Summer Internships 2012

PGDM 2011-13

Summer Internship Project Report
On
A study on the distribution channel of Britannia bread
in Jaipur city

Undertaken at

Britannia Industries Ltd.
New Delhi




Prepared By:
Mohit Sharma
Roll No.-11GM033

Company Guide Faculty Guide
Mr. Kamal Arya Ms. Shweta Nahar
(Senior Executive Officer)




DECLARATION


I Mohit Sharma student of Post Graduation Diploma in Management in the Academic year 2011-
13 at IILM-AHL, Jaipur (Rajasthan) hereby declare that I have completed project titled A Study
of the distribution channel of Britannia Bread in Jaipur city as a part of the course requirement
of PGDM of IILM-AHL, Jaipur.
I further declare that the information presented in this project is true and original to the best of
my knowledge.









Date:
Place: (MOHIT SHARMA)








Acknowledgement

The completion of this project gives me an opportunity to convey my regards to all those who
helped me to reach a stage where I have the confidence to launch my career in the competitive
world of management.
I take this opportunity to express my heartfelt gratitude to Mr. Yudhishter Shringhi, Regional
Sales Manager, Bread Britannia Industries Limited for providing this opportunity to complete
my summer training with Britannia Industries Limited.
I wish to express my deep sense of gratitude to my company guide Mr. Kamal Arya, Sales
Executive Officer Bread Britannia Industries Limited who provided me the most needed
guidance, suggestions and support to make this project a wonderful reality.
I would like to express my sincere gratitude toward IILM Academy of Higher Learning,
Jaipur and Britannia Industries Limited (BIL) for giving me this great opportunity to work
and learn through the summer internship program.
These past eight weeks were of great importance as they have added value to my knowledge. I
would like to acknowledge the contribution of persons Mr. Bipin Gupta (Territory sales in
charge), Mr. Abhishek (P.S.M.), Mr. Rajendra Khandelwal (S.S.), Mr. Rana Day as well as all
other people with whom I have interacted during the course of my training. I am grateful to each
and every valuable interaction that bought me to a better understanding.
I am grateful to my faculty guide Ms. Shweta Nahar, faculty associate, IILM-AHL, Jaipur who
endow with me the right direction to complete this project.
I am thankful to my parents, friends who have directly or indirectly supported me and inspired
me in this project.


Regards,
Mohit Sharma



PREFACE


In spite of theoretical knowledge gained through classroom study, a person is incomplete if not
subjected to practical exposure of real corporate world and the challenges and problems that one
has to face at the actual work place. In this context a research project was assigned as the
summer training to the management students by Britannia Industries Limited (BIL). Besides this
assignment being useful to the industry, it also provided the students with practical utility of their
class room learning and exposed the students to the happenings of the real business world.

The IILM Academy of Higher Learning (PGDM) program is considered to be one of the most
reputed professional courses in the field of management and is equivalent to MBA. Under this,
industrial internship is a part of the curriculum of PGDM program. Every student has to undergo
a training of approximately two months and give a brief account of the work he/she performed
during training.

The training gives a practical exposure to the environment of the business world to each student
and also confronts students with practical knowledge. It also gives an opportunity of exposure to
that particular field of specialization in which s/he wants to specialize in. Therefore every trainee
gets the freedom to decide his/her particular field of interest. It also gives a trainee, chance to
have an interaction with people at real workplace who are working at different positions with
different authorities and responsibilities. The project is an attempt in this direction, in which the
trainee has tried to assimilate and depict inference drawn during the study. The trainee hopes that
it will be fruitful to the company and the company can modify/implement its strategy
accordingly.




Abstract

The project titled A study on the distribution channel of Britannia bread in Jaipur city is based
on the primary & secondary data research to analyze the Retailers & Consumers perception and
coverage of the Britannia bread in the market.
This project also focuses on some specific points regarding quality, supply time, man power,
display & visibility & some regional factors i.e. nature of SKU, consumption patters which
affects the demand and ultimately sales of Britannia Bread.
This internship report regarding the Britannia bread is not like any other projects, this report give
the clear picture of bread market awaiting for the Britannia and there is far way to go to capture
the market of bread. It useful form both the sides i.e. for company it will be base for making
further steps for increase the sales and for those who are want research on the same topic will get
the clear idea of the distribution channel and the factors affecting for the same.
This study just not include the research but also it define the in depth study of Britannia
marketing mix and competitive existence in the market, awareness of the product among target
market and last but not the least researchers observation with the suggestion for betterment of
the Britannia to capture the local market.



Contents
Chapter-1 :- Introduction Of Food & beverage industry .............................................................................. 1
BAKERY INDUSTRY .................................................................................................................................... 2
BREAD ....................................................................................................................................................... 3
BRITANNIA DAILY FRESH BREAD ............................................................................................................... 4
INDIAN BREAD HISTORY ............................................................................................................................ 5
EMERGENCE OF THE HEALTHY PRODUCT ................................................................................................. 6
Chapter-2 :-Overview Of Britannia Industry Limited .................................................................................... 7
BOARD OF DIRECTORS .............................................................................................................................. 9
MANAGEMENT TEAM ............................................................................................................................. 10
MILESTONES ............................................................................................................................................ 11
Chapter-3 :-SWOT Analysis ......................................................................................................................... 16
Chapter-4 :-Report on Training program for authorized wholesaler Karnal Bread In Delhi ....................... 18
A. Delhi Training ...................................................................................................................................... 19
a. Cost ............................................................................................................................................. 19
b. ROI (Return on investment) ........................................................................................................ 20
c. Margins ....................................................................................................................................... 20
d. DRCP (Daily route coverage plan) ............................................................................................... 21
f. Problems or Issues ...................................................................................................................... 23
g. Availability of competitors bread with Britannia bread, at visited outlets ................................. 23
Chapter-5 :-Report on A study on the distribution channel of Britannia bread in Jaipur city ................ 24
B. Jaipur City ............................................................................................................................................ 25
RESEARCH METHODOLOGY .................................................................................................................... 25
Chapter-6 :-Data Analysis............................................................................................................................ 28
a. Comparative consumption with Competitors ............................................................................ 29
b. Margins for distributors .............................................................................................................. 30
c. Margins for Retailers ................................................................................................................... 30
d. Distribution Structure ................................................................................................................. 31
e. Individual covered area for supply with indent .......................................................................... 32
f. Existing Infrastructure ................................................................................................................. 33
g. ROI (return on investment) ......................................................................................................... 34
h. Problems or Issues ...................................................................................................................... 34



i. Efficiency of Distributors ............................................................................................................. 35
j. Availability of competitors bread with Britannia bread, at visited outlets ................................. 36
k. Influencing factors for demand ................................................................................................... 36
l. Performance evaluation.............................................................................................................. 37
n. Visibility and display .................................................................................................................... 38
o. Comparative demand of 630 gm (stopped) & 600 gm healthy slice S.K.U. ................................ 39
p. Demand variation before and after price increase (Total of 22 days) ........................................ 40
Competitors Strategy ............................................................................................................................. 40
Chapter-7 :-Comparative study Between Britannia Bread & biscuit distribution channel ......................... 41
Scope of the Study ...................................................................................................................................... 44
Conclusion ................................................................................................................................................... 44
Suggestions ................................................................................................................................................. 45
Limitations of study .................................................................................................................................... 48
Learning ...................................................................................................................................................... 49
Value Additions ........................................................................................................................................... 50
Bibliography ................................................................................................................................................ 51
Annexure ..................................................................................................................................................... 52
Annexure-1.............................................................................................................................................. 52
Annexure-2.............................................................................................................................................. 54
Annexure-3.............................................................................................................................................. 56
Annexure-4.............................................................................................................................................. 58

List of Graphs

DELHI Graph 1 (R.O.I) ............................................................................................................................... 20
Graph 2(Margins of Retailers) ..................................................................................................................... 20
Graph 3 (Problem or Issues) ....................................................................................................................... 23
Graph 4 (Availability of competitors bread with Britannia bread, at visited outlets) ................................ 23
JAIPUR Graph 5 (Total average tray consumption) .................................................................................. 29
Graph 6 (Margin of distributor) .................................................................................................................. 30
Graph 7 (R.O.I.) ........................................................................................................................................... 34
Graph 8 (Number of issues/problems) ....................................................................................................... 34
Graph 9 (Efficiency of distributors) ............................................................................................................. 35



Graph 10 (Availability of competitors bread with Britannia bread, at visited outlets) .............................. 36
Graph 11 (Influencing factor for demand)) ................................................................................................. 36
Graph 12 (S.K.U. in demand/most demanded S.K.U.) ................................................................................ 38
Graph 13 (Comparative demand of 630 gm & 600 gm healthy slice S.K.U.) .............................................. 39
Graph 14 (Demand variation before and after price increase) .................................................................. 40

List of Tables
Table 1 (Individual covered area for supply with detailes))........................................................................ 32
Table 2 (Performance Evaluation) .............................................................................................................. 37
Table 3 (Comparative analysis of Britannia Biscuit and Bread)) ................................................................. 42
Table 4 (Quality related Problems and Issues) ........................................................................................... 45

List of Smart Art
Smart Art 1 (SWOT Analysis) ....................................................................................................................... 17
Smart Art 2 (Distribution Structure) ........................................................................................................... 31
Smart Art 3 (Existing Infrastructure) ........................................................................................................... 33



1





Chapter-1 :- Introduction Of
Food & beverage industry


2
The multi-billion food and beverage industry comprises several markets including bakery
products such as bread, biscuits etc., milk and dairy products, beverages such as tea, coffee,
juices, bottled water etc., snack food, chocolates, etc. beverage, confectionery, processed foods
and others. India's Food and Beverage industry is valued at Rs. 3584 billion. India produces
above 600 million tons of food products every year and is one of the major producers of food in
the world.
The food and beverage industry registered an expected growth rate of 11-12% in 2011-12
(Money Control). With increase in disposable income of consumers, growing awareness among
consumers about health products, rapid urbanization, and increasing popularity of convenience
foods, food and beverage sector is expected to grow at a high rate. This sector holds a huge
potential to grow because of the increase in advertisement spending, awareness campaign about
products in urban as well as rural areas, and large scale transformation.
The food and beverage industry is primarily driven by consumer health trends. Presently, the
food and beverage industry is in a dynamic phase, marked by a high degree of competition. As
product development within the food and beverage market moves towards a focus on health and
nutrition, the growth and development of food manufacturers in the market depends on having
prudent strategies in place, which can be applied globally. In effect, this has created a highly
competitive market place, which fosters growth of participants with a clear vision of "growing
with their customers."
The major players in the "Food and Beverage" Industry is: Heinz, Mars, Marico, Conagra, Pepsi,
HLL, Pillsbury, Nestl, Amul, ITC, Dabur, Britannia, Cadbury, Smith Kline Beecham, The
Surya Food and Agro Private Ltd.

BAKERY INDUSTRY
Bakery industry in India is probably the largest among the processed food industries, production
of which has been increasing steadily in the country. Bakery products once considered as sick
mans diet have now become essential food items of the vast majority of population. The two
major bakery industries, viz., bread and biscuit account for about 82% of the total bakery
products. The annual production of bakery products which includes bread, biscuits, pastries,
cakes, buns, Rusk, etc., most of which are in the unorganized sector, is estimated to be in excess
of 3 million tones. The production of bread and biscuits in the country both in the organized and

3
unorganized sectors is estimated to be around 1.5 million tons and 1.1 million tons respectively.
Of the total production of bread and biscuits, about 35% is produced in the organized sector and
the remaining is manufactured in the unorganized sector. Indian Bakery sector is indicating
significant growth both in terms of volumes and customer base. The sector, which is estimated at
Rs 3,604.13 crore (Money control), is currently registering a 40% growth according to industry
sources.
Though bakery industry in India has been in existence since long, real fillip came only in the
later part of 20
th
century. The contributing factors were urbanization, resulting in increased
demand for ready to eat products at reasonable costs etc. With the quick food culture catching
up, demand for bakery products has increased tremendously. The bakery industry or for the
matter all the businesses catering to baker are witnessing a sort of revolution tremendously.
Some of the well-known and most frequented bakeries in the country are Sweet Chariot, Modern
Bakery, Daily Bread in Bangalore, Monogynies, Birdie's, Croissants in the west, and in the north
and eastern parts of the country, there are quite a few big players too.

BREAD




Dough before first rising Dough after first rising Dough after proofing in tin, ready to bake Pre-sliced bread

Bread is the cheapest and basic instant food available for consumption. Though bread is not a
staple food in the country, its consumption has increased over the years. In India it is still a
secondary staple food when compared to chapatti, puri or rice. The different types of bread
available are White bread, Whole meal or whole wheat bread, mixed grain bread, Kibbled wheat
and cracked wheat bread, Fiber-increased white breads, Rye bread etc.
BIL Significant introduce new in Bread and Cake include Sweet Bread, Milk Bread, Healthy
Slice Bread, Premium Sandwich variants and Fruit chunk cakes, and provided significant
impetus to the Bread and Cake business.

4
BRITANNIA DAILY FRESH BREAD

Till 1958, there were no breads in the organized sector and bread
consumption was a habit typified by the British. Then, a mechanized bread
unit was set up in Delhi with the name "Delbis" which produced sliced
bread and packed it under the Britannia name. Thus, Britannia was not only
the pioneer, but also inculcated in the people of Delhi the habit of eating
white sliced bread.

The Mumbai unit came up in 1963, and there again Britannia was the first branded bread in the
city. From a company offering 2 packs - the 400gm and the 800gm plain white sliced bread -
Britannia has evolved into a company offering 22 packs, catering to a variety of taste and price
segments in the bread consuming market. The last couple of years also saw the introduction of
Whole Wheat Bread as a part of "Eat Healthy, Think Better" credo.
Britannia Daily Fresh Bread, which finds its way to over 6 lakh households daily, is the mainstay
of the companys non-biscuit business at present. Britannia hopes to drive this emerging business
through the exploding modern trade and has already gained access to easy Day, Metro, Carfour,
Trinethra and Fabmall etc. for its breads. Britannia is widely recognized as an innovative
marketer.
In present time Britannia Industry Limited made following S.K.U.:-
1. Jumbo value long bread 700gm
2. Premium bake tuti fruity bread 200g
3. Premium bake fruit bun 170g
4. Daily fresh whole wheat bread 400 g
5. Premium bake vitamin enriched 400g sndwh
6. Premium bake pav 300gm
7. Daily family large bread 400gm
8. Popular bread 400 gm
9. Premium bake pav 400gm
10. Popular bread 200 gm
11. Daily fresh family slice 500 gm

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12. Daily family long bead 800gm
13. Daily family compact bread 400gm
14. Premium bake vit. Enriched 400g long
15. Daily family compact bread 200gm
16. Jumbo value large bread 300gm
17. Daily fresh whole wheat bread 380gm
18. Daily fresh family slice 300gm
19. Daily fresh family slice 200gm
20. Jumbo value compact bread 200gm
21. Healthy slice large bread 600gm
22. Jumbo value large bread 200gm
23. Britannia multigrain bread 400gm
24. Britannia multifiber bread 400gm
25. Britannia honey & oat bread 400gm
26. Britannia 100% whole wheat bread 400gm

INDIAN BREAD HISTORY
The Bread industry is low-tech and low margin industry. In 1977, the Government of India had
reserved bread industry for small scale industries (SSI). The then existing two large units viz.
Britannia Industries Limited and Modern Food Industries Ltd. Were however allowed continuing
on the basis of their respective existing installed capacity.
35 % of the total production comes from the small scale
sector with about 1500-1800 units in operation. The
organized sector accounts for 20% of the total production.
The balance production comes from the unorganized
traditional bakery units operating under cottage tiny sector
numbering approximately 65000 units in the country. BIL
& MFIL are having a market share of 10-12% and 7-8%
respectively. Apart from big players like BIL & MFIL regional players such as Spencers in
South India, Vibbs in Maharashtra, Harvest Gold and Perfect in Delhi etc.

6
Bread being consumed by wide cross-section of the society, the marketing of bread is based on
strong retail distribution networks, which service the customers.
As bread industry is a low margin business, cost control is crucial in sustaining profitability in
the long run.
EMERGENCE OF THE HEALTHY PRODUCT

Along with an increase in demand for the bakery products, the
awareness about health is also on the rise. Bakeries are making
sure that they come out with healthier products. The awareness
of the virtues of products like whole grain, multi grain, Honey
& oat, Multi fiber and such other Yoga health products are
growing in our country. An increase in demand and health
awareness results the demand for product like Yoga product (Multi Fiber, Multi Grain, Honey
& Oat, Whole wheat etc.).







7



Chapter-2 :-Overview Of
Britannia Industry Limited


8
INTRODUCTION TO BRITANNIA INDUSTRIES

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 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 mechanized 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 Indianans 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 cores 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 recognized 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.

9
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. 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 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.

BOARD OF DIRECTORS

Name Designation
Mr. Nusli Neville Wadia Chairman
Ms. Vinita Bali Managing Director
Mr. A.K.Hirjee Director
Dr. Ajai Puri Director
Mr. Avijit Deb Director
Mr. Jeh N Wadia Director
Mr. Keki Dadiseth Director
Mr. Nasser Munjee Director
Mr. Ness Nusli Wadia Director
Mr. Nimesh N Kampani Director
Mr. Pratap Khanna Director
Mr. S.S.Kelkar Director
Dr. Vijay L. Kelkar Director

10
MANAGEMENT TEAM









ANURADHA NARASIMHAN - Category Director - Health & Wellness
B. PRASHANTH - Head of R&D
Dr. K.N. SHASHIKANTH - Head - Corporate Quality
JITENDRA MAHAJAN - Head Procurement
KAILASH H. KAKANI - General Manager - Manufacturing Operations
N R SELVARAJ - General Manager Quality
N. VENKATARAMAN - General Manager Commercial
P. GOVINDAN - Company Secretary & Head of Legal
R. ANAND - Business Operations Director
R K AGARWAL - General Manager - Projects
SHALINI DEGAN - Category Director - Delight & Lifestyle
SHRIDHAR PANSHIKAR - National Sales Director
SUJIT GUHA - General Manager Replenishment
VALIVETI V PADMANABHAM - Head - Corporate IT




11
MILESTONES

1892 The Genesis - Britannia established with an investment of Rs. 295 in Kolkata
1910 Advent of electricity sees operations mechanized
1921 Imported machinery introduced; Britannia becomes the first company east of the
Suez to use gas ovens
1939 44 Sales rise exponentially to Rs.16, 27,202 in 1939
During 1944 sales ramp up by more than eight times to reach Rs.1.36 crore
1975 Britannia Biscuit Company takes over biscuit distribution from Parry's
1978 Public issue - Indian shareholding crosses 60%
1979 Re-christened Britannia Industries Ltd. (BIL)
1983 Sales cross Rs.100 crore
1989 The Executive Office relocated to Bangalore
1992 BIL celebrates its Platinum Jubilee
1993 Wadia Group acquires stake in ABIL, UK and becomes an equal partner with
Group Danone in BIL
1994 Volumes cross 1, 00,000 tons of biscuits
1997 Re-birth - new corporate identity 'Eat Healthy, Think Better' leads to new mission:
'Make every third Indian a Britannia consumer'

12
BIL enters the dairy products market
1999 "Britannia Khao World Cup Jao" - a major success! Profit up by 37%
2000 Forbes Global Ranking - Britannia among Top 300 small companies
2001 BIL ranked one of India's biggest brands
No.1 food brand of the country
Britannia Lagaan Match: India's most successful promotional activity of the year
Maska Chaska: India's most successful FMCG launch
2002 BIL launches joint venture with Fonterra, the world's second largest dairy
company
Britannia New Zealand Foods Pvt. Ltd. is born
Rated as 'One amongst the Top 200 Small Companies of the World' by Forbes
Global
Economic Times ranks BIL India's 2nd Most Trusted Brand
Pure Magic -Winner of the WordStar, Asia star and India star award for
packaging
2003 'Treat Duet'- most successful launch of the year
Britannia Khao World Cup Jao rocks the consumer lives yet again
2004 Britannia accorded the status of being a 'Super brand'
Volumes cross 3, 00,000 tons of biscuits
Good Day adds a new variant - Coconut - in its range

13
2005 Re-birth of Tiger - 'Swasth Khao, Tiger Ban Jao' becomes the popular chant!
Britannia launched 'Greetings' range of premium assorted gift packs
The new plant in Uttaranchal, commissioned ahead of schedule.
The launch of yet another exciting snacking option - Britannia 50-50 Pepper
Chakkar
2006 Britannia re-launched NutriChoice Hi-Fiber Digestive biscuits in an international
large sized biscuit pack.
Britannia acquires 51% stake in Bangalore-based bakery items retailer Daily
Bread.
2007 Britannia industries formed a joint venture with the Khimji Ramdas Group and
acquired a 70 percent beneficial stake in the Dubai-based Strategic Foods
International Co. LLC and 65.4% in the Oman-based Al Sallan Food Industries
Co. SAOG.
Britannia NutriChoice Sugar Out range introduced - 1st of its kind of biscuits to
be launched in India with "No Added Sugar" (Variants - Chocolate Cream,
Orange Cream, and Lifetime)
2008 Britannia NutriChoice 5 Grain biscuits launched - Biscuits with the goodness of 5
health Cereals, and sweetened with Natural honey. Britannia Nutrichoice
promised consumers "Bhook Bhagao, Kuch Healthy Khao"
Britannia launched Iron fortified 'Tiger Banana' biscuits, 'Good Day Classic
Cookies', Low Fat Dahi and renovated 'Marigold'.
2009 Britannia Launches ActiMind - A first of its kind milk based health drink for kids,
which helps improve mental sharpness. Launch of ActiMind marked Britannia's
entry into the beverage segment and has further extended its credo of 'Eat
Healthy, Think Better' to 'Drink Healthy, Think Better' as well!!

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Britannia NutriChoice Nature Spice Crackers launched - Your favorite Cream
Crackers, now made even more exciting with the addition of "Sabut" Ajwain and
Jeera spices.
Britannia takes full control of Daily Bread.
Britannia Industries buys out New Zealand's Fonterra from existing dairy joint
venture, Britannia New Zealand Foods (BNZF). BNZF became a 100 per cent
Britannia subsidiary and was renamed Britannia Dairy Private Limited (BDPL).
Recognizing the changing global trends & health benefits of removing transfats,
Britannia is the first Bakery brand in India to remove transfats from its products.
Wadia Group acquired stake holdings from Group Danone and becomes the
single largest shareholder in BIL.
2010 50-50 Maska Chaska was re-launched with a new masaaledar twist - a delightful
blend of butter and imported flavors along with sprinkling of masala in September
2010.
Tiger enters the Cookies category, with the launch of Krunch Cookies in October.
These cookies are not only high on delight but also high on energy and have been
created keeping in mind the needs of today's kids, these delightful cookies come
in two exciting variants - Fruit & Nut and Choc chips and at an affordable price
point of just Rs 5.
Brand NutriChoice, in keeping with its track record of launching differentiated
healthy snacks, launched Diabetic Friendly Essentials on 14th November, a day
that is world over recognized as World Diabetes Day. The range comprised of 2
variants - Oats Cookies and Ragi Cookies - and is available in top Indian cities.
Britannia was presented the Master Brand 2010 Award by CMO Council in
November 2010.

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Rotary Club of Chennai awarded CSR Award to Britannia in November, for our
work in nutrition.

2011 Always committed to constant innovation, Britannia launched Britannia Healthy
Start in Mumbai in January 2011. Specially designed with Indian tastes in mind,
Healthy Start is a complete range of ready-to-cook breakfast mixes of Upmas,
Pohas, Porridges and Oats that are healthy, delicious, and take just 5 minutes to
cook! This is the only product range in its category that combines the natural
nutrition of multi-grains, 100% real vegetables, pulses and nuts all in one pack.
Britannia received the Most Respected Company Award 2011 from Business
world.
Bourbon received the Most Popular Confectionery Product Preferred by Youth
(Biscuit) Award.
IMCRBNQA (Indian Merchant Chambers Ramakrishna Bajaj National Quality
Award) conferred the Manufacturing Performance Excellence Trophy a National
Quality Award for the 2010 cycle, for Britannia Corporate Office (Bangalore),
Britannia Industries Ltd. (Rudrapur) and Sunandram Foods Pvt Ltd (Mangaldoi,
Guwahati).
Britannia further enhanced its foray into healthy milk based drinks by launching
TigerZor Choc Milk & TigerZor Badam Milk in May 2011. These are
delicious milk based beverages fortified with 5 active nutrients that help in the
overall development of mind and body.





16








Chapter-3 :-SWOT Analysis

17
SWOT ANALYSIS OF BRITANNIA BREAD
Although we all know that Britannia Industry Ltd. is a superior company. But if we really want
to know about any companys current position as well as future scope then the best thing was
SWOT analysis of that company. SWOT stands for strength, weakness, opportunity and threat.
Strength and weakness are the internal qualities of any company which it already consists and on
the basis of these internal qualities what are the future scope in way of positive or negative
known as opportunity and threat which affected by external factor like PESTEL (political,
economical, social, technical, environmental and legal factors).
So on the basis of all above mention point, in my opinion following diagram is show SWOT of
Britannia Ind. Ltd.


Smart Art 1 (SWOT Analysis)
STRENGTHS
1. Brand Name
2. Distribution Structure
3. Number of S.K.U. of Bread
WEAKNESS
1. Less awareness
2. Irregular Quality Mentainence
3. lack of meeting area specific
demand
4. Ignorance of competitor's
strategy (Margins & Replacement)
OPPORTUNITY
1. Bakery industry growing at
40% per annum
2. All major firms are now
supplying fast food at work spot
3. Bread is now becoming staple
food
4. Now people are more health conceious so it
will good for health products in Bread.
THREATS
1. Unorganised Bakery firms
captured the market
2. Raw material cost increasing
due to inflation
3. Loyalty of customer decrease
4. Distributor rehabilitated to
competitor's product

18







Chapter-4 :-Report on
Training program for
authorized wholesaler
Karnal Bread In Delhi

(7/5/2012-11/5/2012)

19
A. Delhi Training
Supply system:-
I found that our supply system was good because all distributors utilize their resources in
optimum manner. They used effective and economic route for distribution but the demand on the
route was not according the capacity of distributors vehicles. Distributors faced different
problems like high rate of replacement, quality related issues etc. Due to these problems
satisfaction level of them was decreased.
The good point which I found that all retail outlets have good potential for product consumption
but they all want following things:-
Improvement in Quality of product
Reduce the fungus problem in bread before expiry date
Packaging should be better etc.

a. Cost :-
During this training program I found that the cost was high. As distributors told me reasons of
high cost were fuel charges, maintenance of vehicle, high replacement etc. And the reasons
which I found for replacement was as following:-
Distributors distribute their old stock on next day, due to this old dated product supplies
issues are increase.
During distribution, packaging was damaged and distributors distribute it with the help of
transparent tape so in my opinion due to air and temperature fungus problem is generated.
The quality of bread from production department is not fine.
The shape of bread was not good in some boxes or packets.





20
b. ROI (Return on investment) :-

Return on investment is positive in my calculation on the basis of given data or facts by the
distributers of different route. This shows that each distributor got profit on their investment.
c. Margins rate
4.225%
2.581%
2.924%
2.250%
0.000%
1.000%
2.000%
3.000%
4.000%
5.000%
Monu Raju Teenu Sonu
Distributors Name
ROI (%)
ROI (%)
2
1
2.25
2.6
2.25
1.5
0.75
1.6
2
1.5 1.5
0.5
1.5 1.5 1.5
0
0.5
1
1.5
2
2.5
3
Britannia Harvest Perfect Milkomen English oven (crimica)
Margins for 750-780 gm bread Margins for Brown bread Margins for small bread
DELHI Graph 1 (R.O.I)
Graph 2(Margins of Retailers)

21
Margin rate of Britannia is good with respect of other competitor especially with Harvest so due
to this reason most of outlets owners want to contain Britannia bread. And the ratio of outlets
was also in favor of us.
d. DRCP (Daily route coverage plan)
In my opinion the DRCP is good for each route on the basis of time of opening retail outlets. The
best way which I found is Janakpuri route, because the coverage route was very sequential and
economic.
Day-1

Day-2
Tilak Nagar
(Pick up point)
Tagor Garden
Rajori Garden
Tilak Nagar Subhash
Nagar
Krishna Park
(Tilak Nagar)
Ganesh Nagar
(Tilak Nagar)
Krishna Puri
(Tilak Nagar)
Janak Puri
Jail Road
Fatah Nagar
Subhash Nagar
Subhash Nagar
Press Colony
Hari Nagar
Tilak Nagar
(Pick up point)

22

Day-3


Day-4
Tilak Nagar
(Pick up point)
Hari Nagar
Subhash Nagar
Tilak Nagar Ashok Nagar Rajori Garden
Tagore Garden
Raghuveer
Nagar
Chokhandi
Tilak Nagar
Fatah Nagar
Subhash Nagar
Tilak Nagar
(Pick up
point)
Janakpuri (C-
5A)
Janakpuri (C-
2A)
Janakpuri (C-
3A)
Janakpuri (C-
5A)
Janakpuri(C-
4E)
Janakpuri (C-
1)
Asalatpur
,Janakpuri
Janakpuri (A-
1B)
Narang colony
Janakpuri
Chander nagar
(A-2B &
3B,Janakpuri
Janta flate (A-
5A),
Janakpuri

23
e. Visibility and display:-
The visibility and display was good almost on each retail outlet but I found that on some outlets
we can improve the visibility. But when I Respondent=retail outlet owner for increase visibility
then most of them ask for rack to display our product. Because they dont have enough place to
display our product.
f. Problems or Issues







g. Availability of competitors bread with Britannia bread, at visited outlets







13%
24%
2%
6%
4% 4%
6%
76%
0%
20%
40%
60%
80%
Fungus Quality Packaging Old date Supply
problem
Customer
care not
responding
Bread shape No problem
Numbers of issues
%
108
106
19
2
7
0
20
40
60
80
100
120
Britannia Harvest Perfect Milkoman English oven
No. of outlet
No. of outlet
Graph 3 (Problem or Issues)
Graph 4 (Availability of competitors bread with Britannia bread, at visited outlets)

24





Chapter-5 :-Report on A
study on the distribution
channel of Britannia bread
in Jaipur city

(13/5/2012-07/7/2012)







25
B. Jaipur City
RESEARCH METHODOLOGY

1. Title of the Study:- A study on the distribution channel of Britannia bread in Jaipur
city

2. Duration of the project work:- 2 Months (7/5/2012 to 7/7/2012)

3. Objectives of the study:
a) Primary objective
The primary objective of the project was to study the distribution channel of
Britannia bread in Jaipur city.
b) Secondary objective
A detailed analysis of Daily Fresh Bread including customer opinions regarding
availability, quality for the same.
To know the satisfaction level of the retailers who deal with daily fresh bread.
(Satisfaction level in terms of service provided to the retailers, quality of the
product and provided margin)

4. Research Design
A research design is the frame work for a study, used as a guide to collect and
analyzed data. A research design ensures that, the study will be relevant to the
problem and, it will use economical procedure.

a) The type of the research: -
Exploratory Research, An exploratory research is conducted to gain ideas and
insights into the problem. It is conducted to increase the marketers familiarity
with the problem and clarify concepts. An exploratory research is appropriate
when very little is known about the problem. Here the purpose of the study was to
find out the factors associate with distribution channel as well as variation in sale
of bread; hence an exploratory design was selected.


26
b) Sample Design: - (Convenience based Sampling)

i) It is basically a form of convenience sampling in which the population elements
are purposely selected based on convenience approach.

c) Sampling Unit: -
The elements available for selection during the sampling process known as
Sample Unit. (a) Retailers & distributors (b) customers as sample unit for my
research.

d) Sample size: -
Initially around 558 outlets were visited. Out of them 100 were identified where
the survey was conducted. These 100 outlets were selected out of 558 shops on
the basis of following characteristics :-
Product availability
Location
Outlet ambience
Relative products
Clientele

e) Second survey was conducted among the end consumers with sample size of 100
through Questionnaire.

f) Third survey was conducted among distributors/dealers through Personal
Interview.
.
5. Location: The research was done in the area of Jaipur City.

6. Data collection method
[
a) Secondary data
The purpose of collection of secondary data was to gain more knowledge about
the project and to have a certain guideline for the project to be carried out

27
properly. For the study, the secondary data was collected from the existing data
regarding sales and distribution in Jaipur city.

b) Primary data
The primary data collected, while keeping certain important point into
consideration, which would help the project to achieve the desired result, which
were expected from the survey like:
What should people be questioned?
What should be the mode of administration of the questionnaire?
What is to be measured?
Can objective answer be obtained by asking the people?
Should the purpose of study be made available to the respondent?
The main objective of collecting primary data is to probe the attitude and opinion of
the respondents. The technique which was used for study was the communication
technique, in which survey was done by Questionnaire from customers and retailers
(Annexure-2&3) and by Personal Interview (Annexure-4) with distributors. These
techniques was decided as it would help to obtain accurate data from
distributors/dealers, retailers and customers.
The following choices were made while collecting primary data
i. Degree of structure : Structured
ii. Degree of disguise : Undisguised
iii. Method of Administration : Personal Interview & Questionnaire









28









Chapter-6 :-Data Analysis

29
Supply system:-
In Jaipur city i found that our supply system is not so good because all distributors not utilized
their resources in optimum manner. Even though they used effective and economic route for
distribution but most of the distributor were engage with other brands and products, so they were
not focus on Britannia bread. Some other reasons like high rate of replacement, quality related
issues etc. are main factors behind low satisfaction level and loyalty of them.
The good point which I found that all retail outlets have good potential for product consumption
but they all want following things:-
Improvement in Quality of product
Reduce the problem of old dated product supply
Demand for some other S.K.U. according regional factors
Margins should be equal to other competitors
Packaging should be better etc.

a. Comparative consumption with Competitors

What is the demand of different brand products into market, in number of tray consumption?
(Respondent=distributor) Some other references feedback like super stockiest and retailers
also include in this data regarding tray consumption.


JAIPUR Graph 5 (Total average tray consumption)
5.94%
11.88%
23.76%
9.90%
26.73%
6.93%
2.97%
6.93%
4.95%
Total Average Tray consumption (%)
Britannia Bread
Harvest
Laxmi
Kalori
Saras
Capital Gold
Modern
Nimbus

30
b. Margins for distributors
What are the margins companies gives you and you give to retailers (Respondent=distributor)
c. Margins for Retailers







2.25
5
7
5.5
7.5
5
2
3.5
4.75
3.5
4.5
5
3
4 4 4 4
2
4
4.5 4.5 4.5
2.5
1.5
3 3 3
1 1 1 1
0
1
2
3
4
5
6
7
8
Britannia Harvest Laxmi Saras Nimbus calori
Margins of Retailers
POP630 POP 400 POP 250 WWB 400 P0P 200 POP 100
1.05
2.3
2.25
3 3
2.5
0.9
2.25
1.25
2.2
2.25
2.5
0.45
1
0.5
1
0.5
1
0.52
1
1.5 1.5 1.5 1.5
1.25
0.5
2
1.5 1.5
2
0.75
1 1 1 1
0
0.5
1
1.5
2
2.5
3
3.5
Britannia Harvest Laxmi Saras Nimbus calori
Margins of Distributors
POP630 POP 400 POP 250 WWB 400 P0P 200 POP 100
Graph 6 (Margin of distributor)

31
Margin rate of Britannia is not good with respect of other competitor. And the difference
between margins which given by Britannia industries ltd. and other competitors were very high
as above graphs shows. Due to this big gape of margins most of outlets owners did not want to
contain Britannia bread. Even if they were ready to do this, distributors were not happy to supply
BIL bread.
d. Distribution Structure
What is stock flow from super stockiest to you & from you to retailers? (Respondent=distributor)

The distribution structure or daily route plan of Britannia bread supply was very economical and
efficient. Because above mention route is decided on the basis of transportation problem concept
where maximum points/beats were covered by TATA ACE on the most economical way. But
due to limited capacity of supply vehicle the supply was completed in two rounds so due to this
the fuel consumption as well as time consumption was increased and it increased the operating
cost of super stockiest.
Britannia industries ltd. also face the problem of high operating cost because the transportation
vehicle not utilize to supply product from factory to Jaipur according its capacity, due to less
indent from Jaipur city.
Consumers
Diffrent area's consumer
Retail Outlets
Total no. of Retail outlets-558
DistributorPath-2
Mansrover, Vashali, Murlipura, Vidhyadhar Nagar
Distributor Path-1
Mansrover, Agrawal farm, Triveni Nagar, Raja Park, Sodala
Super stockist/Wholesaler
Mansrover, Jaipur
Factory
Subrawal food nathupur, kundali
Smart Art 2 (Distribution Structure)

32
e. Individual covered area for supply with indent
How many outlets you cover? (Respondent=distributor)
Table 1 (Individual covered area for supply with detailes))
S.N. Name of
Distributor
or W/s
Contact no. No. of
Beat
Market No. of
Covered
Outlet
Indent
(Avg.)
Mode of di
Stribution


1 Maateswari
Agency
9672319809 2 Agrawal
farm,
Mansrover
67 19 Bike, Bicycle
2 Niraj Agency 9001494966 3 Vaishali,
Khatipura,
Nirman
Nagar
128 26 Two Tata
Ace, Bicycle
3 Bansal
Agency
9694520213 2 Nirman
Nagar,
Mahesh
Nagar
44 17 Maruti Van,
Luna
4 Gaurav
Agency
9929197560 1 Mansrover 23 8 Bike
5 Shyam
Agency
8947857573 3 Sodala, Devi
Nagar
55 20 Auto, Riksha,
Bicycle
6 Shiv Charan 9887343121 1 Murlipura,
Vidhyadhar
Nagar
58 27 Bike
7 Banti 9549287237 2 Vidhyadhar
Nagar,
Ambabari
41 18 Two Bike
8 Sandeep Pal 9782630233 3 Raja Park,
janta colony
142 46 Three
Bicycle
Total (Including 49 new added outlets) 558 181 17

33
f. Existing Infrastructure
(Respondent=distributor)
a. How many hawkers or distributors do you have?
b. What are the average working hours for a hawkers or distributors?
c. Which mode of supply (Vehicle) do you have?
d. How you decided the route plan of distribution?

On the basis of communication with distributor through personal interview above information
regarding existing infrastructure (man power, resources, locations and no. of outlets) available
which shows that still a huge area of Jaipur is untouched so we can focus on it. But for this man
force is required in Jaipur with some other resources which we can extend with the help of super
stockiest of Jaipur.
It also gives insights of current position of market for Britannia bread and reflects the
performance of each individual.

Man Power
1 Super stockist
0 T.S.I
1 P.S.M.
17 Beat
Resources
1 Tata Ace (Super stockist)
2 Byke (P.S.M.)
6 Bicycle
5 Byke
2 Tata Ace
3 Auto Riksha
1 Van, 1 Riksha & 1 Luna
Locations
1 Mansrover 8 Devi Nagar
2 Agrawal farm 9 Bandhu Nagar
3 Vaishali Nagar 10 Murlipura
4 Khatipura 11 Vidhyadhar Nagar
5 Nirman Nagar 12 Amba bari
6 Mahesh Nagar 13 Raja Park, Adarsh
7 sodala 14 Janta Colony
No. of Outlets
Mansrover, Agrawal farm -90
Vaishali Nagar, Khatipura -98
Nirman, Mahesh Nagar - 74
Sodala, Devi nagar -55
Bandhu Nagar, Murlipura -58
Vidhyadhar Nagar, Amba bari-41
Raja Park, janta Colony etc. - 142
Existing
Infrastructure
Smart Art 3 (Existing Infrastructure)

34
g. ROI (return on investment)
a. What kind of expenses you spent during bread supply? (Respondent=distributor)
b. What is a salary structure of you or your hawkers?

Return on investment is positive in my calculation on the basis of given data or facts by the
distributers of different route mention in above Graph. This shows that each distributor got profit
on their investment.
h. Problems or Issues
What is the reason behind having multiple brands? (Respondent=distributor)
5.052%
2.428%
1.778% 1.897%
8.171%
3.982%
0.000%
2.000%
4.000%
6.000%
8.000%
10.000%
Shivcharan ji
(Murlipura)
Bunty
(Vidhyadhar
Nagar)
Neeraj
(Vashali
Nagar)
Sandeep
(Rajapark)
Gaurav
(Mansrover)
Anand
(Mansrover)
Distributors Name with location
ROI (%)
ROI (%)
3%
72%
22%
32%
7%
4%
8%
28%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Fungus Quality Packaging Old date Supply
problem
Customer
care not
responding
Bread shape No problem
Numbers of issues (in %)
%
Graph 7 (R.O.I.)
Graph 8 (Number of issues/problems)

35
When I discussed above mentioned question with distributors then the answers came with lots of
issues and problems. And these same problems were mention by retailers as well as by some
customer into questionnaire. And they all want from Britannia to reduce these problems. As we
can easily understand from above graph, that the problem of poor quality is very high in %. So to
increase the sale of bread BIL should be focus on these issues. Although during my SIP the
quality was improved but it was not regular. Due to this loyalty and satisfaction of consumers
were very low for bread.
i. Efficiency of Distributors
What is the maximum capacity of sale you have? (Respondent=distributors)


Graph 9 (Efficiency of distributors)
When I asked above mention question to all distributors then they all said that they have good
selling capacity of Britannia bread. If Britannia solve all the issues especially rapper and quality
improvement they should automatically increase its sale. Above mention graph show the
comparative representation of demand or indent of Britannia bread between estimated capacity
and present order based data. (On the basis of given data by all distributors)

30
35
100
80
90
25
10
24
50
20
0
20
40
60
80
100
120
Murlipura Vidhyadhar Nagar Vashali Nagar Rajapark Mansrover
Indent order in number of tray
Maximum capacity Right now

36
j. Availability of competitors bread with Britannia bread, at visited outlets
i l -| | in r ` i iii lin | (Respondent=retailers)
When I visited retail outlets during my survey then I found that retailers had more than one brand
of bread on their shop. And reason behind it as above mention margin and some other issues. So
on the basis of questionnaire and presence of different brand the graphical representation shows
the number of outlets which have different brands.
k. Influencing factors for demand
l - li ^- ln i - i i l^i r `
i si r i iii r `
| l-i r n ii iil^n ^ii - ii r| (Respondent=retailers & customers)
558
106
296
360
195
78
114
0
100
200
300
400
500
600
Britannia Harvest Saras Laxmi kalori Nimbus Capital gold
No. of outlet (From 558 outlets)
No. of outlet (From 558 outlets)
Graph 10 (Availability of competitors bread with Britannia bread, at visited outlets)
36%
64%
51%
0%
20%
40%
60%
80%
Margin Quality old packaging in red color
Influencing factors (in %)
Influencing factors (in %)
Graph 11 (Influencing factor for demand))

37
On the basis of feedback which I got from all my respondents in research of above mentioned
questions, I concluded that majorly three factors mentioned in graph play vital role in growth of
sales. If Britannia Industries Limited focused on these three points, according to me on the basis
of analysis sale will increase with almost 13-16%. Distributors told me that the old packaging
which came in red color was more attractive and effective, so they actually asked for change new
packaging in older one.
l. Performance evaluation
(On instruction of Mr. Kamal Arya, Company guide)
l - li -| lnlli -ir - ln| i i | l^l- n r `
lnlli ,ii i| --ii i -iii li ini r| (Respondent=retailers & distributors)
Table 2 (Performance Evaluation)

On the basis of observation and feedback which was taken by respondents regarding the
performance of channel members.

Performance Evaluation
Parameters
Mr. Rajendra
Khandelwal (S.S.)
Mr. Bipin
Gupta (T.S.I.)
Mr. Abhishek
(P.S.M.)
Mr. Muksh
(P.S.M.)
Brand & Product
awareness
4 4 4 3
Presentation 4 4 4 2
Communication 4 3 3 2
Stress handling 4 4 4 2
Critical Decision 4 4 4 2
Behavior 4 5 4 3
Convincing skill 5 4 4 3
Interpersonal skills 4 5 4 3
IT knowledge 4 3 4 2
Total 37 36 35 22
Five scale rating:- 5- Excellent , 4 - Good , 3 - Average, 2 - Poor,1 - Very bad

38
m. S.K.U. in demand / Most demanded SKU
-i - - ^ili -in ^i . . . i- i lii ni| (Respondent=retailers &
costumer)

Graph 12 (S.K.U. in demand/most demanded S.K.U.)
Regional factors always impact the demand of a product, similarly in Jaipur some specific
indents are in good demand as taken feedback from retailers, distributors as well as customers. If
Britannia Industries Limited will provide above mention S.K.U in Jaipur city then as market
trend says our sale would be increase.
n. Visibility and display
The visibility and display was fine on some retail outlet, but I found that on other outlets we can
improve the visibility. But when I asked to outlet owner for increase visibility and display then
most of them ask for stand to display our product. Because they dont have enough place to
display our product. So to increase the visibility at point of parity at shop we should provide
them stand or other promotional products. And to motivate them to increase visibility some
schemes should also be there.

30
5
10
2
3
8
0
5
10
15
20
25
30
35
Pop 630gm Pop 400 gm Pop 300 gm 100 gm Pav 9 piece one pc. Ban
Estimated demand in tons
(Based on competitor product demand)
Estimated demand in tons (Based on competitor product demand)

39
o. Comparative demand of 630 gm (stopped) & 600 gm healthy slice S.K.U.

Graph 13 (Comparative demand of 630 gm & 600 gm healthy slice S.K.U.)
The main reason behind this huge difference (before and after stopped 630gm S.K.U.) in demand
of both S.K.Us is mainly the packaging. In Jaipur city the mentality of people is different in
respect of other state. They actually ask for sealing packaging of bread in respect of other
packaging which we use in Healthy Slice 600 gm. And excuses which I heard through retailers
are so funny. They said that customer think the number of slices in bread packet are manipulated
by retailers and then again pack it.

So all distributors as well as retailers are demand for sealing packaging as well as the shape
modification of slices.
Other factor which also associates with the sales variation was packet M.R.P. Actually retailers
said that due to M.R.P of Rs. 22/- they faced problem of change. So they want that company
provide all S.K.U. in round figure amount.
98
43
0
20
40
60
80
100
120
Britannia
Average Demand of S.K.U. (in No. of Tray)
Popular 630 gm Healthy slice 600 gm

40
p. Demand variation before and after price increase (Total of 22 days)

Graph 14 (Demand variation before and after price increase)

As interpreted through the graph that the there is a inverse relation between the price and the
demand of the Britannia bread. The new prices for the bread come in the effect from dated
7/6/2012. The blue bar show the total of indent from 16/5/2012 to 6/6/2012 and the red bar
shows the total of indent from 7/6/2012 to 28/6/2012. So we can easily understand that the
impact of price increasing was affecting us negatively. And reason behind it was margin of
retailers as well as distributors, which was not increase accordingly. And other competitors were
not change their prices.
Competitors Strategy
Mainly our biggest competitors over here are local players like Saras, Laxmi etc. and they
captured huge market. In my opinion the reasons behind their good performance are as
followings:-
1. They provide fresh bread to dealers or retails.
2. They provide all those S.K.U. which required in territory.
3. They supply bread on time according dealer requirements.
4. They provide 100% replacement.
5. They also provide free wrappers to dealer to compensate damage packaging.
6. They clear all accounts of dealer on time.
4432
3433
0
1000
2000
3000
4000
5000
Demand/Indent of bread
Demand variatiion for total of 22 days
(before & after price increased in No. of
trays)
Before After

41






Chapter-7 :-Comparative
study Between Britannia
Bread & biscuit distribution
channel


42
Build upon the basis of personal interview responses of Mr. Manish (T.S.I., biscuit
department)
Table 3 (Comparative analysis of Britannia Biscuit and Bread))
Britannia Industries Limited

Biscuit Bread
Total Number of S.K.U. 288 26
In Jaipur 144 12
Distribution Channel 3 Channel 5 Channel
Indent Order Before 24 hours Before 48 hours
Supply Time 11a.m to 5 p.m. 5 a.m. to 11 a.m.
Source of Transport Auto Riksha, pick up etc. Tata ace, bike, bicycle etc.
No. of Distributors 5 1
No. of T.S.I. 2 0
No. of P.S.M. 1 1
No. of AWSM
(authorized wholesaler sales man)
20 0
Number of outlets 4000 558
Number of beat 12 17
Covered Area Almost whole Jaipur 12 Areas
Toughest Competitors I.T.C., Priya gold Saras, Laxmi
Replacement 0.7% through third party 2.5%
Peak Session Quarter 2 Quarter 3
Weak Session Quarter 4 Quarter 1
Margin Almost 5.65%-7% Almost 10%-12%
Online Software(Distribution) Udaan Raftar
Issues Breakage especially in
Good day biscuit etc.
Old dated, fungus, breakage
rapper, quality etc.
Stock In huge amount Perishable so minimum


43
Distribution Channel:-
Britannia has different channel for both Biscuit and Bread segment, whereas in Biscuit
distribution channel almost 90% supply or distribution is depend on Retailers and 10% supply
depend on wholesaler. In Bread distribution channel the scenario is absolutely vice versa, almost
10% supply or distribution is depend on Retailers and 90% supply depend on wholesaler. When I
was going through with the reason of this huge difference I found that the main reason behind
this different scenario was the product nature. Bread is a perishable product so it is not easy to
stock it in huge amount. So the role of wholesaler is increased in it. While in biscuit only few
wholesalers required for distribution because they can easily stock a huge amount of product for
long time.
As above mention Biscuit has 3 channels and Bread has 5 channels in their distribution chain as
following:-
Bread Distribution Channel Biscuit Distribution Channel


Factory
Authorized
wholsaler
Super stockiest
/wholesaler
Distributor
Retail Outlets
Consumers
Hawker
Deport / C&F
Authorized
wholsaler
Super stockiest
/wholesaler
Retail
Outlets
Consumers

44
Scope of the Study

Every research has its own scope same it has too. The focal point of this research is to identify
the market penetration level of the Britannia bread and the available competitors for the bread
segments and their USP and the area of the scope for formulate the strategy to capture the more
market like Britannia biscuits.


Conclusion

After an intense study and analysis of 60 days, a deep sense of knowledge comes into the light in
the form of conclusion.
a. In Jaipur market among all the brand of bread (10) Britannia is on 7
th
rank.
b. Margins of Britannia bread are lesser than other competitors for both retailers &
distributors.
c. In case of Britannia Industries Limited the quality of bread is not consistently good. As
well as packaging need to be improved.











45
Suggestions
To execute our strategy or plan we required following things as form of our proposal:-
1. Improvement in quality should be there: - Quality is the major problem for our
product. There are many quality related issues mentioned by dealers, Retail outlets as
well as customer like
1. Dry quality bread break before time
2. Partially baked
3. Withered packaging
4. Under weight
5. Hard slices
6. Variation in number of slices in different packets
7. Supply of old dated product.
On regular basis due to this the trust and loyalty of customers towards our product
is decrease. So its humble request to Company, please ask to production
department for improve the quality.
Table 4 (Quality related Problems and Issues)


Under weight:-

Lot no.52s18/ use by 9.6.12 Lot no.--------/ use by 16.6.12 Lot no.52j18/ use by 9.6.12
Variation in number of slices(13,15,16)

Lot no.52j18/ use by 9.6.12 Lot no.52j18/ use by 9.6.12 Lot no.52j18/ use by 9.6.12

46
2. Supply should be on time :- As we all know that success of our bread is totally depend
on efficiency of system, so please ask to Kamal transport to make sure supply on time
and if it is possible than till 12.00-1.00 a.m. (supply on time). Because in present
duration the supply time was almost 2.00 a.m. to 3.30 a.m. This is too late for supply
bread to dealers point.

3. Coding system should be there:- Normally most of time distributors faced the problem
of old dated material supply. And when I discussed this matter with production
departments concerned person then they told me that uploading of tray is always done
under supervision of company person. So in my opinion the problem was in mid of the
route. To solve this problem if it is possible different coding should be there for different
city like Jaipur and others.

4. Man power should be increase:- as we know the Rajasthan territory is very large so
minimum 2 PSM is required to cover Jaipur as well as kotputali area. There is also need
of one more Super stockiest because if we want to increase our beats then to make sure
the supply of bread on time at each point a S.S. is required in V.K.I area or old city.

5. Margins should be Increase:-Margins of distributors should be increase; if we increase
the margins of distributors then in my opinion the loyalty of them will surely increased
and only focus on Britannia bread in respect of multiple brands.

6. Display & Visibility:- Visibility of our Bread is good on outlets but it can be moderated,
because some of retailers dont have enough space to display Britannia Bread. They
demand for rack or something else to place Britannia bread. And also we can distribute
some brochures or other promotional material with extra schemes to retailers so that the
awareness of our bread will increase.

7. SKU *:-As we know each state has its own requirement in product so if we can make
some new SKU of bread then we can increase our sale by almost 58 ton (based on
competitor product demand) , and mainly our 630 gm popular S.K.U. which was
recently close was maximum sold S.K.U. in Jaipur and the sale of this S.K.U. was almost
180 tray in a day, details of required S.K.U. are as following:-


47

S.K.U. MRP Expected Sale
(gm.) (Rs/-) (Based on competitor product demand)
Popular 600 gm 20/- 30 tons
Popular (400 gm) high volume 5 tons
Popular (300 gm) cc 10/- 10 tons
Popular (100 gm) 6/- 2 tons
Pav (300 gm) 9 Piece 16 /- 3 tons
one Pc. 60gm. ban 5/- 8 tons
Total 58 tons


Note-* S.K.U. indents is expected on basis of the competitors performance as well as the
feedback collected from distributor through questionnaire and personal interview.













48
Limitations of study

1. Customers were not aware about Britannia bread.
2. Some retailers were not interested to share their views.
3. Super stockiest was unable to distribute our bread at any new beat or point due to lack of
transportation.
4. Regular monitoring of each distributor was typical due to lack of man power.
5. There were lots of problems at initial time due to miscommunication between team
members regarding distributors different issues.

















49
Learning

Learning is a treasure that will follow its owner everywhere. We learn more by looking for the
answer to a question and not finding it than we do from learning the answer itself.
The duration of two months was very fruitful to me. Each and every moment of my training
taught me new things which will definitely help me in my future.
I learnt the following:
i. Practical application of research.
ii. Working with people both superiors and subordinates.
iii. I learned the value of responsibility, need for sincerity & dedication, self motivation and
conscientious.
iv. I had the exposure to selling techniques.
v. I learned to handle customers queries & objections.
vi. To do better marketing or sale of a product, product awareness is must.
vii. All competitors strategy and position into market is also crucial.
viii. As a senior it is very important that we understand the subordinates personal as well as
professional problems.
ix. In a business each level employee engagement is important for company's growth.
x. Before taking any decision, there should be some research over there.
xi. Team spirit is very important a whole team can give best result of any task.
xii. Networking is a key of success, which I personally feel during my SIP.
xiii. In industry only that person can sustain who always being active with all updates
regarding market as well as their company's activities.






50
Value Additions

There are some value addition given by researcher to the company apart from the pre decided
works are as follows:
Targeted 7 dealers to make them a part of Britannia distribution channel to boost the sales
of Britannia bread in the local market.

Targeted 3 super stockiest or authorized wholesalers to make them a part of Britannia
distribution channel to boost the sales of Britannia bread in the local market.

Within the duration of tanning apart from training work researcher added the new
channel members (21 retailers) as retailers with the Britannia distribution network. Those
are now actively working with Britannia.

There were some issues with the super stockiest of the Britannia and distributor. it really
hampered the sales and brand image of the company, So researcher personally met and
found the way out of it. At last now Britannia is working with the old and loyal super
stockiest with the satisfactory mode.
(http://www.google.co.in/#hl=en&sclient=psy-
ab&q=britannia+industries+ltd+delhi&oq=britannia+industries+ltd&gs_l=hp.1.2.0l4.1266.11175
.0.14591.30.27.3.0.0.1.1560.14719.4-13j7j4j0j1.25.0.ciatsh..0.0...1.Lsl-
xRMLSYs&pbx=1&bav=on.2,or.r_gc.r_pw.r_qf.,cf.osb&f)
(http://www.britannia.co.in/companyoverview_overview.htm)
(http://www.britannia.co.in/managementteam_profiles.htm)
(http://www.britannia.co.in/milestones.htm)
(http://www.moneycontrol.com/stocksmarketsindia/)
(http://www.moneycontrol.com/india/stockpricequote/foodprocessing/britanniaindustries/BI)
(http://www.moneycontrol.com/financials/britanniaindustries/results/yearly/BI#BI)

51
Bibliography

http://www.britannia.co.in/companyoverview_overview.htm. (n.d.). Retrieved Aprail 18, 2012,
from http://www.britannia.co.in.
http://www.britannia.co.in/managementteam_profiles.htm. (n.d.). Retrieved Aprail 18, 2012,
from http://www.britannia.co.in.
http://www.britannia.co.in/milestones.htm. (n.d.). Retrieved Aprail 18, 2012, from
http://www.britannia.co.in.
http://www.google.co.in/#hl=en&sclient=psy-
ab&q=britannia+industries+ltd+delhi&oq=britannia+industries+ltd&gs_l=hp. Retrieved May
14, 2012, from http://www.google.co.in.
http://www.moneycontrol.com/financials/britanniaindustries/results/yearly/BI#BI. (n.d.).
Retrieved July 4, 2012, from http://www.moneycontrol.com.
http://www.moneycontrol.com/india/stockpricequote/foodprocessing/britanniaindustries/BI.
(n.d.). Retrieved July 4, 2012, from http://www.moneycontrol.com.
http://www.moneycontrol.com/stocksmarketsindia/. (n.d.). Retrieved July 4, 2012, from
http://www.moneycontrol.com.


K.K.Khanna. (2011). Physical Distribution Management Logistical Approach. Himalaya
Publishing House.
Kotler, P. (2009). Marketing Management. Pearson Education.
Satish K. Kapoor, P. K. (2010). Basics of Distriution Management. PHI Learning.


(Kotler, 2009)
(Satish K. Kapoor, 2010)
(K.K.Khanna, 2011)


52
Annexure
Annexure-1
Project Schedule:-
A STUDY ON THE DISTRIBUTION CHANNEL OF BRITANNIA BREAD IN JAIPUR
CITY
A. IN DELHI
DATE Market visit plan
7/5/2012 Factory visit shakun CP
8/5/2012 Market visit with Mr. Monu in area Hari nagar-Subhash nagar
9/5/2012 Market visit with Mr. Raju in area Rajori garden-Tilak Nagar
10/5/2012 Market visit with Mr. Sonu in area Rajori garden
11/5/2012 Market visit with Mr. Teenu in area Janakpuri
12/5/2012 Market visit with Mr. Sonu in area Shiv nagar

Task:-
1. Understand Supply system and then identify cost, capacity and ROI for working for
the route (supply chart).

2. DRCP (daily route coverage plan) to improve service level as per the retailer's
requirements.

3. Study on margin, comparison with major four competitors.

4. Scope of display & visibility on retails.
(Also to plan same for Jaipur)


53
B. IN JAIPUR Date:-14/5/2012
1. Study Present distribution channel.

2. Compare this channel with best in Britannia (Biscuit distribution channel) work out
strategies in Jaipur for distribution.

3. Make a proposal for Jaipur distribution channel. To contribute in maximizing distribution
in Jaipur city.

4. Workout to maximize display & visibility in Jaipur city on key potential outlets.

C. IN JAIPUR
1. Doctors visit & convincing in Jaipur to gain benefit for our health segment bread.
(Not executed due to unavailability of Yoga-health product)


54
The Research which is conducted is purely an academic research for the purpose of summer
training project. I would appreciate if you could provide some time to fill the questionnaire.
Questionnaire for Retailers:- (please tick mark on your choice)

1. i l -| | in r ` i iii lin |
() l-li () ri^ -- () ~i-|
() () i | () l-
() .....................................

2. -| l^i i | i i ii, l ri ni ni`
........................................................................................................................................................................
........................................................................................................................................................................

3. i ,ii lnl in i l i ^i| | i` ... ii|
........................................................................................................................................................................
........................................................................................................................................................................

4. | l-i rn ii iil^n ^ii - ii r |
() -il () ni^-ni () l--
() ln () () - ~ (-.i.|.)
(^) nir -in (i) .................................................

5. l-li -| lnlli -ir - ln| i i | l^l- n r `
..............................................................................................................................................................

6. lnlli ,ii i| --ii i -iii li ini r|
() r-n () r-n


R
Annexure-2


55
7. | i; i in -`
() in r s n () in s / n
() in / s n () in s s n

8. l--|- .......................................(i- li) ,ii i | ln ln | in| r `
() ri () r|

9. l--|- i i ln ^ri`
() rn si () si
() in () i

10. -| in ri ^ii in -il `
() ra ii () i .ra i
() .ra i z i () z i z.ra i
() z.ra i s i () ..........................

11. -i- - ^i li -i n ^i .. . i- i lii ni |
() aa ni- zaa n i- aani- saani- ............
() i^ s | z | .............
() | z | .............
() .. . ...........................................................................................................................

12. l-li ^- ln i - i i l^i r `
....................................................................................................................................................................
........................................................................................................................................................................
......................................................................................................................................................................

i^i i-
ii r n iii| -nin


56
The Research which is conducted is purely an academic research for the purpose of
summer training project. I would appreciate if you could provide some time to fill the
questionnaire.
Questionnaire for Consumers:- (please tick mark on your choice)

1. i i l-li -| | --- | r `
() ri () r|

2. l ri ni i ; l i| - in `
() rn s| () s|
() in () ii
ii.........................................................................................................................................................
...................................................................................................................................................................

3. l r| ni --- r| i i l- - ii `
() ini () i n - n r
() i l-,l^|ll-| -i () ..........................................

4. i l- - l -| | iii n r `
() l-li () ri^ --
() ~i-| ()
() i | () l-
() .....................................
ii.............................................................................................................................................................
........................................................................................................................................................................

5. i i| r n r| i i - ini n r `
() ri () r|

c
Annexure-3


57
6. i si r i iii r `
() i- () ni^-ni
() ln ()

7. l-li ^- ln i - i i l^i r `
........................................................................................................................................................................
........................................................................................................................................................................

8. l -li ,ii -- --- l | i ^i| -|- i - i
i r n `
........................................................................................................................................................................
................................................................................................................................................................

9. i -ni l- i| | iii n r `
() i- ri;- -i; () i
() r~| -i; () -| ^ .................................

10. i i - - inni i i in -i- i ri ni r `
() l^ni () i-ii nlnl^lii
() ..i .| () ................................................

11. nii^
........................................................................................................................................................................
........................................................................................................................................................................
........................................................................................................................................................................

i^i i-
ii r n iii| -nin


58
The Research which is conducted is purely an academic research for the purpose of
summer training project. I would appreciate if you could provide some time to give the
answers of following question.
Discussion questions for Distributors in Personal Interview
1. What is stock flow from super stockiest to you & from you to retailers?
2. What is the demand of different brand products into market, in number of tray
consumption?
3. What are the margins companies gives you and you give to retailers?
4. How many outlets you cover?
5. What are the bases of outlet classification you follow?
6. How many hawkers or distributors do you have?
7. What are the average working hours for a hawkers or distributors?
8. Which mode of supply (Vehicle) do you have?
9. How you decided the route plan of distribution?
10. What kind of expenses you spent during bread supply?
11. What is a salary structure of you or your hawkers?
12. What is the maximum capacity of sale you have?
13. What is the reason behind having multiple brands?
14. What is your opinion about our Team including Super stockiest, Territory sales in charge
and primary sales man.
15. What you want from company to increase the sale in your areas?

Thank you for your valuable time


Top/Indext/Table of Content
D
Annexure-4