MANAGERIAL ECONOMICS REPORT

ON
BRITANNIA

SUBMITTED TO
Dr. IRS SHARMA

SUBMITTED BY GROUP 13

S.No Name of the Student Enrollment number Seat number

1. S.Saroj 23BSPHH01C1698 04
2. Pydi sai sowmya 23BSPHHO1C1040 25
3. Hridey Sabarwal 23BSPHH01C0612 28
4. Pragathi joshi 23BSPHHO1C1524 27
5. Sri Nithin 23BSPHH01C1285 30
6. Taniya Mishra 23BSPHH01C1026 31
7. Kanakanchi 23BSPHH01C0004 32
Shanmukha Gargeya

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 TABLE OF CONTENTS
S.no Particulars Page
number
1. Introduction 3
2. Various categories of products from Britannia 4

3. Competition 7
4. 11
Britannia’s Product and price list

5. Selling 13
6. Distribution strategy 14
7. conclusion 16

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INTRODUCTION:

Britannia Industries Limited is a worldwide FMCG firm based in India that is part of the Wadia
Group, which is led by Nusli Wadia. It is one of India's oldest existing firms, founded in 1892
and located in Kolkata, and is well known for its biscuit goods. The company sells cookies,
breads, and dairy goods throughout India and around the world Beginning with the
circumstances surrounding its takeover by the Wadia Group in the early 1990s, the corporation
has been embroiled in a number of management-related disputes.However, it retains a sizable
market share and is profitable.

The company was founded in 1892 by a group of British business people with a $295 initial
investment.Biscuits were first made in a modest cottage in central Kolkata. Later, the Gupta
brothers, primarily Nalin Chandra Gupta, an attorney, bought the company and renamed it V.S.
Brothers. C.H. Holmes, an English merchant residing in Kolkata, joined as a partner in 1918, and
The Britannia Biscuit Company Limited (BBCo) was established. Peek Freans purchased a
controlling interest in BBCo and opened a factory in Mumbai in 1924. During WWII, the
administration of British India required a steady supply of cookies for British soldiers. For
several years, the Britannia Biscuit Company supplied biscuits to the British Army.Occasionally,
the company dedicated 95% of its capacity to producing biscuits for the armed forces. Biscuits
were in high demand during WWII, which helped the company's sales. In 1979, the corporate
name was changed to Britannia Industries Limited. In 1982, the American company Nabisco
purchased Peek Freans' parent company and became a major foreign shareholder. Britannia went
public in 1978, and its Indian shareholding had climbed to 62%, effectively establishing
Britannia as an Indian corporation. Associated Biscuits International Limited (ABIL) of the
United Kingdom owned 38% of the foreign stake.

With the assistance of French food giant Danone, textile billionaire Nusli Wadia of Bombay
Dyeing gained control of the company from Britannia's then-chairman Rajan Pillai in 1993.

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After acquiring a 25% stake in Group Danone, Wadia Group became the largest shareholder in
BIL in 2009.Treat Creme Wafers, a new category, was introduced in December 2018.
n October 2022, Britannia purchased a controlling share in Kenya's Kenafric Biscuits.[13] Varun
Berry was appointed Executive Vice-Chairman and Managing Director of Britannia Industries
Limited in September 2022, and Ranjeet Kohli was also appointed Executive Director and
CEO.[14] Britannia Industries Limited had a market capitalization of Rs. 1,08,992.90 crore as of
December 2022.

Britannia Industries signed a joint venture agreement in December 2022 with Bel SA of France
and Britannia Dairy Private Limited (BDPL) to develop, manufacture, and sell cheese products
in India and international markets. Bel SA purchased a 49% share in BDPL, a subsidiary of
Britannia Industries, as part of the joint venture for 262 crore and invested an additional 215
crore.arun Berry was appointed Executive Vice-Chairman and Managing Director in September
2022.Varun Berry was appointed Executive Vice-Chairman and Managing Director in
September 2022.With the launch of its new product, Treat Croissant, in August 2022, the
company expanded its product portfolio by entering the western snacking market. It also aired a
TV commercial starring Prabhu Deva, a choreographer, actor, and director.With the introduction
of its new product, Treat Croissant, in August 2022, the company expanded its product portfolio
by entering the western snacking market. It also debuted a television commercial starring Prabhu
Deva, a choreographer, actor, and director.

Various categories of products from Britannia

looking for a wide range of Britannia items. Britannia offers a variety of goods and is well known
all over the world. You have come to the proper spot if you're seeking for these many varieties of
biscuits and snacks, where you may learn about several Britannia items. Here you may learn about
different Britannia items including biscuits, bread, cakes, rusk, gift sectors, and dairy product
sectors.

Britannia product list and its brand range

The Britannia Products consists of the four sectors:

1. Biscuits Sectors
2. Bread, Cakes and Rusk Sectors
3. Gift Sectors
4. Dairy Products

Biscuits sector

Britannia Biscuits are offered at a fair price and are well-known around the world for their
deliciousness. A nutritious food that is readily available in all supermarkets and enjoyed by many
millions of people, biscuits are popular all the time.

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Britannia Biscuits are further classified under bello sectors:

1.1 Kids Nutrition

1.2 Treat or Luxury
1.3 Snacking
1.4AdultHealth

1.1 Kids nutrition

Everyone, whether they are young or old, loves biscuits. Britannia offers a large selection of
biscuits, allowing customers to select from a variety of these goods and take use of the advantages.
Types of biscuits included in the kid’s nutrition categories:
Britannia Tiger Biscuits which consist of Tiger Glucose, Tiger Krunch Chocó-chips Cookies,
Tiger Krunch Fruit & Nut, and Tiger Orange
Milk Bikis which consists of Milk Bikis Almond Cookies, Milk Bikis, and Milk Bikis with Milk
Cream.
1.2 Treat or Luxury
Everyone enjoys the many types of biscuits, whether they are young or old, consisting of cookies
with almond, butter, fruit, wheat, and milk. Britannia offers a large selection of these biscuits,
giving customers a number of options from which to pick and allowing them to take advantage of
the benefits offered by the Treat and Luxury Sectors. Children’s Nutrition Sectors:
biscuit varieties within the treat and luxury sectors: Britannia Cookies, Britannia Good Day
Biscuits, Britannia Nice Time Biscuits, Britannia Treat Biscuits and Britannia Pure Magic.
1.3 Snacking
One of the greatest Britannia Company goods is biscuits, which are eaten as snacks. Everyone
enjoys these treats, whether they are young or elderly, adults or children. Britannia offers a large
selection of these snacks, allowing customers to select from a variety of items and take advantage
of the perks associated with the snacking industry.
Various biscuit varieties for the snacking market:
· Britannia 50-50
· Time Pass
· Little Hearts
· Bourbon
1.4 adult health
The healthiest goods made by the Britannia Company are biscuits that are consumed by adults
because they include essential vitamins, minerals, oats, honey, fiber, ragi, five different grains, and
multigrain. Britannia offers a wide selection of these biscuits, allowing customers to select from a
variety of goods and take use of the advantages in the adult health sectors.

categories of biscuits under "adult health":- Britannia Marie Biscuits, Britannia Nutri Choice
Biscuits
2. Bread, Cakes and Rusk Sectors

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 Breads- On November 14, 2011, Britannia Bread introduced Health Breads to Delhi. These new
bread varieties include Honey & Oats Bread, Multi-Grain Bread, 100% Whole Wheat Bread, and
Multi-Fiber Bread. Bread was not consumed and there was just one unit in Delhi up till the year
1958. Further, Britannia was the first brand to provide 400 grams and 800 grams of plain white
sliced bread in the bread market in 1963. The fundamental motivation for the introduction of
excellent bread was to educate people about the idea behind it: "Eat Healthy and Think Better."
Rusk- Britannia introduced the toasted Rusk in the year 2005. This was Britannia's finest creation,
and it made for the nicest morning meal. Each mouthful of these rusk is created with the best
flavors and ingredients and cooked to perfection. The Suji Toast makes the greatest toasted Rusk.
Cake- Every child, adult, and member of every generation enjoys a delicious piece of cake. These
are goods that move quickly and are consumed quickly after being bought. All generations of
people can afford the pricing, which are quite fair.
Cakes are often offered at weddings, birthday celebrations, and special occasions like Christmas
and New Year's Eve, however they are occasionally provided for breakfast, snacks, afternoon tea,
or evening meals.
Types of Cakes: Bar cakes, Cupcakes, Chunk cakes, Veg cakes.
3. Gift Sectors
Britannia created the "Shubh Kaamnayein range," allowing for the sharing of presents and well
wishes with all of your friends, family, and relations. This occurred during a holiday season of the
year. The main holidays are Diwali, Christmas, Ganesh Festival, and New Year's Eve.
The "Britannia Classic Hampers" are filled with the finest biscuits available, like Good Day, Treat
Jim Jam, Bourbon, and Little Hearts, which make recipients happy and smiley. The primary goal
of Britannia's introduction of this present line was to make the 'Festival of Lights' a memorable
occasion for everyone by bringing people together through sharing, giving, and wishing loved ones
'Shubh Kaamnayein'.
This gift consists of Premium Assorted Cookies, Cookie Delight, Meetha Namkeen 2, Healthy
Gifts, Royale Special, Choco Delight 2, Veggie Delight, Meetha Namkeen 1, Choco Delight etc.
4. Dairy Products
Britannia Dairy Products are well-known around the world for their deliciousness and are offered
at fair and accessible prices. Many millions of people like consuming foods like butter, ghee, milk,
cheese, dahi, and healthy drinks like chocolate milk and badam milk, which are readily accessible
in all types of stores and can be purchased whenever, wherever, and every day.
Britannia Dairy Products are further divided into categories -Cheese, Butter, Ghee, Milk, Gourmet
Cheese, Dahi, Dairy Whitener, Actimind, TigerZor Choco Milk and Badam Milk.

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 Competition

Standalone

Name Last Price Market Cap. Sales Net Total

(Rs. Cr) Turnover Profit Assets

Nestle 22,622.30 2,18,114.53 16,865.06 2,406.45 2,489.20

Britannia 4,532.85 1,09,181.99 15,618.42 2,139.30 5,842.93

Adani Wilmar 352.3 45,787.68 55,262.45 607.23 10,113.11

GlaxoSmith Con 10,732.60 45,136.53 4,782.01 982.8 4,094.72

Jubilant Food 533.4 35,196.14 5,095.99 356.21 2,145.47

Hatsun Agro 1,186.45 26,428.03 7,246.97 165.86 2,888.62

Devyani Int 211.45 25,497.89 2,668.34 246.07 1,152.21

Zydus Wellness 1,615.70 10,281.05 251.48 66.42 4,034.28

Godrej Agrovet 492.5 9,466.38 6,884.44 303.64 2,816.55

Restaurant Bran 128.35 6,350.51 1,439.65 -71.8 1,894.54

Hindustan Foods 548.2 6,180.55 2,383.20 64.51 713.68

LT Foods 166.8 5,792.18 3,914.60 160.31 1,611.60

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 Bectors Food 948.05 5,576.19 1,264.32 76.25 630.71

Tasty Bite 16,226.55 4,163.73 475.66 30.21 319.36

Dodla Dairy 699.7 4,162.71 2,584.12 94.99 883.13

Barbeque Nat 691.2 2,695.60 1,073.78 6.72 448.23

ADF Foods 239.3 2,629.04 353.34 60.01 425.65

Parag Milk Food 199.25 2,338.71 2,853.20 68.49 1,345.15

DFM Foods 461.7 2,321.24 554.45 -24.76 244.15

Heritage Foods 237.9 2,207.62 3,208.67 65.89 863.17

Prataap Snacks 887.6 2,117.78 1,652.93 20.26 678.95

Vadilal Ind 2,578.80 1,853.60 896.71 71.94 486.28

Gulshan Poly 227.65 1,419.87 1,179.73 45.36 823.02

Prabhat Dairy 99.6 972.85 491.6 -120.11 458.35

Foods and Inns 171.4 918.65 977.35 47.24 651.03

Sukhjit Starch 431.95 674.79 1,435.25 70.14 780.14

IFB Agro 537.15 503.15 1,246.46 51 566.96

Annapurna Swa 282.7 464.25 160.17 7.14 81.93

Sheetal Cool Pr 424.6 445.83 340.26 20.45 179.47

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 Euro India Fres 147 364.56 142.97 1.21 103

Megastar Foods 293.7 293.81 267.53 9.62 103.48

Coastal Corp 268 286.19 -- -- -

KSE 697.65 223.25 1,609.88 -2.38 233.04

Future Consumer 0.85 169.75 51.73 -547.25 276.24

Dangee Dums 11 169.37 25.53 -0.63 30

Umang Dairies 69.2 152.26 292.83 -3.26 98.12

Anik Industries 39.8 110.46 118.1 5.07 311.09

Baba Agro Food 70 92.63 542.14 19.79 190.64

Tapi Fruit 195.2 81.39 20.51 -0.19 8.32

Nakoda Group 43.25 55.04 54.6 0.91 37.71

Kwality 2.2 53.1 120.42 -1,538.34 -850.54

COAST-RE 99.2 19.09 -- -- -

COASTPP 65 12.54 -- -- -

Soni Soya Produ 9.3 4.79 146.59 0.19 17.73

Source: https://www.moneycontrol.com/competition/britanniaindustries/comparison/BI#BI

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Britannia’s Product and price list

Product Category Weight Price (INR)

Marie Gold Biscuits 120g 25

Good Day Biscuits 100g 20

Bourbon Biscuits 150g 35

Tiger Biscuits 100g 15

NutriChoice Biscuits 100g 18

Treat Biscuits 75g 15

Little Hearts Biscuits 100g 15

50 50 Biscuits 100g 15

Milk Bikis Biscuits 100g 10

Cheese Dairy 200g 100

Butter Dairy 200g 50

Milk Dairy 1 litre 40

Curd Dairy 1 kg 40

Lassi Dairy 1 litre 30

Wholewheat Bread Bread 400g loaf 30

Brown Bread Bread 400g loaf 30

Milk Bread Bread 400g loaf 35

Toastea Rusk 100g pack 15

Nutrichoice Rusk Rusk 100g pack 10

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 Dark Fantasy Cake Cake 400g pack 150

Mini Rolls Cake 120g pack 25

Fruit Cake Cake 500g pack 200

Kurkure Snacking 50g pack 10

Uncle Chips Snacking 50g pack 10

Good Day Chunkies Snacking 50g pack 15

Britannia’s competitor's product price list

Company Product Category Weight Price (INR)

Parle Products Parle-G Biscuits 100g 5

ITC Foods Sunfeast Dark Fantasy Biscuits 100g 20

Nestle India KitKat Biscuits 45g 15

Amul Amul Butterscotch Cookies Biscuits 100g 20

Gopaljee Hide & Seek Biscuits 100g 15

Haldiram's Namkeen Mixture Snacking 100g 10

Balaji Wafers Kurkure Snacking 50g 10

Uncle Chipps Uncle Chips Snacking 50g 10

Bikaji Foods Bikaneri Bhujia Snacking 100g 20

ITC Foods Bingo! Mad Angles Snacking 50g 10

Lay's Lay's Classic Snacking 50g 10

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1. Product Categories: Britannia offers a diverse range of products, including biscuits, dairy
items, bread, rusk, cakes, and snacking options.Competitors also offer similar products, with a
focus on biscuits and snacking items.

2. Biscuits: Britannia offers a variety of biscuit options with different weights and prices.Parle-
G from Parle Products is significantly cheaper compared to Britannia's biscuits. Sunfeast Dark
Fantasy from ITC Foods is a premium biscuit option similar in price to Britannia's
offerings.Amul's Butterscotch Cookies fall in the mid-price range.Other competitors like Gopaljee
and Hide & Seek offer alternatives to Britannia's biscuits

3. Dairy Products: Britannia offers cheese, butter, milk, curd, and lassi.The price of Britannia's
cheese and butter is competitive.Milk, curd, and lassi are also priced reasonably.

4. Bread and Rusk:Britannia provides various bread and rusk options.Prices for Britannia's bread
and rusk are similar to each other and competitive with other brands.

5. Cakes: Britannia offers cakes in different sizes and price ranges.The Dark Fantasy Cake is
priced higher compared to other cake options, targeting a premium market segment.

6. Snacking Items:

Britannia's snacking options like Kurkure, Uncle Chips, and Good Day Chunkies are competitively
priced.Competitors like Haldiram's, Balaji Wafers, and Lay's offer alternatives in the snacking
category.

7. Price Comparison: Britannia's products generally fall in the mid-price range compared to
competitors.Parle-G stands out as a budget-friendly option, while some premium options like
Sunfeast Dark Fantasy and Dark Fantasy Cake are available.Britannia seems to focus on offering
a wide variety of products across different price points to cater to various customer segments.

8. Market Positioning:

Britannia faces competition from well-established brands like Parle, ITC Foods, Nestle, Amul, and
others in the Indian market.The pricing strategy appears to balance affordability and quality, with
both budget and premium offerings.

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9. Consumer Choice: Consumer preferences will likely depend on factors such as taste, brand
loyalty, and budget constraints. Competitors offer alternatives for consumers seeking different
tastes and price points.Overall, Britannia appears to have a strong presence in the Indian market
with a diverse product range. However, competition is intense, with various competitors offering
their own unique products and pricing strategies to attract customers. The key to success will be
meeting consumer demands while remaining competitive in terms of quality and pricing.

Selling

Britannia typically employs both traditional and modern marketing and distribution strategies to
sell their products. Here are some common elements:

1. Distribution Network: Britannia usually has an extensive distribution network to ensure its
products are available in a wide range of retail outlets, from large supermarkets to small corner
shops. This network includes distributors, wholesalers, and retailers.

2. Marketing and Advertising: To build brand awareness Britannia invests in marketing and
advertising extensively. This can involve television and print advertising, digital marketing, and
sponsorship of events or sports teams.

3. Brand Promotion: Britannia typically promotes its brand as a symbol of trust, quality, and
tradition. They often highlight their heritage and commitment to producing high-quality food
products.

4. Product Innovation: Like many food companies, Britannia continuously works on product
innovation to meet changing consumer preferences and demands. They may launch new products
or variations of existing ones to stay competitive.

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5. Retail Promotions: Britannia may run various promotional campaigns in collaboration with
retailers. These may include discounts, product combinations or limited hours to encourage sales.

6. Packaging: Attractive packaging and very informative. Britannia ensures its packaging is
attractive and conveys important messages to consumers.

7. Quality Assurance: Ensuring product quality and consistency is important. Britannia generally
maintains quality standards and complies with quality control procedures.

8. Distribution Efficiency: Good distribution and supply chain management is essential to meet
demand and reduce shortages.

9. Customer engagement: Britannia may engage with customers through a variety of means,
including social media, to collect feedback, resolve issues and manage relationships with the
quality of the customer's work.

10. Business expansion: Expanding into new areas and markets is often part of the strategy. This
may include access to international markets or access to unserved regions in India.

11. Sustainability and Health Focus: As consumers move more towards health and wellness,
Britannia can adjust its products and marketing strategies accordingly.

DISTRIBUTION STRATEGY :

Distribution strategy in the Marketing strategy of Britannia: Britannia Industries makes its
products available to more than 70 countries globally while it has 81+ manufacturing units in India
out of which 41 are Biscuit units, 13 dairy units, 12 bread units, 9 Rusk units and 6 cakes
units.Through these manufacturing units, Britannia makes 2.8 Cr packs per day which are
distributed to more than 36 lakh outlets through 51 depots, 3700 stockists and 900 trucks per day.

The stages:Britannia typically involve several stages:

Manufacturing: Britannia produces its food products in manufacturing facilities.

Warehousing: After production, the products are stored in warehouses.

Distribution Centers: Britannia may have distribution centers strategically located to facilitate the
movement of products to various regions.

Primary Distribution: Products are transported from distribution centers to regional distribution
hubs or directly to distributors. This can involve a mix of company-owned vehicles and third-party
logistics providers.

Secondary Distribution: From regional hubs or distributors, products are further distributed to
wholesalers, retailers, and sometimes directly to larger retail chains.

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Wholesalers: Wholesalers purchase products in bulk from Britannia and distribute them to smaller
retailers.

Retailers: Retailers, such as supermarkets, grocery stores, and convenience stores, sell Britannia
products to end consumers.

End Consumers: Finally, consumers purchase Britannia products from retailers.

Britannia may use various strategies to manage this distribution channel efficiently, including sales
representatives, incentives for distributors and retailers, promotional activities, and inventory
management systems.

Evolutions in the model

Over the past three years, Britannia has continuously worked on improving its distribution model.
The latest iteration focuses on cutting down distribution time from three weeks to one day and
adopting a zero-day inventory model.Currently, there are close to 31 lakh retailers of Britannia
who use the wholesaler mode of distribution. Company executives are confident about bringing 2-
3 lakh retailers onto the direct network every year. The direct model will enable Britannia to have
greater control over the supply chain and also ensure easy availability of data for analysis. In
today’s day and age, the prevalence of data analytics has made data a valuable commodity with a
direct play on the company’s financial statements.

The new model aims to cut operational costs for all stakeholders by reducing the amount of safety
stock required. A Mckinsey report suggests that the direct distribution model could also reduce
working capital costs by 10 percent and distribution costs by 20 percent.

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CONCLUSION:

The Britannia report offers a thorough analysis of the business's activities and results. The study
makes clear that Britannia has excelled in a number of significant areas of its company.
The company's distribution efforts have been remarkably successful, to start. Both domestically
and abroad, Britannia has effectively grown its distribution networks. By ensuring that
Britannia's products are easily accessible to customers, this expansion has increased sales and
market share. In order to make its products available to as many people as possible, the
corporation must be able to effectively reach a large client base.
Second, Britannia's marketing techniques are significant. To keep a competitive edge, the
corporation has constantly made investments in product positioning and marketing. Consumers
have responded favorably to Britannia's focus on product quality and innovation, which has
resulted in strong brand loyalty and increased sales. This strategy shows that the company has a
thorough awareness of customer preferences and the capacity to adapt to changing market
demands.
The report also emphasizes the competition's substantial obstacle, though. Britannia competes
against both established competitors and newcomers in a highly competitive segment of the food
and beverage industry. Britannia must keep evolving and adapting to remain competitive. This
entails keeping an eye on consumer trends, keeping up with technical developments, and
investigating untapped markets or product categories.
Last but not least, even though Britannia has regularly produced profits, there is still potential for
improvement. The business should keep looking into ways to cut costs, broaden its product line,
and think about prospects for market growth. By taking these steps, Britannia will be able to
sustain high profit margins over the long run.
The managerial report for Britannia concludes by highlighting the organization's outstanding
successes in distribution, sales tactics, and profitability. It also highlights how crucial it is to
remain alert in tackling competition and aggressively look for development opportunities.
Britannia is well-positioned for ongoing success in the dynamic and intensely competitive food
market landscape thanks to its dedication to adaptation, innovation, and strategic decision-
making

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