BRITANNIA- BOURBON SALES AND DISTRIBUTION

PRESENTED BY GROUP 6 : NOOPUR SINGH MANU TANDON PRIYANKA OJHA SHREYA JAIN POLLEN CHAKROBORTY

ABOUT BRITANNIA
Started in 1892 in a nondescript house in Kolkata with an initial investment of Rs. 295.

Britannia Industries Limited (BIL) was incorporated in 1918 as Britannia Biscuit Company Ltd.
BIL operates in two segments -- bakery products (biscuits, bread, cakes and rusk) and dairy products (milk, butter, cheese, ghee and curd). The companys facilities are located in Kolkata, Delhi and Uttarakhand. Dairy products sold under the Britannia Milkman brand are produced by Britannia Dairy Pvt Ltd.

ABOUT BRITANNIA
In 1975, the Britannia Biscuit Company took over the distribution of biscuits from Parry's who till now distributed Britannia biscuits in India. The subsequent year saw sales cross a landmark 100,000 tonnes of biscuits or 1 billion packs of 100g. In 1997, the company unveiled its new corporate identity - "Eat Healthy, Think Better - and made its first foray into the dairy products market. Britannia strode into the 21st Century as one of India's biggest brands and the preeminent food brand of the country. The delicious Britannia 50-50 Maska-Chaska became India's most successful product launch.

MARKET SHARE
According to A.C Nielson, Parle has overtaken Britannia in the biscuits market, which is Rs. 11,000 crore plus in terms of revenue. Parle has close to 45% share of the biscuits market while Britannia has 38% share. For years, these two companies were tied in market share with 35 % share each.

BILS BISCUIT INDUSTRY

BILs biscuit portfolio comprises of glucose, marie, cookies, crackers, cream, milk and health biscuits. BIL mainly caters to the premium segment. However, with the launch of Tiger brand biscuits in 1997, it diversified into the low-end category as well. Its strong brand presence, extensive distribution channels and continuous product innovation have helped the company sustain its leading position in the industry. It has 600,000 outlets across India and has expanded its distribution network to rural areas as well. The company exports to the Middle East, Asia, the US and Australia. The company primarily caters to the domestic market; export sales are not significant.

PERFORMANCE TRENDS

FACTORY OUTLET
CARRYING AND FORWARDING AGENT DISTRIBUTOR

WHOLESALER
RETAILER CONSUMER

DISTRIBUTION NETWORK OF BRITANNIA

PRODUCT- BOURBON

PRODUCT- BOURBON
For five decades now, Bourbon and Britannia have gone hand in hand.

India's first and favourite Bourbon's sweet adventure began in 1955.

BRITANNIAS BOURBON DISTRIBUTION NETWORK

Bourbons manufacturing unitsMadurai, Mumbai, Delhi, and Guwahati to name a few.

It is serviced through a network of 20 + Distributors and the number of intermediaries involved can range from 3-5.

THE NETWORK- PAN INDIA

FACTORIES

STATE DEPOTS

AUTHORIZED WHOLESALERS
SUPER STOCKIST WHOLESALE/ RETAIL OUTLETS WHOLESALE/ RETAIL OUTLETS DIRECTLY

WAREHOUSES
MOSTLY ONE OR ATMOST TWO WAREHOUSES ARE PRESENT IN A LARGE STATE ONE WAREHOUSE FOR ONE OR HALF POLITICAL STATE. SELECTION CRITERIA FOR WAREHOUSE LOCATION: CHEAP LAND GOOD ROAD CONNECTIVITY AVAILABILTY OF CHEAP LABOUR WAREHOUSES ARE OWNED AND MANAGED BY VENDORS AND HENCE THEIR INFLUENCE IN THE AREA IS ALSO AN IMPORTANT FACTOR

SALES AND DISTRIBUTION STRATEGY

There are detailed sales manuals and systems to ensure a timely and consistent supply of the products. REPLACEMENT POLICY All companies replace expired stock from retailers without a charge if it remains unsold Sales incentives and contests are carried out from time to time to increase stock pressure, and induce retailer recommendation based sales. Clear guidelines are given on Beat planning for the salesmen so as to cover maximum number of outlets directly through the Britannia AW with minimum effort. The product is replenished once a week to once a fortnight as compared with a 6 month shelf life.

DISTRIBUTION FOR LARGER FORMATS

Big retailers like Easy Day, Spar or Big Bazaar are dealt through a specialized modern trade sales team. The profit margins are similar to what they are for traditional trade outlets. These retailers get billed from the state depots directly.

MODERN TRADE CHAIN

Big format Retail stores cannot be covered by usual distribution networks, therefore, there is a separate distribution network that covers these. The appointed C & FA caters only to these super stores- this network is called THE MODERN TRADE CHAIN. The margins of the store are determined on the basis of the shelf space they allocate for Britannia as well as the location i.e. Entry of the store In the range of the eyes Uppermost or lowermost shelf The bargaining power of the store is determined by the quantity of order and fame of the store.

DISTRIBUTION NETWORK- DELHI

THE FIRST RUNG: Transport of goods from manufacturing plants in Delhi to the C& FAs one at NEB SARAI and the other at MUNDKA mother depot. The C& FA maintains the inventory, however there is no sale. The commission is based on the size of inventory held. The Transport cost Company C& FA = Britannia. C& FA Distributor = Britannia. Britannia saves a lot by NOT having to pay CENTRAL SALES TAX.

THE SECONG RUNG: The network of authorized distributors and authorized Wholesalers also known as Company Rep. Total no. of reps in Delhi 54. Distributors have their own sales force, labor and transportation facilities. Number of outlets covered by each salesperson per day 40. Salesperson visits the retailers and wholesalers once a week to take orders and forwards it to the distributor. This is further ordered to the C& FA. No Overlapping is allowed for distributors in any region. The distributors are given a monthly sales target by Britannia. The margin of authorized distributor is approximately 4.5% 5 % In case of further selling to wholesaler, the distributor passes on 1% of his margin.

THE THIRD RUNG- THE WHOLESALER:

Supplied directly by the distributor Gets discounts and schemes. Mainly located in places like:
Chawri Bazaar Kharibaoli Sadar Bazaar Janakpuri Wholesale Market Uttam Nagar Wholesale Markets.

THE FOURTH AND THE MOST IMPORTANT LINK OF THE DISTRIBUTION NETWORK IS THE RETAILER.

COMPETITOR
Enough scope for PARLE to enter the Bourbon market as it was not competitive and largely dominated by a single player Britannia.

Parle did an umbrella branding with Hide and Seek, which did not demand lot of money for Brand building.
The other advantage was, Hide and Seek already being a chocolate product. Easy association of consumers with chocolate based biscuits through Hide and Seek. This launch took on Britannias 50-50 in the non salted biscuit category. Reason being Britannia had significantly overtaken Parles Krack-Jack in 1993. The battle has now moved on to the Bourbon category.

CURRENT SCENARIO
SALES FIGURES FOR THE LAST 6 MONTHS Averaging in the range of 20-25 Crores a month. The share of Britannia Bourbon in the TOTAL Sales of Britannia Biscuits varies across regions between 3-5%.

The brand has been repositioned from being a Kids product Brand to a youth brand. Parles Hide and Seek has affected the sales of Britannias Bourbon as- Its following the leaders strategy and tactical interventions with identical initiatives.

REFERENCES
Special thanks to Mr. GAGAN BHATIA Brand Manager Britannia Bourbon
http://www.britannia.co.in/companyoverview_overview.htm 18th March 2012

http://articles.economictimes.indiatimes.com/2011-0303/news/28650799_1_parle-products-parle-g-glucose-biscuit
http://articles.economictimes.indiatimes.com/2011-1107/news/30369694_1_cream-filled-sandwich-cookies-biscuit-brandmarket-share

THANK YOU!!