Market Capitalisation Of The Major Brands Marketing Essay

Biscuits have ever been a favorite add-on to our bites bill of fare. Here in this study, I am traveling to analyze the biscuit market in India. The study includes different trade names in the biscuit fabrication class and their production, distribution, pricing, market portions etc.

With a entire turnover of 8000crore, India is considered as the 3rd largest biscuit fabricating state in the universe merely behind US and China. An industry classified into organized and unorganised sectors histories for 65 % gross from organized and 35 % grosss from the unorganised sector. Due to stiff competition from different industries, the industry expects a healthy growing of 21 % in the following financial. Around 90 % of the entire population consume biscuits. The ingestion of biscuits in India is more than the imports. India happens to be one of the premier exporters of biscuits besides. An industry which enjoys a 85 % incursion in Urban and 55 % incursion in rural countries has finally made it as the largest among all the nutrient industry in India gross wise. It besides happens to be the largest employment generator of all nutrient industries in India using about 4 lakhs people both straight and indirectly.

The current job which the industry is confronting is the recent hikings of natural stuff monetary values with the Government go oning to leverage a 12.5 % VAT. With the ingestion still lifting, this has given some dent to the net income borders. But still the dominant participants in this industry are playing good because of the strong client base they have built over the old ages. The top 4 participants of the biscuit fabrication industry are:

Britannia

Parle

Priyagold

ITC.

Besides these there are around 150 little and average graduated table mills in India. In this study, I would be analyzing the top 4 trade names in the biscuit fabrication industry.

Market Players major portion:

The tabular array below shows the market capitalization of the major trade names:

Market Players

% age Market Share

Britannia

38

Parle

30

Priya Gold

15

ITC

11

Others

6

A pictural representation of the major trade names market portion is as follows:

Britannia

: Logo

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: Motto

“ Eat Healthy. Think Better

: History

The company was founded in the twelvemonth 1892. Initially it was run in a little house in cardinal Kolkata. It started with an investing of merely Rs.295.Later on a celebrated lawyer general Nalin Chandra Gupta acquired it and it was run under the name “ V.S Brothers ” . Later on in 1918, an English man of affairs in Kolkata, C.H Holmes took over it and therefore Britannia Biscuit Company Limited ( BBCo ) was formed. During the Second World War the company had good gross revenues gross because biscuits were extremely demanded. Finally the company was changed to the current “ Britannia Industries Limited ” in 1979. In late 1980 ‘s, K.Rajan Pillai, a Kerala Businessman took control of the Britannia Industries Limited and subsequently on became known as the “ Biscuit King ” of India. In 1993, Wadia group acquired a interest in Associated Biscuits International ( ABIL ) and became an equal spouse with Group Danone.After accusals of victimizing Britannia, Pillai had a council chamber battle with the Wadia ‘s and Danone in 1995 and died.

In May 2007, there was an acquisition from Nusli Wadia ( Wadia Group ) that the Danone group had invested in a Bangalore based company thereby transgressing a proficient contract.Wadia group filed a instance against the Danone group and the consequence was danone discontinuing this line of Business.The trade was deserving about $ 200m and and the Wadia ‘s keeping the bulk interest of 50.96 % .Currently Britannia group president is Nusli Wadia.

: Key Facts

A few major facts of Britannia Industries are as follows:

Facts

Datas

Type

Public

Industry

Food Processing

Founded

1892

Headquarterss

Kolkata, WestBengal

Number Of Locations

300

Chairman

Nusli Wadia

Mendelevium

Vinita Bali

Merchandises

Bakery, Biscuits, staff of life

Gross

Rs.4670 crore

Net income

Rs.134 crore

: Merchandises

Some of the chief merchandises produced by Britannia are as follows:

Good Day

Tiger

Marie Gold

50-50

Choco-Chips

Jim-Jam

Cream Dainties

Time Pass

Choco-nuts

Small Heartss

Nutri Choice

Bourbon

Nice

Time

Pure Magic

Milk Bikis

3.5.1: Merchandise characteristics:

The chief characteristics of Britannia merchandises are:

All of Britannia merchandises are free from fat therefore providing to sensitive client demands.

Britannia merchandises are good for wellness. For first clip in India, Britannia ‘s NutriChoice Oat Cookies and Britannia ‘s NutriChoice Ragi Cookies are “ Diabetic Friendly ” and are particularly designed for diabetic people. Britannia was the first trade name which came up with merchandises for wellness witting consumers. Britannia ‘s Veg Cakes zero cholesterin and 3 month shelf life makes it a healthy, convenient bite to bask anytime. Nutrichoice 5 grain comes with 5 grain cereals which makes it an alone, healthy bites with an equal measure of cereals like – oats, maize, finger millet, rice and wheat.

Britannia ‘s merchandises are tasty. The biscuits and bars of Britannia are a front-runner for everyone.

Britannia ‘s top 6 power trade names contribute to about 80 % of its gross revenues. These trade names have a nice attractive packaging. Most of Britannia ‘s merchandises come in little and attractive packaging.

Most of the merchandises are of good quality. All the trade names of Britannia about have a shelf period of 3 months

Pricing:

The pricing scheme of Britannia is as follows:

Market – Initial incursion pricing for low cost merchandises like “ Tiger ” . “ Tiger ” happens to be the lowest cost merchandise in the full biscuit section. Because of the lower monetary value rural market consumers often shift to these merchandises. Britannia therefore was able to hold a larger market capitalization in the rural sector. The company here was non looking for short term net income but to hold a larger consumer base, increasing market portion and volume.

Product – For merchandises like “ Good Day ” and “ Treat ” Quality Leadership is followed.

During Festive Season like Diwali and Holi, Britannia gives particular discounted monetary values for its merchandises.

Below tabular array shows the pricing of different merchandises of Britannia:

Merchandise Name

Weight ( in gram )

Monetary value ( in Rs )

Britannia Good Day Coconut Butter Biscuit

180

35

Good Day

90

12

Good Day Choco Nut Cookies

90

15

Good Day

180

23

Marie Gold

337

23

Milk Bikis Milk Cream

89

15

Milk Bikis

128

10

Marie Gold

171

13

Marie Gold

69

5

Yummy Choco Cakes

145

22

Nutri Choice Hi Fibre

250

38

Treat choco

67

10

Pure Magic Chocolate Cream

150

20

Tiger Orange

80

5

Treat Jim Jam

100

14

Nutri Choice Hi Fibre

100

15

50-50

165

16

50-50 Maska Chaska

66

10

50-50

113

10

50-50

65

7

Nice Time

133

14

Promotion:

Brittania promotes its merchandises in assortment of ways:

Promotions through advertizements, telecasting, newspapers and magazines.

There are a assortment of gross revenues publicities that Britannia gives – a little battalion of 50-50 free for every “ GoodDay ” biscuit purchased. Small biscuits battalions are besides given free for some other merchandises purchased.

Gross saless Promotion is done during mega events like World Cup. Britannia had this beautiful gross revenues pitch during 1999 World Cup – “ Britannia Khao, World Cup Jao ”

They have a really good interactive site which gives an indebted cognition of each and every merchandise they are selling in market.

Topographic point:

Britannia ‘s merchandises are available all over India.

All the merchandises of Britannia are available everyplace i.e. both in rural and urban market.

Britannia merchandises are available in local kirana shops to big retail shops like Reliance, More etc.

Parle:

Logo:

Motto:

“ G means Genius ”

History:

Parle Products was established in the Vile Parle suburb of Mumbai, in 1929. It began fabricating biscuits in 1939. In 1947, when India became independent, the company launched an ad run, showcasing its Gluco trade name of biscuits as an Indian option to the British biscuits. The “ G ” in the name Parle-G originally stood for “ Glucose ” , though a ulterior trade name motto besides stated “ G means Genius ” . Parle-G biscuits were before called “ Parle-G for the Indian population ” .

Merchandises

The followers are the merchandises launched by Parle-G:

Parle G

Krackjack

Hide N Seek

Hide N Seek Milano

Monaco

Magix

Milk-Shakti

ParleMarie

Milk Shakti

Digestive Marie

Parle 20-20 Cookies

Parle is the largest maker of the glucose biscuits in India.Parle merchandises led gross revenues with a 35 % value portion in 2010. Parle ‘s flagship trade name KrackJack enjoys strong client trueness and incursion to rural markets. Parle biscuits are suited for all people of different age group.They have the largest figure of fabricating units i.e 14 in India. Their one-year turnover is around 2000 crores.

Pricing:

The different pricing schemes followed by Parle are as follows:

No monetary value rise even if there is no competition in the market. Parle merchandises are hence low cost merchandises. This besides adds to consumers believe and consumers remain loyal to the trade name.

Parle -G is sold for a really low monetary value of $ 1/kg

The borders for the merchandises are unbroken really low, merely at the local degree.

Following is the monetary value list of different merchandises of Parle:

Merchandise

Weight ( gram )

Price ( Rs )

Parle-G

19

1

Parle-G

44

2

Parle-G

93.5

5

Parle-G

231.5

12

Hide and Seek

25

5

Hide and Seek

50

8

Hide and Seek

100

14

Bournbon

100

10

Bournbon

200

18

Cocoa

25

5

Cocoa

65

10

Elaichi

90

5

Elaichi

180

10

: Promotion:

The advertizement gross that Parle spends for Promotion is about 2 % of the entire gross.

Parle endorses famous person like “ Aamir Khan ” for their runs.

Now lets analyse the promotional events Parle has launched for some of its major merchandises:

Parle-G – Its tag line is “ Hindustan qi Taakat ” . Parle used this tag line in Television and advertisement boards to advance its Parle-G trade name.

Hide and Seek – Its tag line is “ Tasty itna qi Dil Aajayee ” . Parle used this tag line in Television and advertisement boards to advance its Hide and Seek trade name.

Bourbon – Bourbon ‘s advertizement is really celebrated. It helps to increase the sale of merchandise and do it popular. It is besides helpful to do market leader at clip of new entryway. Chocolate cognoscentes will happen their fetish become more rewarding. Deliciously sugar coated these Bourbons come with a cocoa pick Centre, doing them an resistless enticement for all.

Topographic point:

In India Parle has 15 million retail mercantile establishments.

Parle Products flagship trade name “ Parle-G ” is sold in 2.5 million mercantile establishments.

Parle merchandises are being distributed by 8000 jobbers with their ain different gross revenues force.

Parle has a Gross saless Organization construction which is based n Geographies.

The logistics are handled by different squad.