Makeover of Britannia

The Balancing Act Contd...

In order to overcome the competition, BIL differentiated its brands by bringing them under the 'Eat Healthy, Think Better' banner and giving them clearly-defined positioning. For Milk Bikis, targeted at children, BIL launched variants like Milk Bikis Funland, which were animal-shaped biscuits. Marie was renamed Marie Gold, and positioned as a tea-time biscuit. Thin Arrowroot was renamed Jacob's Thin, with its position as the low-calorie health biscuit reinstated. In 1999, BIL relaunched its low-calorie, high-nutrition brands-Thinlite, Cream Cracker, and Digestive under the Nutrichoice umbrella, targeting the fast-growing health-conscious segment.

BIL seemed to be quick in gauging the rising demand for products in the impulse category of snacks (e.g. chips and chocolates). Accordingly, BIL came up with trendier products like Little Hearts, Pure Magic, and Chekkers, targeting the under-24 urban consumer, positioning them with statements they identified with.

For example 'Direct Dil Se' for Little Hearts, 'Full Of Taste And Fun' for Pure Magic, and 'For The Ups And Downs In Life' for Chekkers. In 1999, BIL had launched Snax, a line of ethnic snackfoods using low-fat oils and hygienic processes, in 3 variants: Calcutta Ka Chana Choor, Bikaner Ka Bhujiya, and Rajasthan Ka Aloo Bhujiya, with an eye on the almost Rs 1800 crore snack market in India.

In the segment of 'breads' which contributed about 6% of the company's total revenues, BIL's presence was restricted to a few cities. In the face of increasing competition, it decided to strengthen its bread business in the southern states and was seriously looking for acquisitions and manufacturing tie-ups in that region. It also planned to leverage the key strength of the daily distribution system of its bread business in its new ventures like milk.

With a view to boosting volumes, BIL also changed its packaging strategy by launching biscuits in small sachets. It launched the low-priced sachets, 'Tiger Tikis-nibblets' priced at Re 1-targetting the mass market. BIL simultaneously revamped its distribution channels, increasing its retail distribution network to more than 1.20 million outlets. To increase penetration, more than half of the new outlets serviced, were in the rural and semi-urban markets-a break from the past, when BIL's distribution was distinctly skewed towards urban India.

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Case Details

Case Code : MKTG006
Themes: Marketing Mix
Case Length : 8 Pages
Period : 1997-2000
Organization : Britannia Industries Ltd
Pub Date : 2001
Teaching Note : Available
Countries : India
Industry : Food, Beverages & Tobacco

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