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CHAPTER -1

INTRODUCTION

1.1 INTRODUCTION OF THE COMPANY

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 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 consumers
it's a beacon of faith and trust, competitors look upon Parle as an example of marketing
brilliance.

Over the decades the efforts of their Research and Development wing have made
the repertoire of their products grow manifold. In biscuits they have Glucose, Milk, sweet
and salted, cream, Digestive, cumin seed and cheese categories. In confectionery, they
have a range of toffees and hard-boiled candies available in chocolate, mint, cola, and
tropical fruit flavors. Some of these are double layered toffees and center filled candies
packed in rolls or pillow packs, or have single or double twist wrapping.

Parle Products Ltd, the findings of a recent study conducted by ACNielsen


afforded the perfect opportunity to set up an interface with Indian consumers and speak to
them about the popularity of flagship glucose biscuit brand, Parle-G. An opportunity that
Parle Products and Everest Integrated Communications - the agency handling the Parle-G
account - grabbed with both hands. The result? A five-commercial ‘testimonial' campaign
that underlines the findings of the ACNielsen study: that Parle-G has emerged as the
world's largest-selling biscuit brand.

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Every nation dreams of a better tomorrow. And every nation’s tomorrow lies in
the hands of its children; children who make the nation proud in every aspect; the young
geniuses who shape the future of the nation. So it’s important to nourish these young
minds, for after all it’s a question of the nation’s future. Filled with the goodness of milk
and wheat, Parle G is a source of strength for both body and mind. Treat yourself to a
packet of Parle-G to experience what has nurtured and strengthened the minds of millions
of genius Indians for over 65 years. It’s more than just a biscuit. A meal substitute for
some, a tasty and healthy snack for many others. Consumed by some for the value it
offers, and many others for its taste.

The automatic biscuit production line, with original design, compact structure
and high automation, is developed on the base of adsorbing Japanese technology. All
working procedures that from feeding, calendaring, sharping, wastage recovering, drying
to cooking can be accomplished automatically. Hundred of moulds and dozens
of technology formulas make it possible to produce various kinds of popular biscuit
such as cream biscuit, sandwich biscuit, calcium biscuit, chocolate biscuit, soda biscuit,
multi-vitamin biscuit, vegetable biscuit, etc.

The Parle brands have been constantly honored internationally with the awards at
the Monde Selection.

Very rightly described as “SWAD SE BHARA, SWASTHYA SE BHARA”


means full with taste, full with health “.

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1.2 HISTORY OF PARLE COMPANY

In 1929 a small company by the name of Parle products emerged in British


dominated India. The intent was to spread joy and cheer to children and adults alike, all
over the country with its sweets and candies. The company knew that it wouldn’t 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 toffees. 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.

Apart from the factories in Mumbai and Bangalore Parle also has factories in
Bahadurgarh in Haryana and Neemrana in Rajasthan, which are the largest biscuit and
confectionery plants in the country. Additionally, Parle Products also has 7
manufacturing units and 51 manufacturing units on contract.

A long time ago, when the British ruled India, a small factory was set up in the
suburbs of Mumbai city, to manufacture sweets and toffees. The year was 1929 and the
market was dominated by famous international brands that were imported freely. Despite
the odds and unequal competition, this company called Parle Products, survived and
succeeded, by adhering to high quality and improvising from time to time.

A decade later, in 1939, Parle Products began manufacturing biscuits, in addition


to sweets and toffees. Having already established a reputation for quality, the Parle brand
name grew in strength with this diversification. Parle Glucose and Parle Monaco were the
first brands of biscuits to be introduced, which later went on to become leading names for
great taste and quantity.

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1.3 MISSION AND VISION

MISSION:

“We will be the leaders in our business by- maintaining high quality, introducing new
and innovative products, reaching every part of India, remaining customer-centric,
constantly upgrading our knowledge and skills.”

VISION:

“To be the leaders in our business. We will stand apart from the competition by being
the first in the market to innovate.”

1.4 BOARD OF DIRECTORS OF PARLE COMPANY

Designation Name

Chairman and Managing director Dheeraj Kumar

Executive Director Zuby Kochar

Executive Director Devendra Dass Kochar

Non Executive Director M R Sivaraman

Non Executive Director Shiv S Sharma

Non Executive Director T K Choudhary

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1.5 BRAND STORY OF PARLE G

In the hit Bollywood movie Welcome, actor Nana Patekar, in a passing reference
to Parle-G, notes that even biscuits command respect and have to be addressed with a ji
(a term of respect in Hindi). His remark, while made in jest, is not far off the mark.

“It is a heritage brand. We sell over 25 crore packets every month. That should reflect the
stature of the brand,” says Praveen Kulkarni, marketing head at Parle Products Pvt. Ltd.

Parle’s mantra has always been about repositioning the brand without tweaking
the look and feel of the product. “The brand is clearly an Indian brand and it straddles all
economic strata. The fact that it is a staple for everyone in the house keeps it going,” says
Nirvik Singh, chairman and president, Grey Global Group, South and South-East Asia,
the agency that handles the Parle-G account.

There was a time when Parle-G’s dominance was threatened by rival brands,
especially the Tiger brand from Britannia. “We found out that Tiger was getting stronger
in the kids segment, and we decided to change our positioning,” says Kulkarni.

Later, when the company sponsored the television show Shaktimaan on


Doordarshan, it literally rescued Parle-G. The brand also had some innovative
commercials involving young children with a new punchline, G means Genius, which
was an instant hit.

While rivals have signed on celebrities, 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. “We don’t need celebrities as the brand equity is so strong,” says Kulkarni.
“The biggest concern is that the brand shouldn’t become outdated as it is a historic brand.
The brand has managed to retain its leadership position because it has evolved its
campaign with every consumption trend,” says Singh. “

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1.6 COMPETITORS OF PARLE COMPANY

3%

9%

PARLE
18% BRITANNIA
ITC
OTHERS
70%

It's a story that has been repeated any number of times in the corporate world: an
unchallenged market leader rests on its oars; competition emerges out of the woodwork;
and almost at the blink of an eyelid, swamps the champion from all sides. That's precisely
what's happening to the Rs 1,587.5-crore Britannia Industries. To be fair to the company,
it is still holding on to its market leader status, but only very tenuously. Over the last
couple of years, Britannia, which was once considered a generic name for biscuits, has
seen its share of the Rs 4,500-crore per annum market fall from 48 per cent to 40 per
cent.

Britannia's loosening grip on the market has allowed challenger Parle to come
within striking distance of its crown (Parle, in fact, is the market leader by volume, but
still trails Britannia marginally in value terms); and given smaller players like Bisk Farm,
Priya Gold, Anmol, Marico and Duke space to carve out regional satrapies all over the
country. The year 2003 marked the inflexion point for the biscuits industry. That was
when ITC entered the market with its Sun feast brand and grabbed an 8-10 per cent
market share, Parle increased its market share from 34 per cent in 2003 to 38 per cent
now and regional brands and the unorganized sector together wrested about 10 per cent.
All this while, the market grew at a rate of 10 per cent per annum even as the market
leader's share dwindled. Britannia brushes aside any suggestion that its position is under

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siege. "We believe that more activity in the biscuits market creates more opportunities for
us, and we are very well placed to tap it.

Britannia leads the overall market in terms of value and, in fact, our brands lead in
six of the eight market segments," says Vinita Bali, CEO of the company. Meanwhile, the
challengers are using different strategies to consolidate their positions.

For Parle, it's price. "The market for biscuits is extremely price-sensitive," says
Kunal Motwani, an analyst at Equitymaster.com, a Mumbai-based research firm. "With
Parle holding the price of its 100 gram pack of glucose biscuits at Rs 4, no competitor can
afford to increase prices by even 25 paisa. This is putting pressure on margins and
affecting growth," he adds. Glucose biscuits account for 57 per cent of the Indian biscuit
market and Parle G commands a 50 per cent share of this segment. Incidentally, the
brand, which sells 4,000 tones per annum, is the world's largest by tonnage.

1.7 PRODUCTS MANUFACURED BY PARLE COMPANY

Parle Products Pvt. Ltd’s main source of revenue is its brand Parle-G, which is a
brand worth around 20 billion (INR), and it contributes more than 50% to the company’s
total revenue. The confectionery items by Parle fetch around 15% of its total revenue.
The following are the products offered by Parle based on the market segment.

BISCUITS:

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

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Sr. Product Sr. Product


No. No.
1. Parle-G 9. Parle Marie
2. Hide n Seek 10. Kreams
3. Krackjack 11. Milk Shakti
4. Hide and Seek Milano 12. Parle 20-20 Cookies
5. Magix 13. Goldenarcs
6. Digestive Marie 14. Nimkin
7. Monaco 15. Festo
8. Happy Happy 16. Top

CONFECTIONARIES:

Right from candies to toffees, the sweet 'n' treat category of the Parle product
range is a genuine treat for every snack lover. This category can satisfy one's taste and at
the same time create a desire for more. These confectioneries are a sheer delight to the
taste buds and have a universal appeal. Parle Biscuits and confectioneries, continue to
spread happiness and joy among people of all ages.

The following are confectionary products owned by Parle Products Pvt. Ltd.:

Sr. No. Product Sr. No. Product


1. Poppins 8. Kismi Toffee
2. Mazelo 9. Kismi Toffee Bar
3. Orange Candy 10. Kismi Gold
4. Xhale 11. Melody
5. 2 in 1 Eclair 12. Mango Bite
6. Golgappa 13. Kaccha Mango Bite
7. Melody Softee 14. Parle Lites

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SNACKS:

Salty, crunchy, chatpata and crispy caters to the bunch of Parle snacks. You can
now treat your loved ones with this yummy lot.

Parle snacks are a complete delight to the taste buds and can create the desire for
more and more. These snacks will not only satisfy your tummy but will also sustain a feel
in your mouth to associate you with the bond of Parle.

Sr. No. Product Sr. No. Product

1. Musst Bites 4. Cheeslings


2. Sixer 5. Jeffs
3. Musst Stix and Musst Chips 6. Sixer Zeera

BEVERAGES:
The following are beverage products owned by Parle:

Sr. No. Product Sr. No. Product

1. Frooti 4. Bisleri
2. Grappo and Appy Fizz 5. Saint Juice
3. LMN 6. Bailey

All the brands referred in this report, except Bisleri, under the beverage category
are owned by Parle Agro Pvt. Ltd., a company owned by Mr. Prakash Chauhan. Mr.
Ramesh Chauhan, brother of Mr. Prakash Chauhan, heads Parle Products Pvt. Ltd., and
controls Parle Bisleri Ltd. which manufactures and markets mineral water under the trade
name Bisleri.

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CHAPTER -2

PRODUCT STRATEGY

2.1 INTRODUCTION

BISCUITS are the products of daily consumption.

Consumed by, one and all.

And when it comes to Parle biscuits, it is loved by all.

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

Parle Products Limited has launched different brands of biscuits. Not only in
urban areas but also in rural markets as well. They have entered the rural markets with
the same price and quality. Not with all the brands but many of them. Out of which Parle-

G is the most vital one. It has penetrated so much in the market that it has become
the house hold name. Even it is compared to the meal of a person. That if a person
consumes a full packet of biscuit instead of having lunch or dinner. And this is accepted
by the consumers, as the nutritional value is high enough. This stands as a biggest
accomplishment for the company.

A Company needs nothing except the consumer satisfaction and Parle has
successfully gained that. This is its biggest achievement which creates a success story.

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2.2 BELOW IS THE VARIETY OF BISCUITS PROVIDED BY


PARLE

PARLE G

Every nation dreams of a better tomorrow. And every nation's tomorrow lies in the hands
of its children; the young stars who shape the future of the nation. So, it's important to
nourish these young stars, after all it's a question of the nation's future.
Filled with the goodness of milk and wheat, Parle-G is a source of all round nourishment.
Treat yourself to a pack of yummy Parle-G biscuits to experience what has nurtured and
strengthened millions of people for over 70 years. A meal substitute for some and a tasty
and healthy snack for many others. Consumed by some for the value it offers, and many
others for its taste. Whatever the occasion, it has always been around as an instant source
of nourishment. Little wonder that it's the largest selling biscuit brand in the world.

HIDE AND SEEK

Play a game of hide and seek with your taste buds. Indulge in the mouth-watering delight
of India’s best moulded chocolate chip biscuits, Hide and Seek. All it takes is one bite,
and you are transported to chocolate Heaven. Packed with a bounty of chocolate chips,
once you try Hide and Seek, you will never want any other biscuit again. A treat for the
mouth, and the heart, khate hi dil aa jaye!

KRACK JACK

Parle introduced India’s first and original sweet and salty biscuit –Krackjack in 1972,
which went on to become one of the most loved biscuits. It’s a crispy and delicious
biscuit with a perfect balance of sweetness and saltiness. Once you start relishing it, you
won’t be able to stop the longing for more. Though Krackjack sweet and salty biscuits
can be enjoyed anytime, it goes wonderfully well with your evening cup of tea.
The unique dual tastes of sweet and salty have a perfect analogy with the dual personality
of an individual, be it a politician or a mother-in-law….Taste ka double role jo khol sakta
aap ki bhi pole.

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HIDE AND SEEK MILANO

There’s most definitely a secret. After all, behind every prized cookie is a well guarded
recipe. That's because the Milano is no ordinary cookie. Available in Chocolate Chip,
Butterscotch, Butter Nut and Choconut, every Milano is as rich and exotic as it is
premium and delicious. Indulge in the sinful taste of Milano, a cookie with a reputation
for romance, and enjoy everything that follows.

MAGIX

Imagine a biscuit with the goodness of a health biscuit and fun of rich cocoa and crunchy
cashews. Magix is an eclectic mix of taste and health. Brimming with 7 vital vitamins
and 2 minerals, there's no way that moms can refuse to let you have something that is
crunchy, healthy and tasty.

PARLE ACTIFIT DIGESTIVE MARIE

Now say 'goodbye' or at least 'see-you-later’ to the couch, the video games, the computer
and the TV. And enter the Actifit world where you say 'Hi. Hello, Good morning' to the
gym, the roads, the pool. And to help you stay this active, you need Actifit Digestive
Marie. It's a biscuit that's packed with 5x more fibre (than other Marie biscuits) and 67%
less fat. And it's a biscuit that will help you commit to a healthier you.

MONACO

“Life namkeen banaiye!” When life hits a dull patch, just pull out a Parle Monaco to
make it exciting. The light, crispy biscuit sprinkled with salt, is the perfect namkeen twist
you can add to your ordinary boring moments. Go ahead, Life namkeen banaiye,
anywhere, anytime with Parle Monaco.

To spice up your life further, try the variant of Parle Monaco - The Zabardast Jeera. This
salted, crispy biscuit delicately seasoned with jeera, has a unique taste that makes those
namkeen moments even more exciting.

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HAPPY HAPPY

Experience a world of happiness with Parle Happy Happy Cookies. Baked to perfection,
these cookies are topped with delicious choco-chips to give you that never-ending feeling
of unbridled joy. Just open a pack of Parle Happy Happy Choco-Chip Cookies, pop one
in your mouth and feel your senses come alive.

PARLE MARIE

There are two types of people in this world. Those who love to talk, and those who love
to listen. Not surprisingly, both types love Parle Marie. Because it's much more than a
Marie biscuit. It's as light as the jokes your best friend cracks. As crisp as your uncle's
commentary on politics. As tasty as the juicy rumours your sister brings to the table.
It is, in short, the perfect accompaniment to chats, arguments, discussions and gossip
sessions. And yes, it's healthy too. So the next time you're in good company, grab your
favourite cuppa and open a pack of Parle Marie. We promise the conversations that
follow will be as addictive

KREAMS

Finally a biscuit that's perfect for every occasion and for everybody's preferences. Parle's
Cream biscuits come in different shapes, sizes and flavours, giving you the freedom to
choose, based on your needs. For a tangy delight, choose the Orange cream or try the
perfect tropical treat with the Pineapple flavour. No longer will you need to wait for the
whole year for a taste of the summer thanks to delicious Mango cream; and indulge your
taste buds with the goodness of Elaichi with mouth-watering Elaichi cream biscuits. And
last but not the least, the chocolate lovers can find solace in the delightful Chocolate
cream biscuits , or the sugar coated chocolate cream centre biscuit Parle Kreams
Bourbon. It’s time to indulge yourself. And never stop.

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MILK SHAKTHI

Milk Shakti is a power-packed biscuit fortified with the goodness of milk and honey.
Kids today are growing up quicker than before. They can run faster, throw further, hit
harder and jump higher. Move over Mr. Dhoni, kids today are super confident, because
they aren't kids anymore, they are young adults.

Milk Shakti is a power packed biscuit that can be part of your breakfast, a mid-morning
snack or anytime when you need a burst of energy for that extra edge, maybe before a
cricket match, or a tennis tournament. Milk Shakti is India's first milk biscuit that comes
fortified with the goodness of honey.

20-20 COOKIES

Imagine biting into a cookie that oozes with irresistible taste of fresh, wholesome butter
and showered with crisp, crunchy cashew. 20-20 cookies are baked to a golden brown
crispiness to melt in the mouth and leave you with the taste of perfection.

Once you open a pack, you can be sure its going to be over before you can even say Parle
20-20 cookies khao, short mein niptaon. 20-20 cookies can be eaten at any time of the
day, but may we suggest you avoid tea times! You don't want to share it with anyone at
all. So enjoy Parle 20-20 cookies, filled with the richness of cashew and the goodness of
butter.

GOLDEN ARCS

Juicy, tasty orange and pineapple jelly wrapped in a chewy cake roll. Golden Arcs are
delights to the taste buds from the time you bite into the delicious pastry till your teeth
sink into the sinfully tasty jelly inside.

Golden Arcs can be the perfect snack at school during the breaks or can even be an after-
meal dessert when you want to indulge in something sweet, but not feel guilty since these
are filled with real fruit. Chewy rolls filled with the goodness of real fruit.

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NAMKIN

Crispy, zingy, salted crackers. The perfect accompaniment for tea times. Move over
bland biscuits, tea time just got so much more interesting.
Tasty crackers baked to a golden perfection, sprinkled with salt for that added zest
Nimkin is the perfect tea time snack. But with a cracker so tasty, why just leave it for tea,
you can have it any time of the day Crisp salted crackers, baked to a golden perfection

FESTO

Being a kid is super exciting! Masti is expected of you, dhamaal is your birthright and
turning a boring day into an adventure is as easy as savouring the cream within the
biscuit. Tangy orange, creamy chocolate, traditional elaichi, zingy pineapple or sweet
mango; there’s a flavour for any bit of naughtiness you can think of. So, whatever you get
up to, Festo will be there to go crazy with you.

TOP

It is the ultimate crispy cracker with the finest taste of butter, especially made to
mesmerize you with its smoothness. The unspoken dream or the wildest imagination gets
real, with the smooth texture of butter. So take a bite and escape into your own world
where it will be just about you and everything else fades into oblivion. Let no one come
between you and "Buttery Taste and Buttery Dreams".

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2.3 PARLE RE-LAUNCHES BISCUITS BRAND MARIE CHOICE:

Parle Products has decided to re-launch its regular Marie brand and also hike its
price by Rs 2. The company has also changed the name of the product from Marie Choice
to Parle Marie. Parle has also been trying to grow the Marie category with its value-added
premium variant - Marie Digestive (priced at Rs13 for 200 gm).

According to the company, the Marie category is growing at 20 per cent and the
new variant has not eaten into the share of the regular Marie. The company also has no
plans of hiking prices for the rest of its biscuit brands, including its largest selling glucose
brand - Parle G. Incidentally the price of Parle G has not been changed in the past 12
years. The price of Parle G continues at Rs 4 for 100 gm.

The Anti-Marie bureau led by its chief, storms in. As the man looks on, the
Bureau points to a product shot while Kajol rattles off its benefits. The now-converted
biscuit eater gratefully reaches out for the new snack. Kajol flashes a pack of PDM,
declaring "yahi Marie, sahi Marie" (this Marie is the right Marie).

The brief given to the agency was simple: highlight PDM's unique selling points -
high fiber, low calorie, low fat and a light feeling on regular consumption - to existing
Marie eaters.

And convince them to switch to PDM. "We didn't want to launch PDM on the
taste platform because all Marie biscuits taste alike. So we opted for the superior fiber
platform," says Vijay Chauhan, chairman and managing director, Parle Products.

Chauhan's simple strategy made PDM stand out in the crowded Marie market.
Currently, the core biscuit - including Marie and the popular glucose varieties - segment
makes up 55 per cent of the Rs 4,000 crore (Rs 40 billion) biscuit segments. That works
out to a significant Rs 2,200 crore (Rs 22 billion).

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There's been a healthy appetite for Marie, too. The Rs 490 crore (Rs 4.9 billion)
segments have been growing consistently at 10-12 per cent. But Marie Choice, Parle's
decade-old brand, hadn't been expanding its share of the market for a while. If the
company were to revive an interest in the product, it had to innovate. So Parle blended
the high fiber content of digestive biscuits like McVitie's Digestive, into a regular Marie
biscuit.

Even the name was tinkered with to reflect the change - Digestive Marie. PDM
claims to have has five times more fiber than the regular 0.7 per cent fiber content in
biscuits like Sun feast Marie Light. It's also the low-fat alternative, apparently: 10 per
cent compared to 22 per cent in regular digestive biscuits.

Parle also claims that sales have already picked up. But the big picture doesn't
look as appetizing. One of the bigger Marie markets is eastern India. That market is
crowded with about 30 regional players, offering lower price points. "Even Britannia has
lost out there," says Parle's Chauhan. It can't help that PDM is more expensive than all
other Marie brands.

That's mentioned upfront in the ad itself. "The extra fiber costs extra money," says
Chauhan. A 200-g pack of Britannia Marie Gold costs Rs 12, while a similar size pack of
PDM is 25 per cent more expensive at Rs 15. Parle is urging consumers to try PDM
through the well-tried route of introductory discounts. At present, there's a discount of Rs
2 on both the 200-g and 400-g packs. That offer is likely to be withdrawn in a couple of
months.

But Parle is not content with just a cut in price. It's also emphasizing on the brand
switch to PDM. That means it may also eat into its own franchise - Parle Marie Choice
consumers could also shift to PDM, thereby reducing Marie Choice's market share to
crumbs. But Parle claims its strategies are well-baked. Even if Marie Choice's market
share crumbles, PDM's market share will rise. So the scenario evens out.

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CHAPTER -3
PLACE STRATEGY

3.1 INTRODUCTION

Place refers to as the distribution channels adopted by Parle Products to reach


even the interior part of the village. This is a quiet difficult and challenging task. But,
Parle has always seen further to find solutions and grab opportunities.

The extensive distribution network, built over the years, is a major strength for
Parle Products. Parle biscuits and sweets are available to consumers, even in the most
remote places and in the smallest of villages with a population of just 500.

Parle has nearly 1,500 wholesalers, catering to 4, 25,000 retail outlets directly
or indirectly. A two hundred strong dedicated field force services these wholesalers and
retailers. Additionally, there are 31 depots and C&F agents supplying goods to the wide
distribution network.

3.2 SELECTION:

The company 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 member’s bankers

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 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 to be provided.

 Details of the delivery vehicle, which includes Light Commercial Vehicles, Matador,
3 Wheeler Van, Tricycle Van and Hand/Push cart. The number and model of each of
the vehicle needs to be furnished to the company.

 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 the Field salesmen and Counter
salesmen. Also the details of Clerical Staff and Mazdoors are to be provided. The
technical competence of the salesmen needs to be mentioned

 Details of the product kept of other companies have to be provided. The annual sales
of these products too have to be mentioned. Also details of complementary products
and product lines need to be mentioned.

 Dealers of the company must carry a good reputation. This is due to the fact that the
company believes reputation of the dealer affects the clientele.

 Market coverage by the distributors needs to be defined which includes details of


Geographic coverage and Outlets per market area.

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 The company also requires the dealers to furnish any Advertising and Sales initiative
undertaken by them on behalf of the company.

3.3 MOTIVATION OF CHANNEL MEMBERS:


Company strongly believes in maintaining a good relationship with the channel
members so that they are genuinely motivated to work for the company. Also if the
channel members are motivated, they can also initiate advertising and sales promotion
schemes on behalf of the company. However to keep the channel members motivated to
work, the company has to incur certain costs but the benefits of it are felt in the long run.
The following are the motivation programs run by the company:

3.4 DISTRIBUTORS:

 One of the main factors, which keep the distributors motivated, is the margin. Usually
the margins offered by the company are 8% and it is raised to 8.5%. Volume wise this
comes out to be a big figure since Parle’s 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. But the very fact that Parle’s
products have good demand in the market motivates the distributors to stock it.

 Parle Products being a cooperative cannot afford to give heavy monetary incentives.
Parle’s products are considered to be value for money since the company does not
believe in charging high margins. In fact all monetary incentives are just the short run
means to promote the company’s product. In order to keep the Channel members
motivated in the long run, Parle builds on the concept of “Trade Marketing” which
makes the dealers and the distributors believe that the company’s products are worthy
of being pushed in the market.

 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.

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 Vision and mission statement: the company cascades down the vision to the various
channel members; this is done through various events organized by the company at
different locations where the values of the company are made clear and enforced to
the channel members.
Also the fact that Parle being a cooperative society cannot afford to spend
exorbitantly on such events therefore it has a very traditional way of organizing these
get together which leaves an impact on the members.

3.5 THE RETAILERS:

 Trade schemes: these are undertaken by the company only for the hard selling items
e.g. Biscuits and Snacks etc. for these the company raises the margins by 2%, also
schemes like good packaging incase of butter and cheese is undertaken by the
company. However this is only a short-term initiative to push the products of the
company.

 Glow boards: the company puts up glow boards at the retailer and pays the major
portion of the cost.

 Schedule of the salesmen: they provide the retails with this schedule so the retailers
can pre estimate the quantities of the various products needed.

 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.

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Evaluation of channel members

 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-à-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 WD and planning for the next year as
well. This is done for each of the product category.

3.6 Co-Operation among Channel Members

 Parle quality circles: The members of the local channel meet together every month to
share issues and the achievements of the channel members. This is an ongoing activity
facilitated by the company offices in different locations; this enables the channel
members to learn together and reduces the horizontal conflicts among the WDs.

 Pilot salesmen scheme: To reduce the financial burden of the distributors this scheme is
run whereby half the cost of the salesmen is born by the company and the rest half by the
distributor

 Scheduling of sales: The WD’s provides Schedule of the distributor’s sales men to the
retailers so that the retailers can plan out and place the orders in advance.

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 Agreement defining rights: The company makes the distributors sign an agreement
where the areas of operation for each of the distributors are defined, therefore avoiding
any conflict amongst the distributors regarding their areas of operation.

3.7IMPORT-EXPORT:
The immense popularity of Parle Products in India was always a challenge to our
production capacity. Now, using more modern techniques for capacity expansion, we
have begun spreading our wings and we are going global.

Parle biscuits and confectionaries are fast gaining acceptance in international


markets, such as the Middle East, Africa and South East Asia. The more sophisticated
economies like U.S.A., UK, Canada, Australia and New Zealand are also relishing Parle
products.

As part of the efforts towards a larger share of the global market, Parle has
initiated the process of getting ISO 9000 certification. The Parle name symbolizes
quality, health and great taste. And yet, we know that constantly innovating and catering
to new tastes has built this reputation. This can be seen from the success of its new brands
such as Hide and Seek etc.

Today, the Parle brands have found their way into the hearts and homes of people all over
India and abroad. The Parle biscuit brands, such as, Parle-G, Monaco, Krackjack, Marie
Choice, Hide and Seek enjoy a strong imagery and appeal amongst consumers across the
world.

This has resulted into Parle-G being the ‘Worlds Largest Selling Biscuit’.

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CHAPTER-4

PROMOTION STRATEGY

4.1 INTRODUCTION

Parle-G started being advertised in the 80's. It was advertised mainly through press ads.
The communication spoke about the basic benefits of energy and nutrition. In 1989,
Parle-G released its Dadaji commercial, which went on to become one of the most
popular commercials for Parle-G. The commercial was run for a period of 6 years.

Parle-G grew bigger by the minute. Be it the packs sold, the areas covered or the number
of consumers. It became a part of the daily lives of many Indians. It wasn't a biscuit any
more. It had become an icon. The next level of communication associated the brand with
the positive values of life like honesty, sharing and caring.

In the year 1997, Parle-G sponsored the tele-serial of the Indian superhero, Shaktimaan
that went on to become a huge success. The personality of the superhero matched the
overall superb benefits of the brand. Parle extended this association with Shaktimaan and
gave away a lot of merchandise of Shaktimaan, which was supported by POS and press
communication. The children just could not get enough of Parle-G and Shaktimaan.

In the year 2002, it was decided to bring the brand closer to the child who is a major
consumer. A national level promo - `Parle-G Mera Sapna Sach Hoga' was run for a
period of 6 months. The promo was all about fulfilling the dreams of children.

The year 2002 will go down as a special year in Parle-G's advertising history. A year that
saw the birth of G-Man a new ambassador for Parle-G. Not just a hero but also a super-
hero that saves the entire world, especially children from all the evil forces. A campaign
that is not just new to the audiences but one that involves a completely new way of
execution that is loved by children all over the world – Animation.

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To make the brand much more interesting and exciting with children, it was decided to
launch a premium version of Parle-G called Parle-G Magix in the year 2002. Parle-G
Magix is available in two exciting tastes - ‘Coco’ and ‘Cashew’. The year 2002 also
witnessed the launch of Parle-G Milk Shakti, which has the nourishing combination of
milk and honey, especially launched for the southern market.

For Parle, advertisements, events and campaigns have been major channels of
communication. The following sections describe such channels in greater detail.

4.2 ADVERTISEMENTS:

The following are some of themes based on which Parle has been advertising to market
its brand.

Healthy Products, Iconic Brand Ambassadors:

Parle has maintained its brand position as a low cost and a healthy product, but in order to
promote several other products it has made several major changes in its campaign.
Referring to section 4, in past few years, like Britannia, Parle approved of cricket players
endorsing its products. Parle’s Milk Shakti faces a competition from Britannia’s similar
product Milkbikis. In a snapshot of an advertisement in which the Indian cricket team
captain – MS Dhoni endorses Parle’s Milk Shakti biscuits.

Product Metaphor:

It also promoted its product by metaphorically claiming its products as a “Genius.” It also
continues to associate its brand with celebrities while asserting its position of being
genius.

Celebrity Endorsing:

It continues its association with a celebrity-star like Hrithik Roshan to promote its
premium segment product such as Parle Hide and Seek.

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Product Association with Audience:

In yet another strategy, it associates its product with famous characters rather than the
celebrity or a cricket player. One of its major achievements was its association with
Shaktimaan, an Indian superhero. It also advertises its products by associating them with
individual traits.

For example, when Parle launched their new product (a first one then) Parle Monaco-
Life Namkeen Banaye biscuits, in order to attract the audience interest they correlated the
salty part of the biscuit to an individual’s wittiness.

With another advertisement on Parle Marie, with the slogan “Baatcheet Bakbak aur Parle
Marie”, it appealed to the family rather than focusing on specific age group, unlike what
it used to do initially for Parle-G.

4.3 EVENTS AND CAMPAIGNS

Promotional campaigns - Parle-Gramin Swastha Yojana

Parle had launched a new scheme called a “Parle-Gramin Swastha Yojana,” which was a
network of ambulance van visiting rural areas giving basic medical treatments, educating
people on nutrition deficiency problems, and promoting Parle nutritious products. 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 decided to launch “Parle-G Mera Sapna Sach Hoga” contest to stay as a
popular brand among children. This was an initiative taken after its successful branding
with Shaktimaan. The national level promos run for a period of 6 months which promised
free scholarship and free trips to Disneyland at Paris and Singapore. In past, it had also
launched TV serial called Parle Sakthi, mainly oriented towards the women consumers.

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Parle-Golu Galata Contest

This event was specifically focused in Tamil Nadu where household women decorate
clay dolls. Then the women display the dolls on the specially prepared Koulpasis or steps
made of wood and covered with a thick cloth. This was then displayed to friends and
relatives. This tradition was slowly losing its charm, but Parle saw an opportunity to
reach out to the people and organized the contest as a novel promotion strategy. Thus, it
also promotes its products at regional level through traditional activities.

Sales promotion consists of activities that have the purpose of making other sales
efforts (e.g. advertisement) more effective. Some popular sales promotion techniques of
Parle are:

a. Special displays
b. Offering Scholarship
c. Running contest
d. Distribution of free samples
e. Offering free introductory services
f. Demonstrating products

In spite of all efforts spent in doing market research, sales forecasting and
advertising and sales promotion, some one ultimately must do some personal selling of
products or services.

Selling through Agent Middlemen

 Selling Agent: The selling agents perform on the basis of extended contracts and
negotiate all sales of a specialized line of merchandise or the manufacturer’s
entire output. Usually, the agent has full authority concerning prices and terms
and is the sole seller for the line represented and is not given market area.

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 Manufacturer’s Agent: the manufacturer’s agent or representatives is an


independent business person who sell a part of output of two or more client
manufacturers whose products are related but non-competing, on a continuous or
contractual basis in a limited or exclusive territory. Manufacturers use agents
more often than any other type of agent middlemen. The agents do not take title to
the goods, are paid a commission and have little or no control over prices, credit
or other terms of sales.

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CHAPTER - 5
PRICING STRATEGY
The Parle marketing philosophy emphasizes catering to the masses. It constantly
endeavors at designing products that provide nutrition and fun to the common man. Most
Parle offerings are in the low and mid-range price segments. This is based on its
cultivated understanding of the Indian consumer psyche. The value-for-money
positioning helps generate large sales volumes for the products.

Parle G has adopted the Market Penetration strategy i.e. low price along with capturing of
a large market Also they focus on low prices and provide good quality products at the
same time, which means it uses the value pricing method. This benefits Parle G by
having a competitive edge in terms of large market share which is around 40%: both rural
and urban presently.

For setting the price of Parle hide and seek biscuit, a survey was taken in the urban and
semi-urban markets; on the basis of which hide and seek was introduced. It was found
that the potential consumers were ready to pay a premium price for an innovative product
like chocolate chip biscuits. Thus, Parle adopted market skimming where the product is
high priced and also of high quality. It includes the cost of chocolates, packaging and
other processing cost. All these show customer status, which is also one of the reasons for
Parle hide and seek’s high price.

A separate example for explaining the pricing strategy of Parle is its product Parle
Creams

For this product Parle uses going rate method only as a reference rate. In this case, Parle
Creams were introduced after Britannia’s Cream Treats with similar variants but at Rs.5
per packet of biscuit and not Rs.10 like that of Britannia’s cream treats.

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The biscuit market in India is extremely price sensitive. With Parle providing most of its
biscuits in the range of Rs. 1to 40, other players in the market can’t think of increasing
the prices.

For example,

PRODUCT PRICING(Rs.)
Parle-G 1,2,3,4,5,10,20,30,40,50
Hide and Seek 5,12,20,30,50
Krackjack 5,7,10,15,20
Hide and Seek Milano 5,12,15,30,25
Magix 6,10
Monaco 5,7,10,20
Happy Happy 5,10
Parle Marie 5,10,15,20,22
Kreams 2,5,10,18
Milk Shakti 5,10
Parle 20-20 Cookies 5,10,18,20
Goldenarcs 10,20
Nimkin 5,10
Festo 5,10
Top 5,10,20
These are the various prices of Parle Biscuits in urban as well in rural areas. The
price is too low, which is affordable by all irrespective of an individual’s economic
status.

Rural consumers look for value than its price. Product strategy and pricing are inter
linked with each other to deliver value at the right price. So, the biscuits of Parle are of
good quality and nutritious.

Also, the rural consumers are more interested in the utility of the product rather
than packaging. So, it’s better to avoid sophisticated packing. And it will help out in
reducing the cost as well. Simple packing should be adopted. Parle uses polyethylene
sheets instead of boxes, which keeps the quality and quantity of biscuits and
confectioneries in good condition. The price is low enough as it has to penetrate in the
market even in the interior of the country. It makes it affordable by each and every one.

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CHAPTER-6

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. This is
based on their understanding of the Indian consumer psyche. The value-for-money
positioning helps generate large sales volumes for the products. However, Parle Products
also manufactures a variety of premium products for the up-market, urban consumers.
And in this way, caters a range of products to a variety of consumers.

Affordability:
Parle G offers 1Rs. pack which contains 4 biscuits which is affordable to anyone aims to
satisfy hunger.

(2) Sizeable market share in the country:

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 consumers it's a beacon
of faith and trust, competitors look upon Parle as an example of marketing brilliance.

(3) Offers variety of products in different sizes under its brand:

Parle offers a variety of biscuits at different pricing range. The Parle marketing
philosophy emphasizes catering to the masses. We constantly endeavor at designing
products that provide nutrition and fun to the common man. Most Parle offerings are in

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the low and mid-range price segments. This is based on our cultivated understanding of
the Indian consumer psyche.

The value-for-money positioning helps generate large sales volumes for the products.
However, Parle Products also manufactures a variety of premium products for the up-
market, urban consumers. And in this way, caters a range of products to a variety of
consumers.

(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.

(5) Largest distribution system:

The extensive distribution network, built over the years, is a major strength for Parle
Products. Parle biscuits and sweets are available to consumers, even in the most remote
places and in the smallest of villages with a population of just 500.Parle has nearly 1,500
wholesalers, catering to 4, 25,000 retail outlets directly or indirectly. A two hundred
strong dedicated field force services these wholesalers and retailers. Additionally, there
are 31 depots and C and F agents supplying goods to the wide distribution network.

(6) Wide coverage area of manufacturing units:

Parle Products has one factory at Mumbai that manufactures biscuits and confectioneries
while another factory at Bahadurgarh, in Haryana manufactures biscuits. Apart from this,
Parle has manufacturing facilities at Neemrana, in Rajasthan and at Bangalore in
Karnataka. The factories at Bahadurgarh and Neemrana are the largest such
manufacturing facilities in India. 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, so as to ensure a constant output and easy distribution.

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Each factory has state-of-the-art machinery with automatic printing and packaging
facilities.

(7) The quality commitment:

All Parle products are manufactured under the most hygienic conditions. Great care is
exercised in the selection and quality control of raw materials, packaging materials and
rigid quality standards are ensured at every stage of the manufacturing process. Every
batch of biscuits and confectioneries are thoroughly checked by expert staff, using the
most modern staff, using the most modern equipment.

(8) The customer confidence:

The Parle name conjures up fond memories across the length and breadth of the country.
After all, since 1929, the people of India have been growing up on Parle biscuits and
sweets. Today, the Parle brands have found their way into the hearts and homes of people
all over India and abroad. The consumer is the focus of all activities at Parle. Maximizing
value to consumers and forging enduring customer relationships are the core endeavors at
Parle. Their efforts are driven towards maximizing customer satisfaction and this is in
synergy with their quality pledge. “Parle Products Limited will strive to provide
consistently nutritious and quality food products to meet consumers' satisfaction by using
quality materials and by adopting appropriate processes. To facilitate the above we will
strive to continuously train our employees and to provide them an open and participative
environment.

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CHAPTER-7

WEAKNESS

(1) Breakage of biscuits while delivering to retailers:

Sometimes biscuits get damaged while delivering to retailers. Company should adopt
innovative packaging techniques. So that the quality of biscuits are good till it reaches the
customer, also attractive for the customer.

(2) No proper replacement system for broken biscuits to retailers:

There is no proper replacement system for broken biscuits to retailers. Company should
start a program for the loyal retailers and wholesalers to reduce their complaints by
providing timely supply and replacement. This will help in increasing their sales.

(3) Improper and irregular supply:

There is improper supply of products to retailers and distributors. Hence it is advised to


increase the number of stock keeping units {SKU} available in the retailer’s store. Each
salesman should stress the retailers to keep the maximum SKUs and to maintain these
SKUs throughout. With this, the replacement of the damaged and expired biscuits should
be prompt and without any hassles, so that retailer can be saved from the loss of the
expired and damaged goods.

(4) Dependent on its flagship brand, Parle-G:

The major income source for Parle Company is the Parle-G biscuits. The biggest concern
for Parle -G is that the brand shouldn’t become outdated as it is a historic brand. The
brand has managed to retain its leadership position because it has evolved its campaign
with every consumption trend. Hence Parle Company should opt for innovative
techniques to maintain the brand of Parle-G

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(5) Poor packaging in family pack of glucose biscuits:

Company should adopt innovative packaging techniques, 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 company should come up with double packaging as people refuse to buy
family pack biscuits with loose packaging. The company should take proper measures
that the schemes and offers are not gulped by the middlemen, and that it benefits the
retailers and customers.

(6) Lack of schemes for retailers and distributors:

One of the advantages of Parle Company is the wide range of retailers and Distributors.
Parle Company should implement more innovative schemes for retailers and distributors.
So there is better relationship between the company and retailers, distributors.

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CHAPTER-8

OPPORTUNITIES

(1) Rising demand for innovative packaging in packaged foods:

Parle should adopt new innovative packaging techniques. Since it can attract more
customers specially kids through innovative packaging techniques. 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. The Parle
Company can maintain the loyal retailers and wholesalers. Since one of the most
important strength of the company is wide spread distribution network. The wholesalers
and retailers are one of the main reasons for the same. Hence it is advised that new
innovative programs and more incentives should be given to them.

(3) Improving supply system for established brands:

As discussed in the earlier point the company can attract more retailers and wholesalers.
Due to this the company can expand the supply system and attract more customers. This
in turn will earn good profit to the company.

(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)

Promote Parle brand through T. V. shows such as “Parle Sakthi” (“Parle - Friend of
Women”). The weekly T. V. 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”.

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Parle is weak in Eastern India and Tamil Nadu. To cover up this loop hole, 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, the following are some of the suggestions that may
help Parle Products Pvt. Ltd. to maintain its position as a leading company in the food
and beverage market in India.

(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. 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. They can also be a part of NRHM centers.
By this, they would be able to improve their visibility in the rural biscuit market in India.

(6) Innovation and Rural Market:

Innovating new products, especially non-glucose type biscuits, and its test marketing in
the rural market with its existing distribution channel would help them establish a new
market in rural India. This would be similar to replication of their strategy of innovation
following which they launched their product - Hide and Seek that is a premium segment
product mainly focused in the urban or semi-urban market.

(7) Going Public:


Parle is one of the oldest companies in the biscuit market and except for its glucose
biscuit business, no other product has had a significant impact in the market. In order to
follow an aggressive expansion plan and to foster world class R & D, it may need funds,
which it can easily generate through an IPO because of its brand name. This can also help
them diversify into different related markets. It is important to note that both of its major
competitors, namely, Britannia and ITC are publicly listed companies that have
aggressively pursued advertising and R & D.

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(8) Diversify in New Market:

Today, though Parle has a commanding position in the biscuit industry, the future may be
much more competitive in this industry. This is because of entry of several new
companies into this 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. Hence, Parle being an
established brand should diversify into different market such as dairy products like
cheese, butter, etc.
The image that it has among the Indian masses is that of a “chai-biskut” providing
company in the rural India. Specifically, 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. The advantages of this channel will be:

i. Full range display


ii. Easier to promote new products
iii. Easy to push impulse purchase products
iv. 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.

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 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. For this the
company could provide a deliveryman with cycle to reach the different houses.

 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, 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.

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VIVEK COLLEGE OF COMMERCE

CHAPTER-9

THREATS

(1) Highly advertised brands such as Britannia:

Parle faces the adverse competition from Britannia. Now-a-days Britannia have adopted
intensive advertisement such as through media to promote their products. This can result
in less attraction for the brand products of Parle.

(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. ITC Foods Ltd has expanded network and is
promoting its Sun feast biscuits across 1000 schools in the country. Britannia Tiger has
brand ambassador Rahul Dravid and Virender Sehwag who are doing heavy duty
endorsement on their personal equity line for the brand.

(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.
Due to this the Parle biscuits are facing competition. This can affect the performance of
the company.

(4) Emerging substitutes like wafers, snacks and toast:

Earlier it was just the biscuit which was available as snacks item. Now there are many
other products like wafers and toast. Thus company is facing threat due to the new
substitute products.

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VIVEK COLLEGE OF COMMERCE

(5) Margin war among the major Brands:

The following are some of the brands of Britannia and Parle which are pitched against
each other:

Category Britannia Parle Differentiation from Parle’s Point of


View
Glucose Tiger Parle –G Established brand associated with health
and low price.
Marie Marie Gold Parle Marie Introduced Parle Digestive Marie
biscuits, which have five times more fiber
than the regular Marie. It also offers
lower fat and calories than other digestive
biscuits.
Sweet Salty 50-50 Krack Jack These products at par with each other and
Snacks it modified its image as “ek hein bite
mein sweet bhi salty bhi.”
Bourbon Bourbon Hide and Bourbon is an established brand and is
Seek perceived as cream biscuit. Parle
introduced chocolate biscuits in form of
Hide and Seek endorsed by celebrity like
Hrithik Roshan
Sweet Biscuits Nice --------- It offers sweet biscuits in form of Parle-G
with glucose but does not offer product
based on hard sugar
Multi grain Nutri choice --------- Parle does not have any specific product
in this segment to counter Britannia’s
product. (serves as opportunity to Parle)

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VIVEK COLLEGE OF COMMERCE

CONCLUSION

I want to conclude my project by saying that marketing strategy is 4ps such as


product, promotion, price and place. These are all important aspects of marketing
strategy. Without these aspects marketing is not possible. Marketing strategy is all about
marketing a product .In these marketing mix sellers, retailers, buyers, and wholesalers
play an important role. There is lot of scope in marketing strategy. Parle company had
made huge profit by marketing there products in India and in foreign countries.

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.

The Parle Biscuit brands, such as, Parle-G, Monaco, Krackjack, Marie Choice,
Hide and Seek enjoy a strong imagery and appeal amongst consumers across the world.
Which has resulted into Parle-G being the “world’s largest selling biscuit".

The Parle name symbolizes quality, health and great taste. Constantly innovating
and catering to new tastes PARLE-G has built its reputation.

Parle Products Pvt Ltd. is now lagging in services to retailers because of improper
supply and distribution in some areas and competitors taking advantage of these points.
Parle Company should take into consideration the opportunities and threats as discussed
above. This will help the company to maintain its brand image for long time.

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VIVEK COLLEGE OF COMMERCE

BIBLIOGRAPHY

Websites:

www.wikipedia.com

www.parleproduct.com

www.britannia.com

www.sunfeastharabanao.com

Books referred:

Marketing Management - Philips Kotler

Marketing Mix and Human Resource Management – Michael Vaz

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