CONTENTS

TITLE
Structure of Biscuit Industry
Evolution of Biscuit Industry
Overview of Biscuit Industry
Players in the Industry
Leaders of Biscuit Industry
Challengers of Biscuit Industry
Followers of Biscuit Industry
Nichers of Biscuit Industry
Industry Segmentation
Market Shares
Profile of the Key Players
Segmentation, Targeting and Positioning of the Players
SWOT Analysis of the Industry
Porters 5- Force Analysis
PEST Analysis
BCG Matrix of the Biscuit Industry
Products of the Key Players
Pricing Strategies of the Key Players
Promotional Initiatives
Financial Analysis
Balance Sheet of the Key Players
Ratio Analysis of the Key Players
Conclusion
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STRUCTURE OF BAKERY INDUSTRY

The Bakery Industry in India is of worth 99,000 million rupees. The bakery industry is
categorized into 4 parts Biscuit Industry which is of worth 145,000 million rupees,
Bread Industry worth Rs 30,000 million, Cakes and Pastries industry worth RS 30,000
million and other bakery products worth Rs 5,500 million.
BiscuitsBiscuits and cookies is a term used for a variety of baked, commonly flour-based food
products, and is typically crisp and flat
India is the worlds largest biscuits and cookies consuming nation
BreadBread is a bakery product made of flour, water, and yeast mixed together and baked
Bread has become an integral part of modern day living and is available in various forms
and flavors
Cakes and PastriesCake is a form of bread or bread-like food in its modern form. It is typically a sweet
baked dessert Types of cakes are:
Chocolate Cakes
Pastries
Cream Cakes
Other Bakery ProductsThe other products in the bakery industry are khari, toast, rusk and other small bakery
products
There are no major players in this segment as most production happens locally. Even
large players like Britannia have minimal presence in this segment
From these four segments we have analysed the Biscuit Industry.

EVOLUTION OF THE BISCUITS AND COOKIES INDUSTRY

Late 1990s
Prior to the deregulation of the industry, only small scale industries (SSI) were
allowed to manufacture. Even the likes of Britannia, Parle, etc. were not allowed
to increase their own capacity
Consumption was largely restricted to urban pockets
2000 2010
The Indian biscuits and cookies industry saw high growth during this period due to
increased globalization and the popularity of convenience foods
Biscuit and cookie manufacturers started improving their sales and distribution
networks across the country
Current situation (2011 onwards)
Manufacturers are now focusing on improving the presentation (packaging, taste
and appeal) of their products
Premium biscuit brands such as Oreo and Sunfeast Dark Fantasy are seeing an
increase in sales
India Biscuits Industry came into limelight and started gaining a sound status in the
bakery industry in the later part of 20th century when the urbanized society called for
ready-made food products at a tenable cost. Biscuits were assumed as sick-man's diet in
earlier days. Now, it has become one of the most loved fast food product for every age
group. In the late 90s only small scale industries were allowed to manufacture biscuits.
Even Britannia and Parle were not allowed to increase capacity. But till 2010 the biscuit
industry developed due to globalization. In the present scenario, biscuit manufacturers are
using modern technologies and innovative ideas to improve the presentation of their
products.

OVERVIEW OF THE BISCUIT INDUSTRY

This is the overview of the overall biscuit industry The biscuits and cookies industry in India has been growing at a CAGR of 10% for the
last three years, and is currently valued at INR 145000mn.
India is currently the worlds largest biscuit consuming nation.
The industry is expected to grow at a CAGR of 14% till FY 2019.
The drivers and challenges of the biscuit industry are:
Drivers: Increasing disposable income, changing lifestyle, growth in organized retail and
increasing consumption of processed and packaged food are the main drivers of the
industry.
Challenges: Increasing tax incidence and rising input costs are the main challenges that
the biscuits and cookies industry is currently facing.
The players in the biscuit industry are Britannia, Parle, ITC Sunfeast, Priyagold, Bisk
Farm, Anmol. Apart from these there are many other players in the industry like Marico
and UNIBIC. The leading position in the biscuit industry keeps on swapping between
Parle and Britannia. But according to the latest survey done by Motilal Oswal, both
Britannia and Parle have equal shares in the market, i.e, 35%. Priyagold has 11% share
and ITC Sunfeast has 13% share. The remaining 6% share is held by the rest of the
companies.
The leaders in the biscuit industry are Britannia and Parle. Both these companies are
tough competitors of each other. The product lines of both these companies are almost
same.
ITC Sunfeast is the challenger to both Parle and Britannia. With its innovative products,
this company throws a challenge to the leading companies.
Anmol and Priyagold are the followers in the biscuit industry.
UNIBIC Cookies are the nichers in the Biscuit Industry as they target the high profile and
diabetic customers with their sugar-free range of biscuits. UNIBIC Foods India Pvt. Ltd.
manufactures and markets premium cookies. The companys cookies are available online
at Big Busket and Amazon.

INDUSTRY SEGMENTATION
The biscuit industry is segmented into two sectors i.e. Organized Sector and Unorganized
Sector. In terms of volume, biscuit production by the organized segment is estimated at
1.30 million tones. In the organized sector, the industry is dominated by Britannia and
Parle, which account for 70 per cent of the industry's volumes. Parle derives a large
portion of its revenues from low priced biscuits. In fact, Britannia's market share in the
medium and premium varieties is significantly higher. The unorganized sector consists of
small bakery units, cottage and household type manufacturing. The goods distributing in
the surrounding areas without good quality packaging. Lower overhead cost due to
limited local area, family management, focused product lines and less expenditure on
marketing help the unorganized sector to grow.
Glucose biscuits (~33%) have the highest share in the industry.
Compared to other FMCG products, the penetration of biscuits and cookies, in both the
urban and rural areas is quite high (94% and 83%, respectively.)
East and North India have the highest consumption of biscuits and cookies in the country

PROFILE OF KEY PLAYERS:

PROFILE OF BRITANNIA
INDUSTRY PROFILE

CEO of the Company

Mr. Varun Berry

Chairman of the Company

Mr. Nusli Wadia

Headquarters

Bangalore, Karnataka, India

Vision

Every third person, in India, should be a

Britannia consumer

Mission

To dominate the food and beverage

market in India and to be one of the
the best biscuit company

Britannia Industries Limited (A WADIA Enterprise) is an Indian food-products

corporation based in Bangalore, India. It sells its Britannia and Tiger brands of biscuit
throughout India. Britannia has an estimated market share of 38%. 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. Initially, biscuits
were manufactured in a small house in central Kolkata. Later, the enterprise was acquired
by the Gupta brothers mainly Nalin Chandra Gupta, a renowned attorney, 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 high 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 the American company Nabisco Brands,
Inc. acquired the parent of Peek Freans and became a major foreign shareholder.
Biscuits
The company's factories have an annual capacity of 433,000 tonnes. The brand names of
biscuits include VitaMarieGold, Tiger, Nutrichoice Junior, Good day, 50 50, Treat, Pure
Magic, Milk Bikis, Good Morning, Bourbon, Thin Arrowroot, Nice, Little Hearts among
others.

Tiger, the mass market brand, realised $150.75 million in sales including exports to
countries including the U.S. and Australia, or 20% of Britannia revenues in 2006.

PROFILE OF PARLE
INDUSTRY PROFILE

Owners

Vijay, Sharad and Raj Chauhan

Headquarters

Vile Parle (East), Mumbai, Maharashtra, India

Vision

To be the leaders in our business. We will stand

apart from the competition by being the first in
the market to innovate

Mission

We will be leaders in our business by maintaining

high quality, introducing new and innovative
products, reaching every part of India, remaining
customer centric, constantly upgrading our
knowledge and skills

Parle Products is an Indian private limited company. It owns the famous biscuit brand
Parle-G. As of 2012, it had a 35% dominant share of the Indian biscuit market.
History
Parle Products Company was founded in 1929 in British India. It was owned by the
Chauhan family of Vile Parle, Mumbai. Parle began manufacturing biscuits in 1939. In
1947, when India became independent, the company launched an ad campaign, showcasing
its Gluco biscuits as an Indian alternative to the British biscuits. The Parle brand became
well known in India following the success of products such as the Parle-G biscuits and the
Thums Up soft drink.
The original Parle Company was split into three separate companies, owned by the
different factions of the original Chauhan family:
Parle Products, led by Vijay, Sharad and Raj Chauhan (owner of the brands Parle-G,
Melody, Mango Bite, Poppins, Kismi toffee bar, Monaco and KrackJack)
Parle Agro, led by Prakash Chauhan and his daughters Schauna, Alisha and Nadia (owner
of the brands such as Frooti and Appy)
Parle Bisleri, led by Ramesh Chauhan
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All three companies continue to use the family trademark name "Parle". The original Parle
group was amicably segregated into three non-competing businesses. But a dispute over
the use of "Parle" brand arose, when Parle Agro diversified into the confectionery business,
thus becoming a competitor to Parle Products. In February 2008, Parle Products sued Parle
Agro for using the brand Parle for competing confectionery products. Later, Parle Agro
launched its confectionery products under a new design which did not include the Parle
brand name. In 2009, the Bombay High Court ruled that Parle Agro can sell its
confectionery brands under the brand name "Parle" or "Parle Confi" on condition that it
clearly specifies that its products belong to a separate company, which has no relationship
with Parle Products.
Biscuits
Parle-G, KrackJack, Monaco, Kreams, Golden Arcs, Parle Marie, Milk Shakti, Parle Hide
& Seek Bourbon, Parle Hide & Seek Fab, Top, Parle Gold Star, Happy Happy, 20-20,
simply good, namkeen parle, magix coconut.
PARLE-G
Parle-G is a brand of biscuits manufactured by Parle Products in India. According to a
Nielsen survey of 2011, it is the largest-selling brand of biscuits in the world.
Parle Products was established as by confectionery in the Vile Parle suburb of Mumbai, in
1929. It began manufacturing biscuits in 1939. In 1947, when India became independent,
the company launched an ad campaign, showcasing its Gluco brand of biscuits as an Indian
alternative to the British biscuits.
Parle-G biscuits were earlier called 'Parle Gluco' Biscuits until the 1980s. The "G" in the
name Parle-G originally stood for "Glucose", though a later brand slogan also stated "G
means Genius". They use sugar rather than glucose as the main sweet ingedient, although
they do contain some inverted sugar.
In 2013, Parle- G became India's first domestic FMCG brand to cross the Rs 5,000 crore
mark in retail sales.

PROFILE OF ITC SUNFEAST

INDUSTRY PROFILE

CEO of the Company

Mr. Yogesh Chander Deveshwar

Chairman of the Company

Mr. Yogesh Chander Deveshwar

Headquarters

Kolkata, West Bengal, India

Vision

Sustain ITC's position as one of India's

most valuable corporations through world
class performance, creating growing value
for the Indian economy and the
Company's stakeholders

Mission

To enhance the wealth generating capability of

the enterprise in a globalising environment,
delivering superior and sustainable
stakeholder value

ITC Limited or ITC is an Indian conglomerate headquartered in Kolkata, West Bengal. Its
diversified business includes five segments: Fast-Moving Consumer Goods (FMCG),
Hotels, Paperboards & Packaging, Agri Business & Information Technology.

Established in 1910 as the Imperial Tobacco Company of India Limited, the company was
renamed as the Indian Tobacco Company Limited in 1970 and further to I.T.C. Limited in
1974. The periods in the name were removed in September 2001 for the company to be
renamed as ITC Ltd. The company completed 100 years in 2010 and as of 2012-13, had an
annual turnover of US$8.31 billion and a market capitalisation of US$45 billion. It employs
over 25,000 people at more than 60 locations across India and is part of Forbes 2000 list.

SEGMENTATION, TARGETING AND POSITIONING OF

BRITANNIA:
Segment
People who need and consume bakery and dairy products
Target Group
Middle and upper middle class families, especially kids
Positioning
Indias leading manufacturer of premium quality and healthy biscuits, bakery and dairy
products
Marketing Strategy include anything from facts, events, procedures, values and
personalities. Britannia nearly sells all their products all over India and even exports it other
few countries. Their market rate kept growing every year in the Indian market. Therefore,
BIL has implemented a Diversification strategy, so that it becomes the market leader in the
food and biscuits industry. But they made sure that when they diversify, they make similar
kinds of products such as cheese, dairy products and even more bakery items. So the
company can realize their marketing strategies by underlining the opportunities in the
market. There are a various different strategies they adopted.
Segmentation - They believed in the best quality of products for the consumers as they are
health conscious and so they fulfil this need of the consumers.

Targeting - The Company focussed on building a good relationship with the customers as
they are they play the most important part in the sale of products. Not only did they keep
up to the old customer's expectation, but they also try to make new customers as their
retention plays a major role for the growth of their business.

Positioning - While manufacturing new products, they don't fail to remember their
competitor's way of fighting against them, instead they pay even more attention to each
and every step they take towards success as they want to be ahead of them and succeed.

Growth Strategy - Even though Britannia biscuits started off by selling their products in
India, they slowly expanded and started to export it to other parts of the world. By doing
so, they adapted to the different cultures of those countries and made plans for those
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neighbouring areas and researched and analyzed which product has more demand than the
others and ways to improve their sales.
THE MARKETING MIX
Product: Britannia have a large variety of products to choose from, not only do they
manufacture Biscuits, but they also make different types of Diary items, Breads and Rusk.
They launch products which in gets good returns for the company through building a good
brand and quality products which are supplied across different countries.
The main streamline of Britannia products include:
Biscuits such as:

Marie Gold
Treat
Milk Bikis
Time Pass
Tiger
50-50
NutriChoice also available for Diabetic people.

Benefits of Branding
As we all know, Britannia biscuits still have higher growth potential in the market as its
one of the best-known brands in India and popular among other countries as well. Even
though they have come up with new variety of biscuits, they still emphasis on their initial
biscuit brands such as Tiger, Good Day, Marie, Treat and even more. Britannia has
diversified by also making Breads, Cakes and other Diary products. Its brands are
considered to be an excellent value by India's price-conscious consumers. Tiger Biscuit is
one of the most distinguished brands and is extremely popular among the rural areas and
consumers. Sports and sporting events also are a key channel for promotions. The
company's "Britannia khao, World Cup jao" (Eat Britannia, travel to see the World Cup)
campaign in 2003 was the most recognized sales promotion among all Cricket World Cuprelated sales activity.

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Place: Britannia had started selling products in India, but now it has expanded overseas to
places like Middle East and Sri Lanka.
They have even started to export their goods to places such as:

USA
Ghana
Saudi Arabia
Kuwait
Bahrain
Qatar
UAE
Oman
Seychelles
Singapore

Price: Britannia has adopted the Market Penetration Method of pricing. It focuses on the
quality of the products keeping in mind the pricing strategy. This helps improve and
generate large sale volume for their products. It aims at maximizing the market share and
to produce new product lines. A few examples are:

Vegetarian Cakes are available at Rs. 15/- for a 75 gm pack.

Nutrichoice Health Starter Kit is for Rs 100.
Britannia Tiger Banana packed with IRON ZOR priced at Rs.2, Rs.4 and Rs.10.

Promotions: To attract the consumers of Britannia, they very innovatively came up with
ideas to promote their brand in numerous different ways, and now they have leveraged
India's two most successful passions of all times:

Cricket
Movies

Nearly every Indian's dream was to be present at a stadium while India is playing cricket,
during the World Cup, so Britannia created the 'Britannia Khao, World Cup Jao' contest in
1999. They made it very simple for their target market to enter this contest, which was to
purchase more products to win a scratch and win lucky card and winning an all expenses
paid trip to England to watch the World Cup Match. They held it again in 2002-2003 held
in South Africa which successfully set a unique trend of their own. They even came up
with another creative promotion of 'Britannia Khao, Cricketer Ban Jao' that was fuelled by
the need of every Indian to be a part of the passion called Cricket followed by a promotion
12

called 'Britannia Lagaan Match' in 2001 that revolved around a movie called Lagaan was
based on a cricket match. This promotion gave the consumers a chance to interact with the
film stars and also get to pay cricket with them. The match had over 40,000 spectators and
made the headlines of leading newspapers and news channels and was found to be the most
unbeaten promotional act of that year. So we understand that sports and the sporting events
are the key promotional tools of Britannia. Recently Britannia sponsored the Filmfare
Award 2015 and also held a contest related to it, Britannia Khaao, Filmfare Jaao.

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SEGMENTATION TARGETING AND POSITIONING OF PARLE

BISCUITS
Segment
People looking to have biscuits anytime
Target Group
All age groups lower, middle and upper class people
Positioning
For children who are genius in every field
THE MARKETING MIX
Parle G is one of the most trusted names amongst Indian brands. According to a recent poll,
the company is one of the largest manufacturers and sellers of biscuits. Its parent company
Parle Products was established in the year1929 and the company started the manufacturing
of biscuits in the year 1939. After independence, ads were launched to project Parle G as
an alternative to biscuits made by the British companies.
Earlier Parle G was known as Parle Glucose and in 1980,the word G was added to Parle in
order to represent Glucose Or even Genius. Hence, the name Parle G came into existence.
Times have changed, but one thing has remained unchanged, and that is the popularity of
Parle G biscuits. One of the major competitors for Parle G are low cost Britannia biscuits
like Marie, tiger and others.
Product in the Marketing mix of Parle G
Parle G biscuits are taken as snacks during tea times or any other time. The biscuits have a
high nutritional value with amazing taste. Special attention is given to the fact that care and
caution is exercised in the purchase of raw materials and high hygienic standards are
maintained in all its manufacturing units.The international quality of the biscuits has made
them a winner in the eyes of a common person.
Besides the original Parle G glucose biscuits, the company has launched a premium version
of its biscuits. Parle G Magix which was launched in2002, and this premium quality
biscuit is available in double tastes of Cocoa and Cashew. The same year also saw a
new product Parle G Milk Shakti biscuits for the southern markets that were a
combination of honey and milk. Overall, the product Parle G is a low cost product targeted
towards the general population.

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Place in the Marketing mix of Parle G

Parle G has the merit of becoming the first Indian domestic brand that has crossed INR
5,000 crore figures in the sales at the retail market. Its success is primarily because of a
very strong network of distributive channel that includes a whopping number of retail
stores that are more than six million in numbers. Parle G has many manufacturing units for
the production of its biscuits.
From here, the fifteen hundred wholesalers take over. They are responsible for the products
to reach the market or retailers in time. The manufacturing units are under extreme hygienic
conditions. Parle G products are available in every nook and corner of the country from a
small-unknown rural area to a super market in a metro city.
The best part about the place in marketing mix of Parle G is its vast distribution network.
As per statistics, Parle G is the widest distributed brand of biscuits in India. It beats all
other brands in its distribution. During 26th July, when India was drowned due to rains,
Parle G was the biscuit which was being distributed freely to all people tired from rains.
Thus, the product has very strong distribution channels.
Price in the Marketing mix of Parle G
The low pricing policy of Parle G along with its qualitative products has helped the
company to reach such heights and ward off competition. Its popularity and accessibility
are maintained since earlier times as the pricing policy remains unchanged. Parle G has
been emphasizing on quality and volume instead of high prices and that has resulted in
revenues that have never decreased.
The packaging of the product has also helped, as instead of changing prices, the product
has been repackaged with lesser quantities to keep it affordable for even the lower class
people. The pricing policy and its distribution channels are the reason that the company
has been maintaining its growth and earnings through bad and good times equally.
Promotion in the Marketing mix of Parle G
Parle G has a very distinctive packaging that is easily recognizable. For many years, the
product was packed in wax paper of yellow and white wrapper that featured a very young
girl. Later the packaging changed from wax paper to plastic wrapping but the design
remained the same. The new packing is airtight and keeps the biscuits fresh for a longer
time.
The illustration of the little girl remains the same after so many years as the girl has become
synonymous with the brand name. The name Parle is derived from the Vile Parle station
where the factory of Parle production is situated and G is both for genius and glucose. The

15

brand name Parle G is a common and widespread brand that has captured an important part
of the market share in terms of biscuits.
Advertisements for this iconic brand started through the press and print media. Newspapers
was the most common medium through which the people came to know about the benefits
of eating biscuits as Parle G biscuits were rich in nutritional values thus providing instant
energy. The Dadaji commercial released in 1989 and it took the visual media of
television to unimaginable heights.
Parle G brand of biscuits is advertised through televisions, radio, newspapers and
magazines. In1997, the company sponsored Shakti man, a tele-series. In 2002, the company
introduced G-Man, who was the ambassador for Parle G. This advertisement was
appreciated by the children and their parents and therefore went on to become hits.

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SEGMENTATION TARGETING AND POSITIONING OF ITC

SUNFEAST

Segmentation: Quality conscious people

Targeting: Youth from middle and upper class people

Positioning: Biscuits that bring smile to childrens face

THE MARKETING MIX

In the year 2003, ITC stepped in the manufacturing of biscuits and introduced the
Sunfeast range that at first dealt with biscuits and later on with other food items also.
The brand name Sunfeast , since then has been associated with quality as the brand has
been known to offer wholesome biscuits that are innovative as well as delicious in taste.
Within a short span of time Sunfeast has made a name and place for itself and at present,
the brand is synonymous with contentment, cheerfulness, customer satisfaction and
happiness. Some of its main competitors are as follows

Britannia
Parle
Priya Gold
Horlicks
Maggi

Product in the Marketing mix of Sunfeast

Sunfeast has established its presence in the market of almost all the biscuit categories and
has become an important player in the instant noodles and pasta segments. Besides
launching the high premium quality of biscuit range, it has wowed the customers with some
innovative and exciting dual cream biscuits that have proven to be a delight for the
consumers. The various products under its brand name are as follows

Sunfeast Farmlite
Sunfeast Dark FantasyChoco Fills Luxuria
Sunfeast Dark Fantasy Choco Fills
Sunfeast Dark Fantasy Choco Meltz
Sunfeast Delishus Nut & Raisins
Sunfeast Delishus Nut Biscotti
Dark Fantasy Chocolate and Vanilla
Sunfeast Dream cream
Sunfeast Marie Light
17

Sunfeast sweetn salt

Sunfeast Milky Magic
Sunfeast Glucose
Sunfeast Special Cookies
Sunfeast Nice
Sunfeast Special Creams
Sunfeast Snacky
Sunfeast Yippee
Sunfeast Pasta Range

Price in the Marketing mix of Sunfeast

There are varied pricing policies at play in Sunfeast. Some of the products are premium
products whereas other products are more run of the mill. The pricing policy of Sun Feast
is dependent upon a number of factors. Monitoring the needs of the customers and
perceiving the amount of money a normal household is prepared to pay is surely a difficult
decision.
There are so many different sections in society with various tastes and demands and in
order to cater to the whims of each section of society Sunfeast has decided to keep the
pricing policy of variable as well as competitive type.
They have introduced innovative food items such as Sunfeast dark fantasy that have caught
the imagination of children and the parents are prepared to buy them for the kids. The prices
for such items are a little high but discounts and schemes are launched at regular intervals
so that the actual cost comes down a bit.
Similarly, Sunfeast has the popular product of yippie noodles as well as pasta which is in
a highly competitive segment where Maggi is the dominant player. Thus, in this segment
sunfeast is using competitive pricing.
And lastly, cost plus pricing is used for products like Sunfeast glucose and various other
biscuits wherein the competition itself is using cost plus pricing and there is hardly any
differentiating factor other then supply chain present.
Place in the Marketing mix of Sunfeast
Sun feast has been able to penetrate deeply in the rural as well as urban Indian market
because of the well-established distribution channel provided by its parent company ITC.
The penetrative delivery and supply network was established with extreme efficiency and
care. Sun feast has been expanding its distribution channel to small villages and towns
besides the cities.

18

The company is appointing new wholesalers with an increase in the number of stockists.
The company is also tapping the e-Choupal network that includes direct communication
and working with the farmers to obtain materials and deliver the finished products. Its
products are available easily in every nook and corner of the country because of its efficient
management.
The place in the marketing mix of Sunfeast is obviously very important because none of
the FMCG companies can survive without the proper distribution network. It is only
through distribution of a package of products and far and wide distribution that FMCG
companies can earn margins.
Promotion in the Marketing mix of Sunfeast
In order to establish its brand name Sunfeast made a thorough research of the market and
after analyzing it decided to start its promotional activities. In order to make its brand a
household name it has launched exciting and innovative campaigns that denotes the various
qualities of its products like the flavor and exclusive taste. With a variety of biscuits, they
have tried to target children and the homemakers as these are the two deciding influences
in an Indian household.
In order to promote its range of food products famous actors and sports personalities have
been signed. Sachin Tendulkar, the cricket icon, Shahrukh Khan, the superstar, Sania
Mirza, the tennis star have all been the brand ambassadors at one time or other. Television,
magazines, newspapers have proved to be an effective and influential medium for
advertisements as they are able to spread awareness among every age group of people. The
slogan Spread the Smile has become the essence of the brand and the catchy and colorful
ads have helped the company in acquiring a large share of the market.
It is interesting to know that Sunfeast spends more on the advertising of products which
are premium or are in a highly competitive segment. Thus, you will find sunfeast spending
more on Dark fantasy line of products and also on Sunfeast pasta and noodles as these are
the major stars for the brand.

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PORTERS FIVE FORCE ANALYSIS

Five Forces Analysis assumes that there are five important forces that determine
competitive power in a business situation. These are:
Supplier Power: Here you assess how easy it is for suppliers to drive up prices. This is
driven by the number of suppliers of each key input, the uniqueness of their product or
service, their strength and control over you, the cost of switching from one to another, and
so on. The fewer the supplier choices you have, and the more you need suppliers' help, the
more powerful your suppliers are.
Bargaining power of suppliers:
In the case of major players bargaining power of suppliers is very low as they dictate
the prices.
The ingredients are basic commodities such as wheat , sugar etc.
Buyer Power: Here you ask yourself how easy it is for buyers to drive prices down. Again,
this is driven by the number of buyers, the importance of each individual buyer to your
business, the cost to them of switching from your products and services to those of someone
else, and so on. If you deal with few, powerful buyers, then they are often able to dictate
terms to you.
High bargaining power of customer:
Availability of many biscuits from low, moderate prices
Availability of biscuits from non-organized sector
Loyalty of the buyers to biscuits that have brand identity makes them more powerful
in the case of new entries.
Competitive Rivalry: What is important here is the number and capability of your
competitors. If you have many competitors, and they offer equally attractive products and
services, then you'll most likely have little power in the situation, because suppliers and
buyers will go elsewhere if they don't get a good deal from you. On the other hand, if noone else can do what you do, then you can often have tremendous strength.
Rivalry within the industry is very high:
Major players dominate the Indian market.
High competition among the players
Unorganized sector cannot compete with major players in the case of Advertising
Threat of Substitution: This is affected by the ability of your customers to find a different
way of doing what you do for example, if you supply a unique software product that
automates an important process, people may substitute by doing the process manually or
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by outsourcing it. If substitution is easy and substitution is viable, then this weakens your
power.
Threat of substitutes:
Substitute threat is more in the case of biscuits
Growing packaged industry and bread industry
Traditional Indian homemade snacks
Threat of New Entry: Power is also affected by the ability of people to enter your market.
If it costs little in time or money to enter your market and compete effectively, if there are
few economies of scale in place, or if you have little protection for your key technologies,
then new competitors can quickly enter your market and weaken your position. If you have
strong and durable barriers to entry, then you can preserve a favorable position and take
fair advantage of it.
High entry barriers:
Capital intensive manufacturing, advertising and distribution
Heavy competition from major players.

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SWOT ANALYSIS OF BISCUIT INDUSTRY

Strengths

Brand building capabilities

Diversified product range

The depth of distribution

Low and mid price range of the products

Industry catering to masses.

Weaknesses

Dependence on retailers and grocery stores

Lack of technology up gradation

Opportunities

Indian Biscuit Manufacturers Association (IBMA) estimates annual growth of

around 20% in next couple of years.

Growing demand of Sugar free cream crackers & diet biscuits.

A package of fiscal incentives provided by various State governments

Threats

Fluctuations in the prices of raw materials, transportation costs & distribution

Entry of ITC (having very good distribution channels) in to biscuit industry)

Emerging local bakery products

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PEST ANALYSIS OF BISCUIT INDUSTRY

Political
Taxes
Production and Distribution licenses
Economical
Increase in per capita income in India
Social
India is 3rd largest producer
Changing Lifestyle
Technological
Lack of innovation in technology
Improved Research and development

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BCG MATRIX

Stars (high share and high growth)

Star products all have rapid growth and dominant market share. This means that star
products can be seen as market leading products. These products will need a lot of
investment to retain their position, to support further growth as well as to maintain its lead
over competing products. This being said, star products will also be generating a lot of
income due to the strength they have in the market. The main problem for product portfolio
managers it to judge whether the market is going to continue to grow or whether it will go
down. Star product can become Cash Cows as the market growth starts to decline if they
keep their high market share.

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Cash Cows (high share, low growth)

Cash cows dont need the same level of support as before. This is due to less competitive
pressures with a low growth market and they usually enjoy a dominant position that has
been generated from economies of scale. Cash cows are still generating a significant level
of income but is not costing the organisation much to maintain. These products can be
milked to fund Star products.

Dogs (low share, low growth)

Product classified as dogs always have a weak market share in a low growth market. These
products are very likely making a loss or a very low profit at best. These products can be a
big drain on management time and resources. The question for managers are whether the
investment currently being spent on keeping these products alive, could be spent on making
something that would be more profitable. The answer to this question is usually yes.

Problem Child (low share, high growth)

Also sometime referred to as Question Marks, these products prove to be tricky ones for
product managers. These products are in a high growth market but does not seem to have
a high share of the market. There could be a reason for this such as a very new product to
the market. If this is not the case, then some questions need to be asked. What is the
organisation doing wrong? What is competitors doing right? It could be that these products
just need more investment behind them to become Stars.

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FINANCIAL ANALYSIS
BALANCE SHEET OF BRITANNIA

26

BALANCE SHEET OF PARLE

27

BALANCE SHEET OF ITC SUNFEAST

28

COMPARATIVE CASH FLOW STATEMENTS

COMPANIES

Britannia Industries

PARLE

ITC

YEARS

2013 & 2014

2013 &2014

2013 & 2014

Net Profit Before Tax

210.44

32.47

1974.93

166.59

252.41

354.07

757.49

Net Cash (used in)/from Financing 33.65

Activities

74.46

941.3

Net (decrease)/increase In Cash 94.92

and Cash Equivalents

261.94

68.6

Net Cash
Activities

From

Net
Cash
(used
Investing Activities

Operating 342.5

in)/from 281.23

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COMPARATIVE RATIO ANALYSIS

COMPANIES

Britannia

Parle

ITC

CURRENT RATIO

1.00

1.04

1.45

QUICK RATIO

0.70

0.68

0.87

DEBT-EQUITY RATIO

--

0.02

--

LONG TERM DEBT-EQUITY -RATIO

0.02

--

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CONCLUSION
In Indian BISCUIT Industry even the small companies are able to make
profits.
Indian biscuit Industry has a continuous growth and will not be hindered
due to external factors. Biscuit Industry has flourished in India
enormously over the years and is still growing phenomenally
Entrepreneurs or businessmen who are in process of buying,
installation of new biscuit line should keep following points in mind,
apart from legal requirement of industrial licenses pollution clearance's
and of course finance

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