Strategic Management

Analysis of Britannia
 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 products are available across the

country in close to 5 million retail outlets and
reach over 50% of Indian homes.

About the Present market share of the company is 27%

Company
Presence in more than 60 countries across the
globe.

Core values are: Leadership, Ownership, Passion

for Learning, Respect
 Journey So Far…..
Established
Operation Launched Bread
1892 It was 1892 when people got a
Launch of bread and breakfast
taste for the biscuits in our oven.
took on a new notion.
Word spread faster than the
butter on the bread and sure
enough, 26 years later, the 1954
1975
fabric of Britannia was Woven.
Set Up own
distribution
network
The more the company
dared , the more people
will be cared, So in 1975
Incorporated as they created their own
1918 distribution network.
Public Limited
Company
It wasn’t long before the taste
became the word of mouth. The
company grew bigger and
became a Publicly Listed
company.
 Journey So Far….
Wadia group acquires stake
in Britannia and launched
50-50 is launched.
1993 Established world class
R&D facility in Bangalore

2016 2018

Set up an integrated
mega food park in
Maharashtra

1997

2007
Introduced the corporate
identity- “Eat healthy and think First overseas
better” and entered the dairy manufacturing through
business. acquisition of SFIC and Al
Salan in Dubai and Oman
 Vision and its Fulfilment

Vision:

 To dominate the food and beverage in the market India with a distinctive the range of “tasty yet healthy” Britannia brands.
 Every third person in India should be a Britannia consumer.

Vision fulfilment:

 Strong Distribution network can get them reach many and increase the market share to 33% from 27%
 Company has widened the product range into delectable cakes.
 Introduced the corporate identity “Eat healthy, Think Better" & entered the dairy business
 Consumer Delight, is the major Purpose.
 Mission and its Fulfilment

Mission:
 To dominate the food and beverage market in India.
 To be one of the best biscuit company.
 We want to be part of out consumer at home, out of home, a natural part of his life.

Mission fulfilment:

 Creating a focused group to work on Adjacent bakery & other businesses for stimulating growth.
 Areas of automation and significant capabilities in delivery of consumer technology up gradation and innovations
 Food safety programs were carried out to ensure safety of the delivered products to consumers.
 Enter into the adjacent categories on the back of differentiated product offerings
 TRENGTHS
 Britannia has been around 120 years in the industry and is one of
India’s most trusted brand with strong brand recall. Britannia is a
leading food company in India with over Rs 9000 crores in revenues,
delivering products in through 5 million retail outlets to more
than half the Indian population.

 Brand portfolio of Britannia includes a wide range of bakery

products like biscuits, rusks, cakes and dairy products like milk,
butter, cheese, etc.

 Strong distribution network ensuring proper availability of the

products even in the remotest of areas.

 Market penetration through strong marketing and advertising

efficiency. Significant market share of approximately 30%.

 Innovative products for health conscious people like oats and

porridge, Britannia Nutri Choice biscuits for diabetes patients, Vita
Marie Gold, etc.

C
 Strong presence in rural markets.

 Products offerings across all segments and income groups is

a big boon for Britannia. It plays a major part in the market share of
the organization.
 EAKNESSES
 Over dependency on the biscuit business: Britannia’s major
portion of revenue comes from biscuit business. Over dependency
on the same may affect their long term existence in the business.

 Various brands got commoditized over time: Brands like

Bourbon & glucose biscuits of Britannia got commoditized over
time such as in case of “bourbon”, Parle also introduced “Parle
bourbon” biscuits. Brand name when used like this by other
companies, creates confusion in the mind of the consumers
resulting in loss of sale.

 Struggling dairy business: Dairy business contributes only a

small portion of the company’s overall revenue.

 Heavy expenditure on advertising and marketing.

C
 PPORTUNITIES
 Increase in purchasing power of people in India.

 Product line extension can benefit Britannia as the

company has loyal customers.

 Emerging Dairy Industry: With organoleptic (flavor, taste

& color) features shaping the dairy industry, improving dairy
products can help the company to improve their market share
& reposition itself in dairy market.

 Changing lifestyle & demand for healthier food

products: Improvement in literacy rate, health awareness,
changing lifestyle and increase in disposable income are
shaping the demand for healthy food products.

 Overseas Market: Expanding its business to many other

overseas markets can help the company to emerge as a global

C
player in the food products.
 C HALLENGES
 Competition in the market: With increasing number of
players (Amul, Nestle, ITC, Parle), it’s becoming very hard for

C
the company to differentiate themselves from others. There is
also threat from counterfeit products destroying its brand
image in the market.

 Price of raw material: Increasing price of commodities due

to inflation will result in further increase in the price of the end
product. Further increase in price will result in reduced
consumption causing decrease in profitability.

 Buyers power: With a lots of brands providing different sorts

of products and benefits, the brand loyalty reduces. This
results into brand switching where consumers get power to
select a brand based on several factors like
availability, reference group recommendation, preference &
price.
 Strategic Points
 Build strong presence in international markets: The company’s commitment to quality has seen it establish presence in over 70
countries across the globe, and serviced from 20+ locations.
 Developing products suited to the local preferences: Products are made to suit the palate of all consumers and is customised
based on the tastes of the local consumers.
 Aggressive expansion plans through subsidiaries and joint ventures: Britannia is expanding their reach through a series of
acquisitions, partnerships, and joint ventures in key markets
 Differentiated product offerings: The product portfolio is split into numerous segments and each segment has multiple products
that cater to consumers of all ages. They are manufactured using indigenously sourced raw materials.
 Distribution Momentum: The plant locations and distribution centres are strategically chosen to reduce transportation, warehousing,
and handling costs.
 Cost Efficiency: This is achieved by mass scale manufacturing. Mega factories have multiple lines for the production of all categories of
products.
 Adjacent Business: Within the food processing business, Britannia has chosen to diversify in order to increase revenue. Along with
baked goods, they manufacture dairy products and fried foods too. This move gains more consumers and gives the existing consumers
more reasons to stay loyal to the brand.
 Sustainable Practices

 Britannia was the first company to cut out all trans fats from the formulation of all its biscuits.

 Upgrading suppliers for automatic operation.

 Replacing manual handling of flour with automation.

 Converting its wet/food waste into manure and recycling paper and plastic waste to office

stationery with the help of “Khadi Gram Udyog.”

 15% of the production is through green fuel.

 Patent pending oven design to burn biomass fuel with flexibility to burn oven fuels.
 Making a difference to the community
 The company developed a high protein biscuit, Probisk to combat
malnutrition and distributed those through relief agencies in 1974.
 Special biscuits to address anaemia among pregnant women and kids
across 2684 Anganwadis in Northern Karnataka FY 2017-18.
 'My Marie Gold, My Start-up’ campaign to identify the need to give
housewives the opportunity to turn into businesswomen.
 ‘Britannia Good Day – Smile Makers of India’ campaign
recognizes people from different walks of life, who through exemplary
acts, have spread smiles to millions of Indians .
 While Nutri Choice championed the ‘power of a good choice’
among health seeking adults through its ‘It all starts with a good choice’
campaign, Milk Bikis focused on kids nutrition by urging them to focus
on every day through its ‘kal ke liye roz’ campaign
Any Questions?
 Thank You
Have a Good Day!
By- Group 5 (F1)

1827203
1827203 -- Akash
Akash Agarwal
Agarwal
1827214
1827214 -- Nikhil
Nikhil Shakriya
Shakriya Jain
Jain
1827222
1827222 -- Shivam
Shivam Kumar
Kumar
1827227
1827227 -- Vishwas
Vishwas MM Parashar
Parashar
1827244
1827244 -- R
R Shravya
Shravya
1827248
1827248 -- Sonal
Sonal Agarwal
Agarwal