An Introduction

to
FMCG Industry

1
 Industry Profile

Fast Moving Consumer Goods

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.

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FMCG – Evolution :

 1950’s-80’s – Low Investment in the sector

 Low purchasing power
 Govt’s emphasis on small scale sector
 HLL and other company’s urbane focus
 Post liberalization
 Entry of MNCs
 Focus shifted to getting to rural consumer first
 Others, like Nestle, remained with the urban population
 Latest fad to hit the market is the ‘sachet’ bug.
 Mushrooming of regional brands
 Nirma enters and changes the focus to ‘Value for Money’ in the
70’s
 Post liberalization, Jyothi Laboratories, ‘Ghari’ Detergent and
‘Anchor’ toothpaste giving the nation-wide brands a run for their
money.

FMCG SECTOR :

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, 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.

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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.

THE TOP 10 COMPANIES IN FMCG SECTOR

SL. Companies
NO.
1. Hindustan Unilever Ltd.
2. ITC (Indian Tobacco Company)
3. Nestlé India
4. GCMMF (AMUL)
5. Dabur India
6. Asian Paints (India)
7. Cadbury India
8. Britannia Industries
9. Procter & Gamble Hygiene and Health Care
10. Marico Industries

SOURCE: http://www.naukrihub.com/india/fmcg/top-companies/

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 Biscuit Industry
In
India

HISTORY OF BISCUITS:

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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".

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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:

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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
oval-shaped 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.

Biscuit making process

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MIXING: This is a process where all ingredients are put together in right
proportion for dough formation. These ingredients are then fed into Mixers
where mixing is done and dough is prepared for moulding/cutting .Major
ingredients are flour, fat, sugar and others as per the product one would
like to have.

MOULDING: In this section we laminate the dough into sheet, which then
passes down to gauge rollers, and sheet thickness is achieved for
moulder/cutter. Here we have a cutter or moulder as per the variety
where one gets the shape and sizes of biscuits.

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BAKING: This is the area where we pass these moulded wet biscuit into
baking oven. The biscuits are baked on desired temperatures. Various
type of heating are available now days as per the convenience and cost.
Different type ovens are available

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COOLING: These baked biscuits are then passed on to cooling conveyors
for natural cooling prior too packing .The temperatures are brought down
to room temperatures

PACKING: These biscuit are then stacked and fed into packing machine
for packing Different packing material are available for packing of these
biscuit in different packs slug packs , pouch pack or family packs etc.
These packs are then put into secondary packaging like cartons to be
transported to retailers.

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BISCUIT INDUSTRY IN INDIA-STATUS PAPER

1. Annual Growth:

The biscuit industry in India witnessed annual growth as below:-

2003-04 - 15%
2004-05 - 14%
2005-06 - 14%
2006-07 - 13%
2007-08 - 15%
2008-09 - 17%
(April – June)-
While the growth rate has been stagnating during last 4 years, it has picked up
momentum during the 2007-08 and the first quarter of 2008-09 mainly on
account of exemption from Central Excise Duty on biscuits with MRP up to
Rs.100/per kg, as per Union Budget for 2007-08.

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Indian Biscuit Manufacturers’ Association (IBMA), instrumental in obtaining
the excise duty exemption, estimates annual growth of around 20% in the year
2008-09. Growth in biscuit marketing has been achieved also due to
improvement in rural market penetration.

2. Annual Production:

The organized biscuit manufacturing industry‘s annual production

figures are given below:
(In Lakh Metric Tonnes)
2003-04 - 11.00
2004-05 - 12.54
2005-06 - 14.29
2006-07 - 16.14
2007-08 - 17.14
Segments : The organized and unorganized sectors of the biscuit industry is in
the proportion Of 60%:40% ratio.
EXPORTS of Biscuit is estimated to be around 15% of the annual production
during the year 2007-08.
IMPORTS of biscuits into India has not shown any significant growth during the

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last two years and has not affected production/sales by the Indian Biscuit
industry .

3. Rural-urban penetration of Biscuit:

Urban Market :75% to 85%

Rural Market : 50% to 65%
Marketing : Wholesale and Retail marketing in the Biscuit industry is carried out
with a network of C & F Agencies (for States and specific Districts), Dealers /
Wholesalers and Retail shops.
HIKE IN COST OF PRDUCTION : Biscuit Industry especially the Small & Medium
Sector, consisting of around 150 units are facing erosion in their profitability and
competitive capability, due to :-
Steep hike in cost of production on account of increase in prices of major raw
materials, i.e. Wheat Flour Veg. Oil, Sugar, Milk, Packaging Materials, Fuel.
Wages,etc.Recent increase in prices of Petrol/Diesel in May 2008 has further
resulted n cost push.
Detailed Comparative Chart showing adverse impact on Biscuit Industry is given
below:

4. HIKE IN PRICES OF RAW MATERIALS

S.NO Raw Martial Jan 08 May 08

1 Maida 12.23 12.00
2 Sugar 15.09 16.00
3 Parmoline Oil 52.99 57.00

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 4 S.M.P 122.00 127.00
5 Butter 118.94 130.00
6 Laminate 200.00 230.00
7 F.O 26.63 35.00
8 HM Bag 91.92 105.00
Carbon Box Per
9 25.00 28.00
Kg

• The above rates are excluding VAT & other Taxes as well as
• Cost escalation due to increase prices of
• Laminate, hike in prices of Petrol/ Diesel, Revision of wages

S.No Cost per KG Jan 08 May 08 Difference inIn %age

Rs
1 Glucose 85 gm 31.08 31.73 0.65 2.09
2 Crunchy bite30.18 32.40 2.22 7.36
150 gm
3 Golmol 150 gm 34.06 34.26 0.20 0.59
4 Butter 250 gm 41.59 43.82 2.23 5.36
5 2 in 1 75 gm 39.01 41.06 2.05 5.26
6 Milk Cream 7546.38 47.28 0.90 1.94
gm
7 Marie 17 gm 40.37 41.21 0.84 2.08

5. Pattern of Biscuit Consumption(On Zonal basis) in the

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country are as below:
Northern Zone - 25%
Western Zone - 23%
Southern Zone - 24%
East and North
East Zone - 28%
(Including N.East)
The per capital consumption as well as pattern of consumption in the four
regions, as shown above, will also increase considerably, in case the industry’s
plea for reduction in the rate of Value Added Tax (VAT) from 12.5% to 4% is
acceded to

Main Categories of Biscuits are broadly as under:

Glucose, Marie. Sweet, Cream, & Milk

Popular Brands of Biscuits in the country are, Britannia, Parle, Priyagold,

Anmol, Sunfeast, Biskfarm, Dukes, Cremica, Priya, Bonn, Raja, Champion,
Cookieman etc.

http://www.ibmabiscuits.in/industry-statistics.html

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Biscuits can be broadly categorized into the
following segments:

Biscuit Category Annual Production in

Percentage
Glucose 44%
Marie 13%
Cream 10%
Crackers 13%
Milk 12%
Others 8%

SOURCE: http://foodbizdaily.com/articles/32688-news-biscuit-industry-in-
india-an-overview.aspx

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 Britannia
Industries Ltd.

18
 COMPANY PROFILE

COMPANY’S BACKGROUND

Britannia was incorporated in 1918 as Britannia Biscuits Co LTD in

Calcutta. In 1924, Pea Frean UK acquired a controlling stake, which later
passed on to the Associated Biscuits International (ABI) an UK based
company. During the 50’s and 60’s, Britannia expanded operations to
Mumbai, Delhi and Chennai. In 1989, J M Pillai, a Singapore based NRI
businessman along with the Groupe Danone acquired Asian operations of
Nabisco, thus acquiring controlling stake in Britannia. Later, Groupe
Danone and Nusli Wadia took over Pillai’s holdings.

EVOLUTION OF BRITANNIA :

THE STORY THUS FAR . . .

1892 - A humble genesis was made to manufacture biscuits in a small
house in Central Calcutta, with an investment of Rs.295.

1897 - The business was acquired by Gupta brothers who moved

operations to Dum Dum in Calcutta under the name of V.S. Brothers.

1918 - Mr C. H. Holmes, an English business man, partnered with Gupta

Brothers. Britannia was incorporated on the 21st of March 1918 as a
public limited company under the Indian Companies Act VII of 1913.

1921 - Britannia obtained priority certificate to import new machinery. It

became the first company east of the Suez Canal to use gas ovens.

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1924 - New factories were established in Mumbai and Calcutta. Britannia
became a
subsidiary of Peek, Frean & Company Limited, a leading biscuit company
in UK.

1935-45 - During World War II Britannia diverted 95% of its production for
manufacturing ‘service biscuits’ for soldiers.

1954 - High quality sliced and packaged bread was pioneered and
launched in Delhi.

1979 - On 3rd October, the Company was re-christened from Britannia

Biscuit Company Limited to Britannia Industries Limited.

1983 - Sales crossed the Rs. 100 crore milestone.

1992 - Britannia celebrated its Platinum jubilee and launched `Little

Hearts’.

1993 - The Wadia Group acquired a stake in ABI Holdings Limited (ABIH),
United
Kingdom and became an equal partner with Groupe DANONE in BIL. Brand
‘50-50’ was
launched.

1997 - ‘Eat Healthy, Think Better’ became the new corporate mantra.
Britannia entered the dairy business. ‘Tiger’ biscuits were launched. ‘Jim
Jam’ and ‘Chekkers’ were launched.

2000 - Forbes Global ranked Britannia among the Top 200 small
companies. Britannia was ranked No.1 food brand of the country.
Britannia Lagaan Match was India’s most successful promotional activity
of the year.

2002 - Britannia formed a joint venture with Fonterra, the world’s second
largest dairy
company and Britannia New Zealand Foods Private Limited was born.

2005 - Brand Tiger’s re-birth was marked by the slogan ‘Swasth Khao,
Tiger Ban Jao’, which became a popular chant. Britannia launched
‘Greetings’ a range of assorted gift packs. Britannia ‘50-50 Pepper
Chakkar’ was launched.

2007 - In a survey conducted by AC Nielsen ORG-Marg and published in

the Economic Times, Britanniawas rated the No.1 MOST TRUSTED FOOD
BRAND. It also ranked as No.1 Brand in Metros across all categories.

2007 - Britannia Industries formed a joint venture with the Khimji Ramdas
Group and acquired a 70 per cent beneficial stake in the Dubai-based

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Strategic Foods International Co. LLC and 65.4% in the Omanbased Al
Sallan Food Industries Co. SAOG.

2008 - Britannia launched Iron fortified ‘Tiger’ biscuits, ‘Good Day Classic
Cookies’, Low Fat Dahi and renovated ‘MarieGold’.

The story of one of India's favourite 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 mechanised 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'.

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Britannia strode into the 21st Century as one of India's biggest brands and
the pre-eminent food brand of the country. It was equally recognised for
its innovative approach to products and marketing: 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. And
millions of consumers will savour the results, happily ever after.

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 BRITANNIA BRAND TIMELINE

Launched Brand Name

Over 50 Years Old Marie

Over 40 Years Old Milk Bikis

1986 Good Day

1993 50:50

1997 Tiger

1998 Nutrichoice

2002 Treat

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BRITANNIA PRODUCT LAUNCHES

2003-04 Good Day Coconut

Timepass Nimkee

Duet Treat- Strawberry & Vanilla

Duet Treat- Orange & Chocolate
2004-05 Jam Treat- Orange
Cup Cake
Pineapple cake
Chocolate Cake
Rusk

Tiger Cream- Kesar Kulfi

2005-06 Tiger Cream- Rose milk
Marie Gold Doubles
50-50 Paper Chakkar
Greetings

Chota Tiger
2006-07 Tiger Cream- Chocolate
50-50 Chutkule
Nutri Choice Digestive
Nutri Choice Sugar Out

Tiger Banana
Good Day Classic Cookies
2007-08 Good Day Jambo
Pure Magic Cookies
Daily Fresh Dahi
Cheese Slimz

Tiger Cream- Butterscotch

Tiger Cream- Strawberry
2008-09 Tiger Cream- Pineapple
Nutri Choice 5 Grain
Cheese Garlic & Multigrain Bread

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 Berry Cheery Cup Cake
Eggiess Cake

BRITANNIA OVERSEAS :

Exports

• USA
• UAE
• Qatar
• Bahrain
• Ghana
• Saudi Arabia
• Kuwait
• Singapore
• Oman
• Seychelles

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Britannia in the Middle-East :
Britannia Industries Limited formed a Joint Venture with the
Khimji Ramdas Group, one of the largest and the most respected business
conglomerates in the Middle East. Britannia and its Associates have
acquired a significant stake in Dubai based Strategic Food International
Co. LLC and Oman based Al Sallan Food Industries Co SAOG. The two
companies are key regional players in the biscuits, wafers and cookies
segment in the GCC markets and export their products across the world.
Strategic Food International Co. LLC (SFIC) is one of the largest biscuit and
wafer manufacturing companies in the Middle East. An ISO and HACCP
certified company, SFIC is also a proud winner of the Dubai Quality
Appreciation Certificate. It offers a wide spectrum of products under the
brand Nutro, which is a leading biscuit brand in the Middle East.

Bakers Pride :

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Al Sallan Food Industries Co is one of the foremost companies for the
production of cookies, rolls and chocolates. The products are well known
under the brand name of Baker's Pride.

PLANT LOCATION :
Britannia's plants are located in the 4 major metro cities – Kolkatta,
Mumbai, Delhi, and Chennai. A large part of products are also outsourced
from third party producers. Dairy products are out sourced from three
producers - Dynamic Dairy based in Baramati, Maharashtra, and Modern
Dairy at Karnal in Haryana and Thacker Dairy Products at Howrah in West
Bengal.

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BRITANNIA LOGO:
Britannia had spent 0.1 million US$ to hire Paris based designer
Shombit Sen Gupta to create a logo and packaging design. The logo had
three objectives:
 Give consumer reassurance that it was a trusted and familiar brand.
 Britannia has the ability to change.
 It had to be appropriate to the business the company was in.

The logo consists of the company’s name and slogan, “Eat Healthy
Think Better”. The Hindi rendition is “Swastha Khao, Tan Man Jagao”. The
corporate statement “Eat Healthy Think Better” captures the Indian
concept of the unity of mind and body.

The logo has three colours red, white, and green each having its
own significance. Colour Red denotes Energy and Vitality. White denotes
purity. Green stands for Nutrition and Freshness. The strike communicates
Innovation and Futuristic Power of Britannia.

Today, Britannia is the largest biscuit and bakery company in the

country with the daily sales turnover of over Rs. 8478 million. It is the
market leader in the 1.3-million tonne Indian biscuits industry with a 60%
share. It has maintained market leadership with a 48% value market
share in the organized sector.

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
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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.

BOARD OF DIRECTORS
Name Designation

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 Mr. Nusli Neville Wadia Chairman
Ms. Vinita Bali Managing Director
Mr. A.K.Hirjee Director
Dr. Ajai Puri Director
Mr. Avijit Deb Director
Mr. Jeh N Wadia Director
Mr. Keki Dadiseth Director
Mr. Nasser Munjee Director
Mr. Nimesh N Kampani Director
Mr. Pratap Khanna Director
Mr. S.S.Kelkar Director

MANAGEMENT HIERARCHY

Vision :
To dominate the food and beverage market in India with a
distinctive range of “Tasty Yet Healthy” Britannia brands.

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Mission :
To dominate the food and beverage market in India through a
profitable range of “Tasty Yet Healthy” products by making every Indian a
Britannia consumer.

Short-term Objective :
 To improve image to shareholders.
 To improve internal processes and controls.

Long-term Objective :
 To be the lowest-cost producer in the market.
 To become largest volume player in the bakery industry.

Distribution Strategy :

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Basic Strategies :
 New product development
 New market development
 Outdoor promotion
 Rural thrust
 Cost management

Quality Policy :
 Customer Satisfaction
 Total quality management
• Continuous up gradation of technology
• Improvement in processes
• Focus to meet emerging needs of the customers
• Mutually dependent lasting relationship with co-packers, associates
and suppliers.
 Environment responsibility
 Development of human resources
 Improving skills and knowledge

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• Generating motivation to excel
• Installing a sense of pride
• Commitment towards quality

Quality Objectives :

 Reduction in customer complaints

 To start documentation of market returns dealer wise
 To empower the workmen on individual work area to ensure that only
quality product are passed on the next page of production.
 Continuous training for the development of human resources.
 To minimize the accident level.
As part of the growth strategy, the company always try to build on
the values of brand "Britannia" by aggressively pursuing tasty yet healthy
offerings of mass appeal and also launching a host of affordable products,
which would help rejuvenate the mother brand and drive category
consumption.

GLOBAL PARTNERS :
The Wadia Group of India along with Groupe Danone of France, are
equal shareholders in ABIL, UK which is a major shareholder in Britannia
Industries Limited. GROUPE DANONE is an International FMCG Major
specializing in Fresh Dairy Products, Bottled Water and Biscuits/Cereals.
One of the World leaders in the food industry, these are some of the
laurels it possesses:

• 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

Through its three core businesses (Fresh Dairy Products, Beverages and
Biscuits and Cereal Products), GROUPE DANONE is committed to
improving the lives of people around the world by providing them with

33
better food products, a wider variety of flavors and healthier pleasures. Its
dominant position worldwide is based on major international brands and
on its solid presence in local markets (about 70% of global sales come
from brands that are local market leaders).

GROUPE DANONE is recognized for the dynamism and strength of its

brands:

• Danone: the leading brand worldwide for Fresh Dairy Products;

DANONE represents almost 20% of the international market.
DANONE is present in 40 countries worldwide.
• Evian: the best selling mineral water brand, with 1.5 billion bottles
sold every year. Present in the 5 continents, in 125 countries.
• LU: the second brand worldwide, the first biscuits brand of GROUPE
DANONE, which represents almost the half of the sales for the
Biscuits and Cereal Products division. LU is mainly present in
Western Europe.
• Wahaha: the leading brand for refreshing still water (water, ready
made tea, fruit juices). The brand is one of the most popular in
China, with more than 1.5 billion liters of water sold each year. Its
name means "the child who laughs".

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35
Business Today, Special, 15 June 08, ranks Britannia Industries Limited
27th in its list of India's Fastest Growing Large Companies
(Revenues More Than Rs.2000 Crores)

BUSINESS PROFILE:
Britannia core businesses constitute of Bakery and Dairy products.
Bakery products account for 90% of the revenues and include Biscuits,
Bread and Cake & Rusk. Dairy products contribute to 10% of Britannia’s
annual turnover of Rs13.38bn. Throughout its existence, Britannia has
operated on the principles of providing products to the consumers that are
healthy and tasty. This is brought about by the use of high quality
ingredients with a strong focus on ‘naturalness’ and modern
manufacturing practices. The company today has a wide range of bakery
products in the biscuit, bread and cake segment. It has trimmed down its
wide product portfolio by reducing the products from 35 to around 25 and
began to focus on value-added instead of low-margin products.

36
 BIL (Britannia Industries Ltd.)

Bakery Products Dairy

Products
(90% revenue contribution) (10%
revenue contribution)

BIL (Britannia Industries Ltd.) has decided to focus on seven core

brands in the biscuits and bakery category. The brands included Good
Day, Tiger, 50-50, Snax, and the Cream Treat brands, among others.
With the launch of Tiger brand, it has taken a plunge in the low-end
category, taking competition head on with Parle, which is the leader in
this segment. The company has also diversified within dairy and bakery
products to enter the butter, cheese and ghee markets. The portfolio was
expanded with the launch of butter, pure flavored milk in tetra packs and
UHT milk.
Britannia has built an enviable retail distribution network, which
services 400,000 retail outlets in 2,200 towns with the help of 2,500
distributors. The company is aggressively expanding its network with a
bias towards the rural markets Recently, in the ethnic food segment, the
company introduced a new range of traditional ‘namkeens’ in Mumbai
called Britannia Snax. The new range includes seven varieties of
traditional namkeens like 'Bikaner ki Bhujia' and 'Rajasthani Alu Bhujia' in
a price range of between Rs 5 and Rs 20.The company is in the process of
setting up a Greenfield Biscuit Project in Uttaranchal to augment its
production capacity, entailing an investment of about Rs 55.2 crore. This
plant will have capacity to produce over 45,000 tonnes of two or three

37
varieties of biscuit per annum.So after over seven decades of being
inseparable part of life in India, Britannia is now set to usher its customers
into a healthier and tastier future.

PRODUCT PROFILE

1. Tiger

38
Tiger, launched in 1997, became the largest brand in Britannia's
portfolio in the very first year of its launch and continues to be so till
today. Tiger has grown from strength to strength and the re-
invigoration in June 2005 and more recently, in Apr 2008 has further
helped bolster its growth in the highly competitive glucose biscuit
category.

Tiger is a Glucose biscuit, which comes with the added goodness of

wheat and milk. It is for modern mothers who play an enabling role
for their children to compete in today's world and thus want the
best. Now Tiger Glucose has been fortified with "Iron Zor" with an
attempt towards addressing the Iron Deficiency crisis the children of
India face.

Over the years, Tiger has become the mass-market face of Britannia
symbolising fun and energy in both urban and rural India, and
transcending glucose biscuits.

Tiger Coconut : Delicious Coconut Flavoured Energy Biscuits,

launched in 2001

Tiger Creams : Was Introduced in 2002 at just Rs 5 per pack. Tiger

Cream is now available in Orange, Elaichi, Chocolate, Pineapple,
Strawberry and Butterscotch flavours, and promises to bring more
fun and more energy to children across the country.

Chota Tiger : Is an extension of brand Tiger launched nationally in

May, 2007. It is mini sized poppable glucose biscuit with coloured
sugar sprinkling. It comes in two variants: Milk Sparkies and Choco
Sparkies

Tiger Banana : Purposefully taking forward the credo of 'Eat

Healthy, Think Better ', Britannia launched a new variant under our
power brand TIGER - TIGER BANANA - power packed with IRON ZOR
& and with the delightful taste of banana.

39
 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.

2. Good Day

Britannia Good Day was launched in 1986 in two delectable avatars

- Good Day Cashew and Butter. Over the years, new variants were
introduced - Good Day Pista Badam in 1989, Good Day Chocochips
in 2000 and Good Day Choconut in 2004.

This rich cookie enjoys a fan following of consumers across all ages,
loyal to the brand promise of a great taste, evident from the visibly
abundant ingredients. Good Day is among the fastest growing
brands in Britannia's portfolio and it has been the leader in the
cookies category ever since its launch. The brand is synonymous
with everyday treats that infuse happiness into people's lives.

After two decades of magnificent success; it was time to give the

nation yet another reason to have a good day. Abundance,
goodness, indulgence and now unrestrained joy - that is the
message of this new campaign.

The new TT ad is the uncontrollable expression of the ticket

collector's happiness and joy that is stimulated by consumption of
the cookie, that spreads cheer amongst the people around him
creating an atmosphere of shared joy that's unorchestrated and
straight from the heart. The celebration was taken to the IPL as
Good day cheered along with a million cricket fans in the stadiums,

40
 each screaming and proclaiming "Ho gaya re Good Day". The
dazzling brilliance of this endeavour, the contagious rhythm needs
to be lived and spread through the nation, making 'Iska toh ho
Gaya Re Good Day' a part of the common lingo and a way of life.

Good Day truly believes laughter and happiness are infectious, it

transcends race, caste creed unifying humanity in an inclusive
emotion.

The brand perseveres to infuse cheer, hearten the nation and

enliven lives. With its rightful place on the front page of The Times
of India, Good Day gifts the nation a priceless treasure, that of
spreading JOY!

3. 50-50

With a brand name like 50-50, can the product be anything but fun?
Launched
in 1993, 50-50 belongs to the family of crackers and is considered the
"very very tasty tasty" snack.

Britannia 50-50 is the leader in its category with more than one-third of
market share. The versatile and youthful brand constantly aims to
provide a novel and exciting taste experience to the consumer. As a
result, in 2001, the delicious Maska Chaska was launched as a variant of
the original brand and became an instant success.

41
4. Bourbon

Thick, rich and delicious chocolate packed between two crunchy

chocolate biscuits, topped with sugar crystals - presenting, the
original Bourbon, from the house of Britannia.

India's first and favorite Bourbon's sweet adventure began in 1955.

Since then, Bourbon lovers across the country have been caught
opening this chocolate couplet, licking the cream, and nibbling at
the melt-in-your-mouth biscuit, bit by bit. Some have been
witnessed chomping it whole, at one go. Some have been noted to
alternate it with sips of coffee; others team it with lots of gossip and
gupshup, while a few have been observed enjoying it with a book.
And some have been seen reluctantly sharing their Bourbon.

Whatever the occasion, wherever the hangout, Bourbon makes for

great company. You can grab your very own Nano Pack or a Pocket
Pack. The Hangout Pack is just right for chilling with friends. Take
along a Party Pack for... yes, a party! And the Gift Pack will surely
win you a few brownie points!

5. Rusk

42
 Britannia launched its rusks in the year 2005. In a Market full of
unbranded players, Britannia rusks have stood head and shoulders
above the rest in terms of sheer quality .They are made from the
finest ingredients and baked with care as they are twice as crisper
as and tastier than ordinary rusks. The communication for this
mouthwatering offering is aptly “Enliven your spirits with Britannia
rusks”.
6. Cakes

Britannia entered the cake market in the year 1963 and is the
leading player in the market. Britannia Cakes range is divinely
scrumptious and has Bar Cakes, Chunk Cakes and Cup Cakes which
were launched in 2005. Bar Cakes are available in variants that
include Fruit, Butter Sponge, Chocolate, Pineapple, Milk, Vanilla
Chocolate and Orange. Apart from being delicious, these snacks are
packed with healthy ingredients making them wholesome &
delightful.

Britannia cup cakes come in vanilla and orange and mixed fruit
flavors whereas chunk cakes come in fruit flavor.

Britannia has recently launched for the 1st time ever in the
packaged segment Veg Cakes, pure and eggless. These Vegetarian
Cakes are soft, juicy and filled with real fruit bits which can be
enjoyed just by themselves or mixed with a variety of ingredients to

43
 make quick, delicious desserts. With zero cholesterol and
hygienically packed for a shelf life of 3 months, they are a more
wholesome and healthy option than other sweet dishes available in
the market.

Britannia Veg Cakes come in Twisty Fruity avatar and are priced at
Rs 15/- for a 75 gram pack. They enjoy a 3 month shelf life.

7. Marie Gold
Britannia's oldest brand enjoys a heritage that spans the last 50
years - and going strong. In a market swamped with me-too
products and where even the name 'Marie' has become generic,
Britannia Marie Gold has maintained its stronghold. Today, the ever-
popular Marie Gold is synonymous with the 'Tea Time Biscuit'. Its
taste, crispiness and lightness make it a must for every tea break. It
is the #1 brand in its category by a long shot.

8. Treat

44
 As a move to consolidate all the individual Cream Treat offerings
under a single umbrella, Britannia launched Treat in 2002. Treat has
a range of tasty delights for all kids with yummy creamy treasures
within the biscuit shells. The kids have always relished unraveling
the irresistibly delicious creams hidden inside the biscuit Britannia
Treat offers a wide variety of flavors, such as the Elaichi, the Fruit
Flavored Creams such as Orange, Pineapple, Mango, and
Strawberry, the Jam Filled Centers under the Jim Jam range, and the
Duet Range (biscuits with two flavours of cream between three
layers of biscuit) comprising Strawberry Vanilla and Duet Strawberry
Chocolate.

Britannia Treat has now launched yet another mouth watering

delight under its umbrella. The delicious Fruit Rollz take the Treat
brand beyond the cream biscuits and provides yet another lip
smacking delight to its consumers!

Fruit Rollz are soft rolls filled with the goodness of real fruits, and
provide a healthy yet scrumptious treat to our 'loveable devils' Treat
also introduced its naughty and adorable brand mascot FUNTOOSH
whose primary occupation is mischief! FUNTOOSH is the guy who
will pull off any trick to make sure he gets to eat his Britannia Treat.

9. Milk Bikis

45
 Kids may dislike drinking milk, but they love Britannia Milk Bikis!
Milk Bikis has been trusted by mothers as a source of growth energy
of milk and their loyalty to the brand has made it an integral part of
their children's nutrition regimen.

In 1996, Milk Bikis launched a variant called Milk Cream. These

round biscuits come with smiley faces and are full of milk cream
that makes them very popular with children. Milk Cream also
promoted the idea of 'eating milk' in a yummy way, which makes
mothers happy as well.

To keep pace with the demands of the new generation and to bring
milk nutrition to the masses in a delightful form, Milk Bikis, went one
step further in the last quarter of 2006 in providing not just energy
but ‘developmental fuel’ for children. With a unique and attractive
honeycomb design and an enhanced product experience, the new
biscuit is now fortified with SMART NUTRIENTS – 4 vital vitamins,
iron and iodine, proven to aid mental and physical development in
growing kids.

Unique features of Britannian :

If you think Britannians are extraordinary individuals who are

passionate about everything they do…create inspiration through
everything they do…and succeed in everything they do…you’re probably
right. Britannians are hand-picked for a singular purpose…to perpetually

46
ensure Market Leadership and generate exemplary performance in every
function.

Britannians exhibit the following leadership behaviors (we fondly call

BULBs – Britannia Universal Leadership Behaviors) :

• Integrity
• Team Orientation
• People Development
• Learning Orientation
• Customer Orientation
• Quality Orientation
• Drive for Results
• Entrepreneurial Spirit
• System and Process Orientation
• Communication

COMPETITORS :

Other Players

47
• HLL,
• Bisk Farm,
• Anmol,
• Elite,
• Cremica,
• Dukes,
• Anupam,
• Craze,
• Nezone
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.

48
Major Market Share Holders – Organized
Sector

49
Project Magnum

50
Overview
BRITANNIA INDUSTRIES LIMITED had launched a pilot project, which was
first of its kind, in the heartland i.e. the rural markets of Uttar Pradesh. This
project is the biggest project undertaken by Britannia ever in the rural markets.
Rural markets according to the government of India are those areas that have a
population of less than 400 persons/square kilometer and more than 75% of the
people are involved in Agriculture. The biscuit market situation in the rural
market is such that Parle is considered to be a god in these markets. Britannia is
a market leader in the urban market but it has a comparatively low market
share in the rural markets. Project MAGNUM was dedicated to take the
awareness of the products of Britannia to the next level. The impact areas of the
project were considered to be the retailers and the wholesalers. The customers
for Britannia would be the wholesalers and retailers. The wholesalers sell the
products only to the customers whereas the Retailers sell the products to the
customers as well as the consumers.
The consumers in the rural markets are considered to be price sensitive as they
have less disposable income and look for products that are economical.
However, studies have revealed the fact that the consumers in the rural markets
have started looking for value and are no more too much price sensitive.

Objective
The main objective of the Project MAGNUM was to increase the sale of Britannia
Industries Limited products by increasing the awareness of the products in the
rural markets of Uttar Pradesh. By the end of this project we have learned the
Britannia Industries Limited’s way of working in the rural markets. I was
recruited as a summer trainee under this project and was called as promoter.

Strategy
The strategy was to focus on product’s features and benefits and thereby
promote the products in the rural markets of Uttar Pradesh. The project targeted
the top 20% RPDs (Rural Preferred Dealers) of a city.
There were around 40 promoters in the state of Uttar Pradesh. Each of the
promoters was allotted an area. I was allotted the district HARDOI that comes
under the eastern UP region. The HARDOI district had around 30 RPDs and I
had 7 of them.

51
Flow Of Stocks
URBAN

1. FACTORY
2. CFA(CARRYING AND FORWARDING
AGENT)
3. AUTHORISED WHOLESALER/
DISTRIBUTOR/ DEALER
4. RETAILERS AND WHOLESALERS

RURAL
1. FACTORY
2. CFA
3. SUPER STOCKIST
4. RPD(Rural Preferred Dealers)
5. WHOLESALERS & RETAILERS

The flow of stocks in the rural markets occurs in the above-described

manner. The stocks flow from the company to the carrying and
forwarding agent. Thereafter they are taken to the super stockiest.
Generally there is 1-2 super stockiest per district. There onwards the
stocks are taken to the RPDs (Rural Preferred Dealers). These RPDs
supply the stocks to the local wholesalers and the retailers. Britannia
provides software named UDAAN to its super stockiest so as to track the
sales. The software keeps a record of the daily sales and the stock
supplied to each RPD.

Role Of Promoters
We as promoters were expected to work on the top 20% RPDs of the
district allocated to us. Britannia had a product portfolio for the rural
markets. They had launched low price units such as Tiger Glucose (Rs2),
Goodday Butter (Rs 5) and Goodday Kaju ( Rs 6). These were the main
products that we had to promote as these products were low priced and
the people from the rural areas have low disposable income and thus
have a tendency to buy low priced units.

We used to start early in the morning at around 8:00 AM. We went to the
super stockiest to collect the POSM (Point of sales material). The POSM
consists of poster, tape, toran, sticker, banner, basket etc. Thereafter we
52
collected the names of 10 retailers and 2 wholesalers who were well
established in the market from the super stockiest. We used to go to the
retailers before 12:00 PM. The reason for visiting the retailers before
12:00PM was that in the rural areas the markets close in the afternoon
and they open up again at around 3:00 PM. At the retailer shops we
created visibility of the Britannia products by the help of the POSM
provided to us. We also did sampling of the products of Britannia and
convinced them to keep the products in a proper shelf. We were also
provided with backing sheet and the madhurification tapes. We convinced
the retailers to provide a counter somewhere in the front portion of the
shop. We laid down the backing sheets and pasted the madhurification
tapes at the corners of the counter. While displaying the POSM we took
care that it is displayed at a place from where it is clearly visible to the
customers visiting the shop. We promoted the Brands Tiger and Goodday.
Thereafter we started again in the noon at around 3:00 PM
and visited the two wholesalers. At the wholesalers we used to spend
around 2 hours at each of them. The retailers from the other peripheral
regions of the town were the customers of these wholesalers. We did the
sampling of the Britannia Products to them and convinced them to buy
Britannia products and keep these products in their shops.
We also provide them with the POSM at their shops and created
visibility of the Britannia products.
Here I would like to point out that I had to promote only three brand of
LUP (low unit packet) i.e.
TIGER GLUCOSE (38gm, Rs.2/-)
TIGER CREAM (74 gm and 80 gm, Rs.5/-)
GOODDAY BUTTER (54 gm, Rs.5/-)

We used to collect 5 samples of each of the above stated SKUs. I was

given a receipt from Britannia and I used to get it filled by the RPD. We
also had a sheet where we used to write the problems and suggestions
given to us by the retailers and the wholesalers. At the wholesalers we
were directed to target at least 20 retailers.
At the end of every week I had to send the promoters daily record of all
RPD’s allotted to me to the supervisor. At the end of each month
promoters were supposed to track the sales of the districts allotted to us
and thereafter send it to the supervisors.

53
My Learning Experience
In Britannia Industries Limited after working as a promoter I
gained a lot of knowledge of the FMCG sector. I came to know
Britannia Industries Limited’s way of working in the rural
markets. Now I have an understanding of how the flow of
stocks occurs in Britannia. I also have an idea of how to
promote sales of a product.
Britannia Industries Limited has a proper channel and follows a
hierarchy pattern as represented below:

I also learned about the relationship of whole sellers and

retailers and how to create a proper positioning and
madhurification of our brand. In the rural markets and another
problem was that the people do not understand English so we
had to be prepared professionally to handle people and talk to
them.
Britannia industry Limited was the first to use madhurification
tapes in the biscuit industry to promote
The Temporary type of point of sales sales.

54
 POSM (Point of Sales Material)

The point of sales material generally has three elements, i.e. ,

1. Temporary type
2. Semi-Permanent type
3. Permanent type
material has an expiry life of about 2 weeks at the outlets. It
announces brand specific communication. We had to focus
mainly on the GOODDAY and TIGER brands of Britannia and
thus we were provided with temporary point of sales material
of these brands. The semi- permanent type of point of sales
material has an expiry life of about 6-8 weeks at the outlets.
These highlight the presence of Britannia and Britannia brands
in the outlet. The third type of point of sales material has an
expiry life of at least one year at the outlets.

Elements of Point of Sales Material

Temporary Type Semi-Permanent Type Permanent Type

Sticker
Paper Flange
Poster
Wobblers
Danglers
Streamer

55
Elements of temporary visibility such as sticker, Paper flange,
Poster, Wobblers are pre-gummed and thus can be stuck on
the retail and wholesale shops at appropriate locations. The
Point Of Sales Material such as Dangler and Streamer are
hanging type and are hung at appropriate locations in the
outlets.

Temporary Type Semi-Permanent Type Permanent Type

Expected Life at Outlet -2 weeks Expected Life at Expected Life

outlet-6 to 8 weeksat outlet-at
least one year
Announces Brand specific Highlights presence Establishes
communication of Britannia and Vonnect and
Britannia brands in dominance in
the outlet the market
In- store In-Store Window In-store
Poster,Sticker,Wobblers,Danglers kit ,shelf Beams,
talker,flanges(paper) Pillars,counters
etc etc.
Out-store Toran,Streamers Out-Store Banners Out-store
Dealer
Boards,Beams,
Pillars,Flanges

Norms of Placement of The Point of Sales Material

We were suggested certain norms of placement of the Point of

sales material. Point of sales material comes at a cost and we
were given instructions of its placement in order to properly
utilize it.

DO’s
Place near the product or cash counter
Place only if there is right space in the outlet.

56
We also had to carry material like scissors, cello tapes, blade
etc. in order to properly display the point of sales material.

Madhurification
Madhurification is a term used in terms of point of sales
material. It generally refers to the use of certain material which
helps in the beautification of the shops.
The elements of madhurification include shelf kit which includes
shelf strips and backing sheet. It also includes Banners and
Torans.

Elements of Madhurification

Shelf Kit Banners and Toran

(Shelf strips and Backing Sheet)

Importance of Madhurification

1. Demarcates Category
2. Highlights our Products
3. Brand Britannia Visibility

Britannia was the first ever biscuit company to use

Madhurification.

57
Products which were promoted:

Good Day Butter:

1. Good Day Butter is the only premium brand that is available at only
Rs 5/-.
2. Good Day is the no. 1 brand among cookies in India.
3. Good Day is the best selling biscuit in the urban areas.
4. Good Day appeals to young and old alike.
5. The quality of Good Day is much better compared to its
competitors. It is much more crispier and has a rich butter taste
(Use the word “makhan”).

Tiger Creams Orange:

1. Tiger Creams has a shiny metal packing (“chamak”) that is very
appealing to the customers.
2. Tiger Creams has the vital element of iron, which is very important
for nutrition. It keeps mind and body stronger.
3. It is available in both round and square packs.
4. In the round packs, every biscuit in the pack has a different design,
which is very appealing to kids.
5. The square packing doesn’t break as easily as the round packs.

Tiger Glucose:
1. Tiger Glucose has the essential element of iron which is missing in
Parle and Sunfeast.
2. The iron content helps to keep mind sharper and body stronger.
3. The iron content is equal to one cup of spinach (“ek katori jitna
paalak”) which is essential for nutrition. Kids generally don’t like
spinach. So, mothers will prefer to buy Tiger Glucose instead of
other products. The earlier problems of hard/highly sweet quality of
biscuits have been rectified in Tiger Glucose now.

58
 Wall Painting Plan

 The main focus of the wall painting activation plan is in the districts
falling in the Central and Eastern Parts of UP, as identified under
Project Magnum. However, a relatively smaller amount of wall
painting has also been calculated for the districts in Western UP, as
a way of kick starting activities therein.

 The Super Stockist regions have been divided into various bands by
comparing the average Parle sales to the average Britannia sales for
the districts.

 On the reasoning that a lower Parle: Britannia ratio would entail the
prospect of a more promising market, or a market where initial
inroads have already been made, a larger amount of wall painting is
prescribed for such bands with lower Parle:Brit sales ratio. The
objective here is to expand in / penetrate the markets showing
promising returns and then expand more proactively in the other
regions through activations in later phases.

 The column showing the total value of Parle+Britannia sold in a

district, in general, would give an indication of the size of the
market. Positive corrections have been added to the prescribed
amounts of wall paintings per RPD in case the total value of
Parle+Britannia goods sold is seen to be large and negative
corrections are done if the value is low. (See Chart on Right Side of
Sheet 2)

 Looking upon the prescribed wall painting amount per RPD from the
chart and multiplying it by the number of RPDs for the Super
Stockist have arrived upon the numbers for wall painting for each
Super Stockist region.

 The wall painting plan arrived at above is for each SS region. Each
SS territory consists of a number of RPDs at various towns. The wall
painting calculations for each RPD town are shown in Sheet 1.
These are arrived upon by splitting the total wall painting amount

59
 arrived at for each SS in Sheet 2, into all the RPD towns for the SS,
based on the value of Parle+Brit sales in each RPD town. Therefore,
an RPD town with a higher Parle+Brit would receive a higher
amount of wall painting. (The Parle+Brit value is also a reflection on
the population of the town, which again is an indicator of the
market size.)

 For each RPD town, the square feet wall painting plan has then
been divided in a simple ratio of 60:40 for Tiger and Good day.

Avg. Avg. Total Wall Wall

BIL Parle: Parle+ Painting Painting Wall Painting

(Tiger
(lakhs Avg. BIL Sq. Ft. 60%) Sq (Good Day
) BIL (lakhs) Plan Ft 40%) Sq Ft

0.47 4.29 2.47 434 260 174

0.30 3.38 1.30 228 137 91

0.42 11.80 5.42 954 573 382

0.85 14.16 12.85 2260 1356 904

0.36 4.19 1.86 327 196 131

0.23 12.89 3.23 569 341 228

0.53 26.47 14.53 2556 1534 1022

0.37 5.39 2.37 417 250 167

0.55 29.27 16.55 2911 1747 1164

0.27 14.80 4.27 751 451 301

0.16 6.22 1.16 204 123 82

0.10 10.01 1.10 194 116 77

0.79 7.61 6.79 1194 717 478

60
SAMPLING – Sampling also comes in the promotional activities.
In the sampling part we used to do sampling to the retailers at the
wholesalers point. In this part we sampled those retailers who come
from the rural part of that town so that they can purchase the
biscuit, which we were promoted. We sampled those retailers by the
help of the samples, which were being provided by the RPD.

QUALITATIVE CHANGES – Taste is the base to know that

what customer/consumers would like to purchase because if the
quality and the taste is good or better than the other biscuit than
the consumer will switch over on the good one.
In middle of the Project Company make some quality (taste)
changes in their products on the basis of the suggestion, which is
given by the promoters. Company made some qualitative and
quantitative changes like in TIGER GLUCOUSE (low-price small
pack). Company increases the number of biscuits.

61
 SWOT ANALYSIS OF BRITANNIA
Strength
• Fulfill 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
Opportunities
• Increase economy of India
• Generate employment
opportunity
• Good quality of Goods
• Provide competition to
foreign companies
• Improve living standard
• Provide goods to nation at
cheaper rate
• Inflow of foreign reserve
and funds for the govt.
(taxes)
Weakness
• Decreases nutritional value
• Increases the cost of food
product
• Industry and technology
requires high investment
• Regular usage of processed
food can cause alteration
in health
Threats
• 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
62
WHAT IS RURAL MARKRT-

According to the census of India village with clear surveyed boundaries

not having a municipality, corporation or board, with density of population

not more than 400sq.km and with at least 75 per cent of the male

working population engaged in agriculture and allied activities would

quality as rural. According to this definition, there are 6.38,000 villages in

the country. Of these, only 0.5 cent has a population above 10,000 and 2

per cent have population between 5,000 and 10,000. Around 50 per cent

has a population less than 200.

Furthermore, for FMCG, any territory that has more than 20,000

populations is rural market. So, for this, it is not rural India, which is

rural. According to them, it is the class-II and III towns that are rural.

According to the census of India 2001, there are more than 4,000 towns

in the country. It has classified them into six categories-around 400 class-

I towns with one lakh and above population (these are further classified

into 35 metros and rest non-metros), 498 class-II towns with 50,000-

99,999 population, 1,368 class-III towns with 20,000-50,000 population,

1,560 class-IV towns with 10,000-19,999 population. It is mainly the

class-II and III towns that marketer's term as rural and that partly

explains their enthusiasm about the so-called "immense potential" of rural

India.

Evaluation of Rural Market-

63
Advantages-

1) Growing Income- Due to increase in the productivity in Agriculture

the per-capita income is increasing.

2) Growing Awareness- Because of the easy accessibility of information

medium (Radio, Television, Newspaper, communication mediums and

commitments to the near by town). There level of awareness is

increasing.

3) Growing Literacy Rate- Since due to the efforts of the government

and private institution in rural India the rate of literacy is increasing and

this initiated them to know the product ,they use. 1) Virgin Market- A

bigger chunk of the rural market is still virgin .So it is the best

opportunity for the companies to take advantage of entering first.

4) Less Competitors – In rural market the number of big and strong

competitors is very less so the promotion of a product is not much

difficult.

5) Potential Market- The potential of the rural market is very high and

the products which demand has been nearly saturated in the urban

market can move towards the rural market.

6) Alikeness – Since rural market also like the same quality of products

as in the urban market .So the companies which are going to the rural

markets need not to go for renovation on a bigger prospect. But if still

innovation is necessary only a minor change can do it.

7) Support- Since every government is abide by the development of the

rural areas .so if a new company going to the rural market it also get

support from the administration of that area .

Disadvantages –

64
1) Volatility- Since rural market is in the transisation phase of growth

.So it is not assumed stability yet. This has made it volatile in nature. This

results in the fluctuated demand.

2) Trendy – This is the bigger weakness of the rural market and the

consumer in this market is comparatively more trendy (They use the

products which are/were being used by their elders) than the urban

consumer.

3) Unorganized Outlets- In the rural area the outlets are much

unorganized and hence it is very difficult to full-fill the demand of each

and every outlet on time.

4) Physical selling – Since in the rural area only physical selling is

possible and it takes a lot of the and a lot of efforts if a company wants to

deliver the product at the demanded place and in the demanded course of

time and also it takes a huge investment in the logistic.

5) New consumer- In rural market every day new consumers are

getting attaches. So very exact forecasting of the demand is not possible

and the unsatisfied demand of a particular product of a particular

company may result the opportunity for the other company in the same

segment of the products.

6) Price sensitiveness – Rural market is highly price sensitive so the

company visiting in this market must have a good eye on its competitor’s

price list in the same segment of the products.

7) Quantity Oriented – A large part of the rural consumer are Quantity

oriented rather than Quality oriented.

65
8) Personal Selling- Rural marketing is oriented more on the personal

selling because the marketers have to have very close watch and

understand the psyche of the consumer and then act accordingly.

66
Impact of Profect
Magnum

67
RPD-1
Name of RPD- Bhagvan Das Kirana Store
Location- Sandila

At Sandila PRD the dealer M/S Bhagvan Das Kirana Store owns a big shop.
In my point of view he owns approximately 20 agencies at this time. Having
too much agencies he is not able to focus properly on Britannia. Each time
when I visited his shop it will take two to three hours when he gave proper
attention on me. The same condition holds for the whole market. He is not
willing to take the damage claim. There is a large number of shopkeepers who
claim that the damage is not taken by the dealer so they don’t want to sell
Britannia further. This is a big problem in Sandila. Sandila is a big market and
full market coverage is also not there. If marketing is done properly in Sandila
it will give huge sell.

MONTH SALES
April 27845
May 48841

June 52314

68
RPD-2
Name of RPD- Maa Durga Agencies
Location- Shahabad

The RPD at Shahabad is changed in the month of April. The RPD Maa Durga
Agencies is new in the market. If we consider the old RPD the working is not
good. The supply chain is not effective and order processing is very bad. As
the shopkeepers told me that orders are in pending for a week or two. By this
way of working the image of Britannia is adversely affected in the market. The
new RPD is working much better than old one. New RPD markets the
products properly. As the RPD is new we to wait and watch for the results.
There are some damage claim of old RPD which are not resolved till now.

MONTH SALE

April 80413

May 66328
June 78589

RPD-3
69
Name of RPD- M/S Pankaj Kirana Store
Location- Bilgram

The RPD in Bilgram is also changed in last of May. The new RPD M/S Pankaj
Kirana Store is marketing very well. The old RPD is not marketing properly.
He made most of his sale from counter only so full market coverage is not
there. But new RPD is working well on this aspect. There are not such any
problem exists at this RPD.

MONTH SALE

April 10692
May 36649
June 43265

RPD-4

70
Name of RPD- M/S Shyam Kirana Store
Location- Pisawa

The RPD in Pisawa is M/S Shyam Singh Kirana Store. The problem face by
me at this RPD is of samples. As the project head told us that we have to use
the samples which are manufactured after March. But at this RPD samples
available of glucose tiger Rs.2 is manufactured in March and RPD has a good
stock of it. So it is of no use for the sampling purpose. The problem of
sampling of tiger exists at this RPD throughout the project. But in all other
cases the RPD is working well and has a reputation.

MONTH SALE
April 35832
May 56029
June 63435

RPD-5

71
Name of RPD- M/S Vishnu Kirana Store
Location- Shahabad

The RPD at Beniganj M/S Vishnu Kirana Store is a well known shop in the
town. The owner Mr. Vishnu Kumar Gupta has a reputation in the market.
Beniganj is a big market. The problem in Beniganj is that the RPD is doesn’t
want to sale on credit because he purchases on cash basis so he wants to
sale on cash basis. But a big part of transaction in the town is on credit basis.
Due to this the sale is low in the town. The RPD sold its product in more rural
areas but market share in Beniganj town is very low for Britannia. Another
problem is of sampling of tiger Rs.2 pack because this RPD also have the old
stock.

MONTH SALE
April 33996
May 65334
June 54682

RPD-6
72
Name of RPD- M/S Rathaur Medical Store
Location- Sawaijpur

M/S Rathaur Medical Store is the RPD in the Sawaijpur town. The town is
small and developing. There are only 11 to 12 shops in the market. I don’t
have any problem at this RPD. The owner Mr. Amit Kumar is hardworking
businessman and a well known person.

MONTH SALE
April 4045
May 8649
June 10156

RPD-7

73
Name of RPD- Agnihotri Agencies
Location- Roopapur

M/S Agnihotri Agencies is the RPD in Roopapur. The owner Mr. Adesh Kumar
is very cooperative. Roopapur is a very small town with very few shops. The
only problem at this RPD, as the owner told me that there are differences in
number of packs of tiger Rs.2 in a plastic bundle. It varies from 21 to 24, while
the standard number is 24. If there are less packs then it will adversely cost to
RPD. This is a big question mark that who is responsible for this. In all other
cases the RPD is cooperating very well.

MONTH SALES
April 1745
May 3665
June 4265

Total Sales From 7 RPD’s

74
The total sales from 7 RPD’s shows increasing trend throughout the period of project
MAGNUM. This shows the importance of project regarding sale promotion in rural
market.

MONTH SALE
April 194568
May 285495
June 306706

75
 LIMITATIONS
The research was confined to HARDOI Distrist only.

Time was one of the prominent factors with respondents.

 A low literacy level of the RPD’s & Retailers that makes difficult for

us to explain .

 Very low population density, requiring long travels.

 Problem in translating every sentence in their mother tongues.

 Poor access of respondents due to their migration to different places

to do their work.

 Different daily schedules or time table

 Poor communication with female Retailers.

 Tendency among Retailers to flock together and prompt or help

others with responses.

76
 RECOMMENDATIONS

However I am fresher in corporate sector and my knowledge is limited and most of

the decisions are already taken by the Britannia Industries Limited but as
recommendations were asked from me, I have given some points of suggestion to
the management which we found during the training.

 Instead of the larger coverage area the company has many opportunities to
expand their rural l level. Although they are covering large number of
villages and towns but still many more areas are left untouched.

 The Company should consider its inbound logistic for rural markets because
this will make available of the products of the company which is in demand
and shall encourage the sellers to sell or to have a stock of the products as
much as it would be necessary.
 Although BRITANNIA makes a wide range of products for different segment
of markets but still they can make such an arrangement on increase of
number of biscuits in a pack.

 The company should revise its system of communication (Especially in the

rural area) in such a way that could respond the problems of the lower level
(Retailers and Wholesalers) more speedy and could fix the accountability of
each person related to the industry.
 Regional brands and Local brands are giving tough competition in same
market by providing low priced products, so the customer base is also
shifted towards those brands so they need to rejuvenate themselves to face
that competition in the market.

 Company is doing promotional activities for their products but they are not
as strong as other companies do so that they need to take strong steps to
promote their products by using different communication mediums.

 The Company should make a system of speedy solving the problems of

damage returning.
 Company should provide better services to their distributors and their
customer to enhance their good image which is already in the minds of
them.

 The company should also care for the small retailers and wholesalers
because they also constitute a large part in the rural market.

77
 CONCLUSION
By observing and interacting to the retailers and wholesalers I got to conclude that
the appearance of the company in the rural market is good and the selling eagerness
of the products of BRITANNIA INDUSTRIES LTD. is comparatively better than its
nearest competitor except Parle in the same rural market .It means that the brand
awareness is Satisfactory in the rural market. The sales volume of biscuits (Of all
brands) in the rural market is also very good and this shows the potential of the rural
market that can be tapped by the company or a good chunk of it can be converted in
the sales volume of the company Britannia .The price and the size matters to a large
extent in the rural market irrespective to the quality of the products (that’s why Parle
has more number of biscuits of small size and less thickness in a pack). For Ex –The
again and again changing of the numbers of biscuits in the low-price (Rs-2/) pack of
the Britannia Tiger Glucose and very low sales of Britannia GoodDay (Rs-5/) pack.

On the price front of LUP’s (Low Unit Product) it remains Rs. 2, 3, & 5 for long time.
The availability of the product plays a major role. On this aspect Britannia faces a
cut-throat competition from Parle, ITC and Priyagold. In many RPD’s Britannia run
short of availability which causes loss of market share.

I think the main opportunity that Britannia can better exploit in rural market is it has to
maintain a proper supply chain especially at times when Parle is short in the market.
As RPD told me that in past when Parle is short on demand than at the same time
Britannia is already short.
Another point is that in the month of April a candy is free with tiger Rs.2 pack which
increases the demand handsomely. And when it is about to capture the market the
candy is removed and demand goes on diminishing. So there should be a proper
promotional scheme. And the final thing is to convince the retailer because retailer is
the boss in rural market. The product Retailer will make available in the market that
will be sold.

78
 BIBLIOGRAPHY
BOOKS
# Marketing Management by Philip Kotler
# Advertising and Sales Promotion by S.H.H. Kazmi & Satish K. Batra

WEBSITES

# www.britannia.co.in
# http://www.naukrihub.com/india/fmcg/top-companies/
# http://www.ibmabiscuits.in/industry-statistics.html
# http://foodbizdaily.com/articles/32688-news-biscuit-industry-in-india-an-
overview.aspx

79
 ANNEXURES

THE VARIOUS INSTRUMENTS PROVIDED BY THE COMPANY TO

DO AND MONITER THE ABOVE SAID ACTIVITIES-

1) PROMOTER DAILY RECORD SHEET - This sheet was provided by the company
authority to every promoter to record ……

1) The name of the retailers (at least 10) and wholesalers (at least 2) of the rural area he visits.

2) The number of samples the promoter collects of each SKU’S at RPD center.

3) The type of POSM activated at the shops he visited.

4) The most important thing is the Promoter remark which describe what kind of difficulty a
particular seller is facing, or what is the expectation a particular seller has from the
company. This gives a clear picture of the effort made by the company and the return the
company can expect.

5) The number of retailers sampled at the wholesalers point is the mirror of the feedback
company getting from its target customers.

Promotion Daily Record Sheet is the ultimate medium to know that the promotion
programme is going smoothly and the person who has been employed in this work is doing
his work regularly.

80
 The specimen of the sheet

BRITANNIA INDUSTRIES LIMITED

Promoter’s Daily Record

POSM activated
Promote
Details of Samples Collected at Retailer Tiger Tige Good 50 R
r’s
RPD visited Glucose r Day - u
Remarks
Cre 50 sk
ams
Tiger SKU 38 gm
Glucos (Rs-2)
e
No. 5

Tiger SKU 74gm

Cream (Rs-5)
s
No. 5

Good SKU 54gm

Day (Rs-5)

No. 5

50-50 SKU

No.

Rusk SKU

No.

Wholes Promoter’s Remarks

aler
visited

No. of retailers sampled at W1

No. of retailers sampled at W2

Promoter: Supervisor: Date:

RPD: District:
Details of Wholesaler 1:
Owner: __________________________________________________

81
Manager/Caretaker: ______________________________________
Address
_________________________________________________________
_________________________________________________________
Telephone Numbers
Landline: ____________________________________________

82
2) PROMOTERS VOUCHER SHEETS-This sheet was necessary to collect from the
promoter at the time the sample the RPD give to the promoter and in this sheet the promoter
has to write the number of different SKU’S he collected at RPD center and by the help of this
sheet the RPD would get the reimbursement from the company for the samples he given to
the promoter.

BRITANNIA INDUSTRIES LIMITED

Promoter’s Voucher Sheet
Promoter: Supervisor: District:
Date: RPD:

Brand SKU No. of samples

Signature of Promoter

Signature of RPD owner

* On production of this voucher by the promoter, the RPD is required to provide him with the
requested number of samples of Britannia SKUs. The RPD will be reimbursed for the value
of these samples by its super Stockist on production of this voucher.

83
3) SALES TRACKING SHEET-This sheet was provided by the company in order to know
the fluctuation of sales in the last eight week’s before starting the project and in the first four
week’s of starting the project .By the help of this sales tracking sheet the company can make
the comparison in the sales before and after starting the project MAGNUM. This sheet also
includes the type of active advertisements means before and after running the project
MAGNUM and what are the effects of these advertisement means, Are these advertisements
providing positive results or the desired results as it were expected by the company in the
starting of this project.

Total RPD Sales for the Week

Cost of
End Tiger Good Good Tiger Tiger Good Tiger Brita
Visibili
RPD of Glucos Day Day Creams Glucose Day Creams nnia
ty
Town 2 Week e Butter Cashew Orange Brand Brand Brand Sales
Activati
on (Rs)
(Tot
(Rs 2) (Rs 5) (Rs 6) (Rs 5) (Total) (Total) (Total) al)

NAGR
AM

16
march
To 21 Week
march -8 _ _ _ _ _ _ _ _

23
march
To 28 Week 5668.6 2214
march -7 5 _ _ _ 6041.9 2861.57 4167.9 9.66

30
march
To 04 Week 514.5 2144
April -6 3779.1 1 618.19 6283.07 3779.88 3994.27 6283.07 0.5

06 April
To 11 Week 11337. 1029. 4206
April -5 3 02 618.19 _ 12083.81 9060.99 4952.92 5.55

13 April
To 18 Week
April -4 _ _ _ _ _ _ _ _

20 April
To 25 Week
April -3 _ _ _ _ _ _ _ _

27 April
To 2 Week 5466.1 2318
may -2 5 _ _ 1562.96 5466.15 4809.33 5730.86 2.68

04 may Week _ 514.5 _ _ 0.78 2312.33 6390.28 9794

To 09 -1 1 .34

84
 may

11 may
To 16 Week 2186.4 514.5 1165
may 0 6 1 618.19 _ 2186.46 4985.46 3207.9 3.01

18 may
To 23 Week 514.5 1527
may 1 _ 1 618.19 _ 311.04 7216.26 2637.61 7.58

25 may
To 30 Week
may 2 _ _ _ _ _ _ _ _

1 June
To 6 Week
June 3 _ _ _ _ _ _ _ _

8 June
To 13 Week 515.1 1040
June 4 _ 7 _ 2097.26 _ 5693.98 2097.26 4.8

15 June
To 20 Week 1030. 1170
June 5 _ 33 617.15 2516.7 503.66 5057.47 2831.29 4.17

22 June
To 30 Week 1247
June 6&7 _ _ _ _ _ 2850.4 1106.18 5.66

(3) MONTHLY SALES RECORDING SHEET

85
PROGRESS REPORT (TOWN WISE)

Name of the promoter:-

Cluster name:-

Town Name Total Britannia sale

April May June

1.Sandila 27845 48841 52314

2.Shahabad 80413 66328 78589
3.Bilgram 10692 36649 43265
4.Pisawa 35832 56029 63435
5.Beniganj 33996 65334 54682
6.Sawaijpur 4045 8649 10156
7.Roopapur 1745 3665 4265
8.
9.Gross 194568 285495 306706

86
 4) MINI PROJECT (REVIEW FORM)

PROJECT REPORT

Name:

Location:

Problems faced by you at Super Stockist:

Problems faced by you at RPDs:

Problems/Grievances/Complaints of Super Stockist:

87
 Problems/Grievances/Complaints of RPDs:

Support you have received from Sales Officer:

Support you have received from PSM:

POSM Availability:

What are the threats faced by Britannia from competition or other

factors?

88
 What, according to you, are the opportunities that Britannia can
better exploited in the rural markets?

Review form- the importance of this review sheet is that, it was a mini project report on the
various activity done by the each promoter of each area and this report is the mirror of the
efforts made by the each individual attached with the project magnum. This report also
provides an opportunity to give recommendation on the various opportunity the company can
exploit in the rural market and this report provide an eye-sight to the company to know which
unit of the marketing and sales needs consideration again.

89