Fast Moving Consumer Goods (FMCG)

Products which have a quick turnover, and relatively low cost are known as Fast Moving Consumer Goods (FMCG). FMCG products are those that get replaced within a year. Examples of FMCG generally include a wide range of frequently purchased consumer products such as toiletries, soap, cosmetics, tooth cleaning products, shaving products and detergents, as well as other non-durables such as glassware, bulbs, batteries, paper products, and plastic goods. FMCG may also include pharmaceuticals, consumer electronics, packaged food products, soft drinks, tissue paper, and chocolate bars. Subsets of FMCGs are Fast Moving Consumer Electronics which include innovative electronic products such as mobile phones, MP3 players, digital cameras, GPS Systems and Laptops. These are replaced more frequently than other electronic products. White goods in FMCG refer to household electronic items such as Refrigerators, T.Vs, Music Systems, etc. In 2005, the Rs. 48,000-crore FMCG segment was one of the fast growing industries in India. According to the AC Nielsen India study, the industry grew 5.3% in value between 2004 and 2005. The Indian FMCG sector is the fourth largest in the economy and has a market size of US$13.1 billion. Well-established distribution networks, as well as intense competition between the organized and unorganized segments are the characteristics of this sector. FMCG in India has a strong and competitive MNC presence across the entire value chain. It has been predicted that the FMCG market will reach to US$ 33.4 billion in 2015 from US $ billion 11.6 in 2003. The middle class and the rural segments of the Indian population are the most promising market for FMCG, and give brand makers the opportunity to convert them to branded products. Most of the product categories like jams, toothpaste, skin care, shampoos, etc, in India,

have low per capita consumption as well as low penetration level, but the potential for growth is huge. The Indian Economy is surging ahead by leaps and bounds, keeping pace with rapid urbanization, increased literacy levels, and rising per capita income. The big firms are growing bigger and small-time companies are catching up as well. According to the study conducted by AC Nielsen, 62 of the top 100 brands are owned by MNCs, and the balance by Indian companies. Fifteen companies own these 62 brands, and 27 of these are owned by Hindustan Lever. Pepsi is at number three followed by Thumps Up. Britannia takes the fifth place, followed by Colgate (6), Nirma (7), Coca-Cola (8) and Parle (9). These are figures the soft drink and cigarette companies have always shied away from revealing. Personal care, cigarettes, and soft drinks are the three biggest categories in FMCG. Between them, they account for 35 of the top 100 brands.

OUTLOOK There is a huge growth potential for all the FMCG companies as the per capita consumption of almost all products in the country is amongst the lowest in the world. Again the demand or prospect could be increased further if these companies can change the consumer's mindset and offer new generation products. Earlier, Indian consumers were using nonbranded apparel, but today, clothes of different brands are available and the same consumers are willing to pay more for branded quality clothes. It's the quality, promotion and innovation of products, which can drive many sectors.

History
Sweet or salty. Soft or crunchy. Simple or exotic. Everybody loves munching on biscuits, but do they know how biscuits began? The history of biscuits can be traced back to a recipe created by the Roman chef Apicius, in which "a thick paste of fine wheat flour was boiled and spread out on a plate. When it had dried and hardened it was cut up and then fried until crisp, then served with honey and pepper." The word 'Biscuit' is derived from the Latin words 'Bis' (meaning 'twice') and 'Coctus' (meaning cooked or baked). The word 'Biscotti' is also the generic term for cookies in Italian. Back then, biscuits were unleavened, hard and thin wafers which, because of their low water content, were ideal food to store. As people started to explore the globe, biscuits became the ideal travelling food since they stayed fresh for long periods. The seafaring age, thus, witnessed the boom of biscuits when these were sealed in airtight containers to last for months at a time. Hard track biscuits (earliest version

of the biscotti and present-day crackers) were part of the staple diet of English and American sailors for many centuries. In fact, the countries which led this seafaring charge, such as those in Western Europe, are the ones where biscuits are most popular even today. Biscotti is said to have been a favorite of Christopher Columbus who discovered America! Making good biscuits is quite an art, and history bears testimony to that. During the 17th and 18th Centuries in Europe, baking was a carefully controlled profession, managed through a series of 'guilds' or professional associations. To become a baker, one had to complete years of apprenticeship - working through the ranks of apprentice, journeyman, and finally master baker. Not only this, the amount and quality of biscuits baked were also carefully monitored. The English, Scotch and Dutch immigrants originally brought the first cookies to the United States and they were called teacakes. They were often flavored with nothing more than the finest butter, sometimes with the addition of a few drops of rose water. Cookies in America were also called by such names as "jumbles", "plunkets" and "cry babies". As technology improved during the Industrial Revolution in the 19th century, the price of sugar and flour dropped. Chemical leavening agents, such as baking soda, became available and a profusion of cookie recipes occurred. This led to the development of manufactured cookies. Interestingly, as time has passed and despite more varieties becoming available, the essential ingredients of biscuits haven't changed - like 'soft' wheat flour (which contains less protein than the flour used to bake bread) sugar, and fats, such as butter and oil. Today, though they are known by different names the world over, people agree on one thing - nothing beats the biscuit! Some interesting facts on the origin of other forms of biscuits: The recipe for oval shaped cookies (that are also known as boudoir biscuits,

sponge biscuits, sponge fingers, Naples biscuits and Savoy biscuits) has changed little in 900 years and dates back to the house of Savoy in the 11th century France. Peter the Great of Russia seems to have enjoyed an ovalshaped cookie called "lady fingers" when visiting Louis XV of France. The macaroon - a small round cookie with crisp crust and a soft interior seems to have originated in an Italian monastery in 1792 during the French Revolution. SPRING-uhr-lee, have been traditional Christmas cookies in Austria and Bavaria for centuries. They are made from a simple egg, flour and sugar dough and are usually rectangular in shape. These cookies are made with a leavening agent called ammonium carbonate and baking ammonia. The inspiration for fortune cookies dates back to the 12th and 13th Centuries, when Chinese soldiers slipped rice paper messages into moon cakes to help co-ordinate their defence against Mongolian invaders.

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 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. 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 population and a strong management at the helm means Britannia will continue to dream big on its path of innovation and quality. PRODUCTS Tiger Banana Britannia is committed to help secure every child's right to Growth & Development through good food everyday. Purposefully taking forward the credo of 'Eat Healthy, Think Better ', we have launched a new variant under our power brand TIGER - TIGER BANANA - power packed with IRON ZOR & and with the delightful taste of banana. IRON ZOR helps make mind sharper and body stronger. A Rs.4 pack has as much IRON ZOR as that in 1 kg of Banana. R&D in Britannia has spent considerable time to develop this nutritious and delightful snack for children. Britannia Tiger Banana packed with IRON ZOR and goodness of Banana

is accessible to all, being available in convenient packs priced at Rs.2, Rs.4 and Rs.10. NutriChoice SugarOut Sounds like yesterday when people commented that healthy foods meant "compromising on the taste." NutriChoice SugarOut is the most novel product range to have been introduced in the market. The product is not just sweet but tastes great, and yet contains no added sugar. This is because NutriChoice SugarOut is sweetened with "Sucralose," derived from sugar, which provides the same sweetness as any other biscuit, without the added calories of sugar.

This range is available in 3 delicious variants namely Litetime, Chocolate cream, and Orange cream, targeted towards all health sensitive people. It is also relevant for consumers with sugar related ailments. We are sure that you will be pleasantly delighted with its great taste and equally surprised to know that it has no added sugar. Don't be taken for a ride when you read "Sugar Free" label on many biscuit packs marketed in India or abroad. Even with 100% no-added sugar, wheatcereals in biscuits have their own natural sugar content. Britannia has chosen to represent these biscuits with "No Added Sugar" claim, as there is no added sugar in the processing of NutriChoice SugarOut. Britannia 50-50 Pepper Chakkar The launch of the latest 50-50 variant left everybody guessing "What it eez?" From TV ads, radio, outdoor and in-store display materials to events, a website and SMS and email blasts, traditional and new media were blended synergistically to create excitement and curiosity about the unique

taste of the biscuit. The tangy and distinctive pepper flavoured biscuit, that's thin and crispy and more like a snack, caught the imagination of a younger audience craving something to nibble on. The 50-50 Pepper Chakkar launch is truly a case of leveraging the marketing mix to best advantage.

NutriChoice Digestive Biscuit Nothing can be more difficult than making small efforts in our daily life towards healthy and active living. 24/7 we are engrossed in our busy schedules; skipping meals, missing walks, along with inadequate sleep and frequently eating-out, all take a heavy toll on our health. At least with the new and improved NutriChoice Digestive Biscuit, we have one less thing to worry about. Made with 50% whole-wheat and packed with added fibre (10% of our daily dietary needs), these delightfully tasty biscuits are amongst your healthiest bites of the day. In your next visit to a shop just look out for its Golden-green international carton pack. Try one and you'll know that you've made one smart choice - NutriChoice. Treat Fruit Rollz

All kids who have relished the yummy creamy treasures of Britannia Treat in exciting flavors, have yet another reason to celebrate! Britannia Treat launches the amazingly yummy Treat Fruit Rollz!! These tasty soft rolls are filled with real fruits and provide a healthy yet mouth-watering treat to the kids. Fruit Rollz comes in four masti fruit flavours - Juicy Apple, Strawberry Surprise, Tangy Orange and Delicious Dates! Want to know a little secret? They make the best tiffin treats! So during snack time what better than to munch on the delicious and healthy Fruit Rollz and discover the yummy fruit flavor from within the shells. Keeping up with Britannia's platform of 'taste bhi, health bhi', Fruit Rollz is indeed a yummy snacking option for kids, while keeping the Moms assured about the goodness provided by the fruit filling. So go on and treat yourself to the lip-smacking snack! New Britannia Milk Bikis

Milk Bikis, the favourite growth partner of Kids, now brings greater value and delight to all with its new product and pack design. Recently re-launched in its existing Southern & Eastern markets, and extended across India, the new Milk Bikis is all set to add excitement and appeal to nutritious food. Whoever said that good food needs to look dull and boring, will just have to take a look at Milk Bikis.

With a unique and attractive honeycomb design and an enhanced product experience, the new biscuit prompts the Kids will love it reaction amongst mothers. The milk goodness in the recipe is now enhanced with SMART NUTRIENTS 4 vital vitamins, iron and iodine, proven to aid mental and physical development in growing kids. The premium packaging, besides appealing to kids, also ensures that the biscuits remain fresh and crisp. So, whether its breakfast time or snack time at school, rest assured that kids will look forward to munching these crunchy, milky biscuits which even helps in their development. And yes, adults wont be far behind in reaching out for a pack

THE INDUSTRY Biscuits derive its name from a French word meaning twice backed bread; Biscuits in general have a good shelf life, which is higher than all other snack items available in the market. India is the second largest producer of biscuits in the world after the U.S.A. but still the per capita consumption is only 2.3 kg/year of developed countries. As per the latest survey done by N.C.A.E.R., 49 biscuits are consumed in rural areas. The penetration of biscuits into households stands at an average of 83.2% with the rural penetration at 77% and urban penetration at 88%. Biscuits are reserved for the small scale sector but there are strong possibilities of the industry being deserved in line with the government policy of liberalization. The net effect thus would be greater choice for the consumer as well as a check on the costs. The country production of the biscuits during 2004-05 was 18.6 Lac tons of which 1/2 were manufactured by the organized sector. The industry turn over was 5322.7 Crores of which organized sector contributed 2519.3 crores. Britannia, makers of Britannia biscuits, doubled capacity from 25 tonnes a day to 50 tonnes and plans to be a national brand soon. In an aggressive mode, the North dominated biscuit player has increased its ad budget to Rs. 5 crore this year from Rs. 3 crore last year. Britannia has also recently invested about Rs. 5 crore in the modernization and expansion of its production and packing its production capacity of 40 tonnes per day to 100 tonnes per day by next year. The aim: to take the current turnover of Rs. 50 crore to Rs. 100 crore by the year. The low priced brand claims to have a 15 per cent market share in the North and is aggressively eyeing a bigger bite of the Rs. 2,500 crore biscuit industry. The brand plans to gain a 40 per cent market share in the North by the year of. The company's strategy has been to attract new consumer segments and widen its consumer base with its well packaged low priced offerings. Britannia's success has also come from its formidable.

It gives me great pleasure to introduce the Summer Training Report. It is based on the survey conducted in East Delhi region on Biscuit industry. The applicability of various branding strategies play crucial role in marketing in product. the applicability has grown due to the liberalization, competition and technological changes taking place in corporate world. In this project the various branding strategies adopted by the company has been studied and compared on the basis of current market scenario. It gives the idea about the market share enjoyed by the different companies in the Biscuit Industry. It provides the adequate coverage of many issues related to biscuit industry. The objective of this report is to give the market share of Britannia biscuits in the Indian capital (New Delhi). It has been made possible by knowing the consumer's behaviour and by studying the patterns adopted by the retailers. It gives us very precise view about the existing demand of Britannia biscuits and demand of their products as compared to other competitors. It also highlights the changing market trends and consumer preferences, why they have shifted from finally pack to pouch pack. The annual growth rate of the industry is about 12.5%. However, the growth of cream biscuits, assorted or special variety is the range of 30-40%. The organized sector consists of large, medium and small scale biscuit manufacturers who produce packed biscuits. The major players in this sector are Britannia, Bakemans, and Parle, etc. the unorganized sector comprises of small bakery units, cottage and household type manufacturing plants. These units distribute their biscuits in the surrounding vicinity of their manufacturing locations of say 20-50 kms. The country production of biscuits during 2005-06 is estimated to be about 19.5 lack tons. Out of which 1/2 again is expected from unorganized sector.

SWOT ANALYSIS - BRITANNIA Strengths:

 Low operational costs Presence of established distribution networks in both urban and rural areas Presence of well-known brands in FMCG sector Fulfills one of our Basic Requirement among Air ,Water , Food, Shelter Widely accepted in all Generations Easily available in various forms Provide good Instant Remedy for hunger in the form of readymade food Preserves the non seasonal food and makes it available all throughout the year Britannia is the 2nd most trusted brand Excellent supply of products whenever required Established brand name. Wide Range products covering all segments. Superior technologies e.g. SAP. World-class factories. Research and Development department.

WEAKNESSES: Lower scope of investing in technology and achieving economies of scale, especially in small sectors Low exports levels "Me-too products, which illegally mimic the labels of the established brands. These products narrow the scope of FMCG products in rural and semi-urban market.

 Quantity of biscuits is less compare to its competitors, as they concentrate more on quality. Similar kind of Britannia product available in the market made by its competitors High overhead costs vis a vis competition from Parle, Priya Gold. Regular usage of processed food can cause alteration in health

OPPORTUNITIES: Untapped rural market Rising income levels, i.e. increase in purchasing power of consumers Large domestic market- a population of over one billion. Export potential High consumer goods spending Increased economy of India Generate employment opportunity Good quality of Goods Provide competition to foreign companies Improved living standards Provide goods to nation at cheaper rate Inflow of foreign reserve and funds for the govt. (taxes) With the opening of new offices in the different areas scope of sale of products will increase. Cost saving from lowering of excise duty on bakery products. Price hike in 100-gram Parle-G brand

THREATS: Removal of import restrictions resulting in replacing of domestic brands Slowdown in rural demand

Tax and regulatory structure Many companies are result oriented Increase in pollution Sometimes provide poor quality of product for more profit Lack of technology Unable to utilize all the resources efficiently Companies like Biskfirm, Parle , Sunfeast entering into this segment of market providing products to the offices at lesser rates by offering heavy discounting Unorganized bakeries. Rising input costs.

STRATEGIES - BRITANNIA INDUSTRIES

Excellent Distribution Channel Britannia products are sold in over 2 million outlets, reaching millions of consumers who buy approximately 2.4 billion packs each year. A small army keeps Britannia going - over 100 stock-keeping units, 3,000 employees, over 1,500 authorized whole sellers, 53 depots and 46 factories. Aggressive Marketing Of Products Differentiate brand according to regional disparities (product content, packaging etc.). Uttaranchal manufacturing facility will cover burdens significantly. Maintain the price to gain market share, focus on the Tiger brand taste. Distribution thrust into interiors. Opening van markets. Restructure production facilities. Heavy advertising to create consumer pull and be allowed to charge a premium.

 Advertisements emphasizing the product quality and nutritional value. Cut overheads. Preempt innovations by these players, got first mover advantage.

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. I found many products which can be compared with Britannia Biscuit. As a conclusion I found that particularly in my provided area Britannia is really doing well and its performance is on surprising level. During the field work and after intensive study it was found that main competitor of PRIYAGOLD biscuits is BRITANNIA as the market leader. In my provided area the share of the market is as follows. BRITANNIA PRIYAGOLD PARLE-G PURE FOOD OTHERS 8% 16% 8% 48% 20%

When we compared with other businesses then we follow the quality, price, distribution system, promotional strategy etc. of the competitors Britannia in this area is doing well. So this is the comparison with other biscuits brands. According to our findings we found that BRITANNIA is the market leader followed by BRITANNIA biscuits. These two biscuits companies the lion's share in the 2,200 crore biscuits industry.

MARKET POTENTIAL Market potential of the BRITANNIA is much positive in competitive era and will sure cover the maximum market share of biscuit product. Potentiality of any product depends upon the futuristic performance of the product. It depends that how much retailers have potentiality to be permanent seller of BRITANNIA. For great potentiality it is necessary to improve those factors which are going to affect retailers. In my study I found some factors which can help to cover great potentiality. These factors are following: Scheme delivery should in perfect determining time. Some places distributors not able to cover his particular area. That should be improved. Scheme facility should be regular as much as possible. Small pack also should be in the market. Always collect the views of retailers. It gives psychological effect on the retailers about care taken by manufacturing company. These factors are very important for the organization. If company is able to improve these all factors then definitely its market share will more increase. Retailers will take more interest to sell Britannia biscuit and customer will also enjoy for it. So potentiality is very high to Britannia biscuit in positive direction

BANGALORE: Britannia Industries plans aggressive moves beyond its mainstay biscuits business as its ambitions now encompass the entire world of food and beverages industry, its managing director Vinita Bali says. "Obviously, we are going to be in a business which is about things that people eat or drink," Bali said in an interview. "Anything within that, which is relevant (and) which can be differentiated, would be of interest to us," she told ET in the spacious boardroom on the second floor of the company's headquarters in Bangalore. The 56-yearold chief does not name any particular segment Britannia plans to enter, but feels that her 119-yearold brand has huge potential to grow beyond

biscuits, which make fourfifths of its sales. "I agree that Rs 4,600 crore (in sales) is too little for Britannia. Therefore, we have to work even harder to grow that," she says. "But we need to grow it meaningfully, and in a manner that is profitable and sustainable." Not that the growth has been slow. Under Bali, who took charge in 2005, Britannia has been increasing sales by an average 22% a year. And since French dairy company Danone exited to give Nusli Wadia a majority stake in 2009, Britannia has been trying to put its brand appeal to greater use by foraying into dairy, baked snacks and ready-to-cook breakfast segments. In March last year, it came up with Treat Choco Decker, a product that straddles both the biscuit and chocolate domains. In January, it launched its 'Healthy Start' range of ready-to-cook breakfast foods. In the coming days, Britannia will launch gourmet cheese, adding a new product to its dairy business, which accounts for about 5% of its sales. But Britannia has been pretty cautious in its forays. It has tiptoed into specialty breads and retail with the acquisition of Daily Bread in 2009, which remains confined largely to Bangalore, Hyderabad and Goa. Its 'Healthy Start' range is still being piloted in Mumbai while baked snack Time Pass is being tested in Bangalore. One reason for this could be that while Britannia's sales growth has been rapid, its profit margins have struggled in the single digits. And this weighs on Bali's mind. "Profit margins have to be better. That is very much part of our responsibility and part of what we are addressing through the way we manage costs, revenue and innovations," she says. Foraying into newer businesses would mean more rivals . So long, Britannia has had two main rivals - biscuits market leader Parle Products and ITC Foods. But in a wider foods market, it will be rubbing up against global giants such as Kraft, Pepsi and Kellogg. Bali is unperturbed.

"Competition is a fact of life, whether I'm selling a sewing machine or a washing machine," she says. "We are in business knowing that there are today's competitors and tomorrow's competitors and knowing that competition actually keeps us on our toes." The dairy business is an area where the company is particularly ambitious. Under dairy business head Vinod Menon, it has doubled sales in four years and expects to grow in "high double digits". Recent dairy products launches include milk-based health drink Actimind and Tiger Zor flavoured milk. "As we go away from commodity milk, we get more insulated from the basic cost of milk, provided the consumer has relevance for the product. That is where we want to invest our time, energy and money," says Menon.

In an interview to The Hindu, Vinita Bali, Managing Director of Britannia Industries, said, We are looking at opportunities out of home. How to make biscuits an impulse purchase like chocolate? A deep search for an answer to this question led the company to launch four-biscuit pack of Bourbon for Rs. 5. It looks like chocolate. It has chocolate taste. That is what Bourbon is all about. That is what we call personal consumption pack, she said. This personal consumption pack business, according to her, is tracking to be a Rs. 250-300-crore opportunity for Britannia. She recalled her days in Cadbury when the sales flew as eclairs were put in jars. The same thing happened in biscuits we saw the sales flew, she added. The personal consumption packs or small packs were affordable and convenient, she said. The conventionally-designed take-home packs comprised 17 to 18 biscuits and are priced high. One usually looks for something substantial to eat when out of home, she said. They often found the take-home packs too much to eat.

That is why people were not buying those take-home packs, she reasoned. That was why Britannia came out with a product like Good Day at a price of Rs. 5. In a country like India, there are more people at Rs. 5 price point than at Rs. 50 price point. It is the frequency and velocity a lot of people buying a little at a time which adds up to a lot, Ms. Vinita Bali pointed out. Britannias biscuit brands such as Bourbon, Treat, Good Day and Tiger have Rs. 5 packs in different grammage ranging from 42 to 54, placed in jars at vantage points in bus and railway stations. Small packs, she said, was not just a rural phenomenon. It was very much a part of the urban phenomenon, she added. She said Britannia brought the focus on functional aspects of its business. According to her, Britannia consciously moved to remove Trans fats. The company, she said, also fortified its brands with micro-nutrients iron in the case of Tiger. If you look at Nutri Choice 5 grain, it has complex carbs like oats, ragi and a dash of honey as well. We just launched a cracker with ajwain and jeera, which is good for digestion, she added.

Britania Analysis
Britannia biscuit company was started in 1892 in kolkotta .In 1920 with the help of electricity it mechanised its operations. In 1921 it became first company to import electric ovens. During world war two they were the contractors to supply biscuits to armed forces. In 1975 they took over distribution system of parrys. Iin 1975 they become as Indian listed company with more than 60% held by Indian public and it became Britannia industries limited. In 1983 it crossed 100 crores revenue turn over mark. In 1997 the company repositioned itself as Eat Healthy, Think Better. By becoming the core sponsors for 1999 world cup they enhanced their brand identity and brand image. The Lagaan Match was voted Indias most successful promotional activity of the year 2001 while

the delicious Britannia 50-50 Maska-Chaska became Indias most successful product launch. In 2002, Britannias New Business Division formed a joint venture with Fonterra, the worlds 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 Indias 2nd Most Trusted Brand. Innovation is the KEY MANTRA In this highly competitive market Britannia survives because of its continuous product and marketing innovation. Its reposition into Eat Healthy and Think Better touched the emotional part of all Indians and enhanced its brand image and market cap. Its continuous innovation and its low-cost variety to reach the market depth like TIGER BISCUITS are notable innovative strategies by the company. Even if you take Milk Bikis it changed its wrapper, form and size continuously to break monotony in the minds of the consumer. Latest Innovations

Tiger Banana NutriChoice Sugar Out NutriChoice Digestive Biscuit Treat Fruit Rollz Britannia 50-50 Pepper Chakkar New Britannia Milk Bikis

Financials Britannia Industries Ltd. (BIL), one of Indias leading food Companies, reported sales of Rs. 25,848 MM for the year ended 31st March 2008. This reflects a 17.5% growth over the previous year. Net Profit for the year at Rs.

191 crores grew by 77.6%. Operating margin improved by more than 300 basis points. For the last quarter of the year, the Company reported Net Sales of Rs. 6,92 crores & Net Profit of Rs. 61 crores, up 15.6% & 53.6% respectively, over the corresponding quarter last year. The Board of Directors has recommended a dividend of Rs. 18 per share of Rs. 10 each. Total payout including Dividend Distribution Tax amounts to Rs. 50 crores for the year. In the food processing industry it ranks 2nd among the top 3 in net sales in India Rank 1 2 3 Ratios Ratio Operating margin (%) Gross profit margin (%) Net profit margin (%) Current ratio Mar 2007 5.85 4.70 4.86 1.02 Mar 2006 11.72 10.46 8.48 1.35 Mar 2005 11.58 10.39 9.25 1.18 Mar 2004 11.21 9.65 8.16 1.10 Mar 2003 11.35 9.34 7.59 0.86 Company Nestle Britannia Glaxo smith Net Sales(03/07) 3500 crores 2200 crores 1300 crores

Operating Profit Margin Operating profit ratio=operating profit (EBIT)/sales

The decrease in operating profit margin in 2007 can be because of increase in the cost of raw materials and commodities like wheat and sugar. The material cost has gone up significantly from the year 2006 to 2007. Gross Profit Margin Gross Profit Ratio=Gross Profit/Sales The decrease in Gross profit margin in 2007 can be because of increase in the cost of raw materials and commodities like wheat and sugar. The material cost has gone up significantly from the year 2006 to 2007. Net Profit Margin It is calculated as Net Profit Ratio=EAT/Net Sales The decrease in net profit margin in 2007 can be because of increase in the cost of raw materials and commodities like wheat and sugar. The material cost has gone up significantly from the year 2006 to 2007. Current Ratio It is defined as current assets divided by current liabilities. It is a measure of short term financial liquidity of the firm. Current Ratio= Current Assets/Current Liabilities Analysis A current ratio of 2:1 is always considered as optimum means that there is a 50 % safety margin in terms of assets to cover its current liabilities. However this doesnt mean higher current ratio is good. It may signify higher unused cash, inventory which again may result in inventory carrying cost. A current ratio of around 1 seem to be numerically not attractive based on logics however for a company like brittnia with huge brand equity

and market cap this doesnt have significant negative impact from investors point of view or financial strength point of view.

Cost analysis of britania bread

MARKET POTENTIAL Market potential of the BRITANNIA is much positive in competitive era and will sure cover the maximum market share of biscuit product. Potentiality of any product depends upon the futuristic performance of the product. it depends that how much retailers have potentiality to be permanent seller of BRITANNIA. For great potentiality it is necessary to improve those factors which are going to effect retailers. In my study I found some factors which can help to cover great potentiality. These factors are following: Scheme delivery should in perfect determining time. Some places distributors not able to cover his particular area. That should be improved. Scheme facility should be regular as much as possible. Small pack also should be in the market. Always collect the views of retailers. It gives psychological effect on the retailers about care ness by manufacturing company. These factors are very important for the organization. If company is able to improve these all factors then definitely its market share will more increase. Retailers will take more interest to sell Britannia biscuit and customer will also enjoy for it. So potentiality is very high to Britannia biscuit in positive direction.

CONCLUSION After going thick on the thing, now time is to make a complete picture. While making a product a SKU (Stock Keeping Unit) of the shop retailers think about the GMROI (Gross Margin Return On Investment) and they promote the brand which provide them highest. They expect return in the form of profit margin, company schemes, window display and references of the shop. Among these, company schemes make the differences and are the highest source of motivation after profit margin. Retailing demands a constant push from the company. Marketer needs to use advertising and brand building strategies to address the discerning buyers and retail push to in different buyers. The manufacturer should understand consumer behavior because retailers can't help quality and price. It is only up to dealers said it is demand they sell Britannia 42% agree that at retail shop it is brand popularity, which determine the purchase of biscuit. There is a greater need to understand the retailer behavior considering them as a team working for the company may help them to be attached to the company. There should be feeling of belonging to the company in inner of the retailers. Setting values club for retailers so that they may exchange views with the company and help in understanding consumer behavior.

MANAGEMENT TEAM ANURADHA NARASIMHAN - Category Director - Health & Wellness ASHOK KUMAR GUPTA - General Manager - Accounts & Planning B. PRASHANTH - Head of R&D BALAJI REDDIPALLI - Head Replenishment Dr. K.N. SHASHIKANTH - Head - Corporate Quality

JITENDRA MAHAJAN - Head - Procurement KAILASH H. KAKANI - General Manager - Manufacturing Operations N. VENKATARAMAN - General Manager - Commercial P. GOVINDAN - Company Secretary & Head of Legal R. ANAND - Business Operations Director R K AGRAWAL - Supply Chain Director for New Business Development SHALINI DEGAN - Category Director - Delight & Lifestyle SHRIDHAR PANSHIKAR - National Sales Director T S VENKETRAM - General Manager - Engineering Projects & Technology VALIVETI V PADMANABHAM - Head - Corporate IT VINOD MENON - Head - Dairy Business