But even as the matter is set to come up for hearing in a Singapore court later this month, the management at Britannia is leaving no stone unturned to continue making the brand relevant to the highly competitive biscuit market in India. The latest initiative from the marketers at Britannia comes in the form of a new product offering under the Tiger umbrella – Tiger Banana.
Being peddled as the country’s first fruit based biscuit, Britannia is gung ho on launching more such offerings in 2008. Affirms, Neeraj Chandra, VP, Sales, Marketing & Innovation, “We will be launching similar such products through the rest of the year, as the health and nutrition segment is devoid of biscuits as of now.”
Great strategy indeed, but what Britannia would do well to remember is that tobacco major ITC also has similar plans for its snacks and food division. Interestingly, within just a short span of 5 years, ITC foods with its Sunfeast biscuits range has emerged as a big threat for Britannia in the segment.
Moreover, while all its biscuit brands are owned by ITC, the same is not true for Britannia. On the contrary, two of Britannia’s biggest brands, are not self-owned by the group. So, is there a chance for the Danone story repeating itself? “Not necessarily, because most of our brands, which contribute phenomenally in our turnover are owned by us and we are also planning to create more brands in the biscuit segment,” snaps Neeraj.
Britannia is indeed ramping up its act and is also paying heed to the procurement part, given the company’s plans to strengthen its wheat base. Sources in the company confirmed to this magazine, that sourcing the right quantity and quality of wheat at the right time, has always been a challenge for the company. However, here’s the bright spark for Britannia. Despite ITC’s huge cigarette distribution network, Britannia has a larger market penetration. “But the way ITC is cornering the market, it may soon become a problem for Britannia,” says Sumeet Budhraja, FMCG Analyst of Edelweiss Securities Pvt Ltd, adding that Britannia’s enhanced focus on global ventures presently, may ultimately pay off. In the meantime, who knows, the Singapore court may rule entirely in Britannia’s favour and the Wadia’s will certainly be roaring with their ‘Tiger’ then.
Edit bureau: Angshuman Paul
For more articles, Click on IIPM Article.
Source : IIPM Editorial, 2008
An Initiative of IIPM, Malay Chaudhuri and Arindam Chaudhuri (Renowned Management Guru and Economist).
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