Britannia biscuits

BRITANNIA BISCUITS

Group 1Anas Ahmad 01Rahul Javkhedkar 14Suprateek Gulia 17

COMPANY Started in 1892 with an initial capital of INR26538% market shareAnnual capacity of 433000 tonnesBrand names like ; Tiger, Good day, 50-50, Pure magic and many more

Intensive distribution 7000 rural distributors and looking to be present in every village

30 factories and 14 contract manufacturers Trying a lean distribution model with products reaching 1 million outlets

THE INDUSTRY INR145 billion industryEstimates of INR279 billion by 201955% sales from Rural markets85% penetration in Urban and 55% in rural markets72% of the bakery industry

THE MARKET

HIMACHAL BRITANNIA – 4.5 Cr PARLE – 2.5Cr SUNFEAST – 2Cr

DISTRIBUTOR VISIT

INFORMATION GATHEREDDistributor since 2014Brands – Britannia + 6Warehouse area – 1500 sq.ft. (50% for Britannia)Has a retail shop as wellHas 3 men working for himUses E-Rikshaw for shorter and mini tempo for longer distances

CONTINUED…Company generally accepts claim for damaged goodsInventory turnover – 15 daysCompany software – Ordering, Promotional schemesMonthly Sales Target – 6 lakhsCredit Period

Company – Advance (Monthly or fortnightly)Retailers – Credit 7-30 days (On an average 21 days)

CONTINUED…Frequency of distribution – Once a weekVisits each retailer once a week

For payment collectionMaintaining relations

MarginsDistributor – 4.5- 5%Retailer – 10%

Promotional SchemesFor example – 2% on 40 boxes

DISTRIBUTION STRUCTUREDepot

Distributor

Retailers Semi-wholesalers

Super Stockist

RPD

Manufacturer

PROBLEMS FACEDBrand has it’s own wayProduct not deliveredNo credit/ Retailer creditSmall order quantityNo other biscuit brand

INSIGHTS GATHEREDBrand powerOverheads- multiple brandsHassle-free returnsDuel roleDifference between Rural and Semi-urban area

Ticket SizePriorityProduct SizeProduct shape

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