MARKETING STRATEGY OF PARLE-G A Project Report Submitted in the partial fulfillment of the requirement for the award of the
Degree of Bachelor of Business Administration 2007-2010
Submitted By: of: Gagan Deep Kaur
Under the Guidance Mr. Anoop Pandey
BHARATI VIDYAPEETH UNIVERSITY INSTITUTE OF MANAGEMENT & RESEARCH, NEW DELHI An ISO 9001:2000 Certified Institute “A” Grade Accreditation by NA
This is to certify that I have completed the Industrial Exposure “(MARKETING STRATEGY OF PARLE-G DELHI AND)“(BVIMR)” under the guidance of “(Ms Bhawna Dhawan)” in the partial fulfillment of the requirement for the award of Bachelor of Business Administration of Bharati Vidyapeeth University, Pune. This is an original piece of work & I have not submitted it earlier elsewhere.
Gagan Deep Kaur
“MARKETING STRATEGY OF PARLE-G)”is an academic work
done by “Gagan Deep Kaur” submitted in the partial fulfillment of the requirement for the award of the Degree of “Bachelor of Business Administration” from “Bharati Vidyapeeth University, Pune” under my guidance & direction. To the best of my knowledge and belief the data & information presented by him/her in the project has not been submitted earlier.
Ms. Bhawna Dhawan
This is to certify that the summer project titled “MARKETING STRATEGY OF PARLE-G)” is an academic work done by “(Gagan Deep Kaur)” submitted in the partial fulfillment of the requirement for the award of the Degree of “Bachelor of Business Administration” from “Bharati Vidyapeeth University, Pune”.
Dr. Sachin. S. Vernekar (Director)
TABLE OF CONTENTS
Chapter.No TOPIC 1. INTRODUCTION INDUSTRY PROFILE COMPANY PROFILE MARKETING STRATEGY FOR PARLE G RESEARCH METHODOLOGY DATA PRESENTATION AND ANALYSIS CONCLUSION & RECOMMENDATION BIBLIOGRAPHY ANNEXURE Page. No 6-7 8-10 11-31 32-40 41-43 44- 56 57-59 60 61-63
2. 3. 4. 5. 6. 7.
BISCUIT INDUSTRY IN INDIA
Biscuit industry in India in the organized sector produces around 60% of the total production, the balance 40% being contributed by the unorganized bakeries. The industry consists of two large scale manufacturers, around 50 medium scale brands and small scale units ranging up to 2500 units in the country, as at 200001. The unorganized sector is estimated to have approximately 30,000 small & tiny bakeries across the country. The annual turnover of the organized sector of the biscuit manufacturers (as at 2007-08) is Rs. 4,350 crores. In terms of volume biscuit production by the organized segment in 2007-08 is estimated at 1.30 million tonnes. The major Brands of biscuits are - Britannia, Parle Bakeman, Parle G, Elite, Cremica, Dukes, besides various regional/State brands. Biscuit industry which was till then reserved in the SSI (Small Scale Industry) Sector, was unreserved in 1997-98, in accordance with the Govt Policy, based on the recommendations of the Abid Hussain Committee. The annual production of biscuit in the organized sector, continues to be predominantly in the small and medium sale sector before and after dereservation. The annual production was around 7.4 Lakh tonnes in 1997-98 In the next five years, biscuit production witnessed an annual growth of 10% to 12%, up to 1999-00. The annual Growth showed a decline of 3.5% in 2000-01, mainly due to 100% hike in Central Excise Duty (from 9% to 16%). Production in the year 2001-02 increased very marginally by 2.75% where in 2002-03 the growth is around 3%. Anupam, Craze, Nezone,
The Union Budget for 2005-06 granted 50% reduction in the rate of Excise Duty on Biscuit i.e. from 16% to 8%. The Federation's estimate for the current year indicates a growth of approximately 8% to 9%. However the average utilization of installed capacity by biscuit manufacturers in the country has been a dismal 60% over the last decade up to 2006-07. Though dereservation resulted in a few MNCs, i.e. Sara Lee, Kellogs SmithKline Beecham, Heinz etc entering the biscuit industry in India, most of them, with the exception of SmithKline Beecham (Horlicks Biscuits), have ceased production in the country. On the other hand, import of biscuits, specially in the high price segment has started from 2000-01, but however, the quantum of imports has not so far increased alarmingly and has remained at around 3.75% of the consumption of biscuits in the country in the year 2001-02. However, recent imports from china industries cheaper verities of biscuit, needs to be examined with cautions, especially in the context of the price as the low margin based domestic industry, which is operating at 60 % of the total installed capital. Exports of biscuits from India has been to the extent of 5.5% of the total production. Export are expected to grow only in the year 2006-07 and beyond. Biscuit is a hygienically packaged nutritious snack food available at very competitive prices, volumes and different tastes. According to the NCAER(National Council Of Applied Economic Research) Study, biscuit is predominantly consumed by people from the lower strata of society, particularly children in both rural and urban areas with an average monthly income of Rs. 750.00. Biscuit can he broadly categorized into the following segments: (Based on productions of 2007-08) Glucose Marie Cream Crackers 7
The word 'Biscuit' is derived from the Latin words 'Bis' (meaning 'twice') and 'Coctus' (meaning cooked or baked). The word 'Biscotti' is also the generic term for cookies in Italian. Back then, biscuits were unleavened, hard and thin wafers which, because of their low water content, were ideal food to store. As people started to explore the globe, biscuits became the ideal travelling food since they stayed fresh for long periods. The seafaring age, thus, witnessed the boom of biscuits when these were sealed in airtight containers to last for months at a time. Hard track biscuits (earliest version of the biscotti and present-day crackers) were part of the staple diet of English and American sailors for many centuries. In fact, the countries which led this seafaring charge, such as those in Western Europe, are the ones where biscuits are most popular even today. Biscotti is said to have been a favourite of Christopher Columbus who discovered America! Making good biscuits is quite an art, and history bears testimony to that. During the 17th and 18th Centuries in Europe, baking was a carefully controlled profession, managed through a series of 'guilds' or professional associations. To become a baker, one had to complete years of apprenticeship - working through the ranks of apprentice, journeyman, and finally master baker. Not only this, the amount and quality of biscuits baked were also carefully monitored. The English, Scotch and Dutch immigrants originally brought the first cookies to the United States and they were called teacakes. They were often flavoured with nothing more than the finest butter, sometimes with the addition of a few drops of rose water. Cookies in America were also called by such names as "jumbles", "plunkets" and "cry babies".
As technology improved during the Industrial Revolution in the 19th century, the price of sugar and flour dropped. Chemical leavening agents, such as baking soda, became available and a profusion of cookie recipes occurred. This led to the development of manufactured cookies. Interestingly, as time has passed and despite more varieties becoming available, the essential ingredients of biscuits haven't changed - like 'soft' wheat flour (which contains less protein than the flour used to bake bread) sugar, and fats, such as butter and oil. Today, though they are known by different names the world over, people agree on one thing - nothing beats the biscuit! Some interesting facts on the origin of other forms of biscuits: The recipe for oval shaped cookies (that are also known as boudoir biscuits, sponge biscuits, sponge fingers, Naples biscuits and Savoy biscuits) has changed little in 900 years and dates back to the house of Savoy in the 11th century France. Peter the Great of Russia seems to have enjoyed an oval-shaped cookie called "lady fingers" when visiting Louis XV of France. The macaroon - a small round cookie with crisp crust and a soft interior - seems to have originated in an Italian monastery in 1892 during the French Revolution. SPRING-UHR-LEE, have been traditional Christmas cookies in Austria and Bavaria for centuries. They are made from a simple egg, flour and sugar dough and are usually rectangular in shape. These cookies are made with a leavening agent called ammonium carbonate and baking ammonia. The inspiration for fortune cookies dates back to the 15th and 17th Centuries, when Chinese soldiers slipped rice paper messages into moon cakes to help coordinate their defence against Mongolian invaders. NutriChoice SugarOut Sounds like yesterday when people commented that healthy foods meant "compromising on the taste." NutriChoice SugarOut is the most novel product range to have been introduced in the market. The product is not just sweet but tastes great, and yet contains no added sugar.
Central Excise Duty on Biscuits
In the Union Budget 2007-08, the Finance Minister who had imposed a 100% increase in the rate of Excise Duty on biscuit from 8% as a part of the rationalisation of CENVAT and introduction of single rate of Duty did not offer any concesison on the Budget for 2001-02. On the other hand the 50% exemption to small packs was withdrawn. During these years and in 2006, the Federation submitted strong representations to the Union Finance Minister seeking relief in the Excise Duty on biscuits, giving biscuit special treatment that it deserves on account of the exceptional nature and sensitivity to price increase. The Federation submitted its Pre- Budget Memorandum for 2009 demanding at least 50% Excise Relief. It is a matter of great satisfaction that the Govt. has, after 3 years, acceded to our demand and grated reduction in Excise Duty (from 16% to 18%) in the Union Budget for 2007-2008.
A long time ago, when the British ruled India, a small factory was set up in the suburbs of 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 1959, 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 quality.
How Parle fought to make biscuits affordable to all.
Biscuits were very much a luxury food in India, when Parle began production in 1959. Apart from Glucose and Monaco biscuits, Parle did offer a wide variety of brands. However, during the Second World War, all domestic biscuit production was diverted to assist the Indian soldiers in India and the Far East. Apart from this, the shortage of wheat in those days, made Parle decide to concentrate on the more popular brands, so that people could enjoy the price benefits. Thankfully today, there's no dearth of ingredients and the demand for more premium brands is on the rise. That's why, we now have a wide range of biscuits and mouthwatering confectionaries to offer.
The strength of the Parle Brand Over the years, Parle has grown to become a multi-million US Dollar company. Many of the Parle products - biscuits or confectionaries, are market leaders in their category and have won acclaim at the Monde Selection, since 1971. Today, Parle enjoys a 40% share of the total biscuit market and a 15% share of the total confectionary market, in India. The Parle Biscuit brands, such as, Parle-G, Monaco and Krackjack and confectionery brands, such as, Melody, Poppins, Mangobite and Kismi, enjoy a strong imagery and appeal amongst consumers. Be it a big city or a remote village of India, the Parle name symbolizes quality, health and great taste! And yet, we know that this reputation has been built, by constantly innovating and catering to new tastes. This can be seen by the success of new brands, such as, Hide & Seek, or the single twist wrapping of Mango bite. In this way, by concentrating on consumer tastes and preferences and emphasizing Research & Development, the Parle brand grows from strength to strength. The Quality Commitment Parle Products has one factory at Mumbai that manufactures biscuits & 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 facilites in India. Parle Products also has 14 manufacturing units for biscuits & 5 manufacturing units for confectioneries, on contract. All these factories are located at strategic locations, so as to ensure a constant output & easy distribution. Each factory has state-of-the-art machinery with automatic printing & packaging facilities. All Parle products are manufactured under the most hygienic conditions. Great care is exercised in the selection & quality control of raw materials, packaging materials & rigid quality standards are ensured at every stage of the manufacturing process. 12
The Marketing Strength The extensive distribution network, built over the years, is a major strength for Parle Products. Parle biscuits & 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 & retailers. Additionally, there are 31 depots and C&F agents supplying goods to the wide distribution network. The Parle marketing philosophy emphasizes catering to the masses. We constantly endeavour at designing products that provide nutrition & fun to the common man. Most Parle offerings are in the low & 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 upmarket, urban consumers. And in this way, caters a range of products to a variety of consumers. The Customer Confidence The Parle name conjures up fond memories across the length and breadth of the country. After all, since 1959, the people of India have been growing up on Parle biscuits & sweets. Today, the Parle brands have found their way into the hearts and homes of people all over India & abroad. Parle Biscuits and confectioneries, continue to spread happiness & joy among people of all ages. The consumer is the focus of all activities at Parle. Maximizing value to consumers and forging enduring customer relationships are the core endeavours at Parle.
Awards - Monde Selection
Year 1959 (Brussels) 1962 (Geneva) 1973 (Paris)
Products Cheeslings Monaco Gluco Monaco Gluco Cheeslings Cheeslings
Rank Gold Gold Silver Gold Silver Silver Silver Gold Silver Gold Gold Silver Trophy Of The International High Quality Gold Gold Silver Silver Gold Gold Gold Silver Gold Gold Gold Gold Gold
Monaco Gluco Cheeslings Monaco Gluco Monaco Monaco Cheeslings Gluco Krackjack Monaco Cheeslings Krackjack Gluco Gluco Monaco Cheeslings Krackjack Krackjack
Monaco Cheeslings Gluco Krackjack 1980 (Vienne) Cheeslings Monaco Gluco Cheeslings 1981 (Amsterdam) Monaco Gluco Krackjack Cheeslings 1982 (London) Monaco Krackjack Gluco Cheeslings 1983 (Rome) Monaco Krackjack Gluco Gluco 1984 (Madrid) Monaco Krackjack Cheeslings Gluco Monaco 1985 (Lisbon-Portugal) Mini Recipe Krackjack 1986 (Geneva) Gluco
Gold Gold Silver Gold Gold Gold Silver Palmes(Gold) Gold Gold Gold Gold Gold Gold Gold Gold Gold Gold Silver Gold Gold Gold Palmes(Gold) Gold Gold Cheeslings Gold 57 Gold Silver Gold
Monaco Mini Recipe Krackjack Marylong Gluco Krackjack 1987 (Bruxelles) Monaco Mini Marylong Monaco Cheeslings 1988 (Athens) Marylong Gluco Krackjack Gluco Krackjack Monaco 1989 (Luxembourg) Marylong Cheeslings Melody Fudgy Cheeslings Rol-A-Cola Krackjack 1990 (Luxembourg) Monaco Gluco Poppins Melody
Gold Cheeslings Gold 57 Gold Silver Silver Gold Gold Gold Cheeslings Gold Gold Gold Gold Gold Silver Bronze Gold Gold Gold Silver Gold Gold Gold Grand Twist Gold Gold Silver Silver Bronze wrap Gold Gold with Palm leaves
Melody Kismi Mango 1991 (Barcelona) Rol-A-Cola Gluco Krackjack Monaco Cheeslings Gluco Krackjack 1993 (Amsterdam) Monaco Cheeslings Nimkin Gluco 1996 (Brussels) Krackjack Monaco Cheeslings Gluco Monaco 1998 (Paris) Krackjack Supermilk Cheeslings Gluco Monaco 1999 (Roma-Italy) Krackjack Supermilk Cheeslings 2000 (Lisboa) Gluco Monaco Toffee
Silver Bar Bronze Bite Gold Gold Gold Silver Gold Gold Gold Gold Gold Gold Gold Gold Gold Gold Gold Gold Gold Gold Silver Grand Gold Silver Grand Gold Gold Gold Bronze Grand Gold Gold
Krackjack Supermilk Cheeslings Gluco Monaco 2002 (Brussels) Krackjack Supermilk Cheeslings Gluco Monaco 2004 (Brussels) Krackjack Cheeslings Sixer Jeffs Gluco Krackjack 2006 (Brussels) Monaco Sixer Jeffs Cheeslings Parle-G 2007 (Brussels) Krackjack Monaco Hide & Seek Parle-G Krackjack 2008 (Brussels) Monaco Hide Marie Choice &
Gold Gold Gold Gold Gold Gold Grand Gold Gold Gold Gold Gold Gold Silver Gold Gold Gold Gold Gold Gold Gold Gold Gold & International High Quality Trophy Silver Gold Gold Gold Seek Silver Gold Gold
The major products offered by Parle-G industries are the following:
1. Brand Name: GoodDay and Marrie from Parle Gare stable and are the most established brand in biscuit segment being equated for biscuits for long time. Now the brand has taken a dent though among the present generation with competitors coming up with more powerful advertising campaigns and offering more variety. 2. Styling & Packaging: Parle Gofferings have the innovative designs and packaging as compared to what is offered by the competitors. As it's a variety seeking product the styling and packaging helps in getting more customers. 3. Quality: Parle Gname is associated with quality. The offerings from Parle Gare of best quality when it comes to taste and hygiene. Under it's mission statement "eat healthy think better"
Parle-G There are always some kids who seem smarter than the rest. Ever wonder how they got to be that way? If you had to think real hard for the answer, then probably you've never eaten Parle-G. Parle-G is the new generation's official power supply. Providing kids with the vital vitamins and minerals necessary for all round mental and physical development. Apart from being the world's largest selling biscuit, Parle - G is the winner of 8 Gold and 11 Silver awards at the Monde Selection Awards – the global standard for quality in Food category. Parle-G Magix What is the power of taste? Can it get government officers to get your papers through faster? Probably! Can it help you make friends and influence people? It's worth a shot! Can it land you a lead role in a blockbuster movie, even if you can't act? 20
Fact is, people will do anything for a taste of Parle-G Magix. But the real question is, will you be willing to share your packet of Parle-G Magix to find out exactly how much power you can exert? With two delicious tastes - Choco & Cashew, Parle-G Magix has put great power in your hands. Go ahead & wield them wisely. Parle-G Milk Shakti What have you heard about Parle-G Milk Shakti? Think hard. Ok, now eat a biscuit. Got it? Yes, you're absolutely right. It aids mental stimulation. And energises the body too. Now try and memorise this - it is the only milk biscuit with the goodness of honey.Should be unforgettable, once you bite into one of these power-packed biscuits.
Krackjack A little sweet - A little salty… That's what makes Krackjack very, very delicious! This delightful biscuit is acclaimed in India and across the world for its controversial sweet and salty taste. Krackjack has won 11 Gold, 3 Silver and 1 Bronze award at the 'Monde Selection'. You can enjoy Krackjack any time plain or with a host of beverages like tea, coffee or milkshakes. Monaco Zabardast Zeera To add some spice to life, have the exciting variant of Monaco - The Zabardast Zeera Flavour. The same light salted biscuits that lift your spirits now comes delicately seasoned with Zeera. Relish this unique taste at all times of the day.
Marie Choice More and more people are now discovering the pleasures of a cup of hot steaming tea. Or so it seems. In reality they are actually using (misusing) tea as a ready excuse to indulge in another packet of Parle Marie Choice. Whatever the reason, Parle Marie Choice has fast become a preferred teatime accompaniment. Find out for yourself over a cup of tea. After all , chai toh hai bahana.
Hide & Seek Let your taste buds indulge in the sinful pleasure of a delightful game. Seek out the chocolate chips that aren't really hidden. And relish a delectable experience called Hide-&-seek - tasty itna, ki dil aajayee. As you crunch into it, these chips melt in your mouth. Try as you might, you just can't hide from the sheer delight of munching a mouthful Fun Centre There might have been times when you were unsatisfied with the amount of cream in the middle of cream biscuits. With Parle Fun Centre, you'll have no such problems. A delicious biscuit filled with cream till the edges, ensuring that it has the highest 22
cream content in its category. Available in a variety of mouthwatering, lip-smacking flavours like chocolate, butterscotch, strawberry and milk cream, these irresistible cream biscuits whet your appetite NutriChoice SugarOut This is because NutriChoice SugarOut is sweetened with "Sucralose," derived from sugar, which provides the same sweetness as any other biscuit, without the added calories of sugar. This range is available in 3 delicious variants namely Litetime, Chocolate cream, and Orange cream, targeted towards all health sensitive people. It is also relevant for consumers with sugar related ailments. We are sure that you will be pleasantly delighted with its great taste and equally surprised to know that it has no added sugar. Don't be taken for a ride when you read "Sugar Free" label on many biscuit packs marketed in India or abroad. Even with 100% no-added sugar, wheat-cereals in biscuits have their own natural sugar content. Parle Ghas chosen to represent these biscuits with "No Added Sugar" claim, as there is no added sugar in the processing of NutriChoice SugarOut. Nutri Choice Digestive Biscuit Nothing can be more difficult than making small efforts in our daily life towards healthy and active living. 24/7 we are engrossed in our busy schedules; skipping meals, missing walks, along with inadequate sleep and frequently eating-out, all take a heavy toll on our health. At least with the new and improved NutriChoice Digestive Biscuit, we have one less thing to worry about. Made with 50% whole-wheat and packed with added fibre (10% of our daily dietary needs), these delightfully tasty biscuits are amongst your healthiest bites of the day. In your next visit to a shop just look out for its Golden-green international carton pack. Try one and you'll know that you've made one smart choice - NutriChoice. 23 for more, and also make for a perfect dessert.
Treat Fruit Rollz
So go on and treat yourself to the lip-smacking snack! New Parle-G Milk Bikis Milk Bikis, the favorite growth partner of Kids, now brings greater value and delight to all with its new product and pack design. Recently re-launched in its existing Southern & Eastern markets, and extended across India, the new Milk Bikis is all set to add excitement and appeal to ‘nutritious’ food. Whoever said that ‘good food’ needs to look ‘dull and boring’, will just have to take a look at Milk Bikis. With a unique and attractive honeycomb design and an enhanced product experience, the new biscuit prompts the ‘Kid’s will love it’ reaction amongst mothers. The milk goodness in the recipe is now enhanced with SMART 24
NUTRIENTS – 4 vital vitamins, iron and iodine, proven to aid mental and physical development in growing kids. The premium packaging, besides appealing to kids, also ensures that the biscuits remain fresh and crisp. So, whether its breakfast time or snack time at school, rest assured that kids will look forward to munching these crunchy, milky biscuits which even helps in their development. And yes, adults won’t be far behind in reaching out for a pack! Parle-G 50-50 Pepper Chakkar The launch of the latest 50-50 variant left everybody guessing "What it is?" From TV ads, radio, outdoor and in-store display materials to events, a website and SMS and email blasts, traditional and new media were blended synergistically to create excitement and curiosity about the unique taste of the biscuit. The tangy and distinctive pepper flavoured biscuit, that's thin and crispy and more like a snack, caught the imagination of a younger audience craving something to nibble on. The 50-50 Pepper Chakkar launch is truly a case of leveraging the marketing mix to best advantage. Parle-G profits up 125 % in Q2; growth momentum continues Mumbai, October 23rd, 2007: Parle-G Industries Ltd. (PARLE G ), one of India’s leading food Companies, reported sales of Rs. 6,588 MM for the quarter ended 30th September 2008, reflecting 20% growth over the corresponding quarter last year. Net Profit for the quarter at Rs. 485 MM was more than double for the corresponding quarter last year of Rs 212 MM. For the half year ended 30th September 07, revenue grew 19.6% to Rs. 12,356 MM, while net profit at Rs 846 MM was 64.6% higher than last year. Commenting on the performance, Ms. Vinita Bali, Managing Director, said, “We continue to build on the growth momentum of last year. We have added 340 basis points to our margin through higher price realization as well as innovation. The increase in profit has been achieved despite the continuing and unprecedented increase in prices of key commodities like flour, oils & dairy products.” During the quarter, the Company launched ‘Treat Choco Gelo’, an extension of the Treat franchise with ‘double masti’ of chocolate & caramel and also 25
introduced a range of premium indulgence cookies under ‘Pure Magic’ brand. Investment in Advertising and Sales Promotion has been increased by 50% to fuel the innovation led growth.
MEASURES UNDERTAKEN BY GOVERNMENT
The Food Processing Industry have been experiencing the adverse affect of multiplicity of various Acts/ Rules and Regulations for food standards under the Prevention of Food Adulteration Act Standards of Weights & Measures Act, Food Products Order, the Meat Products Order, the Bureau of Indian Standards & MMPO (Milk & Milk Product Order), etc. affected the Food & Food Processing Sectors. They need to be modernized & converged. As a consequence of various representations of industry, the Govt. of India has decided to set up a Group of Ministers (GOM) to propose legislation and other changes for preparing a Modem Integrated Food Law and related regulations. The Ministry of State for Food Processing Industries is the Nodal Ministry to coordinate the Parle G l. 26
Our federation submitted its recommendations and suggested to placed before the Group of Ministers, covering the broad frame work required for the food legislation as well as specific issues such as: The main objectives of the new Integrated Food Laws & its structure Methodology of development of Standards Provisions of Labelling Acceptance of a basic list of additives Matters relating to GMP(Good Manufacturing Practice), GHP(Gud Health Plan) Issues related to Codex Procedure for sampling& launching of Prosecutin Grading of violations according to the nature of discrepancy. Recent Changes / Amendments Prevention of Food Adulteration Rules The Ministry of Health & Family Welfare, Govt. of India vide its Notification No. GSR 908 (E) Dt. 20.12.2008 has provided for printing of statutory symbol on all products containing vegetarian ingredients. The notification came into effect from 20 June 2008. As members may be aware the Govt. has earlier amended PFA Rules vide notification No. 245(E) Dt.4.4.2001 provided for statutory printing of the symbols of food packages containing non vegetarian ingredients. This notification has already come into effect from 4 October 2008. Our Federation along with apex organizations such as CII(Confederation Of Indian Industry) & CIFTI (Confederation Of Indian Food Trade & Industry)have represented to Hon'ble Union Minister for Health and Family Welfare seeking extension of a minimum period of 6 months for implementation of the notification, particularly on account of hardships in printing vegetarian symbol in advertisements. A delegation from the industry met the Secretary, Ministry of Health and Family Welfare and apprised him of the hardships faced by industry. Further follow up is in hand.
Prevention of Food Adulteration Act / Rules
Members reported various instances where the PFA authorities in the States are adopting penal action, even in cases of very minor offences / errors under the PFA 27
Rules. FBMI (Federation Of Biscuit Manufacturer Of India) suggested that such minor errors etc should be compounded, avoiding prosecution, harassment and resultant losses to biscuit units. This issue has also been referred to CII (Confederation Of Indian Industry) & CIFTI (Confederation Of Indian Food Trade & Industry) for further follow up.
Introduction of HACCP/GMP/GHP
The Govt. of India (Ministry of Health), has formulated proposals to introduce the concepts of Hazard Analysis Control Convention Procedures (HACCP), Good Manufacturing Practices (GMP) and Good Hygienic Practices (GHP), as a step towards eventual adoption in the various states in accordance with the International Codex Alumnus, in the context of trade terms and regulatory, measures under the WTO regime. After discussions with FBMI and other organizations, the Dept of Health constituted Sectoral Groups on various categories of food processing industries. The Sectoral Group on Bakery Products consisted of FBMI ((Hazard Analysis Critical Control Point) Federation Of Biscuit Manufacturer Of India), as Convener and FBMI and SIB as members. After detailed deliberations, the Federation submitted our comments and suggestions, highlighting the hardships that the biscuit units would face in the event of statutory enforcement of HACCP/GMP/GHP. The Federation suggested that the concepts of HACCP etc should be made voluntary in the first two/three years, keeping in view the ground realities in the bakery sector and due to the fact that the implementation of HACCP/GMP/GHP may be beyond he financial and technical capabilqities of majority of the biscuit manufacturers and compulsory introduction of these regulations would adversely impact the via Parle G ity and may lead to closure of a large number of bakeries in the country. FBMI, after detailed deliberations by the Executive Committee, suggested to the Govt. of India that, in the first instance projects for imparting training to the Managers/Executives and workforce in the bakery industries should be organized so as to create awareness
and knowledge on these complex regulatory aspects and educate the personnel in the industry on various aspects of HACCP etc.
Unified Food Laws – Need for
As members are aware, the food processing industries, including Biscuit / Bakery segment, are subjected to and administered by a large number of statues i.e. PFA Act / Rules, Weights & Measures Act, Packaged Commodities Rules, MMPO(Milk & Milk Product Orders) under Essential Commodities’ Act / Rules, Agmark, BIS etc. There are much multiplicity of implementing / enforcing Agencies / Departments for watch one of these Acts and Rules, both at Central and State levels. Unfortunately, many a time there are instances of overlapping and even contradictions between such Agencies / Departments. PFA Act / Rules are recipe based, and focus on prosecution / penal action, even for minor / technical errors etc. which are also different in the States. Similarly, in the Standards of Weight & Measures Act and PC Rules, there have been plethoras of amendment, and proposals for more restrictions on the food processing industries including Biscuit and this has resulted in unavoidable hindrances in the development and growth of the industries. It is in this context that our Federation in close coordination with CIFTI, CII, FICCI, PHDCCI urged he Government to evolve a single Integrated Food Law, encompassing the existing legislation’s mentioned above, with main focus on development and promotion of the Food Processing, Agro Based industries in the country, paving way for creation of large employment generation, consumption of varied types of safe food products of good quality, at reasonable prices benefiting consumers particularly those in the lower and middle segments of the society. Exports and better capacity utilization also need to be encouraged in the proposed Integrated law, which would also result in higher productivity and better revenue for the Central and State Governments. As a result of such concerted efforts and presentations by organizations of industry, including AIMBA the Government constituted the Justice Venkatachalam Committee 29
to review the entire gamut of the existing Food Laws and to recommend the ways ad means and basis for unifying these Acts / Rules and regulations into an Integrated Food Law (Act). After due consideration of all aspects and by inviting suggestions from Govt., Industry and Commerce as well as consumers and other important sections of the community at large, the Committee submitted its report containing detailed suggestions / recommendations on the imperative need for integrating the existing multiple food laws.
Accordingly, the Govt. formed a Group of Ministers with the Ministry of Food Processing Industries as the nodal point and this comprehensive exercise has resulted in the Draft Food Parle G l 2002 presented to the Group of Ministers. The said Draft Food Parle G l 2002 has been formulated to “provide for the production, manufacture, processing and sale of safe and suitable food systematic and scientific development of food industry, introducing new technologies, imparting new inputs of market dynamics, and to create an enabling environment for innovation and value additions, ensuring high degree of objectivity and transparency and to provide for the establishment of a Food Development an Regulatory Authority of India an the Council for Food Standards and for matters connected therewith or incidental thereto.
MARKETING STRATEGY FOR PARLE G
• Cost leadership:
It is a cost leader in its industry except in cheese and glucose biscuits where it lags behind Parle respectively. The company has undertaken modernization program in order to improve productivity. To focus resources, rationalization of brands and packs has been undertaken and the existing brands have been clustered into more cost efficient portfolio through a process of brand concentration.
• Economies of scale:
Parle G is adding capacity at regular intervals depending upon the economic environment It has the advantage of being able to source raw materials and even HIGH packaging at cheap rates because of large scale of operations. MARKET GROWTH Parle G is a star BCG as shown below: RATE
31 RELATIVE MARKET SHARE
* PARLE G
The BCG growth-share matrix shows that Parle G is a STAR BCG, being a market leader in a high growth market
FIVE FORCE MODEL FOR PARLE G
(Major MNCs likely to diversify and get into related business of Parle G
SUPPLIER’S FORCE (Very large number less of bargaining power
PARLE G PARLE BAKEMAN’S REGIONAL
(more quality suppliers, so conscious and price sensitive
Household snacks Bakery biscuits Fast food
PARLE G SUPPLY CHAIN
Supply chain Describes a longer channel stretching from Raw materials to components to final Products that are carried to final Buyers. Parle G Supply Chain include Authorized wholesaler, Superstockists, RPDs, UPDs and Retailers. The Raw Materials are converted into finished goods in the Production Units or Factories. From factories the finished goods are then sent to the Regional Depots or the Mother Depots. From here the stock reaches the Warehouse for distribution to the Authorized Wholesaler. From Warehouse or Depots the Stock either reaches the Superstockists or the Authorized Wholesalers. From Superstockists the stock goes to either UPDs (Universal Printer Driver) or
RPDs (Radiation Protection dosimetry) from where it finally reaches to the markets of Rural India. The Authorized Wholesaler buy goods from Company and from them the Stock goes to the Retailers. Retailers sell Company Products to the End Consumers. The Sale of the Stock from Depots to Authorized Wholesaler constitutes Primary Sale while the Sale of the Stock from Authorized Wholesaler to Wholesaler constitute Secondary Sale. Different rural markets have different set of Superstockists (SS) which further have RPD’s (Rural preferred Dealers) and UPD’s (Urban preferred Dealers) under them. These UPD’s are the dealers of very small regions only which are considered rural only and are not completely urban.
Sales promotion, a key ingredient in marketing campaigns, consists of a diverse collection of incentive tools, mostly short term, designed to stimulate quicker or greater purchase of particular products or services by consumers or the trade." In marketing, sales promotion is one of the four aspects of promotion. (The other three parts of the promotional mix are advertising, personal selling, and publicity/public relations.) Sales promotions are non-personal promotional efforts that are designed to have an immediate impact on sales. Sales promotion is media and non-media marketing communications employed for a pre-determined, limited time to increase consumer demand, stimulate market demand or improve product availability. Examples include: · coupons · discounts and sales · contests · point of purchase displays · rebates · free samples (in the case of food items) · gifts and incentive items 35
· free travel, such as free flights Sales promotions can be directed at either the customer, sales staff, or distribution channel members (such as retailers). Sales promotions targeted at the consumer are called consumer sales promotions. Sales promotions targeted at retailers and wholesale are called trade sales promotions.
Purpose of sales promotion.
Sales-promotion tools vary in their specific objectives. A free sample stimulates consumer trial, whereas a free management-advisory service aims at cementing a long-term relationship with a retailer. Sellers use incentive type promotions is to attract new triers, to reward loyal customers, and to increase the repurchase rates of occasional users. Sales promotions often attract brand switchers, who are primarily looking for low price, good value, or premi-urns. Sales promotions are unlikely to turn them into loyal users. Sales promotions used in markets of high brand similarity produce a high sales response in the short run but tittle permanent gain in market share. In markets of high brand dissimilarity, sales promotions can alter market shares permanently.
MAJOR CONSUMER PROMOTIONAL TOOLS
Samples: Offer of a free amount of a product or service delivered door to door, sent in the mail, picked up in a store, attached to another product, or featured in an advertising offer. Coupons: Certificates entitling the bearer to a stated saving on the purchase of a specific product: mailed, enclosed in other products or attached to them, or inserted in magazine and newspaper ads. Cash Refund Offers (rebates): Provide a price reduction after purchase rather than at the retail shop: consumer sends a specified "proof of
purchase" to the manufacturer who "refunds* part of the purchase price by mail. To promote products to consumer, company devises some scheme like discount on MRP, giving freebies with product etc. How Consumer promotional offer products differ from normal product without offer ? The product is marketed under some scheme. The packaging is different from normal product. The freebies procurement & logistics planning is additional activity. The production centers may be different from regular production centers. The distribution strategy may be different from regular one. Parle G Industries Ltd. Planned to launch six promotional offers in the month of May and June 2008. Complexities involved were promotional offers limited to some region of our country and rest of country was on normal product.The promotional offers were limited to Uttar Pradesh and Rajasthan. Objectives : To deliver right SKU (Stock Keeping Unit) & Gift item to right place in right time. To achieve internal customer satisfaction level to 95%. And to increase the consumer base for newly launched product. Marketing Department decides to run promotional offers on brands with following objectives. To penetrate market with greater share of business. To leverage Parle-G brand by having association with some other known brand. To counterattack competitor’s strategy. The consumer promotional offers are based on the principle of elasticity of demand. Following consumer promotional offers were conceptualized for May and June 2006.
PROMOTION IN RURAL MARKET
MERA RPD MAHAN CONTEST Mera RPD (Radiation Protection Dosimetry) Mahan contest was a dealer incentive contest which was designed for the dealers of the Rural market. This contest was designed to motivate the RPDs (Radiation Protection Dosimetry) and UPDs (Urban preferred Dealers) to reach their Sales target of 35,000 and 50,000 respectively. This contest was held in the month of May and June. The details of this contest are as follows: Period Scope Criteria May- Jun'06 RPDs (Radiation Protection Dosimetry) in all SURE Territories Sales target achievement for the incentive period Targets for the period to be set by the SO/ ASM in consultation with the RSM Minimum swing of 40% in May and June'06 MA sales over Jan-Mar'06 MA sales To qualify the RPD must have minimum current sales of Rs.30000 PM or the Target sales should be a minimum of Rs.30000 PM. Mechanics 1 Top RPD to be selected as the "Mera RPD (Radiation Protection Dosimetry) Mahaan" per RPD PSM PJP. This RPD to get a gift article worth Rs. 3000/- (Nokia MoParle G e Phone Proposed All other RPDs to get a gift article worth Rs. 500/- or cash if preferred 38
• • • The Company takes a lot of time in handling the UCA (Supply Chain Company) claims of the authorized wholesalers; this !eads to demotivation Warehousing norms are not followed, which accounts for high breakage The semi-sweet category accounts for the maximum turnover in the mass marketthe Tiger Anytime being a member of this category is perceived as a tow quality product; this may liquidate Parle G 's brand equity in the mass market • Parle G has positioned it's Tiger range on health and taste, but my findings show that health consciousness in the mass market is low, which means that the brand is under-positioned, since the market doesn't consider "health1 as an important benefit in biscuits • • Parle G 's strength is in mid, premium mid super-premium category; this market is approaching a saturation point Parle G 's mass market is not segmented properly; Parle G cannot afford to go all out in the mass market, the best strategy would be to concentrate on these segments of the mass market, which will account for volume sales and require minimum investment • • Performance-based incentive to motivate the sates staff is not existing in the Company Yearly incentives don't motivate the dealers of mass market brands
• • • Mass market is growing with established preference for biscuits Growing middle class in India can provide more opportunities for Parle G 's pillar brands Credit given to dealers will help Parle G in expanding the width of reach, by which the company will have a volume advantage
• • •
Taste plays an important role in mass market which can take care of price sensitivity to some extent There is low differentiation in the mass market brands There is a fairly good market for a high count salty cracker variety and a cream cracker variety in the mass market
• • De-reservation of the biscuit industry may attract foreign players who initially will try to attack the premium segment, which is already established for Parle G A characteristic feature of premium market consumer is that this segment is not brand loyal; therefore there is a chance of the consumers to shift to other brands in the near/distant future • • • Too much concentration in the mass market may affect the companies market in this established segment Mass-market venture may account for this cannibalization A large number of competitors each having respective bold in different markets of the company's pillar brands will account for high contribution/orrir
CHAPTER 3 RESEARCH METHODOLOGY
OBJECTIVE OF THE STUDY
To find out the competitive activity and merchandising through retailer of PARLE G BUISCUIT in south Delhi.
To find out the consumer preference according to retailer view. To find out the satisfaction levels towards service provide by PARLE G. To find out the major competitor of PARLE G BISCUIT.
SCOPE OF THE STUDY
FMCG Sector is a growing sector in India at high pace. Biscuit manufacturing industries has lot of scope in the Indian economy. Company manufactures according to the consumer’s interest. There is a high competition in biscuit manufacturing industry’s such as Parle-G, Sunfeast, Priya gold, etc. consumer prefers to take that product which not only satisfy him but also his colleagues, family, natives. This study helps in determining right choice for them.
DATA COLLECTION METHOD
Data collection is an elaborate process in which the researchers make a planned research for all relevant data. Data is the foundation of all market research. Data are facts may be obtained from several sources. Data can be classified as:
Primary data Secondary data
It is gathered for the first time by the researchers. If the secondary data is found to be inadequate or unavailable, the researcher goes for primary data.
COLLECTION OF PRIMARY DATA
The researcher was assigned to do a comparative study on PARLE G BISCUIT. In order to accomplish the job, the researcher adopted the two-way strategy to collect the primary data. Secondly to complete the job in a more genuine way, retailer survey was conducted sample of 30 rational retailers were taken and they were supplied with a structured non-disguised questionnaire. The idea was to seek out the market position of PARLE G BISCUIT. The data collected was collected from different retail outlets of biscuit namely: Shops Confectioners Kirana and general stores
Secondary data is the data borrowed from secondary sources by the researcher. Secondary data can be internal or external i.e, internal records of the company or information available from library and other statistical organization.
In a Market Research Project Field Work has a very vital role to play. As a matter of fact, it’s the back bone of any Market Research Project. Field work basically consists of collection of primary data. In this project, researcher had to undergo a lot of Field Work. For the purpose researcher has a visit various cinema halls, public attractive places, colleges & school canteens etc. The whole area which was to be surveyed was divided into different segments randomly. Simultaneously survey of both retailers and consumers was carried out. The researcher worked in the field for a span of one & half months. Later on whole data which was collected from field was well scrutinized & tabulated for analysis. Its interpretation has been provided in most easy to understand manner with the help of suitable diagram & charts.
CHAPTER 4 DATA PRESENTATION AND ANALYSIS
The Sale of 6 SKUs (Stock Keeping Unit) in 4 Regions namely Western UP, Eastern UP, Central UP and Rajasthan was analyzed for a Period of three months from April to June. In April, there were no Promotions on these SKUs (Stock Keeping Unit) while in the Month of May and June these SKUs were offered with Promotions. The total Sale of these SKUs (Stock Keeping Unit) without Promotion i.e. in the month of April was compared with the total Sale of these SKUs with Promotions in the month of May and June. The total Percentage increase in Sales from April to May and then subsequently from May to June was analyzed. The Effect of these Promotions on the total Sales was calculated. These promotions are launched especially for the rural marketsand therefore their effectiveness is to be tested in the rural market only. These has been introduced to increase the sale of these biscuits in rural market. The RPD’s and the UPD’s of each and every Superstockist was tracked. It was tracked that whether the RPD’s have meet their sales target of 35,000 and UPD’s of 50,000 or not. If they have not met their targets by when are they going to meet their targets and what is the reason they have not yet met their sales target. Thereafter the monthly reports of April, May and June were compared and the Percentage increase in Sale was calculated. For all the three months the Overall Sale as well as the RPD and UPD Sale was Calculated for all the four Regions. In Addition to this the the total Percentage of Stock reaching the Rural market and the Urban market was also calculated. At each and every step the Percentage increase in Sale of euery region was calculated.
The Analysis and Finding of this Projects are as follows: SALES ANALYSIS OF CONSUMER PROMOTION MATERIAL 50:50 150G TIGER KESAR KULFI 100G TIGER ROSE MILK 100G TIGER ORANGE CREAM 100G TIGER ELAICHI CREAM 100G TIMEPASS CLASSIC S.150G
TOTAL SALE(in Tonnes) 50 40 30 20 10 0
91340 50:50 150G 91344 TIGER KESAR KULFI 100G 91345 TIGER ROSE MILK 100G 91346 TIGER ORANGE CREAM 100G 91347 TIGER ELAICHI CREAM 100G 91350 TIMEPASS CLASSIC S.150G
TOTAL SALES (in Ttonnes) APRIL MAY JUNE 10 13 44 1 3 4 2 3 7 10 15 22 1 1 1 3 7 5
44 APRIL MAY 7 1 1 1 JUNE 3 5
22 10 13 4 1 3 2 3 7 10 15
It is clearly depicted from the above Graph that there has been a tremendous increase in total Sales of all the SKUs (Stock Keeping Unit) from April to June due to the Promotional Schemes offered with these SKUs during this Period. The maximum swing in the total Sale was observed for 50:50 150gm which is about 44 tonnes in June as compared to only 10 tonnes in April.Also in this region, there has been a noticeable increase in the total Sale of the Tiger Orange Cream 100 gm. The sale was increased from 10 tonnes in April to 22 tonnes in June. The Percentage increase in the total Sale of this SKU (Stock Keeping Unit) from April to June was 120%. The Total Sale of all the rest of the SKUs (Stock Keeping Unit) has also increased Marginally during this time Period.
MATERIAL 50:50 150G TIGER KESAR KULFI 100G TIGER ROSE MILK 100G TIGER ORANGE CREAM 100G TIGER ELAICHI CREAM 100G TIMEPASS CLASSIC S.150G
TOTAL SALES (in Tonnes) APRIL MAY JUNE 35 56 109 1 1 7 1 0 6 61 62 70 2 4 8 3 7 27
TOTAL SALES(in Tonnes) 120 100 80 60 40 20 0
91 340 50:50 1 50G
56 35 11 7 1 0 6
70 6162 27 8 2 4
91 346 TIGER ORANGE CREAM 1 00G 91 347 TIGER ELAICHI CREAM 1 00G
APRIL MAY JUNE
91 350 TIM EPASS CLASSIC S.1 50G
91 344 TIGER KESAR KULFI 1 00G
91 345 TIGER ROSE M ILK 1 00G
It is clearly seen from the bar Diagram that in this region, the maximum Percentage increase in total Sales was for 50:50 150gm and Timepass Classics 150gm. There has been a tremendous increase (212% for 50:50 150gm and 800%
for Timepass Classics 150 gm)in sale for these SKUs (Stock Keeping Unit) due to promotional Schemes offered with these SKUs (Stock Keeping Unit). There has been a Marginal increase in the Sale of rest of the SKUs (Stock Keeping Unit). TOTAL SALES (in Tonnes) MATERIAL 50:50 150G TIGER KESAR KULFI 100G TIGER ROSE MILK 100G TIGER ORANGE CREAM 100G TIGER ELAICHI CREAM 100G TIMEPASS CLASSIC S.150G APRIL 8 6 4 13 3 3 MAY 12 8 5 14 4 4 JUNE 88 6 6 18 9 27
TOTAL SALES(in Tonnes)
100 90 80 70 60 50 40 30 20 10 0
91 340 50:50 1 50G 91 344 TIGER KESAR KULFI 1 00G 91 345 TIGER ROSE MILK 1 00G 91 346 TIGER ORANGE CREAM 1 00G 91 347 TIGER ELAICHI CREAM 1 00G 91 350 TIMEPASS CLASSIC S.1 50G
APRIL MAY JUNE
13 14 4
In this region also, the Maximum increase in Percentage total Sales was Observed for 50:50 150 gm and Timepass Classics 150 gm. The Percentage increase in Total Sales of 50:50 150 gm from April to June due to Promotions was 1000% and for Timepass Classics 150 gm was 800%. An unusual trend in increase in sale was Observed in case of Tiger Kesar Kulfi 100 gm. There has been a increase in sale of this SKU (Stock Keeping Unit) from
TOTAL SALES (in Tonnes) April to May but there has been a Drop in the Sale from May to June. This is because of the non availability of this SKU (Stock Keeping Unit) in this Region.
MATERIAL 50:50 150G TIGER KESAR KULFI 100G TIGER ROSE MILK 100G TIGER ORANGE CREAM 100G TIGER ELAICHI CREAM 100G TIMEPASS CLASSIC S.150G
APRIL 36 8 7 16 6 2
MAY 41 10 7 13 7 13
JUNE 70 11 13 32 4 19
TOTAL SALE(in Tonnes) 80 70 60 50 40 30 20 10 0
91 340 50:50 1 50G 91 344 TIGER KESAR KULFI 1 00G 91 345 TIGER ROSE M ILK 1 00G 91 346 TIGER ORANGE CREAM 1 00G 91 347 TIGER ELAICHI CREAM 1 00G 91 350 TIM EP ASS CLASSIC S.1 50G
32 11 13 16 19
APRIL MAY JUNE
6 7 4
As it can be seen in the above chart sale of 50:50 due to promotion shoot up like anything in month of June that is a increase of around 89%. Also other SKUs (Stock Keeping Unit) like TIGER ORANGE and TIGER ELAICHI showed a decreasing trend due to unavaiParle G ity of stock of the given product.
80 70 PERCENTAGE 60 50 40 30 20 10 0
91 340 50:50 91 344 TIGER KESAR KULFI
67.7 60 50 50 40 57 43 57.9 42.1 32.3 %Rural Sale % Urban
91 345 TIGER ROSE M ILK 91 346 TIGER ORANGE 91 347 TIGER ELAICHI 91 350 TIM EPASS CLASSIC
The affect of promotion is clearly seen in the Eastern UP. The target rural sale according to superstockists contribution should be 61%. Only TIGER KESER KULFI and TIGER ORANGE are close to the target whose Rural Sales Percentage are 60% and 57% respectively. For all the rest of the SKUs (Stock Keeping Unit) the Percentage Rural Sale is very less than the targeted in this month. The SKU named TIGER ROSE MILK does not show any sale neither Rural nor Urban in this region. This is due to non availaParle G ity of this SKU (Stock Keeping Unit) in this region during the month of May. %Rural aterial 50:50 TIGER KESAR KULFI TIGER ROSE MILK TIGER ORANGE TIGER ELAICHI TIMEPASS CLASSIC Sale 6.7 18.5 5.4 28.7 16.3 20 % Urban Sale 93.3 81.5 94.6 71.3 83.7 80
100 90 80 70 60 50 40 30 20 10 0 93.3 81.5 71.3 94.6 83.7 80
%Rural Sale 28.7 18.5 6.7
91 340 50:50 91 344 TIGER KESAR KULFI
% Urban 16.3 20
91 345 TIGER ROSE M ILK 91 346 TIGER ORANGE 91 347 TIGER ELAICHI 91 350 TIM EPASS CLASSIC
The target rural percentage sale should be at least 34% according
Superstockists contribution in this area. TIGER ROSE MILK has done the least sale among all the SKUs(Stock Keeping Unit) . There should be slight increase in sales of TIGER ORANGE i.e. up to 5% so as to reach the targeted rural sale Percentage. None of the SKUs (Stock Keeping Unit) has reached the targeted Sales Percentage in the month of May. %Rural Material 50:50 TIGER KESAR KULFI TIGER ROSE MILK TIGER ORANGE TIGER ELAICHI TIMEPASS CLASSIC Sale 38.3 50 50 40 28.3 43.6 % Urban Sale 61.7 50 50 60 71.7 56.4
80 PERCENTAGE 70 60 50 40 30 20 10 0
91 340 50:50 91 344 TIGER KESAR KULFI 91 345 TIGER ROSE M ILK 91 346 TIGER ORANGE 91 347 TIGER ELAICHI 91 350 TIM EPASS CLASSIC
71.7 61.7 50 50 38.3 50 50 40 28.3 60 56.4 43.6 %Rural Sale % Urban
The target rural percentage sale should be at least 48% according to Superstockists contribution in this area. TIGER KESAR KULFI and TIGER ROSE MILK has reached their target Rural Sale Percentage. Rest all the SKUs are below the target sale Percentage. TIGER ORANGE and TIMEPASS CLASSIC are close to the targeted Sale and need slightly more efforts to reach to the targeted Percentage in the next month.
PERCENTAGE RURAL AND URBAN SALE SKU (Stock Keeping Unit) WISE IN MONTH JUNE
% %Rural Material 50:50 TIGER KESAR KULFI TIGER ROSE MILK TIGER ORANGE TIGER ELAICHI TIMEPASS CLASSIC Sale 10 10 6 12 17 45 Urban Sale 90 90 94 88 83 55
100 PERCENTAGE 80 60 40 20 0 10
91 340 50:50
83 55 45 %Rural Sale % Urban
91 344 TIGER KESAR KULFI
91 345 TIGER ROSE M ILK
91 346 TIGER ORANGE
91 347 TIGER ELAICHI
91 350 TIM EPASS CLASSIC
The target rural percentage sale should be atleast 16.8% according to Superstockists contribution in this area.Only TIMEPASS is doing exceptionally good but rest SKUs (Stock Keeping Unit) i.e. 50:50 (12.3%) and TIGER Cream(Aggregate 14.6%) are less than the target percentage. % %Rural Material 50:50 TIGER KESAR KULFI TIGER ROSE MILK TIGER ORANGE TIGER ELAICHI TIMEPASS CLASSIC Sale 47 60 71 60 50 46 Urban Sale 53 40 29 40 50 54
1. Write down the first brand name that comes in your mind regarding biscuits? According to retailers survey,customer like changes and in need to taste new consumable products. If he/she is a consumer of parle-g biscuits than not for all the time he will stick to that. If company manufactures according to consumers interest then he will definitely be satisfied. Various variants of Parle-G such as krackjack , Krack Jack crispy cream ,Monaco ,Hide & Seek ,Digestive Marie , etc
2.What others brands of biscuits can you recall?
16 14 12 10 8 6 4 2 0 1 2 Parle-G sunfeast Cremica Elite Craze Nezone Dukes Britannia
Parle-G sunfeast Cremica Elite Craze Nezone Dukes Britannia
14 3 2 1 6 1 1 2
In this survey, 14% of the consumers have keen interest in Parle-G products. Rest go to other brands out of 30%
3.What is the frequency of biscuits you take?
10 8 6 4 2 0 Once in Tw ice in thrice in a Week a Week a Week Any Others Series2 Series1
Once in a week Twicw in a week Thrice in a week Any others
5 8 9 8
Frequency of biscuits that consumer’s take is Thrice-A-Day. 1. What brand do you have on occasions?
1 6 1 4 1 2 1 0 8 6 4 2 0 Parle-G Sun Feast Priyagold Britannia Series2 Series1
Parle-G Sun Feast Priyagold Britannia
14 5 6 5
Most of the times Consumers prefer Parle-G biscuits rather than Sunfeast ,Priyagold ,etc
4.Which biscuits gets you best freshness?
1 0 8 6 4 2 0 Mariegold 50-50 Good Day Krack jack Series2 Series1
Mariegold 50-50 Good Day Krack jack
7 9 6 8
50-50 biscuits are preferred for freshness which is also light and crunchy as compare to other brands. 5.Have you any complain about the biscuits?
9 8 7 6 5 4 3 2 1 0
ra pp er s e to N o on hi gh A va i la bi l Sh ity or ta ge Ba d qu al ity O th er s
w D irt y
Dirty wrappers Price too high Non Availability Shortage Bad quality Others
2 6 2 8 7 5
8% Consumers deal with shortage problem rest deals with Dirty wrappers ,price to high ,etc
6.Which brand do you prefer mostly?
1 6 1 4 1 2 1 0 8 6 4 2 0 Parle-G Sun Feast Priyagold Britannia Series2 Series1
Parle-G Sun Feast Priyagold Britannia
14 5 6 5
14% people go for parle-g for every time of occasions. 7.Can you change your mind for others brand, if the brand is not available in shop
18 16 14 12 10 8 6 4 2 0 Yes No
Definetly consumers mind are flexible ,If Britannia is not available to particular retailer customer would like to taste something new and accordingly he can shift his taste to like parle-g biscuits.
CHAPTER 5 CONCLUSION & RECOMMENDATIONS
Sales Promotional Offers helps the company to increase the over sales of the product under promotion because consumers tend to buy in ample amount due to small duration of the promotion and feel value for their money. But through these promotional schemes company earns less margin. It also helps in widening their consumer base i.e. it attracts new triers. It creates the brand awareness among the consumers about the newly launched product like Tiger cream. Products which are less popular among the consumers like Pepper Checker are also get Promoted. It helps to increase the repurchase rate of the occasional buyers Since the promotions were designed for rural market and rural market contributes to 70% of the total market hence attracting more consumers. And turn them to loyal users It enhances brand image Since attractive promotion attracts consumers hence retailers push products under promotion rather than competitors products of same kind. Sales promotion also attracts brand switchers who are primarily looking for low price good value of premiums.
Learnings through Trade Promotions:
to persuade the RPDs and UPDs to carry the brand because they are more concentrated in making sales of the given company product so as to get maximum incentives. to persuade the RPDs and UPDs to carry more units than the normal amount as they have to reach the target sale under Mera RPD Mahaan Scheme. to induce RPDs and UPDs to promote the brand by featuring, display, and price reductions so as to attract more consumers. to stimulate RPDs and UPDs and their sales clerks to push the product than competitors products otherwise they wont be able to reach their sales target. Also Attract more RPDs and UPDs to take participate in the contest because of the incentives.
Stock out: It was observed that most of the Promotional SKUs (Stock Keeping Unit) were out of stock at most of the depots during the Promotional Period which has effected the total sales of these SKUs in these four regions tremendously. Non availaParle G ity of Freebies: It was observed that sometime during the Promotional Period the Freebies which has to be given with the main Product were not available. Due to their unavailaParle G ity the Promotion for that Particular SKU (Stock Keeping Unit) was not carried for that Period of Promotion. Allocation Problem: The allocation was the most prominent problem during this Promotion. The stocks were not allocated in the Rural and Urban markets according to their Percentage area contribution. In some areas the stock was supplied more which was not in accordance with the Percentage area contribution of that region while in some very less stock was supplied as compared to their Percentage 58
area contribution. Due to this most of the time major part of the stock was dispatched in the Urban markets which has seriously affected the Rural sales. Dispatch Problem: There was no proper schedule for dispatching & receiving of orders generated. Generally the Stocks are Dispatched late by about a week from the depots due to which the stock reaches late to the wholesalers and during that week the wholesalers face the problem of non availability and are left with very less or no stock to sell. Poor sale promotion skills: According to observations, sale was not promoted skillfully in most of the Regions. The retailers in these regions have not taken appropriate efforts so as to promote the promotional products skillfully.
As already discussed above, there are certain issues and flaws associated with Sales Promotion, so in order to implement it effectively and efficiently we would like to suggest certain recommendations to the company: Production department should make efforts to make available all of the product varieties in the depot norm wise. So that each and every variety should be available according to the generated order so as to meet the stock out problem. I recommend strong coordination between production and the sales department. So that a proper production forecast for each variety can be maintained by the production department. Proper allocation of the stock from the depot according to the Superstockists contribution so that neither there is excess stock in one region nor stock outs in other. I also recommend to increase average number of lines so that all the SKUs (Stock Keeping Unit) are available in the market. Apart from setting overall target for all the SKUs (Stock Keeping Unit), there should also be individual SKU wise target so that RPDs and UPDs are able to make sales of unfamiliar products also. To increase the sales margin the price value of the main brand should be relatively higher i.e. around thrice of the Freebie for example instead of Rs10 pack of 50:50 150G Freebie Pepper Checker should be given with Rs15 pack of 50:50. There should be a system from where different distributors can see the stock position of company and as well of other distributors. It will help the distributor in a way that if some distributors who wants the same. Contests like MERA RPD MAHAAN should be held every quarter.
Effective Planning in Marketing and Development World Class Marketing Marketing in Practice Human Resource Management Human Resource Management Human Capital Leslie Rae Kaye Thorne Blackwell C.B.Gupta T.N.Chabra Journal
a. Questionnaire 1. Write down the first brand name that comes in your mind regarding biscuits?
………………………………………. 2.What others brands of biscuits can you recall? a) ………………….. …………………… b) ………………….. …………………… c) ………………….. ……………………. d) ………………….. ……………………. 3.What is the frequency of biscuits you take? (Tick you prefer). e) ………Once in a week f) ………Thrice in a week (Tick you prefer). a) ………Parle G c) ………Sun feast b) ………Parle d) ………Parle G b) ………Twice in a week d) ……….Any others h) g). f). e)
4.What brand do you have on occasions?
5.Which biscuits gets you best freshness? (Tick your choice). g) ………Mari Gold
h) ……….Good Day
…………… Krack Jack
6.Have you any complain about the biscuits? (Just tick). i) ……. Price to highd)…Non-availaParle G ity near by j) ……. Dirty Rappers e) ………Shortage k) ……. Bad quality f) ………Others reason 7.Which brand do you prefer mostly? (Just tick). a) ………Parle G c) ………Sun feast available in shop which you prefer? (Just tick choice). a) …….Yes b) …….No Classification Data 1. Name: - ……………………………………………………… 2. Sex:- ……………Male ……………Female 3. Age: - ……………….. 4. Occupation: - …………………………. 5. Income Group:…………5,000-10,000 ………….10,000-15,000 ………..15,000-20,000. …………Above 20,000 b) ………Parle d) ………Parle G
8.Can you change your mind for others brand, if the brand is not