies ,# Jor,es glo,al

• Britannia Industries %as a%arded the Brand Kuit# Most Trusted BrandsD according

to consumer sure#s in 6556• Britannia Industries %as conferred %ith the prestigious Golden eacock National

*ualit# $%ard.

$urrent "rends and Prospects in the Biscuit %ndustry+• Biscuits is epected to gro% ,# a alue C$G& of /F(

•


5/21

B$! Analysis+

The BCG anal#sis gies us a ,etter picture of the ,iscuit industr# and ho% the arious

products of Britannia are faring isEOEis the competitors in the market. The market

shares and the gro%th rates are as indicated in the matri and in the $ppendi

Let7s start from the ,ottom:

"he ,o-+ "i-er !lucose The glucose market has taken a ma"or hit due to the arious ne% entries in the ,iscuit

segment. $ %ide range of cookies@ health ,iscuits@ and cream ,iscuits hae pushed

glucose ,iscuits out of the running. $lthough a lot of the lo%er middle class and lo%er

class prefer glucose ,iscuits due to the lo% costs@ the higher income societ# is moing

a%a# from it. arle G has a dominant hold in the glucose market commanding a massie

25F of the market share. ITC holds a market share of around E4 a little less than

Britannia.

"he $ash $o)+ !ood ,ay > arie

Britannia7s cookie ,rand good da# dominates the market share and so does the

u,iKuitous Marie. o%eer@ ,oth these markets are largel# saturated and the gro%thpotential is lo%. Britannia has ,een putting a lot of eort on the cookie segment %ith the

launch of ne% products@ and %e might see the gro%th pick up again courtes# these

factors. Marie is another segment %here Britannia holds a high market share@ ,ut due to

the lack of gro%th is feature as a Cash Co%

"he ?uestion ark+ $rea Biscuits & Pure a-ic > Bourbon

Cream ,iscuits has al%a#s ,een popular %ith a large ariet# of audience@ from small kids

to een adults looking for a Kuick snack.


6/21

"he Star+ :ealth Biscuits & Nutrichoice

NutriChoice@ %hich %as launched in the nineties@ is leading the BriatanniaPs eorts to

create a ne% position of health in the ,iscuit market. The ,rand is no% %orth more than

&s. 65 crore. The health and nutrition ,ased ,iscuit segment in the Indian market is no%

%orth around &s. (55E/55 crore and gro%ing at a faster rate ;Business -tandard=. The

Nutrichoice ,rand has ,een riding on this gro%th since its relaunch in 655/@ %hich

coincided %ith the market stead# moing to%ards a healthier lifest#le. Nutrichoice toda#commands a massie market share of ((F %ith its closest rial ,eing Mcitties from

9nited Biscuits. The health ,iscuit segment has also %itnessed a gro%th rate of !5F

%hich is epected to continue.

The ealth Biscuit market is a relatiel# ne% one in India and is also gro%ing er# rapidl#.

Britannia Nutrichoice has a large chuck of the market share ,ut it is imperatie that the#

capitali0e this gro%th to not lose out on the market to the large num,er of competitors

entering this space %ith arle7s -impl# good and ITC7s Jarmlite

,i-esti(e Biscuits & %ndustry '(er(ie)

Players in the arket The ,iscuit segment in India has ,een historicall# dominated ,# 3 pla#ers: arle@

Britannia and ITC.

9nited Biscuits %hich inented this categor# has ,een a late entrant into the Indian

market ,ut has emerged as a su,stantial pla#er.


7/21

Jocus is primaril# on ,uilding consumer preference %ith a strong drie ,uilt ,#

aggressie adertising.

Porter.s /i(e /orcesThe five forces affecting the industry

Bar-ainin- po)er o# supplier

The agro commodities ;Aour@ fats oil@ sugar= constitute roughl# !(F of all the ra%

materials procured ,# a compan# in this industr#. -ince the num,er of suppliers is high

and fragmented and the ,u#ers are less comparatiel#@ the market faors the ,u#ers

%hen it comes to suppl# demand economics. This gies procurers a high ,argaining

po%er oer suppliers

Bar-ainin- po)er o# Buyers

Biscuits are a lo%Einolement commodit#@ %hich fall under the conenience goods

categor#. ence@ it is er# eas# for consumers to s%itch from one ,rand to another

%ithout aecting their lifest#le. These goods are used for dail# consumption and do not

inole intensie decisionEmaking. There are man# alternaties aaila,le in the ,iscuit

market for a health segment ,# companies like ITC@ Britannia@ and 9B etc.

"hreat o# Ne) entrants The health ,iscuits industr# is supposed to 8ll the %ide gap left in per capita consumption

of ,iscuits ,# proiding a healthier alternatie. There has ,een a shift in the consumption

trend from econom# and midErange segment to health# ,iscuits that remains to ,e

tapped. This industr#@ %hich is currentl# alued at 655 cr in the 1(555 cr ,iscuit market@

has a er# high potential to gro%. ence@ man# companies are in the stage of launching

ne% health conscious ,iscuits that can compete %ith the ma"or pla#ers to o,tain their

share in this gro%ing market. ealth#D ,iscuits are slo%l# emerging as a ne% su,E

categor# in the Indian ,iscuit market@ %ith most of the ma"or homegro%n companieslaunching such products.

i(alry aon- 9stablished ri(als

The ealth


8/21

-trength

Innoatie$dertisement

roidesSealth%ithTaste7,iscuits

roidingman#arietiesofhealth,iscuits

LeadingealthBrand,iscuitinIndiahaingmarketshareofappro.((Finealth,iscuitmarketighBrandalueofBritanniafollo%ed,#ighBrand&ecall

cal )155grams=

Glo,all#lessrecogni0ed.

Lo%penetrationintier3andtier!cities.$ll productsofNutri Choicearenotaaila,leinthesecities.

?pportunit#

Increasingdemandforhealth,iscuit

Targetingtheuntappedmarketintier3andtier!cities

Gro%ingMiddleclass%ithrisingspendingcapacit#

Threat

Counterfeitproductsdestro#ingits,randimageinthemarket.

Increasingpriceofra%material

Competitioninthemarket%

Consumerretentionisa,igchallenge%ithInternational ,randscomingintothemarket.

S'" Analysis

Se-entation

Segment Pros Cons

Demographic Age

• Age group of 25+ are more

health conscious.

Income

• Medium to high income

groups are willing to spend

money on healthier

alternatives.

Education

With a rising educated middleclass, the market acceptance

Age

• It is still not the first choice

of school children and

college students.

Income

• Maority population is

!elow middle class level

and do not !uy !iscuits as

snacks.

Education

•

"ifficult to market such product in low literacy

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9/21

of such products increases. populations

Psychographic

Lifestyle• #he product is tailor made for

the achiever segment of the

population.

Social Class

• #he maority consumer !ase

varies from middle class to

upper class.

Lifestyle• #he survivors might never

find it useful or valua!le

and they constitute a huge

part of the population.

Social Class

• $ower middle class and

working class view health

snacks as a lu%ury.

Behavioral Occasions

• &ealth !iscuit can !e made

into a ha!it for the customers

as a mid meal snacks.

Benefits

• #he '() of the product is its

perception as a health

su!stitute in terms of richness

in fi!re at an afforda!le cost.

Loyalty status

• As a first mover into the

industry accompanied with a

huge !rand name, consumerstend to !e loyal to the !rand.

Occasions

It does not suit the taste

!uds of Indian customers

immediately and would take

time to make it a regular

ha!it.

Benefits• It is perceived as a high cost

product.

Loyalty status

• Many !ig !rands are

entering this segment

!ecause of the huge

potential.

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10/21

"ar-etin-+

!eo-raphic

$ity+ ?ur target of the health product %ill ,e tier 1 and tier 6 cities@ due to greatermarket si0e and ur,an life st#le of the population.

,eo-raphic

A-e+ The primar# age group that is must ,e targeted is from 6( to (( #ears. This age

group segment constitutes more than !5F of the population. This age group is more

health conscious and %ould inest in healthier su,stitutes oer snacks.

%ncoe+ The middle and higher income group is targeted o%ing to their aorda,ilit# of

the product. Nutrichoice has come out %ith a product SNutriChoice eaens7 for the

higher income group making it the premium product. ?n the other hand SNutriChoice

'igestie7 is aimed at the middle income group.

9ducation+ -ince the health ,iscuit is making people a%are of its ,ene8ts@ it is highl#

popular among educated mass and %ith the gro%ing literac#@ the product can target a

greater olume.

Psycho-raphic

2i#estyle+ $ll the health ,iscuits under NutriChoiceis targeting $chieers and -triers.

The $chieers are those people %ho hae %orked their %a# to success. The -triers on

the other hand are people %ho hae a strong %ill po%er and %elcome challenges. The

health products like NutriChoice appeals to them more than common snacks.

Social $lass+ The upper class and upper middle class hae a high amount of spendingha,its in ,u#ing health oriented products hence the health ,iscuits %ill ,e ideal to ,e

targeted on them.

Beha(ioral

'ccasions+


11/21

2oyalty Status+ -ince NutriChoice is one of the 8rst products to ,e launched under

ealth snack@ %e are aiming to hold customers ,ased on the earl# moers and ,rand

name of Britannia.

Suary+


12/21

Product 2i#e $ycle

Product 2i#e $ycle

Sta-e

Sales

The health ,iscuit industr# is a gro%ing industr#@ %here the consumers hae startedgiing preference to health oriented products. The market si0e comprises onl# of the

upper and upper middle class.


13/21

"he PriceNutrichoice chooses dierent price mies for each of its products ranging from IN& 15 to

IN& (5 per 2(gms. $ high ariation in si0e is also proided so as to match a particular

price point@ gien the 8ckle nature of the Indian JMCG Customer

The pricing of each product ariant is unilaterall# determined ,# the a,solute price point

,ecause that determines aorda,ilit# for a large section of consumers. In the recent#ears@ there has ,een a spike in the prices of ra% ingredients coupled %ith a sharp

decline during the same period. Britannia chooses to pass on %hateer ,ene8t the# get

%ith this pricing to the customer. But gien that the demand and su,stituta,ilit# of a

product in the JMCG sector has to largel# remain free of an# ariation@ the compan#

chooses to pass on this ,ene8t ,# increasing the Kuantit# oered at that price point.

,istribution and PlaceBritannia follo%s intensie distri,ution strateg#@ as ,iscuits need to reach the consumers

at their nearest locations. This t#pe of distri,ution helps consumer look for location

conenience.

Britannia follo%s the JMCG channel of distri,ution. The factor# products are 8rst shelledout to the CJ$s ;Carr#ing Jor%arding= agents. These are then sorted and passed on to

the distri,utors across India and then allocated to retailers@ %hich include minor local

kirana stores. The compan# handles the distri,ution to modern trade channels like the

Big Ba0aar@ &eliance Jresh itself. The other channel of sales or distri,ution is also the

institutional channel)trade like otels@ $irlines@ and I&CTC.

The compan# is focusing to improe on its distri,ution footprint to reach a %ider

consumer ,ase. It is inesting heail# on infrastructure to reach out more outlets.

Currentl# the reach of Britannia is 3./ million outlets@ %hich is higher than arle ;3.3

million=. It plans to take manufacturing to consumption centers especiall# in %eak

regions like north and %est.

?n an allEIndia@ the ur,anErural split of ,usiness is /5:!5.There is room for improement

as far as rural penetration goes.

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Conenience

stores 'istri,uti CJ$ JactorCustom

>irana $llocatio -orting


14/21

:5.4

:.(:

15.(6

D sale o# biscuits by distribution #orat E6015F-mall grocer#

stores

other grocer#

retailers

#permarkets)-up

ermarkets

$part from the normal conenience and retails stores@ Britannia is planning to procure

shelf spaces in pharmacies in consistenc# of their products functionalit# to proide health

,ene8ts.

ProotionBritannia NutriChoice has positioned itself as a tast# and health# ,iscuit@ aaila,le at an

aorda,le price and as a result oers ,etter alue for mone#. ?er time@ it %as

perceied as highl# instrumental in representing the gro%ing trend of Indians adopting

the health# lifest#le. Britannia cone#ed this message and consolidated the ,rand of

Nutrichoice through adertising and man# other social media actiities including

,ill,oards@ maga0ines@ teleision ads and point of sales adertising. o%eer@ %ith

Britannia ,eing consolidated in the market@ it follo%s a pull strateg# rather than a push

strateg#.

%ndia.s rst health social net)orkin- site nutrichoice i:ealth+Britannia pioneered India7s 8rst social net%orking site %ith its primar# focus on health.

The %e,site connects thousands of health enthusiasts across India and takes them on a

"ourne# to good healthD. The %e,site also features ,logs and actiities a,out diet control

and nutritional recipes@ ,esides proiding adice on leading a health#@ stressEfree and

dia,etesEfree lifeD. Besides@ it has also partnered %ith man# agencies in conducting

eents %hich hae promoted health# lifest#le.

")o sided essa-e in ad(ertisin- capai-n

Britannia NutriChoice has come up %ith a t%oEsided argument in its ne% adertisement

%here it is positioned mid%a# ,et%een the health ,ene8ts of a salad and the taste of a

chocolateEcoered doughnut. The adertisement then ends %ith a honest conersation%here Britannia sa#s


15/21

ecoendations+

%ncrease !lobal Presence

Britannia Industries as of toda# has er# limited glo,al presence. Though@ It is in "ointenture %ith ,iscuit manufacturing companies in the Middle ast ;-audi $ra,ia and?man=@ it has no presence in the %estern countries.


16/21

e#erences

http:))%%%.mone#control.com)ne%s)cn,cEt1Ecomments)pepsiE,ritanniaEeatEintoEsnackE

marketEtargetEhealthEfans//211.html

http:))pitchonnet.com),log)651!)56)11)constantEinnoationEhelpsE,ritanniasEnutrichoiceE

remainEreleant)

http:))marketingpractice.,logspot.in)651!)51),ritanniaEnutrichoiceEtast#Ehealth.html

http:))%%%.afaKs.com)ne%s)stor#)3251McitiesE'igestieE


17/21

http:))%%%.,usinessEstandard.com)article)management)theE,iscuitE,attlesE

11!165554/11.html

Nutrichoice eaens: http:))food.ndt.com)reie%s),attleEofE,iscuitsEtheE,estEdigestiesE

inEindiaE22642/

Jour 7s ;&eference=: http:))%%%.marketing41.com)marketingEmiE,ritannia)

http:))%%%.indiainfoline.com)article)ne%sE,usiness),ritanniaElaunchesEnutrichoiceE

dia,eticEfriendl#EessentialsE113151/53351.html

http:))%%%.,iscuitfederation.com)induspro8le.htm

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http://www.business-standard.com/article/management/the-biscuit-battles-114120800961_1.htmlhttp://www.business-standard.com/article/management/the-biscuit-battles-114120800961_1.htmlhttp://food.ndtv.com/reviews/battle-of-biscuits-the-best-digestives-in-india-772976http://food.ndtv.com/reviews/battle-of-biscuits-the-best-digestives-in-india-772976http://www.marketing91.com/marketing-mix-britannia/http://www.indiainfoline.com/article/news-business/britannia-launches-nutrichoice-diabetic-friendly-essentials-113101603308_1.htmlhttp://www.indiainfoline.com/article/news-business/britannia-launches-nutrichoice-diabetic-friendly-essentials-113101603308_1.htmlhttp://www.biscuitfederation.com/indus_profile.htmhttp://www.business-standard.com/article/management/the-biscuit-battles-114120800961_1.htmlhttp://www.business-standard.com/article/management/the-biscuit-battles-114120800961_1.htmlhttp://food.ndtv.com/reviews/battle-of-biscuits-the-best-digestives-in-india-772976http://food.ndtv.com/reviews/battle-of-biscuits-the-best-digestives-in-india-772976http://www.marketing91.com/marketing-mix-britannia/http://www.indiainfoline.com/article/news-business/britannia-launches-nutrichoice-diabetic-friendly-essentials-113101603308_1.htmlhttp://www.indiainfoline.com/article/news-business/britannia-launches-nutrichoice-diabetic-friendly-essentials-113101603308_1.htmlhttp://www.biscuitfederation.com/indus_profile.htm


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$ppendi

Appendi

Suary o# esponses

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19/21

1 a g e


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B$! AnalysisBritannia ,iscuits market

share U 3(F

Gr

1Se-ent Specications Products elati(e arket

Share aon-st

:i

sh

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copetitors $

-tar igh M-@ igh

Gro%th

ealth Biscuits E Nutrichoice (( M

*uestion

Mark

Lo% M-@ igh

Gro%th

Cream Biscuits E ure

Magic)Bour,on

65 -u

Cash Co% igh M-@ Lo%gro%th

Cookie) Marie E Good'a#)Marie

35 a

'og Lo% M-@ Lo% gro%th Glucose E Tiger Biscuits 11./ a

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britannia nutrichoice - future scope

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