Success Story of Parle Products

Nishant Singh Chauhan Roll No. 215111052

About Parle
Parle Products fame and familiarity is

undeniable. Considering its extensive reach, the brand Parle is known and recognized by everyone. Over the years, Parles sweets and biscuits have become a household name.
Today Parle is a multimillion $ company and is the

market leader in many categories of biscuits and confectionaries. It enjoys a 40% share of the total biscuit market and a 15% share of the total confectionary market

 Parle Products has been India's largest

manufacturer of biscuits and confectionery for almost 80 years.

Parle-G is the largest selling biscuit in the world. It has 70% market share in India in the glucose

biscuit category followed by Britannia, Tiger (1718%) and ITC's Sunfeast (8-9%).
The brand is estimated to be worth over Rs 2,000

crore .

Brief History
In 1929, a small company by the name of Parle

Products emerged in British dominated India. It set up a factory in a suburb of Mumbai to manufacture sweets and toffees. A decade later it was upgraded to manufacture biscuits as well. 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 quality.

Reasons behind Parles huge success, particularly Parle G

The extensive distribution network, built over the

years, is a major strength for Parle Products. Parle G biscuits are available to consumers, even in the most remote places and in the smallest of villages with a population of just 1500. Parle has nearly 1,500 wholesalers, catering to 4,25,000 retail outlets directly or indirectly. Factories at strategic locations & Establishment of manufacturing units in rural areas

 Pricing Strategy Parle G has adopted the Market Penetration

strategy i.e. low price along with capturing of a large market

Parle G is available in Re 1,Rs 2, Rs 4 to Rs

25 packet Profit margin for distributors is 4% and for retailers is 10-12%

Parle-G maintained its price of Rs.4.00 for

the last 16 yrs & has seen the variation in its sales due to increase in price by mere 50p.

 Massive advertising
In 1989 Parle-G released its Dadaji

commercial which was a huge success and was aired over a period of 6 years.
Parle G has started the use of celebrity in their

ads, Aamir Khar, Darsheel Safari, Vishvanathan Anand to name a few.

Sales promotion - Every year it holds day fairs

at branded venues where games and fun events are organized for the employees of Parle and their families; where Parle products are giveaway prizes.
In the year 1997, Parle-G sponsored the tele-

serial of the Indian superhero, Shaktimaan that

 Parle G as a Brand
The brand is associated with the positive

values of life like honesty, sharing and caring.

It is synonymous to energy & nutrition. It

has become a part of the daily lives of many Indians.

Be it a big city or a remote village of India,

the Parle G symbolizes quality, health and great taste.

 Weakness & Challenges

Dependence on retailers & grocery shops. Dependence on its flagship product Parle G Hike in cost of production due to hike in Raw

material cost Changing consumer preference Increasing distribution cost Local bakery products Entry of various new entrant, ITC etc & multinational companies..