Britannia Industries Limited is an India-based corporation that produces food-related products. The company was found in 1892 and has its headquarters in Kolkata, India. It is one of the oldest companies in India. The company produces biscuits, dairy products, bread, cakes, rusk, and so on. Britannia also exports its products to more than sixty nations across the globe (Britannia, 2018). The company holds a large market share in India that allows it to reap large profits. In 2017, the company earned revenue of $1.3 billion and had more than 3200 employees (Britannia-2, 2017). Across the globe, the company faces competition in various forms. Even in India, there are various brands the company shares the market with. However, Britannia is known for its quality.
Following are the four dimensions of the Ansoff Matrix for Britannia:
Market Penetration
Britannia carries out market penetration by promoting its current products in existing markets. The first strategy the company uses is to regularly change the packaging to increase its attractiveness and maintain its presence in the market. The company also motivates its current users to increase the consumption of its products by advertising and marketing its products. Britannia highlights the nutrient benefits of the products to encourage users to consume more as the products are healthy. The quality of the products is also improved. It also adjusts its products to meet the needs of consumers by offering various packaging sizes to meet all consumer segments. Britannia also promotes its products in alliance with other companies to generate mutual benefits. This allows Britannia to further penetrate its existing market and increase its sales.
Market Development
The activity of launching existing products in new markets is referred to as market development. Britannia develops its markets by entering new geographic regions with its existing products. When in a new nation or market, it markets its existing products through various marketing channels to create awareness. The product packaging is also changed in terms of language, appearance, and information to meet the needs and regulations of the new markets. Since it is a food company, it has to comply with all local food standards in terms of quality, packaging, and labeling. Britannia also offers different packaging sizes based on consumer requirements in different markets. When Britannia enters a new market, it works on the marketing of the products and offering discounts to motivate consumers to purchase its products. As a result, it can successfully enter new markets as a part of its market development strategy.
Product Development
The launch of new products in existing markets is termed as product development. Britannia does this in various ways. The first strategy is to offer new flavors of its existing products. Another strategy is to create new products and then launch them. These include sugar-free biscuits, different flavors, new shapes, and so on. The new products are extensively marketed to motivate consumers to try them. Britannia also offers different products and amends them based on market requirements. For example, the taste buds of Indian consumers differ from those of British consumers forcing the company to develop a greater variety of flavors. This requires the company to research different flavors with different products and then develop them as per consumer needs. Britannia also creates new products such as ice cream, butter, cookies, and other items that it did not produce earlier. Thus, Britannia does product development in various ways.
Diversification
Britannia has launched new products in new markets in numerous ways. It launched its dairy line of products in a new market segment by marketing the new products through an extensive marketing campaign. The same goes for baked goods and other products. The company produces its own products. The company can horizontally diversify by entering various other related industries such as baby food, snacks, beverages, FMCG, and so on (MBA Skool, 2015). It can also diversify into unrelated industries such as detergents, pet food, energy drinks, and consumer goods. It can develop a conglomerate by diversifying in various directions. It can enter both related and unrelated industries to take advantage of the brand name it has. This will allow Britannia to increase sales and generate greater revenue.
References
Britannia, 2018. OVERVIEW. [Online] Available at: http://britannia.co.in/about-us/overview [Accessed 01 Jan. 2020].
Britannia-2, 2017. Annual Report 2017. [Online] Available at: http://britannia.co.in/pdfs/annual_report/Britannia_Annual_Report_2016-17.pdf [Accessed 01 Jan. 2020].
MBA Skool, 2015. Britannia – Identifying New Product Development Opportunities. [Online] Available at: https://www.mbaskool.com/business-articles/marketing/12828-britannia-identifying-new-product-development-opportunities.html [Accessed 01 Jan. 2020].