SUCCESSFUL STRATEGIES OF TOP

LEADING COMPANIES

TEAM MEMBERS:- Navya Gulati, Ahmed Areeb, Chirag Agarwal,

Chirag Haldar, Dakshina Rajesh

Britannia Industries is one of India’s leading food companies with a 100 year
legacy and annual revenues in excess of Rs. 9000 Cr. Britannia is among the
most trusted food brands, and manufactures India’s favorite brands like Good
Day, Tiger, NutriChoice, Milk Bikis and Marie Gold which are household
names in India. Britannia’s product portfolio includes Biscuits, Bread, Cakes,
Rusk, and Dairy products including Cheese, Beverages, Milk and Yoghurt.
Britannia is a brand which many generations of Indians have grown up with
and our brands are cherished and loved in India and the world over. Britannia
products are available across the country in close to 5 million retail outlets and
reach over 50% of Indian homes.
The company’s Dairy business contributes close to 5 per cent of revenue and
Britannia dairy products directly reach 100,000 outlets.

We have a presence in more than 60 countries across the globe. Our

international footprint includes presence in Middle East through local
manufacturing in UAE and Oman, are the No 2 biscuit player in UAE with a
strong contention to leadership and have a similarly strong market position in
the other GCC countries. We are also the market leaders in Nepal and are in
the process of investing a manufacturing facility in the country. Brand
Britannia is listed amongst the most trusted, valuable and popular brands in
various surveys conducted by prestigious organizations like Millward Brown,
IMRB, WPP Group and Havas Media Group to name a few.

Business Model of Britannia

Britannia is a brand that decided to serve the people with utmost care with
deliciousness and nutrition. It basically focuses on two things, Bakery
products, and Dairy products. Its main motive is to provide healthy and
nutritious food items to the people. With that target, it has become the first food
company that has zero Trans Fat in its food items.

It mostly deals with the outdoor and traditional forms of advertisements for
its marketing strategy. It placed its bets on Television and radio advertisements,
thus attracting almost every group of consumers.
 What is unique about Britannia’s Business Model?
Britannia becomes one of the leading Indian bakery brands by following
some unique strategies. It has 13 factories located all over the country and has 4
franchises.

Some of the key points of Britannia’s business models that make it unique are:

• Its main objective is to promote biscuits of the Britannia brand more than
other products.
• It concentrates on providing food items to its customers that will fulfill
their daily need for nutrition.
• It believes in quality food items that deal with fruits, nuts, seeds, pulses,
dairy, and protein substances that are necessary for the healthy growth of a
normal human being.
• Focuses on producing better quality food and selling them economically in
prices for every income group.
 • It has joined hands with the Government and different NGOs to fight
against malnutrition and undernutrition prevailing in the country.
• It has started the Britannia Cares program that offers fitness activities to
ensure a healthy lifestyle amongst its employees.
• To counter attack micronutrient deficiencies in India, it has taken steps to
avoid all those products that are harmful according to the Food Safety and
Standards Authority of India (FSSAI)
• Britannia also decided to curb down the salt and sugar limit of its snacks to
promote Eat Right Movement by FSSAI in 2018.

How Does Britannia Make Money?

There is a number of ways Britannia makes money although its main focus is to
provide nutritional elements through their food items to everyone.

• Britannia’s revenue depends on the sale of its bakery and dairy products.
• 95% of sales depend on the products dealing with biscuits.
• 5% of sales depends on dairy products.

Britannia has signed a deal of joint venture with a Greek Company named
Chipita S.A to produce and sell ready-to-eat croissants in India. It is also working
on expanding its demand abroad, especially in Africa and South East Asia.

Marketing Mix Of Britannia

The marketing mix of a company is an assortment of different elements of the

marketing plan. When a company decides to market its products to customers,
it does a small exercise called Segmentation, Targetting and Positioning (STP)
of its customers. Let us discuss these concepts further.

Segmentation
This is the process of separating the customers into smaller categories on
common factors to better understand and generalise their needs and wants.
We have researched Britannia’s segmentation strategy and it is as follows:
 • Demographic Segmentation
• Kids:- Fruity Rolls, Tiger and treat
• Matured People:- Good Day, Cream Cracker
• Youth:- Little Hearts, Cream Biscuits
• Gender:- For All

• Behavioural Segmentation
• Benefits:- for health benefits, all Nutri products, tea time snack
biscuits
• User Status:- Little Heart Biscuit and time pass.
• Usage Rate:- Marie Gold is for high usage rate Customers.
• Occasion:- Snack Biscuit, Fruit rolls.
• Psychographic Segmentation
Britannia in the past 100 years has adapted accordingly to the Indian
market and requirements like running a few of the successful campaigns
and offering some great products according to age group.

Targeting
Targeting is the step that follows segmentation, in which the company selects
the customer types it wants to serve. Britannia in the past 100 years has not
only focused on the new generation of kids but also has focused on elderly
people by various products:
• Britannia Tiger- Low price and for low-income group
• Britannia Marie Gold:- Biscuit and Family size.
• Treat fruit roll:- For children during the celebration and occasional time.

Positioning
This is the final step of the process in which after deciding the customer the
company wishes to target, it decides what kind of messaging or kind of stance
they should take while marketing the product.
Britannia has many brands in its portfolio and it smartly manages to use each
of them to position itself in all segments. Have a look at their smart
positioning:
 • Tiger:- Positioning for the mother to choose for kids
• Little Hearts:- Positioned as snacks for young people.
• Good Day:- Positioning is as everyday biscuits which brings happiness in
everyone lives

Britannia has been one of the market share holder for many years in India. It
has also concluded some foreign deals, such as working with Peek, Frean and
Company which is a successful UK biscuit company, and also completed
takeovers such as that of Parry’s in 1975 which enabled the company to
distribute its goods to more people. The company was built up and was known
for many years as ‘the Biscuit King’. Britannia currently has an estimated 38%
of the market share.

The company has also invested in its dairy products, and in 2001 announced
a joint venture with the New Zealand Dairy, allowing it to produce cheese and
butter amongst other things. The company distributes its goods up and down
the length and breadth of India. In 2007 BIL agreed to a joint venture with the
Khimji Ramdas Group, and acquired a 70% beneficial stake in the Strategic
Foods International Company based in Dubai. The company has been voted one
of India’s 100 most trusted companies, as listed in the Brands Trust Report.

For distribution, Britannia follows the FMCG channel of distribution wherein it

appoints distributors at select locations. These distributors are then responsible
for handling dealers and retail showrooms. Modern trade channels like Big
bazaar and D mart as well as others are handled directly by the company.
The distribution channel follows breaking the bulk where in large amounts are
transferred from factory to C&F, from C&F to distributor and then forward to
retailers and dealers. The distribution in urban areas is fantastic with Britannia
being present almost everywhere. However, the rural penetration of the
company is still less because of the challenges of distribution in rural area.

• FMCG distribution model

• Breaking the bulk is applied
• Strong distribution in the country
• Rural distribution needs to be stronger

Promotions in the marketing mix of Britannia

The strongest asset for the promotion of Britannia products is the product itself.
The products are tasty and people like it. Thus, a pull is created directly by the
product. Same is in the case of Britannia as well. However, the advertising
spends for Britannia are controlled because of the brand equity of Britannia
products and the presence of the brand for almost a century in the Indian
market.

The company uses most of the usual methods of advertising, including

billboards, magazines, tv ads and point of purchase advertising. In November
2012, BIL hired Salman Khan to endorse its Tiger range of products. The
popular Bollywood actor promotes the core values of the Tiger brand range
because of his own dashing style and personality. Britannia has high advertising
spends for products like Good day and Bourbon which are almost stars for the
Britannia brand. However, the investment for marketing of Dairy products is
minimal because a lot of expenses have to be done for the distribution of the
products. Britannia has enough brand and clout in the market, because of its
constant presence in the last few decades, that its product receive a natural pull
from the market.

• Relies more on pull than push

• Has amazing brand equity due to presence in the market for last
many decades
• Concentrates on promoting biscuits more than any other product

Price in the marketing mix of Britannia

Competitive pricing is the sole pricing strategy which Britannia uses. Parle is
one of the major competitors of Britannia and in that, Parle G has remained
unbeatable for decades. In dairy, Amul is a strong competitor for Milk, Cheese
and other dairy based products. In bakery products, you will find local
competition as well as Monginis and other veg cake makers who have their own
line of products. To stay above all of them, Britannia adopts a
competitive pricing strategy. Thus, Britannia products are much better in
quality and are good in price as well. The pricing strategy along with distribution
has been so strong, that people buy these products even on Railway stations and
while traveling, instead of buying local snacks.

Conclusion
‘Britannia’, this name carries the trust of millions of people. From providing
biscuits to the soldiers during World War II to being responsible by taking steps
to eradicate malnutrition and undernutrition from the country. It has come a long
way to be one of the biggest Food and Beverage companies of India.
Myntra is an e-commerce company of fashion and casual lifestyle items. It is
headquartered in Bengaluru, Karnataka, India. The company was founded in
2007 with the aim of selling personalized gift items. It was started in 2007 by
Mukesh Bansal, Ashutosh Lawania, and Vineet Saxena. In its introductory years,
Myntra traded in on-demand personalization of gift items and followed the B2B
model. B2B transaction refers to trade among wholesalers, retailers, and other
business groups only. Following is the graph of Myntra in its initial years. In
2010, it started web retailing of clothes. In the same period, it also started trade
in customised items. In 2014, Myntra converged with Flipkart to give competition
to Amazon that had entered the Indian market in 2013. In this period Myntra
started selling over 1000 brands to over 9000 pin codes of India.

Further Growth
In 2015, Myntra shut down its website and operated through the application only.
But because of this business model suffered a loss of 10%, it revived its website
also. The further growth of Myntra can be seen from the below-drawn chart. In
2016, it also paired up with the Ministry of textiles to promote handloom
industry. Myntra has bought various small companies to extend its reach and to
improve its logistics and technological work. Myntra has partnered with over
3,000 fashion and lifestyle brands including Nike, Adidas, Diesel, CAT, Harley
Davidson, Ferrari, Timberland, and others.
 Business Model of Myntra
The business model of any company is the strategy it uses to gain a larger market
space.

Value Proposition
Value proposition refers to distinct services a company provides that enables it
to gain commercial value. Myntra offers a wide selection of products. Other
than that, Myntra uses ‘outbound logistics’ as a method of a value proposition.
It means it uses a third-party courier service to reduce the lead time. It also
has started ‘Alteration Service’ in 2019. It enables Myntra to connect to its
customers in offline mode also.

Key Resources
The human resource department plays an important role in the success of
Myntra. It focuses on the work-life balance of employees. Additionally, the
supplier and wholesalers also are some of the key resources. The staff that
comprises delivery persons and IT personnel are also an important resource.

Key Activities
Myntra envisages itself as a fashion portal. It serves as a platform for fashion
content, trends, and tips. Myntra has tied up with 3000 brands and offers a high-
quality product. Along with this, It also focuses on marketing and sale
management.
 Key Partners
Ever since it has been taken over by Flipkart, the partners of Myntra have
increased. Its partners are different brands that give their product to Myntra for
listing. In 2019, Myntra entered the luxury segment by partnering with Purple
Style Labs- a luxury brand that sells apparels up to 1.5 lakh. This helps in
customer acquisition.

Key Channels
The flow-chart describes the key channels Myntra uses to operate.

The channels through which Myntra operates are its applications and website. It
also operates through affiliate programs.

Customer Relationship
Myntra operates through a self-service platform that is supported by 24/7
customer care service. It has also decreased its shipping time from 48 hours to 24
hours. It ensures it maintains a sound relationship with customers.

Customer Segmentation
Myntra has a massive urban market, and it is very popular among discount
lovers. Myntra caters to fashion enthusiasts as it offers as many as 15000
products of one category. Myntra also hosts “End of Reason Sale”, which gathers
enormous crowd, according to Aman Nagaram, the C.E.O of Myntra. Such sales
and discounts also attract people from tier 2 and tier 3 cities.
 Cost Structure
Myntra spends most of the revenue in purchasing stock in trade. Additionally,
Myntra spends on technology up-gradation and infrastructure improvement.
Other than that, it also has to spend on warehouse management and
advertisements. Salary to workforce comes under the fixed cost of Myntra.

Marketing Strategy of Myntra

Myntra also ropes in celebrities, like Sonakshi Sinha to promote the brand. It
started a show called “fashion Influencer” in 2019 to market the brand more
extensively. Other than that, Myntra also uses social media platforms, like
Facebook and Instagram, to promote its sale season. In its End of Reason Sale
(EORS) 2019, Myntra sold 1.77 lakh items within the first 10 minutes of the sale
going live. Over 3.3 million products were sold on day one.

Competitive Strategy of Myntra

Myntra’s top competitors include Yepme, Amazon, LimeRoad, Snapdeal, Voonik,
Zopper, HSN, GoRootz, Fynd and Flipkart. The competitive advantage of e-
commerce companies is mainly because of cost leadership or product
differentiation. With Myntra, it is because of cost leadership. However, before
2010, Myntra also had gained market space in product differentiation by
providing customised t-shirts and mugs. For instance, during IPL, Myntra
provides t-shirts with a person’s name printed on it.
 Revenue Model of Myntra

Myntra earns through an aggregator model. It buys current season merchandise

from various brands and makes the product available on its website. It earns
through commission. The revenue model of Myntra is that of B2C (Business to
customer) now.

Summary
Myntra has become a worth competing fashion e-commerce company because of
its unique business model and attractive discount offers. Myntra also keeps on
revising its business strategies with exigencies of time. It started with the B2B
model and shifted to the B2C model. Thus Myntra offers good competition to e-
commerce companies, especially in the apparels sector.