SMS ID

Name
Satish Mohan Srikanth Kalakonda Siddhartha Pillutla

Center
Hyderabad Begumpet Hyderabad Begumpet Hyderabad - Begumpet

Gr. No. 38 38 38
1

Prof. Dr. Sanjay Patro Product and Brand Management PGCBM-22 - PBM Case Study 1

2224047 2224051 2224058

Founded in 1892 with an initial investment of Rs. 295 In 1918, Gupta Brothers partnered with C H Holmes In 1921, first company in the east to use imported gas ovens During World War II, supplied large quantities of biscuits to armed forces In 1975, took over biscuits distribution from Parrys In 1978, subsequent to public issue, Indian shareholding crossed 60% In 1979, name changed to Britannia Industries Ltd. In 1983, crossed the Rs. 100 crore mark In 1997, unveiled its corporate identity "Eat Healthy, Think Better" In October 2009, as a big step in this mission, it initiated the setting up the Britannia Nutrition Foundation First food company in India to become a Zero Trans Fat company

PGCBM-22 - PBM Case Study 1

To dominate the food and beverage market in India with a distinctive range of Tasty Yet Healthy Britannia brands.

To dominate the food and beverage market in India through a profitable range of Tasty yet Healthy products by making every Indian a Britannia consumer. We want to be part of our consumer- at home, out of home, a natural part of his life.
PGCBM-22 - PBM Case Study 1 3

Analyze the Snacks market Device a Strategy Provide a Roadmap

Key Questions to be addressed Is the Market Big enough? What is the feasibility to sustain in this space What are the types of snacks that are both tasty and healthy

PGCBM-22 - PBM Case Study 1

14000 11000

13200

12000

10000
7700 8000

8800

6000

4000

2000

0 2002 - 03 2006 - 07 2010 - 11 2014 - 15 *

Rs. Billion
Source: Ministry of Food Processing Industries , India * - Projected Figure PGCBM-22 - PBM Case Study 1 5

Preference to eat Ready to Eat foods Increasing spending on Snacks that are Healthy Foods manufactured by Branded companies perceived Healthier Per capita Food spending to increase by 56.5% Packaged Food Industry is close to $21.7 Billion / Rs. 1085 Billion in 2012 Projected to reach $26 Billion / Rs. 1302 Billion by 2015

MARKET IS BIG ENOUGH AND GROWING

PGCBM-22 - PBM Case Study 1 6

Current Market
1085

Top 5 Categories
Rs. Billion
61 Branded & Packaged Un-branded 66 93 51 124

9915 Biscuits Non-refined Oil Refined Oil Salty Snacks Packaged Tea

PGCBM-22 - PBM Case Study 1

Mainly Unorganized Very Few Branded Players Branded players are coming with Indianised versions of Western snacks Indian Snacks market valued at $ 3 Billion / Rs. 150 Billion Branded Snacks comprise of $ 1.34 Billion / Rs. 67 Billion Growing rapidly at 15% 20% Growth in unorganized sector is only 7% 8%

GROWING AND FEASIBLE TO SUSTAIN

PGCBM-22 - PBM Case Study 1 8

Market Share - Types of Snacks

3.13 3.59

Rs. Billion
47.99 46.72 Chips Extruded Other Savoury Nuts Popcorn

Market Shared - Branded Snacks

48.56 1.06 1.22

16.32 15.89

Chips Extruded Other Savoury Nuts Popcorn

16.51

PGCBM-22 - PBM Case Study 1

CHIPS Potato Chips is 86% of the entire category of snacks Dominated by PepsiCo with Frito-Lay Haldirams and Future Group recent entries into this market EXTRUDED Mainly Corn based Dominated by PepsiCo with Kurkure SAVOURY Indian Sev snacks Dominated by Haldirams NUTS Small market Haldirams the only Branded player POPCORN Small market Congra Foods the only Branded players

PGCBM-22 - PBM Case Study 1

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Chips / Crisps
11% 3% 7% 8% 58% 13% 10% 5%

Savoury
8% 5%

58% 16%

Lays Haldiram's

Bingo! Private Label

Uncle Chipps Others

Haldiram's Bikanervala

Lehar Private Label

Garden Others

Haldirams is the only leading player in Savoury Frito-Lay is the only leading player in Chips/Crisps

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Help people enjoy life through healthy snacking Make enjoyable food, healthy & accessible to all people, any time, anywhere -everyday

To capture 20%ready to eat food category within next 2 year and focus on generating growth through increasing the base and frequency of consumption.
PGCBM-22 - PBM Case Study 1 12

STRENGTHS:
Fulfills one of the basic requirement - food Widely accepted in all generations . Provide good instant remedy for hunger in the form of readymade food. Preserve the non seasonal food and makes it available throughout the year. Perceived as Health-focused Brand .

WEAKNESSES:
Higher price of food products. Technology requires high investment. Regular usage of processed food may cause alteration in metabolic activities and health issues.

BIL
OPPORTUNITIES:
Economic growth of India. Improved living standards . Increase disposable income and busy lifestyle. Need for Good nutrition quality of foods Inflow of foreign reserves and funds from the govt.

THREATS:
Competition from local and foreign companies. Quality good for most products in the market Lack of advanced technology. Diversification low compared to competition

Other avenues like ready to eat foods.

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PGCBM-22 - PBM Case Study 1

Affordable Delight Health and Taste Any Time, Any Where --on-the-go consumption Indulgent Delight Morphing of Categories

Britannia Cakes - HUGE Success Diary Products - Mediocre Success Dominated by AMUL Gulf Countries Good Success due to Huge Indian Population

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PRODUCT:
Customer wants the Snacks to be healthy The Snacks should also be tasty Snacks should be Indianised to fit the spicy and tangy preference of the customer Snacks should preferably look very Western Brand differentiation should be health focus

PRICE:
Indian customer is price sensitive S/He is ready to pay higher for healthy products but, should be tasty Price differentiation if market is new

PLACE:

Market

The target market should be Rural and Sub-urban and Urban Availability in Malls, Supermarkets, local store Size of package to facilitate accessibility and Ease Distribution channel should be very strong like ITC or PepsiCo Sales force could be used to market door-to-door just like Eureka Forbes

PROMOTION:

Marketing should be done as a Healthy product Reach the customer via advertisement on TV, Press, Radio Sales force can be used for initial door-to-door promotion Introduction of the brand best suited in rainy / winter /festive season

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BIL will need to increase its footprint in food products that can be part of every meal category of every consumer, especially in Main Meal and Anytime Anywhere category In between meals at home Anytime Anywhere Meal Accompaniment Main Meal Focus on Traditional Indian snacks Crisps and Nuts rather than Chips Most important, continue focusing on its key products-line - Biscuits, Cakes and Dairy which are Tasty and Healthy

In Main Meal category, it has little or no presence. It should focus on this market and produce many Ready-to-Eat curries, sweets and snacks which are part of an Indian Meal

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BIL should focus on Indian taste, market tasty snacks and differentiate with their motto Eat Healthy, Think Better Companies like Haldirams, Parle burnt their fingers by targeting the Chips market dominated by Lays BIL should differentiate by making Indian snacks - Crisps and Nuts market them as healthier Continue to Focus on removing trans fats from its products. Target health entries and specialized products Fortification of majority of its products Fortified products should be made accessible and affordable

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For Britannia Brands, a pronged strategy could be followed such as:

Targeting markets in new geographies where malnutrition is low like SubSaharan Africa, Central and South America, South Asia Focused attention on building new capabilities and a robust pipeline of innovation, coupled with leading edge go-to-market approaches Through Innovations tap new sources of growth and profitable revenue, while building brand differentiation and relevance. Consolidating operations, optimizing manufacturing units, reducing complexity and eliminating wastages in the value chain. Implement a focused approach across products, channels and geographies. Introduce a number of new packs to target new consumption opportunities both in-home and out-of-home at an accessible price Improve distribution in high growth markets of India, USA, Canada, Australia, New Zealand and Singapore
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PGCBM-22 - PBM Case Study 1

SMS ID

Name

Center Hyderabad Begumpet Hyderabad Begumpet

Gr. No.

2224047 2224051

Satish Mohan Srikanth Kalakonda

38 38

2224058

Siddhartha Pillutla

Hyderabad - Begumpet

38

PGCBM-22 - PBM Case Study 1

19