MAKEOVER OF

BRITANNIA

GROUP 3

MARKETING MANAGEMENT CASE STUDY

INTRODUCTION

Britannia one of Indias Biggest Brands was started in1892, with an

initial investment of Rs. 295 as Britannia Biscuit Company limited.
Products ranging from the healthy and economical Tiger Biscuits to
the more lifestyle oriented Milkman Cheese
Britannia is the first bakery company in India to remove Trans fats
from its biscuits
Britannia innovates for strong presence in health and nutrition
space living up to its credo Eat Healthy Think Better.
The company name finally was changed to the current BRITANNIA
INDUSTRIES LIMITED in 1979.

INTRODUCTION (cont.)

Makeover of Britannia: A path less travelled

Reinvent itself
New corporate identity
Adopted a colourful and identifiable logo with a new base line - 'Eat
Healthy, Think better.
Kicked off a diversification exercise
Diversification was risky
BIL seemed to have fructified, at least in the short-run
According to a survey, BIL emerged as the number one food
company well ahead of competitive brands like Nestle and Cadbury.

Key insights driving their business

Affordable delight
Health and delight
Any time any where on the go
consumption
Indulgent delight
Diversification

Diversification Of BIL
Products

Britannia-for the people

Footprints of Britannia today

Sales and Distribution of

Britannia

Britannia two different kinds of distribution

networks one is for dairy products and other
one is Bakery products.
In Bakery products Britannia applies two kind of
distribution system. These are given below:
Mass Distribution
Selective Distribution

Mass Distribution

Selective Distribution

Selective distribution is done for premium products of Britannia. There are eight
SKUs, for which Britannia uses selective distribution.

These products are very costly and lie between the prices ranges of Rs. 150 to Rs.
200.

These distributions are done through the Merchandiser Team.

PROBLEM DEFINITION
BIL: Major manufacturer of Biscuits or bakery products

Diversification of BIL: To become major food and beverage company in addition to its bakery products.

WHY

Reasons: 1)16% growth rate of BIL sales was not good enough for a growing market like India,
especially in the foods segment.

2) Risk Mitigation: influenced by the threat of potential competition and reliance on biscuits alone
could be detrimental to its long-term interests.
3) A path less travelled
Increasing Business Size:

BIL was aiming at faster growth by expanding its business within the bakery segment and in select
synergistic areas.

BIL needed to project its future as a successful food company- a company that provided high quality
and tasty, yet healthy foods and beverages.

HOW:

Revamp the entire brand Concentrate on

the why rather than the what

Customers weren't really buying biscuits;

they were buying health, nutrition, and food.

Newness and innovation- Britannia needed a

more dynamic expression. So there was a
need to restage the logo, with the twin
objectives of communicating modernity and
dynamism.

The concept communicated perfectly BIL's

potential value from physical to mental
benefits.

BIL built on the company's already

successful brand.
BIL was already synonomous with
trust and quality, they leveraged this
to segment further in the food and
beverage industry
Attractive and Aggressive Marketing
for the new segments
BIL differentiated its brands by
bringing them under the 'Eat Healthy,
Think Better' banner and giving them
clearly-defined positioning.

Split portfolio to simplify handling-To ensure that the core business was not sidelined, BIL brought about
changes in the management structure until that there were two clear divisions: Bakery and Dairy-each
operating as independent profit centres
In regard to brand building, BIL followed the strategy of 'brand clustering'. The strategy was to let 'Britannia'
remain the mother brand under which a cluster of sub-brands would be present for specific product categories.
Revenue Management- Differentiated brands and differential pricing
BIL launched the 'Tiger' brand and positioned it as a 'healthforce biscuit' The 'Tiger' brand, Tiger Glucose and
Tiger Cashew Badam, BIL then focused on its core biscuit brands- Marie, Thin Arrowroot, and Milkman., For Milk
Bikis, targeted at children, BIL launched variants like Milk Bikis Funland, which were animal-shaped biscuits..
Thin Arrowroot was renamed Jacob's Thin, with its position as the low-calorie health biscuit, high-nutrition
brands-Thinlite, Cream Cracker, and Digestive under the Nutrichoice umbrella, targeting the fast-growing
health-conscious segment
Accordingly, BIL came up with trendier products like Little Hearts, Pure Magic, and Chekkers, targeting the
under-24 urban consumer, positioning them with statements they identified with. For example 'Direct Dil Se'
for Little Hearts, 'Full Of Taste And Fun' for Pure Magic, and 'For The Ups And Downs In Life' for
BIL re-positioned each one of its biscuit brands on a new platform and ensured that each brand had a base
statement making clear the 'higher order benefits' of the brand. BIL used combinations of price and
appeal to straddle every segment of the market, challenging all levels of competition.

Open to mergers and acquistions- BIL's presence was restricted to a few cities. In the
face of increasing competition, it decided to strengthen its bread business in the southern
states and was seriously looking for acquisitions and manufacturing tie-ups in that region. It
also planned to leverage the key strength of the daily distribution system of its bread
business in its new ventures like milk. With a view to boosting volumes, BIL also changed its
packaging strategy by launching biscuits in small sachets.
Distribution Channels Revamped - BIL simultaneously revamped its distribution channels,
increasing its retail distribution network to more than 1.20 million outlets.
Rural and Semi-Urban Market Penetration-More than half of the new outlets serviced,
were in the rural and semi-urban markets-a break from the past, when BIL's distribution was
distinctly skewed towards urban India.
Exploit Oppurtunity- BIL saw an opportunity in the dairy segment as it had only one large
player, Amul. Its strategy was to build on the strong affinity that Indian consumers had for
milk and milk products in its diary venture. BIL wanted to do in dairy products what it has
done in biscuits: cover all segments.

WHAT

Strong Brand
Equity
Well Positioned in
the market
Required
Infrastructure
Innovation
capabilities

PROBLEMS

Britannia's decision to makeover its brand image and diversify was delayed.
Breads (6% of the companys total revenue): BIL's presence was restricted to
a few cities. It planned to leverage the key strength of the daily distribution
system.
They were dependent on danones portfolio for their strategies and
products.For e.g. analysts pointed out, was that of 'Mini roule,' a Swiss roll
from Danone, which failed to take off, in India.
The biggest problem, for the 80-year-old BIL was that its name was strongly
associated by customers with biscuits (or more broadly bakery products).
The value-added dairy market which BIL had targeted was a minuscule 0.10
per cent of the market.

Key Learnings

Food is a large and a growing space there are always oppurtunities to grow and an already
established brand works well with customers

Higher preference for branded food due to quality and experience

Concentrate on the why rather than the what while selling your product adds emotional value

Newness and innovation

Leverage already existing brand value

Aggressive and Attractive Marketing

Split portfolio to simplify handling in terms of people management and to maximize profits

Brand clustering

Growth driven rising quality,consiousness and convenience seeking

Revenue Management- Differentiated brands and differential pricing

Willingness to invest in people,brand and infrastructure

Open to change with the market requirements

Thank You for your

time