Britannia Industries Ltd has recently launched its new product Pure Magic Deuce, a super-premium biscuit variety. This launch comes across as a strategy since the company is looking at reducing prices for some of its super-premium biscuits in order to attract more consumers and boost business.
For Pure Magic Deuce, Britannia had initially test-marketed selling four large biscuits for Rs 30. But when it finally launched Deuce on 2 January, it went with six biscuits to a pack to optimise the ratio of number of biscuits to price.
Biscuits account for around three-fourth of Britannia’s total sales and the company’s strength lies in selling premium varieties of the product over regular glucose biscuits, which are viewed as mass products.
Britannia’s plan to lower prices is partly based on the company’s previous success in launching smaller packs, for Rs 5, of its Good Day and Marie Gold premium brands to attract consumers, especially in the rural markets.
According to data from research firm Euromonitor International, biscuits as a category grew at a 10.6 per cent compounded annual growth rate (CAGR) between 2012 and 2017 and is led by Britannia, Parle Products Pvt. Ltd and ITC Ltd.