Vector Ltd., is in the Fast Moving Consumer Goods industry. They introduced a new variety of biscuits in the market. It has high fibre content with different new flavours incorporating various multigrains. Create a tagline for the product and state which promotion strategy should be used by Vector Ltd.,
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Answer:
Dairy products contribute close to 10% to Britannia's revenue. The company not only markets dairy products to the public but also trades dairy commodities business-to-business. Its dairy portfolio grew to 47% in 2000-01 and by 30% in 2001-02. Its main competitors are Nestlé India, the National Dairy Development Board (NDDB), and Amul (GCMMF).
Britannia holds an equity stake in Dynamix Dairy and outsources the bulk of its dairy products from its associate.
On 27 October 2001, Britannia announced a joint venture with Fonterra Co-operative Group of New Zealand, an integrated dairy company which handles all aspects of the value chain from procurement of milk to making value-added products such as cheese and buttermilk. Britannia intends to source most of the products from New Zealand, which they would market in India. The joint venture will allow technology transfer to Britannia. Britannia and New Zealand Dairy each hold 49% of the JV, and the remaining 2 percent will be held by a strategic investor. Britannia has also tentatively announced that its dairy business (probably including Dynamix) would be transferred to the joint venture. However, the authorities' approval to the joint venture obliged the company to start manufacturing facilities of its own. It would not be allowed to trade, except at the wholesale level, thus pitching it in competition with Danone, which had recently established its own dairy business.
Performance and profitability
Between 1998 and 2001, the company's sales grew at a compound annual rate of 16% against the market, and operating profits reached 18%.[citation needed] More recently, the company has been growing at 27% a year, compared to the industry's growth rate of 20%.[citation needed] At present, 90% of Britannia's annual revenue of Rs 22 billion comes from biscuits.
Britannia is one of India's 100 Most Trusted brands listed in The Brand Trust Report. Britannia has an estimated
market share of 38 %