Case study: Britannia's strategic expansion into Argentina

Kalpesh m.

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Case study: Britannia's strategic expansion into Argentina

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Abstract

Argentina holds a profitable market for BIL, not only to increase revenue, but also to tap the market, otherwise unexplored by the firm. Post the severe slump in 2002, the sector is prospering at a y-o-y rate of 15.8% (Ebscohost, 2009). In 2007, the industry recorded a growth of 14.7% against 2006, thus manufacturing 3, 63, 234 tons of biscuits and cookies. In the fore mentioned period, consumption grew by 116.8%.

Hence, the sector is experiencing an enlargement of the pie, creating a winning situation. The report is a comprehensive study of the country's political, economical, socio-cultural, technological scenario. Besides, it also does an analysis of the market situation conducive to set up the business; the particular strategy to enter the market; the marketing strategies undertaken; human resource, financial and organizational structure.

Introduction
Company overview
Brand and products
Indian biscuit market and Britannia
Marketing and branding
Competitors
Operation, packaging and distribution
Overseas ventures
CSR activities
Country analysis
1. Political
2. Economical
3. Socio-culture
4. Technology
Market analysis
1. Food and beverage market in Argentina
2. Why Britannia in Argentina?
3. Why Arcor group?
4. The compatibility between Arcor and Britannia
5. Aid from the government
Plan recommendation
1. Entry strategy
2. Demography
3. Geographic segmentation
4. Targeting and positioning
5. The marketing strategy
6. The human resource structure
Conclusion
References

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[...] References: Argentina Government, (2007), Retrieved June 2009 from http://www.mecon.gov.ar/ BBC News, (March 2009), Leaders, Retrieved June 2009 from http://news.bbc.co.uk/1/hi/world/americas/country_profiles/1192478.stm BBC News, (Feb 2009), Leaders, Retrieved June 2009 from http://news.bbc.co.uk/1/hi/world/americas/country_profiles/1192478.stm Background, (2009), Retrieved June 2009 from http://www.britannia.co.in/overseas.htm Board of Directors, (2009), Retrieved June 2009 from, http://www.britannia.co.in/codeofconduct2.htm Brand Equity, The Economic Times http://www.g15.org/bulletinfebruary08.pdf Britannia Background, Retrieved June 2009 from, http://www.capitaline.com/user/framepage.asp?id=1 Britannia History, Retrieved June 2009 from, http://www.capitaline.com/user/framepage.asp?id=1, Business week, (April 2009), Marketing Strategies, Finance Asia, Retrieved June 2009 from http://www.businessweek.com/globalbiz/content/apr2009/gb2009048_130939.htm Business Week, (2009), Health, Retrieved June 2009 from http://www.businessweek.com/bwdaily/dnflash/apr2002/nf2002044_8925.htm CIA, (2009), Government, Retrieved June 2009 from https://www.cia.gov/library/publications/the-world-factbook/geos/ar.html Central Intelligence Agency, (2008), Overview, Retrieved June 2009 from https://www.cia.gov/library/publications/the-world- factbook/geos/AR.html Country Overview, (2004), Retrieved June 2009 from http://www.austrade.gov.au/Visiting-Argentina/default.aspx Culture, (2007), Retrieved June 2009 from http://www.argentina.gov.ar/argentina/portal/paginas.dhtml?pagina=183 Country Information, (2008), Retrieved June 2009 from http://www.argentina.gov.ar/argentina/portal/documentos/constitucion_in gles.pdf Department of foreign affairs and trade, (2008), Political tension, Retrieved June 2009 from http://www.smartraveller.gov.au/zw-cgi/view/Advice/ARGENTINA Das Sharma Punyabrata, (2009), Personal Communication, Activation and Production Manager, Britannia Industries LTD. [...]

[...] Arcor has 30 production facilities in Argentina (Distribution, 2009) with 13 distribution units that cater to the host market alone besides Brazil, Chile, Mexico and Peru. With an impressive 1,500 variants, and total sales over US$ 1.85 billion and an export of US$310 million, the firm offers employments and has a presence in 120 countries across the globe with offices in fourteen cities across all the five continents (Distribution, 2009). Arcor is in partnership with Mundo Dolce and Danone, Benvenuto among others. [...]

[...] of Argentina, n.d.) Technology Argentina entails several industry types like food and beverages, mining, information and communication technology, oil refining, machinery and equipment, textiles, chemicals and petrochemicals, all contributing to around of countries GDP growth. (Bureau of Western Hemisphere Affairs, Dec. 2008) The country embarks tremendous growth in terms of authentic improvement and progression towards software and IT services. It is estimated that by the end of 2011, Argentina would leverage its account in IT from just US$300 to US$3000$ through exports, generating a huge employment for around 70000 workers. [...]

[...] Financials By the virtue of the significant strategic alliance between the Wadia's and Danone in 1993, BIL did not experience any major setbacks (Parvataneni Anil, Personal Communication, 2009). The firm experienced a substantial growth of from in 2006 2007 to 45% in 2007 2008. The year to date growth, until 2009 is 24% (Go INDIA, 2009). Revenue by the end of the financial year 2008 capped at INR 26.2 billion and profit at INR 1.2 billion. Growth at the end of July August 2008 surpassed an up by 19% (Super Brands, 2009). [...]

[...] The United States Embassy (IMF, 2008) office in Argentina provides aid in establishing a congenial relationship between the two nations and its people. According to the 2005 study of Freedom in the World, Argentina is identified as free in Civil Liberties and Political Rights with an index of 2 (Library of congress, 2008) Reflecting a score of - 0.33 in the continuum between - 2.5 2.5 in the government's effectiveness (Library of congress, 2008), Argentina ranks low and displays inefficiency. [...]

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