FMCG major Britannia is trying to push its biscuits category with an eye on the local markets and has come up with a strategy to woo consumers from Hindi Heartland.
FMCG major Britannia is trying to push its biscuits category with an eye on the local markets and has come up with a strategy to woo consumers from Hindi Heartland. The maker of Britannia Good Day cookies has deployed a strategy to win ‘Many Indias’, a report said on Monday. “Large brands like Good Day, Milk Bikis and Marie Gold have employed localized strategies to meet the unique needs of different markets and fight local players. A focused and localized strategy has been adopted for the Hindi Heartland states as well,” brokerage and research firm Motilal Oswal said in the report, citing management discussions.
The fast-moving consumer goods company has expanded into new categories such as cream wafers and milk shakes, which have been witnessing healthy sales. Britannia’s expansion in the Cream wafers category also promises growth as the segment is growing at a healthy pace. “Britannia is the first branded player with a large national presence to enter this highly fragmented category,” the report said. Of late, the company has been expanding at a stellar rate and has performed better than most of its peers as Britannia has increased its reach to over 5.5 million outlets and a direct reach of over 2.2 million outlets in the past 5 years. The expansion has also enabled it to ramp up its biscuits market share and grow new categories. It has also scaled up its milk procurement up to 25,000 liters per day from about a thousand farmers in and around Ranjangaon.
While businesses were severely impacted due to the coronavirus crisis, Britannia was able to manage the immediate challenge such as re-establishing normalcy in business operations. The FMCG major has also reduced its ad-spends and has moved to 100% reusable packaging materials, faring well on the sustainability front with efforts towards recycling, reducing and recovering used plastic, the report said. Labour crisis due to lockdown and other supply chain issues had hampered normal operations of many FMCG companies.