According to recent data available from ORG-MARG, Britannia's market share has dropped to 45.2 per cent in October from 46.5 per cent in September.
One of the top volume drivers for Britannia, Marie is seen losing market share to local brands. Though top-end Cream Treat and Maska Chaska are reportedly doing well, there has been decline in Marie, Good Day and Milk Bikies, the ORG-MARG report said.
Some regional players such as Priya Gold Biscuits are offering products replicating Britannia's mature brands at almost 50 per cent to 60 per cent less than Britannia's retail prices for similar products. According to analysts these players are not innovators but are very good in replicating old brands. Britannia's sale in semi-urban markets has been impacted by these local players, analysts said.
Parle has also launched several products across various price points which in addition to local players have "intensified competition’. But the analysts feel that that Britannia could gain its lost ground in near future through its new World Cup campaigns.
The company has already soft-launched cream variants of its growth engine Tiger in the semi-urban and rural markets. Britannia plans to double its sale of cream variants under Cream Treat by 2004 March. The high margins from Treat is likely to help Britannia shore up its bottomline in future, even as the company plans to plough back a part of the profit to boost the brand to sustain a longer journey.