Analysis of Sunfeast Cookies

Analysis of Sunfeast Cookies EXECUTIVE SUMMARY The main objective of the report is to comply to the various marketing theories that has been prevailing in the market and get a proper understanding of the real market. With the help of the ITC Sunfeast various functions and strategies were being discussed and discussed in respect to policies and path they have followed since they have been a successful player in the market. The consumer insight is studied to get a sense of various needs, demands and mind set of them. This is done with the help of questioning people at different places so that there is a glimpse of their buying pattern. The people interviewed were from different places of Gurgaon. COMPANYS OVERVIEW ITC stands for Imperial Tobacco Company of India Limited is an Indian Conglomerate whose market capitalization is of US $14 billion and turnover of over US $ 51 billion. ITC is a largest private cigarette company with a diversified portfolio which comprises of hotels and paperboards, packaging, agri- business, packaged foods, confectionary, branded apparels, greeting cards and FMCG products. Since company has its dealings in almost every sector creating multiple drivers of growth anchored on its time-tested core competencies and its has an unmatched distribution reach, superior brand-building capabilities, effective supply chain management and acknowledged service skills in hoteliering has Over time lead to the strategic forays into new businesses are expected to garner a significant share of these emerging high-growth markets in India. The Foods Division is the most recent diversification of the ITC Group. ITCs decision to enter the foods business is part of a strategic decision to develop new product lines by synergizing its core competencies in building brands, understanding the Indian consumers requirements and its strong distribution network as well as its established culinary expertise. ITCs diversified status originates from its corporate strategy aimed at creating multiple drivers of growth anchored on its time-tested core competencies: unmatched distribution reach, superior brand-building capabilities, effective supply chain management and acknowledged service skills in hoteliering. Over time, the strategic forays into new businesses are expected to garner a significant share of these emerging high-growth markets in India. Brands India Kings, Gold Flake, Scissors, Bristol (cigarettes), ITC-Welcomgroup (hotels), Wills Sport (range of casual wear for men and women), John Players (mens wear), Essenza Di Wills (fragrances), Kitchens of India (Confectionery, staples and snack foods), Aashirvaad (flour), Sunfeast (biscuits), Mangaldeep, VaxLit and Delite (safety matches), Expressions (greeting cards) and Classmates (school note books). This company is rated among the Worlds Best Big Companies by Forbes magazine. ITC ranks third on all major profit parameters among Indias private sector corporations. ITC employs over 20,000 people at more than 60 locations across India. ITC is rated among the Worlds Best Big Companies, Asias Fab 50 and the Worlds Most Reputable Companies by Forbes magazine, among Indias Most Respected Companies by BusinessWorld and among Indias Most Valuable Companies by Business Today. ITC ranks among Indias `10 Most Valuable (Company) Brands, in a study conducted by Brand Finance and published by the Economic Times. ITC also ranks among Asias 50 best performing companies compiled by Business Week. SUNFEAST In July 2003, ITC entered into Biscuits market with the Sunfeast range of Glucose, Marie and cream biscuits. The brand connotes to happiness, contentment, satisfaction and pleasure since its mascot Sunny and slogan spread the smile. In a span of 6 years Sunfeast has launched many new varieties and has its presence in almost all types of biscuit categories. At that time, Britannia and Parle held, between them over 82 per cent of the market in value terms. The rest too was firmly held by smaller players like Priya Gold which had a strong presence in the north. Three years down the line, however, things have changed a lot. It is a classic story of the hare and the tortoise. While it is far from winning the race, slowly and steadily, the tortoise is gaining ground. In foods, biscuits were tempting. The Rs 4,000-crore (Rs billion) Indian biscuits market has grown at 12-14 per cent year-on-year. Then, there was a business synergy. ITC was already value-adding to wheat with its branded atta presence. By entering the biscuits segment, it could also improve its bottom-line further. ITCs Sunfeast has a different story to tell so far. The strategist looks at the game plan of a late entrant and how the biscuits industry has responded. MARKETING ENVIORMENT MACRO ENVIORMENT Developments and implementing marketing plans requires number of decisions. Making those decisions is both an art and science. To provide insight into and inspirations for marketing decision making, companies monitor customer needs and update themselves so that they can continuously adapt to the environment. In 2003 when ITC entered the market there was a organized sector of biscuits which was estimated to be 0.8 million tons with a value of Rs 45 billion and Britannia and Parle were the major competitors. But the company realized that urban India comprising 27% of the population accounts for 44% of biscuit composition that consumers are looking for innovation, variety and fun in the entire biscuit category which other biscuit companies lack. DEMOGRAPHIC ENVIORMENT Since India is diversified and demographically vivid, hence the need is therefore very different. So the company catered the need of every life cycle as there is a product for children and even for elders and also for older people. Hence there is something for everyone and by this ITC dominated the market completely. ECONOMIC ENVIORMENT The available purchasing power in an economy depends on current income, price, saving, debt and credit availability. The company realized the buying potential of the Indian market and accordingly price the biscuits in a way so that it does not push the consumer and the price corresponds to the price of the competitors. So this way the customers will have a value for money as in the same price they will have a new and a better product. Moreover the focus was on the urban population hence the price was not such a matter of importance as the people of this category has high purchasing power. SOCIO-CULTURAL ENVIORNMENT The society shapes the beliefs, values and norms that largely define consumer tastes and preferences. People absorb, almost unconsciously, a world view that defines their relationship to themselves, to other, to other organizations and to society. So ITC launched a product which was in accordance with the beliefs of India as the ingredients contained in the product are those which were generally used by the people and moreover satisfied them and it was in also tune with the changing taste and preferences of the consumers. ITC believes that an effective growth strategy for the nation must address the needs of rural India, home to 75% of the countrys poor. It is imperative to ensure that Indias economic growth is inclusive, embracing its villages, so as to free millions of disadvantaged citizens from the indignity of poverty ENVIORNMENTAL ITCs impact on the environment as a result of its operations mainly concerns three areas: (a) release of greenhouse gases contributing to global warming; (b) consumption of water, both from surface and sub-surface sources, adding to the depletion of freshwater availability; and (c) generation of solid wastes, adding to the non-degradable waste being generated by industry. ITC has been at the vanguard of Indian industrys attempts to minimise its environmental footprints through strategic initiatives in each of these areas of global concern. Global Warming: In order to mitigate the effects of global warming, the Company is following a two-fold strategy: (a) reduce specific energy consumption in its operations through improved technology and processes; and (b) sequester greenhouse gases, especially carbon dioxide, through a large-scale forestry programme. Solid Waste Management: Non-degradable waste is a growing menace adversely affecting the environment. Three plans are in place to reduce solid waste within the Company and make it a zero solid waste company in the next two years. Water Conservation: ITC is mindful of the fact that freshwater in the country is increasingly becoming a valuable resource given that India accounts for 18% of the worlds population but has only 4% of global freshwater resources. MICRO ENVIORNMENT ITCs employment practices are premised on attracting and retaining talent based only on merit. The Company leadership walking the talk and a relentless focus on implementing the policy underlines the Companys approach to employment practices and creating a decent work environment. ITC is committed to employee engagement that upholds individual dignity and respects human rights. High standards of employment and EHS practices enhance the Companys performance, help in the attraction and retention of quality talent, and enhance the equity of the Company as a responsible employer. The primary objective is to nurture a culture of meritocracy amongst a committed and enthusiastic workforce from diverse backgrounds. The organizational structure is as follows:- DISTRICT MANAGER REGIONAL BRANCH MANAGER BRANCH MANAGER ASSISTANT BRANCH MANAGER 3 CIRCLE INCHARGE (CITY, METRO UP COUNTRY) AREA EXECUTIVE SUPERVISOR SALES MAN DISTRIBUTION SYSTEM ITC uses FIFO method to reduce the wastage of goods due to expiry. They also keep the good on constant move from low sales area to high sales area. The company collects all the expired goods four times a year, and destroys them. Retailers must return expired or damaged products within six months after the date of expire. Adjustment for them is done in three months time. ITC provides their retailers with racks, hangers, etc to display the products. MARKETING STRATEGY As one of Indias most valuable and respected corporations, ITC is widely perceived to be dedicatedly nation-oriented. Chairman Y C Deveshwar calls this source of inspiration a commitment beyond the market. In his own words: ITC believes that its aspiration to create enduring value for the nation provides the motive force to sustain growing shareholder value. ITC practices this philosophy by not only driving each of its businesses towards international competitiveness but by also consciously contributing to enhancing the competitiveness of the larger value chain of which it is a part. I The company seem to be committed with developing India and contributing in its own way not only to succeed in at a smaller level but making a difference at a global level in an international way. ITC VISION The companys vision is to sustain ITCs position as one of Indias most valuable corporations through world class performance, creating growing values for the Indian economy and Companys stakeholders. ITC MISSION To enhance the wealth generating capability of the enterprise in a globalising environment, delivering superior and sustainable stakeholder value is what the Companys mission is. STRATEGY With its one of its product which is Sunfeast the company is determined to give happiness, contentment, satisfaction and pleasure since its mascot is Sunny and slogan spread the smile which stood true to its name. ITCs Sunfeast is a brand driven by innovative product development at ITCs state-of-the-art food technology centre in Bengaluru. Every Sunfeast product is made with utmost care, ensuring world class standards of hygiene. Sunfeast symbolises ITCs commitment to create brands that enrich the quality of life for every Indian. Because our people and our country deserves the best. The product Sunfeast was launched in the midst when the biscuit market in India was estimated to be about a value of Rs 45 billion and out of that Britannia and Parle held more than 80% of the organized sector in value terms. ITC therefore decided to enter the branded biscuits market with products that would reinforce the gratifying aspects of the brand as well as offer great taste and quality to customers. The ITC can be a classical example of study as a tobacco company who deals in various products can be successful in promoting in marketing biscuits? The core competencies on which ITC relies on the depth of distribution, brand building capability and ability of quality outsourcing which made it successful. Sunfeast which was launched in 2003 was one of its diversified arrays apart from a tobacco product leader to a FMCG player. IT has a well developed system of distribution which can only be compared only to HLL. As ITC was one company who has its intervene in all major fields so this establishes Sunfeast among all over India and as well outside India. The biscuit market is to be estimated about 4500-5000 crore with Parle and Britannia being the major players. The biscuit market has now moved from core glucose to value added biscuits and key markets were U.P., Maharashtra and Tamil Nadu. While the rural market prefers Glucose biscuits and Urban market is fond of cream biscuits. The establishment of brand was never easy as the market is already having lead biscuit companies which were satisfying the needs of people. Sunfeast monitored the market demand and carefully handled promotion and brand building which made the brand to gain 10% market share. The product was made exciting by launching a series of convenience goods, new tastes and flavours which lead to an interest in the brand. The company continued a series of launching of products like Milky magic, coconut, strawberry, pineapple, butterscotch and cream and it also entered the premium biscuit category with Dark Fantasy. Moreover market research revealed that consumers were looking for innovation, variety, and fun in all the biscuits cateogries. A mascot, Sunny was chosen to convey these aspects of ITCs biscuit brands. Initial offerings included the Sunfeast Glucose biscuits, targeting children and their mothers; Sunfeast Orange Marie, targeting housewives and families; and Sunfeast Orange cream, Butterscotch cream and Bourbon Cream, targeting children in the age group between 4 and 14 years. Over the last few years, the Sunfeast range has expanded with the introduction of the Sunfeast Dark Fantasy range in the premium segment; the Sunfeast Milky Magic in the milk biscuit category; the Snacky in salted crackers and cookies category. In addition, ITC entered the nutritional biscuit segment with launch of Sachins Fit Kit- a range of healthy products co-created with the cricket icon. In 2007 the brand has a value of Rs 5 billion and is growing at 15% per year. MARKETING FUNCTION PRODUCTS http://www.itcportal.com/foods/images/top-banner-sunfeast.jpg Snack foods Sunfeast In July 2003, ITC forayed into the Biscuits market with the Sunfeast range of Glucose, Marie and Cream Biscuits. Sunfeasts brand essence, Spread the Smile connotes happiness, contentment, satisfaction and pleasure. The mascot Sunny reinforces the emotional aspects of the brand. In a span of 6 years Sunfeast has launched many new varieties and has its presence in almost all types of biscuit categories. Sunfeast Milky Magic http://www.itcportal.com/foods/images/sunfeast-milky-magic.jpg Packed with goodness of milk these deliciously nutritious crisp and crunchy biscuits are a favorite among mothers and kids. Milky Magic has the power of 2 A perfect balance of energy that aids physical strength and mental ability. These biscuits strike the right balance of milk and wheat which helps in an all round development and nurturing of the child. Sunfeast Marie Sunfeast Marie Light: This ideal teatime biscuit is made from the finest quality wheat high in fibre and keeps one light and healthy through the day. Orange Marie: It has the distinction of being one of the most successful innovative Marie biscuits and is liked by one and all. http://www.itcportal.com/foods/images/sunfeast-marie.jpg Sunfeast Golden Bakery http://www.itcportal.com/foods/images/golden-bakery.jpg Sunfeast Golden Bakery is a premium cookie on an innovative and differentiated platform. Launched nationally in March 2008, these cookies are made from the recipes crafted by the master bakers of ITC Hotels and are slowly baked in the traditional way till they are golden brown and develop the crispy broken crust texture. The Sunfeast Golden Bakery cookies are available in three distinct flavors Butter-Nut, Butterscotch and Choco-Nut cookies. These products are designed to give consumers a rich truly indulgent experience. Sunfeast Dark Fantasy Inspired by the Master Chefs of ITC hotels, it is the richest of chocolate vanilla biscuits. These biscuits are created using carefully chosen premium ingredients for a sensory experience unlike any other. Dark Fantasy is more than a biscuit; its a luxurious mix of aromatic cocoa and vanilla. http://www.itcportal.com/foods/images/dark-fantasy.jpg Sunfeast Glucose http://www.itcportal.com/foods/images/glucose.jpg For those light hunger pangs, wholesome nutritious choices as these golden brown biscuits are made from the best quality wheat. Sunfeast Glucose biscuits are ideal not just for kids but adults too. Sunfeast Dream Cream A truly scrumptious range of cream biscuits that have become an instant hit with children. ITCs chefs have put their legendary skills into these biscuits to deliver truly tasty cream biscuits. Special Flavor Crystals in Strawberry and Pineapple cream biscuits keep the creamy flavor linger on. http://www.itcportal.com/foods/images/box-shadow_03.jpg Strawberry Cream The first of its kind cream biscuit with special strawberry flavor crystals that will keep the creamy flavor linger on. http://www.itcportal.com/foods/images/strawberry-cream-biscuit.jpg http://www.itcportal.com/foods/images/box-shadow_07.jpg http://www.itcportal.com/foods/images/box-shadow_09.gif http://www.itcportal.com/foods/images/box-shadow_01.jpg http://www.itcportal.com/foods/images/box-shadow_03.jpg Bourbon A special delight for all those chocolate lovers. http://www.itcportal.com/foods/images/bourbon.jpg http://www.itcportal.com/foods/images/box-shadow_07.jpg http://www.itcportal.com/foods/images/box-shadow_09.gif http://www.itcportal.com/foods/images/box-shadow_01.jpg http://www.itcportal.com/foods/images/box-shadow_03.jpg Orange Cream Experience a tangy twist in biscuits with every Orange cream. http://www.itcportal.com/foods/images/orange-cream-biscuit.jpg http://www.itcportal.com/foods/images/box-shadow_07.jpg http://www.itcportal.com/foods/images/box-shadow_09.gif http://www.itcportal.com/foods/images/box-shadow_01.jpg http://www.itcportal.com/foods/images/box-shadow_03.jpg Butterscotch Cream Another first, the taste of ice-cream in cream biscuits. http://www.itcportal.com/foods/images/butterscotch.jpg http://www.itcportal.com/foods/images/box-shadow_07.jpg http://www.itcportal.com/foods/images/box-shadow_09.gif http://www.itcportal.com/foods/images/box-shadow_01.jpg http://www.itcportal.com/foods/images/box-shadow_03.jpg Mango Cream A special summer flavor cream biscuits for all those who love the king of fruits. http://www.itcportal.com/foods/images/mango-cream.jpg http://www.itcportal.com/foods/images/box-shadow_07.jpg http://www.itcportal.com/foods/images/box-shadow_09.gif http://www.itcportal.com/foods/images/box-shadow_01.jpg http://www.itcportal.com/foods/images/box-shadow_03.jpg Elaichi Cream Taste the queen of spices in cream biscuits. http://www.itcportal.com/foods/images/elaichi-cream.jpg http://www.itcportal.com/foods/images/box-shadow_07.jpg http://www.itcportal.com/foods/images/box-shadow_09.gif Sunfeast Snacky http://www.itcportal.com/foods/images/snacky.jpg Bigger than most others in the salted biscuit category, Snacky is light and crispy like no other. From kids to adults, its the quintessential Family Biscuit. Available in two variants, Classic salted and Chilli flakes the very first of its kind in India. Sunfeast sweet n salt These thin and crisp biscuits come with a distinctive sundry taste, that of salt and sweetness. A bite into one of these one keeps wondering about its taste! http://www.itcportal.com/foods/images/sweet-n-salt.jpg Sunfeast Nice http://www.itcportal.com/foods/images/nice.jpg These are crisp coconut biscuits showered with sugar crystals. The crisp sugary sweetness will just go on to make all those nice moments nicer. Sunfeast Benne Vita Flaxseed Biscuits If Benne Vita in Italian stands for Good Life, then Benne Vita Flaxseed biscuits just make the good life better. The Flaxseed content in these protein and mineral enriched biscuits are rich source of Omega III acids that helps control cholesterol. Flaxseed is the richest plant source of these essential Omega-3 Fatty Acids. It is also rich in dietary fibre, proteins, calcium and other minerals to maintain healthy heart and good gut health.http://www.itcportal.com/foods/images/benne-vita.jpg Sunfeast Special ITC Sunfeast presents a range of Special cookies and creams. http://www.itcportal.com/foods/images/sunfeast-special.jpg Special Cookies: Made with best quality wheat, cashew and butter, Sunfeast Special cookies are baked with real butter and the finest ingredients to give a mouth-watering treat that makes every moment special. Available in Cashew/ Butter/ Coconut. Special Creams: Delicious value for money cream biscuits with a thick layer of cream sandwiched between two biscuits. Available in Orange and Chocolate variants. Sunfeast Pasta The Sunfeast product portfolio was expanded in early 2005 to include healthy snacking options as well. http://www.itcportal.com/foods/images/sunfeast-pasta.jpg Sunfeast Pasta Treat, a whole wheat based instant pasta was introduced as a healthy snacking option for children and young adults. After the tremendous success of the 4 initial flavors, (Masala, Tomato Cheese, Cheese and Sour Cream), the instant Pasta range has been extended with three new exciting flavors Pizza style, Chicken and Tangy Tomato. PRICE Sunfeast Glucose Biscuits deliver the Natural Goodness of Wheat and is available in 100 gms, 75 gms and 19 gms priced at Rs. 4, Rs. 3 and Re 1 respectively, targeting children between the age group 4 14 years and their mothers. Sunfeast Orange Marie a very differentiated offering is available in 200 gms, priced at Rs. 13 and Sunfeast Marie Light Light Crispy, available in 200 gms and 400 gms, priced at Rs. 13 and Rs. 24 respectively that target housewives. Sunfeast Orange Cream, Sunfeast Butterscotch Cream Sunfeast Bourbon Cream Smooth Yummy Cream Biscuits, available in 100 gms, priced at Rs. 11, Rs. 11 and Rs. 12 respectively that target children between the age group 4 14 years. DISTRIBUTION It has fast and effective sales ordering processes. A great level of flexibility and a quick turnaround time to meet the customer requirements on time. It also practices minimum wastages. ITC follows a strict compliance standard for its distribution of Sunfeast products. It aims at low profit margins due to intense competition in the biscuit industry and even to meet the high customer service expectation. The company collects all the expired goods four times a year, and destroys them. Retailers must return expired or damaged products within six months after the date of expire. The company used its existing network of convenience stores the companys name for the hole-in-the-wall pan-beedi shops for Sunfeast. Not content with the existing resources, the company also looked at grocery stores and other retail formats. The company says the brand is now available in nearly 1.8 million outlets SALES PROMOTION AND ADVERTISEMENTS The entire range of Sunfeast Biscuits is packed in vibrant colours, distinctive graphics and fonts identifying sub categories and at the same time, maintaining a consistent look of Sunfeast. The brand is supported with Television campaigns across National and Vernacular media beginning August 2003 that is distinct, highlighting the product attributes, quality and the new first time in the market offerings from Sunfeast. During the launch phase, Consumer promotions were conducted across retail outlets for every purchase of Sunfeast Marie Sunfeast Cream Biscuits 75gms of Glucose Biscuits FREE. Encyclomedia Networks created an interesting idea, which shows the biscuit pack literally taking off from the hoarding what holds it down is a rope that attaches the end of the pack to the hoarding. The biscuit pack has been designed as a 3D pack. Well differentiated advertisements, some which showed a complete cream world with cream rivers, cream mountains and cream trees, were targeted at kids watching cartoon channels. The animated Sun this is a symbol of contentment, Satisfaction and Pleasure. This was also received by the consumers and the ad campaigns are catchy and full of colours and excitement. The product is also of very high quality. Thus Sunfeast has manged to get all the winning combinations in the right mix. At the same time, on general entertainment channels, mothers received information on the importance of glucose, the wholeness of wheat and so on. Also, the company tied up with Bey Blades, the popular television series that was a rage among children, to promote itself. Sunfeast tagline Spread the Smile was being endorsed By Sharukh khan. SRK use made sense as he was popular among Children and moreover he is among the favourites about 60% of Indians and moreover his persona is energetic which corresponds to the mascot of the brand. The various advertisements and promotional shows featured SRK and showed that even SRK is also a fan and enjoy Sunfeast Biscuits. So it created an impression among the audience that their favourite actor is following this commodity so they should follow the same way. ITC Foods has tied up with New York-based Company House of Spices to launch its biscuit brand Sunfeast across the US and that was again done by SRK since he is a global icon. In the same year, as the official sponsor ofthe WTA tennis championship titled the Sunfeast Open the company had teenage sensations Sania Mirza and Mahesh Bhupathi campaigning for it. But thats not all. For promotions in southern states, Sunfeast has signed Tamil super star Surya as a brand ambassador. Analysts say that ITCs deep pockets have helped Sunfeast in many ways. The company claims that it has been spending 35-40 per cent of its turnover from the biscuits segment on advertising and promotions. Going by that number, ITCs annual marketing spends are estimated to be in the region of about Rs 115-120 crore (Rs billion). CONSUMER ANALYSIS The analyses showed that majorly people consumed Biscuits and are not fond of having the Sunfeast Pastas. About 63% of people prefer having Sunfeast Marie and Sunfeast Dream Cream is being preferd by only 25% of the consumers. The products like Sunfeast Special, Sweet n Salt, and Golden Bakery are not that much appereciated as only 13% of people prefer them. In dream Cream Butterscotch, Orange and Burbon were equally appreciated. Classic Snacky was more liked as compared to Chilli flakes in Snacky brand. 90% people prefer having Marie lite over Orange Marie and the product is not just consumed by Old but almost people of every age group. In Golden Bakery choco nut was mostly liked while there was no intrest in the rest of the choices. Coconut and Butter were equally liked in Special cateogary. 63% prefer Sunfeast because of its Taste and Flavour while 25% likes them because of price, packaging, quality. People also appereciated it because of availability of large variety. It was also observed from the survey, that the products were regularly by the customers, most of them going for weekly and fortnightly purchase of the product. The major competitors for the product are Parle and Britannia which were even a threat when the product was launched. The brand loyalty seems to very weak as when consumers were asked that would they continue to consume Sunfeast even if other products were at a discount, the answer came as No. The people were specific in the categories but not with the brand Sunfeast. The television seems to be most effective form of advertisement as it spread awareness in almost every age group and was the major promotional tool. The brand was easily available to people and even remotest to smallest shops have Sunfeast for sale. The people seem to be assured of quality and said that they would recommend their friends and relatives the product. COMPETITION ANALYSIS Back in 2003, nobody thoughtSunfeast would have consumers eating out of its hands. Says Naware, Seven per cent in less than three years is something that we could have only dreamt about. Importantly, industry barometer AC Nielsen has indicated that both Parle and Britannia are losing market shares. According to the AC Nielsen retail sales audit in March 2006, both Britannia and Parle have lost volumes. Britannias shares have dropped from 35.8 per cent in 2004-05 to 30.5 per cent in May 2006 (volumes). Parles shares have also dropped from 42.2 to 38.4 per cent in the same period. Even Priya Gold has seen a minor dip from 6.4 per cent to 5 per cent. ITCs Sunfeast has been a big gainer with its share increasing from 2.7 to 6.7 per cent. In terms of value,Britannia leads the market with 37 per cent market share, followedby Parles 31.3 per cent and ITCs 6.3 per cent. Nevertheless, the gap is still wide. Sunfeast still has a long way to go. But what can the bigger players do? Alagh has an interesting observation. Says he, Biscuits have always been a low margin, high volume game. Both Britannia and Parle have very high volumes and can easily afford to lower their margins. A potential after-effect? Sunfeast too may have to drop its prices to be in the reckoning and this will squeeze its margin even lower. While the full game is yet to be played out, for the moment the sun seems to be shining on Sunfeast. Creaming the market. . . Innovation in the product line biscuits with butterscotch cream with actual granules in the cream, strawberry cream with flavor-enhancers and orange-flavored marie. Gained an edge from the well established distribution network of its tobacco business. Signed up big film stars like Shah Rukh Khan and southern star Surya as brand ambassadors for