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

3
 APPROVAL CERTIFICATE

The Project Report of

Mr. MANISH KHATRI

BUSINESS DYNAMICS

is approved and is acceptable in quality and form.

Examiner
Signature: _____________________
Name: ________________________

4
 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 01

2. Britannia-Introduction 02

3. Important Persons of the Company 03

4. Company History 05

5. Innovation & Productivity 08

6. Organization Structure & Operating Policy 09

7. Marketing Strategies 10

8. Britannia Food Strategies 11

9. Promotional Strategies 13

10. Advertising Strategies 13

11. Branding Strategies 14

12. Positioning Prospectives 15

13. Beyond Biscuits 15

14. Conclusions 16

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

BUSINESS DYNAMICS

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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

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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

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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

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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.

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 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 Co-
operative 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

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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

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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 mega-
winners 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 7-
level 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 new-
found 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

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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

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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, snack-
times, 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 price-
points 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.
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 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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