A REPORT

ON

MARKET RESEARCH
ON
CONSUMER BEHAVIOR
FOR BISCUITS
AT TRANSIT CLUSTERS
BY:
Name: Devika Mathur
Enrollment No.:09BS0003081
Name of the Organization:
Britannia Industries Limited

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 A REPORT
ON
MARKET RESEARCH
ON
CONSUMER BEHAVIOR
FOR BISCUITS
AT TRANSIT CLUSTERS

By:
Devika Mathur
09BS0003081
Britannia Industries Limited

A report submitted in partial fulfillment of

the requirements of
MBA Program of
The ICFAI University, Dehradun

DISTRIBUTION LIST

Prof. Tapas Mahapatra Ms. Nimisha Jain

IBS-Gurgaon Area Sales Manager
Britannia Industries Ltd.

Date of submission –

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 AUTHORIZATION

I, Devika Mathur, here by state that, this project work entitled “Study
on Consumer Behavior for Biscuits at Transit Clusters” is an original
piece of work done and submitted by me towards partial fulfillment of
the requirement of MBA Program of ICFAI University, Dehradun. The
findings and conclusions expressed in this report are genuine and for
academic purpose only. It is my own and it has neither been submitted
nor published anywhere before, any resemblance to earlier project or
research work is purely coincidental. It is totally based on my hard work
and creativity.

Signature

Devika Mathur

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 ACKNOWLEDGEMENTS

A work is never a work of an individual.

“There is joy in work. There is no happiness except in the realization that we have
accomplished something” - Henry Ford

The making of any project requires contribution from many people, right from
inception till its completion. In my case also, there had been a few people who
have made this happen. It was not only learning but also an enriching experience.

I owe a sense of gratitude to the intelligence and co-operation of those people

without whom this project wouldn‟t have been as much a learning experience and
as successful. To those, who helped and supported me during the course of this
project and provided me with what I needed from time to time for completion of
this report.

My deepest sense of gratitude for the Faculty-in-Charge, Prof. Tapas Mahapatra,

IBS-Gurgaon, for constant guidance, professional help and support during the
course of the project, for .guiding me and helping me at all times during the
project.

I express my thanks to the Company Guide, Ms. Nimisha Jain, (Area Sales
Manager, Britannia Ind. Ltd.) for extending her support and guidance for this
project.

I also owe a word of thank to Mr. Sumant Sharma (Territory Sales Incharge,
Britannia ind.ltd.), Mr. R.P. Singh (Salesman, Keshav Enterprises), Mr. Monish
Sharma (Salesman, Keshav Enterprises) who constantly guided me in my field
work.
And last but not the least to all those retailers and consumers of biscuits who
guided and provided me with all the ground details which helped me towards the
completion of this report.

Devika Mathur

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 TABLE OF CONTENTS

1. AUTHORIZATION ......................................................................................................................... 3
2. ACKNOWLEDGEMENTS ............................................................................................................... 4
3. TABLE OF CONTENTS................................................................................................................... 5
4. ABSTRACT ................................................................................................................................... 6
5. COMPANY PROFILE ..................................................................................................................... 7
The Origin of 'Eat Healthy Think Better' ....................................................................................... 8
Britannia’s Portfolio .................................................................................................................... 9
6. FMCG INDUSTRY ....................................................................................................................... 10
7. BISCUIT INDUSTRY .................................................................................................................... 11
8. COMPETITORS .......................................................................................................................... 13
Parle ......................................................................................................................................... 14
Priyagold................................................................................................................................... 14
ITC – Sunfeast ........................................................................................................................... 14
9. INTRODUCTION ........................................................................................................................ 15
Objectives of Project: ................................................................................................................ 15
Consumer Buying Behaviour ..................................................................................................... 16
10. PURPOSE AND SCOPE OF THE PROJECT ..................................................................................... 17
11. LIMITATIONS OF THE STUDY ..................................................................................................... 18
12. METHODOLOGY ........................................................................................................................ 19
13. RETAIL MARKET SURVEY ........................................................................................................... 21
Statement of the Problem ......................................................................................................... 21
Survey Details ........................................................................................................................... 22
14. FINDINGS OF THE RETAIL MARKET SURVEY ............................................................................... 23
15. TRANSIT CLUSTER SURVEY ........................................................................................................ 29
16. QUESTIONNAIRE ....................................................................................................................... 30
17. ANALYSIS OF THE QUESTIONNAIRE ........................................................................................... 34
18. SWOT ANALYSIS – BRITANNIA ................................................................................................... 49
19. CONCLUSION AND RECOMMENDATIONS .................................................................................. 50
20. REFERENCES ............................................................................................................................. 51

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 ABSTRACT

The project provides a background and an overview of how tastes, health consciousness
and price sensitivity influences consumers‟ buying behaviors. It also attempts to identify
any commonalities and differences between consumers of various markets. And also
illustrates what impact these differences and commonalities have on sales of Britannia
biscuits when compared to its competitors and substitutes.

The project is targeted at understanding the buying pattern of consumers in transits.

Transit Clusters are small shops/stalls that cater to the consumers in transit. The major
influencers that help consumers in making the decision of “what to buy” are the centre of
this study.

Consumers behave differently in different situations. A consumer behaves differently

when buying biscuits in his weekly ration and when buying as a snack while travelling.

The in-depth study of the behavior of the consumers at these transit clusters and to find
out “what sells” at these points is the ultimate aim of my project at Britannia Ind. Ltd.

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 COMPANY PROFILE

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 Rs. 295. The company we all know
as Britannia today.

The beginnings might have been humble-the dreams were anything but. By 1910, with
the advent of electricity, Britannia mechanized its operations, and in 1921, it became the
first company east of the Suez Canal to use imported gas ovens. Britannia's 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.

As time moved on, the biscuit market continued to grow… and Britannia grew along with
it. In 1975, the Britannia Biscuit Company took over the distribution of biscuits from
Parry's who till now distributed Britannia biscuits in India. In the subsequent public issue
of 1978, Indian shareholding crossed 60%, firmly establishing the Indianness of the firm.
The following year, Britannia Biscuit Company was re-christened Britannia Industries
Limited (BIL). Four years later in 1983, it crossed the Rs. 100 crores revenue mark.

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 recognized for its innovative approach
to products and marketing: the Lagaan Match was voted India's most successful
promotional activity of the year 2001 while the delicious Britannia 50-50 Maska-Chaska
became India's most successful product launch. In 2002, Britannia's New Business
Division formed a joint venture with Fonterra, the world's second largest Dairy
Company, and Britannia New Zealand Foods Pvt. Ltd. was born.
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.

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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. The
company's offerings are spread across the spectrum with products ranging from the
healthy and economical Tiger biscuits to the more lifestyle-oriented Milkman Cheese.
Having succeeded in garnering the trust of almost one-third of India's one billion
populations 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 savour the
results, happily ever after.

The Origin of 'Eat Healthy Think Better'

Britannia -the 'biscuit' leader with a history-has withstood the tests of time. Part of the
reason for its success has been its ability to resonate with the changes in consumer needs-
needs that have varied significantly across its 100+ year epoch. With consumer
democracy reaching new levels, the one common thread to emerge in recent times has
been the shift in lifestyles and a corresponding awareness of health. People are
increasingly becoming conscious of dietary care and its correlation to wellness and
matching the new pace to their lives with improved nutritional and dietary habits. This
new awareness has seen consumers seeking foods that complement their lifestyles while
offering convenience, variety and economy, over and above health and nutrition.

Britannia saw the writing on the wall. Its "Swasth Khao Tan Man Jagao" (Eat Healthy,
Think Better) re-position directly addressed this new trend by promising the new
generation a healthy and nutritious alternative - that was also delightful and tasty.

Thus, the new logo was born, encapsulating the core essence of Britannia - healthy,
nutritious, and optimistic - and combining it with a delightful product range to offer
variety and choice to consumers.

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Britannia’s Portfolio

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 FMCG INDUSTRY

FMCG are products that have a quick shelf turnover, at relatively low cost and don't
require a lot of thought, time and financial investment to purchase.
„Fast Moving‟ is in opposition to consumer durables such as kitchen appliances that are
generally replaced less than once a year.
Three of the largest and best known examples of Fast Moving Consumer Goods
companies are Nestlé, Unilever and Procter & Gamble.
The Indian FMCG sector is an important contributor to the country's GDP. It is the fourth
largest sector in the economy and is responsible for 5% of the total factory employment
in India.
This has been due to liberalization, urbanization, increase in the disposable incomes and
altered lifestyle.
The lower-middle income group accounts for over 60% of the sector's sales. Rural
markets account for 56% of the total domestic FMCG demand.

Fast Moving Consumer Goods (FMCG) goods are popularly named as consumer
packaged goods. Items in this category include all consumables (other than
groceries/pulses) people buy at regular intervals. The most common in the list are toilet
soaps, detergents, shampoos, toothpaste, shaving products, shoe polish, packaged
foodstuff, and household accessories and extends to certain electronic goods. These items
are meant for daily of frequent consumption and have a high return. A major portion of
the monthly budget of each household is reserved for FMCG products. The volume of
money circulated in the economy against FMCG products is very high. Number of
products the consumer use is very high. Competition in the FMCG sector is very high
resulting in high pressure on margins.

FMCG companies maintain intense distribution network. Companies spend a large

portion of their budget on maintaining distribution networks. New entrants who wish to
bring their products in the national level need to invest huge sums of money on
promoting brands. Manufacturing can be outsourced. A recent phenomenon in the sector
was entry of multinationals and cheaper imports. Also the market is more pressurized
with presence of local players in rural areas and state brands.

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 BISCUIT INDUSTRY

Biscuit industry is the largest segment of the grain milling industry. India Biscuits
Industry is the largest among all the food industries and has a turn over of around
Rs.3000 crores. India is known to be the second largest manufacturer of biscuits, the first
being USA. It is classified under two sectors: organized and unorganized. According to
the Federation of Biscuit Manufactures of India (FBMI), the biscuit industry in India in
the organized sector produces around 60% of the total production, the balance 40% is
contributed by the unorganized bakeries.

The production by organized players is estimated to be 1561, 000 tonnes, for the year
2005, which means if we include the unorganized sector the total tonnage should be at
least 2,600,000. The industry consists of 3 large-scale manufacturers, around 50 medium
scale brands and 2500 small-scale units in the country. The unorganized sector is
estimated to have approximately 30,000 small & tiny bakeries across the country.

The major brands are - Britannia, Parle, ITC, Priyagold, Cremica, Dukes, Anmol, Priya,
etc besides various regional and state brands. Biscuit industry, which was reserved in the
small-scale industry sector, was unreserved in 1997-98, based on the recommendations of
the Abid Hussain Committee.

The annual production of biscuit in the organized sector continues to be predominantly in

the small and medium scale sector before and after de-reservation. Biscuit production
witnessed an annual growth of 10% to 12%, up to 1999-00.

Bread and biscuits are the major part of the bakery industry and covers around 80 percent
of the total bakery products in India. Biscuits stand at a higher value and production level
than bread. This belongs to the unorganized sector of the bakery Industry and covers over
70% of the total production.

India Biscuits Industry came into limelight and started gaining a sound status in the
bakery industry in the later part of 20th century when the urbanized society called for
ready made food products at a tenable cost. Biscuits were assumed as sick-man's diet in
earlier days. Now, it has become one of the most loved fast food products for every age
group. Biscuits are easy to carry, tasty to eat, cholesterol free and reasonable at cost.
States that have the larger intake of biscuits are Maharashtra, West Bengal, Andhra
Pradesh, Karnataka, and Uttar Pradesh. Maharashtra and West Bengal, the most
industrially developed states, hold the maximum amount of consumption of biscuits.
Even, the rural sector consumes around 55 percent of the biscuits in the bakery products.

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The total production of bakery products have risen from 5.19 lakh tonnes in 1975 to
18.95 lakh tonnes in 1990. Biscuits contributes to over 33 percent of the total production
of bakery and above 79 percent of the biscuits are manufactured by the small scale sector
of bakery industry comprising both factory and non-factory units.

The production capacity of wafer biscuits is 60 MT and the cost is Rs.56,78,400 with a
motive power of 25 K.W. Indian biscuit industry has occupied around 55-60 percent of
the entire bakery production. Few years back, large scale bakery manufacturers like
cadbury, nestle, and brooke bond tried to trade in the biscuit industry but couldn't hit the
market because of the local companies that produced only biscuits.

According to the biscuit manufacturers federation, the annual growth of overall biscuit
industry showed a decline of 3.5% in 2000-01, mainly due to 100 percent hike in central
excise duty (from 8 % to 16%). Production in the year 2001-02 increased very marginally
by 2.75%, whereas in 2002-03 the growth was around 3%.

The Federation of Biscuit Manufacturers of India (FBMI) has confirmed a bright future
of India Biscuits Industry. According to FBMI, a steady growth of 15 percent per annum
in the next 10 years will be achieved by the biscuit industry of India. Besides, the export
of biscuits will also surpass the target and hit the global market successfully.

Annual Production in
Biscuit Category
Percentage
Glucose 44%
Marie 13%
Cream 10%
Crackers 13%
Milk 12%
Others 8%

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 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.

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Parle
In 1929 a small company by the name of Parle products emerged in British dominated
India. The intent was to spread joy and cheer to children and adults alike, all over the
country with its sweets and candies. The company knew that it wouldn‟t be an easy task,
but they decided to take the brave step. A small factory was set up in the suburbs of
Mumbai, to manufacture sweets and toffees. A decade later it was upgraded to
manufacture biscuits as well. Since then, the Parle name has grown in all directions, won
international fame and has been sweetening people's lives all over India and abroad.
Apart from the factories in Mumbai and Bangalore, Parle also has factories in
Bahadurgarh in Haryana and Neemrana in Rajasthan, which are the largest biscuit and
confectionery plants in the country. Additionally, Parle Products also has 7
manufacturing units and 51 manufacturing units on contract.

Priyagold
Surya Food & Agro Ltd. was incorporated in November 1992 and commenced its
commercial operations of manufacturing & selling of biscuits under brand “Priyagold” in
October 1993. Over a period, they have established strong manufacturing capabilities and
have invested substantially in developing consumer preference for their products. Their
trademarks / brands “Haq Se Maango” & “Priyagold” have emerged as powerful brands
in the FMCG sector. They have three plants located in Greater Noida, Lucknow & Surat.
They also outsource some of our requirements to another plant located in Hyderabad.

ITC – Sunfeast
In July 2003, ITC forayed into the Biscuits market with the Sunfeast range of Glucose,
Marie and Cream Biscuits. Sunfeast‟s brand essence, "Spread the Smile" connotes
happiness, contentment, satisfaction and pleasure. The mascot Sunny reinforces the
emotional aspects of the brand. In a span of 6 years Sunfeast has launched many new
varieties and has its presence in almost all types of biscuit categories.

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 INTRODUCTION
Objectives of Project:
Analyze demand patterns and buying behavior at transit clusters.
An important part of the marketing process is to understand why a customer or
buyer makes a purchase. Without such an understanding, businesses find it hard to
respond to the customer‟s needs and wants. Marketing theory traditionally splits
analysis of buyer or customer behavior into two broad groups for analysis –
Consumer Buyers and Industrial Buyers

What brand, price, flavor, taste, etc. of biscuits sells most.

The study of consumers helps firms and organizations improve their marketing
strategies by understanding issues such as how
The psychology of how consumers think, feel, reason, and select between
different alternatives (e.g., brands, products).
The psychology of how the consumer is influenced by his or her environment
(e.g., culture, family, signs, media).
The behavior of consumers while shopping or making other marketing
decisions.
Limitations in consumer knowledge or information processing abilities
influence decisions and marketing outcome.
How consumer motivation and decision strategies differ between products that
differ in their level of importance or interest that they entail for the consumer.
How marketers can adapt and improve their marketing campaigns and
marketing strategies to more effectively reach the consumer.

Collecting primary data and analyzing the same.

Surveys collect data from a targeted group of people about their opinions,
behavior or knowledge. This was done to identify customer requirements or
preferences. Retailers are the people who deal with consumers on a day-to-day
basis. They know what their consumers want. They know how to satisfy their
customers‟ needs.
With the changing face of the market, consumer‟s needs are ever growing. Hence,
it is essential to be aware of the changing preferences of the consumers. The
retailers know their customers best and so they can provide with the most apt and
updated information regarding consumer tastes and preferences.

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 Recommendations to enhance sales at these transit points.
Based on my findings from the survey – with retailers, transit cluster shopkeepers
and the consumers of biscuits, I will be required to recommend Britannia what
kind of biscuits must it keep at those selling point for maximum consumer
satisfaction and to boost sales.
Britannia must excel in all aspects – quality, variety, pricing, promotion,
availability, taste and value for money.
Biscuits produced by Britannia are of unmatchable quality. Also the company has
a wide range of biscuits targeting all the classes, ages, etc. A biscuit by Britannia
is easily affordable by a common man. Also it has to reach the common man
through proper channels.
Demand patterns vary from place to place, consumer to consumer. Thus it is
important to be available to each and every consumer of the Britannia

Consumer Buying Behaviour

Understanding the buying behavior of the target market is the essential task of marketing
management under marketing concept. The consumer market consists of all the
individuals and households who buy or acquire good and services for personal
consumptions. The buying behavior tries to find out the answers for the questions, who
buys? How do they buy? Where do they buy? Do they buy?

FACTORS INFLUENCING CONSUMER BUYING BEHAVIOR

There are four major factors that influence the buying behavior such as cultural factors,
social factors, personal factors, and psychological factors.

BUYING DECISION PROCESS

It includes buying roles, types of buying and steps in buying process.

The study of the consumer preference not only focuses on how and why consumers make
buying decision, but also focuses on how and why consumers make choice of the goods
they buy and their evaluation of these goods after use. So for success of any company or
product promotion it is very necessary to depart its concentration towards consumer
preferences.

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 PURPOSE AND SCOPE OF THE PROJECT

The project attempts to understand the buyer decision making process, both individually
and in groups. It studies characteristics of individual consumers such as demographics,
and behavioral variables in an attempt to understand people's wants. It also tries to assess
influences on the consumer from groups such as family, friends, reference groups, and
society in general.

The project is restricted to the study of consumer behavior for biscuits only, produced by
Britannia and other biscuits manufacturing companies.

Some of the areas that are considered are:

1. Consumer recognition of a problem and the attempt to solve it by buying something.
2. How consumers search for things that they need?
3. How consumers evaluate the products that they buy?
4. What is the impact on dissatisfaction on consumer purchases?
5. How do consumers make purchase decisions?
6. What kinds of advertising is the most effective?

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 LIMITATIONS OF THE STUDY

My study involves collecting primary data and doing market research which can be of
enormous value to an organization in gaining and/or maintaining its competitive edge.
However, there are certain limitations are experienced by self.

1) BUDGETARY CONSTRAINTS
Gathering data requires a lot of commuting from place to place which sometimes means
commuting between far away, which can be very expensive.

2) TIME CONSTRAINTS
Primary market survey may offer excellent insights, but it can be extraordinarily time-
consuming. Time-consuming studies often produce results that are contradictory to the
current situation.

3) LINGUISTIC AND SEMANTIC CONSTRAINTS

There arises a barrier in communication as my data collection provides for interaction
with people from various background and beliefs. It must be made clear as to why data is
being collected and the consent of participants must be obtained. In addition to this, there
are a number of guidelines, laid down by such organizations as the Market Research
Society, that, although not legally binding, encourage organizations to behave ethically
when dealing with members of the public.

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 METHODOLOGY

1. PRIMARY DATA COLLECTION

Primary data collection is necessary when a researcher cannot find the data needed in
secondary sources. Some of the methods of primary data collection are –

OBSERVATION

Field experiment
This method is generally used when the respondents are reluctant to part with the
information due to various reasons. Here, the information is collected h m a
witness or from a third party who are directly or indirectly related to the problem
and possess sufficient knowledge.
Advantage – minimizes response bias
Disadvantage – limited to measuring behavior, time consuming

COMMUNICATION

a) Personal Interaction
Here the investigator collects information personally from the respondents.
Investigator meets them personally to collect information.
Advantage – permits detailed and in-depth questions and responses, minimizes
non-response
Disadvantage – costly, interviewer bias, investigator bias,
b) Self-administered Questionnaires
It is the most important and systematic method of collecting primary data,
especially when the inquiry is quite extensive. It involves preparation of a list
of questions relevant to the inquiry.
Advantage – cost effective for large areas, minimizes interviewer bias,
promotes accurate answers
Disadvantage – low response rates, unanswered questions, incorrect answers

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2. DATA REPRESENTATION
Once the data is collected through primary data collection methods, it is presented in
the form of Reports, Graphs, Charts, and Pie Diagrams.

3. DATA ANALYSIS
The gathered data is being analyzed using various mathematical and statistical tools.

Goal of an analysis:
To explain cause-and-effect phenomena
To relate research with real-world event
To predict/forecast the real-world phenomena based on research
Finding answers to a particular problem
Making conclusions about real-world event based on the problem

Data analysis is a process, within which several phases can be distinguished:

Data cleaning
Initial data analysis (assessment of data quality)
Main data analysis (answer the original research question)
Final data analysis (necessary additional analyses and report)

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 RETAIL MARKET SURVEY

I was associated with Keshav Enterprises, Vasant kunj, a distributor of Britannia biscuits,
for a week and a half. I travelled with the salespersons of the distributor to various
markets to study the consumer behavior.

I approached my survey by asking the retailers‟ perception to the consumer behavior for
biscuits, particularly Britannia.

The opinion of the retailers is of utmost importance since they directly deal with the
tastes and preferences of the consumers. Thus they could share the insights to the biscuit
market.

Statement of the Problem

To find the preference of the consumer for a biscuit based on the following points:
1. Taste
Sweet v/s Salted

2. Value Trade-off
Price v/s Quality

3. Sales Influencers
Effect of Advertisements and Sales promotion schemes

4. What sells Most

Brand v/s Product

5. Competition and market share for Britannia

Local and other Major Players in the Market
Percentage of total market captured by Britannia

6. Health consciousness
Biscuits like Digestive, 5-Grain, etc., which include healthy ingredients

7. Price of biscuits
Psychological effect of the pricing

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8. Substitutes Available
Other ready to eat snacks

9. Types of Customers
Nature of the customer

Survey Details

No. of Shops
Market Surveyed Type of Customers
Visited

South Motibagh Main Mkt Residents 12

Opposite Venkateshwar Clg

Students, Residents 25
And Motibagh

School Kids,
Chattarpur 21
Low income households

Masoodpur Low income households 9

Vasant Vihar High income households 11

Low income households, small offices

Mohammadpur 20
and laborers

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 FINDINGS OF THE RETAIL MARKET
SURVEY
1. Taste Preference

One of the parameters used to find out the behavior of consumers was Taste.
This was understood by asking the shopkeepers the contribution of sweet and salted
biscuits in the total sales for biscuits.

In this it was observed that people were more inclined towards biscuits that were
sweet in taste.

Only 4% of the shops surveyed experienced higher sales for salted biscuits.
10% shops experienced an equal amount of sales for salted and sweet biscuits.
And about 86% shopkeepers said that sweet biscuits were liked more by their
customers.

Sweet 84
Salt 4
Equal 10

No. of Outlets

4 10
Sweet

Salt
84

Equal

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 2. Value Trade-Off

Every market comprises of customers having a certain type of judging criteria, one
such criterion for preferring a specific biscuit is the trade off between price and
quality, i.e., price sensitivity.

The markets that I visited had customers driven by quality and were majorly
indifferent to the price at which the products are offered.

The rising quality consciousness among the middle and high income groups has
made the quality and nutrition value of the product of utmost importance for the
producers.
The focus of Britannia on adhering to strict quality standards has made it the most
popular brand for biscuits and cakes in the market.

3. Sales influencers

Advertisements act as the major sales influencer for biscuits and cakes. The youth
and children are attracted by the celebrity appeal created through brand
endorsements by various youth icons, as they can connect to them and aspire to be
them.
For example, Sachin Tendulkar, Rahul Dravid and many more players of the Inidan
cricket team endorsing for Britannia.
Families are majorly influenced by various schemes introduced for sales
promotion, (example, family packs and discount offers) which prove to be
economical and cost savers.

Other major factors which act as sales influencers are Age and Income of the
customers.
Ironically, high income groups who buy super-saver family packs end up saving
money on the total transaction. Whereas low income groups buying small packs
pay more for the same quantity.

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 4. What sells most?

People go for the Brand but develop a loyalty towards the product.
This is evident from the very fact that Britannia‟s GoodDay enjoys a huge market in
cookies segment but Britannia‟s Tiger is overshadowed by Parle‟s Parle-G in
glucose biscuit segment.

Biscuits with highest market share:-

GoodDay (all types)

Marie
Parle-G
Digestive
Bourbon
5-Grain
Monaco

Flavours with major market share:-

Butter
Cream
Glucose
Chocolate
Orange

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 5. Competition and market share for Britannia

Britannia enjoys the largest market share in cakes and biscuits, capturing
approximately 70% of the market. Other players of the industry are

Parle
ITC Sunfeast
Priyagold
Anmol
Bikaner
Other local brands

Market Share
80%

70%

60%

50%

40%

30%

20%

10%

0%
Britannia Parle Sunfeast Others

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 6. Health Consciousness

One of the major factors which affect the buying behavior is Age.

As a person grows in Age his inclination towards a healthier product increases. He

prefers a healthier lifestyle; the same is represented in people‟s choice of biscuits.

Age Group Most Popular Biscuits

3-15 years Jim-Jam, Treat, Milk Bikis, Cream biscuits etc.

16-25 years Cakes, Little Hearts, Bourbon, GoodDay (chocochip/ choconut) etc.

25-45 years GoodDay, TimePass, 50-50, Cakes, Bourbon, PureMagic etc.

Above 45 years Digestive, Marie, NutriChoice, 5-Grain etc.

During my survey I found that there is a growth in health consciousness among people
reflected in their choice of biscuits. People were more driven by conscious about their
health than by flavor or brand.

My Findings
45
40
35
30
25
20
15
10
5
0
Health Consciousness Flavor Brand

P a g e | 27
 7. Price of the Biscuit

Prices play an important role in making the customer choose a particular biscuit,
major effect being the one of psychological pricing i.e., the round up prices.

As per the findings of the study, people are more willing to buy packs priced in
multiples of five, more so because of tender of change.

The tendency of the shopkeeper to give some other item (like gum or toffees) rather
than change makes the customer go for round up prices.

8. Substitutes Available.

Other various substitutes available to the customers are:

Chocolates
Chips
Home made sweets and snacks
Namkeen.

Thus Britannia faces competition not only with the various brands available in its
segment but also with all the products which act as substitutes of the biscuits.

9. Nature of the customer

People belonging to different backgrounds display different buying patterns in terms

of price range.

Nature of Customers Price Range

Students Rs. 10/- to Rs. 15/-
Residents of Societies Rs. 15/- and above
Labourers Re. 1/- to Rs. 5/-
Low Income households Re. 1/- to Rs. 20/-
Office Cafeterias Rs. 5/- to Rs. 15/-

P a g e | 28
 TRANSIT CLUSTER SURVEY
Transit clusters are points of selling which target the people in transit. It is the tendency
of the consumer to pick up a pack of biscuit while traveling for munching on their way.
People buy biscuits because they are easy to eat while traveling; they are hygienic and are
tasty.

It was observed that people on their way to offices sometimes buy a pack of biscuits as
their breakfast. A small pack of biscuit is sufficient to provide them the first meal of the
day.

Also while taking a break from work, or other purposes, people halt for a tea or coffee.
They often buy a small pack of biscuit to munch along with their beverage.

Biscuits provide nutritional value and also taste good. Therefore, parents do not hesitate
in buying a pack of biscuit for their children instead of a chocolate which is bad for
health.

This was a two step survey:

Direct interaction with shopkeepers of transit stalls.

Opinion of the transit cluster shopkeepers on influence of taste, health
consciousness, price, etc. on consumer buying behavior was the basis of designing
of the questionnaires for the end consumers of biscuits.

Survey through a questionnaire filled by consumers.

On the basis of the crucial parameters pointed out by the retailers, a questionnaire
was designed for the consumers.

P a g e | 29
 QUESTIONNAIRE
Name: ________________________________________________________
Occupation: ____________________________________________________
Place: _________________________________________________________

1. What Age group do you belong

Below 15
15-25
26 – 40
Above 40

2. Your monthly income lies in

Unemployed
Below 5000
5000-15000
15001-25000
25001 – 40000
Above 40000

3. Name 3 brands of biscuits that come to your mind.

4. Name 3 biscuits that come to your mind.

5. How much time do you spend waiting/in transit in a day?

P a g e | 30
6. What brand of biscuits do you like?
Britannia
Parle
Sunfeast
Priyagold
Bikaner
Others _________________________________________________

7. Which kind of biscuit do you prefer?

Sweet
Salty
Sweet and salty
Glucose
Cream – filled
Digestive
Cookies
Flavored
o Chocolate
o Orange, pineapple etc
o Elaichi
o Coconut
o Cashew, walnut etc.
o Butter
Others

8. Where do you buy biscuits from?

General stores
Kirana stores
Discount stores (big bazaar, subhiksha, sabka bazaar etc.)
Transit clusters (paan shops, tea shops etc.)
Other

P a g e | 31
9. How frequently do you buy biscuits?
Monthly
Fortnightly
Weekly
More than once a week
Daily
More than once a day

10. What price range of biscuits do you buy?

Re. 1 to Rs. 5
Rs. 6 to Rs 10
Rs. 11 to Rs. 15
Rs. 16 and above

11. On an average, how much do you spend on biscuits monthly?

<Rs. 10
Rs. 10 – Rs.30
Rs. 30 – Rs.50
Rs. 50 – Rs.70
Rs. 70 – Rs. 100
Rs. 100 and above

12. How do you come to know about a new biscuit in the market?
Commercial Advertisements
Newspaper/ Magazines
Word of mouth
Billboards/ hoardings
Other

P a g e | 32
13. How do you decide which biscuit to buy?
Price
Flavor
Brand
Number of biscuits in a pack
Sales promotion schemes (discount coupons etc.)
Availability
Other

14. How do you rate Britannia biscuits on the following (please tick) –

Excellent Good Average Poor

Quality
Variety
Pricing
Advertisements
Availability
Taste
Value for money

P a g e | 33
 ANALYSIS OF THE QUESTIONNAIRE

The questionnaire was designed in a way that it will be analysed on the following
parameters:

1. Age as a factor of consumer buying behavior

2. Income as a factor of consumer buying behavior
3. Brand image
4. Positioning of the biscuits in the consumer‟s mind
5. Transit/waiting time
6. Brand preferences
7. Flavor preferences
8. Place
9. Frequency
10. Size of the biscuit – product that sells most
11. Expenditure on biscuits – money spent from income
12. Knowledge of a new biscuit- promotion strategies
13. Buying decision
14. Britannia – as a brand for consumers

1. Age as a parameter of consumer buying behavior

The distribution of the age groups of respondents under study is:

Responses

below 15
above 40
20%
25%

15-25
26-40 27%
28%

P a g e | 34
 2. Income as a factor of consumer buying behavior

The distribution of monthly income was

Monthly Income (in Thousands)

above
40
26-40
7%
6% nil
17%

below 5
16-25 13%
29%

5-15
28%

P a g e | 35
 3. Brand image
Britannia and Parle are the most popular brands in this age group.

70

60

50
Number of Respondents

40

30

20

10

Britannia Parle Sunfeast Priyagold Others

Brands in Consumers mind

P a g e | 36
 4. Positioning of the biscuits in the consumer‟s mind
To study what biscuits are most liked by the consumers.

90

80

70
Number of Respondents

60

50

40

30

20

10

0
Monaco Goodday Parle-G Hide n 50-50 Marie Bourbon Tiger
Seek
Biscuits in Consumer's Mind

5. Transit/waiting time
There was a wide range of transit/waiting time.
People with different purposes had different waiting times.

It ranges from 15 mins to 8-9 hours.

People going on long journeys had more than a day as their traveling time.

P a g e | 37
 6. Brand preferences

others
5%

Priyagold
12%
Britannia
31%

Sunfeast
24%

Parle
28%

P a g e | 38
 7. Flavor preferences

Flavor Preferences
25

20

15

10

Sweet Salty Sweet-Salty Glucose Cream Flavored

filled

Flavored

Butter Chocolate
29% 26%

Orange
10%
Elaichi
Cashew 7%
28%

P a g e | 39
 8. Place

Purchase Points
16

14

12

10

0
General Store Kirana Stores Discount Transit Others
Stores clusters

Other purchase points include Army Canteens.

P a g e | 40
 9. Frequency

The frequency with which a consumer buys a pack of biscuit.

Purchase Frequency

More than
once a day Monthly
16% 16%

Fortnightly
11%

Daily
34% Weekly
14%
More
than
once a
week
9%

P a g e | 41
 10. Size of the biscuit – price that sells most

What price of biscuit sells the most in the selling points.

Above Rs. 15
20%
Re. 1 to Rs. 5
33%

Rs. 11 to Rs.
15 Rs. 6 to Rs
34% 10
13%

P a g e | 42
 11. Knowledge of a new biscuit- promotion strategies

How do consumers come to know about a new product in the

market is answered by the following chart.

120

100

80

60

40

20

0
Advertisement Newspaper Word of Mouth Billboards

P a g e | 43
 12. Buying decision

A consumer makes the decision whether to buy a biscuit on the

following parameters.

100

90

80

70

60

50

40

30

20

10

0
Price Flavor Brand Number of Schemes Availability
Biscuits and prizes

P a g e | 44
 13. Britannia – as a brand for consumers

Quality

Number of Respondents

80

20
0 0
Excellent Good Average Poor

Quality

Variety

Number of Respondents
75

15
5
0
Excellent Good Average Poor

Variety

P a g e | 45
 Pricing

Number of Respondents
60

28

10
0
Excellent Good Average Poor

Pricing

Advertisements

Number of Respondents
70

15
10
5

Excellent Good Average Poor

Ads

P a g e | 46
 Availability

Number of Respondents
90

8 2 0
Excellent Good Average Poor

Availability

Taste

Number of Respondents
88

10
2 0
Excellent Good Average Poor

Taste

P a g e | 47
 Value for money

Number of Respondents
88

5 7
0
Excellent Good Average Poor

Value for money

P a g e | 48
 SWOT ANALYSIS – BRITANNIA

• Established brand name.

• Widespread Distribution
Network.
• Wide Range products • High overhead costs
covering all segments. • Competition from
• Focus on rural markets. Parle, Sunfeast, Priya
• Superior technology like SAP. Gold.
• World-class factories.
• Research and Development
department.

Strengths Weakness

Opportunities Threats

• Rural markets.
• Cost saving from lowering of • Unorganized bakeries.
excise duty on bakery • Rising input costs.
products. • ITC entry in biscuits.
• Price hike competitors' • Priya Gold and Anmol
brands lower price offerings.

P a g e | 49
CONCLUSION AND RECOMMENDATIONS

Britannia has maintained its market share through its variety of biscuits. This variety
helps Britannia target every segment of the society. The demand pattern at transit clusters
is different from the retail market since the consumer at both the points of selling are of
different natures.

At transit clusters, Britannia does well with biscuits of smaller packs. Packs between the
price-range of Re.1 to Rs.5 perform very well. Also, GoodDay priced Rs.13 is quite
popular.

Chocolate flavored, glucose and cream filled biscuits sell fast at transit clusters where the
consumers are mostly children who are not that brand conscious. Hence, to attract
children, Britannia can come up promotion schemes to boost sales.

Britannia is undoubtedly the market leader in the biscuits segment. But there are areas on
which it can improve upon.

My recommendations to Britannia would be –

• Britannia must reach to the Transit Clusters through its proper chain of
distributors.
It is easier to track the retail market.
But reaching each and every transit cluster becomes a tedious job, since they are
present in every nook and corner of the city.
While doing my survey I found that many shopkeepers faced the problem of not being
able to place the order for Britannia biscuits since no salespersons visited their shops.
Hence they did not keep Britannia biscuits.

• Round up prices.
Prices play an important role in making the customer choose a particular biscuit,
major effect being the one of psychological pricing i.e., the round up prices.
As per the findings of the study, people are more willing to buy packs priced in
multiples of five, more so because of tender of change.
The tendency of the shopkeeper to give some other item (like gum or toffees) rather
than change makes the customer go for round up prices.
People are hesitant in buying packs which are not priced in multiples of Rs.5.

P a g e | 50
 REFERENCES

BOOKS:
Marketing Management by Philip Kotler
Marketing Management, ICMR

NEWS PAPERS:
The Economic Times

MAGAZINES:
Business India
India Today
4P‟s Business and Marketing
Marketing Mastermind
Advertising Express

INTERNET WEBSITES:
www.britannia.co.in
www.google.com
www.parleproducts.com
www.priyagold.com

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