Britannia which is the leader in the biscuits segment faces keen competition from players such as Parle which is the leader in glucose biscuits nationwide and ITC’s Sunfeast range which has been gaining marketshare. In an attempt to protect its market share Wadia group major Britannia is focusing on improvements in sourcing, manufacturing and distribution to help mitigate the effects of high food inflation affecting its margins.
“Food inflation is a cause of worry for us. We can’t increase pricing everywhere. We have to see the product category to decide on that. So we are working on to keep costs as competitive as possible by looking at all ways and means to deal with the rising input costs” said Atul Sinha, vice-president, new business development, Britannia Industries (BIL).
To counteract this price pressure BIL is now focusing heavily on lower priced small packs. By varying with smaller packs thus brands seek to keep inflation-hit consumers within their fold, said experts.
The company is also test marketing a dairy based product Actimind for children. “At present we are test marketing the product in Chennai. It is a dairy based health drink targeted at children. The product is created to increase mental sharpness,” he said. The product is priced at Rs 15 for a 150 ml pack and it does not need to be refrigerated.