Introduction Britannia, one of the premier food product company in India. Britannia started as a small biscuit company in 1892 and has grown to a household name. Britannia started its business in Calcutta (now Kolkata) with an initial investment of Rs. 295. From thereon, Britannia's business flourished acquiring a reputation for quality and value. Britannia Industries Ltd. has a number of awards and accolades in its name like : Forbes Global rated Britannia 'One amongst the Top 200 Small Companies of the World'. The Economic Times pegged Britannia India's 2nd Most Trusted Brand. Activities Britannia product line includes biscuits, snacks, packed milk, cheese, butter, buttermilk and yogurt. Britannia owns popular brands like: NutriChoice Sugar Out.
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Introduction
Britannia, one of the premier food product company in India. Britannia started as a small
biscuit company in 1892 and has grown to a household name.
Britannia started its business in Calcutta (now Kolkata) with an initial investment of Rs. 295.
From thereon, Britannia's business flourished acquiring a reputation for quality and value.
Britannia Industries Ltd. has a number of awards and accolades in its name like :
Forbes Global rated Britannia 'One amongst the Top 200 Small Companies of the World'.
The Economic Times pegged Britannia India's 2nd Most Trusted Brand.
Activities
Britannia product line includes biscuits, snacks, packed milk, cheese, butter, buttermilk and
yogurt. Britannia owns popular brands like:
NutriChoice Sugar Out.
NutriChoice Digestive Biscuit.
Treat Fruit Rollz.
New Britannia Milk Bikis.
Britannia Marie Gold Doubles.
Britannia 50-50.
Britannia Tiger Biscuits.
The Wadia Group (parent company of Britannia) along with Groupe Danone of
France has turned up to be an International FMCG Major specializing in Fresh Dairy Products,
Bottled Water and Biscuits/Cereals. One of the World leaders in the food industry, some of its
achievements are:
No # 1 worldwide in Fresh Dairy Products.
No # 1 worldwide equally placed in Bottled Water (by volume).
No # 2 worldwide in Biscuits and Cereal Products.
GROUPE DANONE three core business areas are Fresh Dairy Products, Beverages and
Biscuits and Cereal Products strives to improve the lives of people around the world by
providing them with better and value added food products. Its dominant position worldwide is
based on major international brands and on its rock solid presence in local markets (about 70%
of global sales come from brands that are local market leaders.)
Performance
Britannia has registered a turnover of Rs 21,993 million for the year ended 31st
March 2006-07. Britannia has posted Net Profit to the tune of Rs 1076 million for the year
ended 31st March 2006-07.
IMPORTANT PERSONS IN THE COMPANY
BOARD OF DIRECTORS
introduced in 1998 with favors such as mint, orange and chocolate. But it did not really succeed
in capturing the consumer’s attention. So after a few years it was re launched with just one
Mr.Nusli Neville Wadia
Chairman
Ms. Vinita Bali
Managing Director
Mr. Keki Dadiseth Director
Mr. Avijit Deb Director
Mr. A.K.Hirjee Director
Mr. Nimesh N Kampani Director
Mr. S.S.Kelkar Director
Mr. Pratap Khanna Director
Mr. Jeh N Wadia Director
flavor i.e. chocolate flavor with new packaging. After the re-launch it has started gaining
attention of its potential buyers and hence is in the growth stage of its life cycle. It has to fight
for its stand in the market since it faces competition from Britannia’s good-day choco nuts.
Packaging and Labeling
The time spent by a customer for picking up a product from a retail outlet is a few seconds;
therefore a package should appeal to a customer within such a small interval of time. In this,
both packaging & labeling play an important role in attracting customers both visually &
psychologically
Britannia -the 'biscuit' leader with a history-has withstood the tests of time. Part of the
reason for its success has been its ability to resonate with the changes in consumer needs-needs
that have varied significantly across its 100+ year epoch. With consumer democracy reaching
new levels, the one common thread to emerge in recent times has been the shift in lifestyles and
a corresponding awareness of health. People are increasingly becoming conscious of dietary
care and its correlation to wellness and matching the new pace to their lives with improved
nutritional and dietary habits. This new awareness has seen consumers seeking foods that
complement their lifestyles while offering convenience, variety and economy, over and above
health and nutrition.
Britannia saw the writing on the wall. Its "Swasth Khao Tan Man Jagao" (Eat
Healthy, Think Better) re-position directly addressed this new trend by promising the new
generation a healthy and nutritious alternative - that was also delightful and tasty.
Thus, the new logo was born, encapsulating the core essence of Britannia - healthy, nutritious,
optimistic - and combining it with a delightful product range to offer variety and choice to
consumers.
2006-07 was an exceptional year for Britannia with top line sales growing at 27.5%, making
Britannia the leader among FMCG Companies in terms of organic growth. It also saw the
Bread, Cake and Rusk business grow 54% to become a Rs. 2,000 mn business.
Top line growth was driven by investment in the fundamental growth pillars of brands
- renovating existing brands and launching new ones and expanding reach. With the segmented
and sharpened go to market strategy , Britannia’s brands now have greater availability in rural
markets and pervasive presence in modern trade.
In a fiercely competitive environment Britannia outpaced market growth and
Britannia brands continue to lead the market in every category, except for Glucose biscuits.
Britannia was ranked second among FMCG Companies in the Business World Most Respected
Company Survey2006.
Britannia's strategy of strengthening and sharpening its brands and liberating them from
existing formats and conventional biscuit archetypes has paid off. In that context, Tiger is now
more than a glucose biscuit and includes cream and coconut varieties. The Tiger Chota
extension draws on the kids snacking habit presenting biscuits as small, pop-able, snacks in a
pouch pack. Similarly, Treat added Fruit Rollz to its repertoire of delightful and indulgent
experiences for kids.
Innovation has shown its promise as a key business driver addressing several purchase and
consumption opportunities both in-home and out of home, as well as for gifting. Britannia's
focus on innovation has meant more new offerings (brands, product and pack forms) than the
rest of the industry combined. Prominent innovations include Chota Tiger, 50:50 Chutkule,
Treat Fruit Rollz, NutriChoice Digestive, NutriChoice Sugarout, Renovated Milk Bikis and
Chocolate Cream in the Tiger range.The Bread, Cake and Rusk portfolio was strengthened with
the successful national launch of Good Day cup cakes and extension of rusk to the south.
As a corporate , Britannia has worked for the benefit of all stakeholders -
shareholders, consumers, dealers, suppliers, bankers and employees. It has established an
excellent track record in terms of its financial performance and dividends distributed to its
shareholders . This has been adequately demonstrated with the Company's topline growing from
8, 478 Mn in 1998 to 23,171 mn in 2007, a growth of 173% over the last 10 years. The net
profit grew even more significantly at 273 % from Rs 289 Mn in 1997-98 to Rs 1,076 Mn in
2006-07, giving a CAGR of 15.72 %.
.
Company History - Britannia Industries
1994
- During the year, the bakery division launched `Bakers Choice' a sweet biscuit and `Thinlite' a
light semi-sweet biscuit aimed at fitness concious consumers.
1995
- Under the `Pure Magics' Umbrella, the company launched a new sandwich cream biscuit
with two-in-one flavour viz. double cream and this was well received in the market. In the cake
market, under the premium segment, the company launched with Groupe Danone's
technological input a Swissroll Cake Mini Roule which was also met with good response.
1996
- Marie gold biscuits registered quantum growth in volumes and milk bikis milk cream
launched during the year was well received. Despite general slowdown in the economy the
company's profits improved.
1997
- The Biscuit industry has been dereserved which would not only remove restriction on
increasing capacity but would also provide opportunities of growth through new products and
efficient production systems. The Company undertook to diversify into cheese and dairy
whitner.
- The Company launched `Tiger' range of biscuits for mass market category, `Jim-Jam' and
`Chekkers' in the premium segment. The Company also launched Butter in Delhi during the
year.
- Britannia Industries Ltd is all set to launch a new corporate identity and a total revamp of its
product portfolio, with strategic inputs from an international strategic design and brand
repositioning company - Shining Strategic Design.
1998
- Food major Britannia Industries Ltd (BIL) has signed a wage agreement with the Maharashtra
General Kamgar Union (MGKU), providing an average wage increase for 1,000 workers
employed in the biscuit manufacturing unit at Reay Road, Mumbai.
- The company has launched Half/Half, a soft cake filled with cream in two variants, chocolate-
vanilla and vanilla-orange. Half/Half comes in a twin-cake pack (Rs.6) and a tray pack
containing five cakes.
1999
- Britannia Industries Ltd has rolled out its flavoured milk brand `Zip-Sip' in tetrapaks. Zip-Sip
has been launched in Mumbai and some markets in the South.
- Britannia Industries, launching the country's first branded flavoured milk is another step
towards its goal of becoming a dairy-products giant.
2000
- Britinnia Industries has launched consumer promotion scheme `Britannia Khao, Cricketer Ban
Jao' on May 1st.
- Britannia Industries, in its second coming in the Indian dairy market under the `Milkman'
brand, is introducing a range of products many in desi flavours to woo the Indian consumer.
- The Company has launched Vita Mariegold, a semi-sweet biscuit which reportedly has 10
essential vitamins, milk protein and 58 cereals.
2001
- Britannia Industries has launched Britannia Milkman Milk in Delhi.
- Biscuits major Britannia Industries will fund its in-principle agreement to acquire 49 per cent
of Kwality Biscuits through internal accruals.
2002
-Britannia Industries Ltd announced on March 26, 2002 that it has entered into a joint venture
with the Fonterra Cooperative Group, New Zealand's biggest company and one of the leading
diary co-operative groups in the world.
-Britannia's new COO is Nikhil Sen.
2003
- Board of Directors of Britannia Industries Ltd has passed a resolution to terminate the
employment of Mr S K Alagh as Managing Director of the company with immediate effect.
- The management of Britannia Industries has roped in John Miller, a Danone representative,
as additional director on its board.
-Britannia New Zealand Foods, a joint venture of Britannia Industries and Fonterra Co-
operative group of New Zealand has launched Britannia MilkMan fresh milk.
2004
-Britannia Industries Ltd has informed that pursuant to the approval of the shareholders of the
Company at the AGM held on August 08, 2003 and the subsequent application to the Cochin
Stock Exchange Ltd., the said stock exchange has delisted the securities of the Company with
effect from November 15, 2003.
2005
-Britannia New Zealand launches health drink for adult.
2006
-Britannia Industries Ltd has forged a strategic alliance with CCD. Daily Bread Pvt Ltd a
Bangalore based Company engaged in manufacturing and retailing of premium breads, cakes
and high end ready to eat foods and snacks.
-Britannia Industries Ltd has appointed Mr. Stephan Gerlich as a Director.
COMPANY’S BACKGROUND
Britannia was incorporated in 1918 as Britannia Biscuits Co LTD in Calcutta. In 1924, Pea
Frean UK acquired a controlling stake, which later passed on to the Associated Biscuits
International (ABI) an UK based company. During the 50’s and 60’s, Britannia expanded
operations to Mumbai, Delhi and Chennai. In 1989, J M Pillai, a Singapore based NRI
businessman along with the Groupe Danone acquired Asian operations of Nabisco, thus
acquiring controlling stake in Britannia. Later, Groupe Danone and Nusli Wadia took over
Pillai’s holdings.
PLANT LOCATION :
Britannia's plants are located in the 4 major metro cities – Kolkatta, Mumbai, Delhi, and
Chennai. A large part of products are also outsourced from third party producers. Dairy
products are out sourced from three producers - Dynamic Dairy based in Baramati,
Maharashtra, and Modern Dairy at Karnal in Haryana and Thacker Dairy Products at Howrah in
West Bengal.
Britannia had spent 0.1 million US$ to hire Paris based designer Shombit Sen Gupta to
create a logo and packaging design. The logo had three objectives:
Give consumer reassurance that it was a trusted and familiar brand.
Britannia has the ability to change.
It had to be appropriate to the business the company was in.
The logo consists of the company’s name and slogan, “Eat Healthy Think Better”. The
Hindi rendition is “Swastha Khao, Tan Man Jagao”. The corporate statement “Eat Healthy
Think Better” captures the Indian concept of the unity of mind and body.
The logo has three colours red, white, and green each having its own significance. Colour
Red denotes Energy and Vitality. White denotes purity. Green stands for Nutrition and
Freshness. The strike communicates Innovation and Futuristic Power of Britannia.
Today, Britannia is the largest biscuit and bakery company in the country with the daily
sales turnover of over Rs. 8478 million. It is the market leader in the 1.3-million tonne Indian
biscuits industry with a 60% share. It has maintained market leadership with a 48% value
market share in the organized sector.
Britannia core businesses constitute of Bakery and Dairy products. Bakery products
account for 90% of the revenues and include Biscuits, Bread and Cake & Rusk. Dairy products
contribute to 10% of Britannia’s annual turnover of Rs13.38bn. Throughout its existence,
Britannia has operated on the principles of providing products to the consumers that are healthy
and tasty. This is brought about by the use of high quality ingredients with a strong focus on
‘naturalness’ and modern manufacturing practices. The company today has a wide range of
bakery products in the biscuit, bread and cake segment. It has trimmed down its wide product
portfolio by reducing the products from 35 to around 25 and began to focus on value-added
instead of low-margin products.
BIL (Britannia Industries Ltd.) has decided to focus on seven core brands in the biscuits and
bakery category. The brands included Good Day, Tiger, 50-50, Snax, and the Cream Treat
brands, among others.
. With the launch of Tiger brand, it has taken a plunge in the low-end category, taking
competition head on with Parle, which is the leader in this segment. The company has also
diversified within dairy and bakery products to enter the butter, cheese and ghee markets. The
portfolio was expanded with the launch of butter, pure flavored milk in tetra packs and UHT
milk.
Britannia has built an enviable retail distribution network, which services 400,000 retail
outlets in 2,200 towns with the help of 2,500 distributors. The company is aggressively
expanding its network with a bias towards the rural markets Recently, in the ethnic food
segment, the company introduced a new range of traditional ‘namkeens’ in Mumbai called
Britannia Snax. The new range includes seven varieties of traditional namkeens like 'Bikaner ki
Bhujia' and 'Rajasthani Alu Bhujia' in a price range of between Rs 5 and Rs 20.The company is
in the process of setting up a Greenfield Biscuit Project in Uttaranchal to augment its
production capacity, entailing an investment of about Rs 55.2 crore. This plant will have
capacity to produce over 45,000 tonnes of two or three varieties of biscuit per annum.So after
over seven decades of being inseparable part of life in India, Britannia is now set to usher its
customers into a healthier and tastier future
Industry Profile
Fast Moving Consumer Goods
FMCG Industry :
FMCG are products that have a quick shelf turnover, at relatively low cost and don't require a
lot of thought, time and financial investment to purchase
• ‘Fast Moving’ is in opposition to consumer durables such as kitchen appliances that are
generally replaced less than once a year.
• Three of the largest and best known examples of Fast Moving Consumer Goods
companies are Britannia, Nestlé, Unilever and Procter & Gamble.
• The Indian FMCG sector is an important contributor to the country's GDP. It is the fourth
largest sector in the economy and is responsible for 5% of the total factory employment
in India .
• This has been due to liberalization, urbanization, increase in the disposable incomes and
altered lifestyle.
• . The lower-middle income group accounts for over 60% of the sector's sales. Rural
markets account for 56% of the total domestic FMCG demand.
FMCG SECTOR :
Fast Moving Consumer Goods (FMCG) goods are popularly named as consumer
packaged goods. Items in this category include all consumables (other than
groceries/pulses) people buy at regular intervals. The most common in the list are
The Britannia products which includes in stars are=
Marie-gold
Good-day
Treat
CASH COWS:Low market growth rate High market shareLEADER in mature market.Huge cash generation than consumptionLow prospects for future growth-so no new investment in this category.Investment into STARS and QUESTION MARKS.
The Britannia products which includes in stars are=
Time pass
Pure magic
QUESTION MARKS:High market growth rateLow market shareLow cash generation than cash consumption.Analyze carefully the market situation Investment into high growth potential market. critical decision making for managers.
The Britannia products which includes in stars are=
Nutri choice
Organisational structure of Britannia
DOG:Low market growth rateLow market shareNeither large cash generation nor consumption.Also known as CASH TRAPS.Dogs should be sold off or liquidated.
ORGANIZATIONAL STRUCTURE
Mr.Nasali wadia(chairman)
Vinita Bali(managing Director
Mr. Keki Dadiseth(Director)
Mr. Avijit Deb(Director)
Mr. A.K.Hirjee(Director)
Mr. A.K.Hirjee(Director)
Nimesh N Kampani
Britannia Industries
Wholesalers
Point of sale ie Retailers
Kirana Shops
Agents
Big retail units like Food Bazar and for Exports
Ashok Gupta [Accouting]
Shridhar Panshikhar (national sales officer)
Jehangir Tankariwala(General Manger)
P.Govindan(General Manager)
VINITA BALI(Managing director)
T.S. Venketaram[Manufacturing Head]
K.N.Shashikanth[Quality Assurance Manager]
As the value chain is the combination of primary functions and secondary functions
(supportive). Where primary functions starts with suppliers or any inbound activities,
production of goods and reach to the customer through its supportive functions to turn potential
customer into consumer.
FUNCTIONAL STRATEGIES .
In an organization there are namely four important functions i.e.
Each of this function perform differently in an organization, so as in Britannia, so lets have stare
on them.
Functions of Business
Marketing Strategies.
BRITANNIA company has won many awards , because of their high quality products and
customer satisfaction and became 1st biscuit company in world. Since they are also worth for
their marketing strategies let’s gaze across.
The main marketing strategies followed by the firm are-
Product strategy.
Reduced losses by way of elimination of losses.
Target customers to capture growth in each category by segmenting the market both
along conventional lines and through segmentation.
Look beyond the product, at the customer. And use knowledge to reposition the brand.
High class R&D, and recently enhanced testing and evaluation facilities
A corporate image of quality.
Eat Healthy. Think Better. Buy Britannia. The 80-year-old biscuit king is reinventing
itself. Britannia now wants to become a foods giant, with the newly-added tag of health
and nutrition. What's more, with a clever formula of prices and products, it is targeting
every segment of the Indian market.
After all, the Rs 1,030-crore Britannia had spent a whopping Rs 10 crore on the bkwcj
contest-the single biggest promotion ever in the Indian marketing history. Instead of
concentrating on a few of its biscuit brands, Britannia included all 16 of them in the 7-
level contest it ran, which blocked the air-waves for 13 weeks. The result: 1.60 crore
customers actually exchanged 4 empty packs each for the booklet on cricket that came as
the first reward
Pricing strategy.
Cost based pricing.
Demand based pricing.
Competition oriented pricing.
Product oriented pricing.
Affordability based pricing.
Promotional strategy.
"Eat Britannia, Go for World Cup" was the theme adopted in 1999 .People bought
the biscuit packs and searched for the lucky scratch for flying to England to see world
Cup Cricket match.The sales bounced 37% high on account of this strategy.The scheme
came alive again during the world Cup Match in 2002-2003 in South Africa. " Lagan -
the super hit movie " brought fame to Britannia Biscuits also as 40000 buyers of
Britannia Biscuit packs were invited to see and a small lucky group to play the game with
the movie Stars of Lagan. What a novel way to promote a product - a perception in
correct proportion indeed.
Financial strategies.
AsBritannia is diversified business they are also in financial business namedBritannia
finance & kotakBritannia so they get the good sourses of money. Some of them lets come
across
o To have long term capital they issue prefence share shares mainly.
o BRITANNIA also do Self-financing to meet their capital needs.
o BRITANNIA has the sinking funds to meet their future uncertainities.
Human Resource strategy.
BRITANNIA were previously hiring only male candidates, but they start hiring
female HR managers.
They adopted HR Accounting for efficient recording of employee records.
Operational strategies.
After the great success of Scorpio BRITANNIA built their confedence in house R&D.
Application of techniques like JQM, KAIZEN, TQM, TPM, JIT, ABC analysis help to
increase the standards of products through out the manufacturing process.
Corporate level strategies.
Corporate level Strategy helps to achieve performance targets, how to enhance the firm’s long-
term business position by matching mission with the achievements.
So as the corporate level of Britannia make strategies. From the observed data we can assess
thatBritannia has been growing in substantial rate, so they are using the Growth strategy.
Britannia is conglomerate business organization as they are in diversified in various
sectors.Since they are using growth strategy they have passed all alternatives like they have
been merged, acquired, amalgamation, so let’s have close look out their growth strategy.The
company is jointly controlled by Groupe Danone of France, which is holding 22% stake and
Nulsi Wadia group. Nusli Wadia is one of the leading industrial houses in the country. Britannia
enjoys a prominent position in the industry. Over the last couple of years, it has trimmed down
its wide product portfolio and began to focus on value-added instead of low-margin products.
It mainly caters to the premium segment. With the launch of Tiger brand, it has taken a plunge
in the low-end category, taking competition head on with Parle which is the leader in this
segment. The company has also diversified within dairy and bakery products to enter the butter,
cheese and ghee markets. The company added two new products -- Sweet Lassi and Milkman
Cold Coffee -- to its existing dairy-based drinks portfolio which includes the `ZipSip' brand of
flavoured milk.
Growth Strategy
Internal alternatives.
Intersification.
- market penetration
-market development
- product development
Diversification- vertical
-horizontal-conglemerat
-concentric
External alternatives.
AcquisitionMerger
AmaglamationJoin venture
Market penetration.
Market penetration occurs when a company enters/penetrates a market with
current products. The best way to achieve this is by gaining competitors' customers
(part of their market share).
Britannia adopted a new strategy which include attracting non-users of your product or
convincing current clients to use more of your product/service (by advertising etc).
Market penetration occurs when the product and market already exists
1. Market development.
Britannia attempt to identify and develop new markets for marketing current products.
There are three general strategies applied in market development: (1) working within the
demographic market to see if any particular demographic group can be encouraged to buy more
of the product or if any new group within the demographics can be encouraged to purchase the
product; (2) looking at the institutional market to see if these buyers can be increased; (3)
attempting to develop markets in new geographical areas.
To effect these strategies, Britannia attempt new distribution methods, change the design of
promotional efforts, and attempt to discover and promote innovative uses for an existing
product.
3. Product development.
Britannia company has adopted many strategies to develop new product. So that they
can attract new customers and satisfy old customers.New product development is also a
necessary response to new technology and changing market conditions. New product
development may be handled by a dedicated department within the company or may
be part of each brand manager's responsibilities.
E.g= Britannia has tried to develop their products as per the customers convenience.
Diabetic customers always prefers biscuits like nutria choice.
Britannia treat and Nutri choice is is the best example of it.
Vertical Diversification.
They opened new plant in Nagpur for Hydraulic engine research & development.
4. Horizontal Diversification.
The Punjab tractor has been acquired by BRITANNIA in 2007.
5. Conglomerate Diversification.
Mahindra holidays,Britannia lifespace is the new diversified business that define
BRITANNIA as Conglomerate diversified firm.
6. Concentric Diversification.
Mahindra first choice, used car gallery is the best example.
7. Acquisition.
Mahindra acquires majority stake in 3rd largest tractor company in China.
8. Merger.
Acquired 51% stake in SAR Transmission Private Limited, a company engaged in
manufacture of gears and transmission shafts in 2005 .
9. Joint – venture.
Signed MoU to enter into joint venture with Jiangling Motor Company Group (JMCG)
of China, to acquire tractor manufacturing assets from Jiangling Tractor Company, a
subsidiary of Jiangling Motor Company Group in 2004.
Mahindra International Limited established - a joint venture with International Truck and
Engine Corporation to manufacture trucks & buses in India in 2005.
There are three types of strategies: growth, stability and defensive.
Growth strategy
Growth strategies enable the organization to expand, either through mergers or
acquisitions, or establishing a new plant.
McDonald has pursed its growth strategy through direct expansion. It never purchased
other fast-food restaurants' chains. It has grown only by granting franchises to people
who are willing to be retained in "McDonald's Way"
Major forms of growth strategies are concentration, vertical integration and
diversification.
• Concentration: Concentration focuses on growth through single product or a small
number of
closely related products. Concentration usually takes place through market development
(gaining a
larger share of current market or expanding new ones), product development (improving
a basic
product or service or expanding into closely related product or service) or horizontal
integration
(adding one or more businesses).
• Vertical integration: It is a means through which the firm produces its own inputs
(backward)
or disposes its own outputs (forward).
Strategy evaluation and control.
A) FINANCIAL EVALUATION:
1) RETURN ON INVESTMENT: This ratio measures the firm’s ability to perform as a rate of
return on the total assets employed. It is stated as:
EBIT (Earning Before Interest and Tax)
Total assets
As there is lack of data to calculation, it’s difficult to calculate this ratio.
(2) EARNINGS PER SHARE (EPS): This is nothing but the earning available to the
shareholders of the company. It indicates the profitability of the company which is available to
the shareholders. We can find the earned profits per share also called earnings per share as
follows:
Profits After Tax (PAT)
Total number of Outstanding Shares
As there is lack of data to calculation, it’s difficult to calculate this ratio.
(3) PRICE EARNINGS MULTIPLE: This is one of the most authentic measures of financial
performance as it measures the market price of the company’s share which is a reflection of
sentiments and demand of the general public for company’s share. It is not a ratio but a multiple
and is calculated as:
Market price per share (Quotes on NSE/BSE)
Earnings per share
B) BUDGETS:
There are different types of budgets:
a. Capital expenditure budget.
b. Cash budget.
c. Sales budget.
d. Marketing budget.
e. Advertising budget.
CONCLUSION
After going thick on the thing, now time is to make a complete picture. While making a product
a SKU (Stock Keeping Unit) of the shop retailers think about the GMROI (Gross Margin
Return On Investment) and they promote the brand which provide them highest. They expect
return in the form of profit margin, company schemes, window display and references of the
shop. Among these, company schemes make the differences and are the highest source of
motivation after profit margin. Retailing demands a constant push from the company.
Marketer needs to use advertising and brand building strategies to address the discerning buyers
and retail push to in different buyers. The manufacturer should understand consumer behavior
because retailers can't help quality and price. It is only up to dealers said it is demand they sell
Britannia 42% agree that at retail shop it is brand popularity, which determine the purchase of
biscuit.
There is a greater need to understand the retailer behavior considering them as a team working
for the company may help them to be attached to the company. There should be feeling of
belonging to the company in inner of the retailers. Setting values club for retailers so that they
may exchange views with the company and help in understanding consumer behavior.