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17 per cent share in this high volume segment, lagging behind Parles share of around 65
per cent.
The company is also constantly expanding its list of brands with a sharp focus. Example:
Three years ago, broadly two to three brands were active Goodday, Tiger and to an
extent Marie. But the base has now been enlarged to seven powerful brands.That explains
why the company is not only expanding its biscuits range with variations, it is also
parallelly widening its presence in the bread, rusks and cakes market too.
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 Indias 2nd
most trusted brand.
The company's offerings are spread across the spectrum with products ranging
from the healthy and economical Tiger biscuits to the more lifestyle-oriented Milkman
Cheese. Having succeeded in garnering the trust of almost one-third of India's one billion
population and a strong management means Britannia will continue to dream big on its
path of innovation and quality. This rich biscuit enjoys a fan following of consumers
across all ages, loyal to the brand promise of a great taste evident from the visibly
abundant ingredients. Good Day is amongst the fastest growing brands in Britannia's
portfolio and is today the market leader with almost 2/3 share of the market
Marketing involves finding out what your customers want and then meeting their
requirements. To satisfy its customers, a business must create a successful mix of:
the right product or service
(PRODUCT)
(PLACE)
(PRICE)
The Company witnessed all round growth in key categories with Biscuits recording sales
of Rs. 23,299 Mn. Bread, Cake and Rusk business crossed the Rs. 2,700 Mn mark during
2007-08. This business has doubled in two year.
In an intensely competitive biscuit environment, all Power Brands of the Company
recorded double digit growth, with Tiger and Good Day growing in excess of 20%. The
Companys innovation forays have successfully addressed new benefit clusters and
NutriChoice Digestive has claimed its position in the health and vitality space. The
Company continues to maintain its leadership edge in 6 out of 7 key product segments,
the only exception being Glucose.
The Company introduced several new and renovated offerings in Tiger, Good Day, Treat
and MarieGold. The health and nutrition platform was buttressed by Tiger Banana with
iron-zor, fortified Milk Bikis, renovated MarieGold and Nutrichoice Digestive. To tap
the more indulgent consumers, your Company launched Good Day Classic Cookies,
while continuing to roll out individual consumption packs at the highly affordable Rs. 5
price point.
The Bread, Cake and Rusk portfolio was strengthened with the successful relaunch of
Breads, fortified with vitamins and minerals, positioning them firmly as the healthy start
to your day. This innovation combined with relevant consumer activation in key markets
has seen a 30%+ growth in the Bread, Cake and Rusk business.
As a Corporate, Britannia worked for the benefit of all stakeholders - shareholders,
consumers, dealers , suppliers, bankers and employees. It has established an excellent
track record in terms of its financial performance and dividends distributed to its
shareholders. This has been adequately demonstrated with the Company's topline
growing from Rs 10,301 Mn in 1999 to Rs 26,176 Mn in 2008, a growth of 154% over
the last 10 years. The net profit grew even more significantly at 382% from Rs 396 Mn in
1998-99 to Rs 1,910 Mn in 2007-08, giving a CAGR of 19.1%. As at 31st March 2008,
the issued and paid up capital of Britannia amounts to 23, 890,163 equity shares having a
nominal value of Rs 10 each. The shareholder base is about 25,300 in number.
Nutrition + Fun = Britannia
The Britannia brand is all about eating healthy for leading a better life
Largest company in the Indian Food processing industry whose
product range also includes Breads and Cakes.
Manufacturing and sourcing locations spread across the length and
breadth of the country.
Pan-India presence with a coverage of tens of thousands of outlets and
having one of the strongest distribution networks in the country
Exporter of key biscuit brands enjoying brand loyalty in export
markets.
PRODUCT LINE OF BRITANNIA INDUSTRY LTD.
Britannia Biscuits
Tiger, launched in 1997, became the largest brand in Britannia's portfolio in the very first
year of its launch and continues to be so till today. Tiger has grown from strength to
strength and the re-invigoration in June 2005 and more recently, in Apr 2008 has further
helped bolster its growth in the highly competitive glucose biscuit category.
2.
Britannia Good Day was launched in 1986 in two delectable avatars - Good Day Cashew
and Butter. Over the years, new variants were introduced - Good Day Pista Badam in
1989, Good Day Chocochips in 2000 and Good Day Choconut in 2004.
3.
India's first and favorite Bourbon's sweet adventure began in 1955. Since then, Bourbon
lovers across the country have been caught opening this chocolate couplet, licking the
cream, and nibbling at the melt-in-your-mouth biscuit, bit by bit. Some have been
witnessed chomping it whole, at one go. Some have been noted to alternate it with sips of
coffee; others team it with lots of gossip and gupshup, while a few have been observed
enjoying it with a book.
4.
With a brand name like 50-50, can the product be anything but fun? Launched in 1993,
50-50 belongs to the family of crackers and is considered the "very very tasty tasty"
7
snack. Britannia 50-50 is the leader in its category with more than one-third of market
share. The versatile and youthful brand constantly aims to provide a novel and exciting
taste experience to the consumer. As a result, in 2001, the delicious Maska Chaska was
launched as a variant of the original brand and became an instant success.
5.
Britannia's oldest brand enjoys a heritage that spans the last 50 years - and going strong.
In a market swamped with me-too products and where even the name 'Marie' has become
generic, Britannia Marie Gold has maintained its stronghold. Today, the ever-popular
Marie Gold is synonymous with the 'Tea Time Biscuit'. Its taste, crispiness and lightness
make it a must for every tea break. It is the #1 brand in its category by a long shot.
6.
As a move to consolidate all the individual Cream Treat offerings under a single
umbrella, Britannia launched Treat in 2002. Treat has a range of tasty delights for all kids
with yummy creamy treasures within the biscuit shells. The kids have always relished
unraveling the irresistibly delicious creams hidden inside the biscuit Britannia Treat
offers a wide variety of flavors, such as the Elaichi, the Fruit Flavored Creams such as
Orange, Pineapple, Mango, and Strawberry, the Jam Filled Centers under the Jim Jam
8
range, and the Duet Range (biscuits with two flavours of cream between three layers of
biscuit) comprising Strawberry Vanilla and Duet Strawberry Chocolate.
7.
n 1996, Milk Bikis launched a variant called Milk Cream. These round biscuits come
with smiley faces and are full of milk cream that makes them very popular with children.
Milk Cream also promoted the idea of 'eating milk' in a yummy way, which makes
mothers happy as well.
8.
In continuation of the promise of "Swasth Khao, Tan Man Jagao," Britannia introduced
NutriChoice range of healthy biscuits in 1998. The brand is targeted towards overall
health and wellness for adults. The range has for long comprised of three popular
variants, namely NutriChoice Thin Arrowroot, NutriChoice Cream Cracker and
NutriChoice Digestive.
9.
Then in late 2000, supported by aggressive advertising that featured the brand as a perfect
partner for timepass moments, Britannia Timepass was launched.
10.
Little Hearts was launched in 1993 and targeted the growing youth segment. A
completely unique product, it was the first time biscuits were retailed in pouch packs like
potato wafers. The launch message introduced a special taste experience that made the
unlikeliest characters - like Dracula and Frankenstein - melt. In 1997, the 'Direct Dil Se'
campaign encouraged youngsters to openly express their feelings. And in 2003, two
variants called Little Hearts Chocolate and Little Hearts Sesame were rolled out with a
campaign "Dil sabka actually sweet hai". With Little Hearts, Britannia has tasted the
sweet taste of success.
10
11.
Britannia Nice Time was the pioneer of sugar sprinkled biscuits in India. This unique
product managed to create such a strong consumer pull that soon there was a rush of
pretender products in the market, clearly indicative of the success of the concept. Today,
Nice Time has a fan base spread across India, and, particularly, East India, where its
consumers have grown up with the brand. Especially popular amongst children, Britannia
Nice Time has managed to create a loyal franchise for itself and is a strong brand loved
by people of all ages.
12.
Till 1958, there were no breads in the organised sector and bread consumption was a
habit typified by the British. Then, a mechanised 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.
Britannia Dairy Products: : It took a new step into the dairy industry in 1997 with two
products - Processed Cheese and Dairy Whitener. Dairy products are outsourced from
11
13.
Britannia offers the largest range of cheese in India. Made at hi-tech facilities under highquality conditions, and from cow's milk, Britannia Milkman Cheese range is a very tasty
and healthy food for the family.The entire range of Britannia Milkman Cheese is
available in various forms, pack sizes and flavors, which provide a variety of easy, quick,
tasty, healthy recipes for family, guests and kids' tiffins.
14.
Britannia Milkman Butter is known for its rich yellow butter color, great taste, and
excellent spread-ability, even after refrigeration!Made by churning fresh cow's milk,
12
Britannia butter can be used as a spread on your breads, or as a dollop on your paranthas,
or in baking, sauce making and frying.
15.
Britannia Milkman Ghee is trusted for its purity and taste all over India.Britannia is the
only national brand in ghee, and it offers 4 different variants in ghee, depending on the
taste, texture and color preferences of our consumers. Ghee made from cow's milk gives
you the goodness of Vitamin A, E and cancer fighting anti-oxidants like CLA
(Conjugated Linoleic Acid).
16.
13
18. Milk: Britannia is reentering in this segment and launched its UHT milk on 28 th
June. UHT (Ultra High Temperature) milk in regular and 'Slimz' format,
which is a zero fat and zero cholesterol milk in Mumbai, Delhi and Bangalore markets for
starters. UHT Technology helps preserve and retain all the goodness of milk and has a
shelf life of 120 days.
19. Nutro: Britannia Industry ltd. has expanded its UAE operations by taking a 70
percent stake in Strategic Foods International Co. Ltd. (SFIC), one of the GCC's largest
biscuit and wafer manufacturing firms. The investment is part of the organisation's
campaign to capture the lion's share of the UAE's biscuit market, worth an estimated
AED500 million a year.
2. PLACE: Britannia basically targeting high and upper medial class customers for
cheese so place where Britannia cheese is available is urban cites where people know use
of cheese and use cheese on daily bases.
Though figures vary widely from product to product, roughly a fifth of the production
cost of an item goes on getting it to the customer. The term 'place' deals with various
14
methods of transporting and storing goods and then making them available to the
customer.
Getting the right product to the right place at the right time involves the distribution
system. Distribution is the process of moving goods and services to the places where they
are wanted.
Channel Levels: The channel of distribution used by Britannia is:
Intensive Distribution: As biscuits need to reach the consumer at their nearest locations
this type of distribution channel is used. This type of distribution helps when for products
that are categorized by low involvement of the customer and where customer looks for
location convenience.
3. Price: Pricing is one of the most important elements of the marketing mix, as it is the
only mix, which generates a turnover for the organisation. The remaining 3ps are the
variable cost for the organisation. It costs to produce and design a product; it costs to
distribute a product and costs to promote it. Price must support these elements of the
mix. Pricing a product too high or too low could mean a loss of sales for the organisation.
15
Pricing should take into account the factors like fixed and variable costs, competition,
company objectives, proposed positioning strategies, target group and willingness to pay.
The pricing strategies are based much on what objectives the company has set itself to
achieve and Britannia has adopted a number of pricing strategies:
Competition pricing: They have set a price which is competitive when compared with
competitors.
Product Line Pricing: Priced different products within the same product range at different
price points. The better the feature and the benefit given the greater the consumer will
pay. This form of price discrimination assists the company in maximising turnover and
profits.
Bundle Pricing: The organisation bundles a group of products at a reduced price when
providing family packs.
Value Pricing: They have also used value based pricing.
Price of cheese is continuously increasing due to fluctuating rate of row material. And
second factor behind increment of Britannia cheese price is that they are continuously
improving quality of product new products in different flavors are introduce by them
continuously in the market.
16
Product Name
MRP
Retailers
MRP
Margin
Retailers
Margin
BUTTER
100 g.m
20
9.5%
20
9%
500 g.m
97
97
Price
1 k.g.
Pizza Cheese
176
170
competitive
100 g.m
72
400 g.m
140
Britannia &
1 k.g.
Natural Cheddar
310
Amul
analysis
9%
48
9%
between
Cheese
200 g.m
110
BRITTNIA
335
9%
400 g.m
130
9%
1 k.g.
Processed
261
1 k.g
Processed
AMUL
Cheese Blocks
108
9%
Very soon
Britannia and
Amul is coming
Cheese cubes
108 g.m.
72
540 g.m.
Flavored Cubes
190
9%
65
9%
(108g.m.)
Cream Onion
45
1.3 Problem
9%
Masala Mania
of the
Marchi Popper
Cheese Slice
Organization
200 g.m
85
480 g.m
Low fate Slice
195
100 g.m
Cheese Spreadz
60
9%
73
So
9%
130
many
Competitor in
9%
this
(180 g.m.)
Regular
52
9%
47
9%
Flavored
Dahi
55
200 g.m
13
9%
12
9%
400 g.m.
Dairy whitener
24
45
9%
22
1745
9%
200 g.m
110
108
500 g.m.
213
210
Like
Sector
Mother Diary
Amul
Cadbury
MotherDairy
Mother Dairy markets approximately 2.8 million liters of milk daily in the markets of
Delhi, Mumbai, Saurashtra and Hyderabad. Mother Dairy Milk has a market share of
66% in the branded sector in Delhi where it sells 2.3 million liters of milk daily and
undertakes its marketing operations through around 14,000 retail outlets and 845
exclusive outlets of Mother Dairy.
The companys derives significant competitive advantage from its unique distribution
network of bulk vending booths, retail outlets and mobile units. Mother Dairy ice creams
launched in the year 1995 have shown continuous growth over the years and today boasts
of approximately 62% market share in Delhi and NCR. Mother Dairy also manufactures
and markets a wide range of dairy products that include Butter, Dahi, Ghee, Cheese, UHT
Milk, Lassi & Flavored Milk and most of these products are available across the country.
Amul
18
Amul (Anand Milk Union Limited), formed in 1946, is a dairy cooperative movement in
India.
It is a brand name managed by an apex cooperative organisation, Gujarat Co-operative
Milk Marketing Federation Ltd. (GCMMF), which today is jointly owned by some 2.8
million milk producers in Gujarat, India
The Amul Pattern has established itself as a uniquely appropriate model for rural
development. Amul has spurred the White Revolution of India, which has made India the
largest producer of milk and milk products in the world. It is also the world's biggest
vegetarian cheese brand
Amul is the largest food brand in India and world's Largest Pouched Milk Brand with an
annual turnover of US $1050 million (2006-07) . Currently Amul has 2.8 million
producer members with milk collection average of 10.16 million litres per day. Besides
India, Amul has entered overseas markets such as Mauritius, UAE, USA, Bangladesh,
Australia, China, Singapore, Hong Kong and a few South African countries.
19
Cadbury
In India, Cadbury began its operations in 1948 by importing chocolates. After 60 years of
existence, it today has five company-owned manufacturing facilities at Thane, Induri
(Pune) and Malanpur (Gwalior), Bangalore and Baddi (Himachal Pradesh) and 4 sales
offices (New Delhi, Mumbai, Kolkota and Chennai). The corporate office is in Mumbai.
Our core purpose "creating brands people love" captures the spirit of what we are trying
to achieve as a business. We collaborate and work as teams to convert products into
brands. Simply put, we spread happiness!
Currently Cadbury India operates in four categories viz. Chocolate Confectionery, Milk
Food Drinks, Candy and Gum category. In the Chocolate Confectionery business,
Cadbury has maintained its undisputed leadership over the years. Some of the key brands
are Cadbury Dairy Milk, 5 Star, Perk, clairs and Celebrations. Cadbury enjoys a value
market share of over 70% - the highest Cadbury brand share in the world! Our flagship
brand Cadbury Dairy Milk is considered the "gold standard" for chocolates in India. The
pure taste of CDM defines the chocolate taste for the Indian consumer.
In the Milk Food drinks segment our main product is Bournvita - the leading Malted
Food Drink (MFD) in the country. Similarly in the medicated candy category Halls is the
undisputed leader. We recently entered the gums category with the launch of our
20
21
22
Strength:
Weakness:
Logo of Britannia
as International brands.
consumers
test
brand
name
and
consumer base
in
the
Most
Business
Respected
No advertisement
High
Market
and
preference
23
dependence
on
Indian
Opportunity:
Threat:
Price
strategic
Food
CoSAOG
Intellectual
Danon
High dependence on Dynamix
Dairy Industries for cheese and
batter
Mother
outlets
right
products
property
global
in
materials market
Company
fluctuations
24
Dairys
and
Amuls
2.1 Significance
25
27
2.3 Objective
Information Needed
28
Scaling Techniques
Two kinds of scaling techniques were used in the questionnaire:
Ranking Scale
Consumers make relative judgment against other similar objects (Comparative Scales).
They were presented with several factors influencing decision making while buying a
cheese.
Shelf size of all the brands and there competitive analysis
Dealers were presented with several factors influencing customer decision making of
purchasing chasse.
Likert Scaling
Respondents were presented with there name and presence of shelf size in percentage.
29
Keeping in mind the information required for achieving the objectives of the research,
questionnaire was developed and Pre tested on a small sample of 50 respondents chosen
on a convenience basis .The questionnaire was a blend of following type of questions:
Retailer name
30
2.5 Methdology
Various steps involved in research done on Britannia Industry Ltd. are
Survey before starting the research, an in-depth study of the topic was conducted so as
to draw a clear image of what and how the research has to be carried out.
Formulating the Research Problem the next step was to find out the problem of the
case. The most important task was to define the problem clearly from an analytical point
of view. This is the most important step because; if a problem is well defined then it
means that it is half solved.
Design of the Questionnaire an unstructured questionnaire was framed. All the
questions used are closed ended and open in the questionnaire.
Determining the Sample Size furthermore the next step was to choose the number of
Shops to be targeted from various area of Delhi, and various classes of shop. So a total of
224 shops were approached for the survey
Collection and Analysis of Data the data was collected from various class of shops
among different area of Delhi and the data was segregated into various parameters in
order to analyze it.
Interpretation of Data and Preparation of Report the findings was identified and
recommendations were made and the final report was prepared.
31
Strategy
Main strategy of Britannia is to improve visibility in terms of good shelf size at the shop.
There emphasis a lot on visibility of Britannia Dairy products.
Cheese Industry is growing at a fast pace in Indian market. Demand of cheese varies from
market to market and consumers to consumer. Like in posh areas demand and shelf size
of Britannia and other cheese brands is good but in areas where middle class peoples
ratio is high, the demand and shelf size of Amul and local cheese is good.
The objective of the project is to find out retail share of Britannia cheese, for that I visited
shops and through observation and interviewing of shop-keeper I tried to find out retail
share. Some sales officers helped me to find retailer outlets in different part of Delhi.
The data has been collected through various sources; Primary research has been done to
collect data. A Survey was carried out with the sample size of 224 in various classes of
retail outlets in vaious parts of Delhi. The main objective of project was to find out retail
share of Britannia cheese.
The Research Design is descriptive and exploratory and sampling technique used is
Random Sampling. Certain recommendations and conclusions have been derived that can
help Britannia to know retail share of its cheese products and to improve its retail share.
32
LITERATURE REVIEW
India is one of the fastest growing markets for cheese with annual growth pegged at 20%
with a total consumption of about 7,000 tons a year according to Agri-Commodity
Federation. With one of the largest consumer bases in the world, cheese could be a multimillion dollar industry in India. Nowhere else do people consume cheese in so many
different forms and use cheese in so many varieties of food preparation as in India.
When we think of buying a Cheese, than generally tow names Amul and Britannia comes
in over mind. there are certain parameter which effect consumer preference in Cheese ,
such as:
i.
Test:
ii.
Packaging:
iii.
Flavor: Advertisement:
iv.
Retailer Suggestion:
v.
Shelf Size:
vi.
Price:
vii.
Brand Name:
33
Britannia
Amul
Lebon
Mother Dairy
Kraft
Laughing Cow
Frico
President
Prestige
Frico
Arla,
Lurpark
Dairy Craft,
Floric,
Chodhery
Growth Drivers : India is one of the fastest growing markets for cheese with annual
growth pegged at 20% with a total consumption of about 7,000 tons a year according to
an official of the Indian Agri-Commodity Federation. With one of the largest consumer
bases in the world, cheese could be a multi-million dollar industry in India. Nowhere else
do people consume cheese in so many different forms and use cheese in so many varieties
of food preparation as in India. In 2007, Britannia, one of the Indias largest biscuit
brands held a market share of 38% in terms of value. Indian biscuit industry, the third
largest producer of the biscuits in the world was highly under-penetrated. This presented
numerous growth opportunities to new as well as existing players. Apart from the
presence of big players like ITC Foods and Parle, the local manufacturers of biscuits and
34
other Indian snacks had been raising concerns for Britannia. Besides competition,
Britannia faced critical challenges due to declining margins in the biscuit industry due to
the increasing costs of raw materials. Its profit had been on a decline since 2005. Though
Britannia had forayed into dairy and bakery products, 90% of its revenues still came from
its core business in biscuits category which was largely driven by product innovation.
The case, highlighting the Britannias growth strategies, provides scope to analyse
opportunities and challenges for Britannia in the Indian biscuit industry.
Pedagogical Objectives:
Organic and inorganic growth strategies of Britannia to face the challenges in the
Indian biscuit industry.
Britannia has doubled its ad spending in the last three years. It is also working to increase
trade marketing visibility and, for the first time ever, has signed on with a trade marketing
agency. According to Mehta, Britannia plans to increase advertising and marketing
spending to 10% to 12% of sales over the next few years from a current 7%. On the
infrastructure front, Britannia has added 200,000 tons of annual capacity, an increase of
about 60%. It has also devised a long-term distributed manufacturing strategy, put in
place a continuous replenishment supply efficiency system, and strengthened its supply
chain management significantly. According to Rajesh Lal, vice president and chief
technology officer: "The stocks at our distributors are now replenished within 24 hours,
and in the past three years we have increased the availability of our [stock-keeping units]
from 60% to 90% across the country." Lal adds that cost reductions over the last three
years have saved the company $30 million. Bali is looking to leverage all these new
pieces for maximum competitive advantage. Sources inside Britannia say revenue targets
are $1.25 billion by 2010 and $3 billion by 2015. While Bali won't commit to any
numbers, her hunger clearly is to be the best. "There is a huge opportunity out there in the
market and it is up for grabs," she says. "What we make of it depends on our ability to
35
classic (plain),
pepper,
Masala herbs,
Peppy Cilantro,
Onion,
36
37
for household gadgets. All these opportunities can be determined ones the consumer
behavior is studied.
Selecting target market:
A review of marketing opportunities often helps in identifying distinct consumer
segments with very distinct and unique wants and needs. Identifying these groups,
learning how they behave and how they make their purchase decisions enables the
marketer to design and market products or services particularly suited to their wants and
needs.
Marketing - mix decisions:
Once unsatisfied needs and wants are identified, the marketer has to determine the right
mix of product, price, distribution, and promotion. Here too, study of consumer behavior
is very helpful in finding answer too many perplexing questions.
Product: The marketer designs the product or services that would satisfy unfulfilled
needs and wants. Further decision regarding product concerns to size, shape and features.
The marketer has also to decide about packaging, important aspects of service, warranties
and accessories etc.
Price: The second important component of marketing mix is price. Marketers must
decide what price should be charge for the product or the services. These decisions will
influence the flow of revenue to the company. Should the marketer charge the same,
higher or lower price in comparison to competition? Is the consumer price sensitive and
would a lower price stimulate sales? Should there be any price discounts? Do consumers
perceive lower price as being indicative of poor quality?
To answer these questions, the marketer must understand the way the company's product
is perceived by the consumers. It is only through consumer behavior study in actual
buying situations that the marketer can hope to find answers to these important issues.
38
Distribution: The next decision relates to the distribution channel, that is, where and
how to offer products and services for sale. Should the products be sold through all retail
outlets or through selected outlets or should company be involved in direct channeling for
the products? Is the location of the dealers important from the consumers' point of view?
Should the company think of direct marketing?
The answers to these questions are furnished by consumer behavior research.
Promotion: Promotion is concerned with marketing communications to the consumers.
The marl' important promotion methods are advertising, personal selling, sales
promotion, publicity and marketing. The marketer has to decide which method would be
most suitable to effectively reach the consumers. Should it be advertising alone or should
it be combined with sales promotion? The company has to know the target consumers,
their location, what media do they access to and what are their media preferences, etc.
To get the desired results the marketer always looks for the consumer behavior and
buying pattern the target consumers in the respective locations.
Model of consumer behavior
Understanding consumer behavior and "knowing customers," have and never will be
simple. Consumers may say one thing but do another. They may not be in touch with
their deeper motivations. They may respond to influences that change their mind at the
last minute. These issues have lead to theories like that of the black box approach taken
on by Futrell. It refers to how marketers are not able to tap into consumer minds, thus
"keeping them in the dark." In other words, marketers can apply various stimuli and
observe the conduct of consumers, but they cannot observe the consumers' actual thought
processes.
39
This hidden Information is considered to be the black box. In an attempt to obtain some
understanding, marketers study consumer behavior. Many researchers describe consumer
behavior as the study of individuals or groups and the mental, emotional and physical
processes they use to select, obtain, consume and dispose of products or services, to
satisfy needs and wants, and the impact that these processes have on the consumer and
society.
There are numerous models trying to explain consumer behavior. These models generally
deal with various stimuli, influential factors, the decision-making process and outcomes.
Some models are very basic and categories all variables such as the one proposed by
Philip Kotler, which is illustrated in figure above.
40
DATA ANALYSIS
Out of 89 shop of south Delhi number of different class of shops are:
Class
No. of Shops
Percentage
A
24
27%
B
53
60%
C
12
13%
CLASS
C
13%
A
27%
B
60%
41
Britannia
104
52%
Amul
Mother
Lebon
Other
80
40%
Dairy
2
1%
2
1%
12
6%
42
WEST DELHI:
43
Out of 84 Shope of west Delhi number of different classes of shopes are as follow:
Class
No. of Shops
Percentage
A
16
19%
B
.64
77%
44
C
4
4%
Brand
Britannia
Amul
Mother
Lebon
Other
Name
Quabites
Presentage
106
53%
86
43%
Dairy
0
0%
2
1%
6
3%
Interpretation
This graph shows that britania 53% in south delhi has been leading from all other brands.
CENTRAL DELHI
45
Class
No. of Shops
Percentage
A
3
9%
B
13
36%
C
19
55%
Interpretation
This graph shows that britania 55% in central delhi has been leading from all other
brands.
46
Brand
Britannia
Amul
Mother
Lebon
Other
Name
Quabites
Presentage
47
47%
45
45%
Dairy
0
0%
0
0%
8
8%
NORTH DELHI:
47
Class
No. of Shops
Percentage
A
2
13%
B
13
81%
C
1
6%
Interpretation
This graph shows that britania 81% in north delhi has been leading from all other brands.
Brand
Name
Quabites
Presentage
Britannia
19.5
39%
Amul
Mother
Lebon
Other
23.5
47%
Dairy
0
0%
1
2%
6
12%
48
Interpretation
This graph shows that in retail shares of britania 39% in overall delhi and 47% of amul
giving tough competition .
OVERALL DELHI:
Out of 224 shop of overall Delhi number of different class of shops are:
Class
No. of Shops
A
45
B
145
49
C
34
Percentage
20%
65%
15%
Interpretation
This graph shows that retail shares of britania 65% in overall delhi has been leading from
all other brands.
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Brand
Name
Quabites
Presentage
Britannia
280
51%
Amul
Mother
Lebon
Other
231
42%
Dairy
0
0%
6
1%
33
6%
Interpretation
This graph shows that retail shares of britania 51% in overall delhi has been leading from
all other brands.
FINDINGS:
51
Britannia is not able to satisfy Consumer who are using other good Brands: Kraft
and President tow international brands have made good position in high class and
upper middle class societies like Chadakaya puri and Vasanth Kung. The flavors
of Britannia Cheese is just according to Indian consumers whereas demand in
Indian foreign consumers for consuming high quality foreign flavor cheese in
quite high.
Demand and consumer behavior defer in every market according to there status
and company follow different strategy for every market and products availability
is also different like in west Delhi we find local brands too and in south Delhi
important brands are dominating.
Till now people in urban cities are not aware of the right use of cheese, even
people who consume cheese from Dairies are not aware of Britannia Cheese.
Outlets of Amul and Mother Dairy are increasing day by day but most of
consumers purchase only milk from these outlets.
Consumers are very much brand conscious now a days so Britannia name is good
opportunity for its dairy products but they just need to create some awareness
using banners and hoardings as many people are still not aware of Britannia dairy
products like cheese.
There are no Advertisements of Britannia Cheese in the market, not even in form
of Pamphlets and banners or hoardings. Due to which Cheese consumer dont get
information about any new offers, like free knife coming with spread, Britannia
biscuits free with cheese products. But general trade products are in the invisible
place and consumers dont get information about promotional strategy.
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Choudhery is major compotator of Britannia due to its good quality and lower
price, in B2B it is acquiring Britannia Clients. The Park Hotel who was good
client of Britannia was it acquired by Choudhery Cheese. Even Bakeries also use
Choudhery Cheese for making fast food for there store. Even end consumers also
like this brands. Its shelf size is less but sales is very high.
Wholesalers who are selling Britannia cheese in large quantity want some extra
incentives for there extra sales.
In South Delhi Sales of Britannia is more than its shelf size but in other parts of
Delhi sales of Britannia Cheese is less than its Shelf size, in South Delhi sales
can be increased by providing extra incentive to wholesalers and retailers for extra
sales.
Amul is major competitor of Britannia in small parts of Delhi and other cities as
there distribution network and advertisement strategies are batter then Britannia.
Like in small retail shop of south Delhi where sales is less Britannia distributor
dont like to go, Jamrat pur is one of the example, even small shops of other part
of Delhi also.
STRATEGY:
Besides focusing on competitive pricing, BIL has adopted three pronged strategy of
1. Freshness (Lower pipeline stock) : The fist purpose of Britannia is to fast
supply of products so that consumer fresh and can enjoy fresh test of its dairy
products. For that their supply pipeline is very short, Britannia cheese comes from
Baramati to Delhi to distributor hands and distributor supply it in to market.
2. Available (Improve distributaries Network) and:
54
Recommendations:
Extra Incentives for Extra sales: Retailer and wholesalers should get extra
incentives or margin for extra sales. It will motivate retailer and wholesaler for
selling Britannia cheese only. Like Selling of 24 packs of Britannia cheese slice 2
pacts of slice free or selling price in 2-3% is more. On the basis of monthly sales,
gift or extra benefit should be provided. Retailers who are contributing good sales
to Britannia every month dinner should be arranged for them in that area etc.
Distributors network in good areas is very week in C class shops and in small
areas of Delhi although demand of ghee is good is these areas. So distribution
network need to improve in smaller areas.
Britannia should come up with more flavors of cheese which can be substitute of
imported brands of cheese.
Promotional offers should come time to time for end users with proper
advertisement. For high quantity users of cheese some combined packs should be
launched so that consumers can get benefit in price.
In south Delhi sales of Britannia cheese is higher then other parts of Delhi but it
can increase by regular supply in small parts and shops.
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LEARNINGS
Basic retailing and whole selling function.
Technique to tackle retailer according to satiation
Analysis of sealing and product positioning in the market
Analysis of price strategy used by Britannia and other products
Analysis of promotional strategy used by company.
Operation at retail level.
Analyzing the Factor influencing the retailer behavior.
Learning various levels of channel, distribution channel function and channel
design decisions.
Application of Segmentation, Targeting and Marketing.
Developing Basic marketing processes (Analyzing Macro and Micro factors).
Application of basic market research process (Defining, Developing and
Interpreting).
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ANNEXURES
57
QUESTIONNAIRE
Name:
Area/Location:
Address:
Contact No.:
1. Do you know Britannia Cheese?
(a) Yes
(b) No
(b) No
(b) Quality
(c) Price
(d) Availability
(c) Taste
(b) Occasionally
(c) Rarely
(d) Never
(C) Neutral
(d) Bad
58
(b) Birthdays
(c) Gift
(d) Mood
(b) Nestle
(c) Amul
(d) Others
(b) Nestle
(c) Amul
(d) Others
10. How do you feel regarding price of different brands of Britannia Cheese?
(a) Britannia - High/Low
(b) Nestle -High/Low
(c) Amul
-High/Low
(c) Rarely
12. Among which brand of chocolate, the taste is good?
(a) Britannia Product
(b) Nestle
(c) Amul
(d) Others
13. If the price of another brand ae reduced would you shift your brand?
(a) Yes
(b) No
(b) No
59
(b) No
60
BIBLIOGRAPHY
61
BIBLIOGRAPHY
INTERNET
britannia.com
fincialeexpress.com
.bobsguide.com
mouthshut.com
Google.com
Wikipedia.com
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