Marketing Strategy Group - 6

PRESENTATION OVER VIEW

Overview of Biscuit Industry in India Porters Model About Parle Parle Products Parle SWOT analysis About Parle G Biscuit Parle G - uture !"allen#es Our Su##estions

Introduction on Bi cuit Indu try

Bi cuit !arket in India " R #$%%%-crore &R #%-'i((ion) Annua( gro*t+ rate o, Bi cuit Indu try a ,o((o* "
$ Growt" 18 16 14 12 10 8 6 4 2 0 2003-04 2004-05 2005-06 % Growth 2006-07 2007-08

*r+ ,--.)+e/e01tion Steady #rowt" of %& fro0 ' %( !entral $ annually) 2/cise 3uty)

Annua( production Bi cuit Indu try

Annual Production of Biscuit in India

%. %4 %& %, %. 4 & , ,--5--& ,--&--( ,--(--4 ,--4--6 7a8" MT

*o* #rowt" s"ows risin# consu01tion in India)

Bi cuit Indu try pro,i(e

Two Sectors of Biscuit Industry

9n Or#anised Sector &-$

Or#anised Sector 4-$

Or#anised : 9nor#anised :: &- : 4-

Introduction on Bi cuit Indu try

;ural-urban 1enetration of Biscuit : 9rban Mar8et : 6($ to .($ ;ural Mar8et : (-$ to 4($ Per ca1ita consu01tion of Biscuits : I<3IA %+. 8#= Sout" 2ast Asian !ountries ,+( 8# to (+( 8# 9SA 6+( 8#

Bi cuit Indu try !a-or p(ayer

Porter. /i0e /orce !ode(

T"reat of Substitute

T"reat of <ew 2ntrants

Bar#ainin# 1ower Of su11liers

!o01etitive ;ivalry Wit"in industry

Bar#ainin# 1ower Of !usto0er

Porter. /i0e /orce !ode(

Substitute

Traditional Indian "o0e0ade snac8s= Bread= Pac8a#e Snac8s Ba8ery 1roduct+

<ew 2ntrants

!a1ital Sensitive: Manufacturin#= Advertisin#= 3istribution networ8=

Su11liers?

Basic co00odities : W"eat= Su#ar+ Increasin# 1rice

>i#" co01etition A0on# e/istin# 1layers

Many biscuit fro0 low to 0oderate ;an#e= 7i8e of ba8ery 1roduct

!usto0er

>IG>

7OW

Bi cuit Indu try !a-or p(ayer

Major Mkt Share ( Organised Sector)

Ot"ers %-$ Priya#old %($ Parle G 5($

Sunfeast @$ Britania 5%$

ABO1T PAR2E

2stablis"ed in %@,@ %st brands ' Parle Glucose and Parle Monaco Mar8et leader in 0any 1roducts Won acclai0 at t"e Monde selection since %@65($ s"are of t"e total biscuit 0ar8et %($ s"are of t"e total confectionery 0ar8et %& 0anufacturin# units for biscuits A ( 0anufacturin# units for confectioneries Parle "as lar#est suc" 0anufacturin# units in India Annual turnover ,--- crores It "as 1rovided its 1roducts to t"e 0ass wit" t"e affordable ran#e+

Par(e Product 33 Bi cuit4

Par(e Product 33 5on,ectionarie 4

Par(e Product 33 Snack 4

SWOT Ana(y i o, Par(e

SWOT Ana(y i o, Par(e

Strengths
Parle Brand= 3iversified 1roduct ran#e= 2/tensive distribution networ8+ 7ow and 0id 1rice ran#e !aterin# to 0ass= Better understandin# of consu0er 1syc"e

Weakness
3e1endence on retailers A #rocery Stores for dis1layin# diversified Parle Products on s"elf= induce i01ulsive buy 3e1endence on Parle G Bfla#s"i1 brandC

ortunities

Threats
>i8e in cost of 1roduction due to "i8e In ;aw 0aterial cost= Increasin# distribution cost= 7ocal ba8ery 1roducts= 2ntry of various new entrant= IT! etc+

2sti0ated annual #rowt" of ,-$ 7ow 1er ca1ita consu01tion= !"an#in# consu0er 1reference= Increasin# de0and for su#ar free= 3iet biscuit=

A'out Par(e 6 G Bi cuit

Parle 'G "as been a stron# "ouse"old na0e across India+ A crea0 colored yellow stri11ed wra11er wit" a cute baby 1"oto containin# %- ' %, biscuits wit" t"e co01anys na0e 1rinted in ;ed and you 8now t"ese are Parle G biscuits+ T"e #reat taste= "i#" nutrition= and t"e international Duality= 0a8es ParleG a winner+ Ti0es c"an#ed= variety of biscuits did co0e and #o but not"in# "as c"an#ed wit" t"ese biscuits+ It "as been t"e undis1uted leader in t"e biscuit cate#ory for decades+

Par(e G - Target 'a e

Parle-G is consu0ed by 1eo1le of all a#es= fro0 t"e ric" to t"e 1oor= livin# in cities A in villa#es+ W"ile so0e "ave it for brea8fast= or ot"ers it is a co01lete w"oleso0e 0eal+ or so0e itEs t"e best acco01ani0ent for tea= W"ile for so0e itEs a way of #ettin# c"ar#ed w"enever t"ey are low on ener#y+ Parle co01any 1ractices 0ass 0ar8etin# for Parle- G w"ic" a11eals to 0asses+ It is a 1roduct li8ed by everyone and does not cater only to a s1ecific #rou1 or 1art of t"e w"ole 0ar8et+ T"us it is 0ass 1roduction= 0ass distribution and 0ass 1ro0otion of Parle- G for all buyers+

5on u!er p yc+e and Par(e - G

Parle-G is consu0ed by 1eo1le of all a#es= fro0 t"e ric" to t"e 1oor= livin# in cities A in villa#es+ W"ile so0e "ave it for brea8fast= for ot"ers it is a co01lete w"oleso0e 0eal+ or so0e itEs t"e best acco01ani0ent for c"ai W"ile for so0e itEs a way of #ettin# c"ar#ed w"enever t"ey are low on ener#y+

Par(e 6 G33 a a Brand

T"e brand is associated wit" t"e 1ositive values of life li8e "onesty= s"arin# and carin#+ T"e incredible de0and led Parle to introduce t"e brand in s1ecial branded 1ac8s and in lar#er festive tin 1ac8s+ It is synony0ous to ener#y A nutrition+ It "as beco0e a 1art of t"e daily lives of 0any Indians+ It wasnEt a biscuit any 0ore+ It "ad beco0e an icon+ Parle G conFures u1 fond 0e0ories across t"e len#t" and breadt" of t"e country+ Be it a bi# city or a re0ote villa#e of India= t"e Parle G sy0boliGes Duality= "ealt" and #reat taste+

Par(e - G and Price !i7

Parle G "as ado1ted t"e Mar8et Penetration strate#y i+e+ low 1rice alon# wit" ca1turin# of a lar#e 0ar8et Also t"ey focus on 1rovidin# #ood Duality 1roducts at t"e sa0e ti0e= w"ic" 0eans it uses t"e value 1ricin# 0et"od+ T"e value-for-0oney 1ositionin# "el1s #enerate lar#e sales volu0es for t"e 1roducts+ Parle G is available in ;e %=;s ,= ;s & to ;s ,( 1ac8et Profit 0ar#in for distributors is &$ and for retailers is %--%,$ Parle-G 0aintained its 1rice of ;s+&+-- for t"e last %, yrs A "as seen t"e variation in its sales due to increase in 1rice by 0ere (-1+

Par(e - G and P(ace !i7

T"e e/tensive distribution networ8= built over t"e years= is a 0aFor stren#t" for Parle Products+ Parle G biscuits are available to consu0ers= even in t"e 0ost re0ote 1laces and in t"e s0allest of villa#es wit" a 1o1ulation of Fust %(--+ Parle "as nearly %=(-- w"olesalers= caterin# to &=,(=--- retail outlets directly or indirectly+ A two "undred stron# dedicated field force services its "u#e w"olesalers A retailers networ8+ Additionally= t"ere are 5% de1ots and !A a#ents su11lyin# #oods to t"e wide distribution networ8+ actories at strate#ic locations A 2stablis"0ent of 0anufacturin# units in rural areas

Par(e - G and pro!otion !i7

Ad!ertising " It was advertised 0ainly t"rou#" 1ress ads+ T"e co00unication s1o8e about t"e basic benefits of ener#y and nutrition+

In %@.@ Parle-G released its H3adaFiI co00ercial w"ic" was a "u#e success and was aired over a 1eriod of 4 years+ T"e co00unication s1o8e about t"e basic benefits of ener#y and nutrition+

Par(e - G and pro!otion !i7 &contd44)

T"e ne/t level of co00unication associated t"e brand wit" t"e 1ositive values of life li8e "onesty= s"arin# and carin#+ Just a few 0ont"s bac8 a re0inder TK co00ercial was launc"ed for Parle-G w"ere t"e 1roduct is bein# called L"industan 8i ta8at

;ecently Parle G "as started t"e use of celebrity in t"eir advertise0ents

Par(e - G and pro!otion !i7 &contd44)

Sales ro#otion " 2very year it "olds day fairs at branded venues w"ere
#a0es and fun events are or#aniGed for t"e e01loyees of Parle and t"eir fa0iliesM w"ere Parle 1roducts are #iveaway 1riGes+

Pu$lic relations " Parle "as done t"e followin# for en"ancin# 1ublic
relations: In t"e year %@@6= Parle-G s1onsored t"e tele-serial of t"e Indian su1er"ero= Shakti#aan t"at went on to beco0e a "u#e success+ In t"e year ,--,= a national level 1ro0o - `Parle-G Mera Sapna Sach Hoga' was run for a 1eriod of 4 0ont"s+ T"e 1ro0o was all about fulfillin# t"e drea0s of c"ildren+ Parle Saraswati %andana= one of its initiatives= is an inter-sc"ool contest based on t"e Saraswati PuFa celebrations+ Since it started in ,--, it "as seen a tre0endous increase in 1artici1atin# eac" year= wit" entries co0in# fro0 sc"ools of West Ben#al+ Parle "ad introduced t"e novel 1ro0otion called Parle &olu &alata contest in ,--(+ BGolu 0eans 3oll A Galata 0eans 3"a00al+C

Par(e - G and 5o!petitor

'o# etition to Parle ( & is fro# following layers ) "

*ets do strategic #a

ing on following ground )

Price ( +istri$ution, -utrition content ( Brand, Inno!ation ( Technology, Packaging.

Par(e - G and 5o!petitor Price 6 8i tri'ution

>IG>

P;I!2

Marico >orlic8s

Sunfeast Priya#old Britania Parle-G

7OW 7OW

3IST;IB9TIO<

>IG>

Par(e - G and 5o!petitor Nutrition content 6 Brand

>IG>

Parle-G Britania

<9T;ITIO< !O<T2<2T

Priya#old >orlic8s Marico

Sunfeast

7OW 7OW

B;A<3

>IG>

Par(e - G and 5o!petitor Inno0ation 6 Tec+no(ogy

>IG>

Parle-G Britania Priya#old Sunfeast >orlic8s Marico

I<<OKATIO<
7OW POO;

T2!><O7OG*

A3KA<!23

Par(e - G and 5o!petitor Packaging

Parle-G Britania Priya#old Sunfeast >orlics Marico

POO;

PA!NAGI<G

A3KA<!23

!"#$%&G &"'S

Par(e - G and 5+a((enge

Par(e - G and 5+a((enge

Increasin# 1rices of basic ;aw 0aterial li8e = Su#ar= W"eat= Mil8= Mil8 1owder+ T"is leadin# to increase in 0anufacturin# cost of t"e biscuits+ Parle G very 1rice sensitive 1roduct+ S0all increase in 1rice Bby (- 1aiseC in 1ast "ad seen "i#" decline in sales+ Should Parle increase rice of flagshi $rand PA/*0 &1

Par(e - G and Group ugge tion

S"ould 8ee1 t"e 1rice of Parle G sa0e and increase 1rice of ot"er "i#" end variant 1roducts li8e= Milano= >ide n See8= Bourbourn+ >i#" end 1roducts can absorb t"e increased 1roduction cost= T"is will "el1 to cater to e/istin# 0ar8et wit"out 1rice c"an#e+

Par(e - G and 5+a((enge

2ven t"ou#" t"e Parle is 0ar8et leader in t"e se#0ent= ot"ers are also tryin# to ca1ture t"e c"un8 of 0ar8et s"are+ a8e brands li8e Parel G= Parle Jee tried to e/tract 0ar8et s"are+ >ow ever only serious co01etition faced by Parle G is fro0 Britania Ti#er biscuit+

5o!parati0e Ana(y i o, Par(e - G and Britannia Tiger

5o!parati0e Ana(y i o, Par(e - G and Britannia Tiger

<earest co01etitors in Glucose !ate#ory+ HTi#erI #ained ,. $ Mar8et S"are in %-- #ra0 Glucose biscuit se#0ent in a s"ort s1an of 6 years B%@@6 ' ,--&C K2;S9S HParle GI establis"ed since 4- years ' (6 $ Mar8et S"are in t"is se#0ent+= In ,--4 ' -6 Parle G raised 1rice for its %-- #ra0 1ac8 by (- 1aise Bi+e+ ;s+ &+(-C= w"ile Ti#er 0aintained its 1rice at ;s+ &O-+ /0S2*T Sales of Parle G di11ed to Ti#er+ !usto0ers of Parle G tended to switc"over to Ti#er+ PA;72 G is "i#"ly 1rice sensitive since it caters to t"e botto0 of t"e 1yra0id+ >OW2K2; )))+

5o!parati0e Ana(y i o, Par(e - G and Britannia Tiger

PA;72 Gs P9A7IT* Q B;A<3 7O*A7T*
Percentage o, Re pondent

5 o ! p a ri o no ,T ig e rA n dP a r(e-GM i(k yT a te
T ig e r M i(k yT a te
> : 4:

P a rle -G

< %4: 9 64: ; 4: % % 9 4: A2 itt(e ? ig+ % @ u tR ig + t 6 4: A2 itt(e2 o * % V ery2 o *

9 #4:

= : 4: 5 a n At S a y

V er y? ig +

N o 4o ,R ep o n d en t"

T ig er -9 % %

P a r (e G -9 % %

;2S2A;!> SA*S PA;72 G !9STOM2;S P;2 2; PA;72 G OWI<G TO ITS MI7N* TAST2 What should Parle & do to sustain the #arket leader osition1

Par(e - G and Group ugge tion

!oncentrate on rural 0ar8et= w"yR ;ural 0ar8et 1enetration is (- ' 4($ Parle G 0ar8et reac" very "i#" but due to distribution networ8 !onsu0er 1syc"e: ;eco#niGe <ot as Parle G but )as biscuit 8a 1uda+ <eed to increase awareness about t"e PA;72 G as B;A<3+ >owRRR

Par(e - G and Group ugge tion

Tar#et youn# #eneration= i+e+ sc"ool #oin# c"ildren= Associate wit" various Govern0ent initiative li8e= Pri0ary 2ducation sc"e0e= <ational ;ural "ealt" 0ission centres= Mid-day 0eals bein# serve in 1ri0ary sc"ool=

T"is will "el1 in Brand ;e#istration= Associate Parle G as "ealt" food= and co01lete nutrition 1ac8a#e)