ASSIGNMENT OF MANAGEMENT CONTROL SYSTEM (MCS) ON BRITANNIA INDUSTRIES

Prepared By:

KUNJ SHAH (127700592099) KINAL SHAH (127700592098) KHUSHBOO SUMARIA (127700592108)

INTRODUCTION TO INDUSTRY (FMCG)

Fast-Moving Consumer Goods (FMCG) or Consumer Packaged Goods (CPG) are products that are sold quickly and at relatively low cost.

Examples include non-durable goods such as soft drinks, toiletries, and grocery items. Though the profit margin made on FMCG products is relatively small, more so for retailers than the producers/suppliers, they are generally sold in large quantities.

FMCG is probably the most classic case of low margin/high volume business. Many of the players on the retailer side such as Walmart, Carrefour, Choithram, Tawseel, Sheel, Walgreens or Metro Group and supplier side are among the largest and most recognized global companies.

Fast-moving consumer electronics are a type of FMCG and are typically low priced generic or easily substitutable consumer electronics, including mobile phones, MP3 players, game players, and digital cameras which are of disposable nature.

The following are the main characteristics of FMCGs:

From the consumers' perspective: o o Frequent purchase Low involvement (little or no effort to choose the item products with strong brand loyalty are exceptions to this rule) o Low price High volumes Low contribution margins Extensive distribution networks High stock turnover From the marketers' angle: o o o o

INTRODUCTION TO COMPANY (BRITANNIA)

The story of one of India's favorite brands reads almost like a fairy tale. Once upon a time, in 1892 to be precise, a biscuit company was started in a nondescript house in Calcutta (now Kolkata) with an initial investment of ` 295. The company we all know as Britannia today.

The Company's principal activity is the manufacture and sale of biscuits, bread, rusk, cakes and dairy products.

In 1918, C.H. Holmes, an English businessman in Kolkata, was taken on as a partner and The Britannia Biscuit Company Limited (BBCo) was launched.

The company name finally was changed to the current "Britannia Industries Limited" in 1979. In 1982 the American company Nabisco Brands, Inc. became a major foreign shareholder.

On the operations front, the company was making equally dynamic strides. In 1992, it celebrated its Platinum Jubilee. In 1997, the company unveiled its new corporate identity - "Eat Healthy, Think Better" - and made its first foray into the dairy products market.

In 1999, the "Britannia Khao, World Cup Jao" promotion further fortified the affinity consumers had with 'Brand Britannia'.

Britannia strode into the 21st Century as one of India's biggest brands and the pre-eminent food brand of the country. It was equally recognised for its innovative approach to products and marketing.

In recognition of its vision and accelerating graph, Forbes Global rated Britannia 'One amongst the Top 200 Small Companies of the World', and The Economic Times pegged Britannia India's 2nd Most Trusted Brand.

Today, more than a century after those tentative first steps, Britannia's fairy tale is not only going strong but blazing new standards, and that miniscule initial investment has grown by leaps and bounds to crores of rupees in wealth for Britannia's shareholders.

Having succeeded in garnering the trust of almost one-third of India's one billion population and a strong management at the helm means Britannia will continue to dream big on its path of innovation and quality. And millions of consumers will savor the results, happily ever after.

Between 1998 and 2001, the company's sales grew at a compound annual rate of 16% against the market, and operating profits reached 18%. More recently, the company has been growing at 27% a year, compared to the industry's growth rate of 20%. At present, 90% of Britannias annual revenue of ` 22 billion comes from biscuits.

BRITANNIA INDUSTRIES
Category USP
Food Products Indias very own bakery and dairy products brand that is trusted for its quality.

STP
Segment Target Group
People who need and consume bakery and dairy products Middle and upper middle class families, especially kids

Positioning

Indias leading manufacturer of premium quality and healthy biscuits, bakery and dairy products

COMPETITION
Parle Amul

Competitors

Nestle Mother Dairy

PRODUCT LINE OF BRITANNIA

Britannia Products The Britannia Products consists of the four sectors: Biscuits Sectors Bread, Cakes and Rusk Sectors Gift Sectors Dairy Products. Bread, Cakes and Rusk Sectors Britannia Bread Gift Sectors Dairy Products

Biscuits Sectors

Britannia Tiger Biscuits Milk Biscuits Britannia Cookies, Britannia Biscuits, Britannia Biscuits, Britannia Biscuits Britannia Magic Britannia Good Day Nice Time Treat Pure 50-50

Premium Assorted Cookies Cookie Delight, Meetha Namkeen Healthy Gifts, Royale Special Choco Delight Veggie Delight Meetha Namkeen

Cheese

Britannia Toasted Rusk

Butter Ghee Milk Gourmet Cheese Dahi Dairy Whitener TigerZor Choco Milk Badam Milk

Time Pass Little Hearts Bourbon Britannia Marie Biscuits Britannia Nutri Choice Biscuits

CORE COMPETENCY:
Britannia's core competency is in the baking arena and this will give it a competitive advantage.

BCG MATRIX (BOSTON CONSULTING GROUP)

Companies that are large enough to be organized into strategic business units face the challenge of allocating resources among those units. In early 1970s the Boston Consulting Group developed a model for managing a portfolio of different business units (or major product lines). The BCG model is based on the product life cycle theory that can be used to determine what priorities should be given in the product portfolio of a business unit to ensure long term value creation. A company should have portfolio of products that contain both high growth products in need for cash inputs and low growth products that generate a lot of cash. It has 2 dimensions: Market Share & Market Growth. The basic idea behind it is that the b9igger the market share a product has or the faster the products market grows the better it is for the company.

BCG MATRIX OF BRITANNIA

STARS: Britannia Tiger Biscuits Milk Biscuits Britannia 50-50 Little Hearts Bourbon Britannia Marie Biscuits.

QUESTION MARK:
Britannia Cookies Britannia Nice Time Biscuits Britannia Pure Magic Choco Delight Veggie Delight Gourmet Cheese Britannia Bread

CASH COWS:
Premium Assorted Cookies Cheese Britannia Toasted Rusk Butter Milk Time Pass

DOGS:
Ghee Dahi Dairy Whitener TigerZor Choco Milk.

SWOT ANALYSIS OF BRITANNIA

Indias most trusted brand with strong brand recall. 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. Major share in biscuits industry.

STRENGTH

Marketing and advertising efficiency. Innovative products for health conscious people like oats and porridge, Nutri Choice biscuits for diabetes patients, Vita Marie Gold, etc. Strong presence in rural markets. Products for all food and snacks segments. Lower market share in dairy segment. Heavy expenditure on advertising and marketing. Similar products produced by many companies means high brand switching. Increase in purchasing power of people in India.

WEAKNESS

OPPORTUNITIES

Increase its share in the dairy industry. Product line extension. Expansion in other countries. Lower price offering competitors Local dairies and bakeries

THREATS

Inflation can cause fall in sales and revenue Rise in cost of raw materials

SALES FIGURES
Year 2009-10 2010-11 2011-12 2012-13 Net Sales 3403.5 4213.7 4947.04 5564.38 % Change 24 % 18 % 12 %
(In crores)

FINAL SHOW OFF

Overall Market Share

Priya-Gold Kraft Oreo 3% 3%

ITC 11% Horlicks 1%

Britannia 33%

Others 16%

Parle 33%