NutriFast BreadMarketing Plan

Group 6Abha Patankar 13125001Aditya Raghunandan 13125004Anchit Walia 13125007Devki Nandan Bhatt 13125014Rahul Vermani 13125040Shivani Gupta 13125051

What’s in Store

▪ Market Summary

▪ Situation Analysis

▪ Segmentation

▪ Targeted Segments

▪ Positioning

▪ Marketing Budget Break up

▪ Launch Strategy

▪ Distribution

▪ Product Description

▪ SWOT Analysis

▪ Competitors

▪ Product Offering

▪ Pricing & Margins

▪ Breakeven Analysis

▪ Advertising

▪ Future Plans

Market Summary

▪ Indian Bread Industry: Growing at 6% annually

– Target: To capture 1% of market size in 1 year, i.e. 40,000 tones.

• Market Share of Britannia

Amongst industrial players, Britannia Industries lead the market, and is set to

have a value share of 12% in 2012. This was due to its wide distribution

network and considerable brand equity.

• Primary Marketing Objective :

1st year sales revenue of Rs. 227 crore and meeting breakeven point in less

than 18 months

Nutrifast

Situation Analysis

▪ The competitive landscape– 55% of total bread production – unorganized

– Organized sector consists of 1800 small scale bread manufacturers, 25 medium scale and 2 large scale industries

▪ Britannia Industries launched healthier variants of bread in November 2011. It has launched multigrain bread, honey and oats bread, 100% whole-wheat bread and multifibre bread.

▪ Already, national and regional players have bread in these categories. This is going to intensify competition in the healthier variants of bread.

Demographics

Expected members in a

householdTotal

householdsEligible

households

Total Consumption

Capacity(in gms)

Prefered Unit Size

Total Consumption

Capacity(in packets)

Our Sales Target(in gms)

Our Sales Target (in packets)

(1-2) 1 crore 0.7 crore 252*10^9 200 gms 126 crore 5.156*10^9 2.578 crore

(3-5) 4.6 crore 3.2 crore 2304*10^9 400 gms 576 crore 23.59*10^9 5.8925 crore

(6+) 2.2 crore 1.53 crore 2200*10^9 800 gms 275 crore 11.722*10^9 1.46525 crore

Targeted Segmented Customer Need Corresponding Feature

Students

(Consumer Market)

Affordable Food

Nutrition

Quick bite

Meal on the run

Price range from Rs. 15 to Rs. 49for 200 gm to 800 gm

Bread made up of whole meals, oats, pulses, fruits, protein,

vegetables & cheese

Single loaf of Bread sufficient for single person breakfast

Require no add-ons

Tastes really good

Professionals

(Consumer Market)

Quick bite

Healthy & Nutritional

Hassle free meal

Tasty

Anytime Meal

Single loaf of Bread sufficient for single person breakfast

Bread made up of whole meals, oats, pulses, fruits, protein,

vegetables & cheese

No need to cook or bake

Ready to eat

Universal taste

Can be taken as a snack also, crunchy and scrumptious

Families (Consumer Market) Healthy

Quick bites

Food for everyone in the family

Provides complete diet & nutrition

Single loaf of Bread sufficient for single person breakfast

Taste is so good that everyone would like it

Dieticians (Business Market) Healthy Diet

Whole meal

Trust

0% cholesterol, 0% fats, 2% protein, multi vitamin (100% A, B, C)

Bread made up of whole meals, oats, pulses, fruits, protein,

vegetables & cheese

Trust of Britannia

Health Centers / Physicians (Business Market) Trust

Healthy

Economic

Trust of Britannia

0% cholesterol, 0% fats, 2% protein, multi vitamin (100% A, B, C)

Affordable & effective

Incentives like commission & margins

SWOT AnalysisSTRENGTH WEAKNESS

•Innovative Product•Brand Name – Britannia•Pricing•Taste•Strong Distribution Channel•Abundant Raw material•Low Capital requirement

•Sensitive to Commodity Price Fluctuations•Fragmented Cold Chain Supply•Less Consumption of Bread

•Changing Perception•Rising Middle Class & Changing Lifestyle•Large Share of Wallet•Increasing Pie of Organized Sector•Health Consciousness•Meal on the GO•Health in minutes

•Perishable Product•Rising Prices•Large Share of Un-organized Players

OPPORTUNITY THREAT

Product Competitors

Internal External

Positioning Statement

▪ Positioning of Nutrifast– To young, busy nutrition conscious consumers who have little time for breakfast

and meals, Nutrifast is the multi nutrient bread that gives you more energy, protein and nutrition than any other breakfast meal because it has the highest level of protein content and power of pulses & vegetables.

▪ Consumer promise– It’s more than Breakfast, It’s Nutrifast.

Product Offering

Features White bread Brown Bread Multi Grain Nutrifast

Nutrition Low Medium High Very high

Size 400 gm – 600gm 350 gm 350 gm 200 gm – 800 gm

Varients 2 1 1 3

Price range Rs. 14 – 28 Rs. 20 Rs. 22 Rs. 15 – 49

Point of Parity

Made up of whole meal and multi grain flour

On the go meal

Easy to consume

Value for money

Great taste

Point of Differentiation

1st product in bread category to be 100%

cholesterol free and contains 0% fats

Single loaf of bread contains 2% protein

Contains pulses and fruits

High nutritional value

Perpetual Mapping of Nutrifast Bread

Pricing & Margins

Category Total Cost

Estimated

Margin

CP to

Wholesaler CP to Retailer MRP

Expected Revenue

(1st yr)

Expected Breakeven

Point (In yrs)

200 gm 7.175 71% 12.3 13.5 15 317100000 1.287553648

400 gm 14.35 56.79% 22.5 25 27 1384700000 1.061377647

800 gm 28.7 44.60% 41.5 46 49 571400000 0.873292258

Category Unit Cost Total Units Total Cost

Variable

Cost/Unit

Fixed

Cost/Unit

Total Fixed

Cost Profit/Unit Total Margin

Breakeven (in

Units)

Expected

Breakeven(In

yrs)

200 gm 7.175 25780000 184971500 2.675 4.66 120134800 5.125 132122500 20022466.67 1.287553648

400 gm 14.35 58925000 845573750 5.0225 9.3275 549622938 8.15 480238750 55517468.43 1.061377647

800 gm 28.7 14652000 420512400 10.035 18.665 273479580 12.8 187545600 16777888.34 0.873292258

Breakeven Analysis

0

50

100

150

200

250

300

350

400

450

500

0 20000 40000 60000 80000 100000

Capital (crores)

Revenues (Crores)

Quantity Sold

(million grams) Capital (crores) Revenues (Crores)

0 94.32 0

1 94.33 0.005675

5 94.34 0.028375

50 94.4 0.28375

500 95 2.8375

5000 100.2 28.375

10000 106.32 56.75

20000 119.7 113.5

30000 132.4 170.25

40000 145.1 227

50000 157.8 283.75

60000 170.5 340.5

70000 183.12 397.25

80000 195.9 454

Marketing Budget Break up

63.61

7.42

15.9

13.06

Fixed Cost Break up

MarketingBudget

R&D

MarketResearch

Distribution

16.25

42.08

16.67

1210

Marketing Budget Break up

OnlineAdvertisements

TV advertisements

RadioAdvertisements

Bill Boards

PromotionCampaigns

Marketing Budget Break up

Online Advertising Tv Advertising Radio JinglesBill

boards

Promotion/Campaign

You tube Ads

FB Logout Ads Twitter

Cartoon Network Pogo Star Plus

Star Sports NDTV

Radio Mirchi Red FM AIR

Investment/Quarter

7.2 crore 1.8 crore 75 lakh 3.65 crore 3.65 crore 7.3 crore 7.0 crore 3.65 crore 4.32 crore 4.32 crore 3.16 crore 1.8 crore 6 crore

9.75 crore 25.25 crore 10 crore 7.2 crore 6 crore

Gross Total - 60.0 crore

Launch Strategies

▪ Launch plan– Sales promotion campaign in schools, colleges and corporate organizations– Sponsorships in school Quiz Contests and promote the event as ‘Britannia Nutrifast

Quiz Contest’– Stalls in major marketplaces of metropolitan cities

▪ Promotion budget– First six months – around Rs.45 crore

Jan Feb Mar Apr May Jun

Phase 1

Phase 2

Phase 3

Advertising

▪ Strategy & execution– Initial Phase

• January - Sales promotion campaigns

• February – Integrated print/radio/Internet campaign targeting children, professionals and target consumers

• March - Association with popular retail confectionary shops in urban/semi-urban areas and distribute our point-of-purchase displays to support our customers.

• April - Hold a trade sales contest offering prizes for the salesperson and retail organization that sells the most Nutrifast Bread during the four-week period

• May - create a buzz by featuring celebrity voices on FM radio channels, online Buzz by featuring avatar of these celebrities, display of new bill boards in major areas of city

• June - analyze the results of customer satisfaction research for use in future campaigns and efforts in further improving the product.

• product awareness research will help us determine the effectiveness and efficiency of our messages and media.

Distribution

Success Metrics

▪ First year goals : Sales Revenue of Rs. 227 Crore1% market share

▪ Additional year goals: Launch New Products

▪ Measures of success/failure: Through Market Research & Surveys

▪ Requirements for success : High Product awareness

▪ Expansion Plan : Plan to target other parts of India and pay attention to South Asian countries

Nutrifast Advertisement Teaser

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