Published by MBA Skool Team, Last Updated: March 05, 2021
PESTLE Analysis of Britannia analyses the brand on its business tactics. Britannia PESTLE Analysis examines the various external factors like political, economic, social, technological (PEST) which impacts its business along with legal & environmental factors. The PESTLE Analysis highlights the different extrinsic scenarios which impact the business of the brand.
PESTLE analysis is a framework which is imperative for companies such as Britannia, as it helps to understand market dynamics & improve its business continuously. PESTLE analysis is also referred to as PESTEL analysis.
Let us start the Britannia PESTLE Analysis:
The political factors in the Britannia PESTLE Analysis can be explained as follows:
Britannia is one of the largest FMCG companies having a wide product portfolio. There are a number of political factors which influences the FMCG industry as a whole. For Britannia, the raw materials, manufacturing and selling of its products require right government policies, GST regulations etc. as well as associated government incentives. There is approval of investment of up to 100% foreign equity in single brand retail and 51% in multi brand retail. Even the union Government’s production linked incentive scheme can give a major boost to export its products in the international market.
Below are the economic factors in the PESTLE Analysis of Britannia:
A number of economic factors have an impact on buying power of consumers and overall profitability for Britannia.
During the pandemic lockdown, people usually preferred packed trusted consumer goods like that from Britannia. And even now with the situation improving, people prefer and trust brands for daily consumer goods like a biscuit etc. The overall economic conditions which include employment rate, wages, inflation and prices affect the decision of consumers. People nowadays go after the trusted brand names keeping in mind the hygiene and confidence aspect. They tend to keep a stock for themselves and buy in large quantities with given discounts. With the inflation and unemployment going down, it has a positive market stand with rising consumer demand for its products.
Following are the social factors impacting Britannia PESTLE Analysis:
Some of the social factors such as age, gender, family size and structure, location, education level and population density affect the consumer’s lifestyle and demand for consumer goods from companies like Britannia. As we move towards urban areas and cities, people tend to buy more packed goods. Children usually have the power to influence their parents to buy products like biscuits, cakes etc. Society impacts the choices and buying decision of consumers. People usually prefer safe and hygiene eatables for them now as Covid-19 pandemic spread. All these factors make it preferable among a large diverse consumer in the market. If the right STP (Segmentation, targeting, positioning) is done, it can prove profitable for the company.
The technological factors in the PESTLE Analysis of Britannia are mentioned below:
With the emerging digital technology such as AI, cognitive intelligence and handy smart phones trend, FMCG companies like Britannia stands in a good position. As E-commerce websites and applications attract a lot of potential and existing consumer base, online ordering and selling of consumer goods is catching up. With its wide and growing portfolio of products ranging from Biscuit, Bread, Cake, Rusk, Dairy etc., it has a competitive advantage of selling through product bundling on E-commerce platforms. Technological factors are very important whether in terms of supply chain, sales or customer service. Online order and delivery mechanism is leading to exponential growth of Britannia by reaching a wider market than through only brick and mortar stores. With lockdown in place, online demand was huge for its dairy as well as bakery product ranges with the convenience provide by technology.
Technological factors are really proving profitable for the company to grow its business and reach wider target market with high profits.
Following are the legal factors in the Britannia PESTLE Analysis:
It can get impacted by numerous legal factors in any country it has business presence. Some of the factors such as time taken for court proceedings and the delay in the enforcement of rules in a timely manner can impact the business. Even the laws regarding monopoly and restrictive trade practices in a country is a major factor and can be an opportunity as well as a threat in different ways. The consumer protection law and even the protection of intellectual property rights can affect Britannia. Consumer petitions and many other challenges from authorities can influence the FMCG companies. The functional level strategies should be legally bounded for Britannia to keep its business growing and for generating maximum profits.
In the Britannia PESTLE Analysis, the environmental elements affecting its business are as below:
Companies face a lot of regular scrutiny by environmental agencies like NGT etc. for anti-environment related activities and processes which leads to environmental disturbance. A lot of customer activism is also taking a toll on the business processes and products. Even the products packaging in the form of plastic is not allowed in many countries. This leads to high costs sometimes and ultimately affects the business sales and revenues.
There are a lot of ethical issues as well in the marketing campaigns which can impact the business environment. As awareness on waste management is on rise, Britannia is obliged to follow environment friendly practices in all the operating countries. These environmental factors are inevitable for the company today to take into account as people have become more environment conscious and so do other competitors.
To conclude, the above Britannia PESTLE Analysis highlights the various elements which impact its business performance. This understanding helps to evaluate the criticality of external business factors for any brand.
This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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