DIRECT DISTRIBUTION EXPANSION – A STUDY AT A

UNDERSTANDING EXECUTING DISTRIBUTION STRATEGY IN

BRITANNIA COMPANY

NAME: DEBASISH BEHERA

Roll No : 18M102

(PGDM: Major Marketing & Minor: HR)

Project Report

Submitted

To

Dhruva College of Management

(Approved by AICTE, Ministry of HRD, Govt. of India)

N H: 44, Hyderabad-501 401

India

In partial fulfillment of PGDM Program

2020
2. Declaration :-

I do hereby give the undertaking that the present study is a bona fide work and I have not
submitted it for the award of any degree or diploma in any college or University.

DEBASISH BEHERA

18M102

Date : 16/06/2019

Place : Hyderabad

Attested by:-

( Prof K Ratna Geetika )

Faculty Guide
Index:-

CONTENTS
Chapter DIRECT DISTRIBUTION EXPANSION Pages
Executive Summary
1 Introduction(include gist of literature review,
company profile)
2 Objective(s) of the study
3 Methodology
4 Analysis and Findings
5 Recommendations
6 Bibliography / References
7 Annexures
1. About the company
2. Literature ( Sources referred to like research
papers, annual reports, website)
3. Annexures pertaining to your study like
questionnaire.

Purpose: The project is based on understanding the concept of direct distribution of

Britannia company and knowing the behavior of retailers. Even though every company
identifies their target retailers and frames their flab discount offers accordingly there is a
requirement to know what retailers think about the sales of the brand products and how
frequently this product goes to the customer basket.

The main purpose of the study is to measure the brand loyalty of the sample respondents to
the Britannia and Palle brand biscuits and know the main factors that influence their brand
loyalty. The study of any subject is made easier by examining it in an organized
fashion. Britannia seeks to maintain and enhance the Company's reputation by providing
our consumers high quality products and services. Marketing strategies of Food industry
depend of the number of factor like demographic profile, brand, health awareness, taste and
quality & etc. The company has to study the target region with regards to these factors. The
increase share of the market ,company have continued focus on advertising. in last four
weeks you learn about so many things like how Supply chain management work.(
Manufacture unit to model trade general trade, wholeseller, retailer, distributor,supplier,
finally general store how its work to a procedure wise) How company generating revenue for
the product. Main purpose is in Britannia how you add new model stores new outlet to
include in the list and give them to better provide service.

Executive summary:-

The study was conducted to find the effectiveness of sales and distribution channel of
Britannia industries with relation to biscuit industry. Effective distribution channel is main
reason in the industry in order to maintain the retailers and wholesalers. Organizations
strategize on regular basis in order to grab greater market share which leads to profit in the
whole sole aim of the company.

Although Britannia industries provide effective service to the customers by providing the
stock on time there is an issue going on in quite few areas where the competitors are a step
ahead. the service ahead. The service on time plays a major role in this industry.

Sales promotions and advertising also plays an important role in in industry as all the biscuit
industry provides various promotional activities for customers, retailers and wholesalers in
order to promote the products. Britannia also provides these services in regular time periods
but in order to study how effective all these are in the reason behind the research.

The study will help the organization to know about effectiveness of sales and distribution
channel. From the result of the study the organization can understand the necessary finding
and suggestion to improve the activities. the organization can know about the requirements of
promotional activities and distribution flaws. The organization can know about the
requirements of promotional activities and distribution flaws. The organization can also study
about the changes in the market conditions.

The project is based on understanding the concept of direct distribution of Britannia company
and knowing the behavior of retailers. Even though every company identifies their target
retailers and frames their flab discount offers accordingly there is a requirement to know what
retailers think about the sales of the brand products and how frequently this product goes to
the customer basket.
This project is based on quantitative research where we speak and get take some feedback for
shopkeeper with retailers. In an average 2000+ outlets were intervened and this is operated
by JAL ENTERPRIZES borbanda area distribution agency which is in Hyderabad. This
outlets information is gathered by me in a small journal by asking some questions. I worked
around three to four weeks in this area as got a temporary conclusion that distribution supply
many problems even though the distribution of this products are taken order though a app
called PDA 2.0 and later the distribution is done following day after tomorrow product will
be supply to the outlet I observed the (time motion study) of the company. It was the excited
task of collecting the information as the end user had to explain all details of the survey and
then non- availability as particular time consuming. The questionnaires were filled by the
researchers due to language problems and limited time during survey.

Objectives of the study:-

The study aims to explore the various operational and innovative ideas functions of
Sales and distribution strategy in Britannia company. Taking the feedback of Britannia
customers about the schemes by Britannia and their competitors in Goan market.

 To know about the status of the competitors.

 To analyse the business of the company

 To analyse the financial performance of the company.

 To determine sales activities of customers business The study of the sales and
distribution channel of Britannia industries

 To find the effectiveness of sales and distribution channel in relation with biscuits and
dairy industry

 To study the various promotional activities implemented by Britannia industries

 INTRODUCTION

Company profile:-

Britannia is one of the leading producers of FMCG products. This company owns seven state
of art research and development centers at Karnataka, Kolkata, Chennai, Mumbai, Delhi,
Odisha and Uttaranchal. Each of these development centers setups a commitment to demand
the best of ingredients and package their natural goodness in their products, without
compromise. The company has presence in more than 60 countries across the globe.
Britannia Industries Limited is an Indian food-products corporation. Founded in 1892 and
headquartered in Kolkata, it is one of India's oldest existing companies. It is now part of the
Wadia Group headed by Nusli Wadia. The company sells its Britannia and Tiger brands of
biscuits, breads and dairy products throughout India and in more than 60 countries across the
world.[2] Beginning with the circumstances of its takeover by the Wadia group in the early
1990s, the company has been mired in several controversies connected to its management.
However, it enjoys a large market share and is exceedingly profitable.

Background of the company

The company was established in 1892 by a group of British businessmen with an investment
of ₹265.[2] Initially, biscuits were manufactured in a small house in central Kolkata. Later,
the enterprise was acquired by the Gupta brothers mainly Nalin Chandra Gupta, an attorney,
and operated under the name "V.K Brothers." In 1918, C.H. Holmes, an English businessman
based in Kolkata, was taken on as a partner and The Britannia Biscuit Company Limited
(BBCo) was launched. The Mumbai factory was set up in 1924 and Peek Freans UK,
acquired a controlling interest in BBCo. Biscuits were in high demand during World War II,
which gave a boost to the company’s sales. The company name was changed to the current
"Britannia Industries Limited" in 1979. In 1982, the American company Nabisco Brands, Inc.
acquired the parent of Peek Freans and became a major foreign shareholder.

Products: Bakery products, including biscuits

What are the products of Britannia?

 Britannia's product portfolio includes Biscuits, Bread, Cakes, Rusk, and Dairy
products including Cheese, Beverages, Milk and Yog hurt. Britannia is a brandwhich many
generations of Indians have grown up with and our brands are cherished and loved in India
and the world over.

PRODUCT LINE / PRODUCT FEATURES:-

BISCUITS
 GOOD DAY
 CRACKERS
 NUTRICHOICE
 MARIE GOLD
 TIGER
 MILK BIKIS
 JIM JAM + TREAT
 BOURBON
 LITTLE HEARTS
 PURE MAGIC
 NICE TIME
BREADS

 WHOLE WHEAT BREADS

 WHITE SANDWICH BREADS
 BREAD ASSORTMENT
 DAILY BREADS
DAIRY

 CHEESE
 MILK BASED BEVERAGES
 FRESH DAIRY
 EVERYDAY GOODNESS
 BAR CAKES
 VEG CAKES
 CHUNK CAKE
 NUT & RAISIN ROMANCE
 MUFFILLS

Britannia Industries Limited (BIL) is one of Indias leading food companies. Britannia’s
product portfolio includes Biscuits, Bread, Cakes, Rusk, and Dairy products including
Cheese, Beverages, Milk and Yoghurt. Its brand portfolio includes Tiger, Marie Gold, Good
Day, 50:50, Treat, NutriChoice and Milk Bikis. BIL has a presence in more than 60 countries
across the globe. BILs international footprint includes presence in Middle East through local
manufacturing in UAE and Oman. The company is also the market leader in Nepal. The
Company was born in 21st March of the year 1918 as a public limited company. The
Companys plants are situated in Kolkata, Delhi, Chennai, Mumbai and Uttarakhand. In 1921,
it became the first company east of the Suez Canal to use imported gas ovens. Britannia
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. A new factory was established in the year 1924 at Kasara Pier Road in Mumbai. In the
same year, the Company became a subsidiary of Peek, Frean & Company Limited, U.K., a
leading biscuit manufacturing company,

Competitors:

Generally all organizations have competitors in the market. A particular organization always
comprises with other same business and according to market share we clarify the brand of
product is giving more challenge to my product .I found many products which can be
compared with Britannia Biscuit. As a conclusion I found that particularly in my provided
area Britannia is really doingwell and its performance is on surprising level. During the field
work and after intensive study it was found that main competitor of ITC biscuits is
BRITANNIA:-

As the market leader . In my provided area the share of the market is as follows

BRITANNIA 48%

ITC 20%

PARLE-G 16%

PURE FOOD 8%

OTHERS 8%

COMPANY PORTFOLIO:-
Britannia Products:-

Britannia product line includes biscuits, snacks, packed milk, cheese, butter, buttermilk and
yogurt. Britannia owns popular brands like:

NutriChoice

NutriChoice Digestive Biscuit.

Treat Fruit Rollz.

New Britannia Milk Bikis.

Britannia Marie Gold Doubles.

Britannia 50-50.

Tiger creame / Tiger crunch.

LITERATURE REVIEW

M. Singh, Shantanu Saurabh and Smriti Srivastava60 (2015), Organized Retailing in India: A
Socio-Economic Study of Customers’ Perception of Allahabad District, have concluded that,
“India is at the crossroads with respect to the retail sector. Both modern and traditional
retailers' will co-exist in India for some time to come, as both have their own competitive
advantages. The kirana has a low- cost structure, convenient location, and customer intimacy
whereas modern retail offers product width and depth and a better shopping experience. One
of the prime objectives of this study was to 50 find the consumers' perception towards
organized and unorganized retailers across demographic profiles.

IPARAG KR. DEKA AND DINESH SARMAH43 (2012), in their research article entitled,
“Constraints and prospects of agricultural marketing in Northeast India” has studied,
Agricultural marketing has a pivotal role to play in the socio-economic transformation of the
predominantly agrarian economy like India. This is now a well-recognized fact that our
nation cannot march ahead on the road of economic growth without ensuring a remunerative
price to the farmers for their produce. Development experiences have demonstrated that
efforts to increase agricultural production have generally been frustrating unless there were
parallel developments in marketing.

A. VINAYAGAMOORTHY AND K. SENTHILKUMAR44 (2012), in their research article

entitled, “Brand preferences and rural consumers in Salem district (T.N.)” has made some
important observations. India's FMCG sector is the fourth largest sector in the economy and
creates employment for more than three million people in downstream activities. Its principal
constituents are household care, personal care and food and beverages. The total FMCG
market is in excess of Rs. 85,000 cores. It is currently growing at double digit growth rate and
is expected to maintain a high growth rate. FMCG industry is characterized by a well-
established distribution network, low penetration levels, low operating cost, lower per capital
consumption and intense competition between the organized and unorganized segments.
Sunil Bahu Saheb IT and Sunitkumar Patil45 (2012), in their research article entitled, “Study
of different factors of promotion of service marketing” have made some notable observations.
Service sector is expanding rapidly in India. Services

play important role in the economy and in individual organization. Education," Insurance,
Banking are examples of service sector. Service marketing is different from product
marketing due to intangibility of 45 services. Education Service marketing involves basically
promotion through different media. Also, service marketing is becoming influencer
marketing. So, study of effectiveness of promotion and influencer was the topic of research.
A questionnaire was prepared according to the objective of the study. A targeted respondent
of admitted students were given questionnaire to record their responses.
G THAMIZHCHELVAJN46 (2012), in his research entitled, “Consumers' attitude towards
tele-marketing”, has discussed various issues related with consumers’ attitude towards
telemarketing. Telemarketing is a double-edged weapon. It has the power of immediacy and
personalization in the world which is hi-tech and depersonalized. It is a great way of building
prospect lists, boosting customer loyalty and clinching sales. Telemarketing is seen as a vital
means to reach a prospective customer.

Dr. S. Mahalingam, P. Nandha Kumar47 (2012), in his research article entitled, “A Study on
Consumer Behaviour Towards Selected Fast Moving Consumer Goods in Coimbatore City”
has studied consumer behavior towards selected FMCG products in Coimbatore city. He
concluded that: the consumer behavior plays an important role in marketing. This influenced
by various factors. In the changing global scenario, we find that consumers need and wants to
buy a product also changes with it. In this study titled "A Study on Consumer Behaviour
towards Selected Fast Moving Consumer Goods in Coimbatore City" the researcher has
assessed the socio-economic profile, shopping pattern consumer and found out the factors
influencing the consumer to purchase the selected FMCG products. The primary data
required for the study for collected through questionnaire which was distributed to
400samples chosen from Coimbatore city.

Gerald L. Manning, Barry L. Reece48 (2012), in their study, “Understanding Buyer

Behavior, Selling Today”, has studied issues related to the buyer behavior. They stated that:
we know that new products must satisfy 46 the customer’s needs but identifying these needs
can be very challenging. No one understands this challenge better then Kim Fernandez,
director of natural food sales for Alta Dena Certified Dairy. She sells a wide range of natural
dairy foods to wholesalers and retailers. Almost all her products are displayed in the dairy
department. In a typical supermarket, the dairy department accounts for about 9 percent of
sales.

Ed. Peelen49 (2012), in his book entitled, “Customer Relationship Management”, has
elaborated some important issues regarding customer relationship management. He states
that: The popularity of relationship marketing has not been the same in all European countries
through the years. Some have started slowly or late; for others the interest in it was directly
related to the economic climate; and some have shown continuous commitment. But
everyone who became involved with relationship marketing discovered that the field was
more difficult than at first expected. The necessary data were lacking as most organizations
were still more product and market- than customer-oriented.

Vinita Kaura, Saroj Kumar Datta50 (2012), Effect of Service Quality Factors on a Special
Category of Customers' Satisfaction in Indian Railways, have concluded that, “This study
attempts to identify the factors which explain maximum variance in service quality and
measure the effect of these factors on a special category of customers' satisfaction in Indian
railways. For the current study responses were gathered from the respondents residing in the
state of Rajasthan and traveled from Delhi to various other locations of India by train.
Facilities on train, Reliability, Convenience, Tangibility on platform and Food facility factors
have emerged from factor analysis. Only three factors facilities on train, reliability and
tangibility have contribution in explaining customers' satisfaction. Service quality is an
important factor in achieving customer satisfaction. Karishma Gulati & Neeru Mundra51
(2012), Factors Affecting Customer Perception of Vodafone: An Empirical Study in Pune,
have concluded that, “Customer satisfaction is the key for every industry and specifically for
service sector. Telecom sector is also focusing on this fact. After the in-depth study of the
perception of Vodafone and current market trend, it can, be concluded that the Indian market
is very open and vast for the telecom service. There is a great opportunity for the telecom
industry for the service providers. It is concluded that of the prepaid and postpaid
connections, prepaid connections are ruling over the postpaid connections.

Ganesh Tannu, B. N. Shivale & S. U. Gawade52 (2012), Rural Retailing in India Challenges
and Opportunities: Critical Analysis, have concluded that, “Small towns are fueling India's
economic growth and leading the group for marketers. Rural markets are known for their
durable growth and at the time of recession when global market was down, only rural markets
were marginally affected. Well! That is the most important reason that every big player of
retail sector is keen to invest in rural market. Be it electronics or FMCG. Rural consumers'
purchasing power has also been increased in recent days and several factors have led to an
increase in rural purchasing power. C. Muthuvelayutham53 (2012) in his study titled “The
Study of Consumer Brand Loyalty on FMCG- Cosmetic Products with Special Reference to
Madurai" analyzes the relationship between demographic variables on the brand loyalty of
the consumers and tries to identify the consumer's switching factors in respected selected
product category. This study is essentially a correlation study. Randomly selected sample of
600 from Tamil Nadu State, South India, particularly Madurai, Tuticorin, Kanyakumari
districts were selected to analyze.
V.N.G. Chandrasekhar54 (2012) in his study "Consumer Buying Behaviour and Brand
Loyalty in Rural Markets: FMCG", aims to study brand loyalty of various brands in rural
markets and identify the presence and the 48 importance of local brands. The primary data
was collected through a questionnaire. This study was conducted on a sample of 60
respondents in the village's satanapalli, tadipattri and mallapur.

Gihan Wijesundera55 (2010) in this article "Factors influencing the demand of beauty soap
among female consumers in the greater Colombo region", Purpose of this study is to explore
how the marketing mix & demographical factors influence the brand preference & purchasing
behavior of beauty soap among the female consumers in the greater Colombo region. The
results indicated that there were statistical relationships between price, product, education,
occupation Parimal H. Vyas and Madhusudan N. Pandya59 (2015), in their research entitled,
“Discriminating Factors and Structural Equation Model for Rural and Urban Consumers' for
Buying Mobile Phone in Vadodara District” has focused on the issues related with buying the
mobile phones in Vadodara district. According to the authors: The key reason behind
manifold growth of usage of mobile phone in India can be attributed to the reduction in
service charges and the cost of handsets.

DATA COLLECTION

The main research of the study is to measure the brand loyalty of the sample respondents to
the Britannia and Palle brand biscuits and know the main factors that influence their brand
loyalty. The study of any subject is made easier by examining it in an organized
fashion. Britannia seeks to maintain and enhance the Company's reputation by providing
our consumers high quality products and services. Marketing strategies of Food industry
depend of the number of factor like demographic profile, brand, health awareness, taste and
quality & etc. The company has to study the target region with regards to these factors. The
increase share of the market ,company have continued focus on advertising. in last four
weeks you learn about so many things like how Supply chain management work.(
Manufacture unit to model trade general trade, wholeseller, retailer, distributor,supplier,
finally general store how its work to a procedure wise) How company generating revenue for
the product. Main purpose is in Britannia how you add new model stores new outlet to
include in the list and give them to better provide service.
PROJECT:-

RESEARCH OBJECTIVE:-

Taking the feedback of Britannia customers about the schemes by Britannia and their
competitors in Goan market.

METHODS OF DATA COLLECTION:-

Primary data collection.

Through structured questionnaire.

Interview or feedback of the shopkeepers.

Secondary data collection.

Internet

Market research books

Sample Design:-

Geographical area: The study is conducted in puranapool area in Hyderabad.

Duration: the duration of the project is 90 days

Population: The population for this research will be mom & pop stores, mini supermarkets
who deal in confectionary products.

Sampling units: The sampling units used for this study will be those dealing with biscuits,
dairy, rusk, bread products of Britannia.

Sample size: The sample size will be 750 retailers

Sampling method: The method of sampling used is Convenience sampling method for
ease and convenience.
Source of Data: Primary data and secondary data is collected is used for doing this
research.

Primary data: The data is collected through Structured questionnaire and face to face
interview.

Secondary data: The secondary data is collected from company profile and industry,
official websites and other sources.

Research instrument: The research instrument used for data collection is questionnaire
and interview.

Questionnaire: The questionnaire is prepared in such a way that it is well structured and
non disguised so that it will be easily understandable by everyone. It includes open ended
questions, multiple choice questions and dichotomous questions.

QUESTIONNAIRE

OUTLET: ADDRESS:
CONTACT NO.

WHICH COMPANY'S DAIRY PRODUCT ARE YOU USING?

A) BRITANNIA B) AMUL C) OTHERS

WHICH OF THE PRODUCT MOSTLY YOU GO FOR?

A) GHEE B) MILK C) BUTTERD) CHEESE E)DAHI F) UHT MILK

WHAT IS THE LEVEL OF CONSUMPTION (OVER ALL DAIRY)?

A)VERY GOOD B) GOOD C) AVERAGE

ARE YOU READY TO CHANGE THE BRAND?

A)YES B) NO
WHAT FACTORS INFLUENCE YOU FOR CHANGING THE BRAND ?
A) QUALITY B)BRANDC) PRICE D) TASTE6.

DO YOU KNOW BRITANNIA DAIRY PRODUCTS?

A)YES B) NO

Interview: The interview methods involved in asking oral questions for filling
questionnaire and used for further analysis.

Frame work: The statistical analysis is done through simple percentage analysis, bar diagrams
and pie charts.

TIME FRAME:-

3th may to 31st may- Initial observation of market/product promotion .

1st june to 20th june- information collection & collection of data/Geo Tagging.

21th June to 15th July- New outlet add /interpretation of data analysis.

16st July to 1st August – Final conclusions, finding/ Analysis, and Project completion.
 BIBILOGRAPHY

Initial Bibliography: www.Britannia.co.in / Research project article ( Universal Business

School Mumbai)
https://googlescholar.in

https://indianjournals.com

http://www.slideshare.net

Initial reference:
http://www.iosrjournals.org/iosr-jbm/papers/ncibppte-volume-5/53.pdf

https://www.motilaloswal.com/site/rreports/636464196585794350.pdf

https://www.motilaloswal.com/site/rreports/636464196585794350.pdf

https://www.ukessays.com/essays/marketing/a-market-analysis-of-britannia-industries-
marketing-essay.php

http://www.zenithresearch.org.in/images/stories/pdf/2012/May/ZIJBEMR/6_ZIBEMR_VOL
2_ISSUE5_MAY2012.pdf.
 NAME:- DEBASISH BEHERA

NAME:-
Mail-ID DEBASISH BEHERA
:- debasish9336@gmail.com

Mail-ID:- debasish9336@gmail.com
Phone Number:- 8019261513

Name Of thePhone
FacultyNumber 8019261513
guide:-:-(Professor K Ratna Geetika)

Company
Name guide’sguide
Of the Faculty name:-:-(Professor K RatnaSONI)
(MR HARSHAD Geetika)

Company guide’s
Mail-ID name:- (MR HARSHAD SONI)
:- harshadsoni@britindia.com

Mail-ID:- harshadsoni@britindia.com
Phone Number:- 9819904851

Phone Number
Designation:- (SOUTH :- 9819904851
REGIONAL HEAD HYDERABAD)

Designation:- (SOUTH REGIONAL HEAD HYDERABAD)