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PRODUCT AND BRAND

MANAGEMENT
PARLE G
Marketing Plan
• 1500 WHOLESELLERS
• 4,25,000 RETAIL OUTLETS
• AFFORDABLE PRICE
Market size

The biscuit industry is been experiencing steady


growth of 14-15% annually.
In 2008, the growth exceeded 16% mark on account
of exemption from Central Excise Duty on biscuits.
SWOT
Strength
 Parle Brand
 Diversified Product Range
 Extensive Distribution Network (Availability in most
remote villages)
 Low & mid range price segment catering to mass
 Better understanding of consumer psyche
SWOT
Weakness

 Dependence on retailers & grocery stores for displaying


diversified Parle products on shelf to induce impulsive buying

 Dependence on Parle-G (glucose biscuit) under Parle


umbrella
SWOT
Opportunity
 Indian Biscuit Manufacturers’ Association (IBMA) estimates annual
growth of around 20% in next couple of years.
 The $220 Billion food industry is expected to grow to $300 Billion by
2015.
 Per capita consumption of Biscuits in the country is only 1.8 kg as
compared to 2.5 kg to 5.5 kg in South East Asian countries and
European countries, and 7.5 kg in USA.
 Growing demand of Sugar free cream crackers & diet biscuits
 Opportunity to further grown in Urban & Rural market; Current
penetration levels are
Urban Market : 75% to 85%
Rural Market : 50% to 65%
 Grow in southern and east India
SWOT
Threat
 Fluctuations in the prices of transportation costs &
distribution cost due to high wedges and oil prices
 Entry of ITC (having very good distribution channels) in
to biscuit industry
Growth
Launched in the year 1939 in Mumbai, it was one of
the first brands of Parle Products.
By the year 1949, Parle Glucose biscuits were
available not just in Mumbai but also across the state.
Today, Parle enjoys a 35% share of the total biscuit
market and a 15% share of the total confectionary
market, in India
PESTEL analysis
Economical
• ↑ in per capita Social
Political income • ↑ in per capita
• Taxes • India’s GDP consumption
• Production growing at an • India is 3rd largest
and average 8% producer of biscuit
Distribution • Age
licenses • Lifestyle
• Perception
Parle G
Technological
Legal • Innovation
•Initiated ISO • R&D
9000 certification Environmental
•Dynamic
Competitors analysis

15%
31%

Priyagold
Parle
Others
35% Sunfeast
9% 10% Britannia
Parle G v/s Tiger

“Tiger” gained 28 % Market Share in 100 gram


Glucose biscuit segment in a short span of 7 years
(1997 – 2004)

VERSUS

“Parle G” established since 60 years – 57 % Market


Share in this segment.,
Consumer Distribution.
DEMOGRAPHIC
Age Every Age
Gender Any
Family Size 1-2,3-4,5+
Family Life Cycle Married / Unmarried
Income All Income
Occupation Any
Education Any
Religion Any
Race Any
Nationality Any
Pricing
Appeal to all income groups
Low and mid range price segments
Value for money
Strict cost control at every point in supply chain
International pricing
Complete excise exemption for biscuits up to 50/kg
Parle-G 100 gm pack costs Rs 4.50, while that of the
50 gm is Rs 2.50.
Pricing Strategy Matrix
USP & UCP
Parle G’s main Unique Selling Proposition is
obviously the low price...
it has maintained its pricing for almost 25 years now...

Due to which the Unique Customer Perception for


Parle G, moreover has positioned its itself as the
biscuit nutrition provider at a low price...
which still make them the world leader...
Objective

“We at Parle continuously strive for high quality &


nutritious
biscuits meeting your changing health needs at every
corner of
India by producing new value-for-money products.”
Promotion
It was advertised mainly through press ads. The
communication spoke about the basic benefits of
energy and nutrition.
The next level of communication associated the brand
with the positive values of life like honesty, sharing
and caring.
TV commercial were launched for Parle-G like
‘Hindustan ki takat’ and ‘G mane Genius’
Recently Parle G has started the use of celebrity in
their advertisements
Contingency Plan
Strong sales /distribution N/W
Healthy Products
Value for money products
Understanding of consumer psyche
Geographically located factories
Effective brand marketing
Newer & Innovative products
Attractive packaging
Net Sales
Parle G glucose biscuits, had attained volume leadership
in the market.
With a total turnover of around Rs 4,000 crore coming
from biscuits,
Parle Products has emerged as the clear market leader,
with a difference of almost Rs 1,000 crore with
Britannia Industries reported a turnover for financial year
2009-10 on biscuits contributing around Rs 3,000 crore.
Rs 5,000-crore Parle Products, which also makes
confectionery products, draws 80% of its turnover from
biscuits
Marketing expenditure
Budget : 500-600million/annum
Managed growth without the services of a brand
ambassador.
 It has focused its strategies by playing around the
price front and managing to keep it low.

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