Post on 07-Apr-2018
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NAME:
DULI CHAND PAWECHA
NAHEED
BHAVYA
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Introduction
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. From
kids to adults, everyone loves and cherishes these treats.
It gives us great pleasure to see our consumers enjoy and embrace Parle products
on daily basis.
In 1929 a small company by the name of Parle products emerged in
British dominated India. The goal was to spread joy and cheer to children andadults alike, all over the country with its sweets and candies.
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A small factory was set up in the suburbs of Mumbai to manufacture confectionery
products.
A decade later this factory was upgraded to manufacture biscuits as well.
Since then, the Parle name has spread in all directions and has won international
fame.
A decade later this factory was upgraded to manufacture biscuits as well. Since then,
the Parle name has spread in all directions and has won international fame.
Parle has been sweetening the lives of people all over India and abroad. Apart from
the factories in Mumbai and Bangalore, Parle also has factories in Bahadurgarh,
Haryana and Neemrana, Rajasthan. These are the largest biscuit and confectioneryplants in the country. Additionally, Parle Products also has 10 manufacturing units and
75 manufacturing units on contract.
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History
In the 1950s the undivided Chauhan family manufactured beverages, water,confectionery, biscuits, etc. under its registered brand name Parle.
Over the years, the group split into three different companiesParle Agro, Parle Bisleri
and Parle Products. Currently, all three are separate companies with separate ownership and
management.
They also have different products manufactured under them. All three companies continue
to use the family trademark nameParle under which the current companies are named.
Parle Agro commenced operations in 1984. Starting with only beverages and diversifying
to include bottled water in 1993 and confectionery in 2007.
Frooti was the first product that was rolled out of Parle Agro in 1985. It went on tobecome Indias favourite mango drink. It still has a leading market share.
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BRANDS
Parle Agro Pvt. Ltd operates under three business verticals: Beverages fruit drinks,
nectars, 100% Juice, sparkling drinks Water Packaged Drinking Water Foods
confectionery, snacks
BEVERAGES
Frooti: Launched in 1985 as a mango drink, Frooti is the first beverage to be launched in
tetra packaging in India. Frooti is Indias favorite Mango drink and is ranked amongst themost trusted brands in numerous national surveys.
Apply Classic: Launched in 1986 as an apple nectar and originally available in a white tetra
pack with an apple and leaf graphic, today it comes in black tetra packaging. Appy remains
the first apple nectar to be launched in India.
Parle agro has the core business activity that is production in four different states such as
BHOPAL, CHENNAI, GAZYIABAD and PHATHALAGN and fifth to be established in
HYDRABAD.And parle agro has 12 franchises currently all over India .
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Frooti is available in 65ml and 200ml TetraPak, 250ml, 500ml, 1Ltr. and 1.5 Ltr. PET, and
200ml and 2Ltr PET (in select markets).
PRODUCT MIX:
Appy Classic is available in 200ml TetraPak
Appy Fizz is available in 300ml, 500ml and 1 Ltr. PET
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Quality control systems
The quality control systems at Parle are undertaken according to the standard operating
procedures under the aegis of the quality assurance manager.
In the bottle washer compartment the various parameters such as the gas volume,
dilution levels, sweetness levels and required temperature levels have to be monitored. Theentire monitoring system is automated and any discrepancies from the stipulations are
taken care of by alarms in place. Yet unforeseen contingencies have to be taken care of so
that adequate level of quality is maintained.
The taking over of the brands by Coca Cola India Ltd., has made Parle beverages plantto adopt methods guaranteeing precision in processes.
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In the beverage manufacturing process very stringent quality control systems are in
place. Starting from the characteristics of the water used proper quality control systems
are in place at Parle.
The sample of the ready syrup undergoes stiff tests - it is checked for proper dilution
levels, sweetness, flavor and color. Only the rigidly verified sample is further processed.
Manufacturing process Harvesting/collection
`Oranges are harvested from large groves. Some citrus growers are members of
cooperative packing and marketing associations, while others are independent growers.
When the mature fruit is ready to pick, a crew of pickers is sent in to pull the fruit off thetrees. The collected fruit is sent to packing centers where it is boxed for sale as whole
fruit, or sent to plants for juice processing. The oranges are generally shipped via truck to
juice extraction facilities, where they are unloaded by a gravity feed onto a conveyor belt
that transports the fruit to a storage bin.
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Cleaning/Grading
The fruit must be inspected and graded before it can be used. An inspector takes a 39.7 lb(18 kg) sample to analyze in order to make sure the fruit meets maturity requirements for
processing. The certified fruit is then transported along a conveyor belt where it is washed
with a detergent as it passes over roller brushes. This process removes debris and dirt and
reduces the number of microbes. The fruit is rinsed and dried. Graders remove bad fruit as it
passes over the rollers and the remaining quality pieces are automatically segregated by size
prior to extraction. Proper size is critical for the extraction process.
Extraction
Proper juice extraction is important to optimize the efficiency of the juice productionprocess as well as the quality of the finished drink.
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MARKETINGSTRATEGY FOR PARLE G
Cost leadership:
It is a cost leader in its industry except in cheese and glucose biscuits where it lags behind
Parle respectively. The company has undertaken modernization program in order to improve
productivity. To focus resources, rationalization of brands and packs has been undertaken and
the existing brands have been clustered into more cost efficient portfolio through a process of
brand concentration.
Economies of scale:
Parle G is adding capacity at regular intervals depending upon the economic environment
It has the advantage of being able to source raw materials and even packaging at cheap rates
because of large scale of operations.
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Parle G is a star BCG as shown below:-
SUPPLY CHAIN OF PARLESupply chain Describes a longer channel stretching from Raw materials to
components to final Products that are carried to final Buyers.
Parle G Supply Chain include Authorized wholesaler, Superstockists, RPDs, UPDsand Retailers. The Raw Materials are converted into finished goods in the Production
Units or Factories. From factories the finished goods are then sent to the Regional
Depots or the Mother Depots. From here the stock reaches the Warehouse for
distribution to the Authorized Wholesaler. From Warehouse or Depots the Stock either
reaches the Superstockists or the Authorized Wholesalers. From Superstockists the
stock goes to either UPDs (Universal Printer Driver) or RPDs (Radiation Protectiondosimetry) from where it finally reaches to the markets of Rural India. The Authorized
Wholesaler buy goods from Company and from them the Stock goes to the Retailers.
Retailers sell Company Products to the End Consumers
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The Sale of the Stock from Depots to Authorized Wholesaler constitutes Primary Sale while
the Sale of the Stock from Authorized Wholesaler to Wholesaler constitute Secondary Sale.
Different rural markets have different set of Superstockists (SS) which further have RPDs
(Rural preferred Dealers) and UPDs (Urban preferred Dealers) under them. These UPDs are
the dealers of very small regions only which are considered rural only and are not completely
urban.
Sales Promotion
Sales promotion, a key ingredient in marketing campaigns, consists of a diverse collection
of incentive tools, mostly short term, designed to stimulate quicker or greater purchase of
particular products or services by consumers or the trade."
In marketing, sales promotion is one of the four aspects of promotion. (The other three parts
of the promotional mix are advertising, personal selling, and publicity/public relations.) Sales
promotions are non-personal promotional efforts that are designed to have an immediate
impact on sales. Sales promotion is media and non-media marketing communications
employed for a pre-determined, limited time to increase consumer demand, stimulate market
demand or improve product availability. Examples include
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coupons
discounts and sales
contests point of purchase displays
rebates
free samples (in the case of food items)
gifts and incentive items
WEAKNESSES
The Company takes a lot of time in handling the UCA (Supply Chain Company) claims
of the authorized wholesalers; this !eads to demonization.
Warehousing norms are not followed, which accounts for high breakage .
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The semi-sweet category accounts for the maximum turnover in the mass market- the
Tiger Anytime being a member of this category is perceived as a tow quality product; this
may liquidate Parle G 's brand equity in the mass market.
Parle G has positioned it's Tiger range on health and taste, but my findings show that
health consciousness in the mass market is low, which means that the brand is under-
positioned, since the market doesn't consider "health1 as an important benefit in biscuits.
Parle G 's strength is in mid, premium mid super-premium category; this market is
approaching a saturation point .
Parle G 's mass market is not segmented properly; Parle G cannot afford to go all out in
the mass market, the best strategy would be to concentrate on these segments of the mass
market, which will account for volume sales and require minimum investment .
Performance-based incentive to motivate the sates staff is not existing in the Company .
Yearly incentives don't motivate the dealers of mass market brands.
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OPPORTUNITIES
Mass market is growing with established preference for biscuits.
Growing middle class in India can provide more opportunities for Parle G 's pillar
brands .
Credit given to dealers will help Parle G in expanding the width of reach, by which the
company will have a volume advantage.
Taste plays an important role in mass market which can take care of price sensitivity to
some extent .
There is low differentiation in the mass market brands .
There is a fairly good market for a high count salty cracker variety and a cream cracker
variety in the mass market.
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THREATS
De-reservation of the biscuit industry may attract foreign players who initially will try
to attack the premium segment, which is already established for Parle G.
A characteristic feature of premium market consumer is that this segment is not brand
loyal; therefore there is a chance of the consumers to shift to other brands in the
near/distant future .
Too much concentration in the mass market may affect the companies market in this
established segment .
Mass-market venture may account for this cannibalization .
A large number of competitors each having respective bold in different markets of the
company's pillar brands will account for high contribution.
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