Makeover of Britannia

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A Path Less Travelled Contd...

In the cheese segment it stood second with about 35% market share. In the bakery segment also it was doing well, with its biscuits business making significant inroads. Its positioning plank, 'Eat Healthy, Think Better' also seemed to have struck the right chord with its customers. Said Sunil Alagh (Alagh) "Our brand today represents family trust, quality with a contemporary, youthful image."

'Food for Thought' BIL, since its inception had been mainly involved in the manufacture of biscuits, which contributed around 85% of its revenues (1997). The biggest problem then, for the 80-year-old BIL was that its name was strongly associated by customers with biscuits (or more broadly bakery products). With the de-reservation of biscuits from the small sector and commoditisation of the Rs 3500 crore biscuit market, coupled with cutthroat competition after the entry of multinationals and stagnating net profits, BIL looked for a fresher approach to survive and prosper. BIL realised that it would have to scale up its marketing strategy in its main line of business and in addition tap new food categories to grow. One reason why BIL seemed to have woken late was that the company didn't have a proper parent until the French food and beverages major, Danone, acquired RJR Nabisco's holding in the company2. BIL seemed to have realised that the time had come to change the rules of the game.

It crafted a makeover plan to diversify into new but related areas, and at the same time consolidate and improve its core business, biscuits. By doing so BIL hoped to remain the market leader in biscuits and become a major player in related businesses also.

Donning a New Look

As a first step in its makeover plan, BIL hired a Paris based design studio- Shining Strategic design, to craft a new logo and corporate slogan. Its work involved understanding the perceived and potential value of the brand where everything from colours and symbols to the typeface, was evaluated. The work also involved looking at the potential of the market and seeing where BIL could venture in future.

Research³ showed that the brand 'Britannia' was synonymous with trust and quality, and the wide portfolio of products was seen as a source of strength. But, BIL was aiming at faster growth, by expanding its business within the bakery segment and in select synergistic areas.

Consumer research conducted with these specific objectives in mind, brought to the fore two key issues: 1. Although the brand had tremendous strength associated with it, it needed to communicate modernity strongly. 2. It needed to assure the customers that apart from being a trusted and a familiar brand, it was also a contemporary one, and changed with the times.

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2] It was only in 1993 that Danone, along with Bombay Dyeing's Nusli Wadia, consolidated its 44 per cent stake in BIL, and put in place a stable management.
3] Between late 1995 and early 1997 BIL conducted qualitative and quantiative research surveying over 5000 consumers to find out how they perceived the brand.

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