Marketing Mix of Britannia and 4Ps

The Marketing mix of Britannia analyses the 4Ps of Britannia’s marketing strategy, which includes the Product, Price, Place, and Promotion of Britannia Industries Limited (BIL), which is a market leader in the Indian bakery and biscuit market. Established in March 1918, it has steadily grown and secured itself as one of the heavyweights of India. Its portfolio of brands includes Tiger, Good Day, Marie Gold, and 50:50. It became the first company in the East to use imported gas ovens. As a business, it flourished and acquired its reputation for quality and value.

Installing automatic plants in Calcutta and Mumbai helped increase production, and several small takeovers strengthened the company’s position. In 1997, the company had a mission change and identified a ‘eat good health, be healthy, think better’ advertising strategy they intended to pursue. In the same year, they joined the dairy product market and released a string of snacks with this philosophy in mind. Dairy products account for around 10% of the company’s revenue.

From 1998-2001, the company’s operating profits were 18%, as sales grew at a compound annual rate – against the market – of 16%. More recently, BIL has been seeing growth of around 27% per year, compared to the industry growth rate of about 20%.

About Britannia

• Type: Food and beverage company
• Industry: Biscuits, bread, dairy products, and snacks
• Founded: 1892
• Founders: JR D Tata and Nalin Das Mhatre
• Headquarters: Bengaluru, India
• Area served: India and international markets
• Current CEO: Rajneet Singh Kohli
• Number of employees: Over 20,000
• Major products: Biscuits, bread, dairy products, and snacks

Britannia Product Strategy

BIL offers a wide variety of edible goods. Bakeries set up in the 1960s at various locations around India ensured a constant supply of fresh bread. As the company began distributing biscuits from other smaller companies it had taken over, they started to manufacture and release their biscuits. Their main products include bread, biscuits, cakes, jam biscuits, rusk, and dairy products. They have continued to release a steady flow of products, for example, fruit bread or the dairy product Half/Half. 90% of their revenue, however, comes from biscuit manufacturing. Their combined factory capacity is some 433,000 tonnes per year. In 2006, the only Tiger biscuits brand in the company achieved total sales of $150 million. BIL’s annual revenue is around Rs 22 billion, nine-tenths generated through biscuit sales.

Britannia’s product mix 2023 encompasses a few dairy items and a broad range of edible products, focusing mainly on bakery and dairy products.

The new Product Mix of Britannia in 2023 is as follows (Source)

1. Biscuits: This is Britannia’s core product category, contributing significantly to its revenue. The company offers diverse biscuits, including popular brands like Britannia Tiger, Britannia Good Day, Britannia Nice Time, Britannia Treat, Britannia 50-50, Little Hearts, Bourbon, and Britannia Marie. These biscuits are available in various flavors and cater to different consumer preferences.
2. Bread and Bakery Products: Britannia has a long history of producing bread and other bakery items. The product range in this category includes different types of bread, fruit bread, and other bakery products.
3. Dairy Products: Britannia’s foray into the dairy segment includes products like cheese, butter, ghee, and curd. These dairy products are made possible through cooperative agreements with dairy firms.
4. Cakes and Rusks: The company also offers a variety of cakes and rusks, catering to different taste preferences and occasions.
5. Nutri Choice Range of Products: Britannia specifically focuses on health-conscious consumers with its Nutri Choice range, which offers healthier biscuit options.

Britannia’s product strategy is characterized by focusing on taste and nutrition, and it provides a range of options for healthier products to cater to India’s diverse consumer base.

Britannia Place Strategy

Britannia has been one of the market shareholders for cream biscuits in India for many years. It has also negotiated deals and concluded some foreign deals, such as working with Peek, Frean, and Company, which is a successful UK biscuit company, and also completed takeovers such as that of Parry’s in 1975, which enabled the company to distribute its goods to more people. The company was built up and was known for many years as ‘the Biscuit King.’ Britannia currently has an estimated 38% of the market share.

The company has also invested in its dairy products, and in 2001, announced a joint venture with the New Zealand Dairy, allowing it to produce cheese and butter, amongst other things. The company distributes its goods up and down the length and breadth of India. In 2007, BIL agreed to a joint venture with the Khimji Ramdas Group and acquired a 70% beneficial stake in the Strategic Foods International Company based in Dubai. As listed in the Brands Trust Report, the company has been voted one of India’s 100 most trusted companies. Britannia’s distribution network is extensive, covering both the urban and rural markets, although there’s an acknowledgment that rural penetration could be more substantial.

Britannia’s place strategy, crucial for its market presence and customer reach, includes these key elements:

1. Extensive Distribution Network: Britannia follows the Fast-Moving Consumer Goods (FMCG) distribution model, appointing distributors at strategic locations. This network ensures that its products are widely available across various markets.
2. Urban and Rural Penetration: While Britannia has a strong distribution presence in urban areas, it continues to work on strengthening its reach in rural areas, acknowledging the challenges of distribution in these regions.
3. Modern Trade Channels: The company handles current trade channels such as big retail chains (e.g., Big Bazaar, D Mart), ensuring a prominent presence in these high-traffic retail environments.
4. Breaking the Bulk Strategy: Britannia’s distribution channel follows a ‘breaking the bulk’ strategy, where large quantities are transferred from the factory to carrying and forwarding agents (C&F), then to distributors, and finally to retailers and dealers.
5. International Presence: Besides its strong domestic market, Britannia has also made strategic foreign deals and joint ventures, expanding its market share internationally. This includes collaborations with companies like Peek Frean (UK) and acquisitions like Parry’s, enhancing its global reach.

Britannia Pricing Strategy

Competitive pricing is the sole pricing strategy that Britannia uses. Parle is one of Britannia’s major competitors, so Parle G has remained unbeatable for decades. Amul is a strong competitor in dairy for Milk, Cheese, and other dairy-based products. In bakery products, you will find local competition and famous brands such as Monginis and other vegetable cake makers with their product lines. To stay above all of them, Britannia adopts a competitive pricing strategy. Thus, Britannia products are much better quality and reasonably priced. The pricing strategy and distribution have been so strong that people buy these products even at Railway stations and while traveling instead of buying local snacks.

Britannia’s pricing strategy exemplifies a blend of competitive and value-based approaches tailored to its diverse range of products in the online segment of the FMCG sector:

1. Competitive Pricing: In a highly competitive market, especially in the biscuit and dairy segments, Britannia adopts a pricing strategy that competes closely with its major rivals, like Parle and Amul. This approach helps maintain a strong market position without compromising market share.
2. Value-Based Pricing: While keeping prices competitive, Britannia also emphasizes the quality and value of its products. This strategy ensures that customers perceive Britannia’s products as offering good value for money, thereby justifying the price points.
3. Product Bundle Pricing: Britannia employs a bundle pricing strategy, particularly for family and bulk packs. This method provides a pricing advantage to consumers and encourages bulk purchases, thereby increasing sales volumes.
4. Price Discrimination Strategy: The company uses a price discrimination strategy, offering products at different price points to cater to various customer segments. This allows Britannia to attract budget-conscious customers and those willing to pay more for premium or health-oriented products.
5. Market Penetration and Skimming: Britannia might initially adopt a penetration pricing strategy for new products or market entries to gain market share. Conversely, for unique or premium offerings, it may use price skimming, setting higher prices initially and then adjusting them based on market response.

Britannia’s pricing strategy effectively balances significant market share and competitiveness with international players with the perceived value of its products, catering to a wide customer base with varied preferences and purchasing power.

Britannia Promotion Strategy

The most vital asset for promoting Britannia products is the product itself. The products are tasty and people like it. Thus, a pull is created directly by the product. However, today, no company can exist without promotions and advertising. The same is true in the case of Britannia as well. However, the advertising spending and promotional activities for Britannia are controlled because of the brand equity of Britannia products and the brand’s presence for almost a century in the Indian market.

The company uses most of the money through the usual advertising methods, including billboards, magazines, TV ads, and point-of-purchase advertising. In November 2012, BIL hired Salman Khan to endorse its Tiger range of products. The famous Bollywood actor promotes the core values of the Tiger brand range because of his dashing style and personality. Britannia has high advertising spending for products like Good Day and Bourbon, which are almost stars for the Britannia brand. However, the investment for marketing dairy products is minimal because many expenses must be made to distribute the products. Britannia has enough brand and clout in the market because of its constant presence in the sports industry in the last few decades, and its product has received a natural pull from the market.

• Relies more on pull than push.
• It has incredible brand equity due to its presence in the market for many decades.
• Concentrates on promoting biscuits more than any other product.

Some Recent Video ads and Print ads of Britannia are:

Introducing the All-New Original Britannia Bourbon… It’s Chocolate, Chocolate, Chocolate ? | HINDI – YouTube

Home – News And Media (Britannia.co.in)

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