Britannia is one of the best food product companies in India. Its areas of business include bakery, snacks, and dairy products. The company uses the best ingredients in its products without any compromise. Let’s have a look at the SWOT analysis of Britannia. But before that, this article will discuss the Britannia company.
Britannia Company: Overview
Britannia Industries Ltd. is a renowned multinational food company with its headquarters in Kolkata. The company is associated with the production of cakes, bread, biscuits, beverages, milk, cheese and yogurt. Many generations of India have witnessed the growth of Britannia. Britannia is cherished not only in India but also in the world.
Britannia is a leading food company with a 100-year legacy. Its revenues exceed rupees nine thousand crore. Varun Berry has been acting as CEO since 2014. SWOT analysis of Britannia 2020 reveals the company has earned INR 11,878.95 crores in 2020. Britannia company believes that sustainability leads to a safe environment. The company is a part of its parent company Wadia Group and was founded in 1892.
Britannia Company Details
| Company Name | Britannia |
| Headquarters | Bengaluru, Karnataka, United Kingdom |
| Business Category | Consumer Packaged Goods |
| Founded | 1892 |
| CEO | Rajneet Kohli |
| Global Employee Count | 1k-5k |
| Website | britannia.co.in |
Britannia Company: SWOT Analysis
SWOT refers to ‘S’ for strengths, ‘W’ for weakness, ‘O’ for opportunities, and ‘T’ for threats. We will get a thorough insight into the company’s performance through a SWOT analysis of Britannia company.
SWOT Analysis Strengths of Britannia
#1.Leading Company in Bakery: Britannia company plays a vital role in the Indian food market. It is a leading company in the bakery industry in India. The company holds a market share of about 30% in India in biscuit production. Britannia Company maintains sustainability in its production of healthy and delicious biscuits, bread, cakes, and other dairy products.
#2. Growth Strategy: During the Covid crisis, the company followed the 80:20 rule. According to the growth strategy, Britannia company emphasized 20% of some brands like Marie Gold, Nutri Choice, and Milk Bikis. These brands contributed 80% of the total revenue of the company. This strategy helped the company to perform better in productivity and to enhance production efficiency.
#3. Focus on Biscuit Segment: Britannia gains 80% of revenues from the biscuits category. Unlike its rivals Nestle, and Parle, Britannia has focussed on its competence in the biscuit category.
#4.Launch of A New Category: Britannia has launched the Britannia Gifting section which offers customers to choose a Britannia Subbh Kamnaye as a gift hamper. The customers can personalize it with a message and photo and can deliver it to their loved ones. Britannia Subh Kamnaye Biscuits, high-quality cookies, are mainly for gifting purposes during Indian festivals like Diwali, Holi, etc.
#6. Long Legacy: Britannia company maintains a long legacy of more than a hundred years. During British rule, a baker made some delicious golden biscuits for the British officers. Over the years, Britannia has offered Indian families fresh and delicious biscuits.
SWOT Analysis: Weaknesses of Britannia
#1. Excessively Dependent on Biscuit Industry: The biscuit segment contributes 80-85% of the revenue of Britannia. Overdependence on the biscuit industry may affect their long-term business.
#2. Low Export: Apart from India, Britannia has extended its footprints in Dubai and Oman. Its export of products is below expectation.
#3. Dairy Business: Britannia earns only 5% of total revenue from dairy products.
#4. Similar Commodities By Different Brands: For example, Bourbon biscuit is produced by Britannia, Parle, and other small companies. Therefore, consumers get confused about the product and it leads to loss of the company.
SWOT Analysis: Opportunities of Britannia
#1. New Dairy Products: Britannia is trying to improve dairy products with organoleptic features. It can enable the company to increase its market share.
#2. International Markets: Britannia is trying to penetrate foreign markets and expand its business.
#3. E-Commerce: Britannia has increased e-commerce sales. The company now can earn revenue through online stores.
#4. Sustainability: Britannia believes in sustainability, which ensures a safe environment. It focuses on the sustainability of its ingredients and packaging.
#5. Healthier Products: The modern world craves for healthier food products which are the priorities of Britannia company.
SWOT Analysis: Threats of Britannia
#1.Fake Products: Many companies are now producing biscuits with low-quality ingredients and selling them under similar names like Britannia company. These products are not as healthy as Britannia biscuits and cookies. But customers get confused and dissatisfied with these products. It damages the brand’s reputation.
#2. Increased Price of Raw Materials: The raw materials required for the production of biscuits are wheat flour, milk, and sugar. If the price of raw materials increases, the cost of production also increases.
Conclusion
SWOT analysis of Britannia reveals that Britannia is a trustworthy company. However, it faces a variety of challenges during its journey. It needs to develop the research and development sector so the brand can face tough competition from its rivals.
