NAME: - Prajwal Khandare

ROLL NO: - 20MBAMKT090

Taste and Preference for Biscuits

Facts :-

 Indian market till recently was a seller’s market. Producers and marketers
dictated terms of trade to consumers.
 Information on prices, income and other quantifiable variables gave
accurate anticipation of demand as supply was always structured.
 Now, it is a buyer’s market where buyer is king and producers have to
consider price of competitors, income of consumer, demographic profile of
consumers and even their psychographic profile.
 Today, Britannia has 40% market share and Parle has 30% market share in
the Indian biscuit market segment.
 Rural market share of Britannia Industries is just 20-22% of their overall
sales while Parle G has 55% rural market share.
 Parle has a higher share in the glucose segment over Britannia. The glucose
segment accounts for 35% of the total biscuit sales.
 Britannia have begun advertising heavily and adding attractive red colour
packaging in rural markets.

ASSUMPTIONS :–

1. Parle and its products are more popular in rural areas because they have been
in the market for many decades.
2. Urban consumers prefer salty, sweet-salty and creamy biscuits over regular
glucose.
3. Rural market consumers prefer just glucose/regular biscuits.
4. Novelty of Parle is reducing because it is fed even to animals now.
5. Britannia will overtake Parle in market share soon as they keep innovating
regularly and advertising widely.
SWOT ANALYSIS :-

1. Strengths :-
Parle has strong rural and urban presence and has strong sub brands like Parle G,
Krackjack and Monaco. Parle has good pricing strategy and good distribution channels. Parle has
managed to create an emotional connection with consumers.
Britannia has strong urban presence and strong sub brands under its belt. Britannia also has
good strategic price brakcets.

2. Weakness –
Parle hasn’t changed its packaging much or made it more attractive. Parle doesn’t focus
much on advertising and promotional strategies. Britannia isn’t seen much as a novelty brand
and it has not yet created an emotional or nostalgic bond with its customers.

3. Opportunities –
Parle is already a leader in the glucose biscuit market segment and it can pull further clear
there. Parle can add to their already very successful sub brands because they already have
brand trust and recognition. Parle can add more modern and attractive packaging to its
newer products. Britannia can expand further in rural markets with strategic pricing as they have
less share there and introduce new products suitable to rural area consumers.

4. Threats –
Parle faces threats by new emerging market entrants. Parle faces threats with competitors
for lowest pricing. Parle faces threats in advertising and innovation sectors. Britannia faces
threats by Parle G and Parle G Gold’s increasing strength and popularity. Britannia faces to get
the unwanted image of expensive-only biscuits.

Questions And Answer :-

1. Do you think taste and preference is an equally important demand

determinant for consumer durable goods ad capital goods as it is for
non-durable consumer goods?
Ans :- In my opinion if we are considering taste and performance to compare durable
and non-durable goods then these factors are more important in non-durable goods as compare to
durable good because food product comes under non-durable good in which taste is one of the
most important factor according to taste there are different segmentations in non-durable
goods,where durable goods industries are focused on authentic and ergonomic considerations.
 This paper is to investigate the consumer's buying decision of Fast Moving Consumer
Goods. Biscuits as a delicious food during morning and evening for tea break. Hence the biscuits
are moving fast in the market as all the people consumes variety of biscuits, bread, rusk, cakes
and dairy products. Hence it is inevitable to have a thorough study on consumer buying decision
in biscuits. The study also reveals the reason for buying the Biscuits. This study aims to analyze
the consumer buyer decision in purchase of Fast Moving Consumer Goods especially on biscuits,
and also analyze the satisfaction level of consumer in FMCGs products. The Convenience
samplings are used for the study. The structured questionnaire techniques that are used for data
collection from 40 respondents of people who are frequently consume FMCGs; collected data
are analyzed by the statistical tools like Simple percentage and Chi Square test.

2. What are the other attributes that other than taste and
preference the two market leaders in the biscuit industry are
considering?
Ans :- Biscuits are small flat cake that is crisp and usually sweet. It is concerned with the taste
and habits of the people. Previously, it was used as a diet for patients and energy and taste for
kids. Nowadays, biscuits are considered as a good alternative for oily snacks and fast food. So
currently, among all biscuits available in the market, Britannia has become one of the popular
biscuits among the people of all segments and ages. In business world, many brands of products
are produced and marketed by a single manufacture. The decision whether to buy or not depends
only on the basis of consumer motives. Modern market is consumer oriented and now the
consumer is the decisive force. Hence, it is inevitable to have a thorough study on customers‟
attitudes and preference towards Britannia products and also the research world reveals the result
about satisfaction level and consumer preference towards Britannia products under study area.

3. Is there market segmentation as far as taste and preference is concerned in

the biscuit industry?

Ans:-
Britannia products are liked by all individuals irrespective of age. So from childhood to
retirement age everyone is used to take Britannia biscuits as a delicious food during morning and
evening for tea breaks. Hence the Britannia products are moving fast in the market as all the
people consumes variety of biscuits, bread, rusk, cakes and dairy products. Now a days Britannia
has established its own market in major parts of the country. The retailers are the main
intermediaries who frequently meet the ultimate consumer of the Britannia product. They now
show the consumer preference and attitude towards products having different brands. Once they
lose the existing customer, they could not get them back. Further, they could not get potential
customers. Hence it is inevitable to have a thorough study on customer preference and attitude
towards Britannia product in Theni district. The study also reveals the reason for buying the
Britannia products. Random sampling and convenience sampling are used for the study. The
techniques that are used for data collection is questionnaire. The study covered 300 respondents
belonging to Theni district. Tools and techniques used are simple percentage, Chi Square test,
Garret ranking techniques and Factor analysis. The study shown that the majority of consumed
Britannia product and the entire respondents are aware of Britannia products. Various factors are
analyzed for buying Britannia product.

4. Discuss the ‘Taste and Preference’ of modern Indians. How is Britannia

catering to it? Is Parle at par with its rival while catering to the taste and
preferences of urban consumers?

Ans:-
Flashback in the early 1980s, Parle donned a new name from Gluco it renamed its brand
to Parle-G. The whole concept to distinguish itself from a arrays of similar look-alike brands
springing up in the market for consumer attention.

The Idea made sense and received success too. The glucose biscuit market in the country
was booming; glucose was universal for biscuits; being the biggest, Parle needed to stand out
from the mob of biscuit makers which it did considerably.

Simultaneously, Parle’s rival Britannia, which had biscuit brand Glucose-D, then
recognized by the late Amjad Khan (who played the iconic villain character of Gabbar Singh in
the cult movie – Sholay), was also planning to single out itself, though in a premium way.

Britannia, the maker of the ‘Gabbar ki asli pasand’ biscuit rolled out a premium biscuit
brand – Good Day-in 1986. There was a risk involved, as the segment was new, the market was
overwhelmingly in favour of glucose biscuits, and Parle-G was still leading and having a ‘good
day’ run.

Coming back to present scenario,  Glucose runs out of energy for the first time in India.
Cookies and cream had overtaken as the biggest category of biscuits in 2012. The momentum
only gathered pace over the next ten years.

In March-ended FY2020, the glucose market size was at Rs. 5,444 crore, a muted growth
over the last year, when it was Rs. 5,442 crore. Parle had a staggering 83% value market share.
According to FMCG analysts citing Nielsen market share data, rival Britannia had a meagre 10.4
percent.
 In the March-ended fiscal 2019-20, Britannia found a new market of Good Day. With a
market size of Rs. 9,429 crore (from Rs. 8,600 crore a year before), Britannia had a impressive
57.3% market share in premium biscuits. Parle is distant third with 9.4%, and behind ITC, which
garnered 17.1%. In premium cookies (over Rs. 5,500 crore category), Britannia rules with
67.6%. Thus the range of launching Good Day paid off.

Brand as well as bakery and confectionery market analysts are progressive, “Britannia
left Tiger back and has kept focusing on its premiumization strategy,” says Harish Bijoor, who
runs an eponymous brand consulting firm. The company today is a centre of many premium
brands that have made deeper inroads into markets. “This surely is testimony to the fact that
premium brands have a space in every ‘nukkad’ and every village as long as they come in
affordable packs,” he added.