PRODUCT LIFE CYCLE PARLE-G

Nitish
Dilpreet Shweta

Jyotsana
Avnit Rohit Aditya

PRODUCT LIFE CYCLE PARLE G

Points:
Introduction
History & Product range Basics of PLC

Application of PLC concept to PARLE G

Introduction Phase of PARLE-G Growth Phase of PARLE-G (Turnover,Finance Details,Competition & Challenges.) Conclusion

Inroduction PARLE G
Largest Selling Brand in world. Identified with baby on pack,

affectionately called as Parle-G baby Winner of 8 gold and 11 silver monde selection awards Liked by all age and income groups 40% share of biscuit market and a 15% share of confectionary

HIDUSTAN KI TAKAT - PARLE G

Largest manufacturer of biscuits since 80 years Quality, nutrition and great taste. More than 1500 Wholesalers an 1.3 Million retail outlets Faith and trust Example of marketing brilliance for Competitors 65 % of Glucose Biscuit market.

Product Range
Biscuits
Parle G Milk Shakti

Parle - Magix
Krackjack Monaco Digestive Marie Hide & Sick Mayfair Cookies

Confectionary Melody Mango bite Poppins Kismi Toffee Orange Candy Must Bites Sixer

Product Life-Cycle Strategies

PLC Stages Begins when the
Product development Introduction Growth Maturity Decline

company develops a new-product idea

Sales are zero

Investment costs are high Profits are negative

PLC - Introduction
Low sales
High cost per customer acquired

basic product
Use cost-plus basis Selective

Negative profits
Innovators are targeted

Little competition

distribution Awareness among early adopters Heavy expenditures

PLC Growth Stage

Rapidly rising sales
Average cost per customer

Product Extensions
Penetration Pricing Intensive Distribut.

Rising profits
Early adopters are targeted

Build Awareness
Advertising is high Reduce expenditure on sales

Growing Competition

PLC Maturity Stage

Sales peak
Low cost per customer

Diversify brand and models

Price match to beat

High profits
Middle majority are targeted

Competition begins to decline

competition Intensive distribution Encourage brand switching

PLC Decline Stage

Declining sales
Low cost per customer

Declining profits
Laggards are targeted

Declining competition

Phase out weak items Cut price Selective distribution Phase out unprofitable outlets Reduce to level Reduce to minimal level

Introduction Phase - Parle

Founded in 1929 as a Confectionary Comp
Decade later Introduced Biscuits Imported Biscuits shipped by British Introduced better glucose biscuits Initially sold only in Suburbs of Mumbai

Wax wrappers for packaging

Growth phase PARLE

16 7

% Market Share
40

Total Market 4000

Parle Britania ITC Others

37
Total Market(Crores)

1420 280 640 1600

Parle Britania ITC Others

Crores Total Market Growth 10 to 12 % per annum Parle holds 40% Market share Large unorganized sector Indians eat 0.48 KG and Americans 4kg Biscuits Growth phase
*Source ORG-MARG

Growth Phase - Parle Cont.

Glucose Market

Parle-G Largest brand

7 Parle 28 65 Britania others

Turn over %
15% Parle G Other Bis. Confec.

50% 35%

in world 65 % of Glucose Market 50 % to Turnover Large consumption in rural market 12 to 15 % Growth Low Margin High Volume
*Source ORG - MARG

Growth Phase - Parle cont.

Increase In Retailoutlets
1500000 1000000 500000 0 2001 2007

Product Parle G, Milk Shakti

Retail Outlet

S % L H Marie, Monaco , Krack Jack M M

Hide n Seek ,Cheeslings H L

High Penetration in Market low price ,low margin and high volume game Brand Repositioning Addition of taste Variants (Magix ,Milk shakti) Addition of weight variants (25 gm to 1kg)
*Source ORG-MARG

Growth Phase Competition

Glucose (L) Parle Parle G Britania Tiger ITC Sunfeast.gl. Surya Priya Snacs Marie(M) Marie Dig. Marie Gold Sunfeast M Priya Gold Cream(H) Hide & Sick Good Day Butter Cream Badam pista

Parle G market leader in Glucose sector Britania leader in terms of value & in Mid & High Sec ITC fastest growing brand (7 %) Others: Priya gold, Bakeman, Nesle and Kwality.
*Source ORG-MARG

Growth Phase Challenges

Retailoutlets (Millions)
1.8

Increased penetration

3.3

1.3

Parle Britania ITC

Advertising
2000 1000 0 Parl ITC
Turnover Advert.

level from comp. Increased Advert. Variants and new Innovative products High segment variants Celebrity Brand ambassadors

*AC Nielsen retail sales audit

Conclusion
PLC analysis very IMP tool in the hands of marketer. Better understanding in managing profitable products & eliminating unprofitable one. As products moves from one stage to another in PLC- Marketer evaluate and adjust strategies for promoting ,pricing & distribution of the product.

Bibliography
www.parleproducts.com
www.indiainfoline.com

www.managementparadise.com
Wikipedia

Parle products-(Brand Manager-MrMayank. )

Marketing Management-Philip Kotler