Themes : Marketing Mix
Period : 1997-2000
Organization : Britannia Industries Ltd
Pub Date : 2001
Countries : India
Industry : Food, Beverages & Tobacco
- Nusli Wadia, Chairman, Britannia Industries Limited.
- Sunil Alagh, CEO, Britannia Industries Limited.
An old maxim goes, 'Why does something when it ain't broke?' This may be the credo of most firms, but not of the food major, Britannia Industries Limited (BIL). In 1997, BIL, whose business seemed to be doing well, instead of concentrating on it, virtually charted a new course by seeking to reinvent itself. It built a new corporate identity and adopted a colourful and identifiable logo with a new base line - 'Eat Healthy, Think better.' From being a manufacturer of baked products, BIL kicked off a diversification exercise to become a comprehensive foods and beverages company making cheese and other dairy products, in addition to its bakery products. |
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Others felt that BIL's makeover decision may have been influenced by the threat of potential competition. They also felt that with the organised biscuit market in India being commoditised, and the major chunk being controlled by the unbranded segment, reliance on biscuits alone could be detrimental to its long-term interests.
However, some analysts were of the opinion that the diversification of BIL into relatively new areas was risky, and that it should have concentrated on its core competence, the biscuit business. By the end of 2000 the exploits of BIL seemed to have fructified, at least in the short-run. In a survey conducted by A&M1, BIL emerged as the number one food company well ahead of competitive brands like Nestle and Cadbury. BIL's dairy business seemed to be doing reasonably well.
1] A&M market survey conducted in 1999.