Answer to Question #314327 in Marketing for nana

Question

Britannia Marie Gold is facing severe competition in the markets where they were leaders. Due to entry of new players, the company has witnessed a decline in sales. The Marketing head has called for meeting along with the Brand Management team to discuss the way out to face the increasing competition.

a. What Line extension strategies would you suggest to counter the competition? Justify your answer.    (5 Marks)

b. Suggest an appropriate promotion mix for Britannia Marie Gold.   

Answer 1

Britannia Marie Gold is a popular and loved brand that stands for Tea Time Vitality. In order to enhance sales, the brand management team can find a solution with the following.

1) Line Extension

• Line extension is when the parent brand is used to brand a new product that targets a new market segment within a product category currently served by the parent brand. A line extension often involves a different flavor or ingredient variety, a different form or size, or a different application for the brand. As firms market one or more new products in an established market and well-known brand name as a multi-product branding strategy. The objective is to take advantage of the accepted and recognized brand name of the original brand and satisfy different customer needs and market segments. Britannia Marie gold can leverage its brand by creating the following line extensions:

a) Flavors:

Britannia Marie is an age-old recognized brand. Most of the consumers say 9 out of 10 have at least tasted it once. The strategy should be to capitalize on the brand’s recall and introduce new flavors such as Orange Vanilla or Chocolate. It is easy to make consumers try these new variants as the Britannia Marie Gold brand has strong recognition.

b) Special Ingredient: Britannia Marie Gold stands for Tea Time biscuit and is perceived as a low-calorie biscuit. A sugar-free variety can be introduced for the niche segment of consumers.

c) Packaging: Small packaging worth Rs 3/- can be introduced as a lot of consumers have 3 to 4 Britannia Marie biscuits as a Tea Time snack. Dieticians often recommend 3 to 4 Britannia Marie biscuits as an evening snack. This small pack will be a boon to consumers who are on the move.

Suggest an appropriate promotion mix for Britannia Marie Gold

Its portfolio of brands includes Tiger, Good Day, Marie Gold, and 50:50. It became the first company in the East to use imported gas ovens, and as a business, flourished and began to acquire its reputation for quality and value. Their main products include bread, biscuits, cakes, rusk, and dairy products. They have continued to release a steady flow of products over the years, for example, fruit bread, or the dairy product Half/Half. 90% of their revenue, however, comes from biscuit manufacturing.