Demand Estimation for Britannia Biscuit Industry
Demand Estimation for Britannia Biscuit Industry
1.Introduction:
Our objective was to study the demand variation of Britannia Biscuits in India with respect to certain variables like, Price, Price of the substitute (Parle Biscuits), Income of Consumer and Population. To achieve this we assume all other factors like Tastes of Consumer, Advertising etc are constant. The biscuit industry is taken as a whole without differentiating between various segmented brands. To arrive at the demand function of Britannia, multivariate regression analysis has been used over non linear model. All data has been taken from the Centre for Monitoring Indian Economy (CMIE) database.
1.1 Biscuit Industry in India:
Indian Biscuit Industry is the largest among all the food industries and has a turnover of around Rs.3000 crores. India is known to be the second largest manufacturer of biscuits, the first being USA. However, the per capita consumption of biscuits in India at 2.1 kg is considerably lower than other countries. It is classified under two sectors: organized and unorganized. Bread and biscuits are the major part of the bakery industry and covers around 80 percent of the total bakery products in India. Biscuits stand at a higher value and production level than bread. This belongs to the unorganized sector of the bakery Industry and covers over 70% of the total production.
India Biscuits Industry came into limelight and started gaining a sound status in the bakery industry in the later part of 20th century when the urbanized society called for readymade food products at a tenable cost. Biscuits were assumed as sick-man's diet in earlier days. Now, it has become one of the most loved fast food products for every age group. Biscuits are easy to carry, tasty to eat, cholesterol free and reasonable at cost. States that have the larger intake of biscuits are Maharashtra, West Bengal, Andhra Pradesh, Karnataka, and Uttar Pradesh. Maharashtra and West Bengal, the most industrially
1.Introduction:
Our objective was to study the demand variation of Britannia Biscuits in India with respect to certain variables like, Price, Price of the substitute (Parle Biscuits), Income of Consumer and Population. To achieve this we assume all other factors like Tastes of Consumer, Advertising etc are constant. The biscuit industry is taken as a whole without differentiating between various segmented brands. To arrive at the demand function of Britannia, multivariate regression analysis has been used over non linear model. All data has been taken from the Centre for Monitoring Indian Economy (CMIE) database.
1.1 Biscuit Industry in India:
Indian Biscuit Industry is the largest among all the food industries and has a turnover of around Rs.3000 crores. India is known to be the second largest manufacturer of biscuits, the first being USA. However, the per capita consumption of biscuits in India at 2.1 kg is considerably lower than other countries. It is classified under two sectors: organized and unorganized. Bread and biscuits are the major part of the bakery industry and covers around 80 percent of the total bakery products in India. Biscuits stand at a higher value and production level than bread. This belongs to the unorganized sector of the bakery Industry and covers over 70% of the total production.
India Biscuits Industry came into limelight and started gaining a sound status in the bakery industry in the later part of 20th century when the urbanized society called for readymade food products at a tenable cost. Biscuits were assumed as sick-man's diet in earlier days. Now, it has become one of the most loved fast food products for every age group. Biscuits are easy to carry, tasty to eat, cholesterol free and reasonable at cost. States that have the larger intake of biscuits are Maharashtra, West Bengal, Andhra Pradesh, Karnataka, and Uttar Pradesh. Maharashtra and West Bengal, the most industrially
References: • Managerial Economics Principles and Worldwide Applications, Sixth Edition, Dominick Salvatore • Marketing Management , A south Asian Perspective,13th Edition, Philip Kotler • Quantitative Methods for Business, 10th Edition, David Anderson • http://business.mapsofindia.com/india-industry/biscuits.html • http://en.wikipedia.org/wiki/Britannia_Industries • https://www.cia.gov/library/publications/the-world-factbook/print/in.html