FMCG

PARLE
PARLE G

AGENDA
FMCG
PARLE
PARLE G
RECENT LAUNCHES OF PARLE
VISIT TO THE COMPANY PARLE
What is FMCG
Fast-Moving Consumer Goods (FMCG) or Consumer
Packaged Goods (CPG) are products that are sold
quickly and at relatively low cost

Indias FMCG sector is 4th largest Sector in the
economy

FMCG Industry is characterized by a well
established distribution network, low penetration
levels, low operating cost, lower per capital
consumption and intense competition

They spent 10% of their revenues on advertising

Growth Prospects
Large Market
India has a population of 1.150 billion which is
just behind china
According to estimate, by 2030 india population
will be around 1.1450 billion and will surpass
china to become the world largest in terms of
population
FMCG industry which is directly related to the
population is expected to maintain a robust
growth rate

Strong growth in FMCG sector
FMCG sector generated revenues worth USD
36.8 Billion in 2012, a 5.7% rise compared to the
previous year

The strong growth in 2012 should come as no
surprise given the impressive performance of the
sector over the year

Over 2006-12 the sector revenue posted a CAGR
of 15.2%
Segments

Future of FMCG
Large Market:-India has a population of more
than 1.150 Billions which is just behind China

According to the estimates, by 2030 India
population will be around 1.450 Billion and will
surpass China to become the World largest in
terms of population

FMCG Industry which is directly related to the
population is expected to maintain a robust
growth rate.
Challenges for FMCG Sector
Rapid new product innovation
Integration of various data sources
Evaluation of various scenarios
Improving sales and marketing effectiveness
Notable Trends in FMCG
Focus on Rural Market
Product Innovation
Brand Consciousness
Expanding Distribution Network
Rising importance of smaller-sized packs
Focus on enhancing presence in Africa
Reducing carbon footprint and eco-friendly
products
TOP 3 FMCG COMPANIES
Recent News for FMCG
FMCG has reported 13% increase in second quarter
net profit at Rs 914 crore
The company registered 5% growth in volume and
managed to deliver good results despite pressure
on margins in FMCG sector
Lot of Investment expected from beverage giants

COMPANY SELECTED
CORE VALUES

An in-depth understanding of the Indian consumer
psyche has helped Parle develop a marketing
philosophy that reflects the needs of the Indian
masses

products created bearing in mind both health and
taste

Hygiene is the precursor to every process at Parle

Care is taken at every step to ensure the best
product of long-lasting freshness
OVERVIEW
Parle has been India's largest manufacturer
of biscuits for almost 80 years
Reach spanning even to the remotest villages
of India, the company has come a long way
since its inception
Currently, Parle Products has over 33, 00,000
distribution outlets
14 manufacturing units for biscuits and 5
units for confectioneries

Brands
Parle
Krackjack
Monaco
Monaco Funion
Kreams
Hide and Seek
Hide and Seek
Milano
Bourbon
Parle Marie
Parle 20-20
Cookies
Nimkin
Comparison of Biscuit Brands
SWOT Analysis
Sales and Turnover
Last year Parle products sold Rs 5010 crore
worth of its biscuits at retail price
This meant sales of more than 100 crore
packets across sizes every month or 14600
crore biscuits in entire year
Annual Turnover is 5000 crores


Marketing Strategies
75 85% of budget spent on advertising

Television and Print Media
Dedicated facebook page for Parle G, also running
genius campaign
Futuregeneius.com website - child psychology expert
Jeevan D Cunha
Company has initiated Genius and Bond with Ruskin
campaigns
Promotion of other brands Hide & seek, poppins and
krackJack
Advertisement In Rural Market
Television
Radio Commercials
Wall Paintings
Banners
Shop displays
Newspaper
Accepting Industrial visits for Students
Parle v/s Britannia
Battle for market share continues
Parle products play the low price game at all
varieties of biscuits from glucose to cream
Parle plays a high volume, low margin game, But
Britannia look at a two-pronged strategy
Britannia dominated the premium segment of
biscuits and parle dominated the mass ,low
premium biscuits
Contd
Description Parle Britannia
Established 1929 1826
Nature of business Family run business Public ltd
No of manufacturing
units
8 own units ,60 CMU 5 own ,40CMU
Market share ( value) 68.73% 32.8%
Ads Major methods Celebrities endorsement Cricket events and
players
New areas of promotion
Health and wellness Environment
IMPORTANT BRANDS PITCHED AGAINST EACH
OTHER
Category Britannia Parle Leader
Glucose
Tiger Parle -G Parle-G

Marie Gold
Parle Marie Marie Gold Marie Gold
Salty snacks 50-50 Krack Jack
Krack Jack

Choco chips Good day Hide n seek Good day
Milk Milk bikis Milk sakhti Milk bikis
Bourbon Bourbon Hide n Seek Bourbon
Nice Nice ------ Britannia Nice
Multi grain Nutri choice ----- Nutri choice
Cream Cream Treat Kreams Cream treats
Cookie Good day 20-20 Good day
RECOMMENDATIONS
Parle has to take on traditional snack giants
such as Haldiram, which controls over 45 per
cent share of the market
Balaji which has a close to 19 per cent share
Distribution of Advertising Expenditure
Brand Chosen
Parle G
Parle G has strong household name across India
Great taste, high nutrition and international quality
makes Parle G a winner
Undisputed leader in biscuit category for decades
Consumed by people of all ages
It is Mass production, Mass distribution and Mass
promotion for all buyers
Profit Margin for distributors is 4% and for retailers
is 10-12%



Few Facts
Quality Conscious
Cost Leadership
Economies of Scale
Its a Star in BCG Matrix
One of the Largest Manufacturing Unit
They work on Reduced wastage
Avoid sophisticated packing
100g pack costing Rs 4 has net weight of 93.5g
Parle - G is the winner of 8 Gold and 11 Silver awards at
the Monde Selection Awards



Business Strategy

An in-depth understanding of the Indian consumer
psyche has helped Parle evolve a marketing
philosophy that reflects the needs of the Indian
masses

With products designed keeping both health and
taste in mind, Parle appeals to both health conscious
mothers and fun loving kids

Intensive Distribution
Marketing Strategy
Sales Promotion
Promotional tools Samples, coupons,
rebates
Promotion in rural market
Associate with various Government initiative
like, Primary Education scheme, NRHM
centers , Mid-day meals being serve in
primary school

Parle G on Product Life
Cycle
4 Ps of Parle G
Product
Parle G Product
Associated with positive values
Emotional Connect
Consistency of product
Earned as renowned brand

Place
Extensive distribution network
1500 wholesalers catering to 425000
retail outlets
Factories at strategic locations

Promotion
Speaks about energy and nutrition
Started the use of celebrity in
advertisements
Public Relations
Sales promotion
Price
Market penetration strategy
Value pricing
Profit margin for distributors
is 4% and retailers 10 12%
SWOT ANALYSIS
STRENGTH
Brand Value
Diversified Products
Distribution Network
Low price compared to competitors
Experienced sales and marketing executives
Better Understanding of consumer psyche

WEAKNESS
Poor Packaging
Supply Chain Issues - Dependence on retailers &
grocery Stores
Not segmented properly
Perishable Products


OPPORTUNITIES
Diet Biscuit
Changing consumer preferences
Better Packaging
Retaining loyal Retailers and wholesalers
Estimated annual growth of 20%
Increasing demand for sugar free

THREATS
Hike in cost of production
Increasing distribution cost
Local Bakery products
Entry of new Entrants
Britannia capturing market slowly (eg-
tiger biscuit )
Parle G
STP Analysis
Segmentation
People looking to
have biscuits
anytime
All Age groups
Male and Female
All Income
Groups
Targeting
All age groups
Lower, middle
and upper class
people
Upper Class with
the Launch of
Premium Biscuits
Positioning
For children who
are genius in
every field
Value for money
Worlds Largest
Selling Biscuit
Market Share of Parle G
Parle Gs SUCCESS MILESTONES

RURAL MARKET OF PARLE-G
Parle G is concentrating heavily on
rural marketing to have high
growth rate in rural areas

Rural market penetration is 50
65%

Parle G market reach very high
due to distribution network
Consumer psyche: Recognize Not
as Parle G but as .. biscuit ka
puda



Challenges
Increasing prices of basic raw materials
This leads to increase in manufacturing cost
of biscuits
Parle G is very price sensitive product
Small increase in price in past has seen high
decline in sales
Serious competition from brands like Tiger by
Britannia
NEW LAUNCHES OF PARLE
Parle - G Gold
Parle re-
enters in cola
market
Two decades after it hived
off its carbonated soft
drinks portfolio, Parle Agro
announced its re-entry
into the Rs 15,000-
crore cola market early
next year with the launch
Cafe Cuba, a coffee-
flavoured carbonated
drink


Tea time crunch
Parle Products has launched Rusk
They are flavored with cardamom A pack of 200
gm is priced Rs.25
Available across India
The packaging has a contemporary look, giving
look, giving it a distinctive and a
attractive place on every shelf

Happy Happy Cream Biscuits
Parle Products launches
Happy Happy Cream Biscuits in
60g & 120g packs

The latest variant in its
Happy series (after Parle
Happy Happy Choco Cookies)

The sandwich biscuit segment
has not seen any significant
launch recently, thus making it
a good time to introduce Parle
Happy Happy Cream Biscuit
VISIT TO PARLE COMPANY

Discussion on The strategy behind lowing the
price of Parle G from Rs 5 to Rs 4





CONCLUSION
Largest Selling brand
Knows the trick of tapping
Customers
Healthy Ingredients
Consumed by all age groups
Good distribution channels
Excellent Marketing and
Promotions Strategy