Makeover of Britannia


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Case Details:

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

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Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Excerpts

'Food for Thought'

BIL, since its inception had been mainly involved in the manufacture of biscuits, which contributed around 85% of its revenues (1997). The biggest problem then, for the 80-year-old BIL was that its name was strongly associated by customers with biscuits (or more broadly bakery products)...

Donning A New Look

As a first step in its makeover plan, BIL hired a Paris based design studio- Shining Strategic design, to craft a new logo and corporate slogan. Its work involved understanding the perceived and potential value of the brand where everything from colours and symbols to the typeface, was evaluated.

The work also involved looking at the potential of the market and seeing where BIL could venture in future. Research showed that the brand 'Britannia' was synonymous with trust and quality, and the wide portfolio of products was seen as a source of strength...

The Balancing Act

For BIL, the new identity, laid the base to project its future as a successful food company- a company that provided high quality and tasty, yet healthy foods and beverages. Analysts felt that BIL seemed to have realised that its customers weren't really buying biscuits; they were buying health, nutrition, and food...

The Road Ahead

BIL's makeover plan seemed to have worked well. The sales increased from Rs 752.3 crore in 1996-97 to Rs. 1169 crore in 1999-00 and net profits increased almost 4 times since 1996-97. Although BIL's biscuit business seemed to have done well, its diversification into dairy segments did not seem to be an unqualified success.

Analysts observed that the value-added dairy market which BIL had targeted was a minuscule 0.10 per cent of the market. While the size of the cheese market was a mere Rs 140 crore, it was growing at 20 per cent per annum...

 

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