Sri Sharada Institute of Indian Management Research

7Institutional Area , Phase- ll, Vasant Kunj , New Delhi 70 India Tel:26124090/91 Fax :26124092 Email:[email protected] Website:www.srisim.org

Project report on Sales and Distribution system of Britannia

Submitted to:Prof. Sanjiv Sarin

Submitted by:Avijit Prasad 20100105

PGDM(2010-2012)

Deceleration

I Avijit Prasad Student Of PGDM 2ND Year( Roll-no 20100105) here by declared that the project namely sales and distribution system is original and bonafide work solely perform by me for partial fulfillment of the requirement of PGDM course of Sri Siim. For performing this, lot of study was carried on various Practical Espouser and Field Research.

Acknowledgment

It is well established fact that behind every achievement lays on unfathomable sea of gratitude to those who have extended their support without whom the project would never have come into existence. With deep sense of gratitude, I acknowledge our Rev. Swami Dr.Parthasrathy jee CMT and MD who had gave me this opportunity for doing this project as well as also gave me this chance for get the practical or field exposure in my life. With respect i would like to thanks my faculty guide prof. Sanjiv sarin marketing faculty of our Institute , who also guiding for completing my project report ,who has always been a source of inspiration to me and constantly implanted her useful guidelines, experience and provided her valuable time in the completion of this project. During the entire period of my training, I received endless held, support and cooperation from all the faculty guide of Sri siim and my industry guide . I think my report would be incomplete if I do not convey my grateful thanks to them. Though it is difficult to say that I have achieved what I wanted to present, but within the circumstances and various limiting factors, I have tried to give my best. Date: ()

PREFACE
To start any business the success entirely depends on the marketing research done about the particular and the consumer attitude towards the product. Marketing research plays a vital role in a business to make it success. We have tried to put our best effort to complete this task on the basis of skill that we have achieved during our studies in the institute. We have tried to put our maximum effort to get the accurate statistical data. However we would appreciate if any mistakes are brought to us by the reader.

Britannia Industries Limited is an Indian company based in Kolkata that is famous for its Britannia and Tiger brands of biscuit, which are popular throughout the country. Britannia has an estimated 38% market share. The Company's principal activity is the manufacture and sale of biscuits, bread, rusk, cakes and dairy products.

History
The company was established in 1892, with an investment of Rs. 295.[2] Initially, biscuits were manufactured in a small house in central Kolkata. Later, the enterprise was acquired by the Gupta brothers and operated under the name of "V.S. Brothers." In 1918, C.H. Holmes, an English businessman in Kolkata, was taken on as a partner and The Britannia Biscuit Company Limited (BBCo) was launched. The Mumbai factory was set up in 1924 and Peek Freans UK, acquired a controlling interest in BBCo. Biscuits were in big demand during World War II, which gave a boost to the companys sales. The company name finally was changed to the current "Britannia Industries Limited" in 1979. In 1982 Nabisco Brands Inc., USA became a major foreign shareholder. Kerala businessman K. Rajan Pillai secured control of the group in the late 1980s, becoming known in India as the 'Biscuit King'. In 1993, the Wadia Group acquired a stake in ABIL UK, and became an equal partner with Groupe Danone in Britannia Industries Limited.

Growth and profitability

The company is growing at a steady rate, and is currently profitable. Between 1998 and 2001, the company's sales grew at a compound annual rate of 16% against the market, and operating profits reached 18%. More recently, the company has been growing at 27% a year, compared to the industry's growth rate of 20%. At present, 90% of Britannias annual revenue of Rs2,200 crore comes from biscuits.

Britannia

NutriChoice

Oat

Cookies

For the first time in India we have Britannia NutriChoice 'Diabetic Friendly' Essentials specially designed for people with diabetes. There's no longer a need to avoid snacks or go hungry while traveling or at work. Rather approach snacking in a healthy way with our Oat Cookies. Britannia NutriChoice Oat Cookies are scientifically created to suit the special lifestyle and nutrition needs of diabetics to manage extreme swings in blood sugar. They are tasty, crunchy and convenient option for those mid-meal pangs. In addition, the oat fiber lowers rise in blood sugar, helps control blood cholesterol and helps you feel satisfied and active for longer.

Britannia

NutriChoice

Ragi

Cookies

For the first time in India we have Britannia NutriChoice 'Diabetic Friendly' Essentials specially designed for people with diabetes. There's no longer a need to avoid snacks or go hungry while traveling or at work. Rather approach snacking in a healthy way with our Ragi Cookies. Britannia NutriChoice Ragi Cookies are scientifically created to suit the special lifestyle and nutrition needs of diabetics to manage extreme swings in blood sugar levels. They are tasty, crunchy and convenient option for those mid-meal pangs. Ragi helps lower blood glucose levels and in a rich source of magnesium, which is instrumental for the production of important enzymes. Our Ragi Cookies are a good source of fiber, both soluble and insoluble, for heart and digestive health. Veg Cakes

Britannia Veg Cakes is every vegetarian's dream come true! 100% vegetarian cake with all the softness and delight a cake should have. Every slice is soft and fluffy, stuffed with real fruit bits, to give you a cake that is truly delicious, down to the last slice. Add to this zero cholesterol and a 3 month shelf life and you have a healthy, convenient snack to enjoy any time, anywhere. Grab Flavour: Price Nutrichoice a pack of Britannia Veg Cake Twisty 15/today. Masti ka Green Signal! Fruity pack. Kit

and

sizes:

Rs. Health

for

75 Starter

gm

2010 - Britannia Nutrichoice launches a New Year pack - the Nutrichoice Health Starter Kit . Created for everyone who makes a New Year resolution to become healthy and does not follow through on it. The Health Starter Kit contains a range of healthy biscutis - 1 pack each of Nutrichoice Hi-Fiber Digestive, Nutrichoice 5 Grain and Nutrichoice Nature Spice Cracker. It also has a one week free pass to Talalkars gym that entitles every consumer to one week free trial of any Talwalkars (TBVF ltd) gym across the country. In addition to this the pack also contains a Fit Sip Sipper and a fitness chart. All this for only Rs 100. NutriChoice 5 Grain

Most consumers believe that to in order to stay healthy one needs to make certain compromises on some good things in life. Whether it is missing that extra hour of sleep over early morning exercise, or eating unappetizing foods over that extra oil-dripping samosa. At the same time most of us agree that good nutrition cannot come from one kind of food alone, but from a healthy combination / assortment of several healthy ingredients put together. Britannia NutriChoice 5 Grain Biscuits are a perfect answer to those looking for healthy eating options without as much making a compromise on taste, or convenience, or health.

Because Britannia NutriChoice 5 Grain biscuits are made from 5 carefully chosen healthy cereals (Oats that help reduce bad cholesterol, Corn which promotes heart health, Ragi a good source of both Calcium as well as Fibre, Rice low in fat, and Wheat that provides wholesome energy). These biscuits are delicately sweetened with natural honey, and come in a unique large oval shape. It is this large size and the healthy combination of the ingredients, that make it an ideal hunger buster for those in-between meals time hunger. Britannia NutriChoice 5 Grain biscuit pack contains several small single serve pocket meals packs, so that one is never far away from pacifying hunger on the move. So whenever you miss your breakfast, or succumb to those unhealthy evening snacks, you can relish the goodness of health with Britannia NutriChoice 5 Grain biscuits. Tiger Banana

Britannia is committed to help secure every child's right to Growth & Development through good food everyday. Purposefully taking forward the credo of 'Eat Healthy, Think Better ', we have launched a new variant under our power brand TIGER - TIGER BANANA - power packed with IRON ZOR & and with the delightful taste of banana. IRON ZOR helps make mind sharper and body stronger. A Rs.4 pack has as much IRON ZOR as that in 1 kg of Banana. R&D in Britannia has spent considerable time to develop this nutritious and delightful snack for children. Britannia Tiger Banana packed with IRON ZOR and goodness of Banana is accessible to all, being available in convenient packs priced at Rs.2, Rs.4 and Rs.10.

NutriChoice

SugarOut

Sounds like yesterday when people commented that healthy foods meant "compromising on the taste." NutriChoice SugarOut is the most novel product range to have been introduced in the market. The product is not just sweet but tastes great, and yet contains no added sugar. This is because NutriChoice SugarOut is sweetened with "Sucralose," derived from sugar, which provides the same sweetness as any other biscuit, without the added calories of sugar. This range is available in 3 delicious variants namely Litetime, Chocolate cream, and Orange cream, targeted towards all health sensitive people. It is also relevant for consumers with sugar related ailments. We are sure that you will be pleasantly delighted with its great taste and equally surprised to know that it has no added sugar. Don't be taken for a ride when you read "Sugar Free" label on many biscuit packs marketed in

India or abroad. Even with 100% no-added sugar, wheat-cereals in biscuits have their own natural sugar content. Britannia has chosen to represent these biscuits with "No Added Sugar" claim, as there is no added sugar in the processing of NutriChoice SugarOut.

NutriChoice

Digestive

Biscuit

Nothing can be more difficult than making small efforts in our daily life towards healthy and active living. 24/7 we are engrossed in our busy schedules; skipping meals, missing walks, along with inadequate sleep and frequently eating-out, all take a heavy toll on our health. At least with the new and improved NutriChoice Digestive Biscuit, we have one less thing to worry about. Made with 50% whole-wheat and packed with added fibre (10% of our daily dietary needs), these delightfully tasty biscuits are amongst your healthiest bites of the day. In your next visit to a shop just look out for its Golden-green international carton pack. Try one Treat and you'll know that you've made one smart choice NutriChoice. Rollz

Fruit

All kids who have relished the yummy creamy treasures of Britannia Treat in exciting flavors, have yet another reason to celebrate! Britannia Treat launches the amazingly yummy Treat Fruit Rollz!! These tasty soft rolls are filled with real fruits and provide a healthy yet mouth-watering treat to the kids. Fruit Rollz comes in four masti fruit flavours - Juicy Apple, Strawberry Surprise, Tangy Orange and Delicious Dates! Want to know a little secret? They make the best tiffin treats! So during snack time what better than to munch on the delicious and healthy Fruit Rollz and discover the yummy fruit flavor from within the shells. Keeping up with Britannia's platform of 'taste bhi, health bhi', Fruit Rollz is indeed a yummy snacking option for kids, while keeping the Moms assured about the goodness provided by the fruit filling. So New go on and treat Britannia yourself to the Milk lip-smacking snack! Bikis

Milk Bikis, the favourite growth partner of Kids, now brings greater value and delight to all with its new product and pack design. Recently re-launched in its existing Southern & Eastern markets, and extended across India, the new Milk Bikis is all set to add excitement and appeal to nutritious food. Whoever said that good food needs to look dull and boring, will just have to take a look at Milk Bikis. With a unique and attractive honeycomb design and an enhanced product experience, the new biscuit prompts the Kids will love it reaction amongst mothers. The milk goodness in the recipe is now enhanced with SMART NUTRIENTS 4 vital vitamins, iron and iodine, proven to aid mental and physical development in growing kids. The premium packaging, besides

appealing to kids, also ensures that the biscuits remain fresh and crisp. So, whether its breakfast time or snack time at school, rest assured that kids will look forward to munching these crunchy, milky biscuits which even helps in their development. And yes, adults wont be far behind in reaching out for a pack!

INTRODUCTION
Incorporated in 1918 as Britannia Biscuits Co.Ltd in Calcutta Jointly controlled by Nulsi Wadia group and Groupe Danone of France, (holding 22% stake) Market leader in the organized biscuit and bakery product market. Focus on value added products instead of low margin products. Around 70 production facility across INDIA Rationalized its product portfolio from 35 to 25 Ranked highly on the top 100 FMCG brands. Biscuits contribute to 80% of the total turnover. Leader in 4,000 crores biscuit market with 30% of the total share. Other products include breads and cakes. Diversified in dairy products which include cheese, butter, dairy whitener etc.

THEORIGINOF 'Eat Healthy, Think Better'

Consumers seek foods that complement their lifestyles while offering convenience, variety and economy, over and above health and nutrition. Britannia had the ability to resonate with the changes in consumer needsneeds that have varied significantly across its 100+ year epoch IN 2002 Re-birth - new corporate identity'Eat Healthy, Think Better' lead to new mission:'Make every third Indian a Britannia consumer. Britannia saw the writing on the wall. Its"Swasth Khao Tan Man Jagao" (Eat Healthy, Think Better) encapsulating the core essence of Britannia healthy, nutritious, optimistic - and combining it with a delightful product range to offer variety and choice to Consumers. GOODIES SECTION!! Britannia offers products with a minimum cost of Rs.2 taking into consideration all its consumers.

SALES ORGANIZATION STRUCTURE

Zonal Branch Manager

Zonal Sales Manager

Zonal Sales Manager

Zonal Sales Manager

Territory Manger

Territory Manger

Territory Manger

Distributor

Distributor

Distributor

Distributor

SALES STRATEGY
Sales are not Euclidean geometry a fixed system of concept. Rather marketing is one of the dynamic fields with in the management arena. The market faces continually a new challenge every day and companies must respond to it positively. Therefore it is not surprising that new market idea keep surfacing to meet new market place challenges. The market process is applicable to more than goods and services. Anything related to market including ideas, events, policies, prices and personalities comes under market strategy. However it is important to emphasize opportunity in the market through sales strategy. Following strategies adopted by the organization. A strong quality of the product and customer satisfaction: Customers always believe in good quality product. in my survey I found that in percentage term more people is quality conscious and not price conscious. Customer satisfaction is very important part of the organization that at any cost they have to fulfill. A growing relationship with customer and customer retention: Nowadays a good relation with customer is very important for organization. Sale is totally depending on the relation with the customers. Customer's retention is also a major aspect for growing business. It means keep the old customer and try to make new customer. Focus on competitors activity: Every organization should must be careful about its competitors step, because they can disturb the growing sales process of the organization. A growing emphasis on global thinking and local marketing planning: Companies are increasing by pursuing market beyond their borders. When they enter other countries they must follow the tradition of that country and also they make plan for local market that which type of product has more demand and how can it run in the market.

Promotional Strategy Promotional idea is very important. Organization provides some schemes or rebates to retailers or consumers. They make advertisement according to convenient of the people and the feature of the product. So on the basis of marketing strategy a organization runs in the market. It is several types of which makes helpful to increase sales and turnover of the organization.

SALES BUDGET
Sales budget Budgeted units sales Selling per unit Total sales April 65000 10 650,000 May 100,000 10 1,000,000 june 50,000 10 500,000 quarter 215,000 10 2,150,000

Schedule of expected cash collection

February sales (10%) March sales (70% , 10%) April sales (20% , 70% , 10%) May sales (20% , 70%) June sales (20%) Total cash collection April 26,000 280,000 130,000 ----436000 May 40,000 455000 200000 ---695000 June Quarter 26,000 320,000 650000 900000 100000 1996000

65000 700000 100000 865000

Budgeted merchandise purchased

Budgeted unit sales Add: desired end ending inventory Total needs Less: beginning inventory Required purchases Cost of purchases at 4 per unit 40% of the next month units sales April 65000 40000 105000 26000 79000 316000 May 100000 20000 120000 40000 80000 320000 June 50000 12000 62000 20000 42000 168000 Quarter 215000 12000 227000 28000 201000 804000

Expected cash payments for merchandise purchased

Accounts payable April purchases May purchases June purchases Total cash payments April 100000 158000 -----------258000 May ----158000 160000 -----318000 June --------160000 84000 244000 Quarter 100000 316000 320000 84000 820000

Earnings unlimitedCash budget

April Cash balance 74000 Add: collection firm customer 436000 Total cash available 510000 Less: disbursements merchandise purchase 258000 Advertising 200000 Rent 18000 Salaries 106000 Commission of 40% of sales 26000 Utilities 7000 Equipment purchases -----Dividends paid 15000 Total disbursement 630000 Excess ( deficiency ) of receipts over (120000) disbursement Financing Borrowings 170000 Repayment ----Interest -----Total financing 170000 Cash balance ending 50000 May 50000 695000 745000 318000 200000 18000 106000 40000 7000 16000 ----705000 40000 June 50000 865000 915000 244000 200000 18000 106000 20000 7000 40000 ----635000 280000 Quarter 74000 1996000 207000 820000 600000 54000 318000 86000 21000 56000 15000 1970000 100000

10000 --------10000 50000

----(180000) (5300) (185300) 94700

180000 (180000) (5300) (5300) 94700

170000*12%*3/12=5100 10000*12%*2/12=200 Total interest=5300

DISTRIBUTION NETWORK
An extensive retail distribution network Has 2500 distributors in 2200 towns Caters to around 4,00,000 retail outlets

Factory

Depot

Distributors (Auth Wholesalers) Sub distributor

Retailers

FLOW OF DISTRIBUTION

Britannia factory

Wholesaler / Distributor

Agents

Retailers

Kirana stores

Big retail Units

Customer

MARKET SHARE OF MAJOR PLAYERS IN BISCUITS

Market share
GSKCH Others 5% 8% Bakeman's 8% Parle 20% Britannia 59%

SALES TERRITORY MANAGEMENT

Territory divided by ASM & SO. Depends on capacity of TSI in tones (volumes) & experience 1 PSM can be given to support the TS

TRAINING AND DEVELOPMENT The search for young, enthusiastic talent is always on at Britannia. The work culture at Britannia is characterized by strong performance focus coupled with resultorientation.

NurturingTalent An innovative company like Britannia is always on the lookout for innovative, young minds. The Management philosophy encourages nurturing of talent through grooming of bright and young entry-level managers. The organisational culture provides a perfect blend of fun and learning that helps in the overall development of talented individuals recruited into the system. Today, with a huge variety of professional institutions spread across the country, there is a broader canvas to choose from. The main sources of recruitment of Management Trainees are:

Business Schools (MBA) Engineering Institutes Food Technology Institutes ICAI/ICWAI/ICSI/ICFAI and other such institutes offering professional courses

An alternative route is for candidates to apply directly to Britannia or through a recruitment consultant. The distinguishing factor between MTs and other lateral hires would be in terms of their experience and qualifications. In this case, however, candidates may or may not have prior experience. For experienced candidates, 1 year or less would be the maximum cap to be eligible for the Management Training Scheme. Campus - Campus recruitment has two stages, viz. Summer Trainee Recruitment and Management Trainee Recruitment. Summer Training takes place for a period of two months where students from Business Schools and Functional Institutes (Engineering/Food Technology/Finance) work on projects with Britannia in the following functional areas - Marketing; Sales and Distribution; Operations and Supply Chain; Human Resource Management; Finance and Quality Assurance. Summer Trainees at the end of their training tenure are taken through an evaluation process to assess placement within the company as Management Trainees. This happens through a Pre-Placement Interview by a panel that assesses the candidate on his/her project and his/her potential to fit into the organization.

Management Training - Management Trainees are recruited on the basis of actual vacancies in the system. They are recruited either through Pre-placement offers made to exceptional Summer Trainees or through direct Campus Recruitment. MTs join the covenant grade as Management Trainee - (function), and are absorbed into the following functions - Sales and Distribution; Operations and Supply Chain; Human Resources; Finance and Quality Assurance. The Marketing function has so far been insulated from the Management Training Route as entry level marketing positions require knowledge of Sales or prior knowledge of Marketing (lateral route). The Program - Once MTs are on-board, they are taken through a series of carefully designed Training Modules that encompass almost all functions of the business. The Training Modules are interspersed with live projects in different functions to test their knowledge and problem-solving abilities. Ideally, any Management Trainee would need to complete at least 2 live projects related to his/her stream of interest and 1 live project in a related function or a function of choice. At the end of the training period, all MTs are assessed on the basis of their learning and project performances by a cross-functional panel consisting of Functional Heads. On successful completion of their Training Program, MTs are confirmed as Managers in their respective functions. The total tenure of Management Training is 18 months for a Technical Trainee (Engineer/Food Technologist) and 12 months for all other trainees.

PROFIT MARGIN

CF A

Purchases at 80 % of MRP

FACTORY

DISTRIBUTOR

WHOLESALE

Gives at 85 % of MRP
RETAILER

SWOT ANALYSIS

Strength Fulfill one of our Basic

Weakness Decreases nutritional value Increases the cost of food product Industry and technology requires high investment Regular usage of processed food can cause alteration in health

Requirement among Air , Water , Food, Shelter Widely accepted in all Generations Easily available in various forms Provide good Instant Remedy for hunger in the form of readymade food Preserves the non seasonal food and makes it available all

throughout the year

Opportunities Increase economy of India Generate employment opportunity Good quality of Goods Provide competition to foreign companies Improve living standard Provide goods to nation at cheaper rate

Threats Many companies are result oriented Increase in pollution Sometimes provide poor quality of product for more profit Lack of technology Unable to utilize all the resources efficiently

LATEST NEWS OF THE COMPANY

CHENNAI:The Nusli Wadia-promoted biscuit maker, Britannia Industries, has

decided to wind up its unviable Sri Lankan operations. Britannia had entered the Sri Lankan market in 2008 by launching a range of biscuits under the brand name Britannia Lanka. The company had decided to withdraw from the operations in Sri Lanka as they were not found to be viable. The right thing for a management to do was realized andrecognize something and act on it and it is precisely for this reason that the company decided to withdraw, Wadia told shareholders of the company recently. Britannia could not turn around its business in the island nation, thanks to stiff competition from the local and already established brands in that country, sources said. Britannia could still sell its brand in Sri Lanka by exporting its products and selling its through local channel partners, sources added. Britannia, as part of its overseas expansion, had set up shop in the island nation in 2008 by offering a slew of biscuits under the brand name Britannia Sri Lanka. Lankan biscuit maker Lucky land Biscuits were manufacturing the products for Britannia. The company then saw a high growth potential in Sri Lanka since the island nation has a very high per capita consumption of biscuits per annum. However, despite a general slowdown, Britannia is bullish on the West Asian market and invested significantly to promote its brands there. The West Asia business continued to be adversely impacted by the challenging global economic uncertainty and a real population decline in UAE, where it has sizable presence. Despite this, it revamped its marketing strategy and made significant brand investments that strengthened its competitive position, he said. Britannia is also fighting a war against escalating cost fuelled by a spike in commodity prices. The company addressed the cost challenge and reduced over Rs.70 crores in cost by consolidating operations, optimizing manufacturing units, reducing complexity and eliminating wastages in the value chain. Over the last four years, the company has eliminated approximately Rs.200 crores of cost and continued to drive that hard in the current year as well, Wadia said. Britannia is a leader in the domestic biscuit space and has clocked net sales of Rs.912.83 crores for the quarter ended June this year making a net profit of Rs.32.83 crores.

FUTURE PLANS OF THE COMPANY

Britannia plans Rs.200 crores expansion Britannia Industries is planning to invest Rs.200 crores over next 2-3 years to expand its production capacity.

The Nusli Wadia-Groupe Danone of France joint venture is also looking at acquisitions in overseas and domestic markets.

Vinita Bali, managing director, said the company would pursue a combination of organic and inorganic growth for few years.

She was talking to reporters after the 87th annual general meeting of the company.

Britannia formed a strategic alliance with Bangalore-based CCD Dairy Bread (P) Ltd last month.

Bali informed that Britannia would eventually increase its stake beyond 50 percent in the Bangalore company.

"CCD Dairy Bread is an instance. We are looking for more such acquisitions in India covering a larger domain.

But in the international market we will look at acquisitions in our core areas of biscuits and bakery," she said.

On future plans, she indicated that the company could enter into other areas of foods.

Earlier, addressing shareholders Britannia chairman Nusli Wadia said that the company wanted to diversify into other areas of foods from biscuits and cakes and become a total foods company.

Bali informed that Britannia had already launched Italian ice cream under the brand name Deluca in Chennai.

Objective
Getting brief idea about sales and distribution system of Britannia. How Britannia industry booming at very fast growth rate. Getting idea about its competitor in the market. How Britannia increasing it market share very fastly.

Bibliography
Naresh Malhotra. (2009):Marketing Research an Applied Orientation, 5th Edition, prentice hall of India. Phillip Kotler (2010): Marketing Management, 13th edition Pearson Education. www.scribd.com www.google.com practical research