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Marketing, pricing and brand concepts
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Most admired biscuit manufacturing firm of India by taste and delivering healthy family product. SITUATION ANALYSIS PBCL is a well-established biscuit manufacturing firm in the South Indian Market since the early 70s. The firm not only manufactures biscuits but also has a presence in other product lines of the company such as dairy and bakery products. The brand value is good in the market. Although the firm is not yet in the position of being a market leader through marketing strategies, the firm aspires to increase its consumer base as well as its product offerings and ultimately become the market leader. Currently, it is in a neck-to-neck competition with NFL. It has a strong distribution channel with the scope to do better. The company wants to further expand into other regions and also start a business in the cream section for the rural market. MARKET SUMMARY PBCL possesses a good Market share of 34% and gives neck to neck competition to NFL which currently holds a 40% share of the market. There are other players also in the market such as Golden Bakery, IBP as well as emerging local companies. All the companies offer various products such as glucose biscuits, salt biscuits and cream biscuits. Although not every firm provides all kinds of products. There is some untapped potential in the market and PBCL should move towards taking advantage of that by performing market research, analysing the trends and formulation of marketing strategies. CAGR over the past 3 years of 5.19%. Overall YoY growth of approximately 7.8% in revenue. Cream biscuit in semi-urban and urban has a higher than the average growth rate and brings in approximate around 1/7th of the total revenue. An opportunity to target this market is there. The glucose rural market has a higher growth rate than average. Salt biscuits have less competition and no company is providing cream biscuits in the rural market. MARKET DEMOGRAPHIC The profile for a typical biscuit consumer consists of the following geographic, demographic, and behaviour factors: Geographic- PBCL has set a geographic target area in the southern, eastern and northern regions. By targeting, cream biscuits in the southern, glucose and salt in the northern and salt in the eastern market, the company can further boost its revenue and challenge the market leader
Indian market is predicted to grow by 11.27%, in value terms, during 2017-2022, to reach $ 7.25 billion by 2022. The Indian biscuit market is segmented on basis of type, distribution channel, packaging, region and company. It is growing significantly because of changes in consumer taste and preferences. The market trends have been showing continued growth for biscuits in all directions. Change in consumer preferences for healthy snacks is increasing the global biscuits market. The company has put up state of art plants in the three major metros and Uttaranchal. The company also has seven contract manufacturing operations all over India. Salt biscuit in the rural market has seen a 5 per cent YoY increase in revenue in 2017-18 to 2018 - 19. Can be a promising market for penetration as it has very low competition. Glucose in rural market is having 9 per cent YoY increase in revenue in 2017-18 to 2018-19 and cream having about 11 per cent in urban. MARKET GROWTH Along with the major biscuit players in India, many regional players have also turned up. These players have somewhat similar production facilities to the renowned ones. Their biscuits are also well packaged and healthy to eat is available at lower prices which makes them more affordable for the consumer belonging to the low-income group. To increase sales and also the product value, companies have started to launch new products and use various innovative marketing strategies. The market is expected to reach $ 7.25 billion by 2022. With the price of biscuits going down due to competition by new entrance companies, the market has had a steady growth in India, although sales have slowed down. More and more people are discovering the taste, health and price benefits of biscuits. SWOT ANALYSIS Strengths-
Weaknesses-
Currently, S&L is into the cream biscuit category in urban areas of the Eastern region. The company is a part of a group of companies that are a leading chain involved in the marketing, selling and distributing of reputed FMCG products in Eastern India. So, the brand will be a tough competition for us in terms of distribution and marketing networks if we enter the eastern zone. IBP- IBP is a new player and is only in two categories of biscuits, Glucose & Cream that too mainly in urban areas. To penetrate the semi-urban markets, especially in the cream segment they are using underpricing strategy. The brand has a strong distribution network in urban markets of the eastern region which can be a threat to us if we enter that market. Apart from this currently, the glucose biscuit category is highly competitive in all three areas (urban, semi-urban and rural) and for our brand, 56% of the market that we cater to considers biscuits for everyday consumption which mainly includes Glucose biscuits. This means that a large chunk of our source of revenue is facing tough competition from all the other players in the market. PRODUCT OFFERING PBCL offers various products –
sugar-free biscuits will prove to be profitable for the firm as well as increase its consumer base in the long run.
