Toaz - Info BCG Matrix of Britannia PR
Toaz - Info BCG Matrix of Britannia PR
Toaz - Info BCG Matrix of Britannia PR
INTRODUCTION
BACKGROUND
In a well diversified business, there are mainly units with different profitability. Similarly, in a business
there may be many products in different segment, and a business has to do a “portfolio analysis” of various units it
is handling and wide product range.
BCG growth share matrix developed by Boston consulting group of USA and popularly known as BCG
matrix takes a two dimensional view: market growth rate and relative market share. Each dimension is divided in
to two degrees: high and low.
HISTORY
In the 1970s, BCG’s experience-curve work led to an insight that had a significant impact on business
thinking. If rapid growth in market share was as important as the curve suggested, then the usual approach to
resource allocation- in which each business unit funded its own growth- seemed a recipe for failure.
Businesses with low market share but high growth potential would never generate enough cash to win the
race down the experience curve. Those with high market share but few chances for growth would generate far
more cash than they could use productively.
BCG developed a simple conceptual framework, named the growth share matrix, to help corporate
managers determine when they should consider using profits from “cash cow” businesses to fund growth in other
businesses.
So great was the initial success of BCG matrix that for the greater part of two decades it became the
standard approach to capital allocation in multi-sector, multi-segment companies. “Star, Dogs, Cash Cows and
Question Marks” have become firmly embedded in the language of business.
Although the more sophisticated capital markets and competitive landscape of the late 1980s and 1990s
make the growth share matrix less central, it continues to be used as a primer in the principles of portfolio
management.
The growth share matrix, BCG matrix (Boston consulting group analysis) is a chart that had been created
by Bruce Henderson for the Boston consulting group in 1970 to help corporation with analyzing their business
units or product lines. This help the company allocate resources and is used as an analytical tool in brand
marketing, product management, strategic management and portfolio analysis.
CHAPTER NO: 2
RESEARCH METHODOLOGY
DATA COLLECTION
Sample of study:-
The sample for this study consisted of 15 respondents. The selected respondents in the age group of 15-55 years
belonged to varied employment, gender and income groups. Convenient sampling technique was applied in
selecting respondents as sample.
Data source:-
The study is based on primary and secondary data.
1) Primary data:-
A self-designed questionnaire consists of first and second part, which deals with the respondent’s perception, was
used for the purpose of primary data collection.
2) Secondary data:-
Secondary data have been collected from the different books and websites.
3) Data analysis:-
The data collected from various sources have been analyzed by using the techniques of simple
percentages, averages etc.
CHAPTER NO: 3
CONCEPTUAL FRAMEWORK
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.
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.
Britannia Biscuits are further classified under below sectors:
Kids Nutrition
Treat or Luxury
Snacking
Adult Health
Kids Nutrition
Biscuits are fond of everyone, kids, adult, old or new generation. Britannia brings wide variety of Biscuits which
gives consumers to choose wide range of these products and enjoy the benefits.
Types of Biscuits under Kids Nutrition Sectors: Britannia Tiger Biscuits, Milk Bikis,
Britannia Milk Bikis Biscuits is also one of the biggest brands in the
kids sector. Milk Bikis Biscuits was launched in 1996. The biscuits
are full of smart nutrients with four vital vitamins, iron and iodine
and are very essential for growing kids for their mental and physical
development. Britannia Milk Bikis Biscuits is one of the healthy
snacks for kids as many kids dislike milk but they love to eat
Britannia Milk Bikis.
Britannia Milk Bikis comes with smiley faces and are full enriched with Milk Cream. Milk Bikis Biscuits are
consumed at any time due to its good taste and healthier product. Britannia Bikis offers fun and energy to kids and
also brings good health and nutrition while consuming each bite of the biscuits.
Britannia Milk Bikis Biscuits consists of Milk Bikis Almond Cookies, Milk Bikis, and Milk Bikis with Milk
Cream. The price varies from Rs 5 to Rs 25.
Treat or Luxury
Biscuits which consist of cookies with Almond, Butter, Fruit, Wheat, and Milk are fond of everyone, kids, adult,
old or new generation. Britannia brings wide variety of such Biscuits which gives consumers to choose wide
range of these products and enjoy the benefits under Treat and Luxury Sectors.
Types of Biscuits under Treat and Luxury Sectors: Britannia Cookies, Britannia Good Day Biscuits, Britannia
Nice Time Biscuits, Britannia Treat Biscuits and Britannia Pure Magic.
Britannia Cookies Biscuits
Britannia is the Top Leader in the Cookies Sectors. Britannia's latest brand
which is referred as Britannia Cookies is packed and enriched with the
wholesome nutrition of wheat, butter and milk. Britannia Cookies are
available in two delicious kinds, one with Butter Elaichiz and other with Fruit
Dhamaka. Butter Elaichiz is filled with Butter and Elaichi, and Fruit
Dhamaka is filled with fruit bits.The Britannia Cookie is available to
consumer at a reasonable and affordable price with better taste experience.
The price varies from Rs 5 to Rs 10.
Britannia is the Top Leader in the Cookies Sectors and God Day Biscuits is the
Top Most. Britannia Good Day was launched in 1986 which were available in
two delicious kind one with Cashew and other with Butter. In year 1989, Good
Day Pista Badam was launched. In year 2000 Good Day Chocochips was
launched and in year 2004 Good Day Choconut was launched.
This brand of cookies has grown tremendously which is stepping at a higher margin and satisfying consumer
needs by giving superior quality of biscuits. Cookies are fond of everyone, kids, adult, old or new generation.
Britannia brings wide variety of these cookies which gives consumers to choose wide range of these products and
enjoy the benefits as this brand promise all the consumers with their good taste and ingredients.
Britannia Good Day Biscuits consists of Good Day Butter, Cashew, Rich Butter Cookies (Butter and Cashew),
Choconut Cookies, Butter Scotch cookies, Honey & Raisin Cookies, Chocolate Chip, Rich Cashew Cookies ATC,
and Rich Pista Badam ATC.
The price varies from Rs 5 to Rs 50.
Snacking
Biscuits which are consumed as snacks are of the best products of Britannia Company. These snacks are fond of
everyone, kids, adult, old or new generation. Britannia brings wide variety of such Snacks which gives consumers
to choose wide range of these products and enjoy the benefits under snacking sectors.
Types of Biscuits under snacking sectors:
Britannia 50-50
Time Pass
Little Hearts
Bourbon
Britannia 50-50
In the year 1993, Britannia's 50-50 was launched and it was the best
snack product which was preferred by all generation of people. In 2001,
the delicious Maska Chaska was launched and became the success. In
2008 50-50 sharpened its focus on housewives and positioned as a
snack. Britannia's 50-50 Snack units was the latest product under
snacking sector with three unique international flavors- Snackuits Italiano Pizza, Snackuits Swiss cheese & Chilly
and Snackuits Chinese Hot & Sweet.
Time Pass
Little Hearts
Little Hearts was launched in 1993 mainly for growing youth segment. This was
Britannia's first product which was sold in pouch packs. This product was in great
demand with special taste experience that the youth segment were impressed about
this product. It is rightly said that each bite of Little Hearts melts in the mouth
within a second time.
In Year 2003, two flavours called Little Hearts Chocolate and Little Hearts Sesame
were introduced.
Bourbon
Britannia presents yet another brand of Chocolate Biscuits which is thick, rich and
delicious which are packed with crunchy chocolate with sugar and is called as
"Bourbon Biscuits". The search of this biscuit began in the year 1955. This biscuits are
consumed by every generation of people. This biscuit is termed as all time favorite in
kids snack box. Variety of this Biscuits consists of Bourbon Cappuccino, Chocolate
Biscuits in Nano Pack, Pocket Pack, Hangout Pack, Party Pack or Gift Pack.
Adult Health
Biscuits which are consumed by adult which are good for health as it consists of vital nutrients and vitamins, oats,
Honey, Fibre, Ragi, 5 Grain, and Multigrain and are referred as the best products of Britannia Company. Britannia
brings wide variety of such biscuits which gives consumers to choose wide range of these products and enjoy the
benefits under adult health sectors.
Types of Biscuits under Adult Health sectors:
Britannia Marie Biscuits
Britannia Nutri Choice Biscuits
Britannia Marie Biscuits is successful with its balanced taste, crispy and
lightness along with added vitamins and minerals and is rightly called as
"healthy tea time biscuit". This Biscuit is top amongst the Britannia Biscuits
of brand.
This biscuit is further classified into brand called Vita Marie Gold and Vita Marie Honey
Oats Biscuits.
BCG Growth Share Matrix, developed by Boston Consulting Group, USA is a popular technique of corporate
analysis. The vertical axis denotes the rate of growth in sales percentage for a particular industry. The horizontal
axis represents the relative market share, which is the ratio of a company’s sales to the sales of the industry’s
largest competitor or market leader. The four cells of the BCG matrix have been termed as stars, cash cows,
question marks (or problem children), and dogs.
STARS:-
Businesses which have high growth rate and high market share are called stars. Such businesses generate
as well as use large amount of cash. The stars generate high profits and represent the best investment
opportunities for growth. This cell corresponds closely to the growth phase of the product life cycle
(PLC).The stars are market leaders and are usually able to generate cash to maintain their high market
share. When their market growth rate slows, the stars become cash cows.
The main features of stars are:
High industry growth rate
High market share
The strategy for stars may be growth strategy. The firm may undertake various activities such as:
R & D to introduce better
Effective after-sale-service to enhance customer loyalty
Appropriate promotion-mix (publicity, advertising, sales promotion)
EXAMPLE OF STAR PRODUCTS OF BRITANNIA: -
Milk Treat, 50-50, Tiger, Little Hearts, Bourbon
CASH COWS:-
The business with low growth rate and high market share are classified in the quadrant. High market share
leads to high generation of cash and profits. The low rate of growth of the business implies that the cash
demand for the business be low. Thus cash cow normal generates cash surplus. Cows can be milked for
cash to help to provide cash required for running other diverse operations of the company. Cash cows
provide financial bases for the company. These businesses which generate large amount of cash but their
rate of growth is slow. In terms of PLC, these are generally mature businesses which are reaping the
benefits of the experience curve. Cash cows are often former stars and can be valuable in a portfolio
because they can be ‘milked’ to provide cash for other riskier and struggling business.
The main features of cash cows are:
Low industry growth
High market share
The company may adopt stability strategy, various activities may be undertaken such as:
Retentive advertising to maintain customer loyalty.
Guarantees and warranties depending upon the nature of product
Introduction of new models or designs including, smaller packages to generate more sales.
EXAMPLE OF CASH COW PRODUCTS OF BRITANNIA: -
Marie Gold, Good Day, Treat
QUESTION MARK:-
Question marks are businesses with low market share but businesses have high growth rate. Because of
their high growth, the cash requirement is high, but due to their low market share, the cash generated is
low. As the business growth rate is high, the strategic option would be to invest more to gain market share,
pushing from low share to high. Hence the business can move to star quadrant, and subsequently has the
potential to become cash cow, when the business growth rate reduces to a low level. When the company
cannot improve its low competitive position, the options available would be to divest the business.
Businesses with high industry growth but low market share for a company are question or problem
children. They require large amount of cash to maintain or gain market share. In terms of PLC, the
question mark is usually product in introduction stage. “Question marks” are usually new products or
services which have good commercial potential. “Question marks may become ‘stars’ if enough
investment is made, or they may become ‘dogs’ if ignored. There are several industries in India where
many companies find themselves holding businesses which are ‘question marks’.
The main features of question marks are:
High industry growth
Low market share
The firm may adopt growth strategy for question marks. Various activities may be undertaken to
transform question marks into stars:
Penetration pricing strategy
Effective sales promotion and other elements of promotion mix
Dealers incentives
Enhancing customer relationship
EXAMPLE OF QUESTION MARK PRODUCTS OF BRITANNIA: -
Time Pass, Pure Magic, Cookies
DOGS:-
Those businesses which are related to slow-growth industries and where a company has a low relative
market share are termed as ‘dogs’. They neither generate nor require large amount of cash. In other words
if the business growth rate is low and the company’s relative market share also low, the business is
classified as dog. The low market share normally means poor profits. As the growth rate is also low,
attempts to increase market share would demand prohibitive investments. Thus the cash required to
maintain competitive position often exceeds the cash generated. There is a net negative cash flow. Under
such circumstances, the strategic solution is to liquidate the business. In term of PLC, the ‘dogs’ are
usually products in late maturity or decline stage.
The main features of dogs are:
Low industry growth
Low market share
The company may adopt retrenchment strategy. The company may adopt divestment strategy relating to
the business unit or product line, or close down the unviable business.
EXAMPLE OF DOG PRODUCT OF BRITANNIA: -
Nutri Choice
STRATEGIC IMPLICATIONS:
Most companies will have different segments scattered across the first four quadrants of the BCG matrix,
corresponding to cash cows but avoid over-investing. The surplus cash generated by cash cows should invited first
in star businesses, to maintain their relative competitive position. Any surplus cash left with the company may be
used for selected question mark businesses to gain market share for them. Those businesses with low market share
and which cannot be adequately funded may be considered for divestment. The dogs are generally considered as
the weak segments of the company with limited or no new investments allocated to them.
7. Discovering growth:
Second, there is the issue of growth. The long period of across-the-board expansion through the sixties and in
to the seventies spoiled us, and we now think of growth as more elusive. The easy conditions of broad market
growth have given way to more localized patterns of growth. These often involve substitution-not just
product-for-product substitution, but the substitution of one better way of doing business for another. Latent
customer needs must uncover, before they become obvious. Creating and exploiting growth opportunities in
these conditions calls for more insight, better preparation, and greater risk taking than before. Growth is often
where you make it. Growth opportunities often lie dormant within what at first sight appear to be low growth,
“mature” markets. This makes higher the importance of first-class, forward thinking staff work closely
combined with vigorous and decisive management. Building and sustaining a strong portfolio is more difficult
now, but more necessary than ever.
4. Variety of influences:
Long term profitability is subject to a variety of influences not directly tied to growth and market share. This
fact has not been considered adequately by the four-cell matrix. For example, in many industries,
organizations with low market share are able to earn high profit and sometimes outperform large rivals.
Similarly, high market share business in low growth market may not generate high cash surplus as the
competition is likely to be stiff and profit may squeeze.
5. Other dimension:
The four cell matrix gives consideration only to relative market share position and growth of sales. Though,
these are important dimensions but other dimensions are equally important from strategic point of view. These
may be stage of product, strategic posture of different businesses, presence of competitive position emerging
threats and opportunities, capital requirements, size of market etc.
1. BCG is a framework which measures the industry growth rate and relative market share so as to help the
firm identify each product either as a star or a dog and accordingly allocate its scarce resources.
2. BCG also helps a company analyze their various business units and product line, so as to formulate
different strategy as per their industry growth and relative market share.
3. As regards sales and promotion, BCG helps in brand and product positioning thereby creating brand equity
for each and every business unit separately and not as an entire company.
4. Every company and its various product lines go through a life cycle of introduction, growth, maturity and
decline and with BCG it is possible to manage these.
5. In today’s times only a multi product multi business diversified company can survive and a now in the
competitive market. This is possible only with BCG.
CHAPTER NO: 4
COMPANY PROFILE
ABOUT BRITANNIA
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.
Britannia is an Indian company, which holds larger share in the Indian Biscuit Market. Britannia has a leader
which is mainly in the sector of Bakery and Dairy products. The company was
founded in 1892 in Calcutta called as Britannia Biscuit Company. Out of all other
products from Britannia, one of its famous brands Britannia Biscuits is famous for its
taste which is sold all over the world at a reasonable and affordable price. Britannia,
one of the India’s biggest brands of the country, has a market share of 33%. A more-
than-a-century old Britannia has launched big brands in FMCG Segment.
The company is expanding its customer base by launching new products and renovating existing ones. Britannia s
brands now have greater availability in rural markets and pervasive presence in modern trade.
It launched various brands in biscuits, bread, cake & rusk business. It has launched brands like Tiger, Britannia
50:50, Good Day, Britannia Treat, Marie & many more.
The products of Britannia Company consist of Biscuits, Snacks and Dairy Products. The objective of Britannia
Biscuit Company is to help people enjoy life through healthy snacking which is available in all over the stores
world-wide at anytime, anywhere and every day. The competitors for Britannia are the Biscuits sectors are Parle-
G, Sun feast. Britannia Tiger Biscuits has big competition with Parle Biscuits called Parle-G. Britannia 50-50
Biscuits has a big competition with Parle Krack-jack Biscuits. Britannia cream Biscuits called Treat has huge
competition with Sun Feast Cream Biscuits.
CHAPTER NO: 5
ANALYSIS
Yes 100%
No 0%
Biscuits
Yes No
100%
2. What type of biscuits you normally prefer
A) Branded B)Bakery Product
Branded 80%
Type of biscuits
Branded Bakery Product
20%
80%
3. How often do you eat biscuits
A) Once In A Month B) Once In A Week
C) Alternate Days D) Every Day
Once In A Month 7%
Price 33%
Buying factors
80%
70%
67%
60%
50%
Number of respondents
40%
30% 33%
20%
10%
0%
Price Brand Name
6. Please tick the brand normally prefer to buy
A) Britannia B) Parle-g
C) ITC (sun feast) D) Others
Britannia 47%
Parle-g 20%
Others 27%
27%
Britannia
Parle-g
47% ITC (sun feast)
Others
6%
20%
7. On the basis of the below mentioned categories please tick your likely choices
A) Sweet B) Salty
C) Others
Sweet 60%
Salty 20%
Others 20%
60%
50%
40%
60%
30%
20%
20% 20%
10%
0%
Sweet Salty Others
Number of respondents
8. If Britannia is not available in the shop will you look for it in the next shop
A) Yes B) No
Britannia is not available in the shop you look for it in the next shop Number of respondents
Yes 60%
No 40%
Britannia is not available in the shop you look for it in the next shop
40% Yes
No
60%
9. If the retailer gives you another brand of biscuits instead of Britannia, will you buy
A) Yes B) No
53%
52%
51%
50%
53%
49%
48%
47%
47%
46%
45%
44%
Yes No
Number of respondents
10. Please rate the attributes of the various biscuits given below
On a scale of 1-5 (1 being the least important and 5 being the most important)
Attributes Britannia Parle-g ITC (sun feast)
Crispness
Size
Nutrition
Ingredients
Freshness
Color
Flavors
Britannia 40%
Parle-g 47%
Number of respondents
50%
45% 47%
40%
35% 40%
30% Number of respondents
25%
20%
15%
10% 13%
5%
0%
Britannia Parle-g ITC (sun feast)
11. I like Britannia because (tick any one)
A) It satisfies my hunger B) It makes me feel energetic
C) It is the healthiest breakfast I can have D) Any other ____________
Number of respondents
13%
12. Please tick the Britannia biscuit you like most
A) Britannia Tiger B) Britannia 50-50 C) Britannia Nutri Choice
D) Britannia Milk Bikis E) Britannia Treat F) Britannia Time Pass
G) Britannia Good Day H) Britannia Marie Gold
Britannia Treat 7%
Number of respondents
Britannia Tiger
Britannia 50-50
Britannia Nutri Choice
7% 20%
Britannia Milk Bikis
20%
Britannia Treat
7% 20% Britannia Time Pass
Britannia Good Day
20% 6%
Britannia Marie Gold
13. Which TV commercial of Britannia appeals you most (tick any one)
40%
40%
35%
30%
25% 20%
20% 13% 13%
15%
7% 7%
10%
5%
0%
50-50 Tiger Little hearts Mariegold Treat Goodday
Number of respondents
FINDINGS
From the survey concluded that 100% of the respondents eat biscuits
80% of the respondents normally prefer branded one and the remaining prefer bakery product
From the total number of respondents 40% eat biscuits once in a week and the remaining respondents
answered that 33%,20% and 7% respondents eat biscuits every day, alternate and once in a month
respectively.
The number of respondents answered that 53% they like mix of sweet and salty tastes and the remaining
answered that they like sweet taste.
67% respondents answered that they buy the biscuit product by brand name and the remaining respondents
buying factor is price
47% normally prefer to buy Britannia than the other one
60% of the respondents likely choice is sweet biscuit than salt and any other
60% of the respondents answered that they will look for the next shop if Britannia is not available in the shop
50% of the respondents will not buy the biscuit of another brand instead of Britannia
40% of the respondents rated that the Britannia attributes is nice of its color, flavor, crispness etc. 47% of the
respondents rated that the Parle-G is better than the Britannia.
40% of the respondents answered that it satisfies their hunger
20% each of the respondents answered they most like tiger, 50-50, milk bikis, good day and 7% each of the
respondents answered that they most like treat and marie gold and the remaining 6% answered that most like
is nutri choice
From the total number of respondents the 40% of the respondents answered good day tv commercial of
Britannia appeals the most
CHAPTER NO: 7
APPENDIX
7.1 ANNEXURE-QUESTIONNAIRE
Name: ______________________________
Address: _____________________________
13. Which TV commercial of Britannia appeals you most (tick any one)
7.2 BIBLIOGRAPHY
www.cimaglobal.com
www.accaglobal.com
www.managementmania.com
www.bcg.com
www.cesc.co.in
www.marketing91.com