MARKETING MIX AND SWOT ANALYSIS OF PARLE COMPANY IN BISCUIT SECTOR

CHAPTER -1

INTRODUCTION

1.1 INTRODUCTION OF THE COMPANY

Parle Products has been India's largest manufacturer of biscuits and confectionery,

for almost 80 years. Makers of the world's 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.

Many of the Parle products - biscuits or confectioneries, are market leaders in

their category and have won acclaim at the Monde Selection, since 1971. With a 40%

share of the total biscuit market and a 15% share of the total confectionary market in

India, Parle has grown to become a multi-million dollar company. While to consumers

it's a beacon of faith and trust, competitors look upon Parle as an example of marketing

brilliance.

Over the decades the efforts of their Research and Development wing have made

the repertoire of their products grow manifold. In biscuits they have Glucose, Milk, sweet

and salted, cream, Digestive, cumin seed and cheese categories. In confectionery, they

have a range of toffees and hard-boiled candies available in chocolate, mint, cola, and

tropical fruit flavors. Some of these are double layered toffees and center filled candies

packed in rolls or pillow packs, or have single or double twist wrapping.

Parle Products Ltd, the findings of a recent study conducted by ACNielsen

afforded the perfect opportunity to set up an interface with Indian consumers and speak to

them about the popularity of flagship glucose biscuit brand, Parle-G. An opportunity that

Parle Products and Everest Integrated Communications - the agency handling the Parle-G

account - grabbed with both hands. The result? A five-commercial ‘testimonial' campaign

that underlines the findings of the ACNielsen study: that Parle-G has emerged as the

world's largest-selling biscuit brand.

MARKETING MIX AND SWOT ANALYSIS OF PARLE COMPANY IN BISCUIT SECTOR Page 1

Every nation dreams of a better tomorrow. And every nation’s tomorrow lies in

the hands of its children; children who make the nation proud in every aspect; the young

geniuses who shape the future of the nation. So it’s important to nourish these young

minds, for after all it’s a question of the nation’s future. Filled with the goodness of milk

and wheat, Parle G is a source of strength for both body and mind. Treat yourself to a

packet of Parle-G to experience what has nurtured and strengthened the minds of millions

of genius Indians for over 65 years. It’s more than just a biscuit. A meal substitute for

some, a tasty and healthy snack for many others. Consumed by some for the value it

offers, and many others for its taste.

The automatic biscuit production line, with original design, compact structure

and high automation, is developed on the base of adsorbing Japanese technology. All

working procedures that from feeding, calendaring, sharping, wastage recovering, drying

to cooking can be accomplished automatically. Hundred of moulds and dozens of

technology formulas make it possible to produce various kinds of popular biscuit such

as cream biscuit, sandwich biscuit, calcium biscuit, chocolate biscuit, soda biscuit, multi-

vitamin biscuit, vegetable biscuit, etc.

The Parle brands have been constantly honored internationally with the awards at

the Monde Selection.

Very rightly described as “SWAD SE BHARA, SWASTHYA SE BHARA”

means full with taste, full with health “.


1.2 HISTORY OF PARLE COMPANY

In 1929 a small company by the name of Parle products emerged in British

dominated India. The intent was to spread joy and cheer to children and adults alike, all

over the country with its sweets and candies. The company knew that it wouldn’t be an

easy task, but they decided to take the brave step. A small factory was set up in the

suburbs of Mumbai, to manufacture sweets and toffees. A decade later it was upgraded to

manufacture biscuits as well. Since then, the Parle name has grown in all directions, won

international fame and has been sweetening people's lives all over India and abroad.

Apart from the factories in Mumbai and Bangalore Parle also has factories in

Bahadurgarh in Haryana and Neemrana in Rajasthan, which are the largest biscuit and

confectionery plants in the country. Additionally, Parle Products also has 7

manufacturing units and 51 manufacturing units on contract.

A long time ago, when the British ruled India, 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 quantity.


1.3 MISSION AND VISION

MISSION:

“We will be the leaders in our business by- maintaining high quality, introducing new

and innovative products, reaching every part of India, remaining customer-centric,

constantly upgrading our knowledge and skills.”

VISION:

“To be the leaders in our business. We will stand apart from the competition by being

the first in the market to innovate.”

1.4 BOARD OF DIRECTORS OF PARLE COMPANY

Designation Name

Chairman and Managing director Dheeraj Kumar

Executive Director Zuby Kochar

Executive Director Devendra Dass Kochar

Non Executive Director M R Sivaraman

Non Executive Director Shiv S Sharma

Non Executive Director T K Choudhary


1.5 BRAND STORY OF PARLE G

In the hit Bollywood movie Welcome, actor Nana Patekar, in a passing reference

to Parle-G, notes that even biscuits command respect and have to be addressed with a ji

(a term of respect in Hindi). His remark, while made in jest, is not far off the mark.

“It is a heritage brand. We sell over 25 crore packets every month. That should reflect the

stature of the brand,” says Praveen Kulkarni, marketing head at Parle Products Pvt. Ltd.

Parle’s mantra has always been about repositioning the brand without tweaking

the look and feel of the product. “The brand is clearly an Indian brand and it straddles all

economic strata. The fact that it is a staple for everyone in the house keeps it going,” says

Nirvik Singh, chairman and president, Grey Global Group, South and South-East Asia,

the agency that handles the Parle-G account.

There was a time when Parle-G’s dominance was threatened by rival brands,

especially the Tiger brand from Britannia. “We found out that Tiger was getting stronger

in the kids segment, and we decided to change our positioning,” says Kulkarni.

Later, when the company sponsored the television show Shaktimaan on

Doordarshan, it literally rescued Parle-G. The brand also had some innovative

commercials involving young children with a new punchline, G means Genius, which

was an instant hit.

While rivals have signed on celebrities, Parle-G has managed to retain its

leadership position with just a simple white-and-yellow striped wrapper with a picture of

a baby on it. “We don’t need celebrities as the brand equity is so strong,” says Kulkarni.

“The biggest concern is that the brand shouldn’t become outdated as it is a historic brand.

The brand has managed to retain its leadership position because it has evolved its

campaign with every consumption trend,” says Singh. “


1.6 COMPETITORS OF PARLE COMPANY

70%

18%

9%3%

PARLEBRITANNIAITCOTHERS

It's a story that has been repeated any number of times in the corporate world: an

unchallenged market leader rests on its oars; competition emerges out of the woodwork;

and almost at the blink of an eyelid, swamps the champion from all sides. That's precisely

what's happening to the Rs 1,587.5-crore Britannia Industries. To be fair to the company,

it is still holding on to its market leader status, but only very tenuously. Over the last

couple of years, Britannia, which was once considered a generic name for biscuits, has

seen its share of the Rs 4,500-crore per annum market fall from 48 per cent to 40 per

cent.

Britannia's loosening grip on the market has allowed challenger Parle to come

within striking distance of its crown (Parle, in fact, is the market leader by volume, but

still trails Britannia marginally in value terms); and given smaller players like Bisk Farm,

Priya Gold, Anmol, Marico and Duke space to carve out regional satrapies all over the

country. The year 2003 marked the inflexion point for the biscuits industry. That was

when ITC entered the market with its Sun feast brand and grabbed an 8-10 per cent

market share, Parle increased its market share from 34 per cent in 2003 to 38 per cent

now and regional brands and the unorganized sector together wrested about 10 per cent.

All this while, the market grew at a rate of 10 per cent per annum even as the market

leader's share dwindled. Britannia brushes aside any suggestion that its position is under


siege. "We believe that more activity in the biscuits market creates more opportunities for

us, and we are very well placed to tap it.

Britannia leads the overall market in terms of value and, in fact, our brands lead in

six of the eight market segments," says Vinita Bali, CEO of the company. Meanwhile, the

challengers are using different strategies to consolidate their positions.

For Parle, it's price. "The market for biscuits is extremely price-sensitive," says

Kunal Motwani, an analyst at Equitymaster.com, a Mumbai-based research firm. "With

Parle holding the price of its 100 gram pack of glucose biscuits at Rs 4, no competitor can

afford to increase prices by even 25 paisa. This is putting pressure on margins and

affecting growth," he adds. Glucose biscuits account for 57 per cent of the Indian biscuit

market and Parle G commands a 50 per cent share of this segment. Incidentally, the

brand, which sells 4,000 tones per annum, is the world's largest by tonnage.

1.7 PRODUCTS MANUFACURED BY PARLE COMPANY

Parle Products Pvt. Ltd’s main source of revenue is its brand Parle-G, which is a

brand worth around 20 billion (INR), and it contributes more than 50% to the company’s

total revenue. The confectionery items by Parle fetch around 15% of its total revenue.

The following are the products offered by Parle based on the market segment.

BISCUITS:

Parle biscuits are linked with factors of power and wisdom providing nutrition

and strength. Parle biscuits are indeed much more than a tea- time snack, they are

considered by many to be an important part of their daily food. Parle can treat you with a

basket of biscuits which are not only satisfying but are also of good and reliable quality.

Parle biscuits cater to all tastes from kids to senior citizens. They have found their way

into the Indian hearts and homes.


Sr.

No.

Product Sr.

No.

Product

1. Parle-G 9. Parle Marie

2. Hide n Seek 10. Kreams

3. Krackjack 11. Milk Shakti

4. Hide and Seek Milano 12. Parle 20-20 Cookies

5. Magix 13. Goldenarcs

6. Digestive Marie 14. Nimkin

7. Monaco 15. Festo

8. Happy Happy 16. Top

CONFECTIONARIES:

Right from candies to toffees, the sweet 'n' treat category of the Parle product

range is a genuine treat for every snack lover. This category can satisfy one's taste and at

the same time create a desire for more. These confectioneries are a sheer delight to the

taste buds and have a universal appeal. Parle Biscuits and confectioneries, continue to

spread happiness and joy among people of all ages.

The following are confectionary products owned by Parle Products Pvt. Ltd.:

Sr. No. Product Sr. No. Product

1. Poppins 8. Kismi Toffee

2. Mazelo 9. Kismi Toffee Bar

3. Orange Candy 10. Kismi Gold

4. Xhale 11. Melody

5. 2 in 1 Eclair 12. Mango Bite

6. Golgappa 13. Kaccha Mango Bite

7. Melody Softee 14. Parle Lites


SNACKS:

Salty, crunchy, chatpata and crispy caters to the bunch of Parle snacks. You can

now treat your loved ones with this yummy lot.

Parle snacks are a complete delight to the taste buds and can create the desire for

more and more. These snacks will not only satisfy your tummy but will also sustain a feel

in your mouth to associate you with the bond of Parle.


1. Musst Bites 4. Cheeslings

2. Sixer 5. Jeffs

3. Musst Stix and Musst Chips 6. Sixer Zeera

BEVERAGES:

The following are beverage products owned by Parle:


1. Frooti 4. Bisleri

2. Grappo and Appy Fizz 5. Saint Juice

3. LMN 6. Bailey

All the brands referred in this report, except Bisleri, under the beverage category

are owned by Parle Agro Pvt. Ltd., a company owned by Mr. Prakash Chauhan. Mr.

Ramesh Chauhan, brother of Mr. Prakash Chauhan, heads Parle Products Pvt. Ltd., and

controls Parle Bisleri Ltd. which manufactures and markets mineral water under the trade

name Bisleri.


CHAPTER -2

PRODUCT STRATEGY

2.1 INTRODUCTION

BISCUITS are the products of daily consumption.

Consumed by, one and all.

And when it comes to Parle biscuits, it is loved by all.

Parle biscuits are linked with factors of power and wisdom providing nutrition and

strength. Parle biscuits are indeed much more than a tea- time snack, they are considered

by many to be an important part of their daily food. Parle can treat you with a basket of

biscuits which are not only satisfying but are also of good and reliable quality. Parle

biscuits cater to all tastes from kids to senior citizens. They have found their way into the

Indian hearts and homes.

Parle Products Limited has launched different brands of biscuits. Not only in

urban areas but also in rural markets as well. They have entered the rural markets with

the same price and quality. Not with all the brands but many of them. Out of which Parle-

G is the most vital one. It has penetrated so much in the market that it has become

the house hold name. Even it is compared to the meal of a person. That if a person

consumes a full packet of biscuit instead of having lunch or dinner. And this is accepted

by the consumers, as the nutritional value is high enough. This stands as a biggest

accomplishment for the company.

A Company needs nothing except the consumer satisfaction and Parle has

successfully gained that. This is its biggest achievement which creates a success story.


2.2 BELOW IS THE VARIETY OF BISCUITS PROVIDED BY

PARLE

PARLE G

Every nation dreams of a better tomorrow. And every nation's tomorrow lies in the hands

of its children; the young stars who shape the future of the nation. So, it's important to

nourish these young stars, after all it's a question of the nation's future.

Filled with the goodness of milk and wheat, Parle-G is a source of all round nourishment.

Treat yourself to a pack of yummy Parle-G biscuits to experience what has nurtured and

strengthened millions of people for over 70 years. A meal substitute for some and a tasty

and healthy snack for many others. Consumed by some for the value it offers, and many

others for its taste. Whatever the occasion, it has always been around as an instant source

of nourishment. Little wonder that it's the largest selling biscuit brand in the world.

HIDE AND SEEK

Play a game of hide and seek with your taste buds. Indulge in the mouth-watering delight

of India’s best moulded chocolate chip biscuits, Hide and Seek. All it takes is one bite,

and you are transported to chocolate Heaven. Packed with a bounty of chocolate chips,

once you try Hide and Seek, you will never want any other biscuit again. A treat for the

mouth, and the heart, khate hi dil aa jaye!

KRACK JACK

Parle introduced India’s first and original sweet and salty biscuit –Krackjack in 1972,

which went on to become one of the most loved biscuits. It’s a crispy and delicious

biscuit with a perfect balance of sweetness and saltiness. Once you start relishing it, you

won’t be able to stop the longing for more. Though Krackjack sweet and salty biscuits

can be enjoyed anytime, it goes wonderfully well with your evening cup of tea.

The unique dual tastes of sweet and salty have a perfect analogy with the dual personality

of an individual, be it a politician or a mother-in-law….Taste ka double role jo khol sakta

aap ki bhi pole.


HIDE AND SEEK MILANO

There’s most definitely a secret. After all, behind every prized cookie is a well guarded

recipe. That's because the Milano is no ordinary cookie. Available in Chocolate Chip,

Butterscotch, Butter Nut and Choconut, every Milano is as rich and exotic as it is

premium and delicious. Indulge in the sinful taste of Milano, a cookie with a reputation

for romance, and enjoy everything that follows.

MAGIX

Imagine a biscuit with the goodness of a health biscuit and fun of rich cocoa and crunchy

cashews. Magix is an eclectic mix of taste and health. Brimming with 7 vital vitamins

and 2 minerals, there's no way that moms can refuse to let you have something that is

crunchy, healthy and tasty.

PARLE ACTIFIT DIGESTIVE MARIE

Now say 'goodbye' or at least 'see-you-later’ to the couch, the video games, the computer

and the TV. And enter the Actifit world where you say 'Hi. Hello, Good morning' to the

gym, the roads, the pool. And to help you stay this active, you need Actifit Digestive

Marie. It's a biscuit that's packed with 5x more fibre (than other Marie biscuits) and 67%

less fat. And it's a biscuit that will help you commit to a healthier you.

MONACO

“Life namkeen banaiye!” When life hits a dull patch, just pull out a Parle Monaco to

make it exciting. The light, crispy biscuit sprinkled with salt, is the perfect namkeen twist

you can add to your ordinary boring moments. Go ahead, Life namkeen banaiye,

anywhere, anytime with Parle Monaco.

To spice up your life further, try the variant of Parle Monaco - The Zabardast Jeera. This

salted, crispy biscuit delicately seasoned with jeera, has a unique taste that makes those

namkeen moments even more exciting.


HAPPY HAPPY

Experience a world of happiness with Parle Happy Happy Cookies. Baked to perfection,

these cookies are topped with delicious choco-chips to give you that never-ending feeling

of unbridled joy. Just open a pack of Parle Happy Happy Choco-Chip Cookies, pop one

in your mouth and feel your senses come alive.

PARLE MARIE

There are two types of people in this world. Those who love to talk, and those who love

to listen. Not surprisingly, both types love Parle Marie. Because it's much more than a

Marie biscuit. It's as light as the jokes your best friend cracks. As crisp as your uncle's

commentary on politics. As tasty as the juicy rumours your sister brings to the table.

It is, in short, the perfect accompaniment to chats, arguments, discussions and gossip

sessions. And yes, it's healthy too. So the next time you're in good company, grab your

favourite cuppa and open a pack of Parle Marie. We promise the conversations that

follow will be as addictive

KREAMS

Finally a biscuit that's perfect for every occasion and for everybody's preferences. Parle's

Cream biscuits come in different shapes, sizes and flavours, giving you the freedom to

choose, based on your needs. For a tangy delight, choose the Orange cream or try the

perfect tropical treat with the Pineapple flavour. No longer will you need to wait for the

whole year for a taste of the summer thanks to delicious Mango cream; and indulge your

taste buds with the goodness of Elaichi with mouth-watering Elaichi cream biscuits. And

last but not the least, the chocolate lovers can find solace in the delightful Chocolate

cream biscuits , or the sugar coated chocolate cream centre biscuit Parle Kreams

Bourbon. It’s time to indulge yourself. And never stop.


MILK SHAKTHI

Milk Shakti is a power-packed biscuit fortified with the goodness of milk and honey.

Kids today are growing up quicker than before. They can run faster, throw further, hit

harder and jump higher. Move over Mr. Dhoni, kids today are super confident, because

they aren't kids anymore, they are young adults.

Milk Shakti is a power packed biscuit that can be part of your breakfast, a mid-morning

snack or anytime when you need a burst of energy for that extra edge, maybe before a

cricket match, or a tennis tournament. Milk Shakti is India's first milk biscuit that comes

fortified with the goodness of honey.

20-20 COOKIES

Imagine biting into a cookie that oozes with irresistible taste of fresh, wholesome butter

and showered with crisp, crunchy cashew. 20-20 cookies are baked to a golden brown

crispiness to melt in the mouth and leave you with the taste of perfection.

Once you open a pack, you can be sure its going to be over before you can even say Parle

20-20 cookies khao, short mein niptaon. 20-20 cookies can be eaten at any time of the

day, but may we suggest you avoid tea times! You don't want to share it with anyone at

all. So enjoy Parle 20-20 cookies, filled with the richness of cashew and the goodness of

butter.

GOLDEN ARCS

Juicy, tasty orange and pineapple jelly wrapped in a chewy cake roll. Golden Arcs are

delights to the taste buds from the time you bite into the delicious pastry till your teeth

sink into the sinfully tasty jelly inside.

Golden Arcs can be the perfect snack at school during the breaks or can even be an after-

meal dessert when you want to indulge in something sweet, but not feel guilty since these

are filled with real fruit. Chewy rolls filled with the goodness of real fruit.


NAMKIN

Crispy, zingy, salted crackers. The perfect accompaniment for tea times. Move over

bland biscuits, tea time just got so much more interesting.

Tasty crackers baked to a golden perfection, sprinkled with salt for that added zest

Nimkin is the perfect tea time snack. But with a cracker so tasty, why just leave it for tea,

you can have it any time of the day Crisp salted crackers, baked to a golden perfection

FESTO

Being a kid is super exciting! Masti is expected of you, dhamaal is your birthright and

turning a boring day into an adventure is as easy as savouring the cream within the

biscuit. Tangy orange, creamy chocolate, traditional elaichi, zingy pineapple or sweet

mango; there’s a flavour for any bit of naughtiness you can think of. So, whatever you get

up to, Festo will be there to go crazy with you.

TOP

It is the ultimate crispy cracker with the finest taste of butter, especially made to

mesmerize you with its smoothness. The unspoken dream or the wildest imagination gets

real, with the smooth texture of butter. So take a bite and escape into your own world

where it will be just about you and everything else fades into oblivion. Let no one come

between you and "Buttery Taste and Buttery Dreams".


2.3 PARLE RE-LAUNCHES BISCUITS BRAND MARIE CHOICE:

Parle Products has decided to re-launch its regular Marie brand and also hike its

price by Rs 2. The company has also changed the name of the product from Marie Choice

to Parle Marie. Parle has also been trying to grow the Marie category with its value-added

premium variant - Marie Digestive (priced at Rs13 for 200 gm).

According to the company, the Marie category is growing at 20 per cent and the

new variant has not eaten into the share of the regular Marie. The company also has no

plans of hiking prices for the rest of its biscuit brands, including its largest selling glucose

brand - Parle G. Incidentally the price of Parle G has not been changed in the past 12

years. The price of Parle G continues at Rs 4 for 100 gm.

The Anti-Marie bureau led by its chief, storms in. As the man looks on, the

Bureau points to a product shot while Kajol rattles off its benefits. The now-converted

biscuit eater gratefully reaches out for the new snack. Kajol flashes a pack of PDM,

declaring "yahi Marie, sahi Marie" (this Marie is the right Marie).

The brief given to the agency was simple: highlight PDM's unique selling points -

high fiber, low calorie, low fat and a light feeling on regular consumption - to existing

Marie eaters.

And convince them to switch to PDM. "We didn't want to launch PDM on the

taste platform because all Marie biscuits taste alike. So we opted for the superior fiber

platform," says Vijay Chauhan, chairman and managing director, Parle Products.

Chauhan's simple strategy made PDM stand out in the crowded Marie market.

Currently, the core biscuit - including Marie and the popular glucose varieties - segment

makes up 55 per cent of the Rs 4,000 crore (Rs 40 billion) biscuit segments. That works

out to a significant Rs 2,200 crore (Rs 22 billion).


There's been a healthy appetite for Marie, too. The Rs 490 crore (Rs 4.9 billion)

segments have been growing consistently at 10-12 per cent. But Marie Choice, Parle's

decade-old brand, hadn't been expanding its share of the market for a while. If the

company were to revive an interest in the product, it had to innovate. So Parle blended

the high fiber content of digestive biscuits like McVitie's Digestive, into a regular Marie

biscuit.

Even the name was tinkered with to reflect the change - Digestive Marie. PDM

claims to have has five times more fiber than the regular 0.7 per cent fiber content in

biscuits like Sun feast Marie Light. It's also the low-fat alternative, apparently: 10 per

cent compared to 22 per cent in regular digestive biscuits.

Parle also claims that sales have already picked up. But the big picture doesn't

look as appetizing. One of the bigger Marie markets is eastern India. That market is

crowded with about 30 regional players, offering lower price points. "Even Britannia has

lost out there," says Parle's Chauhan. It can't help that PDM is more expensive than all

other Marie brands.

That's mentioned upfront in the ad itself. "The extra fiber costs extra money," says

Chauhan. A 200-g pack of Britannia Marie Gold costs Rs 12, while a similar size pack of

PDM is 25 per cent more expensive at Rs 15. Parle is urging consumers to try PDM

through the well-tried route of introductory discounts. At present, there's a discount of Rs

2 on both the 200-g and 400-g packs. That offer is likely to be withdrawn in a couple of

months.

But Parle is not content with just a cut in price. It's also emphasizing on the brand

switch to PDM. That means it may also eat into its own franchise - Parle Marie Choice

consumers could also shift to PDM, thereby reducing Marie Choice's market share to

crumbs. But Parle claims its strategies are well-baked. Even if Marie Choice's market

share crumbles, PDM's market share will rise. So the scenario evens out.


CHAPTER -3

PLACE STRATEGY

3.1 INTRODUCTION

Place refers to as the distribution channels adopted by Parle Products to reach

even the interior part of the village. This is a quiet difficult and challenging task. But,

Parle has always seen further to find solutions and grab opportunities.

The extensive distribution network, built over the years, is a major strength for

Parle Products. Parle biscuits and 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 and

retailers. Additionally, there are 31 depots and C&F agents supplying goods to the wide

distribution network.

3.2 SELECTION:

The company takes into consideration a host of factors while selecting the channel

members. This is because it believes that selection of channel members is a long run

decision and the rest of the decision regarding the supply chain depends upon the

efficiency and coverage by the channel members. The following are the host of factors

considered by the company in selecting the channel members:

Authentication is required by the regarding the identity of the channel members,

which includes the name and address, photograph of the location.

Proof of solvency which requires name and address of the channel member’s bankers


Safety of the inventory, which means that the distributor/ dealer should get the stock

of the company insured.

Inventory or the perishable goods kept by the distributor/ dealer should be in good

condition which means a detail of storage space to be provided.

Details of the delivery vehicle, which includes Light Commercial Vehicles, Matador,

3 Wheeler Van, Tricycle Van and Hand/Push cart. The number and model of each of

the vehicle needs to be furnished to the company.

Company acknowledges the fact that it needs to be sensitive to the market demands.

For this it requires that a number of salesmen needs to be present on the field. The

salesmen too are divided into various categories like the Field salesmen and Counter

salesmen. Also the details of Clerical Staff and Mazdoors are to be provided. The

technical competence of the salesmen needs to be mentioned

Details of the product kept of other companies have to be provided. The annual sales

of these products too have to be mentioned. Also details of complementary products

and product lines need to be mentioned.

Dealers of the company must carry a good reputation. This is due to the fact that the

company believes reputation of the dealer affects the clientele.

Market coverage by the distributors needs to be defined which includes details of

Geographic coverage and Outlets per market area.

The company also requires the dealers to furnish any Advertising and Sales initiative

undertaken by them on behalf of the company.


3.3 MOTIVATION OF CHANNEL MEMBERS:

Company strongly believes in maintaining a good relationship with the channel

members so that they are genuinely motivated to work for the company. Also if the

channel members are motivated, they can also initiate advertising and sales promotion

schemes on behalf of the company. However to keep the channel members motivated to

work, the company has to incur certain costs but the benefits of it are felt in the long run.

The following are the motivation programs run by the company:

3.4 DISTRIBUTORS:

One of the main factors, which keep the distributors motivated, is the margin. Usually

the margins offered by the company are 8% and it is raised to 8.5%. Volume wise this

comes out to be a big figure since Parle’s product has a good demand in the market.

However compared to the other companies the margins are still lower since the new

players in the market offer a much higher margin. But the very fact that Parle’s

products have good demand in the market motivates the distributors to stock it.

Parle Products being a cooperative cannot afford to give heavy monetary incentives.

Parle’s products are considered to be value for money since the company does not

believe in charging high margins. In fact all monetary incentives are just the short run

means to promote the company’s product. In order to keep the Channel members

motivated in the long run, Parle builds on the concept of “Trade Marketing” which

makes the dealers and the distributors believe that the company’s products are worthy

of being pushed in the market.

The company is organizing various Total Quality Management initiatives and

workshops. Here various counseling measures are undertaken by the company to

improve the overall working of the distribution network.


Vision and mission statement: the company cascades down the vision to the various

channel members; this is done through various events organized by the company at

different locations where the values of the company are made clear and enforced to

the channel members.

Also the fact that Parle being a cooperative society cannot afford to spend

exorbitantly on such events therefore it has a very traditional way of organizing these

get together which leaves an impact on the members.

3.5 THE RETAILERS:

Trade schemes: these are undertaken by the company only for the hard selling items

e.g. Biscuits and Snacks etc. for these the company raises the margins by 2%, also

schemes like good packaging incase of butter and cheese is undertaken by the

company. However this is only a short-term initiative to push the products of the

company.

Glow boards: the company puts up glow boards at the retailer and pays the major

portion of the cost.

Schedule of the salesmen: they provide the retails with this schedule so the retailers

can pre estimate the quantities of the various products needed.

Infrastructure facilitation: the company facilitates the retailers to buy beautiful

stalls by formulating an easy payment program and a commitment to buy back the

equipment at a reasonable price when the value of the equipment has depreciated.


Evaluation of channel members

Beat plan: this plan is generated for the various product categories. A weekly

schedule is prepared for various markets and the retailers the turnover for each of

the product is calculated for the wholesale dealers.

Cumulative performance: the performance of the dealers is averaged out over a period

of three years where a comparison is made of the present performance vis-à-vis the

previous ones.

Target versus achievement: the performance and the targets are compared and therefore

the gaps are identified which help in evaluating the WD and planning for the next year as

well. This is done for each of the product category.

3.6 Co-Operation among Channel Members

Parle quality circles: The members of the local channel meet together every month to

share issues and the achievements of the channel members. This is an ongoing activity

facilitated by the company offices in different locations; this enables the channel

members to learn together and reduces the horizontal conflicts among the WDs.

Pilot salesmen scheme: To reduce the financial burden of the distributors this scheme is

run whereby half the cost of the salesmen is born by the company and the rest half by the

distributor

Scheduling of sales: The WD’s provides Schedule of the distributor’s sales men to the

retailers so that the retailers can plan out and place the orders in advance.


Agreement defining rights: The company makes the distributors sign an agreement

where the areas of operation for each of the distributors are defined, therefore avoiding

any conflict amongst the distributors regarding their areas of operation.

3.7IMPORT-EXPORT:

The immense popularity of Parle Products in India was always a challenge to our

production capacity. Now, using more modern techniques for capacity expansion, we

have begun spreading our wings and we are going global.

Parle biscuits and confectionaries are fast gaining acceptance in international

markets, such as the Middle East, Africa and South East Asia. The more sophisticated

economies like U.S.A., UK, Canada, Australia and New Zealand are also relishing Parle

products.

As part of the efforts towards a larger share of the global market, Parle has

initiated the process of getting ISO 9000 certification. The Parle name symbolizes

quality, health and great taste. And yet, we know that constantly innovating and catering

to new tastes has built this reputation. This can be seen from the success of its new brands

such as Hide and Seek etc.

Today, the Parle brands have found their way into the hearts and homes of people all over

India and abroad. The Parle biscuit brands, such as, Parle-G, Monaco, Krackjack, Marie

Choice, Hide and Seek enjoy a strong imagery and appeal amongst consumers across the

world.

This has resulted into Parle-G being the ‘Worlds Largest Selling Biscuit’.

CHAPTER-4


PROMOTION STRATEGY

4.1 INTRODUCTION

Parle-G started being advertised in the 80's. It was advertised mainly through press ads.

The communication spoke about the basic benefits of energy and nutrition. In 1989,

Parle-G released its Dadaji commercial, which went on to become one of the most

popular commercials for Parle-G. The commercial was run for a period of 6 years.

Parle-G grew bigger by the minute. Be it the packs sold, the areas covered or the number

of consumers. It became a part of the daily lives of many Indians. It wasn't a biscuit any

more. It had become an icon. The next level of communication associated the brand with

the positive values of life like honesty, sharing and caring.

In the year 1997, Parle-G sponsored the tele-serial of the Indian superhero, Shaktimaan

that went on to become a huge success. The personality of the superhero matched the

overall superb benefits of the brand. Parle extended this association with Shaktimaan and

gave away a lot of merchandise of Shaktimaan, which was supported by POS and press

communication. The children just could not get enough of Parle-G and Shaktimaan.

In the year 2002, it was decided to bring the brand closer to the child who is a major

consumer. A national level promo - `Parle-G Mera Sapna Sach Hoga' was run for a

period of 6 months. The promo was all about fulfilling the dreams of children.

The year 2002 will go down as a special year in Parle-G's advertising history. A year that

saw the birth of G-Man a new ambassador for Parle-G. Not just a hero but also a super-

hero that saves the entire world, especially children from all the evil forces. A campaign

that is not just new to the audiences but one that involves a completely new way of

execution that is loved by children all over the world – Animation.


http://www.parleproducts.com/images/SHAKTIMAAN.rm

http://www.parleproducts.com/images/PARLE-GDADAJI.rm

To make the brand much more interesting and exciting with children, it was decided to

launch a premium version of Parle-G called Parle-G Magix in the year 2002. Parle-G

Magix is available in two exciting tastes - ‘Coco’ and ‘Cashew’. The year 2002 also

witnessed the launch of Parle-G Milk Shakti, which has the nourishing combination of

milk and honey, especially launched for the southern market.

For Parle, advertisements, events and campaigns have been major channels of

communication. The following sections describe such channels in greater detail.

4.2 ADVERTISEMENTS:

The following are some of themes based on which Parle has been advertising to market

its brand.

Healthy Products, Iconic Brand Ambassadors:

Parle has maintained its brand position as a low cost and a healthy product, but in order to

promote several other products it has made several major changes in its campaign.

Referring to section 4, in past few years, like Britannia, Parle approved of cricket players

endorsing its products. Parle’s Milk Shakti faces a competition from Britannia’s similar

product Milkbikis. In a snapshot of an advertisement in which the Indian cricket team

captain – MS Dhoni endorses Parle’s Milk Shakti biscuits.

Product Metaphor:

It also promoted its product by metaphorically claiming its products as a “Genius.” It also

continues to associate its brand with celebrities while asserting its position of being

genius.

Celebrity Endorsing:

It continues its association with a celebrity-star like Hrithik Roshan to promote its

premium segment product such as Parle Hide and Seek.


Product Association with Audience:

In yet another strategy, it associates its product with famous characters rather than the

celebrity or a cricket player. One of its major achievements was its association with

Shaktimaan, an Indian superhero. It also advertises its products by associating them with

individual traits.

For example, when Parle launched their new product (a first one then) Parle Monaco-

Life Namkeen Banaye biscuits, in order to attract the audience interest they correlated the

salty part of the biscuit to an individual’s wittiness.

With another advertisement on Parle Marie, with the slogan “Baatcheet Bakbak aur Parle

Marie”, it appealed to the family rather than focusing on specific age group, unlike what

it used to do initially for Parle-G.

4.3 EVENTS AND CAMPAIGNS

Promotional campaigns - Parle-Gramin Swastha Yojana

Parle had launched a new scheme called a “Parle-Gramin Swastha Yojana,” which was a

network of ambulance van visiting rural areas giving basic medical treatments, educating

people on nutrition deficiency problems, and promoting Parle nutritious products. Using

this it penetrated into those areas where direct penetration using just advertisements was

not possible.

Parle-G Mera Sapna Sach Hoga

In 2002, Parle decided to launch “Parle-G Mera Sapna Sach Hoga” contest to stay as a

popular brand among children. This was an initiative taken after its successful branding

with Shaktimaan. The national level promos run for a period of 6 months which promised

free scholarship and free trips to Disneyland at Paris and Singapore. In past, it had also

launched TV serial called Parle Sakthi, mainly oriented towards the women consumers.


Parle-Golu Galata Contest

This event was specifically focused in Tamil Nadu where household women decorate

clay dolls. Then the women display the dolls on the specially prepared Koulpasis or steps

made of wood and covered with a thick cloth. This was then displayed to friends and

relatives. This tradition was slowly losing its charm, but Parle saw an opportunity to

reach out to the people and organized the contest as a novel promotion strategy. Thus, it

also promotes its products at regional level through traditional activities.

Sales promotion consists of activities that have the purpose of making other sales

efforts (e.g. advertisement) more effective. Some popular sales promotion techniques of

Parle are:

a. Special displays

b. Offering Scholarship

c. Running contest

d. Distribution of free samples

e. Offering free introductory services

f. Demonstrating products

In spite of all efforts spent in doing market research, sales forecasting and

advertising and sales promotion, some one ultimately must do some personal selling of

products or services.

Selling through Agent Middlemen

Selling Agent: The selling agents perform on the basis of extended contracts and

negotiate all sales of a specialized line of merchandise or the manufacturer’s

entire output. Usually, the agent has full authority concerning prices and terms

and is the sole seller for the line represented and is not given market area.


Manufacturer’s Agent: the manufacturer’s agent or representatives is an

independent business person who sell a part of output of two or more client

manufacturers whose products are related but non-competing, on a continuous or

contractual basis in a limited or exclusive territory. Manufacturers use agents

more often than any other type of agent middlemen. The agents do not take title to

the goods, are paid a commission and have little or no control over prices, credit

or other terms of sales.


CHAPTER - 5

PRICING STRATEGY

The Parle marketing philosophy emphasizes catering to the masses. It constantly

endeavors at designing products that provide nutrition and fun to the common man. Most

Parle offerings are in the low and mid-range price segments. This is based on its

cultivated understanding of the Indian consumer psyche. The value-for-money

positioning helps generate large sales volumes for the products.

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 and seek biscuit, a survey was taken in the urban and

semi-urban markets; on the basis of which hide and 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 and

other processing cost. All these show customer status, which is also one of the reasons for

Parle hide and 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 but at Rs.5

per packet of biscuit and not Rs.10 like that of Britannia’s cream treats.


The biscuit market in India is extremely price sensitive. With Parle providing most of its

biscuits in the range of Rs. 1to 40, other players in the market can’t think of increasing

the prices.

For example,

PRODUCT PRICING(Rs.)Parle-G 1,2,3,4,5,10,20,30,40,50Hide and Seek 5,12,20,30,50Krackjack 5,7,10,15,20Hide and Seek Milano 5,12,15,30,25Magix 6,10Monaco 5,7,10,20Happy Happy 5,10Parle Marie 5,10,15,20,22Kreams 2,5,10,18Milk Shakti 5,10Parle 20-20 Cookies 5,10,18,20Goldenarcs 10,20Nimkin 5,10Festo 5,10Top 5,10,20

These are the various prices of Parle Biscuits in urban as well in rural areas. The

price is too low, which is affordable by all irrespective of an individual’s economic

status.

Rural consumers look for value than its price. Product strategy and pricing are inter

linked with each other to deliver value at the right price. So, the biscuits of Parle are of

good quality and nutritious.

Also, the rural consumers are more interested in the utility of the product rather

than packaging. So, it’s better to avoid sophisticated packing. And it will help out in

reducing the cost as well. Simple packing should be adopted. Parle uses polyethylene

sheets instead of boxes, which keeps the quality and quantity of biscuits and

confectioneries in good condition. The price is low enough as it has to penetrate in the

market even in the interior of the country. It makes it affordable by each and every one.

CHAPTER-6


SWOT ANALYSIS

STRENGTHS

(1) Low price as compared to competitors:

They constantly endeavor at designing products that provide nutrition and fun to the

common man. Most Parle offerings are in the low and mid-range price segments. This is

based on their understanding of the Indian consumer psyche. The value-for-money

positioning helps generate large sales volumes for the products. However, Parle Products

also manufactures a variety of premium products for the up-market, urban consumers.

And in this way, caters a range of products to a variety of consumers.

Affordability:

Parle G offers 1Rs. pack which contains 4 biscuits which is affordable to anyone aims to

satisfy hunger.

(2) Sizeable market share in the country:

Many of the Parle products - biscuits or confectioneries, are market leaders in their

category and have won acclaim at the Monde Selection, since 1971. With a 40% share of

the total biscuit market and a 15% share of the total confectionary market in India, Parle

has grown to become a multi-million dollar company. While to consumers it's a beacon

of faith and trust, competitors look upon Parle as an example of marketing brilliance.

(3) Offers variety of products in different sizes under its brand:

Parle offers a variety of biscuits at different pricing range. The Parle marketing

philosophy emphasizes catering to the masses. We constantly endeavor at designing

products that provide nutrition and fun to the common man. Most Parle offerings are in

the low and mid-range price segments. This is based on our cultivated understanding of

the Indian consumer psyche.


The value-for-money positioning helps generate large sales volumes for the products.

However, Parle Products also manufactures a variety of premium products for the up-

market, urban consumers. And in this way, caters a range of products to a variety of

consumers.

(4) An experienced team of sales and marketing executives:

Sales and Marketing executives are selected through a special process. A proper

verification of identity and financial background are done for a better structure of the

human resource in the company.

(5) Largest distribution system:

The extensive distribution network, built over the years, is a major strength for Parle

Products. Parle biscuits and 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 and retailers. Additionally, there

are 31 depots and C and F agents supplying goods to the wide distribution network.

(6) Wide coverage area of manufacturing units:

Parle Products has one factory at Mumbai that manufactures biscuits and confectioneries

while another factory at Bahadurgarh, in Haryana manufactures biscuits. Apart from this,

Parle has manufacturing facilities at Neemrana, in Rajasthan and at Bangalore in

Karnataka. The factories at Bahadurgarh and Neemrana are the largest such

manufacturing facilities in India. Parle Products also has 14 manufacturing units for

biscuits and 5 manufacturing units for confectioneries, on contract. All these factories are

located at strategic locations, so as to ensure a constant output and easy distribution.

Each factory has state-of-the-art machinery with automatic printing and packaging

facilities.


(7) The quality commitment:

All Parle products are manufactured under the most hygienic conditions. Great care is

exercised in the selection and quality control of raw materials, packaging materials and

rigid quality standards are ensured at every stage of the manufacturing process. Every

batch of biscuits and confectioneries are thoroughly checked by expert staff, using the

most modern staff, using the most modern equipment.

(8) The customer confidence:

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 and

sweets. Today, the Parle brands have found their way into the hearts and homes of people

all over India and abroad. The consumer is the focus of all activities at Parle. Maximizing

value to consumers and forging enduring customer relationships are the core endeavors at

Parle. Their efforts are driven towards maximizing customer satisfaction and this is in

synergy with their quality pledge. “Parle Products Limited will strive to provide

consistently nutritious and quality food products to meet consumers' satisfaction by using

quality materials and by adopting appropriate processes. To facilitate the above we will

strive to continuously train our employees and to provide them an open and participative

environment.

CHAPTER-7

WEAKNESS


(1) Breakage of biscuits while delivering to retailers:

Sometimes biscuits get damaged while delivering to retailers. Company should adopt

innovative packaging techniques. So that the quality of biscuits are good till it reaches the

customer, also attractive for the customer.

(2) No proper replacement system for broken biscuits to retailers:

There is no proper replacement system for broken biscuits to retailers. Company should

start a program for the loyal retailers and wholesalers to reduce their complaints by

providing timely supply and replacement. This will help in increasing their sales.

(3) Improper and irregular supply:

There is improper supply of products to retailers and distributors. Hence it is advised to

increase the number of stock keeping units {SKU} available in the retailer’s store. Each

salesman should stress the retailers to keep the maximum SKUs and to maintain these

SKUs throughout. With this, the replacement of the damaged and expired biscuits should

be prompt and without any hassles, so that retailer can be saved from the loss of the

expired and damaged goods.

(4) Dependent on its flagship brand, Parle-G:

The major income source for Parle Company is the Parle-G biscuits. The biggest concern for Parle -G is that the brand shouldn’t become outdated as it is a historic brand. The brand has managed to retain its leadership position because it has evolved its campaign with every consumption trend. Hence Parle Company should opt for innovative techniques to maintain the brand of Parle-G

(5) Poor packaging in family pack of glucose biscuits:

Company should adopt innovative packaging techniques, as they have their own

packaging unit as consumers are highly attracted towards new packaging. The packaging


of Parle Glucose biscuits (1/2 and 1 kilogram packs) must be improved for its better

sales. The company should come up with double packaging as people refuse to buy

family pack biscuits with loose packaging. The company should take proper measures

that the schemes and offers are not gulped by the middlemen, and that it benefits the

retailers and customers.

(6) Lack of schemes for retailers and distributors:

One of the advantages of Parle Company is the wide range of retailers and Distributors.

Parle Company should implement more innovative schemes for retailers and distributors.

So there is better relationship between the company and retailers, distributors.

CHAPTER-8

OPPORTUNITIES


(1) Rising demand for innovative packaging in packaged foods:

Parle should adopt new innovative packaging techniques. Since it can attract more

customers specially kids through innovative packaging techniques. Due to proper

packaging the quality of the biscuits will be retained and the retails will not suffer loss if

goods are spoiled before it reaches their place.

(2) Retaining loyal retailers or wholesalers:

Parle can motivate retailers and wholesalers good incentives and programs. The Parle

Company can maintain the loyal retailers and wholesalers. Since one of the most

important strength of the company is wide spread distribution network. The wholesalers

and retailers are one of the main reasons for the same. Hence it is advised that new

innovative programs and more incentives should be given to them.

(3) Improving supply system for established brands:

As discussed in the earlier point the company can attract more retailers and wholesalers.

Due to this the company can expand the supply system and attract more customers. This

in turn will earn good profit to the company.

(4) New innovative promotion techniques:

Promote Parle brand through schemes such as “Parle Gramin Swastha Yojana” (a

network of ambulance van visiting rural areas giving basic medical treatments educating

people on nutrition deficiency problems and promoting Parle nutritious products)

Promote Parle brand through T. V. shows such as “Parle Sakthi” (“Parle - Friend of

Women”). The weekly T. V. show will cater to health issues of women and children and

will explain long term benefits of healthy diet) Results Expected – Improved sales

through “Top of mind recall”.

Parle is weak in Eastern India and Tamil Nadu. To cover up this loop hole, they are

giving scholarships to children in these states to cover up the corporate equity which is

less than Britannia in these states.


Based on the above mentioned facts, the following are some of the suggestions that may

help Parle Products Pvt. Ltd. to maintain its position as a leading company in the food

and beverage market in India.

(5) Penetrate the Market Share of the Unorganized Sector

The Indian biscuit industry is divided into the organized sector that has 60% market share

and the unorganized sector that has the rest 40% market share. Parle can take a pie of the

market share of the unorganized sector by tapping rural markets through several

government schemes such as mid day meals. They can also be a part of NRHM centers.

By this, they would be able to improve their visibility in the rural biscuit market in India.

(6) Innovation and Rural Market:

Innovating new products, especially non-glucose type biscuits, and its test marketing in

the rural market with its existing distribution channel would help them establish a new

market in rural India. This would be similar to replication of their strategy of innovation

following which they launched their product - Hide and Seek that is a premium segment

product mainly focused in the urban or semi-urban market.

(7) Going Public:

Parle is one of the oldest companies in the biscuit market and except for its glucose

biscuit business, no other product has had a significant impact in the market. In order to

follow an aggressive expansion plan and to foster world class R & D, it may need funds,

which it can easily generate through an IPO because of its brand name. This can also help

them diversify into different related markets. It is important to note that both of its major

competitors, namely, Britannia and ITC are publicly listed companies that have

aggressively pursued advertising and R & D.

(8) Diversify in New Market:


Today, though Parle has a commanding position in the biscuit industry, the future may be

much more competitive in this industry. This is because of entry of several new

companies into this market. The entry of new product suppliers in the market is also one

of the Porter’s five forces which can alter the market scenario. Hence, Parle being an

established brand should diversify into different market such as dairy products like

cheese, butter, etc.

The image that it has among the Indian masses is that of a “chai-biskut” providing

company in the rural India. Specifically, in this context, in the urban sector Parle can

create a new image of itself in the confectionary market by catering to high end

Parle should go in for exclusive outlets in at least all the shopping malls and in

medical shops coming up these days and any location where footfalls are large in

number. The advantages of this channel will be:

i. Full range display

ii. Easier to promote new products

iii. Easy to push impulse purchase products

iv. Brand building will be facilitated

Pushcarts should be increased in number in order to increase the market reach

this can provide with e very effective channel

Trade promotion should be formulated for newly launched products instead of

just tagging them onto best sellers.

The company should start a home delivery where a particular household will

order full range of products required by it over a period of time. For this the

company could provide a deliveryman with cycle to reach the different houses.


In order to motivate the channel members it is also very essential for the company

to increase the margins for the hard selling items

In order to remain sensitive to market demand, it is essential for the company to

place additional salesmen on the field since the brand as such commands a high

demand in the market but fails to match it with the supply.

CHAPTER-9

THREATS

(1) Highly advertised brands such as Britannia:


Parle faces the adverse competition from Britannia. Now-a-days Britannia have adopted

intensive advertisement such as through media to promote their products. This can result

in less attraction for the brand products of Parle.

(2) Ever increasing competition from multinationals and local companies:

ITC is promoting their Sun Feast brand by using strong promotional campaign with

Brand ambassador Shah Rukh khan. ITC Foods Ltd has expanded network and is

promoting its Sun feast biscuits across 1000 schools in the country. Britannia Tiger has

brand ambassador Rahul Dravid and Virender Sehwag who are doing heavy duty

endorsement on their personal equity line for the brand.

(3) Increase in sale of cheap local bakery products:

There is sudden increase in bakery products for past certain period of time in the market.

Due to this the Parle biscuits are facing competition. This can affect the performance of

the company.

(4) Emerging substitutes like wafers, snacks and toast:

Earlier it was just the biscuit which was available as snacks item. Now there are many

other products like wafers and toast. Thus company is facing threat due to the new

substitute products.

(5) Margin war among the major Brands:

The following are some of the brands of Britannia and Parle which are pitched against each other:

Category Britannia Parle Differentiation from Parle’s Point of View


Glucose Tiger Parle –G Established brand associated with health and low price.

Marie Marie Gold Parle Marie Introduced Parle Digestive Marie biscuits, which have five times more fiber than the regular Marie. It also offers lower fat and calories than other digestive biscuits.

Sweet Salty Snacks

50-50 Krack Jack These products at par with each other and it modified its image as “ek hein bite mein sweet bhi salty bhi.”

Bourbon Bourbon Hide and Seek

Bourbon is an established brand and is perceived as cream biscuit. Parle introduced chocolate biscuits in form of Hide and Seek endorsed by celebrity like Hrithik Roshan

Sweet Biscuits Nice --------- It offers sweet biscuits in form of Parle-G with glucose but does not offer product based on hard sugar

Multi grain Nutri choice --------- Parle does not have any specific product in this segment to counter Britannia’s product. (serves as opportunity to Parle)

CONCLUSION

I want to conclude my project by saying that marketing strategy is 4ps such as

product, promotion, price and place. These are all important aspects of marketing

strategy. Without these aspects marketing is not possible. Marketing strategy is all about


marketing a product .In these marketing mix sellers, retailers, buyers, and wholesalers

play an important role. There is lot of scope in marketing strategy. Parle company had

made huge profit by marketing there products in India and in foreign countries.

It was concluded that Parle is the first preference of both the customers and

retailers (Organized and unorganized both) because of its price and brand image.

The Parle Biscuit brands, such as, Parle-G, Monaco, Krackjack, Marie Choice,

Hide and Seek enjoy a strong imagery and appeal amongst consumers across the world.

Which has resulted into Parle-G being the “world’s largest selling biscuit".

The Parle name symbolizes quality, health and great taste. Constantly innovating

and catering to new tastes PARLE-G has built its reputation.

Parle Products Pvt Ltd. is now lagging in services to retailers because of improper

supply and distribution in some areas and competitors taking advantage of these points.

Parle Company should take into consideration the opportunities and threats as discussed

above. This will help the company to maintain its brand image for long time.

BIBLIOGRAPHY

Websites:

www.wikipedia.com


http://www.wikipedia.com/

www.parleproduct.com

www.britannia.com

www.sunfeastharabanao.com

Books referred:

Marketing Management - Philips Kotler

Marketing Mix and Human Resource Management – Michael Vaz


http://www.sunfeastharabanao.com/

http://www.britannia.com/

http://www.parleproduct.com/

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MARKETING MIX AND SWOT ANALYSIS OF PARLE COMPANY IN BISCUIT SECTOR

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