Market Segmentation

Marketing Segmentation

The American Marketing Association defines Market Segmentation as:

“The process of subdividing a market into distinct subsets of customers that behave in the same way or have similar needs. “

Segmentation is based on four parameters:

• ·         Demographic segmentation
• ·         Geographic segmentation
• ·         Behavioural Segmentation
• ·         Psychographic Segmentation
  
  
  

Demographic Segmentation of Britannia Daily Fresh Bread

Age: Britannia’s Daily Fresh Bread caters to a huge set of customers.  People across all age groups- from kids to adults consume Britannia Daily Fresh

Income:  Low Income Group

Gender:  Both male and female

Geographic Segmentation of Britannia Daily Fresh Bread

Daily Fresh’s gratifies urban consumers from Tier 1 and tier 2 cities. Slightly rural consumers aren’t accustomed to bread on their breakfast tables.

Behavioural Segmentation of Britannia Daily Fresh Bread

Benefits: Bread is considered wholesome breakfast. Wheat bread and multigrain bread is known to be healthier than the normal white bread

User status:  This brand caters to the upper middle class households, bachelors, staple food at hospitals, school/college hostels, restaurants and various eating joints

Occasion: Bread is consumed on all occasions all round the year.

Usage Rate: Bread is consumed on a daily basis and bought on a daily basis

Psychographic Segmentation of Britannia Daily Fresh Bread

A person who is fairly modernized, is always on the go and so busy he can’t devote time to preparation of conventional Indian breakfast delicacies like parathas,is bound to make Daily Fresh Bread a regular on his kitchen shelf

In addition to this, health conscious masses also consume bread

It is also a base ingredient in many innovative new recipes 

Holistic Marketing

Holistic Marketing:

Healthy long term growth for a brand requires that the marketing organization be managed properly. Holistic marketers must engage in a host of carefully planned, interconnected marketing activities and satisfy an increasingly broader set of constitutions. They must also consider a wider range of effects of their actions. Corporate social responsibility and sustainability have become a priority as organizations grapple with short term and long term effects of their marketing. Some firms have embraced this new vision of corporate enlightenment and made it the very core of what they do.

Britannia is an old company that has stood the test of time. BIL’s Daily Fresh is still the market leader in its discipline. So Britannia Daily Fresh is a product that has been holistically marketed. Changing over time, with the introduction of Multigrain bread and Wheat bread, tending towards a healthier lifestyle as the target group gets more health conscious.

Sales Management

Sales management 

Sales management is a business discipline which is focused on the practical application of sales techniques and the management of a firm's sales operations. It is an important business function as net sales through the sale of products and services and resulting profit drive most commercial business. These are also typically the goals and performance indicators of sales management.

Britannia bread is sold out of retail outlets.  

Britannia Industries has taken full control of the Bangalore-based bakery foods retailer Daily Bread

Daily Bread has 11 standalone outlets in Bangalore and one in Goa, where it recently entered through a franchise route. Daily Bread had experimented with several formats, including a bakery retail store and one with a cafe-like ambiance

Sales and distribution overheads:-

Selling and distribution cost includes Sales Commission, Discount allowed, Salary of salesmen, Carriage outward and Sales expenses

•Sales Commission: As a part of encouragement for sales people, they are given commission of 5 % of the total sales done by them.

•Discount allowed: To attract whole sellers to buy the product they are offered a discount of 5% on the selling price.

•Salary of salesmen: The average salary paid to the sales people is around Rs. 0.1 of the total per unit cost of the product.

•Carriage outward: To carry the finished goods to the whole sellers, the transportations charge per unit/product is set as RS 0.12798.

•Sales expenses: This includes expenses incurred on advertisements and promotional expenses such as newspaper advertisements, hoardings, TV commercials etc.

Product Mix

Product Mix

Product Mix is the full set of products offered for sale by an organization. The product mix includes all product lines and categories. It may be defined more narrowly in specific cases to mean only that set of products in a particular product line or a particular market.  It is basically the variety of products the company has to offer.

The four dimensions to a company's product mix include width, length, depth and consistency.

Width: The width of a company's product mix pertains to the number of product lines that a company sells. For example, if a company has two product lines, its product mix width is two. Small and upstart businesses will usually not have a wide product mix. It is more practical to start with some basic products and build market share. Later on, a company's technology may allow the company to diversify into other industries and build the width of the product mix.
The product mix width of BIL is quite large.

Britannia’s product mix width is 3. They have three major product lines- Biscuits, Dairy products and Breads

Length: Product mix length pertains to the number of total products or items in a company's product mix, according to Philip Kotler's textbook "Marketing Management". For example, ABC company may have two product lines, and five brands within each product line. Thus, ABC's product mix length would be 10. Companies that have multiple product lines will sometimes keep track of their average length per product line. In the above case, the average length of an ABC Company's product line is five.

Britannia Product list and its brand range

Britannia Product focused on bringing more productive products and expanding the market rapidly. It was started in 1892. It has a history of over 120 years and its business has grown tremendously stepping at higher margin and satisfying consumer needs by giving superior quality of products. Their brand name including the features, quality, price, design etc. would help them in growth of rapid sales and keeping regular customer and choosing their product in the market. The products of Britannia Company were mainly consisting of Biscuits, Snacks and Dairy Products.

Britannia Products

The Britannia Products consists of the four sectors:
 Biscuits Sectors
 Bread, Cakes and Rusk Sectors
 Gift Sectors
 Dairy Products

Biscuits Sectors

Britannia Biscuits is famous world-wide for its taste which is sold at a reasonable and affordable price. Many millions of people enjoy eating biscuits which is a healthy snack and which is available in all over the stores at anytime, anywhere and every day.

Following are the various sectors:

·         Kids Nutrition

·         Treat or Luxury

·         Snacking

·         Adult Health

Bread, Rusk sectors

Bread and Rusk which are consumed by adults, kids and by all generation of people consists of vital nutrients and vitamins, Honey & Oats, Multi-Grain, Whole Wheat, and Multi-Fiber.
Britannia brings wide variety of such Bread and toasted Rusk which gives consumers to choose wide range of these products and enjoy the benefits under Bread and Rusk sectors. 

 Britannia Bread
Britannia Toasted Rusk

Dairy Products

Britannia Dairy Products is famous world-wide for its taste which is sold at a reasonable and affordable price. Many millions of people enjoy eating butter, ghee, milk, cheese, dahi, health drink, choco milk, and badam milk which is a healthier drink and which is available in all over the stores at anytime, anywhere and every day.

Britannia Dairy Products are further classified under below products: 

·         Cheese

·         Butter

·         Ghee

·         Milk

·         Gourmet Cheese

·         Dahi

Depth: Depth of a product mix pertains to the total number of variations for each product. Variations can include size, flavor and any other distinguishing characteristic. For example, if a company sells three sizes and two flavors of toothpaste, that particular brand of toothpaste has a depth of six. Just like length, companies sometimes report the average depth of their product lines; or the depth of a specific product line.

Britannia Bread: Britannia Bread launched Health Breads in Delhi on Nov 14, 2011. This new range of breads consists of Honey & Oats Bread, Multi-Grain Bread, 100% Whole Wheat Bread and Multi-Fiber Bread. Upto the year 1958, there were no consumption of bread and there was only one unit in Delhi. Further in the year 1963, Britannia was the first branded sector in the bread market which offers 400 grams and 800 grams plain white sliced bread. The main reason of introducing quality bread was to bring to the consumers about the concept of bread i.e "Eat Healthy and Think Better".

Types of Bread:

1. Honey & Oats Bread: This bread consists of loads of Honey and oats in every bite of each slice. This was very good and healthy to people who opt for this bread.
2. Multi-Grain Bread: This has multi grain which consists of oats, ragi, whole wheat, soya and flax seed and people who consume were so happy that they find richness of whole grains in every bite of every wholesome slice.
3. Multi-Fiber Bread: This bread is filled with natural wheat and oat fibers to give healthy breakfast in the morning. Fiber helps in effective digestion and helps in controlling cholesterol.
4. 100% Whole Wheat Bread: This bread is filled with fresh wheat and good for health as wheat brings loads of energy to human body. 

Consistency: Product mix consistency pertains to how closely related product lines are to one another--in terms of use, production and distribution. A company's product mix may be consistent in distribution but vastly different in use. For example, a small company may sell its health bars and health magazine in retail stores. However, one product is edible and the other is not. The production consistency of these products would vary as well.

Marketing Tools- ATL and BTL

Marketing Tools: Above The Line and Below The Line

Above The Line Marketing includes macro level promotion. It caters to mass audience mapping national, regional or territory wise promotion. It is conventional in nature and serves to construct a brand image about the company and its product.  Radio, television, magazines, outdoor and press are the medium of promotion

Britannia indulges in lavish TVC to promote its products.  It doesn’t promote Daily Fresh through ATL promotions because bread is an inevitable part of the shopping basket and Daily Fresh is a market leader in terms of it’s share.  It promotes its variants in the bread sector like the Veg Cakes.

http://www.youtube.com/watch?v=gE1Bt53w9Zc

Britannia Bread Sector TVC

Below The Line promotions are unconventional in nature, done at micro levels and forms part of non media communication. Measures include direct mailing and distribution of flyers, use of sponsorships, point of sale and telemarketing.

Public Relations

·         In the year 1997, Britannia launched the “Eat Healthy, Think Better” Campaign under whose light Britannia aimed to  'Make every third Indian a Britannia consumer'

·         In 1999, the company launched the Britannia Khao World Cup Jao, which was later relaunched in 2003 owing to it’s success.

·         In the year 2001 Britannia launched the Britannia Lagaan Match, wherein the company offered a chance to play the Lagaan team XI. The activity turned out to be the most successful activity of the year.

·         As a company Britannia has won number of recognitions. The Economic times recognized Britannia as “India’s Second Most Trusted Brand”. Forbes Global rated it one among the Top 200 Small Companies of the World.

Above The Line promotion is the company promoting itself. It builds the brand image and positions the brand in a way the company wants the consumers to perceive the brand. BTL promotions earn credibility for the brand. ATL promotions are difficult to measure. While BTL can be measured in terms of sales and feedback.

Branding

Branding:
A brand is a "Name, term, design, symbol, or any other feature that identifies one seller's good or service as distinct from those of other sellers." Branding began as a way to tell one person's cattle from another by means of a hot iron stamp. Thus, branding helps a company distinguish itself from its competitor and also create a niche for itself.

Elements of branding

Brand Name:  

·         In the history of 'Biscuit' the name is famous from the Latin words 'Bis' (meaning 'twice') and 'Coctus' (meaning cooked or baked). Britannia Company is the largest manufacturer of biscuits, and snacks for over 120 years. The name itself proves that this product has high level of quality, nutrition and great taste. Britannia brands of Biscuits, Snacks and Dairy Products reaches to around 300 homes across India, and everyone love to eat them with more happiness and satisfaction. Britannia products are available in more than 3 Million shops in the world wide and this brand is world famous. 

Brand Slogan:

·         Swasth Khao Tan Man Jagao

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. 

Brand Logo

·         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

Brand Promise

·         The Origin of 'Eat Healthy Think Better'

·         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. 

Distribution- Channels, Logistics et al

Distribution Channel:

A channel is the pipeline through which a product flows on its way to the consumer. The manufacturer puts his product into the pipeline or marketing channel and various marketing people move it along to the consumer at the other end of the channel.

According to American Marketing Association: " A channel of distribution or marketing channel, is the structure of intra company organisation units and extra company agents and dealers, wholesale and retail through which a commodity product or service is marketed."

For a big organization like Britannia Industries Ltd, the business hugely depends on the distribution channel and the consumer attitude towards the product. In distribution channel retailers plays a very important role. 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 provides them highest. They expect return in the form of profit margin, company schemes, window display and reference of the shop. Among these, company schemes make the difference and are the highest sources 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 behaviour because retailers can't help quality and price. It is only up to manufacturers to deliver what consumer wants.

There is a greater need to understand the retailer behaviour. Considering them as a team, working for the company may help them to be attached to the company. There should be a feeling of belonging to the company in inner of the retailers. This can be done by setting values club for retailers so that they may exchange views with the company and help in understanding consumer behaviour.

Functions of Channel Intermediaries

• Reconciling the needs of producers and consumers
• Improve efficiency by reducing the number of transactions and creating bulk for transportation
• Improve accessibility
• Providing specialist services

Channel Distribution for Consumer Goods

1. Zero Level Channel: Manufacturer---- consumer
   (Direct marketing includes use of personal selling, direct mail, telephone selling and internet. Examples are Avon Cosmetics, Acquaguard, Amazon. Com)
2. One Level Channel: Manufacturer---Retailer---Consumer
   (It is economical for producers to supply directly to retailers than through wholesalers. Supermarket chains and Wal-Mart are examples)
3. Two Level Channel: Manufacturer--- Wholesaler--- Retailer---Consumer
   (Wholesalers buy in bulk from producers and sell smaller quantities to retailers)
4. Three Level Channel:
   (Producers delegate the task of selling their products to an agent who contacts wholesalers and receives commission on sales. Prevalent in foreign operations)

As per the study, we would like to conclude that bread not being the staple food in India, has definitely evolved as a substitute for chapattis, rotis, rice, etc. It is easily available due to its excellent distribution channels. Britannia bread has acquired almost50% stake in daily bread market. Today a variety of breads are available, such as brown bread, whole wheat bread, chutney bread, etc.

Marketing System

The marketing system in the bread industry is based on a strong retail-wholesale distribution network and being a highly price sensitive low margin food product with very short shelf life (about four days on an average) and resultant return of more than 10 per cent of dispatches, the industry is witnessing a very competitive environment with the result that inter alia the consumer's choice and preferences plays an important role in the sales pattern of different brands of bread in the market.

Handling/ Logistics 

Logistics plays a key role in the bread industry, as the proper logistic support enables the producer to transport his products in the market at the right time. A producer has to see that all the packs are stacked in solid containers - steel or plastic crates - in order to avoid compression of bread (reduction of volume) during transportation. In case of bulk transport, producers can make use of trucks and tempos, and in case of smaller deliveries to the retail shops, the producer can use smaller tempos and bicycles. A producer also has to make sure that all vehicles are thermal proof, so that the bread is maintained at a lower temperature. All the products should be transported preferably in the night in order to avoid the heat and humidity and also the traffic delays.

Even after the product reaches the retail outlets, the producer has to educate the retailer to keep the bread away from direct sunlight. On keeping it in direct contact with the bright sunlight, bread starts sweating which may result in fungus formation, reduction in weight due to loss of moisture, change in texture of bread, etc.