PARLE - GBrand Analysis

HISTORY OF BISCUITS

The history of biscuits can be traced back to a recipe created by the Roman chef Apicius,in which is

"a thick paste of fine wheat flour was boiled and spread out on a plate. When it had dried and hardened it was cut up and then fried until crisp, then served with honey and pepper."

INTRODUCTION ON BISCUIT INDUSTRY

Biscuits market in India : Approx. Rs 9,000-crore (Rs 90-billion)

The biscuit industry is been experiencing steady growth of 14-15% annually.

BISCUIT INDUSTRY MAJOR PLAYERS

BISCUIT INDUSTRY PROFILE

HISTORY OF PARLE

In 1929 a small company by the name of Parle

products emerged in British

dominated India.

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.

1st brands – Parle Glucose and Parle

Monaco

Market leader in many products

Won acclaim at the Monde

selection since 1970

35% share of the total biscuit

market

15% share of the total

confectionery market

14 manufacturing units for biscuits & 5 manufacturing

units for confectioneries

Parle has largest such

manufacturing units in India

Annual turnover 2000 crores

It has provided its products to the mass with the

affordable range.

ABOUT PARLE - G BISCUIT

Parle -G has been a strong household name across India.

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.

The great taste, high nutrition, and the international quality, makes

Parle-G a winner.

Times changed, variety of biscuits did come and go but nothing has

changed with these biscuits.

It has been the undisputed leader in the biscuit category for

decades.

SWOT ANALYSIS

StrengthsLow cost

Good advertising and visibilityCelebrity brand ambassadors

Most trusted brand having high brand loyalty

Top of the mind biscuit brand

WeaknessMany competitors in this

segmentNothing unique in the

product nowStorage

No differentiation

OpportunityTie-up with schools as a

part of mealsTie-up with corporate/hotel

chains

ThreatsSimilar biscuit categories

MARKETING MIX

PRODUCT MIX

WIDTH: PARLE PRODUCT produces biscuits, confectionares & snacks so width 3. PRODUCT LENGTH of PARLE:

BISCUITS CONFECTIONARIES SNACKS

PARLE-G MELODY JETTS

MONACO KISMI BAR SIXER

KRAKJACK POPPINS MUSTT BITES TANGY TOMATO

HIDE N SEEK,HIDE N SEEK MILANO, GOLDEN ARCS

MANGOBITE MUSTT BITES GARDEN SPICE

MARIE CHOICE KISMI KOFFEE MUSTT STIX

DIGESTIVE MARIE GOL GAPPA MUSTT CHIPS

PARLE 20-20, MAGIX KACCHA MANGO BITE

MILK SHAKTI CHOX

KREAMS MAZELO

PRICE MIX

Parle G has adopted the Market Penetration strategy i.e. low price along with capturing of a large market

Also they focus on providing good quality products at the same time, which means it uses the value pricing method.

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

Parle G is available in Rs 2, Rs 4 to Rs 25 packet

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

Parle-G maintained its price of Rs.4.00 for the last 12 yrs (recently Rs. 5)& has seen the variation in its sales due to increase in price by mere 50p.

PLACE MIX

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

Parle G biscuits are available to consumers, even in the most remote places and in the smallest of villages with a population of just 1500.

Parle has nearly 1,500 wholesalers, catering to 4,25,000 retail outlets directly or indirectly. A two hundred strong dedicated field force services its huge wholesalers & retailers network.

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

Factories at strategic locations & Establishment of manufacturing units in rural areas.

Advertising - 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 was a huge success and was aired over a period of 6 years. The communication spoke about the basic benefits of energy and nutrition.

PROMOTION MIX

PROMOTION MIX (CONTD..)

Sales promotion - Every year it holds day fairs at branded venues where games and fun events are organized for the employees of Parle and their families; where Parle products are giveaway prizes.

Public relations - Parle has done the following for enhancing public relations: In the year 1997, Parle-G sponsored the tele-serial of the Indian superhero, Shaktimaan that went on to become a huge success.

Hoga' was run for a period of 6 months. The promo was all about fulfilling the dreams of children.

In the year 2002, a national level promo - `Parle-G Mera Sapna Sach

Parle Saraswati Vandana, one of its initiatives, is an inter-school contest based on the Saraswati Puja celebrations. Since it started in 2002 it has seen a tremendous increase in participating each year, with entries coming from schools of West Bengal.

Parle had introduced the novel promotion called Parle Golu Galata contest in 2005. (Golu means Doll & Galata means Dhammal.)

“DADAJI” AD

HIGH

LOW

STRONG WEAK

STARS QUESTION MARK

CASH COW DOG

BCG MATRIX

MARKET

GROWTH

RATE

RELATIVE MARKET SHARE

Porter’s Five Force model

•Substitute•Traditional Indian

•homemade snacks,• Bread,

• Package Snacks•Bakery product.

•Suppliers`•Basic commodities :

• Wheat, Sugar.•Increasing price

HIGH

High competitionAmong existing players

•New Entrants•Capital Sensitive:

•Manufacturing,•Advertising,

•Distribution network,

Customer• Many biscuit from lowto moderate Range,• Like of bakery product

LOW

PRODUCT LIFE CYCLE

PEST ANALYSIS

PEST Analysis(Cont.)

SABSE JYADA BIKNEWALA BISCUIT

STP ANALYSIS

SEGMENTATION

GEOGRAPHICAL SEGMENTATION:

• Parle-G is consumed by people staying in urban, semi urban and rural areas.

DEMOGRAPHIC SEGMENTATION

AGE

•Parle-G is consumed by everyone i.e. people of all ages.

INCOME

•Parle-G is consumed by all income groups, but is mostly consumed by the lower and middle income groups.

SOCIAL

CLASS

•Parle-G is consumed mostly by lower & middle class consumers because rich class can afford more expensive biscuits.

BEHAVIOURAL SEGMENTATION

BENEFITS

•The benefit sought in Parle-G is mainly replenishing energy.

OCASSIONS

•Parties, birthdays, sports and regular occasions.

TARGETTING

PARLE Company as a whole inculcates SELECTIVE MARKET SPECIALIZATION strategy.

The extent of Parle-G(P1) is for all the 3 markets, Hide & Seek(P2) where it is a product only for 1 market and for Krackjack biscuits (P3) where the product is targeted for 2 markets.

P1

P2

P3

M1 M2M3

POSITIONING STRATEGY

Parle-G is positioned in the minds of people as a value for price product and also as a low-priced product.

Parle-G positioned themselves as G - Genuis For Parle-G the company has used channel and image

differentiation tools. Parle-G by far has the most intensive distribution

coverage as compared to any other biscuit company in India.

Also the name PARLE has an image that generates respect and a belief of good quality in the minds of the buyers.

POSITIONING

DISTRIBUTION CHANNEL

Manufacturing Unit of Parle

at various locations

Parle Depots

Wholesalers and Distributors

Transportation to next level

Retailers: Pan-bidi/city stores

Procurement: Customers

PROBLEMS ENCOUNTERED

Stock out Shortage of Parle G Freebies Allocation Problems Further Dispatch Problem Duplicate biscuits Poor Sale Promotion Skills

DISTRIBUTION STRATEGIES

Multipurpose distribution centres Public distributaries Feeder markets/mandi towns Shandies/haaths/jatras/melas Use of co-operative societies

RECOMMENDATIONS

Parle G (glucose biscuit) can be promoted using cricket amongst youth.

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

They should promote Parle products by launching snacks joints along tea coffee stalls.

In 80% blood donation camp we have seen Parle-G is used as glucose source after donation. Parle G should use this as a promotion strategy.

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