CHAPTER 11 INTRODUCTION Parle Products has been India's largest manufacturer of biscuits and confectionery for almost 80 years. Makers of the world's largest selling biscuit, Parle-G, and a host of other very popular brands, the Parle name symbolizes quality, nutrition and great taste. With a reach spanning even to the remotest villages of India, the company has definitely come a very long way since its inception. Many of the Parle products - biscuits or confectioneries, are market leaders in their category and have won acclaim at the Monde Selection, since 1971. With a 40% share of the total biscuit market and a 15% share of the total confectionary market in India, Parle has grown to become a multi-million dollar company. While to the consumers it's a beacon of faith and trust, competitors look upon Parle as an example of marketing brilliance. Since 1929, Parle Products, with its wide platter of biscuits and sweets is also actively engaged in changing and uplifting the social face of India. As part of its Corporate Social Responsibility Policy, Parle is keenly involved in the overall development of the younger generation, with a focused endeavor to build the New Face of India and spread happiness and joy all over. Some of our best habits, as we said, are also our oldest. Many of them date back to the last decade of the 19th century. It was in the 1880’s that the late Mohanlal Dayal came to Bombay from his village Pardi, in the district of Surat, to work as a dusting boy at a silk merchant’s. What a long way that bright little boy came! First, the hard apprenticeship and the graduation to Master Cutter, then the elite tailoring establishment that eventually developed into a wholesale business to finally, the new business in confections and biscuits. Always, the accent was on self-sufficiency. Mohanlal Dayal was not just a progressive and astute businessman. He never gave in to the sense of indifference that often comes with the commercial outlook. All through his life, he was deeply conscious of his duties towards society and the community. He built the Shri Mohanlal Dayal Prasuti Graha and General Hospital in Pardi, which is maintained through charity trusts set up by him. The Shri Mohanlal Dayal Sanatorium and Hostel at Matunga in Bombay is 2 another such institution. In his memory and after his example, his sons have donated significant sums to set up the Chauhan Institute of Science at Vile Parle. Parle Centre of Excellence, as an institution, is dedicated to enriching the lives of people by conducting various cultural programs across all regions to facilitate the all round development of children. Every year, Parle organizes Saraswati Vandana in the state of West Bengal during the festival of Saraswati Puja, inviting schools from all across the state to participate. The event is one of much fanfare and celebration, keeping alive the culture and traditions. The involvement in cultural activities has seen the inception of Golu Galata in Tamil Nadu, held during Navratri. It provides all the members of a household a platform to showcase their creativity and be judged by eminent personalities. Thousands of families participate and celebrate the occasion on a grand scale. These events give us a chance to interact with children on a one-to-one basis, and promote our belief of fun and health for the whole family. OBJECTIVE To deliver right SKU & Gift item to right place in right time. To achieve internal customer satisfaction level to 95%. And to increase the consumer base for newly launched product. To penetrate market with greater share of business. To leverage Parle G brand by having association with some other known brand. To counterattack competitor’s strategy. The consumer promotional offers are based on the principle of elasticity of demand. SCOPE The ultimate scope of this project is based on Marketing Strategy of Parle-G product.In this project we think and design marketing strategy and analysis of parle-G product, also think about its policy and it is helpful for the fix the standard about purchasing of raw material. Tha main research of this project is pricing consistency 3 about parle-G product since 25 years so people may stick with the parle-G product because of not raise the price . LIMITATION The study conducted in 45 days its not enough to such wast topic. It is very difficult to storekeeper to pinpoint the sale of particular brand in both organized and unorganized retail store No paper data was available in store city. As nature research was exploratory so it was difficult to cover each and every topic . Many User and retailer don’t expect origin perception and view about the product. 4 CHAPTER 2 5 . The problem was taken in to consideration looking at the data available on the consumption pattern of glucose biscuit. The sampling technique used in this case was convenient sampling. The data showed 65% of glucose biscuit market share is owned by Parle-G. The chances of 6 . The consumption trends were also observed among the population surrounding us and online portals. The cause for this affection towards biscuit was not known hence the study stresses on the causes of why is this biscuit number one. The product under consideration has no segment and is targeted at population in general without differentiating its consumers. conformance. Sample Design: size The sample to be chosen was people who have consumed Parle-G biscuits and there was no other criterion. The question designing was mostly kept closed ended with question targeting at the performance. This has made the research base to be cause and effect oriented.RESEARCH OF METHODOLOGY Research Design Type and Nature of the Study: The hypothesis that we want to study wants to find why is Parle-G number one glucose biscuit. aesthetics and reliability of the product. The sample was up to date and the study was conducted recently and hence the data was relevant for the current timing. 7 . It had become an icon. There was no duplication of the sample as all the samples were from different areas which were in the proximity of the interviewer. The numbers of samples were minimum 30 due to limitation on time bases and cost of research. This leading to increase in manufacturing cost of the biscuits. Be it a big city or a remote village of India. Wheat. Parle . sharing and caring. It wasn't a biscuit any more. Milk Powder. It is synonymous to energy & nutrition. The incredible demand led Parle to introduce the brand in special branded packs and in larger festive tin packs. Also the data to be collected was of type which could be answered by anyone who eats biscuit. The sample contained male and females both. Sugar. Parle G very price sensitive product. The method of sampling was random and hence probabilistic. the Parle G symbolizes quality.errors were less. due to commonality of the product and positive response of each of the respondent. Parle G conjures up fond memories across the length and breadth of the country. Parle – G…… as a Brand The brand is associated with the positive values of life like honesty. The sample size also is not true representation of the population under consideration but an experimental sample of population. for the data. health and great taste. It has become a part of the daily lives of many Indians. across all ages. Milk.G and Challenges Increasing prices of basic Raw material like. newspapers etc. Parle Jee tried to extract market share. Even though the Parle is market leader in the segment. However only serious competition faced by Parle G is from Britania Tiger biscuit SOURCES OF DATA There are two types of data namely primary data and secondary data. magazines. others are also trying to capture the chunk of market share. Fake brands like Parel G. SECONDARY DATA This project based on secondary data. Small increase in price (by 50 paise) in past had seen high decline in sales. Information about project is collected by various website. PRIMARY DATA This is project is not based on primary data. 8 . CHAPTER 3 PROFILE OF COMPANY :- NAME OF COMPANY :.S.Parle Products Pvt.PARLE ADDRESS OF COMPANY :. Khandekar Marg 9 . Ltd.V. Chauhan family WHEN STARTED :. one and all.Vile Parle East.British India OWNER OF COMPANY :. TOPIC DETAIL EXPLAIN BISCUITS are the products of daily consumption. :. It was owned by the Chauhan family of Vile Parle. Mumbai. it is loved by all. Mumbai -400057.(022)6691 6911 – 15 FOUNDER OF COMPANY :.Maharashtra. WHERE STARTED :-Vile Parle. Parle began manufacturing biscuits in 1939. TELEPHONE NO.In year 1929. Consumed by. Mumbai. Parle Products Company was founded in 1929 in British India. 10 . And when it comes to Parle biscuits. owned by the different factions of the original Chauhan family: Parle Products. it is the largest selling brand of biscuits in the world according to Nielsen. But a dispute over the use of "Parle" brand arose.In 2009. Parle Agro launched its confectionery products under a new design which did not include the Parle brand name. For decades. Later. The Parle brand became well known in India following the success of products such as the Parle-G biscuits and the Thums Up soft drink. In February 2008. Poppins. Mango Bite. when Parle Agro diversified into the confectionary business.In 1947. the company launched an ad campaign. Parle Products sued Parle Agro for using the brand Parle for competing confectionary products. Primarily eaten as a tea-time snack. Sharad and Anup Chauhan (owner of the brands Parle-G. led by Vijay. which has no relationship with Parle Products. Parle-G or Parle Glucose is a brand of biscuits manufactured by Parle Products in India. showcasing its Gluco biscuits as an Indian alternative to the British biscuits. led by Prakash Chauhan and his daughters Schauna. Monaco and KrackJack) Parle Agro. the product was instantly recognised by its iconic white and yellow wax paper wrapper with the depiction of a young girl on the front. 11 . The original Parle Company was split into three separate companies. Alisha and Nadia (owner of the brands such as Frooti and Appy) Parle Bisleri. Melody. thus becoming a competitor to Parle Products. when India became independent. Parle-G is one of the oldest brand names in India. As of 2011. led by Ramesh Chauhan All three companies continue to use the family trademark name "Parle". The original Parle group was amicably segregated into three non-competing businesses. the Bombay High Court ruled that Parle Agro can sell its confectionery brands under the brand name "Parle" or "Parle Confi" on condition that it clearly specifies that its products belong to a separate company. 1. GROWTH 70%market share in glucose biscuit is captured by parle-g as compare to britannia tiger (17-18%) I T C Sunfeast 8-9%. It is also popular across the world and is starting to sell in Western Europe and USA. Loblaws. Available in rs. AVAILABILITY Outside India. It also has several manufacturing units on contract. rs. etc. Parle has manufacturing facilities at Neemrana (Rajasthan). Bangalore and Bahadurgarh (Haryana). In Canada.INFRASTRUCTURE Apart from the original factory in Mumbai.4 .2. Parle-G is available in Europe. and 40 cents at major retailers.25 12 . Canada. A more common 80 gram "snack pack" is sold for as low as 15 cents at Indian grocers. etc. Last year sell is 35 billion. for only 99 cents for a 418 gram pack. rs. Parle derived from the name of the indian railway station vileparle near mumbai. Recognised by iconic white and yellow wax paper or wrapper with depiction of young girl covering the front. Food Basics. USA. rs. UK. Singapore. it is sold by Zehrs. Primarily eaten as a tea time snacks. The factory in Mumbai was the first to be set up. the Parle brand has grown from strength to strength ever since its inception. followed soon by the one in Bangalore. Parle has initiated the process of getting ISO 9000 certification. The factories at Bahadurgarh. From husking the wheat and melting the sugar to delivering the final products to supermarkets and store shelves nationwide. using more modern techniques for capacity expansion. Dubai. Haryana and Neemrana. As part of the efforts towards a larger share of the global market. confectioneries & snacks are thoroughly checked by expert staff. South America and Sri Lanka. such as. Now. we have begun spreading their wings and are going global. Abu Dhabi. care is taken at every step to ensure the best product of long-lasting freshness. Parle bisuits and confectionaries are fast gaining acceptance in international markets. Many Parle Products have also won Gold. now relish Parle products. Even the more sophisticated markets like USA & Australia. Every batch of biscuits. Parle also has 10 manufacturing units for biscuits and 75 manufacturing units for confectioneries on contract.Concentrating on consumer tastes and preferences. silver and bronze medals at the Monde Selection MARKET 13 . Africa.QUALITY Hygiene is the precursor to every process at Parle. Rajasthan are the largest biscuit and confectionery plants in the country. Karnataka. using the most modern equipment. IMPORT – EXPORT The immense popularity of Parle products in India was always a challenge to their production capacity. This ensures consistent and perfect quality across the nation and abroad. G is the winner of 8 Gold and 11 Silver awards at the Monde Selection Awards? The global standard for quality in Food category. Parle-G is the largest selling biscuit in the world.It has 70% market share in India in the glucose biscuit category followed by Britannia.000 crore (Rs 20 billion).According to a Nielsen report released in 2011. AWARDS Parle . and contributes more than 50 per cent of the company's turnover (Parle Products is an unlisted company and its executives are not comfortable disclosing exact numbers). The brand is estimated to be worth over Rs 2. Last fiscal. It also is popular across the world and is starting to sell in Western Europe and USA. Providing kids with the vital vitamins and minerals necessary for all round mental and physical development 14 . Parle had sales of Rs 3. Tiger (17-18%) and ITC's Sunfeast (8-9%).500 crore (Rs 35 billion). CHAPTER 4 MARKETING STRATEGY An organization's strategy that combines its marketing goals into one comprehensive plan. A good marketing strategy should be drawn from market research and focus on the right product mix in order to achieve the maximum profit 15 . built over the years. evaluation and selection of marketoriented strategies and therefore contribute to the goals of the company and its marketing objectives. Last fiscal. even in the e most remote places and in the smallest retail outlets. Parle has nearly 1. It is a process that can allow an organization to concentrate its resources on the optimal opportunities with the goals of increasing sales and achieving a sustainable competitive advantage. Marketing strategy includes all basic and longterm activities in the field of marketing that deal with the analysis of the strategic initial situation of a company and the formulation. Tiger (17-18%) and ITC's Sunfeast (8-9%).500 crore (Rs 35 billion). competitors. MARKET SHARE It has 70% market share in India in the glucose biscuit category followed by Britannia. and. 16 . ‘Kissan Annapurna’ at Rs 102.500 wholesalers. ‘Pillsbury’ atta are priced at Rs 104. Parle Products has recently adopted a major pricing strategy whereby a 5 kg ‘Parle-G’ Atta will be available to consumers and. The marketing strategy is the foundation of a marketing plan. The brand is estimated to be worth over Rs 2. and contributes more than 50 per cent of the company's turnover (Parle Products is an unlisted company and its executives are not comfortable disclosing exact numbers). However. Parle had sales of Rs 3. is a major strength for Parle products. in similar capacity. Parle biscuits & sweets are available to consumers. It also is popular across the world and is starting to sell in Western Europe MARKET STRENGTH The extensive distribution network. along with ‘Parle-G’ biscuit pack for free at Rs 90. LATEST STRATEGY As part of its marketing initiative.potential and sustain the business.000 crore (Rs 20 billion). After all. This is based on their understanding of the Indian consumer psyche.the core benefit of biscuit is to satisfy hunger of the consumer. The Value for money positioning helps generate large sales volumes for the products. Their efforts are driven towards maximizing customer satisfaction and this is in synergy with their quality pledge. And in this way. Maximizing value to consumers and forging enduring customer relationships are the core endeavours at Parle. However. A two hundred strong dedicated field force services there wholesalers and retailers. Most Parle offerings are in the low and mid-range price segments. there are 31 depots and C&F agents supplying goods to the wide distribution network.careering to 4. " Parle Products Limited will strive to provide consistently nutritious & quality food products to meet consumers' satisfaction by using quality materials and by adopting appropriate processes. Parle Biscuits and confectioneries. the basic product is biscuits.000 retail outlets directly or indirectly. the people of India have been growing up on Parle biscuits & sweets.25. urban consumers. 17 . Parle Products also manufactures a variety of premium products for the up-market. continue to spread happiness & joy among people of all ages. Additionally." PODUCT STRATEGY Core benefit:. Basic product. To facilitate the above we will strive to continuously train our employees and to provide them an open and participative environment.in the second level. Parle constantly endeavor at designing products that provide nutrition and fun t o the common man. since 1929. the Parle brands have found their way into the hearts and homes of people all over India & abroad. caters a range of products to a variety of consumers The Customer Confidence The Parle name conjures up fond memories across the length and breadth of the country. The consumer is the focus of all activities at Parle. Today. o Potential product.in the future Parle could come up with different prod ucts. Rs 4 to Rs 25 packet Profit margin for distributors is 4% and for retailers is 10-12% Parle-G maintained its price of Rs.Know the key issues related to initiating and responding to price changes. which means it uses the value pricing method. Understand how companies find a set of prices that maximizes the profits from the total product mix. The value-for-money positioning allows people from all classes and age groups to enjoy Parle products to the fullest.Parle biscuits increase a person’s energy levels.4. Even today. Augmented product.00 for the last 25 yrs & has seen the variation in its sales due to increase in price by mere 50p. The value-for-money positioning helps generate large sales volumes for the products.G & PRICE MIX Parle G has adopted the Market Penetration strategy i. low price along with capturing of a large market Also they focus on providing good quality products at the same time. Core value An in-depth understanding of the Indian consumer psyche has helped Parle develop a marketing philosophy that reflects the needs of the Indian masses. the great tradition of taste and nutrition is consistent in every pack on the store shelves.Expected product. PARLE. Parle products equally appeal to fun loving kids & youth. Parle G is available in Re 1. PRICING STRATEGY OBJECTIVE Learn the major strategies for pricing imitative and new products. PARLE – G & PLACE MIX 18 .the consumers expect the product to have a good taste and also give nutrition. Learn how companies adjust their prices to take into account different types of customers and situations. With products created bearing in mind both health and taste.Rs 2.e. Low and mid range price Segments: The pricing of the product is of low and mid range so as it suits every ones pocket VALUE OF MONEY Value for money allows all age group to enjoy parle products at fullest Strict cost control at every point in supply Chain: It reaches 2.5 million outlets.It was advertised mainly through press ads. This product is suitable to all Income group. Parle has nearly 1.000 retail outlets directly or indirectly.The extensive distribution network. The communication spoke about the basic benefits of energy and nutrition In 1989 Parle-G released its “Dadaji” commercial which was a huge success and was aired over a period of 6 years.500 wholesalers. even in the most remote places and in the smallest of villages with a population of just 1500. including villages with a population of 500 people PARLE G & PROMOTION MIX Advertising . catering to 4. Additionally.25. The communication 19 . Parle G biscuits are available to consumers. there are 31 depots and C&F agents supplying goods to the wide distribution network. A two hundred strong dedicated field force services its huge wholesalers & retailers network. Factories at strategic locations & Establishment of manufacturing units in rural areas PRICING STRATEGY OF PARLE G Appeal to all income groups : The product is appealing to the consumers as the target audience is basically kids. is a major strength for Parle Products. built over the years. it had also launched TV serial called Parle Sakthi. 20 .spoke about the basic benefits of energy and nutrition The next level of communication associated the brand with the positive values of life like honesty. sharing and caring.” which was a network of ambulance van visiting rural areas giving basic medical treatments. mainly oriented towards the women consumers SALES PROMOTION Every year it holds day fairs at branded venues where games and fun events are organized for the employees of Parle and their families where Parle products are giveaway prizes. In past. Using this it penetrated into those areas where direct penetration using just advertisements was not possible Parle-G Mera Sapna Sach Hoga In 2002.Parle-Gramin Swastha Yojana Parle had launched a new scheme called a “Parle-Gramin Swastha Yojana. educating people on nutrition deficiency problems. The national level promos run for a period of 6 months which promised free scholarship and free trips to Disneyland at Paris and Singapore. This was an initiative taken after its successful branding with Shaktimaan. and promoting Parle nutritious products. Parle decided to launch “Parle-G Mera Sapna Sach Hoga” contest to stay as a popular brand among children. Just a few months back a reminder TV commercial was launched for Parle-G where the product is being called ‘hindustan ki takat’ Recently Parle G has started the use of celebrity in their advertisements EVENT & COMPAIGN Promotional campaigns . marketing head at Parle Products Pvt.” says Praveen Kulkarni. “We found out that Tiger was getting 21 . (Golu means Doll & Galata means Dhammal) BRAND STORY OF PARLE G In the hit Bollywood movie Welcome. notes that even biscuits command respect and have to be addressed with a ji (a term of respect in Hindi). Grey Global Group. Ltd. while made in jest.PUBLIC RELATION Parle has done the following for enhancing public relations: In the year 1997. South and South-East Asia. The fact that it is a staple for everyone in the house keeps it going.” says Nirvik Singh. chairman and president. in a passing reference to Parle-G. actor Nana Patekar. His remark. In the year 2002. “It is a heritage brand. a national level promo . Parle-G sponsored the tele-serial of the Indian superhero. Since it started in 2002 it has seen a tremendous increase in participating each year. Shaktimaan that went on to become a huge success. is an inter-school contest based on the Saraswati Puja celebrations. There was a time when Parle-G‟s dominance was threatened by rival brands. “The brand is clearly an Indian brand and it straddles all economic strata. The promo was all about fulfilling the dreams of children. Parle had introduced the novel promotion called Parle Golu Galata contest in 2005. is not far off the mark. We sell over 25 crore packets every month. one of its initiatives. especially the Tiger brand from Britannia. Parle Saraswati Vandana.`Parle-G Mera Sapna Sach Hoga' was run for a period of 6 months. the agency that handles the Parle-G account. That should reflect the stature of the brand. Parle‟s mantra has always been about repositioning the brand without tweaking the look and feel of the product. with entries coming from schools of West Bengal. “We don‟t need celebrities as the brand equity is so strong. “The biggest concern is that the brand shouldn‟t become outdated as it is a historic brand. which was an instant hit. • Reduced wastage.” says Kulkarni. • Decrease in weight per biscuit. • Bulk purchase of raw material. So.the price was last raised in 1994 by 25 paise. and we decided to change our positioning. The brand also had some innovative commercials involving young children with a new punchline. By mere 50 paise in 1995 It's a brand that has held its price line at Rs 4 for 25 years now -.5g from Jan•2008. it literally rescued Parle-G. Parle-G has managed to retain its leadership position with just a simple white-and-yellow striped wrapper with a picture of a baby on it. Later. • 100g pack costing Rs 4 has net weight of 93. • Avoid sophisticated packing. • Availability in remote places. • Parle-G has seen the variation in sales due to increase in price. G means Genius.” says Singh. The brand has managed to retain its leadership position because it has evolved its campaign with every consumption trend. “ Reason Of Parle-G Maintaining It’s Price Of Rs. While rivals have signed on celebrities. 22 .4.00 For The Last 25 Years ? • Low profit margin. it's not for nothing that Parle-G is the world's largestselling biscuit by volumes.1% of the 115 TONES • Increased productivity.” says Kulkarni.stronger in the kids segment. when the company sponsored the television show Shaktimaan on Doordarshan. Parle-G is available for Rs 50 a kg.first from 100 gm to 92.in line with other biscuit-makers and FMCG players. not doing it for charity. general manager (marketing).enough reasons why Parle-G enjoys close to 70 per cent market share in the glucose biscuit category and probably has the deepest reach. It's very interesting and similar to the dollar stores in the US. But price is not its only USP. 23 . of course. price becomes more important than the weight of the biscuit. Strict cost control at every point in its supply chain also helped -. Its earlier punchline was ParleG: swadh bhare. What makes the Parle G brand tick is also that it has been positioned on the health platform (a single pack of biscuit offers 450 calories). feels it's a very smart strategy. the brand uses two punchlines. Soaring input prices meant it opted for reducing the weight of the biscuit than increasing the price -. Regular customers would have noticed the number of biscuits in a pack come down from 16 to 15 even as each biscuit became lighter.Parle entered into forward contracts with suppliers. Parle Products." says Pravin Kulkarni. and then to 88 gm in January this year -. nutrition and value-for-money -.Not that the company didn't try to raise prices to offset the overall hike in costs." he says. The brand. Parle-G: G for Genius and Hindustan ki Taakat (the country's strength). Parle is.5 gm in January 2008. The gamble paid off: Parle was able to sustain its volumes. says Kulkarni. Currently. Nirmalaya Kumar. increased the number of manufacturing locations to 60 and consolidated buying. Three years ago it did so. "At this price point. shakti bhare (full of taste and energy). but they seemed to understand the cost pressures on the firm. professor of marketing at London Business School. "We want to cater to the masses and have consciously tried not to increase the price. meets different needs of customers: calories (energy). outsourced production. but quickly rolled it back after volumes fell sharply and consumers wrote to lodge their protest. There are very few food items that are available for Rs 50-60 a kg. Raw material costs account for 60 per cent of the total costs in this segment and packaging costs (plastic films) account for 20-25 per cent of this. of course. been trying to wean away customers from Parle. Cremica (north) and Anmol (east).000 crore (Rs 20 billion).Target Base Parle-G is consumed by people of all ages. including Priya Gold (west). The brand is estimated to be worth over Rs 2. while ITC's Sunfeast glucose has captured 8-9 per cent. 24 .500 crore (Rs 35 billion). What would be interesting to see is whether it will be able to retain its leadership in the coming years as income grows in the hinterlands and consumers upgrade and develop new tastes. Competition has. living in cities & in villages. There are strong regional brands. whose customers straddle across income segments. Parle had sales of Rs 3. For others it is a complete wholesome meal. including villages with a population of 500 people. and contributes more than 50 per cent of the company's turnover (Parle Products is an unlisted company and its executives are not comfortable disclosing exact numbers). Even Levers had forayed into this segment in 2003 and launched a glucose biscuit branded as Modern. But they still have their work cut out.It reaches 2. after it acquired the bakery business of Modern.5 million outlets. Nirmalaya Kumar feels the Parle-G story is so fascinating that it deserves to be a case study. It's also one of the few FMCG brands in the country. on a par with Unilever's Lifebuoy. For some it's the best accompaniment for tea. Britannia relaunched its Glucose-D biscuit as Tiger in 1995 and boasts of 17-18 per cent share. While for some it's a way of getting charged whenever they are low on energy. ITC's cigarettes or mobile pre-paid cards. While some have it for breakfast. from the rich to the poor. Parle G . Last fiscal. according to industry sources. For some it's the best accompaniment for chai While for some it's a way of getting charged whenever they are low on energy. for others it is a complete wholesome meal.Primary Education scheme .Parle company practices mass marketing for Parle. and complete nutrition package. 25 . Associate with various Government initiative like . Suggestions Target young generation.G Parle-G is consumed by people of all ages. Concentrate on rural market. Hide n Seek. This will help in Brand Registration and Associate Parle G as health food.National Rural health mission centres. Need to increase awareness about the PARLE G as BRAND. It is a product liked by everyone and does not cater only to a specific group or part of the whole market. Mid-day meals being serve in primary school. Bourbourn. mass distribution and mass promotion of Parle. Consumer Psyche & Parle .e. While some have it for breakfast. living in cities & in villages.G which appeals to masses. i. Thus it is mass production. Milano. school going children.G for all buyers. from the rich to the poor. Should keep the price of Parle G same and increase price of other high and variant products like. Parle G market reach very high but due to distribution network Consumer psyche: Recognize Not as Parle G but …as biscuit ka puda. High end products can absorb the increased production cost.This will help to cater to existing market without price change. 26 . However.CHAPTER 5 SWOT ANALYSIS STRENGTHS (1) Low price as compared to competitors: They constantly endeavor at designing products that provide nutrition and fun to the common man. Most Parle offerings are in the low and mid-range price segments. Parle 27 . The value-for-money positioning helps generate large sales volumes for the products. This is based on their understanding of the Indian consumer psyche. (4) An experienced team of sales and marketing executives: Sales and Marketing executives are selected through a special process. A proper verification of identity and financial background are done for a better structure of the human resource in the company. Parle Products also manufactures a variety of premium products for the upmarket. The value-for-money positioning helps generate large sales volumes for the products. The Parle marketing philosophy emphasizes catering to the masses. We constantly endeavor at designing products that provide nutrition and fun to the common man. urban consumers. (2) Sizeable market share in the country: Many of the Parle products . Most Parle offerings are in the low and mid-range price segments.Products also manufactures a variety of premium products for the up-market. Affordability: Parle G offers 1Rs. pack which contains 4 biscuits which is affordable to anyone aims to satisfy hunger. And in this way. 28 .biscuits or confectioneries. And in this way. are market leaders in their category and have won acclaim at the Monde Selection. This is based on our cultivated understanding of the Indian consumer psyche. With a 40% share of the total biscuit market and a 15% share of the total confectionary market in India. since 1971. urban consumers. competitors look upon Parle as an example of marketing brilliance. caters a range of products to a variety of consumers. (3) Offers variety of products in different sizes under its brand: Parle offers a variety of biscuits at different pricing range. caters a range of products to a variety of consumers. Parle has grown to become a multi-million dollar company. However. While to consumers it's a beacon of faith and trust. on contract. also attractive for the customer. in Haryana manufactures biscuits. in Rajasthan and at Bangalore in Karnataka. A two hundred strong dedicated field force services these wholesalers and retailers. built over the years. Parle biscuits and sweets are available to consumers. Parle has manufacturing facilities at Neemrana.500 wholesalers. Apart from this. (6) Wide coverage area of manufacturing units: Parle Products has one factory at Mumbai that manufactures biscuits and confectioneries while another factory at Bahadurgarh.Parle has nearly 1. Additionally. Company should adopt innovative packaging techniques. Parle Products also has 14 manufacturing units for biscuits and 5 manufacturing units for confectioneries.(5) Largest distribution system: The extensive distribution network. Company should start a program for the loyal retailers and wholesalers to reduce their complaints by providing timely supply and replacement. catering to 4. The factories at Bahadurgarh and Neemrana are the largest such manufacturing facilities in India. All these factories are located at strategic locations. is a major strength for Parle Products.000 retail outlets directly or indirectly. even in the most remote places and in the smallest of villages with a population of just 500. so as to ensure a constant output and easy distribution. there are 31 depots and C and F agents supplying goods to the wide distribution network. (2) No proper replacement system for broken biscuits to retailers: There is no proper replacement system for broken biscuits to retailers. WEAKNESS (1) Breakage of biscuits while delivering to retailers: Sometimes biscuits get damaged while delivering to retailers. So that the quality of biscuits are good till it reaches the customer. 25. 29 . This will help in increasing their sales. Each salesman should stress the retailers to keep the maximum SKUs and to maintain these SKUs throughout. The company should take proper measures that the schemes and offers are not gulped by the middlemen. Hence Parle Company should opt for innovative techniques to maintain the brand of Parle-G (5) Poor packaging in family pack of glucose biscuits: Company should adopt innovative packaging techniques.(3) Improper and irregular supply: There is improper supply of products to retailers and distributors. so that retailer can be saved from the loss of the expired and damaged goods. and that it benefits the retailers and customers. as they have their own packaging unit as consumers are highly attracted towards new packaging. The packaging of Parle Glucose biscuits (1/2 and 1 kilogram packs) must be improved for its better sales. The biggest concern for Parle -G is that the brand shouldn‟t become outdated as it is a historic brand. The company should come up with double packaging as people refuse to buy family pack biscuits with loose packaging. 30 . (4) Dependent on its flagship brand. the replacement of the damaged and expired biscuits should be prompt and without any hassles. Parle-G: The major income source for Parle Company is the Parle-G biscuits. The brand has managed to retain its leadership position because it has evolved its campaign with every consumption trend. (6) Lack of schemes for retailers and distributors: One of the advantages of Parle Company is the wide range of retailers and Distributors. So there is better relationship between the company and retailers. Hence it is advised to increase the number of stock keeping units {SKU} available in the retailer‟s store. Parle Company should implement more innovative schemes for retailers and distributors. distributors. With this. (3) Improving supply system for established brands: As discussed in the earlier point the company can attract more retailers and wholesalers. (4) New innovative promotion techniques: Promote Parle brand through schemes such as “Parle Gramin Swastha Yojana” (a network of ambulance van visiting rural areas giving basic medical treatments educating people on nutrition deficiency problems and promoting Parle nutritious products) 31 . Due to proper packaging the quality of the biscuits will be retained and the retails will not suffer loss if goods are spoiled before it reaches their place. (2) Retaining loyal retailers or wholesalers: Parle can motivate retailers and wholesalers good incentives and programs. Since it can attract more customers specially kids through innovative packaging techniques. This in turn will earn good profit to the company. Since one of the most important strength of the company is wide spread distribution network. Due to this the company can expand the supply system and attract more customers. The wholesalers and retailers are one of the main reasons for the same.OPPORTUNITIES (1) Rising demand for innovative packaging in packaged foods: Parle should adopt new innovative packaging techniques. Hence it is advised that new innovative programs and more incentives should be given to them. The Parle Company can maintain the loyal retailers and wholesalers. the following are some of the suggestions that may help Parle Products Pvt. shows such as “Parle Sakthi” (“Parle . Ltd. show will cater to health issues of women and children and will explain long term benefits of healthy diet) Results Expected – Improved sales through “Top of mind recall”. V. they are giving scholarships to children in these states to cover up the corporate equity which is less than Britannia in these states Based on the above mentioned facts. Parle is weak in Eastern India and Tamil Nadu. to maintain its position as a leading company in the food and beverage market in India 32 . To cover up this loop hole.Friend of Women”). The weekly T. V.Promote Parle brand through T. namely. (6) Innovation and Rural Market: Innovating new products. They can also be a part of NRHM centers.(5) Penetrate the Market Share of the Unorganized Sector The Indian biscuit industry is divided into the organized sector that has 60% market share and the unorganized sector that has the rest 40% market share. (7) Going Public: Parle is one of the oldest companies in the biscuit market and except for its glucose biscuit business. the future may be much more competitive in this industry. By this. it may need funds. and its test marketing in the rural market with its existing distribution channel would help them establish a new market in rural India. which it can easily generate through an IPO because of its brand name. though Parle has a commanding position in the biscuit industry. This would be similar to replication of their strategy of innovation following which they launched their product . Hence. Britannia and ITC are publicly listed companies that have aggressively pursued advertising and R & D. Parle can take a pie of the market share of the unorganized sector by tapping rural markets through several government schemes such as mid day meals. It is important to note that both of its major competitors. especially non-glucose type biscuits. Parle being 33 . In order to follow an aggressive expansion plan and to foster world class R & D. This is because of entry of several new companies into this market. (8) Diversify in New Market: Today. they would be able to improve their visibility in the rural biscuit market in India. This can also help them diversify into different related markets. no other product has had a significant impact in the market. The entry of new product suppliers in the market is also one of the Porter‟s five forces which can alter the market scenario.Hide and Seek that is a premium segment product mainly focused in the urban or semi-urban market. Easy to push impulse purchase products iv. For this the company could provide a deliveryman with cycle to reach the different houses.an established brand should diversify into different market such as dairy products like cheese. 34 . The image that it has among the Indian masses is that of a “chai-biskut” providing company in the rural India. it is essential for the company to place additional salesmen on the field since the brand as such commands a high demand in the market but fails to match it with the supply. The company should start a home delivery where a particular household will order full range of products required by it over a period of time. Full range display ii. The advantages of this channel will be: i. Specifically. etc. Brand building will be facilitated Pushcarts should be increased in number in order to increase the market reach this can provide with e very effective channel Trade promotion should be formulated for newly launched products instead of just tagging them onto best sellers. butter. Easier to promote new products iii. In order to motivate the channel members it is also very essential for the company to increase the margins for the hard selling items In order to remain sensitive to market demand. in this context. in the urban sector Parle can create a new image of itself in the confectionary market by catering to high end Parle should go in for exclusive outlets in at least all the shopping malls and in medical shops coming up these days and any location where footfalls are large in number. Britannia Tiger has brand ambassador Rahul Dravid and Virender Sehwag who are doing heavy duty endorsement on their personal equity line for the brand. Due to this the Parle biscuits are facing competition. This can affect the performance of the company. (2) Ever increasing competition from multinationals and local companies: ITC is promoting their Sun Feast brand by using strong promotional campaign with Brand ambassador Shah Rukh khan.THREATS (1) Highly advertised brands such as Britannia: Parle faces the adverse competition from Britannia. 35 . (4) Emerging substitutes like wafers. (3) Increase in sale of cheap local bakery products: There is sudden increase in bakery products for past certain period of time in the market. Now there are many other products like wafers and toast. Now-a-days Britannia have adopted intensive advertisement such as through media to promote their products. ITC Foods Ltd has expanded network and is promoting its Sun feast biscuits across 1000 schools in the country. snacks and toast: Earlier it was just the biscuit which was available as snacks item. This can result in less attraction for the brand products of Parle. Thus company is facing threat due to the new substitute products. CHAPTER 6 36 . The Parle Biscuit brands. health and great taste. Marketing strategy is all about marketing a product . such as. promotion. price and place. retailers.CONCLUSION I want to conclude my project by saying that marketing strategy is 4ps such as product. Parle Products Pvt Ltd. Parle Company should take into consideration the opportunities and threats as discussed above. Which has resulted into Parle-G being the “world‟s largest selling biscuit". Parle company had made huge profit by marketing there products in India and in foreign countries. is now lagging in services to retailers because of improper supply and distribution in some areas and competitors taking advantage of these points. Constantly innovating and catering to new tastes PARLE-G has built its reputation. The Parle name symbolizes quality. These are all important aspects of marketing strategy. Without these aspects marketing is not possible. and wholesalers play an important role. Krackjack. There is lot of scope in marketing strategy. It was concluded that Parle is the first preference of both the customers and retailers (Organized and unorganized both) because of its price and brand image. Marie Choice. Monaco.In these marketing mix sellers. Parle-G. buyers. This will help the company to maintain its brand image for long time. Hide and Seek enjoy a strong imagery and appeal amongst consumers across the world. Parle – The world of Happiness 37 . Parle-G held his price Rs..25paisa or 0. Profit margin of company is very low because they don’t want higher range of profit.4 since 25 years .they only rise price by 0. 38 . Parle-G product is not only available in urban area but also in ruler area with same quality as well as same quality.we come to know that …. Parle –G product is available in reasonable rate so consumer can buy that product easily.50 paisa so its nothing like overall hike in price.FINDING After studying the marketing strategy of parle-g biscuits .they only want consumer satisfaction and stick with them. are slightly thicker and less dense. school going children. Associate Parle G as health food.. Associate with various Government initiative like. Target young generation. taste quite different (and slightly burnt. Mid-day meals being serve in primary school. However. The packet cover has changed ever so slightly. National Rural health mission centres. they recently changed something in their recipe the new biscuits look different. i. so.SUGGESTION I used to be an ardent fan of Parle-G..e. This will help in Brand Registration. and complete nutrition package… 39 . Primary Education scheme. There was a whole shelf in our kitchen dedicated to PG packets. I must say) as compared to the old ones. CHAPTER 7 BIBLIOGRAPHY 40 . britannia.com 41 . Marketing Management .parleproduct.wikipedia.sunfeastharabanao.com www.Philips Kotler Times of Business Economy Times India Today Front Line WEBILIOGRAPHY www.com www.com www.
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