BISCUIT INDUSTRY

PRESENTED BY
SHIVPRAKASH VARMA & GROUP
 Sweet or salty. Soft or
crunchy. Simple or exotic.
Everybody loves munching
on biscuits,
but do they know how
biscuits began?
The history of biscuits can be
traced back to a recipe created
by the Roman chef Apicius,in
which is
"a thick paste of fine wheat

flour was boiled and spread

out on a plate. When it had
dried and hardened it was cut
up and then fried until crisp,
then served with honey and
pepper."
Biscuits market in India : Approx. Rs
9,000-crore (Rs 90-billion)
The biscuit industry is been
experiencing steady growth of
14-15% annually.
If we see last year’s growth….



 Rural-urban penetration of Biscuit :

•
• Urban Market : 75% to 85%
• Rural Market : 50% to 65%


 Per capita consumption of Biscuits :


 INDIA 1.8 kg,
 South East Asian Countries 2.5 kg to
5.5 kg
 USA 7.5 kg


In 2008, the growth exceeded 16% mark
on account of exemption from Central
Excise Duty on biscuits.
Annual production Biscuit
Industry
Biscuit Industry profile
 Porter’s Five Force model

Threat of Threat of New

Substitute Entrants

Bargaining Bargaining
power power
Of suppliers Of Customer
 Porter’s Five Force model

•Substitute •New Entrants

•Capital Sensitive:
•Traditional Indian •Manufacturing,
•homemade snacks, •Advertising,
•Bread, •Distribution
•Package Snacks network,
•Bakery product. •
•
•

Customer
•Suppliers` •Many biscuit from
•Basic commodities : low
•Wheat, Sugar. to moderate Range,
•Increasing price •Like of bakery
• product

HIGH LOW
Biscuit Industry major players
Parle Production Factories
Competition to Parle is from following players : -
B R I T A N N I A
S U N F E A S T
P R I Y A G O L D
M A R I C O

Lets do strategic mapping on following ground :

Price – Distribution ,
Nutrition content – Brand ,
Innovation – Technology ,
Packaging .
 Parle - G and Competitors
Price – Distribution

HIGH

Mar
ico Sunf Priy
PRICE

east agol
d Brit
ania Parl
e

LOW

LOW DISTRIBUTION HIGH

 Parle - G and Competitors
Nutrition content – Brand

HIGH Parl
e
Brit
ania
Priy Sunf
NUTRITION

agol east
CONTENET

d
Mar
ico

LOW

LOW BRAND HIGH

 Parle - G and Competitors
Innovation – Technology

HIGH
Parl
e
Brit
ania
Priy
INNOVATION

agol
d Sunf
east

Mar
ico
LOW

POOR TECHNOLOGY ADVANCED

 Parle and Competitors
Packaging

Parl
Priy
Brit
e
agol
ania
Mar
Sunf
d
ico
east

POOR PACKAGING ADVANCED

Parle Products…… Confectionaries.
 Parle –G has been a strong household name across India. It is
popularly known as “ biscuit ka puda ”.
 A cream colored yellow stripped wrapper with a cute baby photo
containing 10 – 12 biscuits with the company’s name printed in Red
and you know these are Parle G biscuits.
The great taste, high nutrition, and the international quality,
makes Parle-G a winner.
Times changed, variety of biscuits did come and go but nothing has
changed with these biscuits.
It has been the undisputed leader in the biscuit category for
decades.



STP ANALYSIS
 M1 M2 M3
 
PARLE Company as a
whole inculcates P1
SELECTIVE MARKET
SPECIALIZATION
strategy.
In the diagram we P
can say blue colour 2
represents the
extent of Parle-G
i.e. Product(P) 1 for
all the 3 markets
and Hide & SeekP2P3
where it is a
product only for 1
market and the
orange is for
Krackjack biscuits
where the product
Parle-G is positioned in the minds of people
as a value for price product and also as a
low-priced product. Whereas hide & seek
has tapped a new market.
For Parle-G the company has used channel
and image differentiation tools.
Parle-G by far has the most intensive
distribution coverage as compared to any
other biscuit company in India.
Also the name PARLE has an image that
generates respect and a belief of good
quality in the minds of the buyers.

 SWOT Analysis of Parle

S W

O T
 SWOT Analysis of Parle
•Strengths
•Parle Brand ,
•Diversified product range ,
•Extensive distribution
network .
•Low and mid price range
•Catering to mass ,
•Better understanding of
consumer psyche
•Opportunities
•Estimated annual growth of
20 %
•Low per capita consumption ,
•Changing consumer
preference ,
•Increasing demand for
sugar free ,
•Diet biscuit ,
•Weakness
•Dependence on retailers &
grocery
Stores for displaying
diversified Parle
Products on shelf , induce
impulsive buy
•Dependence on Parle G
•( flagship brand )
•Threats
•Hike in cost of production
due to hike
In Raw material cost ,
•Increasing distribution
cost ,
•Local bakery products ,
•Entry of various new
entrant , ITC etc .
4 P’s
  WIDTH: PARLE PRODUCT produces biscuits, confectionares & snacks
so width 3.
 PRODUCT LENGTH of PARLE:
BISCUITS

CONFECTIONARIES SNACKS
PARLE-G MELODY JETTS
MONACO KISMI BAR SIXER
KRAKJACK POPPINS MUSTT BITES
HIDE N SEEK,HIDE N MANGOBITE TANGY TOMATO
MUSTT BITES
SEEK MILANO, GARDEN SPICE
MARIE
GOLDENCHOICE
ARCS KISMI KOFFEE MUSTT STIX
DIGESTIVE MARIE GOL GAPPA MUSTT CHIPS
PARLE 20-20, MAGIX KACCHA MANGO
BITE
MILK SHAKTI CHOX
KREAMS MAZELO
CONTD..

DEPTH for PARLE-G:

 8 Different packs 16.5G, 38.5G, 60.5G,
82.5G, 99G, 209G, 313.5G, 418G, 825G
hence depth of parle G is 9.
 Two variants: Parle-G Magix having two
flavours choco & cashew & comes in only
1 size 75gms hence depth 2. Parle Milk
Shakti has no flavour & comes in one size
of 150gms.
 So depth of Parle G is 8+2+1=11


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

Also they focus on providing good quality products at the same

time, which means it uses the value pricing method.

The value-for-money positioning helps generate large sales volumes
for the products.

Parle G is available in Re 1,Rs 2, Rs 4 to Rs 25 packet


Profit margin for distributors is 4% and for retailers is 10-12%

Parle-G maintained its price of Rs.4.00 for the last 12 yrs & has
seen the variation in its sales due to increase in price by mere
50p.

The extensive distribution network, built over the years, is a
major strength for Parle Products.

Parle G biscuits are available to consumers, even in the most
remote places and in the smallest of villages with a population of
just 1500.

Parle has nearly 1,500 wholesalers, catering to 4,25,000 retail

outlets directly or indirectly. A two hundred strong dedicated
field force services its huge wholesalers & retailers network.

Additionally, there are 31 depots and C&F agents supplying goods

to the wide distribution network.

Factories at strategic locations & Establishment of

manufacturing units in rural areas.



Advertising - It was advertised mainly through press ads. The
communication spoke about the basic benefits of energy and
nutrition.

In 1989 Parle-G released its “Dadaji” commercial which was a huge

success and was aired over a period of 6 years. The communication
spoke about the basic benefits of energy and nutrition.
The next level of communication associated the brand with the positive
values of life like honesty, sharing and caring. Just a few months back a
reminder TV commercial was launched for Parle-G where the product is being
called ‘hindustan ki takat’ .


Recently Parle G has started the use of celebrity in their

advertisements.


Sales promotion - Every year it holds day fairs at branded venues

where games and fun events are organized for the employees of Parle and
their families; where Parle products are giveaway prizes.






Parle - G and promotion mix (contd..)

 Parle My Green Planet, a Corporate social

responsibility initiative, will work across
levels – from school students to
environmentalists to media professionals and
through them educate and empower everyone
about the cause of environment conservation.


•Even though the Parle is market leader in the segment, others are
also trying to capture the chunk of market share.
•Fake brands like Parel G, Parle Jee tried to extract market share.
•How ever only serious competition faced by Parle G is from
Britania Tiger biscuit.
•
FOR PARLE-G:
FOR HIDE N SEEK:
M
A
R
K
E
B
T C
G G
R
O
STARS QUESTION MARK M
W A
T
H
T
R
R
A I
T
E
X
CASH COW DOG

RELATIVE MARKET SHARE

CRUNCHY BATTLE
V
s
Nearest competitors in Glucose Category.

“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.,

In 2006 – 07 Parle G raised price for its 100 gram pack by 50

paise (i.e. Rs. 4.50), while Tiger maintained its price at Rs. 4/-.

RESULT

Sales of Parle G dipped to Tiger. Customers of Parle G tended to

switch-over to Tiger. PARLE G is highly price sensitive since it
caters to the bottom of the pyramid.
Comparative Analysis of Parle - G and Britannia Tiger

PARLE G’s QUALITY = BRAND LOYALTY

Percentage of Respondents

ComparisonofTigerAndParle-GMilkyTaste
Tiger MilkyTaste Parle-G

75.5

40.5
26.5 29.5

3.5
2.5 6.5 15.5
0 0 0 0

VeryHigh ALittle JustRight ALittleLow VeryLow Can't Say

High

No. of Respondents: Tiger-200 Parle G-200

RESEARCH SAYS PARLE G CUSTOMERS PREFER PARLE G

OWING TO ITS MILKY TASTE

•What should Parle G do to sustain the market leader position?

 Parle G (glucose biscuit) can be promoted
using cricket amongst youth.
 Promote Parle brand through schemes such
as “Parle Gramin Swastha Yojana”.
 They should promote Parle products by
launching snacks joints along tea coffee
stalls.
 In 80% blood donation camp we have seen
Parle-G is used as glucose source after
donation. Parle G should use this as a
promotion strategy.
 Parle G can dedicate a batch of product to
condemn terror attacks and some part of
profit should be donated to defense forces.
 TRULY

D ESER V ES TO B E
C A LLE D