Marketing Strategy

Group - 6
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
PRESENTATION OVER VIEW
Introduction on Bicuit Indutry
Bicuit !arket in India " R #$%%%-crore &R #%-'i((ion)
Annua( gro*t+ rate o, Bicuit Indutry a ,o((o*"
$ Growt"
0
2
4
6
8
10
12
14
16
18
2003-04 2004-05 2005-06 2006-07 2007-08
% Growth
Steady #rowt" of %& ' %( $ annually) *r+ ,--.)+e/e01tion fro0 !entral 2/cise 3uty)
Annua( production Bicuit Indutry
-
,
&
4
.
%-
%,
%&
%4
%.
,--5--& ,--&--( ,--(--4 ,--4--6
Annual Production of Biscuit in India
7a8" MT
*o* #rowt" s"ows risin# consu01tion in India)
Bicuit Indutry pro,i(e
Two Sectors of Biscuit Industry
Or#anised Sector
4-$
9n Or#anised
Sector
&-$
Or#anised : 9nor#anised :: &- : 4-
Introduction on Bicuit Indutry
;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#
Bicuit Indutry !a-or p(ayer
!o01etitive
;ivalry
Wit"in
industry
!o01etitive
;ivalry
Wit"in
industry
Porter. /i0e /orce !ode(
Bar#ainin# 1ower
Of su11liers
Bar#ainin# 1ower
Of su11liers
Bar#ainin# 1ower
Of !usto0er
Bar#ainin# 1ower
Of !usto0er
T"reat of <ew
2ntrants
T"reat of <ew
2ntrants
T"reat of
Substitute
T"reat of
Substitute
>i#" co01etition
A0on# e/istin# 1layers
>i#" co01etition
A0on# e/istin# 1layers
Porter. /i0e /orce !ode(
Su11liers?
Basic co00odities :
W"eat= Su#ar+
Increasin# 1rice
Su11liers?
Basic co00odities :
W"eat= Su#ar+
Increasin# 1rice
!usto0er
Many biscuit fro0 low
to 0oderate ;an#e=
7i8e of ba8ery 1roduct
!usto0er
Many biscuit fro0 low
to 0oderate ;an#e=
7i8e of ba8ery 1roduct
<ew 2ntrants
!a1ital Sensitive:
Manufacturin#=
Advertisin#=
3istribution networ8=
<ew 2ntrants
!a1ital Sensitive:
Manufacturin#=
Advertisin#=
3istribution networ8=
Substitute
Traditional Indian
"o0e0ade snac8s=
Bread=
Pac8a#e Snac8s
Ba8ery 1roduct+
Substitute
Traditional Indian
"o0e0ade snac8s=
Bread=
Pac8a#e Snac8s
Ba8ery 1roduct+
>IG>
7OW
Major Mkt Share ( Organised Sector)
Parle G
5($
Britania
5%$
Sunfeast
@$
Priya#old
%($
Ot"ers
%-$
Bicuit Indutry !a-or p(ayer
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 %@6-

5($ 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 Product33 Bicuit4
Par(e Product33 5on,ectionarie4
Par(e Product33 Snack4
SWOT Ana(yi o, Par(e
SWOT Ana(yi 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
Oortunities
2sti0ated annual #rowt" of ,-$
7ow 1er ca1ita consu01tion=
!"an#in# consu0er 1reference=
Increasin# de0and for su#ar free=
3iet biscuit=

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+

A'out Par(e 6 G Bicuit
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 Parle-
G 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 'ae
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+
5onu!er pyc+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 #aing on following ground )
Price ( +istri$ution,
-utrition content ( Brand,
Inno!ation ( Technology,
Packaging.
Par(e - G and 5o!petitor
Price 6 8itri'ution
7OW
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>IG>
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2

3IST;IB9TIO<
Marico
>orlic8s
Sunfeast
Priya#old
Britania
Parle-G
Par(e - G and 5o!petitor
Nutrition content 6 Brand
7OW
7OW >IG>
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B;A<3
Marico
>orlic8s
Sunfeast
Priya#old
Britania
Parle-G
Par(e - G and 5o!petitor
Inno0ation 6 Tec+no(ogy
7OW
POO; A3KA<!23
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Marico
>orlic8s
Sunfeast
Priya#old
Britania
Parle-G
Par(e - G and 5o!petitor
Packaging
POO; A3KA<!23
PA!NAGI<G
Marico
>orlics
Sunfeast
Priya#old
Britania
Parle-G
!"#$%&G &"'S !"#$%&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 uggetion
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(yi o, Par(e - G and Britannia Tiger
5o!parati0e Ana(yi 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(yi o, Par(e - G and Britannia Tiger
5o!pariono, Tiger AndPar(e-GMi(kyTate
9#4:
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@utRig+t A2itt(e2o* Very2o* 5anAt Say
No4 o, Repondent" Tiger-9%% Par(e G-9%%
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Tiger Parle-G Mi(kyTate

PA;72 Gs P9A7IT* Q B;A<3 7O*A7T*
;2S2A;!> SA*S PA;72 G !9STOM2;S P;22; PA;72 G
OWI<G TO ITS MI7N* TAST2
What should Parle & do to sustain the #arket leader osition1
Par(e - G and Group uggetion
!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
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=
Par(e - G and Group uggetion
T"is will "el1 in
Brand ;e#istration=
Associate Parle G as "ealt" food= and co01lete nutrition 1ac8a#e)