CONSUMER BUYING BEHAVIOUR AND EFFECTIVENESS OF CONSUMER BUYING BEHAVIOUR AND EFFECTIVENESS OF

MARKETING STRATEGIES ADOPTED FOR BISCUITS MARKETING STRATEGIES ADOPTED FOR BISCUITS

ABSTRACT
In this project the various marketing strategies adopted by the company has
been studied and compared on the basis of current market scenario. It gives
the idea about the market share enjoyed by the different companies in the
Biscuit Industry. It provides the adequate coverage of many issues related to
biscuit industry.. It has been made possible by knowing the consumers
behavior and by studying the patterns adopted by the retailers. It gives us
very precise view about the existing demand of different brands of biscuits
and demand as compared to other competitors. It also highlights the changing
market trends an consumers preferences, why they have shifted family pack
to pouch pack.
The present study on Biscuit Industry is also trying to find onsumer
!erception about different varieties of biscuits and how !rice,
"nvironment, !ackaging , #uantity , "asy $vailability and %ariety are
affecting the sale of biscuits.
The advertisements have an impact on the formation of brand image. The
message of the advertisement followed by its picturi&ation affect the brand
image in the minds of consumers. The higher frequency of an advertisement
makes the image of a brand positive in consumers' minds.

The sales promotion schemes have a positive effect on the sales and brand
image in the short run. But regularity of schemes with a brand creates a
negative impression, in the long run. (iscount on price and exchange
schemes are the two most preferred schemes
I hope that this project will clear all the doubts and perception, which come up
in your minds occasionally and I hope that our data analysis and key findings
will throw some more light on Biscuit industry.

ACKNOWLEDGEMENT ACKNOWLEDGEMENT

TABLE OF CONTENTS
S.NO. CONTENTS PAGE NO.
1 ABSTRACT
2 ACKNOWLEDGEMENT.
3 INTRODUCTION AND LITERATURE REVIEW
4 COMPANIES PROFILE.
5 METHEDOLOGY.
6 DETAILS OF MARKEING STRATEGY USED BY
MAOR PLAYER IN INDUSTRY.......
! "UESTIONNIER # DATA ANALYSIS
$ OBSERVATION # FINDINGS.....
% CONCLUSION # RECOMMENDATION
1& APENDECIS
11 BIBLIOGRAPHY.

SYNOPSIS
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ROLL NO. )0922B0>
AREA OF RESEARCH:
MARKETING
TITLE )

CONSUMER BUYING BEHAVIOUR AND EFFECTIVENESS OF CONSUMER BUYING BEHAVIOUR AND EFFECTIVENESS OF
MARKETING STRATEGIES ADOPTED FOR BISCUITS. MARKETING STRATEGIES ADOPTED FOR BISCUITS.

RESEARCH OBJECTIVE:
To understand the marketing strategies adopted for biscuits by
major companies, to identify different factors that influence
consumer buying behavior towards purchase of biscuits and for
the improvements in marketing strategies used by lower selling
brands.
INTRODUCTION TO THE AREA OF RESEARCH:
This research investigates the buying behavior of the target market
as the essential task of marketing management under marketing
concept.

SCOPE :
*cope of thesis work is to identify the consumer behavior and
attract the consumer, to purchase biscuit categories from different
retail outlets by lowering the price at the same time adding quality
and taste in the biscuits.
RESEARCH METHODOLOGY:
!rovides maximum information. The data will be collected from
primary and secondary sources. !rimary data include the survey
with the help of questionnaire fieldwork collecting necessary data.
*econdary data involve data from internet, economic survey,
reports published by various institutes and articles published in
different journals.
!reparing the research methodology is very useful for any
research as it
REASON FOR CHOOSING A PARTICULAR
RESEARCH PROPOSAL:
This particular research is of my carrier oriented and of my interest
to achieve superior returns for different level of market.

OBECTIVES
R()(*+,- O./(,012()3
To study and review the marketing strategies adopted for
biscuits by major companies.
To identify different factors that influence consumer buying
behaviour towards purchase of biscuits.
To suggest improvements in marketing strategies used by
lower selling brands.

INTRODUCTION # LITERATURE REVIEW
CONSUMER BUYING BEHAVIOR
?nderstanding the buying behavior of the target market as the essential task
of marketing management under marketing concept. The consumer market
consists of all the individuals and households who buy or acquire good and
services for personal consumptions. The buying behavior tries to find out the
answers for the questions, who buys@ Aow do they buy@ Bhere do they buy@
(o they buy@
4A5FACTORS INFLUENCING CONSUMER BUYING BEHAVIOR
There are four major factors that influence the buying behavior such as
cultural factors, social factors, personal factors, and psychological factors.
i. CULTURAL FACTORS3 ulture is the most fundamental determinant
of a person wants and behavior. %alues, perceptions, preferences, and
behavior are the main variable under culture of an individual. "ach
culture contains sub3culture like nationality, religious group,
geographical area, and linguistic divisions etc.

ii. SOCIAL FACTORS3 $ consumer behavior is also influenced by social
factors such as the consumer reference group family and social roles
and status.
iii. PERSONAL FACTORS3 $ buyer decision is also influenced by his or
personal characteristics, notably the buyers age, lifestyle, occupation,
economic circumstances etc.
PSYCHOLOGICAL FACTORS) a person buying choices is also
influence by four major psychological factors such as motivation, perception,
learning belief and attitudes.
4B5 BUYING DECISION PROCESS
It includes buying roles, types of buying and steps in buying process.
I. BUYING ROLE
The buying role could be classified into four parts. These are initiator,
influencer, decider and buyer.
II. TYPES OF BUYING BEHAVIOR
onsumer decision taking varies with the type of buying decision. There are
four types buying behavior such as omplex buying behavior, Aabitual buying
behavior, %ariety seeking buying behavior.

III. STAGES IN BUYING DECISION PROCESS
Aere are five stages in buying decision process namely problem recognition
search, evaluation of alternatives purchase decision and past purchase
behavior.
NEED RECOGNITION
The buying process starts with the buyers recognition of a problem of need.
The buyer senses a difference between his actual state and desired state.
1. INFORMATION SEARCH
There are different sources from where a consumer can gather information
like personal sources commercial sources, experimental sources.
2. EVALUATION OF ALTERNATIVES
$fter gathering information about different products the customer will be in a
fuss as to choose which product among the mainly alternatives consumer
usually evaluate the alternatives on traditional basis, on the basis of utility
function etc. from the many alternative consumers at last choose the best one
for him.

3. PURCHASE DECISION
$ consumer who decides to execute purchase intention will be making up to
five purchase decisions.
4. POST PURCHASE BEHAVIOR
$fter purchasing the product and services the consumer will experience some
level of satisfaction or dissatisfaction with the product and services that will
influence subsequent behavior. If consumer is satisfied he may show the
probability of buying the product the next time, satisfied customer will say
good thing about the product, proving the statement that Csatisfied customer
is the best advertisement.CThe dissatisfied customer may take some action
against it. They may try to reduce the dissonance by abandoning returning
the product.
?nderstanding consumer needs and buying process is the foundation of any
company. By understanding how buyers go through problem recognition,
information search evaluation of alternatives, the purchase decision and post
purchase behavior marketers can pick up many clues as to how to meet
buyers need.

BISCUIT INDUSTRY3 A PROFILE
-rowth in the over D43year3old Indian biscuit industry has remained slow.
Back3of3the3envelope calculations will show that per capita consumption is
less than 8s 4 per month on biscuits or less than 8s 2= per household per
month.
This is according to a study done by .arket *earch, a .umbai3based market
research agency which has attempted to explain the dynamics of the Indian
biscuit market.
Aaving national players like Bakemans, !arle, !riya -old, Britannia,
*mithkline Beecham and 9ellogs, the prices have remained almost constant
for the past few years in most categories and in some categories the prices
have actually decreased to 2::;3:> levels. $s per the study, the market is
even now dominated by basic biscuit categories such as -lucose and .arie
which Eaim to satisfy hunger' and have little success in moving up the value
chain. The bottomline is that the biscuit market seems reluctant to move up
the value chain.
Biscuits are reserved for the small scale sector but there are strong
possibilities of the industry being deserved in line with the government policy
of liberali&ation. The net effect thus would be greater choice for the consumer
as well as a check on the costs.
The country production of the biscuits during 2::;3:> was 2>.< Fac tons of
which 2G0 were manufactured by the organised sector.

The industry turnover was 8s. =400.; rores of which organi&ed sector
contributed 8s. 0=2:.4 crores.
The biscuit market in India is estimated to be 2.2mn tpa, valued at 8s4=bn.
The unorgani&ed sector accounts for over =1H of the market. The market has
been growing at a $-8 of <3;H pa. !er capita consumption of biscuits is
estimated at a low 2.=kgs, reflecting the huge potential for growth.
.anufacturing was reserved for small scale upto 2::;, which put large
players at a disadvantage. In the organi&ed sector, Britannia and !arle are
the only national players with dominant market shares. Ither organi&ed
players include domestic players like BakemanJs, hampion, 9wality, !riya
and .+Js like *mith9line onsumer, 9elloggs, *ara Fee, Aein&, "xcelsia
/+estle5 and ?nited Biscuits.
*urya 6ood 7 $gro, makers of !riya gold biscuits, doubled capacity from 0=
tonnes a day to =1 tonnes and plans to be a national brand soon. In an
aggressive mode, the +orth dominated biscuit player has increased its ad
budget to 8s. 21 crore this year from 8s. ; crore last year. *urya has also
recently invested about 8s. ; crore in the moderni&ation and expansion of its
production and packing its production capacity of D1 tonnes per day to 211
tonnes per day by next year. The aim) to take the current turnover of 8s. 211
crore to 8s. 2=1 crore by the next year.

The low priced brand claims to have a 2= per cent market share in the +orth
and is aggressively eyeing a bigger bite of the 8s. 0,:11 crore biscuit
industries. The brand plans to gain a D1 per cent market share in the +orth by
the year of 011;.
The company's strategy has been to attract new consumer segments and
widen its consumer base with its well packaged low priced offerings. *urya's
success has also come from its formidable.
The applicability of various branding strategies play crucial role in marketing
in product. The applicability has grown due to the liberali&ation, competition
and technological changes taking place in corporate world.
In this project the various marketing strategies adopted by the companies has
been studied and compared on the basis of current market scenario. It gives
the idea about the market share enjoyed by the different companies in the
Biscuit Industry. It provides the adequate coverage of many issues related to
biscuit industry. The objective of this report is To identify different factors that
influence consumer buying behavior towards purchase of biscuits and
suggest improvements in marketing strategies used by lower selling brands.

PRESENT STATUS OF BISCUIT INDUSTRY
1. *egments) The organi&ed and unorgani&ed sectors of the biscuit industry
are in the proportion of ==H)D=H ratio.
2. "xports of Biscuit are estimated to around 21H of the annual production
during the year 011<31;.
3. Imports of biscuits into India have not shown any significant growth during
the last two years and have not affected productionGsales by the Indian
Biscuit industry.
4. .arketing) Bholesale and 8etail marketing in the Biscuit industry is
carried out with a network of 7 6 $gencies /for *tates andGspecific
(istricts5 (ealers G Bholesalers and 8etail shops.
5. Biscuit Industry, especially the *mall 7 .edium *ector, consisting of
around 2=1 units/besides three Farge Industries5, are facing erosion in
their profitability and competitive capability, due to imposition of %alue
$dded Tax /%$T5 by the *tate -overnments K 20.=H on Biscuits,
compared to %$T oat DH levied on other similar food products.
6. Taxation) In behalf of the industry, IB.$ has been pursing the issue with
the hief .inistersG6inance .inisters of all *tates and also with the
hairman of the "mpowered ommittee on %$T, *eeking reduction in the
rate of %$T on biscuit to DH. IB.$ estimates annual growth in the range

of 2=H to 01H during the next five years, in the event of reduction in the
rate of %$T on Biscuits to DH.
;. !er capita consumption of Biscuits in the country is only 2.> kg, as
compared to 0.= kg to =.= kg in *outh eastern countries and "uropean
countries 7 ?*$ respectively.
>. .ain ategories of Biscuits are broadly as under) -lucose, .arie. *weet,
*alty. ream, 7 .ilk !opular Brands of Biscuits in the country are, Britannia,
!arle, !riyagold, $nmol, Biskfarm, (ukes, remica, Bonn, Bhagwati, 8aja,
hampion, *obisco, .adhabi, +e&one, Bindsor, ookieman, *ufeast, Tiger,
etc
%. A667*8 G+9:0-3
(rivers for growth in Biscuits)
The biscuit industry in India witnessed annual growth as below)
The biscuit industry in India witnessed annual growth as below)3
011431D 3 2=H
011D31= 3 2DH
011=31< 3 2DH
011<31; 3 24H
011;31> 3 2=H
011>31: 3 2;H
/$pril L Mune5


Bhile the growth rate has been stagnating during last D years, it has picked
up momentum during the 011;31> and the first quarter of 011>31: mainly on
account of exemption from entral "xcise (uty on biscuits with .8! up to
8s.211Gper kg, as per ?nion Budget for 011;31>.

Indian Biscuit .anufacturersJ $ssociation /IB.$5, instrumental in obtaining
the excise duty exemption, estimates annual growth of around 01H in the
year 011>31:. -rowth in biscuit marketing has been achieved also due to
improvement in rural market penetration.

A667*8 P+9;7,01963
The organi&ed biscuit manufacturing industryNs annual production figures are
given below)/In Fakh .etric Tones5

011431D 3 22.11
011D31= 3 20.=D
011=31< 3 2D.0:
011<31; 3 2<.2D
011;31> 3 2;.DD

21. 8ural3urban penetration of Biscuit)
?rban .arket) ;=H to >=H
8ural .arket) =1H to <=H
22. onsumption pattern in the country are as below)

+orthern Oone *tates 3 0=H
Bestern Oone *tates 3 04H
*outhern Oone *tates 3 0DH
"astern Oone *tates 3 0>H
/Including +."ast5
The organi&ed sector consists of large, medium and small scale biscuit
manufacturers who produce packed biscuits. The major players in this sector
are Britannia, IT, and !arle, !riyagold etc. the unorgani&ed sector
comprises of small bakery units, cottage and household type manufacturing
plants. These units distribute their biscuits in the surrounding vicinity of their
manufacturing locations of say 013=1 kms.
Tracking the factors holding back the growth of the biscuit industry in India,
.arket *earch has arrived upon the following points)
(isguised monopoly 3 $lthough at all levels there are just two major players,
!arle and Britannia, a closer look at the *tate3level markets show the
presence of strong regional players such as Bakeman's, !riya -old,
*halimar, Bindsor and hampion 3 brands present in almost all markets.
Thus for the
two national players, each *tate market is similar to a perfectly competitive
market, each with its own dynamics.
The competitive scenario at the national level is more of a disguised duopoly
than a real one. This has held the prices in check for a long time.

6reebie3driven purchase behaviour 3 $ slew of successful gift offersGschemes
from the biscuit marketers over the last two years has led to a situation where
the choice of brand is driven by the gift solely and not by the brands. .ore
and more marketing budgets are being spent on below3the3line promotions
and less on brand building.
$ccording to the research, the delivery efficiency of schemes and gift offers in
Indian 6.- markets is just about <1 per cent, leaving the rest of the
potential customers disappointed with the brand.
$part from the long3term damage to the brands, these gift3laden schemes
have started damaging the brand in the short term and even the indifference
of their distribution channels at times leads to pilferage of these gifts.
*uperior packaging 3 Aowever, biscuits' packaging has undergone a swift
transformation. 6rom Britannia's functional protective blister wraps, which
prevent breakage, to !arle's stylish and enticing BI!! offering, packaging
has been completely transformed. Both the players are now trying to
differentiate their brands to reflect their superior quality through superior
packaging.
This upgradation in packaging has been neutralised by multi3unit packing,
thereby effectively neutralising the potential premium for superior packaging.
(iscounts 3 The other trend in this industry is the competitive discounting of
popular and premium brands. This trend has not spared even the large
brands, such as !arle -. *uch competitive discounting, even on low3value

products such as -lucose biscuits, has led to stagnation of topline and
erosion of bottomline.
The impact of this is being felt in the biscuit makers' inability to invest in brand
building activities and thus move the market away from the low3priced basic
categories to the middle and high3end Esnacking' and Eindulgence'3driven
categories.


*pread of market share between these competitors)

Irgani&ed .arket is further segmented as follows)
The general characteristics of the unorganised sectors are)
a. They are mostly assorted Bakeries who have ventured into large scale or
semi large scale manufacturing after growing popular in the local markets.
b. .ostly have a strong hold among the local trade.
c. *trategi&e on higher retail and wholesale margins to capture volumes.
d. .anufactures local versions of the *trong organi&ed brands and many
times with the look3alike packing and brand name even.
e. Indulges in active distribution in markets close by the .anufacturing units
and relies on !assive distribution in other markets.

f. Targets the roadside tea stalls and small grocers and bakeries for the
volumes.
g. (oes not rely on .erchandising and consumer promotions etc.
E621+96<(60 A6*8=)1)
*i&able volumes are consumed at small roadside tea shopsG stalls across
the country, with bulk of the demand met by the unorgani&ed sector.
Typical consumers are truck driversG travelers.
Farge consumption takes place on 8ailway and Bus stations
Brand loyalties are relatively stronger in the popular segment whereas in
the premium segment, consumers look for novelty and change.
-lucose biscuits, typically consumed with milk, are more popular in the
Best and the +orth
.ilk biscuits are more popular in the *outh and the "ast.
$rrow root are more popular in the "ast, whereas .arie /low sugar5
biscuits are preferred in the south.
.

S9<( 9> 0-( >*,09+) 0-*0 ,*6 16,+(*)( *) :(88 *) ;(,+(*)( 0-( ?+9:0-
9> 0-1) 16;7)0+= *+()
25 !olicies 3 The -overnment decision to double the excise duty on biscuits
from >H to 2<H.
05 .onsoons 3 The monsoons have been comparatively good this year and
the farmers are surely going to benefit from this. $nd since
45 <1H of IndiaJs +ational Income is contributed by $griculture a good
monsoon will also help in increasing its -(!. Bell the monsoons have not
left the pockets of the rural folk empty, they have actually filled it up fully
and which now seems over flowing. Bith better monsoons the !urchasing
!ower of the rural folk will surely increase along with demand, not to
forget their aspiration levels. $ll which is indeed a good sign for the
onlookers in the Biscuit Industry.
D5 $ttitude 3 $ccording to the P $ +ielsen $sia3!acific onsumer
onfidence *tudy P, the spending spree of Indians are increasing on a
daily basis as the people are so confident about the *tability of the
economy now as well as the future. $nd almost every Indian is a follower
of this trend. Indian consumers are now showing a proclivity to spend
more that what their regional average is. This trend is surely a positive
sign for the biscuit industry as well.

PEST ANALYSIS
$nalysis of the environment is of utmost importance for any organi&ation, for
its existence 7 survival in the competitive market scenario. It is so because all
the activities of the organi&ation are to be carried out within the scope of this
environment. "nvironmental influences had always played a significant role
on the functioning of the organi&ation whether it may be in present or in
future.
These influences not only have its effects on the organi&ation but also on the
competitors. To find out the factors of influence, we do !"*T $nalysis
indicating the importance of !olitical, "conomic, *ocial and Technological
factors on the organi&ation.
P98101,*8 F*,09+)
The political shocks can have overwhelming impact on the economy. Inflation
is the perfect illustrationQ it is not just the product of an arbitrary monetary
policy that is temporary out of control, but a rational response to problems
that are fundamentally political.
The government has increased the prices of (iesel as result of which the
transportation costs are bound to increase and net effect will be reduction in
the profit margin of the organi&ation.

i .ex e
The unexpected change in government policies has always been of great
concern for the industry. Fast year, the government first levied a Tax of >H on
packaging and as a result of which the company profits got shrieked. But later
again, the policy was taken back, thus exempting the >H tax on packaging,
which shows the extent of unstability.
The marketing strategist need to study both the domestic and foreign political
happenings, reviewing selected published information to keep in touch with
political trends.
$lso with the *wedish message spreading all around. It is acting as a sword
which is hanging over the head of the management of the organi&ation.
Fegislation related to manufacturing and taxation should be made more
investment friendly. The government has already taken certain significant
steps. !rocessed foods like biscuits and ice creams have been deserved,
cold stronger and rice milling deregulated and import duties and taxation on
processing equipment have been reduced.
The plethora of legislation must be harmoni&ed into ?nified 6ood $ct. The
taxation regime should be rationali&ed. The taxes on packaged food products,
hinders growth. The industry suffers from multiple taxes like excise, soles tax
and in certain cases even a mandi tax, leading to a cascading impact.

E,969<1, F*,09+)
It is not unrealistic to say that all companies, small or large, engaged in
strategic planning examine the economic environment. 8elevant published
information in usually gathered, analy&ed, and interpreted for use in planning.
$gricultural production and food processing account for 41H of IndiaJs -(!
and employ more than ;1H of its work force. (espite a recession in the
economy, the biscuit market is growing at the rate of 2DH per annum. The
total market for chips is as low as 01111 3 02111 tonnes. Iut of this, close to
2<111 tonnes is sold by the unorganised sector. $lso the product accounts for
just 2.4H of biscuit business D111 tonnes annually out of a 4, 11,111 tonnes.
The biscuit market is highly locali&ed, while the branded, packaged biscuit
market is a dismal 21H, local producers control close to ;=H of the market
and the remaining in taken up by the sweetmeat shops.
-rowth rates for the biscuit industry as a whole in the past years have
been risingQ however, future predictions might go negative.
S9,1*8 F*,09+)
The utmost importance for any business is its social relevance, and is true in
a society where survival needs are already met. Thus, the strategic planner
should be familiar with emerging social trends and concerns. The relevances
of the social environment to a particular business will depend on the nature of
business. The impact of the social environment on a consumer products
company is much more than any other company.

The relevance of the social environment to a particular business will depend
on the nature of business. The impact of the social environment on a biscuit
products company is much more than any other company.
Iver D1H of all packaged goods consumed in urban India are foods and
beverages, while that in rural India is over 01H. This trend will deepen
because of the changing profile of the consumer. "ducation, employment and
media will make the consumer more discerning and demanding. Aealth,
hygiene and convenience will emerge as strong needs.
T(,-6989?= F*,09+)
Technology developments come out of the 87( effort. Technological
innovation is not only limited to electronics and computers alone. In other
fields as well a variety of developments are providing new opportunities and
threatening existing businesses. This can be seen very well in the packaging
industry. Technological advancements will facilitate new product
developments and coming up with more better and innovative products
focusing on value sensitivity.
$daptation of new technology is the major factor in biscuit industry.

COMPARATIVE STUDY OF URBAN AND RURAL
PENETRATION
The rural penetration of the branded biscuits segment is also significant.
Towns with populations of less than a lakh contribute significantly to the
industry's turnover, with some estimates placing it at =1H to <=H. Aowever,
rural markets largely consume lower3priced varieties, and it is here that
branded biscuits meet with stiff competition from the unorganised sector.
$ccording to official statistics, the contribution of the unorgani&ed sector,
which sells biscuits loose, could be as high as =1 per cent.
Bhile the presence of a large unorgani&ed segment could mean that a
si&eable population can be converted into branded biscuits consumers and,
therefore, represent huge market potential for companies in the organi&ed
sector, the fiscal duty structure still favors the unorgani&ed sector. "xcept for
select low3priced varieties, the excise duty on biscuits is a hefty 2< per cent.
Bhile the growth rate has been stagnating during last D years, it is expected
to pick up momentum during 011;31>, mainly on account of exemption from
entral "xcise (uty on biscuits with .8! up to 8s.211Gper kg, as per ?nion
Budget for 011;31>. Indian Biscuit .anufacturersJ $ssociation /IB.$5,
instrumental in obtaining the excise duty exemption, estimates annual growth
of around 2;H to 2>H in the current year /011;31>5. -rowth in biscuit
marketing has been achievedQ mainly due to improvement in rural market

!enetration this effectively reinstated the status quo for low3priced biscuits
such as !arle3- and Tiger. Iverall, it has maintained the potential for price
differentials between low3priced branded biscuits and unbranded biscuits. $t
the same time, the differential between low3priced varieties and high3priced
varieties appears set to widen.
Bhat were previously urban brands, like .arie-old and =13=1 are now
traveling the population strata. Britannia has gone the AFFs way by putting up
wall paintings, and participating in fairs and festivals.
The biscuit Industry is a highly competitive industry with tough competition.
+ot to forget the unorgani&ed market. The players in this sector are the walls,
which the urban players have found difficult in bringing down.
COMPETITIVE POSITION
The entry of new .+Js has not posed a direct thereat to Britannia, as these
.+Js have positioned their brands in the premiumGhealth segment. Britannia
has maintained market leadership with a D1H volume share and 44H value
market share in the organi&ed sector. 6.- major AFF is expected to
venture into the segment. Britannia has been aggressive in new launches and
marketing during the last 0 years anticipating the competition. It has also
recently acquired 9wality Biscuits, gaining a strong foothold in the southern
market.

Bread is one of the most widely consumed processed foods in the country.
The market is estimated at 2.=mn tpa. The industry is dominated by a large
number of players in the unorgani&ed sector, which accounts for over >1H of
the market. Britannia Industries and .odern 6oods /now owned by AFF5 are
the only two players with a national presence in packet slice bread segment.
There are several other regional players who have significant market shares
in their respective local areas.
Iperating margins have been improving despite the fast pace of new product
launches in the last 034 years. 8ationali&ation of manufacturing operations,
and greater contribution of higher margin dairy products have both
contributed to the margin gains. Britannia has decided to hive off its dairy
business into a joint venture with the +ew Oealand based 6onterra
ooperative. Britannia and 6onterra will each hold D:H of the 8s0.0=bn
equity, while the balance 0H will be held by business associates.

TYPES OF BISCUITS3 -lucose, .arie. *weet, *alty. ream 7 .ilk
In the overall biscuit market, Britannia and !arle are two major players with
2=H and 21H market shares respectively. In the organi&ed biscuit market,
Britannia has close to 44H market share, while !arle has around 00H share.
Bakeman's has a market share of =H, mainly with a larger share of the cream
biscuit segment. Ither players like +utriene /now acquired by *ara Fee5,
9wality etc have about 43DH market shares each. 9wality Biscuits !vt Ftd, a
Bangalore based company has been expanding its presence to other parts of
the country.
The glucose segment accounts for 4= percent of the overall biscuit market.
!arle's !arle3- is the leader in the -lucose segment, wherein it has an
estimated <:H market share. Britannia re3launched its -lucose 3( and ircus
brands of glucose biscuits under the Tiger brand. Bith attractive packaging,

low pricing, and heavy advertising, Britannia has achieved tremendous
success with the Tiger brand. The brand has an estimated annual sale of
close to 8s2.=bn and has garnered 0130=H market share in the glucose
biscuit segment. Britannia hopes to make Tiger the number one brand in the
glucose segment by 011;. 8ural market accounts for majority of Tiger sales.
*alty biscuits /!arle 's .onaco and Britannia's *nax5 and sweet3salty biscuits
/!arle's 9rackjack and Britannia's =13=15 are the other two most popular
segments in the biscuit market. Ither !arle brand in the popular segment is
*uper .ilk. Aowever, !arle has been unable to establish its presence in the
premium segment. It has recently launched Aide NnJ *eek, chocolate chips
biscuits which will compete with Britannia's Bourbon.
Britannia's other main brands are .arie, +ice, .ilkbikies, -ood (ay, !ure
.agic, and Fittle Aearts.
Ither small3scale producers are $mpro 6ood !roducts, Fucky Biscuit
ompany, hampion Biscuits, rown Bakery, (almia Biscuit !vt Ftd, (ey
Bakery, Indian 6oods !vt Ftd, M B .angharam 7 o, etc. (octor Biscuits !vt
Ftd, a 9erala based company has created a niche segment of Aerbal Biscuits
containing herbs with medicinal properties which are beneficial for the body.
$fter setting up a base in the south, the ompany is currently expanding its
market to cover .aharashtra, ?! Bihar and Irissa. (octor Biscuits !vt Ftd
has a network of D0= distributors and ;= stockists and has an annual turnover
of 8s4<1m.

MAOR PLAYERS
BRITANNIA INDUSTRIES LIMITED
In 2>:0 -upta brothers saw a dream of setting
up a biscuit factory and thus a humble beginning
was made to manufacture biscuits in a small
house in entral alcutta back in 2>:0.
Britannia is the major player in the domestic biscuit market with a share of
over >=H in value terms in the organi&ed sector. +ow it is quietly transforming
itself from a CBiscuitsC company to a Complete 6oodsC company. Its new
slogan N"at Aealthy, Think BetterJ highlights the Aealth and +utritional
aspects associated with the brand. BIF is also one of the four Indian
companies which is selected in 6orbes top global 211 small companies list.
BIF has over a period of time created some of the most enviable food brands
in India like .arie-old, -ood day, Mim3Mam, hekkars, *nax and so on. In
terms of understanding the Indian consumer psyche, it has been one of the
smartest companies in the 6.- peer group.
Britannia is the market leader in the organi&ed biscuit and bakery product
segment in India and has always been the pioneer in product innovation.
Biscuits contribute to nearly :1H of Britannia's total turnover. Britannia is
synonymous with 'biscuits' and brands like .arie -old, -ood (ay, =13=1 and
Tiger have become a household name in the country. BIF has also diversified
itself and thus has emerged as a 6ood and Beverage major in India by

launching many non3bakery items such as several dairy products and certain
snack items.
Britannia is the largest bakery in the private sector. 6rench company -roupe
(anone has become the majority stakeholder with a DD percent stake, along
with +usli Badia.
Britannia is the only listed company in the biscuit industry. The company's
only close competitors in the baked confectionery business are !arle and
Bakemans Industries. urrently, BIF has a stranglehold on the 0.413lakh3
tonnes3a3year biscuit market, with an estimated <1 per cent market share.
Britannia today has a sales turnover of 8s.2201 crores. BIFJs sales has been
growing at the rate of 0<H p.a BIF has a huge distribution network of D<11
distributors and <,11,111 retail outlets.
The recent poll conducted by $7. maga&ine and market research agency
I8-3.$8- suggests that, BIF has tremendous brand equity as Britannia as
a brand stood fifth in the country and was the only food brand to figure in the
top 21 brands. The companyJs net profits have been stagnant for quite
sometime now and this is attributed to the fact that they are making huge
investments as a part of their expansion, diversification and up3gradation
plans.
$ major advantage for the company is the interest taken by the 6rench
collaborator 3 -roupe (anone 3 in BIF's fortunes. The hike in stake by
$ssociated Biscuits International /$BIF5 /which is the holding company in
which -roupe (anone and the +usli Badia group are equal partners5 to DD
percent from the earlier 4> per cent will be an advantage for the Indian outfit.

BRITANNIA@S BUSINESS
Britannia's derives revenues out of D key product divisions namely, Biscuits,
Bread, Cake & Rusk, and Dairy product.
Biscuits and high protein food are the mainstay of BIF's business and
contribute to over >= per cent of its turnover with bread accounting for 21per
cent. The rest is spread between cakes and exports. BIF's portfolio, consisting
of over 0= products, includes top selling brands such as Tiger, .arie-old,
6ifty36ifty, oconut runchies, -lucose3(, !ure .agic, *nax,+ice, Bourbon,
-oodday etc.
$lthough the entry of new .+Js do not pose a direct threat to Britannia, as
these .+Js have positioned their brands in the super premium segment,
Britannia has been more aggressive in new launches in the last 230 years.
The company has also covered most of the price points with its different
range of products in biscuits. -ood (ay falls in the premium category of
products in Britannia's basket. Ither biscuit products include Tiger, +ice,
ream Treat, =13=1, *nax, .arie-old, !ure .agic and Fittle Aearts. It is also
taking a price mark3up in biscuit to the extent of > per cent, said dealers, as a
result of a hike in excise duty levels in the Budget.
Britannia has a 44H market share in the organi&ed biscuit market. Iver the
years, Britannia has introduced and developed a full line of brands in all
segments of the biscuit market. Biscuits contributed to >4.<H of total
revenues . The company's Tiger range of glucose biscuits has been a
runaway success, enabling the company to expand its presence in the largest
category of the biscuit market. In salty3sweet segment !arleJs 9rackjack and

BritanniaJs 6ifty36ifty compete very closely. BritanniaJs other major brands
include .arie, Thin $rrowroot, Bourbon, .ilk3bikis, +ice, *nax, oconut
runchies, !ure .agic, -ood (ay, Mim3Mam and hekkers. It has recently
launched new biscuits like %ita.arie-old, Tiger variants and a complete
range of health biscuits under the +utri3hoice umbrella.
PRODUCT RANGE
1. G99; D*=
Britannia -ood (ay was launched in two delectable avatars 3 -ood (ay
ashew and Butter. Iver the years, new variants were introduced 3 -ood
(ay !ista Badam in2:>:, -ood (ay hocR chips in
0111 and -ood (ay oconut in 011D.
This rich biscuit enjoys a fan following of consumers across all ages, loyal to
the brand promise of a great taste evident from the visibly abundant
ingredients. -ood (ay is amongst the fastest growing brands in Britannia's
portfolio and is today the market leader with almost 0G4 share of the market.


The brand is synonymous with everyday treats that infuse happiness into
people's daily lives.
2. T1?(+3
Tiger, launched in 2::;, became the largest brand in Britannia's portfolio in
the very first year of its launch and continues to be so till today.
Tiger is a -lucose 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. +ow Tiger -lucose has
been fortified with CIron OorC with an attempt towards addressing the Iron
(eficiency crisis the children of India face.
3. M*+1?98; 3
Britannia's oldest brand enjoys a heritage that that s
that span the last =1 years 3 and going strong str.
In a market swamped with me3too products and
where even the name '.arie' become generic,
Britannia .arie -old has maintained stronghold. Today, the
today, ever3popular .arie -old is synonymous
with the 'Tea Time BiscuitJ Its taste, crispiness and lightness make it a must
for every tea break. It is the S2 brand in its category by a long sort.
4. M18A B1A1)3
.ilk Bikis has been trusted by source of growth

"nergy of milk and their loyalty to the brand has
made it an integral part of their children's nutrition
regimen.
In 2::<, .ilk Bikis launched a variant called .ilk ream. These round
biscuits come with smiley faces and are full of milk cream that makes them
very popular with children with a unique and attractive honeycomb design and
an enhanced product experience, the new biscuit is now fortified with *.$8T
+?T8I"+T* L D vital vitamins, iron and iodine, proven to aid mental and
physical development in growing kids.
!ineapple ream
5. T+(*03
$s a move to consolidate all the individual ream Treat offerings under a
single umbrella , Britannia launched Treat in
0111. Treat has a range of tasty delights for all kids
with yummy creamy treasures within the biscuit shells.
Britannia Treat offers a wide variety of flavors, such as the classic
Bourbon 7 "laichi, the 6ruit 6lavored reams such as Irange, !ineapple,
.ango, and *trawberry, the Mam 6illed enters under the Mim Mam range,
and the
Mam range and the (uet 8ange /biscuits with two flavors of cream
between three layers of biscuit5 comprising *trawberry %anilla and (uet
*trawberry hocolate

6. 5&B5&3
Faunched in 2::4, =13=1 belongs to the
family of crackers and is considered the
Cvery very tasty tastyC snack.
Britannia =13=1 is the leader in its category with more than one3third of
market share. The versatile and youthful brand constantly aims to provide
a novel and exciting taste experience to the consumer. $s a result, in
0112, the delicious .aska haska was launched as a variant of the
original brand and became an instant success. 8ecently, another offering
from the =13=1 stable was introduced 3 !epper hakkar. This thin and
crisp snack came with a distinctive peppery flavor and a mysterious
ingredient that left everybody wondering CBhat it is@C The consumer's
verdict, though, is clear) Britannia =13=1 and its variants are a 211H hit.
!. O0-(+) ) Fittle3Aearts, nutria choice, time pass, etc
PRIYAGOLD
ompany was established in (ecember 2::4 and
brought out its values and cherished project 3
Biscuits under the brand name !8I,$-IF(

C!8I,$-IF(C is one of the leading manufactures of
biscuits in +orthern India having wide distribution network in +orthern and
Bestern parts of India. !riyagold manufacture 2< varieties of Biscuits both
*weet and *alt, Bidely accepted and appreciated by millions of domestic and
international consumers. The company's mercurial growth is attributed to its
..(. .r. B.!. $ggarwal and its technical director .r. $.9. -hosh who have
got years of rich experience and depth of knowledge in the field of biscuit,
made it possible to penetrate the nook and the corner of +orthern and
Bestern parts of India labeling !riya -old biscuits a household name. The
company has capacity of =1 tones a day production. !riyagold has been
pioneering in economy packs.
The company has an existing dealer network of over ;11 distributors spread
over in the +orth and the Best.
!8I(?T B?*9"T I6 !8I,$ -IF(
Butter bite
"laichi ream
+ice (ay
6ruit Bite
oconut runch
*nacks
Treat !udina
-lucose 3 %
hocolate ream
Irange ream
Butter Bite ashew

Meera Top
rack '+' heers
.arie Fite
ashew *alted
.agic -old

SHORT ANALYSIS OF PRODUCT
C+*,A CNC C-((+)
Take a crack at rack '+' heers. The real sweet 'n' salty temptation. Aave it
with tea or coffee, sherbet or soft drinks. *ay cheers to a *weet 'n' salty taste
with rack '+' cheers from !8I,$-IF(.$vailable in ;= g 7 011 g packs.
M*+1( L10(
6inally a biscuit that is as calorie conscious as you are. !resenting .arie Fite
biscuits from !8I,$-IF(. They are >1H fat free. Fight and very crisp.
"xperience the delights of .arie Fite. 6or a taste that is 211H. $vailable in
211 g 7 0=1 g packs.

C-9,98*0( C+(*<
Indulge in the sinful delights of real smooth chocolate laced with rich sugary
cream. "ntwined between two slabs of finely baked biscuits. !resenting
chocolate cream from !8I,$-IF(.
$vailable in ;= g 7 0=1 g packs.
O+*6?( C+(*<
The tangy taste of orange enveloped in rich cream spread between two slabs
of finely baked biscuits. !resenting Irange ream from !8I,$-IF(. It
music to your taste buds all the way throughT
$vailable in ;= g 7 0=1 g packs.
T+(*0 P7;16*
$ hint of mint, a dash of salt and a touch of spice blend to from nuggets of
Treat. "njoy the real Treat from !8I,$-IF(. The taste that will make you
clamour for more.
$vailable in =1 g 7 2=1 g packs.
G87,9)( B V
!ower your taste buds with -lucose 3 %. "nriched with vitamins and proteins,
-lucose 3 % will energies your spirits. "njoy the taste of -lucose 3 % from
!8I,$-IF(.
$vailable in 0= g, ;= g, 211 g 7 0=1 g packs.

COCONUT CRUNCH
$ perfect blend of flour and coconut. -enerously dipped in dollops of butter.
$ feast of brown and crips biscuits scrumptious, crunchy and very tasty.
6rom !8I,$-IF(.
$vailable in 211 g 7 0=1 g packs.
S6*,A)
If dressing up is your forte, time you did it *nacks. *o dress up light 'n' salty
snacks biscuits with just about anything. *nacks from !8I,$-IF(. 6or
people with taste.
$vailable in ;= g 7 011 g packs.
N1,( D*=
8ound shaped sugar sprinkled biscuit blended to perfection with fine flour
and desiccated coconut powder. !resenting +ice (ay from !8I,$-IF(.
Aave a +ice (ay everyday.
$vailable in ;= g 7 0=1 g packs.
F+710 B10(
!resenting a premium biscuit 3 6ruit bite.Blended with the finest quality
almonds and pistachios. 6ruit bite from !8I,$-IF(. The healthy biscuit
with real rich taste.
$vailable in 211 g 7 0=1 g packs.

B700(+ B10(
6eel the real taste of smooth butter slide over your tongue, "nriched with
vitamins $ 7 (, butter is the bite of bite. Butter Bite from !8I,$-IF(.
$vailable in 211 g 7 0=1 g packs.
E8*1,-1 C+(*<
The tingling taste of cardamom spread in rich cream, *andwiched between
two slabs of finely baked biscuits. !resenting "laichi ream from
!8I,$-IF(. 6or a taste that is really freshT.
$vailable in ;= g 7 0=1 g packs.
PARLE
!arle !roducts Ftd. started with a humble hu
beginning, way back in 2:0:, without any foreign
apital or technical assistance. assistan
$ small factory was set up for manufacturing boiled sweets which were sold
in loose, initially in a market which was dominated by famous international
brands that were imported freely in those days. !arle survived the unequal
competition through sheer force of high quality which was due to original
-erman formulations, brilliant improvisations 7 strict insistence on clean,
hygienic conditions in the factory.
In 2:4:, !arle took up the manufacturing of biscuits, sweets 7 toffees.
$lready having set up !arle as quality manufacturers, the biscuits became

very popular. -lucose 7 .onaco were the first brands of biscuits to be
introduced, which later went on to become leading brands in the country.
!arle pioneered the manufacture of savory 7 dual taste3sweet 7 salt biscuits.
In the early days, biscuits were a luxury to many people. .uch of the credit
goes to !arle !roducts for making it possible for a vast majority of Indians to
enjoy biscuits. .ore biscuit varieties followed like -em, !etit Beurre, .arie,
Ooological, +ice, ream 7 others. (uring the *econd Borld Bar, all domestic
biscuit production was diverted to assist the Indian soldiers in India and the
6ar "ast. But because of recurrent wheat shortage and soaring popularity of
-lucose 7 .onaco 7 for economies of scale, some biscuit brands had to be
discontinued 7 !arle had to settle down to concentrate production on the
varieties that had the greatest mass appeal.
6rom 2:0> to this date, !arle has grown from strength to strength, perhaps
because it has always had something to give to others. $bout 0=H of its
income is given to public charities to support education and medical care.
BRAND STRENGTH3
Iver the period, !arle has grown from strength to strength 7 currently is a ?*
U 2;1 million conglomerate. It is in the business of manufacturing 7 marketing
biscuits 7 confectionery. .any of its products are market leaders in their
category 7 as recognition of their quality, have won >1 gold, 02 silver 7 4
bron&e .onde *election medals since 2:;2.
!arle enjoys D1H market share of total biscuit market 7 2= H market share of
total confectionery market in India. Biscuit brands like !arle3-, .onaco,
9rackjack enjoy strong brand imagery 7 have a wide mass appeal among

consumers. !arle has a variety of biscuits in various categories such as
-lucose, .ilk, *alted, *weet 7 *alted, reams, Bafer reams 7 assorted.
!arle is credited with starting new biscuit categories like .arie, -lucose, *alt
rackers, *weet 7 *alt. *ince then !arle has built these brands into domestic
giants 3 !arle3-, .onaco, 9rackjack, etc. In all these years of development
!arle has catered not only to the people of big cities but also to the masses of
remote Indian villages with populations up to 2111 people.
PRODUCT PROFILE
Parle-G
!ositioned as The Tastier Aealthy 6ood
!arle L- is amongst the largest selling brands
in India.
The taste, energy and nourishment !arle 3 - offers, along with its quality and
value3for3money, contribute in making !arle 3 -'s success, an unchallenged
one. This success is not confined to India alone. !arle 3 - is the winner of >
-old and 22 *ilver awards at the .onde *election.
Krackack
!ositioned as the 'Iriginal' *weet and *alty Temptation
$ little *weet, $ little *alty. 9rackjack been and
through an IndianJs sweet and salty moments
for nearly three decades. decades.

This original sweet and salty temptation is not just about biscuits, it's the
coming together of polarities. It's a reflection of the fact that 'yes or no', 'right
or wrong', 'heads or tails' and not absolute.
They are inherent to every situation. It is about life about every situation in life
that has two sides to it. Ine that is sweet and the other salty
M!"ac!
!ositioned as Fight, risp .onaco V 6or Fighter .oments
This original 'I' shaped salted biscuit
makes folks go, CIh, .onacoC.
.onaco rates as the finest on lightness,
crispness and freshness. .aking
it India's largest selling salted biscuit.
Crea# B$%c&$'%
!ositioned as (elicious reamy (elight
!arle ream biscuits have the highest
cream content in the cream biscuit category.
*o you get more creamy flavors. hoose from
orange, elaichi /cardamom5 and chocolate flavors.
H$(e a"( Seek:
AereJs a hocR biscuit that flirts with your
taste buds. *eek out the chocolate chips that
chips that aren't really hidden.

$nd relish a delectable experience as they melt in your mouth. $lso know to
work as an effective icebreaker itJs easy to see why itJs tasty itna, ki dil
aajayee.
Parle )*-)* c!!k$e%:
!arle presents 01301 ashew and the butter butter
cookies where every cookie is baked to bak
perfection to deliver the perfect taste and taste
aroma.
$ mouth3melting experience of premium cashews and rich butter in every
bite you take, !arleJs new 01301 cookies promises a combination of crunch
and scrumptious delicacy.
"UALITY CONTROL AND R#D
!arle products has one factory at .umbai which manufactures biscuits 7
confectionery, other factory at Bahadurgarh in Aaryana which manufactures
biscuits 7 2D contract manufacturing units for biscuits. $ll these factories are
located at strategic locations to ensure a constant output 7 easy distribution.
These factories have state of the art machinery with automatic printing 7
packaging facilities. The biscuit baking oven at .umbai plant is the largest of
its kind in India. $ll !arle products are manufactured under the most hygienic
conditions. -reat care is exercised in the selection 7 quality control of raw

materials, packaging materials 7 rigid quality standards are ensured at every
stage of the manufacturing process.
"very batch of biscuits 7 confectionery is thoroughly checked by an expert
staff using the most modern equipment. There are continuing efforts to
introduce new products as a result of high emphasis on 87( at !arle.
SUNFEAST 4ITC L0;.5
In 0114, IT forayed into the Biscuits
market with the *unfeast range of
-lucose, .arie and ream Biscuits.
*unfeastJs brand essence, C*pread
the *mileC connotes
happiness, contentment, satisfaction and
pleasure. The mascot *unny reinforces the
emotional aspects of the brand.
*unfeast immediately established itself as a
provider of innovative and distinctive
products 3 *unfeast .arie was launched in an innovative orange flavor and
the '*unfeast (ream ream' range includes new flavors as well as flavor
enhancers. The *unfeast (ream ream range is currently available in >
variants. The ompany has also introduced '*unfeast (ark 6antasy', a dark
chocolate and vanilla cream offering for the premium segment in select
markets.

8iding on the success of its initial offerings, IT also entered the milk biscuit
category with *unfeast .ilky .agic biscuits in the general milk and milk
cream categories. $part from milk which helps mental growth, these biscuits
also contain the finest quality wheat aiding physical growth. Both cream and
milk biscuits have received enthusiastic response from consumers.
In the last few years the *unfeast biscuits portfolio
has been enhanced to include salted crackers and
cookies. The '*unfeast *naky' salted crackers are
available in 0 unique variants vi&., hilly 6lakes and
lassic *alted. *unfeast's cookie offering, '*unfeast
*pecial' biscuits are also available in select
markets. The *unfeast *pecial range currently includes cookies in three
variants L Butter, ashew and crunchy oconut, as well as cream biscuits in
two variants L hocR and Irange. The recently launched *unfeast -olden
Bakery
offers the freshly baked taste of cookies in 4 variants 3 hoco3nut,
Butter3nut and Butter scotch.
The brand has also launched *unfeast +ice, a tasty and delightful offering of
crispy, sugar sprinkled biscuits.

Bith continued focus on health and nutrition,
*unfeast extended the biscuits portfolio to the
nutritional segment with the launch *unfeast
*achin's 6it 9it L a range of healthy products co3
created with *achin Tendulkar. It is for the first time in India that an icon of the
stature of *achin Tendulkar has been actively involved in the product
development process as co3creator of the *unfeast *achin's 6it 9it range. It is
the shared vision of *unfeast as well as *achin Tendulkar that products
under the *achin's 6it 9it range will enable create Champions of TomorrowC.
The launch range comprises two offerings 3 *unfeast *achin's %itamin and
!rotein enriched biscuits and *unfeast *achin's .ultigrain biscuits.
RESEARCH METHODOLOGY RESEARCH METHODOLOGY
R()(*+,- M(0-9;989?=
To achieve the objective of the project there was some information which was
to be gathered and accordingly some decisions had to be taken. This project
tries to study the potential Biscuits in the south region. 6or this purpose a

descriptive research design was used which would ascertain certain
magnitudes.
R()(*+,- P+9,())
R()(*+,- D()1?6) (ata was collected using a descriptive cross sectional
research design.
D*0* C988(,01963
S!&rce% !+ c!llec'$", Pr$#ar- Da'a
The primary data is collected using questionnaires. 6ace L to 3 face interviews
using structured questionnaire.

Defining Research Objective
Intensive Literature Survey
Research Design
C!!ectin f Data
"na!ysis f Data
Re#rt $riting
!rimary (ata) 6ace L to Lface interviews using structured
questionnaire.
*econdary (ata) *econdary data collected from various books,
journals, business maga&ines, newspaper articles, company
brochures, annual reports and internet articles.
*ampling .ethod) 8andom sampling
*ample si&e) consumer L 211 and retailers3 =1
$rea covered ) (elhi and +8


MARKETING STRATEGIES USED BY MAOR PLAYERS IN MARKETING STRATEGIES USED BY MAOR PLAYERS IN
INDUSTRY INDUSTRY
PARLE@S STRATEGY
Iver the period, !arle has grown from strength to strength 7 currently is a ?*
U 2;1 million conglomerate. It is in the business of manufacturing 7 marketing
biscuits 7 confectionery. .any of its products are market leaders in their
category 7 as recognition of their quality, have won >1 gold, 02 silver 7 4
bron&e .onde *election medals since 2:;2.
!arle enjoys D1H market share of total biscuit market 7 2= H market share of
total confectionery market in India. Biscuit brands like !arle3-, .onaco,
9rackjack enjoy strong brand imagery 7 have a wide mass appeal among
consumers. !arle has a variety of biscuits in various categories such as
-lucose, .ilk, *alted, *weet 7 *alted, reams, Bafer reams 7 assorted.
!arle is credited with starting new biscuit categories like .arie, -lucose, *alt
rackers, *weet 7 *alt. *ince then !arle has built these brands into domestic
giants 3 !arle3-, .onaco, 9rackjack, etc. In all these years of development
!arle has catered not only to the people of big cities but also to the masses of
remote Indian villages with populations up to 2111 people.
D1)0+1.70196 ) The great strength of !arle products today is the extremely
extensive distribution network. !arle biscuits 7 sweets are available to the
consumers even in the remotest places 7 smallest of villages with =11
population. !arle has nearly D111 number of wholesalers catering to =,0=,111
number of retail outlets directly or indirectly. These wholesalers 7 retail
outlets are serviced by 011 number of company field force 7 approximately
0111

number of wholesalers 7 salesmen. There are 42 depots and 76 agents
supplying goods to the wide distribution network.
!arle has the marketing philosophy of catering to masses, designing
products, which provide nutrition 7 fun to the common man, which is reflected
in the economy, 7 value3for3money they provide to the consumers. .ost
products !arle offers are in the lower 7 middle price segment. The economy
they offer helps generate large sales volumes for the products. (ue to this,
most of the products of !arle are skewed more towards semi3urban, rural
markets. !arle products understands the psyche of Indian consumers very
well which is borne out by the strong brand franchise the products enjoy
among masses.
BRITANNIA@S STRATEGY
Target customers to capture growth in each category by segmenting the
market both along conventional lines and through segmentation
The company's restructuring plan entails an investment of 8s 011 crore,
out of which 8s 4>.< crore was already spent in 2::;3:> and 8s 02.>
crore in the last fiscal.
BIF has also decided to exit all unrelated businesses and will focus only on
its foods and beverage operations along with moderni&ing packaging
systems, which has been undertaken by -roupe (anone.
Britannia is moving away from volatile commodity exports and focusing on
new overseas biscuit markets, notably in *ri Fanka and $frica.

Britannia, with help from (anone, is getting out of the image of being only
a biscuit company to a comprehensive foods and beverages company.
Britannia Industries, which is evolving itself into a premier food company,
has rearranged regional biscuit brands and has plans to introduce a slew
of products in the biscuits, cakes and dairy segment. $s a part of itJs
strategy to go in for brand clustering. Britannia has rearranged some of its
regional biscuit brands into clusters based on common consumer
segments. This exercise enabled Britannia to offer a more balanced buffet
of products and prices to consumers in the premium, medium and mass3
market segments, the officials added. 6or eg. The companyJs recent
launches of -ood .orning biscuits and %ita .arie-old in the medium and
Tiger !rotein in the mass segment.
PBritanniaW with very high brand equity would be maintained as a mother
brand.
Britannia Industries Fimited has chalked out an umbrella branding
strategy. The umbrella brand acts as a guarantee for the consumers and
the sub3brand gives focus and creates distinct images for its new product
categories and businesses and also get economies from the brand
building. 6or e.g. E-ood(ay'. $s a first step in this direction, the company
re branded its .erricake range of small cakes and re3launched the same
under the Britannia -ood(ay name in Manuary 0111. The company plans
to further grow the number of product offerings under the -ood(ay name.
It has already launched -ood(ay !lum ake. and also, company re3
launch of all its dairy products under the .ilkman umbrella brand name
during the year 0111.

The company is further extending the health franchise with the +utri3
hoice range of biscuits, which drives heavily from the Ehealth' plank.
CHANGING WITH TIMES
.anaging (irector *unil 9. $lagh.reali&ed that, the time had come to change
the rules of the game3quickly. Ais two3pronged agenda)
8einforce BritanniaJs strength in biscuits. *wamp the market by wider and
deeper distribution, and differentiate Britannia's products by re3positioning
every brand.
8educe BritanniaJs dependence on biscuits. (iversify into new businesses,
and turn Britannia from a biscuits company into a foods company.
BIF as a part of itJs expansionGmoderni&ation exercise, with the help of itJs
6rench partner, -roupe (anone. In ':=3:<, the company added new
packaging systems for its cakes and bread range, a new manufacturing
unit at hennai for its Fittle Aearts range and an integrated manufacturing
unit at (elhi for its *wiss roles range..
To achieve its vision, diversification strategy was followed. !rior to 2::;,
Britannia was perceived as a bakery products company, so in order to
change this perception in the minds of consumer and evolve Britannia as
a premier food company repositioning of the company as a food company
was carried out through a brand3building exercise, which was initiated in
2::;.
Thereafter, Britannia launched a re3engineering exercise to make the
brands more contemporary, robust and youthful,

Iver the past last couple of years, it trimmed down its wide product
portfolio and started to focus on value3added products instead of low3
margin products. The company rationali&ed its products portfolio by
pruning the products from 4= to 0=.
$lso, it initiated a host of measures including a new logo to refurbish its
brand image, re3launching its brands and repositioning its products. This
gave some stability to its earnings and is likely to improve the earnings in
the long term. In 2::; the company got for itself a new corporate identity
and value statement, P"at Aealthy, Think BetterW. BritanniaJs new logo
consisted of the companyJs name and the slogan.
In what it calls Iperation *torming to boost rural growth, after recogni&ing
the potential of the rural segment Britannia has used low3priced Tiger
brand biscuits extensively as the vehicle to tap this segment. Bhat were
previously urban brands, like .arie-old and =13=1 are now traveling the
population strata. Britannia has gone the AFFs way by putting up wall
paintings, and participating in fairs and festivals
"very .arch, biscuit sales fall by nearly 41 per cent. It is a seasonal quirk
that biscuit3makers like Britannia have learnt to live with. But, as the run3
up to the Borld up began in 6ebruary 2:::,Britannia sensed the
opportunity to boost its sales. It came up with a PBritannia 9hao Borld
up MaoW. ontest Britannia spends a whopping 8s.21 crore on this
promotion the single biggest promotion ever in Indian marketing history. In
this Britannia included all of the 2< biscuits brands.. $nd, as it turned out,
the company's volumes did, eventually, grow by 01 per cent between
6ebruary and $pril, 2:::, versus the industry's ; per cent.

Implementation of modern management information systems had
brought about an increase in the span of control, de3layering and
restructuring.

"UESTIONNAIRE "UESTIONNAIRE DATA ANALYSIS DATA ANALYSIS



APPENDICES APPENDICES
CONSUMER "UESTIONNAIRE
$-")
2=341 ,ears 413D1 ,ears D13=1 years
above =1 years
*"X) .ale 6emale
I?!$TII+)
-ovt. *ervice *elf3employed
orporate "xecutive *tudent
Ithers /specify YYYYYYYYYYYYYYYYYY5
.$8IT$F *T$T?*) *ingle .arried with children
.arried without children
$%"8$-" .I+TAF, I+I."G$FFIB$+"
Z8s. 4111 8s. 41113<111 8s. <111321111
8s. 21111 3 01111 [ 8s. 01111
#2. Bhich brands of biscuits do you generally consume@
Britannia !arle 9elloggs
!riyagold Bakemans *mith9line Beecham

i .ex e
#0. Biscuits are generally consumed at)
.orning with Tea
$fternoon with snacks and tea.
"vening with tea
Iccasionally
+o 6ixed time
#4. +ame any other five biscuit brands that you can recall@
2.YYYYYYYYYYYYYYYYYYYYYYYYYY 0. YYYYYYYYYYYYYYYYYYYYYYYYYY
4. YYYYYYYYYYYYYYYYYYYYYYYYYY D. YYYYYYYYYYYYYYYYYYYYYYYYYY
=. YYYYYYYYYYYYYYYYYYYYYYYYYY
#D. Aow frequently do you buy biscuits@
!er day Beekly .onth
#=. Bhich flavor of Biscuits being bought the most@
-lucose hocolate .ilk
oconut "laichiGBadam Irange

#<. 6actors on which the purchase decision of a particular brand is made
according to its importance /23most important, ;3least important5
2 0 4 D = < ;
Brand Image
$dvertising
6lavour
$vailability
!rice
!ackaging
!romotional
*chemes
#uantity G *i&e
#;. 8ank the following companyJs brands of biscuits on the above mentioned
attributes. /8ank them on a scale of 23;/23rated best, ;3rated worst5
$ttributes Britannia !riyagold !arle Bakeman *mithkline
Beecham
9elloggs
Brand Image
Taste
!ackaging
!rice
6lavor
$vailability
#uality
#>. If a particular brand is not available with the retailer, you will 3
(rop the idea of buying a chocolate
-o to another retail outlet
Try another /competitorJs5 brand
#:. If your favorite brand is a few 8s. expensive than it is, you would still
go for it.

,es +o
#21. $ sale promotion scheme like 8s. 0G3 off, 21 gms extra, etc. would affect
your purchase decision.
,es +o
#22. .ost of my biscuits purchases are pre3planned.
,es +o
#20. If the price of your favorite brand is reduced, you will buy more of it@
,es +o
#24. Bhich type of promotional *trategies do you prefer@
Buy one get one free.
"xtra #uantity for same price.
Fucky (raw
6ree (iscount
ollectibles
6ree ticketGentry for shows or events.

RETAILER "UESTIONNAIRE
+ame of the *hop
YYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYY
ontact !erson
YYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYY
$ddressG!hone +o.
YYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYY
2. Bhich brands of biscuits are available in your shop@
25 YYYYYYYYYYYYYYYYYYYYYYYYYY05 YYYYYYYYYYYYYYYYYYYYYYY45
YYYYYYYYYYYYYYYYY
ED5YYYYYYYYYYYYYYYYYYYYYY=5YYYYYYYYYYYYYYYYY<5
YYYYYYYYYYYYYYYYY
0. Bhat are the average monthly sales of the Biscuits@
21113=112VVVVVVVVV.
=112321111VVVVVVVVV.
21127 above VVVVVVVVV.
4. Bhat biscuit brands are mostly sold@
VVVVVVVVV.VVVVVVVVV.VVVVVVVVV.
VVVVVVV

D. Bhich category of people are your major buyers@
Aousewives hildren Teenagers
=. Bhich are the top biscuit brands in terms of exist sales@
2. 0. 4. D.
1. In case not covered above. Bhat is the status of@
.oderate !oor
Britannia
!riyagold
!arle
BakemanJs
0. Aow do consumers ask for a biscuits@ /8ank them5
$sk by brand name $sk for a cheap
*pecify a price range -o for an expensive
9eep trying newer ones
3. Bhich of these three companies make it a point to)
/a5 -et a regular feedback
Britannia ,es +o
!arle ,es +o
BrakemenJs ,es +o
/b5 .aintain regular supply

Britannia sunfeast
!arle !riya -old
4. 8ank your profit margin for the following brands)
Britannia !riya -old
!arle BrakemenJs
9elloggs *mithkline Beecham
=. 6or your opinion which attributes do consumers prefer in purchasing a
biscuit@
!rice
6lavor
Brand Image
<. If the consumer does not ask for a specific brand then which one would
you offer him@ Bhy@

BIBLIOGRAPHY BIBLIOGRAPHY

!hillip 9otler, .arketing management L $nalysis, !lanning, Implementation
and control /22
th
"dition5
+amakumaki and 8amaswami, .arketing management
Feon -. *chiffman and 9anuk, onsumer Behaviour /:
th
"dition5
Business *tandard, May 05, 2005
6inancial "xpress, April 2005
Business Fine, Thursday, No 20, 200!
The "conomic Times, "e#, 200!
The "conomic Times, $an, 200%
The "conomic Times, &ct '', 200%
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