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INTEGRATED MARKETING
COMMUNICATION [IMC] IN BRITANNIA
SUBMITTED TO:
UNIVERSITY OF MUMBAI
ACADEMIC YEAR
(2014-15)
SUBMITTED BY:
ANAGHA PURANIK
ROLL NO: 16
M.COM PART-I (BUSINESS MANAGEMENT)
(SEMESTER 2)
PROJECT GUIDE:
PROF S.N.CHITALE
VPMS
K.G. JOSHI COLLEGE OF ARTS &
N.G. BEDEKAR COLLEGE OF COMMERCE
(THANE)
CERTIFICATE
OF
PROJECT WORK
This is certify that
Mr. / Ms.
_______________________________________________
Of
PROJECT GUIDE
EXTERNAL EXAMINER
DECLARATION
Student
(ANAGHA PURANIK)
Place: Thane
Date:
ACKNOWLEDGEMENT
INDEX
SR
CONTENTS
NO
PAGE
NO.
.
1.
INTRODUCTION
2.
COMPONENTS OF IMC
3.
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4.
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5.
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6.
COMPANY HISTORY
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7.
8.
9.
10.
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CONCLUSION
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BIBLIOGRAPHY
Introduction:-
Personal Selling
Social media, and so on
Integrated Marketing Communication - Let us now understand what does
integrated marketing communication mean?
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facilities and has modernized and upgraded its facilities in the last five years. It
has also forayed into the Dairy Business with the launch of Cheese, Butter,
Ghee, Dairy whitener and flavored milk products.
Britannia's controlling stake is jointly with Groupe Danone and Nusli
Wadia. The Company is controlled by the Wadias. Danone provides product
support and technical assistance to the venture. Groupe Danone is one of the
leading players in the world in bakery products business. It acquired interest in
Britannia Industries in 1989 and acquired controlling stake in 1993. The Wadia
Group, headed by Nusli Wadia, is one of the leading industrial houses in the
country, with interests mainly in textiles and petrochemicals.
Britannia is the market leader in the organized biscuit and bakery
product market in India. They are the only Indian biscuit company with a
presence across all segments, from Glucose, Salted, Arrowroot and Premium
Cream Biscuits. Biscuits contribute 84% of Britannia's total turnover. Other
products include bread (6 per cent) and cakes (2 per cent). Britannia diversified
into dairy products in 1997 with processed cheese and dairy whitener. The
portfolio was expanded with the launch of butter, pure, flavoured milk in
tetrapacks and UHT milk.
companys total turnover. Over the years, Britannia has trimmed down its wide
product portfolio and focussed on value-added instead of low-margin products.
The company divested a range of unrelated business interests in soyabean
extraction, edible oils, export of cashewnuts and shrimp, granites and software.
The company rationalised its products portfolio by reducing the products from
35 to around 25.
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company claims a share of 33 per cent of the organised cheese market and 15
per cent of the milk powder.
Plant locations
Britannia's plants are located in the 4 major metro cities - Kolkatta,
Mumbai, Delhi and Chennai. A large part of products are also outsourced from
third party producers. Dairy products were out sourced from three producers Dynamix Dairy based in Baramati, Maharashtra, Modern Dairy at Karnal in
Haryana and Thacker Dairy Products at Howrah in West Bengal.
Competitive position : The entry of new MNCs have not posed a direct threat
to Britannia, as these MNCs have positioned their brands in the premium/health
segment. Britannia has maintained market leadership with a 40% volume share
and 48% value market share in the organized sector. FMCG major HLL is
expected to venture into the segment. Britannia has been aggressive in new
launches and marketing during the last 2 years anticipating the competition. It
has also recently acquired a stake 49% stake Kwality Biscuits, gaining a. strong
foothold in the southern market
Bread is one of the most widely consumed processed foods in the country. The
market is estimated at 1.5mn tpa. The industry is dominated by a large number
of players in the unorganized sector, which accounts for over 80% of the
market. Britannia Industries and Modern Foods (now owned by HLL) are the
only two players with a national presence in packet slice bread segment. There
are several other regional players who have significant market shares in their
respective local areas. Britanniass bread business has been slowly degrowing
and registered a 9.4% yoy volume degrowth in FY01.
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Dairy : India has emerged as the largest milk producing country in the world
manufacturing 81mn tons of milk pa. The country has one of the largest
livestock populations of the world and this industry plays a crucial role in terms
of providing income to around 70 million farmers in 500,000 villages. The top
6 states viz. Uttar Pradesh, Punjab, Madhya Pradesh, Rajasthan, Tamil Nadu
and Gujarat account for 58% of Indias milk production. The market size of
milk in India is worth Rs 45,000 cr and more than 90% of the market is
unorganized. Britannia has forayed into this huge market under a brand called
Milkman. Britannias dairy business has been growing at a fast pace on the
low base. Volume growth was 50% and value growth was 47% in FY01. In
value terms the Dairy business contributed to 10% of turnover in FY01. Prior to
the entry of Britannia, the organized market for dairy products like butter and
cheese was dominated by the regional milk cooperatives, such as Amul, Vijaya,
etc. Imported brands are also freely available in the country today. In the
organized domestic segment, Amul remains the dominant player and will
continue to be a stiff competitor, given its sourcing advantage and market
savviness. Significant entry barriers exist, but once the network is in place, it is
a cash generating business. The dairy market offers long-term opportunities for
organized players such as Britannia. Britannia outsources its milk requirement
from Dynamix Diary in Maharashtra and Karnal Dairy In Haryana.
Operating margins have been improving despite the fast pace of new product
launches in the last 2-3 years. Rationalization of manufacturing operations, and
greater contribution of higher margin dairy products have both contributed to
the margin gains. Britannia has decided to hive off its dairy business into a joint
venture with the New Zealand based Fonterra Cooperative. Britannia and
Fonterra will each hold 49% of the Rs2.25bn equity, while the balance 2% will
be held by business associates.
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been Britannias biggest success. The company has Tiger brand in the lowprice-low income segment. In this segment, value growth is lower than
volume growth. Tiger brand operates in a competitive market where price is
an important factor.
In Dec. 2000, Britannia dropped its plans to enter the mineral water
segment. The move comes close on the heels of Danone launching its own
mineral water brand, Evian, in India, through a separate wholly-owned
subsidiary, Danone India. Groupe Danone is globally the second-largest
producer of mineral water in the world with brands such as Evian, Volvic,
Ferrarelle Badoit, Font Vella and Aquaprima among
others. The mineral water segment in India is
growing at around 50% annually and is dominated
by Bisleri and Bailley.
In 2001, the launch of Maska Chaska, the
snack biscuit extension of Britannia's 50-50, is
selling more than the mother brand in certain markets like north Karnataka.
And in doing so, Maska Chaska is contributing nearly 30% to the mother
brand 50-50's total sales across the country
In October 2001, Britannia had agreed in-principle to acquire a 49%
stake in Snacko Biscuits, a privately held company, along with the
trademark `Nutrine` and several other trademarks in addition to their
copyrights and designs.
In 2002, the company acquired Kwality biscuits. BIL acquired the trade
mark "KWALITY", the Chef Device and several other trademarks owned by
Kwality Biscuits of Bangalore for a consideration of Rs 30 crore. It also
agreed in principle to acquire 49% equity of Kwality Biscuits.
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BRITANNIA MARKETING
Promotions have been the chief propeller for growth for Britannia. Britannia has
gained the edge by creating an emotional surplus for the Britannia brand
through effective communication and providing products for different moments
of consumption. Another equally important move is exciting the consumer with
new products
Among the biggest promotions in 2001 was Britannia's glucose biscuit brand
Tiger's tie-up with the Hindi film blockbuster Lagaan. Biscuits market has
become the third largest category in terms of promotions - after toothpaste and
toiletries - in the last one year.The launch was supported with an advertising
campaign extending to print, POS (Point-of-Sale) materials and outdoor
branding.
Tiger had been positioned it as a biscuit that has to be taken as part of the chai
biscuit break. Chai Biskoot is an interesting extension, which will strengthen the
Tiger mother brand as the product is targeted at people across all income
groups. Tiger has successfully addressed themselves to the lower end of the
market.
Britannia's strategy has also been to drive margins from variants rather
than the mother brands. Britannia's strategy is to keep the price of its mother
brand at the lowest and launch variants at the higher price points and this has
worked for the company till date. Eg. Britannia has leveraged the equity of
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Glucose biscuit brands like Tiger to extend it to variants like coconut. Britannia
is clearly playing a volume game. It is driving volumes through the Tiger brand.
Another strategy has been to indulge in cross-promotions. In 2000,For
example, the company offered a Little Hearts biscuit packet (priced at Rs 3) free
with the purchase of a 300 gm pack of Tiger. This also helped in pushing trials
for the Little Hearts brand.
Britannia believes its all about how you define the market, or how you redefine
it for yourself. At Britannia they came up with a one-line vision for the
company 'Every third Indian must be a Britannia consumer by 2004.' Because
Britannia believes that packaged products can be bought by just about every
third Indian.
Strategically expanding the product line is what Britannia believes in. Just
selling biscuits was not good enough. Britannia listed all the products used in a
home, and the competitors in each space. They then asked themselves if they
could acquire the No. 1 or No. 2 position in that market. Dairy seemed to be a
good area for them to enter. There were mostly large cooperatives without too
many branded products in the space. Amul was the leading producer. So
Britannia chose cheese, and wanted to become No. 2. In three years, they
became No. 1 in processed cheese.
Britannia's success is largely due to the company's razor-sharp clarity of
purpose. No one competes with Britannias low-end brands in terms of price.
Britannia has created an emotional service with their brand, to give the
consumers more than they expect. Britannia says they don't make the best
biscuits in India. What they do provide, however, is consistency-the idea that
wherever you open a packet of Britannia products, you'll get the same thing.
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Britannia believes in being realistic and benchmarks itself with what the
consumer expects of them. The consumer in India today needs international
products at national prices. Britannia initially gets into an existing category and
then forays into different categories.
A brand built on a "low price-no frill" is what Britannia. Tiger provides a good
example of using this approach. After having achieved success at the lower end
of the market competing largely in the unorganised sector, the brand has
launched cream variants at (relatively) low price points.
Britannia has time and again exhibited its understanding of the Indian consumer.
This has been in the form of new launches, innovative marketing and
promotional schemes. In FY 2001, the company spent Rs 85 cr in advertising i.e
6.7% of net sales. Britannia has tied up with the makers of Lagaan. Britannia
has been associating itself with cricket and has achieved good results.
Brands need to stay relevant by stretching along with the customer and not
expect the consumer to stay with you, brands need to move on, be a part of the
consumers life and create an activated presence by getting the product
involved. The product has done just that.
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8,000 authorised Britannia Prize centres across the country. On scratching the
pad on the card, the prizes were revealed to the customer. The company's
previous world cup promotion campaign held in 1999 was considered one of the
largest consumer promotions ever, wherein redemptions alone were in excess of
Rs 1.6 crore. The 2003 year's `Britannia Khao, World Cup Jao' promotion
featured more than one crore prizes.
Britannia Industries in 2003 had an interesting promotional event called
Britannia Milkman Cheese - not just Toppings. The event was targeted at
housewives and others who love to experiment with cuisine.
A free booklet of recipes was offered and participants were also invited to taste
the dishes. A series of such events were held at ITC Grand Maratha Hotel
Mumbai, through February and will carry on into March.
Besides creating excitment around the brand, the event sought to increase
consumption of Britannia Milkman cheese by encouraging customers to use
cheese in new and versatile ways and be creative and innovative in their
cooking
It reinforces Britannia's core values of "Eat healthy, Think better"
A 'Kids for Tigers' campaign carried out jointly by Sanctuary Cub magazine and
Britannia Industries Ltd. saw one million Indian children signing a scroll to
protect their national animal.
On this occasion an educational scholarship was handed over by Mr.Sunil
Alagh, CEO Britannia Industries Ltd. to Mr. B. Mazumdar Chief Wildlife
Warden Maharashtra, for the children of those forest guards who have done
exemplary work towards the saving the tiger.
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Britannia's successful foray into the mass market for biscuits through `Tiger'
brand and into the dairy business gave volumes for Britannia when its
traditional businesses biscuits and bread showed signs of plateauing. With
low penetration of dairy products and snack foods, they offered significant
potential for growth. Therefore, unlike FMCG companies operating in markets
for mature products such as soaps or detergents, there appeared to be
considerable room for growth for Britannia.
In a bid to promote its popular biscuit brand 50-50 Maska Chaska, Britannia
Industries Ltd (BIL) has joined hands with Contests2win.com (C2W), a leading
customised contesting Website.
Britannia Industries Ltd announced a three-pronged strategy to maintain
volumes and market share and to improve sales.
Britannia plans to improve their sales through new product launches, renovation
and improving distribution. They will also focus on all-round cost savings and
improvement in productivity to ensure satisfactory growth in profits
Addressing shareholders at the companys annual general meeting, Mr Wadia
said the slowdown in the economy was expected to continue and as such
maintaining historical topline growth rates in the coming months would be
extremely challenging.
On the bakery business, he said the companys strategy was based on increasing
width of consumption through more penetrative distribution strategy and
introducing low price point packs.
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The strategy also aimed at maintaining brand leadership through continuous and
contemporary image building apart from increasing depth of consumption
through specific promos to cater to regional preferences.
BRITANNIA OUTLINES INITIATIVE TO TAP INNOVATIONS
In an effort to better utilise employee innovations for tapping market
opportunities, Britannia Industries Ltd (BIL) had deployed a new initiative
termed opportunity managers. The rationale behind the initiative, according to
the company, was to leverage out-of-the-box ideas of its professionals to drive
the business forward. It believes that the uniqueness of this practice lies in the
fact that these ideas which the professionals implement need to pro-actively
impact the business.
Any innovative concept that professionals want to implement was something
that needed to be implemented within a six- month timeframe. And the
deployment of the idea indicated a judicious use of the companys resources.
Further, according to the company, the initiative is not just meant to
institutionalise a culture of innovation in the organisation, but to empower
professionals to use their innovative acumen to usher in value for the
businesses.
Accordingly, any professional who has a distinct business idea needs to make a
presentation to the top management that also comprises the managing director.
Once the idea is considered feasible for implementation, then the individual
concerned is given complete control to deploy the idea and generate the
promised results for the organisation.
Further, the employee whose ideas have been approved is given total autonomy
to choose the appropriate mix of professionals across levels who need to be a
part of his or her team.
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Having pioneered a new concept, the professional then becomes the team leader
for the specific project right from the day it starts getting executed.
The audience for this initiative is mainly the talent that the company has
inducted from the management campuses. The younger breed of professionals
are not moulded into a defined mindset and hence Britannia believes that they
have the capability to explore a wider gamut of possibilities to come up with
ideas that can trigger growth for the businesses.
Once the said idea has been able to deliver profitable results for the business,
the employee is suitably rewarded with bonuses. This is an effort on Britannias
part to acknowledge the benefits that the individual has successfully leveraged
for the establishment.
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BRITANNIA ADVERTISING
Britannia made its mark in the general public with their first major TV
commercial for Glucose, which showed the then famous character Gabbar
Singh eating the biscuits with the byline- Gabbar ki asli pasand.
Britannia spent Rs. 29 crores in FY97 on advertising, up 39% from the previous
year, and 550% rise since FY91. None of their domestic competitors like Parry
or Bakemans can hope to match this, especially as they largely cater to regional
markets.
Britannia believes in high awareness through two components- one is media
awareness the other relates to point of consumption. The first one means large
advertising spends, and simple messages repeated umpteen times. Eat
Healthy. . Think Better also translated as Swasth Khao Tan Man Jagao
.Those are the key words. Britannia tries to get its message across in four-five
words.
Britannia kicked off its repositioning exercise in 1997 when it changed its
logo and corporate slogan as a first step in its makeover plans aimed at
transforming the company from essentially a 'bakery' business to a 'food'
business. Advertising played a crucial role in the repositioning. Key brands have
been re-packaged and re-launched, backed by very visible national advertising
campaigns.
To announce the new launch of a variant of Tiger- Chai Biskoot, the company
launched a high-voltage television campaign which included six ad films from
March 8 2002. For the first time, Britannia roped in six famous Bollywood
directors to produce these films. Earlier, the adfilms for a particular product was
produced by a single director. They used popular old Hindi film songs as the
back ground music for these commercials. With the tagline Chalo Chai
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extended to a further two factories in the next three years to support the firm's
growth plans.
Naware said ITC had planned an aggressive media campaign to drive the sales
of its biscuits.
As the two new players shape up their entry strategies and products, the existing
players are working harder to hold their ground.
It is a matter of concern that regional players such as Priyagold offer products at
retail prices that are almost half that of established players such as Britannia.
The product offerings from such regional players may not necessarily be
innovative on taste, but are priced very aggressively and do not compromise on
quality. Some of Britannia's products such as Marie, Good Day and Milk Bikis,
for example, have been the victims of this strategy, registering some decline in
market share in recent months. However Britannia is is launching five new
advertising campaigns. Two of these are for its MarieGold and Tiger brands.
Parle too is looking to launch new products as well as re-launch some of the
older brands. Also it's going to start advertising after a gap of almost a year.
Priyagold is not an isolated case. Several small and mid-sized players in the
FMCG sector have been able to shake up big competitors thanks to wellfocused, region-specific, price-sensitive strategies.
This trend is highlighted more in semi-urban and rural markets, known to
occupy a significant share of the overall Rs 3,000-crore domestic biscuit
market. In fact, close to 70 per cent of Priyagold's sales are accounted for by
semi-urban rural markets, and the skew is expected to continue in favour of
these markets.
On the other hand, intensified competition from regional players has led the
established Britannia and Parle to squeeze their profit margins, offer products at
various price points, introduce small pack sizes, and offer aggressive marketing
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promotions. And even as the battle royale continues between Britannia and
Parle on a national level, Surya Agro now claims market leadership in the nonglucose biscuit segment, which, according to industry estimates, accounts for 30
per cent of the overall biscuits market.
It is very difficult for any company to enter the domestic biscuits market. First,
consider the competition. Britannia and Parle are very aggressive nationally, in
the East Priya Biscuits is tough competition for any new player, while Duke is
strong in the South. Then, of course, there is Priyagold. Yet another player is
Bakeman's. The second reason is that margins have to be incurred at dealer,
distributor and stockist levels. Then there are other factors such as large
investments involved in manufacturing and brand building. It makes it easier for
any company wanting to enter this segment, therefore, to buy out an existing
brand.
Recent times have thrown up examples of several established FMCG players
going slow on biscuits. Kellogg's recently stopped active production of biscuits,
Dabur has ruled out an entry and Nestle SA sold off the assets of Excelsia
Foods.
The pressure to grow for these companies is high also because of competition
from low priced players like Priya Gold.
The biscuit battle will be fought in the low priced categories of Glucose and
Marie and biscuits.
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CONCLUSION
Britannia Industries Limited is also a major player in the ready to eat food
segment with leadership position in bakery category. The companys
plants are situated in Kolkata, Delhi, Chennai, Mumbai, Uttarakhand,
Orissa & Bihar with a capacity of 160,000 MT.The company has
transformed itself from being a primarily a biscuit company in 2008with
diversification efforts into other bakery products & dairy.
Britannia is mainly focusing on exporting its core products. They have
made inroads mainly in gulf and some European markets. They should
try to increase the exports as their partner is no 1 in biscuits it would help
them it could use them as their umbrella brand
Britannia was the pioneer in the sliced bread segment, yet the
contribution of bread in the total turnover is only 6% . Since the market
for packaged sliced bread exists, they should consider relaunching to
capture a larger share of this market.
Britannia is already into packaged beverages, now under their Joint
Venture with Fonterra. Since fruit juices are becoming a popular food
item at breakfast tables in Indian homes, as well as hotels. They also
offer an alternative to aerated drinks and they can be promoted on a
platform of Health with refreshment since Areated Drinks are not healthy.
Marketing Groupe Danone Products
Britannia can market some of the products of its parent company in India.
Thus it can expand its product line without having to invest much in Research
and Development.
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BIBLIOGRAPHY
www.britannia.co.in
www.wikipedia.com
www.businesstandard.com
www.just-food.com