Business Dynamics

A PROJECT REPORT ON BUSINESS DYNAMICS

PREPARED BY

MANISH KHATRI

IN PARTIAL FULFILMENT OF THE REQUIREMENT OF POST GRADUATION DIPLOMA IN MANAGEMENT

UNDER THE GUIDANCE OF

AIR MSHL PRAKASH HONMODE

SINHGAD BUSINESS SCHOOL, PUNE DECEMBER 2008

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AKNOWLEDGEMENT

I take the opportunity to thank Sinhgad Business School, Pune for giving me this opportunity to do this project. I would like to thank our Director Sir Mr. Anil Kesakar, our class coordinator Mrs. Sridevi Chennamsetti, special thanks to the Guide Sir Air Mshl Prakash Honmode and all faculty members and all those people who have helped me directly and indirectly in the successful completion of this project.

Manish Khatri

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STUDENT DECLARATION

I hereby declare that the project report entitled BUSINESS DYNAMICS Submitted in partial fulfillment of the requirement for the award of diploma of

POST GRADUATION DIPLOMA IN MANAGEMENT to Sinhgad Business School, Pune is prepared by me.

Place: PUNE Date: 08/12/2008 Signature of the student SBS281032

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APPROVAL CERTIFICATE The Project Report of

Mr. MANISH KHATRI

BUSINESS DYNAMICS

is approved and is acceptable in quality and form.

Examiner Signature: _____________________ Name: ________________________

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GUIDE’S CERTIFICATE This is to certify that the Project Report entitled

BUSINESS DYNAMICS Submitted in partial fulfillment of the requirement for the award of diploma of

POST GRADUATION DIPLOMA IN MANAGEMENT Of Sinhgad Business School, Pune

MANISH KHATRI Has prepared under my supervision and guidance and the Project Report is made by him only.

CERTIFIED

Signature______________________ (Prof.) AIR MSHL PRAKASH HONMODE

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TABLE OF CONTENTS S.no.

Particulars

Page no.

1.

Business Dynamics

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2.

Britannia-Introduction

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3.

Important Persons of the Company

03

4.

Company History

05

5.

Innovation & Productivity

08

6.

Organization Structure & Operating Policy

09

7.

Marketing Strategies

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8.

Britannia Food Strategies

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9.

Promotional Strategies

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10.

Advertising Strategies

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11.

Branding Strategies

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12.

Positioning Prospectives

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13.

Beyond Biscuits

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14.

Conclusions

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Bcoz the front page was not added in it that is why the pg no. could be wrongly mentioned BUSINESS DYNAMICS 6

Business Dynamics is a scientific approach and a set of conceptual tools that enable us to understand the dynamics of organizations and of markets and the relationship between organizational behavior patterns and organizational structure. Analyzing the effects of time delays and of feedback loops are at the core of Business Dynamics and also constitute the main difference to other disciplines of Business and Management Science. Understanding the dynamics of a market, of an organization or parts of it as results of layers of time delays and of feedback loops helps to better control or influence an organization's (strategic) development. Specific observable behaviors and phenomena of markets or of organizations, e.g. exponential growth, S-shaped growth, oscillation, collapse or chaos can be better understood and thus managed through Business Dynamics. Whenever we look to the future, the first place we turn for guidance is technology. The tiny phones in our pockets and the flashy Web sites on our laptop screens are tangible testimony to how much life and business have changed over the past 10 years. Without doubt, e-mail has drastically reduced the time it takes to send a message or file, and the Web has taken some of the grind out of research. But, with the exception of Web designers, haven’t more mundane technologies, such as desktop publishing and 3D CAD, made more of an impact on the way we work. On a more profound level, the rise of branding, innovation, and globalization in the nineties changed the very way we conceived what it is we do. Design strategists must take a wider view of how technology drives change, and they should do so by placing it within the context of social and business dynamics. If they did, they might judge social networks to be just as influential as IT networks, and that sometimes a low-tech approach makes for a stronger business proposition. Businesses everywhere face tough new challenges. That's why strong strategies are more important than ever. To understand the areas of business dynamics let us have an example of BRITANNIA:-

INTRODUCTION 7

Britannia, one of the premier food product company in India. Britannia started as a small biscuit company in 1892 and has grown to a household name. Britannia started its business in Calcutta (now Kolkata) with an initial investment of Rs. 295. From thereon, Britannia's business flourished acquiring a reputation for quality and value. Britannia Industries Ltd. has a number of awards and accolades in its name like : Forbes Global rated Britannia 'One amongst the Top 200 Small Companies of the World'. The Economic Times pegged Britannia India's 2nd Most Trusted Brand. Activities Britannia product line includes biscuits, snacks, packed milk, cheese, butter, buttermilk and yogurt. Britannia owns popular brands like: NutriChoice Sugar Out. NutriChoice Digestive Biscuit. Treat Fruit Rollz. New Britannia Milk Bikis. Britannia Marie Gold Doubles. Britannia 50-50. Britannia Tiger Biscuits. The Wadia Group (parent company of Britannia) along with Groupe Danone of France has turned up to be an International FMCG Major specializing in Fresh Dairy Products, Bottled Water and Biscuits/Cereals. One of the World leaders in the food industry, some of its achievements are: No # 1 worldwide in Fresh Dairy Products. No # 1 worldwide equally placed in Bottled Water (by volume). No # 2 worldwide in Biscuits and Cereal Products. GROUPE DANONE three core business areas are Fresh Dairy Products, Beverages and Biscuits and Cereal Products strives to improve the lives of people 8

around the world by providing them with better and value added food products. Its dominant position worldwide is based on major international brands and on its rock solid presence in local markets (about 70% of global sales come from brands that are local market leaders.) Performance Britannia has registered a turnover of Rs 21,993 million for the year ended 31st March 2006-07. Britannia has posted Net Profit to the tune of Rs 1076 million for the year ended 31st March 2006-07. IMPORTANT PERSONS IN THE COMPANY NAME

DESIGNATION

Mr. Nusli Neville Wadia

Chairman

Ms. Vinita Bali

Managing Director

Mr. Keki Dadiseth

Director

Mr. Avijit Deb

Director

Mr. Stephan Gerlich

Director

Mr. A.K.Hirjee

Director

Mr. Nimesh N Kampani

Director

Mr. Pratap Khanna

Director

Mr. Jeh N Wadia

Director

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 9

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, optimistic - and combining it with a delightful product range to offer variety and choice to consumers. 2006-07 was an exceptional year for Britannia with top line sales growing at 27.5%, making Britannia the leader among FMCG Companies in terms of organic growth. It also saw the Bread, Cake and Rusk business grow 54% to become a Rs. 2,000 mn business. Top line growth was driven by investment in the fundamental growth pillars of brands - renovating existing brands and launching new ones and expanding reach. With the segmented and sharpened go to market strategy , Britannia’s brands now have greater availability in rural markets and pervasive presence in modern trade. In a fiercely competitive environment Britannia outpaced market growth and Britannia brands continue to lead the market in every category, except for Glucose biscuits. Britannia was ranked second among FMCG Companies in the Business World Most Respected Company Survey2006. Britannia's strategy of strengthening and sharpening its brands and liberating them from existing formats and conventional biscuit archetypes has paid off. In that context, Tiger is now more than a glucose biscuit and includes cream and coconut varieties. The Tiger Chota extension draws on the kids snacking habit presenting biscuits as small, pop-able, snacks in a pouch pack. Similarly, Treat added Fruit Rollz to its repertoire of delightful and indulgent experiences for kids. Innovation has shown its promise as a key business driver addressing several purchase and consumption opportunities both in-home and out of home, as well as for gifting. Britannia's focus on innovation has meant more new offerings (brands, product and pack forms) than the rest of the industry combined. Prominent innovations include Chota Tiger, 50:50 Chutkule, Treat Fruit Rollz, NutriChoice Digestive, NutriChoice Sugarout, Renovated Milk Bikis and Chocolate Cream in the Tiger range.The Bread, Cake and Rusk portfolio was strengthened with the successful national launch of Good Day cup cakes and extension of rusk to the south. 10

As a corporate , Britannia has worked for the benefit of all stakeholders - shareholders, consumers, dealers, suppliers, bankers and employees. It has established an excellent track record in terms of its financial performance and dividends distributed to its shareholders . This has been adequately demonstrated with the Company's topline growing from 8, 478 Mn in 1998 to 23,171 mn in 2007, a growth of 173% over the last 10 years. The net profit grew even more significantly at 273 % from Rs 289 Mn in 1997-98 to Rs 1,076 Mn in 2006-07, giving a CAGR of 15.72 %. As at 31st March 2007, the issued and paid up capital of Britannia amounts to 23,890, 163 equity shares having a nominal value of Rs 10 each. The shareholder base is about 24500 in number. Company History - Britannia Industries 1994 - During the year, the bakery division launched `Bakers Choice' a sweet biscuit and `Thinlite' a light semi-sweet biscuit aimed at fitness concious consumers. 1995 - Under the `Pure Magics' Umbrella, the company launched a new sandwich cream biscuit with two-in-one flavour viz. double cream and this was well received in the market. In the cake market, under the premium segment, the company launched with Groupe Danone's technological input a Swissroll Cake Mini Roule which was also met with good response. 1996 - Marie gold biscuits registered quantum growth in volumes and milk bikis milk cream launched during the year was well received. Despite general slowdown in the economy the company's profits improved. 1997 - The Biscuit industry has been dereserved which would not only remove restriction on increasing capacity but would also provide opportunities of growth through new products and efficient production systems. The Company undertook to diversify into cheese and dairy whitner. - The Company launched `Tiger' range of biscuits for mass market category, `Jim-Jam' and `Chekkers' in the premium segment. The Company also launched Butter in Delhi during the year. - Britannia Industries (BIL) is one of the largest bakery in the private sector and a household name in food products.

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- Britannia Industries Ltd is all set to launch a new corporate identity and a total revamp of its product portfolio, with strategic inputs from an international strategic design and brand repositioning company - Shining Strategic Design. 1998 - Food major Britannia Industries Ltd (BIL) has signed a wage agreement with the Maharashtra General Kamgar Union (MGKU), providing an average wage increase for 1,000 workers employed in the biscuit manufacturing unit at Reay Road, Mumbai. - The company has launched Half/Half, a soft cake filled with cream in two variants, chocolate-vanilla and vanilla-orange. Half/Half comes in a twin-cake pack (Rs.6) and a tray pack containing five cakes. 1999 - Britannia Industries Ltd has rolled out its flavoured milk brand `Zip-Sip' in tetrapaks. Zip-Sip has been launched in Mumbai and some markets in the South. - Britannia Industries, launching the country's first branded flavoured milk is another step towards its goal of becoming a dairy-products giant. 2000 - Britinnia Industries has launched consumer promotion scheme `Britannia Khao, Cricketer Ban Jao' on May 1st. - Britannia Industries, in its second coming in the Indian dairy market under the `Milkman' brand, is introducing a range of products many in desi flavours to woo the Indian consumer. - The Company has launched Vita Mariegold, a semi-sweet biscuit which reportedly has 10 essential vitamins, milk protein and 58 cereals. 2001 - Britannia Industries has launched Britannia Milkman Milk in Delhi. - Biscuits major Britannia Industries will fund its in-principle agreement to acquire 49 per cent of Kwality Biscuits through internal accruals.

2002

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-Britannia Industries Ltd announced on March 26, 2002 that it has entered into a joint venture with the Fonterra Cooperative Group, New Zealand's biggest company and one of the leading diary co-operative groups in the world. -Britannia's new COO is Nikhil Sen. 2003 - Board of Directors of Britannia Industries Ltd has passed a resolution to terminate the employment of Mr S K Alagh as Managing Director of the company with immediate effect. - The management of Britannia Industries has roped in John Miller, a Danone representative, as additional director on its board. -Britannia New Zealand Foods, a joint venture of Britannia Industries and Fonterra Cooperative group of New Zealand has launched Britannia MilkMan fresh milk. 2004 -Britannia Industries Ltd has informed that pursuant to the approval of the shareholders of the Company at the AGM held on August 08, 2003 and the subsequent application to the Cochin Stock Exchange Ltd., the said stock exchange has delisted the securities of the Company with effect from November 15, 2003. -Britannia Industries Ltd reviews marketing alliance with the Kolkata-based Thacker Dairy Products Pvt Ltd. 2005 -Britannia New Zealand launches health drink for adult. 2006 -Britannia Industries Ltd has forged a strategic alliance with CCD. Daily Bread Pvt Ltd a Bangalore based Company engaged in manufacturing and retailing of premium breads, cakes and high end ready to eat foods and snacks. -Britannia Industries Ltd has appointed Mr. Stephan Gerlich as a Director. -Britannia Industries Ltd has informed that Mr. Durgesh Mehta has joined the Company as the Chief Financial Officer (CFO) with effect from November 16, 2006.

Innovation & Productivity 13

Rather than hike product prices, Britannia is banking on product innovations to boost brand sales and add value to the consumer experience. Biscuit prices have remained firm for the last five-six years for existing brand and categories. Given the exorbitant and unprecedented inflation in commodities this year and the high level of taxes, VAT at 12.5 per cent, margins for the industry are under pressure. Britannia has focused on innovations to add value to consumer experiences with its brands. In the past year, the company has launched offerings like Marie Gold Doubles which combined three flavours in one biscuit, Pepper Chakkar, Chota Tiger and Greetings to widen consumption categories. Greetings, the gifting brand that the company introduced last year is expected to grow 200-250 per cent over last year with an extended range being introduced this year. Apart from biscuits and snacking (Maska Chaska and Pepper Chakker) the company is also increasing focus on categories like rusks, cakes and bread. Good Day cupcakes, which were being test marketed in the south have now been rolled out across the country this year. The company would also look at expanding the DeLuca Gelato Italiano brand to the major metros over the next four years. This is being done through Daily Bread, a boutique bakery that Britannia had picked up a strategic stake in earlier this year. This acquisition is likely to spearhead the company’s foray into other bakery products like value added breads. Meanwhile, the diary joint venture with Fonterra is expected to grow at 15 per cent this year and garner revenues of Rs 120 crore by 2006-07.

Organization Structure & Operating Policies 14

Britannia is a brand, which is trusted by people. The brand equity has been built and nurtured by each and every one of the 4200 odd employees, who constitute the direct Britannia family, not to speak of the extended family comprising of distributors, suppliers and franchisees. The organization is derived with a passion to produce and market 'tasty yet healthy' products in which the consumer perceives value for money. It has built the consumer's trust by providing consistent quality and through emotional bonding. Britannia is not one of those highly structured bureaucratic organizations. It prides as a company that provides a lot of space for people to come on board and create their own success stories in their journey towards achieving the company's vision and mission. Consistent superior levels of performance backed with potential, which is assessed through robust processes that exist in the organization, open out avenues for the employees to take charge of businesses. The organization has a business structure wherein the nation is divided into four regions and each region is a profit center headed by a General Manager who is responsible for both the top and the bottom lines. The internal processes are continuously honed to ensure that they develop their Managers, as an extremely customer focused entrepreneurial orientation.

Marketing Strategy

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Eat Healthy. Think Better. Buy Britannia. The 80-year-old biscuit king is reinventing itself. Britannia now wants to become a foods giant, with the newly-added tag of health and nutrition. What's more, with a clever formula of prices and products, it is targeting every segment of the Indian market. Britannia Rules! A day before the World Cup Of Cricket 99 began in England on May 14, 1999, one of Britannia Industries' senior-most marketing managers was spotted at Mumbai's Sahara International Airport-escorting a gaggle of excited children, all of them sporting Britannia caps, Britannia T-shirts, and other assorted Britannia paraphernalia. No, he wasn't test-positioning yet another brand of biscuits on a group of unsuspecting young 'uns in an airport lounge. Those kids were actually some of the 100 megawinners of the Britannia Khao, World Cup Jao contest, being flown off on charters to Old Blighty to watch the World Cup at Britannia's expense. See Cricket. Sleep Cricket. Eat Only Britannia (sic!). After all, the Rs 1,030-crore Britannia had spent a whopping Rs 10 crore on the bkwcj contest-the single biggest promotion ever in the Indian marketing history. Instead of concentrating on a few of its biscuit brands, Britannia included all 16 of them in the 7level contest it ran, which blocked the air-waves for 13 weeks. The result: 1.60 crore customers actually exchanged 4 empty packs each for the booklet on cricket that came as the first reward.

BRITANNIA'S FOOD STRATEGIES

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BISCUITS: Target customers to capture growth in each category by segmenting the market both along conventional lines and through segmentation. DAIRY: Enter selective segments to establish a presence so that the portfolio includes premium as well as popular brands. BREAD: Continue with the category despite being a low-margin market since its presence is a logical extension of its expertise in bakery products. LOOK BEYOND THE PRODUCT, AT THE CUSTOMER. AND USE KNOWLEDGE TO REPOSITION THE BRAND. The 80-year-old Britannia's biggest problem was that it thought Britannia meant biscuits to the customer. It actually meant health and nutrition. Eat healthy, Think Better is a tangible proposition to the customer. Britannia realised that it would have to both fire up its marketing strategies in its main line of business, and tap new food categories to grow in too. One reason why it woke up late was because the company didn't have a proper parent until the French food and beverages major, Danone, acquired RJR Nabisco's holding in the company. Only in 1993 did Danone, along with Bombay Dyeing's Nusli Wadia, consolidate its 44 per cent stake in Britannia, and put in place a stable management, led by Managing Director Sunil K. Alagh. But now, Alagh realised, the time had come to change the rules of the game-quickly. His two-pronged agenda: REINFORCE BRITANNIA'S STRENGTH IN BISCUITS. Swamp the market by wider and deeper distribution, and differentiate Britannia's products by re-positioning every brand. REDUCE BRITANNIA'S DEPENDENCE ON BISCUITS. Diversify into new businesses, and turn Britannia from a biscuits company into a foods company. Thus, Britannia wants to stay the market-leader in biscuits, and be a major player in other businesses too. ''As the company enter the New Millennium, the company's vision,'' explains the dapper, salt-and-pepper-maned Alagh, ''is to ensure that every third Indian is a Britannia consumer.'' That is, 300 million consumers of Britannia's biscuits, bread, butter, cheese, and snacks. And, who knows, perhaps yoghurt-and, of course, milk. Don't let their innocuousness lull you into thinking that these changes are merely part of a routine repositioning initiated by an ageing brand. The desire to launch a product for every segment of the market, intensify market penetration, and diversify into foods is indicative of a revolution at Britannia: an intention to look beyond the product at the customer. And every gambit in Alagh's marketing game-plan can be traced to a newfound focus on the customer.

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The Marketing Strategies also includes Milk-Bikies are made especially for children. Britannia TIGER Biscuits are made for boys and girls in the age group of 7to14. Britannia is quick to realize the wants of Teenagers, it brought a special brand for this group in the name "Little Hearts" which became super hit in no time. Britannia's next strategy was to introduce a new brand with a question tag " Sweet or Hot " biscuit. It was branded as "50-50-Biscuit". When the decision is referred to the 3rd umpire in cricket, we all see "50-50" blinking in the screen, it is also a way to impress the biscuit brand's name in the minds of cricketing world. Marrie Gold is an universal brand introduced by Britannia which is sought after in tea time and when travelling, thus making the demand for this brand as the highest which is also due to an affluent price. Britannia Industries is now churning out aggressive marketing plans to promote the company's new launches-Britannia Milkman Sweet Lassi and Cold Coffee. In a bid to create awareness for its two new dairy products, Britannia Industries is in the process of rolling out a nationwide advertising campaign which includes a high-voltage television and outdoor media campaign.

Promotional strategies

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"Eat Britannia, Go for World Cup" was the theme adopted in 1999 .People bought the biscuit packs and searched for the lucky scratch for flying to England to see world Cup Cricket match.The sales bounced 37% high on account of this strategy.The scheme came alive again during the world Cup Match in 2002-2003 in South Africa. " Lagan - the super hit movie " brought fame to Britannia Biscuits also as 40000 buyers of Britannia Biscuit packs were invited to see and a small lucky group to play the game with the movie Stars of Lagan. What a novel way to promote a product - a perception in correct proportion indeed. Advertising Strategies Britannia Industries Ltd (BIL) is unwrapping a new advertising strategy for its relaunched brand MarieGold, Parle Products Pvt Ltd has roped in Ogilvy & Mather India to design the advertising plans for its yet-to-be launched brand Monaco Bites. With the entry of Hindustan Lever Ltd’s biscuit brand Modern Energy Biscuits, competition is hotting up in the Rs 2,500-crore Indian biscuits market. For starters, BIL has recently relaunched its flagship brand MarieGold with value additions in a bid to rejuvenate the brand. Along with the relaunch, the company has also revamped the advertising and packaging strategy of the brand in the overcrowded category. Strapped with a new tagline ‘Packed with wheat energy’, the new avatar of MarieGold in a new packaging hit the Indian marketplace just a few days ago. The company is still in the process of rolling out the relaunched brand across the country, inform sources from the company. And to announce the relaunch of MarieGold, BIL is rolling out a multi-media ad campaign which includes press advertisement, television commercials and radio advertising, says Lowe India (Bangalore) vice-president Preeti Maroli. “We’ll be using all the media vehicles that are available. To start with, we have launched a television commercial in Hindi. Very soon, we will roll out print ad campaign first in Hindi. Later we will go for press ads in English,” she adds. To support the mass media ad campaign for its relaunched brand, the agency will be using below-the-line activities too. The agency also has plans to put up hoardings and banners as part of its outdoor media strategy. “As for our ad strategy, we have used the health plank to highlight the the benefit of wheat energy in the relaunched MarieGold. And of course, we have revamped MarieGold’s packaging strategy with the relaunch,” adds Ms Maroli. On the other hand, Parle Products Ltd has hired the services of Ogilvy & Mather India to create communication plans for its new product called ‘Monaco Bites’. Says Ogilvy & Mather India executive director Nishi Suri: “Amid stiff competition, we won this new account. The other agencies in the fray were Everest Communications and Grey 19

Worldwide. It’s a prestigious account as our client plans to launch ‘Monaco Bites’ in different flavours, including cheese.” According Ms Suri, Ogilvy & Mather has been handling the ad account of Parle KrackJack for the last 15 years. The ad campaigns for Monaco Bites are still in the pipeline. Branding Strategies Britannia's customers range from the rural gamin, who spends a few rupees on a packet of Tiger at the local paan-shop, to the health-conscious urban housewife, picking up a month's supply of Marie Gold at a supermarket. Any company that wishes to cater to a customer-base as varied as this needs to possess a large portfolio of brands. With different USPs, positioned at different price-points, yet unified under a uniquely differentiated mother brand that is near-generic: Britannia. A biscuit is, well, a biscuit-made of wheat flour, sugar, leavening agents, emulsifiers... How could Britannia make its biscuits any different? As a starting-point, between late 1995 and early 1997, Britannia conducted qualitative and quantitative research, surveying over 5,000 consumers, to find out how they perceived the brand. One finding: the customer looks at Britannia as a trusted and a caring brand-one that she grew up with. Such values were not unique to Britannia; brands like Johnson & Johnson and Dabur enjoyed the same virtues in the customer's mind. Points out Sandeep Puri, 35, Associate Director, Ammirati Puris Lintas, Britannia's ad agency: ''We had to create a more tangible association. Health and nutrition came to mind when we discovered that, across demographic segments, all our customers are health-conscious.'' The attribute rubbed off easily on biscuits. Since mothers prefer baked products as a snacking option for their children, positioning Britannia biscuits on the health platform didn't erode the brand's value; it enhanced it. It was a repositioning that did not have any intrinsic boundaries either. Claims Puri: ''With the health plank, Britannia could enter other markets too.'' After zeroing in on the attribute, it was a short step for Alagh and his team to work out the precise positioning of the mother brand: Eat Healthy, Think Better.

Positioning Perspectives 20

To a company aiming to be a snack-foods and dairy major, this meant that the customer could be expected to use any of its products in a variety of contexts: meal-times, snacktimes, even while cooking. And the usage could be just about anywhere in the country: in a town with a population less than 1 lakh or a metropolitan city with a population of 20 lakh. For Britannia, meeting these demands meant creating products for every possible usage-occasion, and a distribution reach that made the product available within arm's reach of desire. Britannia's revamped biscuits range covers a variety of benefits. At the low-end pricepoints targeting the mass market, Tiger Glucose (Rs 5 for a 100-gm pack) and Tiger Cashew Badam (Rs 6 for 75 gm) are positioned as healthforce biscuits. Consumer research showed that good health is the overwhelming objective when mothers choose snacking options for their children; it also revealed that mothers are aspirational for their children. So, the selling line for Britannia Tiger was Jam Ke Khao, Kuch Ban Ke Dikhao (Eat Lots, Become Something). The proposition repositioned the brands, and brought a contemporary feel to the advertising. Beyond Biscuits A customer who buys Benetton isn't really buying a T-shirt; she's buying attitude. It didn't take long for the born-again Britannia to realise that its customers weren't really buying biscuits; they were buying health, nutrition, and food. The rest was easy. If it was nutrition-not biscuits-that the customer was buying when she bought Britannia, why not extend the brand to other markets where the customer looked for nutrition in every purchase? While the bulk of Britannia's turnover comes from biscuits. Forty-five years ago, Britannia first diversified by launching bread, marketing Premium Bake in a few cities. It wasn't unrelated. Like biscuits, bread and cakes are bakery products, but their distribution logistics vary. Bread needs a daily distribution system-unlike biscuits-and setting up such channels throughout the country is tough. Local bakeries rule the roost, being able to manage the logistics of a smaller geographical area. It is britannia’s strategic decision to be a comprehensive foods and beverages company, offering the consumer health and nutrition. Britannia is already the leader in baked goods. In the last few years, it have launched dairy-products, like cheese, dairy-whitener, flavoured milk, and butter too.'' It wasn't a coincidence that the repositioning exercise came when Britannia was hatching an extension into dairy products. Cheese and butter fit well with the health platform. clubbing of the repositioning exercise and the diversification into dairy-products has helped Britannia accelerate its transition from being a biscuit-maker to a foods-marketer.''A key reason for re-engineering the brand was not only to make it more contemporary and robust, but also more stretchable. Cheese was followed by butter, and, now, Britannia has launched flavoured milk, sub-branded Zip Sip, in tetrapaks. On the cards could be yoghurt and other dairy products. Britannia's diversification isn't out-of-the-box; it reflects its parent's portfolio. Ever since it got control of Britannia, Danone has been providing it technology in biscuits and pastries. More important, its biggest business is dairy: dairy products account for 44 per cent of its turnover, and biscuits, 20 per cent. Which is driving Britannia's diversification. 21

Conclusion • • • • • • • •

Britannia Industries have a base of 23,000 share holders with a paid up capital of 23890163 shares of Rs10/each today. Largest company in India in food processing industries where product range also includes Breads and Cakes. Manufacturing and sourcing locations spread across the length and breath of the country. Tens of Thousands of outlets having one of the largest distribution net work in the country. Britannia Biscuits enjoy a brand loyalty in Export Houses also. When it TIGER brand was introduced in the market , Britannia supplied Note Books, Scales, Pencils to Children in the name of its new brand free of cost. Britannia now owns an ultra modern manufacturing facility. It has built up a big consultancy centre also. Biscuits sold in a year when kept in pile formation one above the ones may scale 10 times higher than the Everest Peak

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BIBLIOGRAPHY

Websites:1. www.google.com 2. www.yahoo.com 3. www.msn.com

Books:1. Business case studies 2. Strategic Financial management by G.P. Jakhotiya

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