PARLE

This report focusses on understanding the Sales and Distribution in various categories
of Parle and examine the critical decision areas in channel building and management
SALES AND DISTRIBUTION
and also exposure to Sales Team Development and performance monitoring.
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ACKNOWLEDGEMENT

I would like to express the gratitude and appreciation to all those who gave me the possibility
to complete this report.

I would like to thank our professor-in-charge Dr. Asif Zameer for the patient guidance,
encouragement, and advice she has provided throughout our time as her student. I have been
extremely lucky to have a supervisor who cared so much about the work, and who responded
to our questions and queries so promptly.

I would like to acknowledge the valuable feedback from the person concerned at the
departmental store for his inputs on Parle: Parle Agro. He was very helpful in furnishing the
intricate details of how the distribution logistics of Parle actually work.

I would also like to thank my friend Mr. Rajan Gulati for his insights into the internal
functioning of Parle Agro.

It is a privilege to express my sincere regards to the Director, Dr. Prof J.Das, for their valuable
inputs, able guidance, encouragement, whole-hearted cooperation and constructive criticism
throughout the duration of this project.
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TABLE OF CONTENTS

About Parle 3
Parle Products 4
Parle Biscuits 4
Macro-Economic Factors 6
Quality of Parle 8
Sales Organization 9
Sales Force Evaluation 11
Distribution Network of Parle-G 12
Distribution Network Logistics 13

Channel Members of Parle-G 14

Evaluation of Channel Members 15
Conflicts among Channel Members 16

The Distribution channel and Parle 16

Suggestions for Parle Distribution 17
References 18
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SALES AND
4

DISTRIBUTION
PARLE
Makers of worlds largest selling biscuit
5
ABOUT PARLE

InParle
1929,Products
a smallhas been Indias
company by thelargest
name ofmanufacturer of biscuits
Parle products emergedandinconfectionery for almost
British dominated India.80 years.
The intent was to spread cheer and joy to children and adults all over the country with its
sweets and candies. The company knew that it wouldnt be an easy task, but they decided to
take the brave step. A small factory was set up in the suburbs of Mumbai, to manufacture
sweets and candies. A decade later it was upgraded to manufacture biscuits as well. Since
then, the Parle name has grown in all directions, won international fame and has been
sweetening people's lives all over India and abroad.

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 Parle-G being the dominant
player with over 12% market share in the 25,000 crore domestic 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 consumers, it's a beacon of faith and trust, competitors look upon
Parle as an example of marketing brilliance.

PARLE PRODUCTS

BISCUITS
PARLE-G HIDE & SEEK
KRACKJACK MONACO
MILANO MILK SHAKTI
MAGIX CRME TOP SPIN
20-20 DIGESTIVE MARIE
CONFECTIONARY
MANGO BITE MELODY
MAZELO KISMI
ORANGLE BITE LONDONDERRY
POPPINS
6
SNACKS
SALTED PEANUTS KHATTA MEETHA
BHUJIA SEV FULLTOSS
PARLE'S WAFERS MEXITOS

PARLE BISCUITS

Parle biscuits are linked to factors of power and wisdom providing nutrition and strength. They
are indeed much more than a tea-time snack, as many consider them to be an important part
of their daily food. Parle provides everyone with a basket of biscuits which is not only satisfying
but are also of good and reliable quality. They cater to all tastes from kids to senior citizens.
They have found their way into the Indian hearts and homes.

Parle G is a source of strength for both body and mind due to the sumptuous amount of milk
and wheat. It is the Largest selling Biscuit Brand in the world.
 7

Biscuits are estimated to enjoy around 37% share by volume and 75% by value of the bakery
industry. The organized sector caters to the medium and premium segments, which are
relatively less price-sensitive. The organized sector is unable to compete at the lower price
range due to the excise advantage enjoyed by the informal sector.

The biscuit industry in India comprises of organized and unorganized sectors. The FBMI
represents the organized biscuit industry consisting of small scale, medium and large biscuit
manufacturers located in all zones and all states of the country.

The biscuit industry has been experiencing steady growth of 14-15% annually. In 2008, the
growth exceeded 16% mark on account of exemption from Central Excise Duty on biscuits.
The Industry estimates project a 17+% growth of the industry. The sentiments are sedate in
lieu of the economic downturn that has hit the entire country.
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MACRO-ECONOMIC FACTORS

Tax based Production and

incentives by Distribution
the licences
Government difficult to
attain
9 Increase in Rise in Sugar
per capita Prices
income of
Indians

Increase in Slight Slump

purchasing in GDP
power

Innovations Better
and R&D in products
the sector means more
competition
 1 India is 'Health'

0
Currently the conscious
largest consumers:
producer of may move to
Biscuits in the healthier
world options

QUALITY OF PARLE

Hygiene is the core aspect to every process at Parle. From husking the wheat and melting the
sugar to delivering the final products to the supermarkets and store shelves nationwide, care is
taken at every step to ensure the best product of long-lasting freshness. Every batch of
biscuits and confectioneries are thoroughly checked by expert staff, using the most modern
equipment hence ensuring the same perfect quality across the nation and abroad.

The factories at Bahadurgarh in Haryana and Neemrana in Rajasthan are the largest biscuit
and confectionery plants in the country. The factory in Mumbai was the first to be set up,
followed soon by the one in Bangalore, Karnataka. Parle Products also has 14 manufacturing
units for biscuits and 5 manufacturing units for confectioneries, on contract.

All these factories are located at strategic locations, to ensure a constant output & easy
distribution. Each factory has state-of-the-art machinery with automatic printing & packaging
facilities
SALES ORGANIZATION
1
1
There are five mother units and thirty-one contract manufacturing units in India.

The main difference between mother units and contact units is that mother units produce more
than one product that is PARLE G, MONACO, KRACK JACK, SIXER, and HIDE AND SEEK
etc. while contact unit manufacture only Parle-G.

Mother units are as follows:

Mumbai (Maharashtra)
Bahadurgarh (Haryana)
Neemrana (Rajasthan)
Bangalore and Kolkata

IMPORTANT PEOPLE OF THE COMPANY:

CHAIRPERSON: MR. VIJAY CHAUVAN

DIRECTOR: MR. ANUP CHAUVAN
EXECUTIVE DIRECTOR: MR. AJAY CHAUVAN
COMMERCIAL MANAGER: MR. AMOL
FACTORY MANAGER: MR. NIVATIA
PRODUCTION MANAGER: MR. RAJESH RAUL
STORE MANAGER: MR. DIXIT
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Chairperson
2

Executive Director

Production Production
Manager(Biscuits) Manager(Sweets)

Chief Engineer Engineer Officer

HRD Biscuits Sweets Printing

Manager Supervisor

Administrator Charge Head

Employee Employee
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The key responsibilities of a Sales Manager at Parle are as follows:
3
Estimating, Forecasting and tracking of sales & revenue numbers
Develop and manage relationships with Emerging Affluent clients provide investment
products and services in line with their financial needs & objectives
Meet the Revenue targets for self and assigned team
Proposing Asset allocation/Portfolio maintenance/Review of portfolio
Manage a team of Premier Wealth Managers who interact with clients
Manage the distribution of leads/resources to the team to ensure optimum manpower
utilization & plan sales activity
Have sales hurdle with the team & make sure a continuous interaction is carried among
the team members & solve all related problems of the Premier Wealth Managers
Ensure regrettable attrition is under control
Coach & train Premier Wealth Managers on all products

SALES FORCE EVALUATION

The criteria for Sales Force Evaluation are as follows:

Qualitative Methods
o Personal Observation
o Merit Rating
o Customer Opinion of salesmen

Quantitative Methods
o Analysis of Sales record & reports
o Comparison of salesmans performance with quota
o Ratio Analysis (selling cost to sales)
o New customers obtained
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DISTRIBUTION NETWORK OF PARLE-G

4
Parle uses Intensive Distribution for Parle G. This is the ideal strategy for the market leader as
intensive distribution has the following advantages:

Increases coverage and sales

Increases product availability
Encourages retailers to compete aggressive

The Parle distribution network for biscuits has essentially four levels as enlisted below:

Parle Depots
Wholesalers and Distributers
Carry Forward Agents (if required)
Retailers

Parle has level 1, level 2, level 3 distribution channels levels.

Level 1:

Availability of Parle G biscuits at all departmental stores across the length and breadth of the
country.

Level 2:

Since it's an FMCG product this channel exists for customers scattered throughout the country.

Level 3:

Mass consumption and suitable for National and International coverage. For e.g. Parle's
international operations consist of serving markets in the Middle East, Africa, South America,
Sri Lanka, Australia and North America for which the 3-level distribution channel exists.
DISTRIBUTION NETWORK LOGISTICS
1
5
Parle takes into consideration a host of factors while selecting the channel members. This is
because it believes that selection of channel members is a long run decision and the rest of
the decision regarding the supply chain depends upon the efficiency and coverage by the
channel members.

The following are the host of factors considered by the company in selecting the channel
members:

Authentication is required by the regarding the identity of the channel members, which
includes the name and address, photograph of the location.
Proof of solvency which requires name and address of the channel members bankers
Safety of the inventory, which means that the distributor/ dealer should get the stock of
the company insured.
Inventory or the perishable goods kept by the distributor/ dealer should be in good
condition which means a detail of storage space and Refrigeration facility is to be
provided.
Company acknowledges the fact that it needs to be sensitive to the market demands.
For this it requires that a number of salesmen needs to be present on the field.
The salesmen too are divided into various categories like
o The Field salesmen
o Counter salesmen
The details of Clerical Staff and labor are to be provided. The technical competence of
the salesmen needs to be mentioned.
Dealers of the company must carry a good reputation. This is due to the fact that Parle
believes that the reputation of the dealer affects the clientele in the long run.
Market coverage by the distributors needs to be defined which includes details of
Geographic coverage and Outlets per market area.

THE CHANNEL MEMBERS OF THE PARLE DISTRIBUTION NETWORK

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Distributors
6 o One of the main factors, which keep the distributors motivated, is the margin.
Usually the margins offered by Parle are 8%. Now-a-days it has been raised to
8.5%
o Volume wise this comes out to be a big figure since Parles product has a good
demand in the market. However, compared to the other companies the margins
are still lower since the new players in the market offer a much higher margin.
o The company is organizing various Total Quality Management initiatives and
workshops. Here, various counseling measures are undertaken by the company
to improve the overall working of the distribution network.

Retailers
o Trade schemes: these are undertaken by the company only for hard selling items
e.g. Biscuits and Snacks etc. for these the company raises the margins by 2%,
also schemes like good packaging in case of butter and cheese is undertaken by
the company. However, this is only a short-term initiative to push the products of
the company.
o Glow boards: the company puts up glow boards at the retailer and pays the
major portion of the cost.
o Schedule of the salesmen: they provide the retails with this schedule so the
retailers can pre-estimate the quantities of the various products needed.
o Infrastructure facilitation: the company facilitates the retailers to buy beautiful
stalls by formulating an easy payment program and a commitment to buy back
the equipment at a reasonable price when the value of the equipment has
depreciated.

EVALUATION OF CHANNEL MEMBERS

Parle has a three-pronged process to evaluate its channel members.
1
These are the Beat Plan, the Cumulative Performance Plan and Target versus Achievement
7
Plan.

Beat plan: this plan is generated for the various product categories. A weekly schedule
is prepared for various markets and the retailers the turnover for each of the product is
calculated for the wholesale dealers.

Cumulative performance: the performance of the dealers is averaged out over a

period of three years where a comparison is made of the present performance vis--vis
the previous ones.

Target versus achievement: the performance and the targets are compared and
therefore the gaps are identified which help in evaluating the wholesalers and the
distributors and planning for the next year as well. This is done for each of the product
category.

Other Criteria: these need to be fulfilled by the channel members of Parle

o Details of the bank guaranty
o Photographs of the offices
o The storage space
o Details of the delivery vehicle with photograph
o Summary of the monthly potential sales of markets
o Summary of the product wise monthly sales potential of institutions

CONFLICTS AMONG CHANNEL MEMBERS

 Ownership of assets: Previously the company used to give the products on lease to
1 the retailers, when the company wanted the stuff back; the retailer disagreed to comply

8 and created issues of ownership.

Stocking issues: The company does not want the retailers to stock the competing
brand in the company leased stall, which at times is hard to manage as retailers tend to
do it often.
Replacement of products: The deterioration in the product calls for fail in replacement
by the company this major issue of vertical conflict.
Credit policy: Compared to the market, the companys credit period is less that
specially in case of institutional sales is very important.
Packaging: The channel members for easy storing demand a better quality of
packaging.
Replenishment: The replenishment of the stocks is not prompt in case of Parle cheese
Biscuit and all hard-selling items.
Margins: The Company provides least margins to all the channel members. For e.g.
The retailers margin in case of Parle G is 8% as compared to Britannias 12%.

THE DISTRIBUTION CHANNEL AND PARLE

The companys strength is in the procurement of raw materials and essentially not the
distribution of its product. Even though Parle is the market leader in biscuits. But,
distribution logistics is the industrys main problem. While the other companies fail to
replenish demand due to lack in procurement of raw material, Parles inventory
management is sound.
Parle has loyal cooperatives that provide products only to them, over time the
relationship of trust has built up with these people that Parle leverages now.
The transport channel is another strong point for Parle. As these transporters have
grown with the company overtime; the bonding with them enables the company to give
least margins when it comes to the distributors in the industry, lowering the costs.
Parle believes that there is an ongoing demand in the market and therefore no
promotions are needed to increase the sales, also the fact this would affect the cost of
the product the company does not undertake many promotion schemes.
Parle is able to provide products at the least price in the industry, and is able to give
least channel margins as the channel members earn through volumes and not through
high margins.
The company has been able to push its new products into the market by hooking them
onto the fast-moving products like Parle butter bite.
 Because of the strong relationship that Parle shares with the constituent channel
1 members, it forces the channel members to carry all its new products.

SUGGESTIONS FOR PARLE DISTRIBUTION CHANNEL

Parle should go in for Parle Zones.

It is primarily for big city retail outlets. Here all the Parle products can be stalked. This can be
an effective mode of umbrella marketing . This strategy can be implemented in regions where
the footfalls are large in number.

The advantages of this alternative channel would be as follows:

Full range display

Easier to promote new products
Easy to push impulse purchase products
The Parle Brand building exercise will be enhanced.

REFERENCES
 "Parle-G world's No 1 selling biscuit: Nielsen". Economic Times. 2011-03-03. Retrieved
2 2011-10-12

0 The Chronicles of Parle-G by Shephali Bhatt. ET Bureau, 30th Oct 2013

Parle G Case Study. StudyMode.com. Retrieved 03, 2011, from

http://www.studymode.com/essays/Parle-g-Case-Study-619098.html

http://info.objectivemanagement.com/page/Sales-Force-Evaluation.aspx

https://www.scribd.com/doc/40190273/Parle-G-Sales-and-Distribution

http://economictimes.indiatimes.com/industry/cons-products/fmcg/biscuit-market-faces-
tough-competition-in-india-with-rising-cookie-segment/articleshow/52684857.cms

Parle-G: The journey of a biscuit for masses Retrieved 04, 2011, from
http://economictimes.indiatimes.com/slideshows/advertising-marketing/parle-g-
thejourney-of-a-biscuit-for-masses/numbo-jumbo/slideshow/24922125.cms