Industrial Report on Parle Date : 26/02/2011

Presented bySheena Murpani

FY BMS - 38

LOCATIONS

Silvassa Patalganga Bhopal Chennai Ghaziabad Hyderabad

Parle has its factories located in :

First factory – Mumbai (Vile parle) Second factory – Mumbai (Irla) Third factory - Bangalore Next – Rudrapur (Uttaranchal)

History Of Parle• A cream colored yellow stripped wrapper with a cute baby photo containing 10 – 12

biscuits with the company’s name printed in Red and you know these are Parle G biscuits.

• Times changed, variety of biscuits did come and go but nothing has changed with these biscuits.

• Yes, the size of their packing has definitely changed but for the consumers good as these are money savers pack.

• 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 & sweets.Initially 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 quality.

• For around 75 years, Parle have been manufacturing quality biscuits and confectionery products.

History Of Parle• Over the years Parle has grown to become a multi million-dollar company with many

of the products as market leaders in their category.• The recent introduction of Hide & Seek chocolate chip biscuits is a product of

innovation and caters to a new taste, being India’s first ever chocolate-chip biscuits.• All Parle products are manufactured under most hygienic conditions. • Greatcare is exercised in the selection and quality control of raw material and

standardsensured at every stage of the manufacturing process. • Parle Products has 4 manufacturing units for biscuits and confectionaries at Mumbai,

Haryana, Rajasthan and Karnataka. • It also has 14 manufacturing units for biscuits & 5 manufacturing units for

confectioneries, on contract.• All these factories are located at strategic locations, so as to ensure a constant

output & easy distribution.• Today, Parle enjoys a 40% share of the total biscuit market and a 15% share of the

total confectionary market, in India.• The marketing mix of Parle for this project has been studied from the point ofview of

Parle biscuits; mainly Parle-G and Parle hide & seek.• In 1929, while India was under British rule, a small company by the name of Parle

Products emerged under the ownership of Mr.Vijay Chauhan.

History Of Parle• A small factory was set up in Vile Parle (east) the suburb of Mumbai to manufacture

sweets and toffees(e.g. Melody,kachaa mango bite etc).• A decade later it was upgraded to manufacture biscuits as well.• 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 and adults alike, all over the country

with its sweets and candies.• 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.• 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 confectionery plants in the country.• Additionally, Parle Products also has 10 manufacturing units and 75 manufacturing units

on contract.• As part of the efforts towards a larger share of global market,• Parle has initiated the process of getting ISO 9000 certification.• The Parle name symbolizes quality,health & great taste.• Today , the parle brands have found their way into hearts and homes of people all over

the India n abroad , which has resulted in Parle-g being the “Worlds largest selling biscuit”

Introduction

Parle – GMonacoMango BiteMarie ChoiceMelodyKrack JackHide-n-seek20-20Digestive MarieGol gappaOrange Candy

KreamsXhaleKismiMay fairSmart chipsMusst BitesMilk ShaktiCheese LingsMazeloPoppins

Parle Products has been India’s largest manufacturer of biscuits and confectionery for almost 80 years. Makers of the worlds 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. The Total production at Uttaranchal is 250 metric tonnes.Parle has a total of 1500 wholesalers who sell the products to 425000 retail outlet , Such is its Marketing Network.Some of the very well known artists of the film industry are its brand ambassadors-: Ravi Kishan , Hrithik Roshan , Aamir Khan , Geneila D’souza and so on.Products of Parle :

Biscuits Snacks Confectionaries

Milk Shakti Sixer Jeffs

Magix (Choco+Cahsew) Musst bytes (Tangy+Tomato) Melody

Krackjack Poppins

Monaco Mango byte

Marie choice Kismi toffee bar

Hide and seek Rol -a -cola

bourbon Orange Candy

Digestive Marie Chox

Parle cream- mango, orange, elaichi, pineapple

Fun centre(chocolate, butterscotch, strawberry, milk cream Nimkin)

Krackjack cream

PRODUCT LIST

DETAILS OF A FEW PARLE PRODUCTS

Monaco Bites Cheeselings : Wheat flour, edible vegetable oil, cheese, partially

hydrogenated edible vegetable oils, sugar, salt, gram flour, potato flour, yeast, leavening agents [503(ii),500(ii),341(I)], invert syrup, spices,condiments,acid regulators [270, 296], emulsifiers [322 or 471 & 481 (I)], dough conditioners [223], improver [amylases and other enzymes] and antioxidants [319 & 320]. Contains added flavour (artificial ).

Orange Candy : Small. Oval. Orange. We've kept it simple with the Parle

Orange candy. And for over 50 years this deceptively simple candy has kept the taste buds of the entire nation in a flurry. The first product to be launched from the House of Parle.

Mango bite : Sugar, Liquid Glucose, Acidulant, Mango Solids, Edible

Vegetable Oils, Edible Starch, Permitted Flavours and Colours.

Kismi toffee : Sugar, Liquid Glucose, Partially Hydrogenated Edible

Vegetable Oils, Milk Solids, Starch, Salt and Emulsifier (322 ) Contains Added Flavour .

DETAILS OF A FEW PARLE PRODUCTS Musst Bites :

Wheat Flour, Edible Vegetable Oil, Cheese, Partially Hydrogenated Edible Vegetable Oils, Seasoning, Sugar, Salt, Gram Flour, Potato Flour, Yeast, Leavening Agents [ 503 ( ii ), 500 ( ii ), 341 ( i ) ], Invert Syrup, Spices & Condiments, Acid Regulators [ 270, 296 ], Emulsifiers [ 322 or 471 & 481( i ) ],Dough Conditioners ( 223 ), Improver [ Amylases & Other Enzymes ] and Antioxidants [ 319 & 320 ].Contains Added Flavour ( Artificial ).

Krackjack Biscuits : Wheat Flour, Sugar, Edible Vegetable Oil, Partially Hydrogenated Edible Vegetable Oils, Leavening Agents [ 503 ( ii ), 500 ( ii ), 341 ( i ) ], Invert Syrup, Salt, Yeast, Emulsifiers [ 322 or 471 & E 481 ( i ) ], Acid Regulators [ 270, 296 ], Milk Solids, Dough Conditioners [ 223 ] and Improver [ Amylases & other Enzymes]. Contains Added Flavours (Artificial).

Parle - G : Wheat Flour, Sugar, Partially Hydrogenated Edible Vegetable Oils, Invert Syrup*, Leavening Agents [ 503 ( ii ), 500 ( ii ) ], Salt, Milk Solids, Emulsifiers [ 322 or 471 & 481 ( i ) ] and Dough Conditioners [ 223 ]. Contains Added Flavours (Artificial).* (d - Glucose, Levulose)

Introduction Stage Of Parle

Growth Stage of Parle

SWOTAnalysis

PILLARS OF SUCCESS Available Anywhere

Today, the great strength of Parle Products is the extremely widespread distribution network. Even at the remotest places, you can buy Parle biscuits and sweets from the local grocer. It has taken years to create this extensive network. Parle’s sales force started with one salesman in Bombay and some agents in few other cities. Gradually, Parle Products expanded. Soon sweets and biscuits were being sent by rail to Calcutta, Delhi, Karachi, Madras and other major cities. As production increased, distribution was amplified. Full time salesmen were appointed in different areas. Currently, Parle Products has over 33, 00,000 distribution outlets.

QualityHygiene is presursor to every process at Parle.From husking the wheat and melting the sugar to delivering the final products to supermarkets and store shelves nationwide , care is taken at every step to ensure the best product of long-lasting freshness.Every batch of biscuits and confectioneries are thoroughly checked by expert staff,using the most modern equipment hence ensuring the same perfect quality across the nation and abroad.

Mass ProductionParle produces goods is large quantitieswhich leads to cost cutting which is economical.

TasteParle does not compromise on the taste of its products and maintains consistency in its taste.

Product strategy Product Levels

1) Core benefit- the core benefit of biscuits is to satisfy hunger of the consumer2) Basic product- in the second level, the basic product is biscuits.3) Expected product- the consumers expect the product to have a good taste and also give nutrition.4) Augmented product- parle biscuits increase a person’s energy levels. This is not always expected by the consumers and hence exceeds customer’s expectations.5) Potential product- in the future parle could come up with different products such as a snack which could be a combo of chocolate and biscuit.

Classification of products1) Based on tangibility- Parle biscuits are tangible, i.e. one can see and touch them.2) Based on functional life- Parle biscuits are consumables since biscuits form a part of food and have a short life.3) Based on price and quality- most of Parle biscuits such as Parle-G, Monaco, Krackjack are mass products but a few Parle biscuits such as Parle hide and seek and Milano are premium or prestige products.4) Based on utility- Parle biscuits are convenience goods. They are staples since they are bought by consumers regularly. Also they are partly impulse products.Width- Parle produces biscuits, snacks and confectionaries. So the width is 3.Length- the length of Parle products is as below:For Parle-G:Parle-G comes in 8 different sizes: 25gms, 44gms, 93.5gms, 231gms, 340.5gms, 462gms, 577.5gms and 1000gms. Hence the depth of parle-G is 8.- For variants of Parle-G:Parle-G magix has 2 flavors- choco and cashew and comes only in one size i.e. 75gms. Hence its depth is 2. Parle milk shakti has no favors and comes in just one size i.e. 150gms.So the depth of Parle-G is 8+2+1= 11For Parle hide & seek and Milano: Parle hide & seek comes in 2 sizes- 25gms and 100gms. Hence its depth is 2. Parle hide & seek Milano has no flavors and comes only in one size i.e. 100gms. So the depth of Parle hide & seek is 2+1= 3

Brand name strategyParle follows company brand name strategy, since all its products are named using the company’s name as a prefix such as Parle-G, Parle- Monaco, Parle hide & seek, Parle digestive Marie, etc.

Product strategy Consistency

The product consistency generally depends on 3 parameters1. Production2. Distribution3. Consumer end-useThe production process of every parle biscuit follows some basicingredients like wheat flour, vegetable oil, inverted syrups, skimmed milkpowder, etc. then depending upon the product, extra ingredients areadded for e.g. in Monaco there might be an extra amount of salt put in togive it that prominent salt taste, tohide & seek, chocolate chips areadded. Etc.Parle uses the same distribution channels for selling all its productsunder the biscuit category i.e. 1st, 2nd & the 3rd level of the distributionchannels.The basic end use of all parle products remains the same – eating itsimply to satisfy hunger. Products like parle-g may also be consumed forthe intake of high glucose levels for immediate strength & energy.

BrandThe Parle Biscuit brands, such as, Parle-G, Monaco and Krackjack enjoy astrong imagery and appeal amongst consumers. Be it a big city or a remotevillage of India, the Parle name symbolizes quality, health and great taste. Andyet, this reputation has been built, by constantly innovating and catering to newtastes. This can be seen by the success of new brands, such as, Hide & Seek andHide & Seek Milano.

History of PARLE - G

• Parle-G or Parle Glucose biscuits, manufactured by Parle Products Pvt Ltd, are one of the most popular biscuits in India. Parle-G is one of the oldest brand names as well as the largest selling brand of biscuits in India. For decades, the product was instantly recognized by its iconic white and yellow wax paper wrapper with the depiction of a young girl on the front. Counterfeit companies have attempted to recreate and sell lower quality products of similar names with virtually identical package design.

• The company's slogan is G means Genius. The name, "Parle-G", is derived from the name of the suburban rail station, Vile Parle which in turn is based on village Parle in olden days (there is also area called Irla nearby where the Parle Agro production factory is based).

• This popular biscuit is primarily eaten as a tea-time snack.• 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 (17-18%) and ITC's Sunfeast (8-9%). The brand is estimated to be worth over Rs 2,000 crore (Rs 20 billion), and contributes more than 50 per cent of the company's turnover (Parle Products is an unlisted company and its executives are not comfortable disclosing exact numbers).

• Last fiscal, Parle had sales of Rs 3,500 crore (Rs 35 billion). It also is popular across the world and is starting to sell in Western Europe and USA

Process of biscuit production

• Raw MaterialsThe necessary ingredients wheat,sugar syrup etc

• MixingAll the raw materials should be properly mixed in proper proportions so that the taste is consistent as it is produced is largequantities.

• MouldingThis process is used in manufacturing to shape materials

• Bakingis the technique of prolonged cooking of food by dry heat acting byconvection, and not by radiation, normally in an oven, but also in hot ashes, or on hot stones.

• CoolingIn the process of baking the biscuits are heated and are required to be cooled to be shaped.

• PackagingPackaging is the science, art and technology of enclosing or protecting products for distribution, storage, sale, and use. Packaging also refers to the process of design, evaluation, and production of packages. Packaging can be described as a coordinated system of preparing goods for transport, warehousing, logistics, sale, and end use. Packaging contains , protects , preserves ,transports ,informs and sells.

Process of biscuit Production

Price Strategy• 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 & seek biscuit, a survey was taken in the urban & semi-urban markets; on the basis of which hide & 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 & other processing cost. All these show customer status, which is also one of the reasons for parle hide & 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 butat Rs.5 per packet of biscuit and not Rs.10 like that of Britannia’s cream treats. The extensive distribution network, built over the years, is a major strength for Parle Products. Parle biscuits & 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 & retailers. Additionally, there are 31 depots and C&F agents supplying goods to the wide distribution network. So it is seen that Parle has 1 level, 2 level & 3 level distribution channels levels.

• Level 1 - availability to all departmental stores.• Level 2 – Since it’s an FMCG product this channel exists for customers scattered throughout the country.• Level 3 – Mass consumption & suitable for national & international coverage. For• e.g. Parle’s international operations consist of serving markets in the Middle East,

Africa, South America, Sri Lanka, Australia and North America for which the 3 leveldistribution channel exists.Parle has a multi-channel marketing system since it uses more than two marketing channelsto reach all its customer segments.The marketing mix tools used by Parle are Advertising, Sales promotion and Public relations.

ConclusionParle G is affordable in all the countries we

surveyed. It was not out of the price range for an afternoon snack.

Parle G comes in a variety of sizes worldwide so you can use it for a crowd or as a personal snack.

It is India’s largest selling biscuit and is consumed by people pf all ages