DECLARATION

I ASTHA AGARWAL Roll no. 0901570032 student of MBA third Semester of INVERTIS INSTITUTE OF MANAGEMENT STUDIES, Bareilly hereby declare that I have completed my summer training in Finance on the project titled

“COMPARITIVE ANALYSIS OF PARLE AND BRITANNIA” is my original work and the same has not been submitted for the award of any other diploma or degree.

Place: Bareilly Date: 17-08-2010

(ASTHA AGARWAL)

PROJECT REPORT ON

comparative analysis of parle and britannia IN PARLE BISCUITS PVT LTD.
Submitted in Partial Fullfiment of the Requirement of MBA Program of INVERTIS INSTITUTE OF MANAGEMENT STUDIES

Project Guide
mr. shishir shrivastava (hr executive) Submitted by ASTHA AGARWAL
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PREFACE
Work experience in an in-dispensable of every professional course. As we all know that without the practical experience or knowledge the theoretical knowledge has become worthless. So the practical training in any organization is must for each and every individual who is undergoing management course. Without the practical exposure one can not consider himself as a qualified capable manager. “PARLE” (A unit of biscuit production industry) Entering in the organization is like stepping into altogether a new world. At first very thing seems strange and unheard but as the time passes, one understands the concept and working the organization and there by develop the professional relationship. The main motto of this training is just to modify the theory so as to apply it to given practical solution. This report is the crux of the whole project-work experience. It is an attempt to elucidate the more importance aspect of research that is concerned to project and a detailed analysis of each facts and findings with comments and explanatory notes. The chief aim of this project-report is to given a clear and systematic picture of whole research that was conducted for the accomplishment of project work. I sincerely believe that there is no better place to learn this practical site of management than the industry itself.So far as the limits of my space would allow, therefore I have tried to suggest the best alternative to eliminate deficiencies in the existing system. MS. ASTHA AGARWAL

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ACKNOWLEDGEMENT

First of all I am thankful to the PARLE BISCUITS Pvt Ltd., Pantnagar where I able to prepare this project report. I express great sense of gratitude to Mr.Manoj Dangwal ,Personnel Executive, PARLE who give me the opportunity to work with his prestigious his valuable guidance, integrated support And perceptive criticism helped me to conceptualize this research work his guidance is precious and unforgettable experience which will help me in my future. I Special thanks to Mr. shishir shrivastava , Hr executive for pay his kind support, guidance and cooperation for the successful completion of this study. His academic excellence, immense interest, scholarly suggestions and affable temperament have been the source of inspiration and motivation which helped me to complete this research work. I want to offer my sincere thanks to all the staff members of PARLE .I also indebted to the respondents for their valuable support and kind cooperation for the purpose of study. I express my great sense of gratitude to my caring family for their encouragement and moral support made, as and when required to complete this study.

MS.ASTHA AGARWAL

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TABLE OF CONTENTS
S.NO 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. CONTENTS Executive Summary Statement of the Problem Objectives of the Study Limitations of Study Introduction of Sector and Industry Introduction of organization Analysis SWOT Analysis Findings Recommendations and Suggestions Conclusion Appendix Bibliography

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EXECUTIVE SUMMARY

The researcher undertake her project in a unit of biscuit manufacturing industry in India, viz. – PARLE, Rudrapur. The Project title is Comparative analysis of Britannia and Parle. The main task assigned to the researcher is to find and evaluate the financial analysis of Parle and Britannia and to calculate the respective financial ratios which will prove helpful in the financial analysis. The Summary of the project work is as follows in chronological sequenceThe report is concerned with the introduction to industry and also concerned introduction to the company. The Project profile comprises of project title, significance, methodology, scope and limitation of the study. In facts and findings where researcher has presented all the collected information. The research includes the analysis and interpretations of the collected data and the SWOT analysis. In the end the research contains conclusion made by the researcher.

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“QUALITY, HELTH AND GREAT TASTE”…..
The Parle story unfolded in the year 1929, with the establishment of its first confectionery factory in the western suburbs of Mumbai, presently known as the landmark region of “vile Parle”. Thereafter in 1939 Parle started the manufacturing of biscuits, which henceforth became its core activity. PARLE BISCUITS LIMITED is a subsidiary to PARLE PRODUCTS LIMITED, MUMBAI, which is closely held company run by the Chechens. The company commands a 40 % market share in the Rs. 35 billion biscuit markets in India. Parle-G; its first venture became an instant favorite amongst the masses, leading the glucose category with the huge market share of 65 %. It’s topped charts worldwide by becoming the world’s largest biscuit selling brand as revealed by the US-based bakery manufactures association in 2002. The products portfolio also comprises of KRACKJACK, MONACO, HIDE ‘ N’ SEEK and its variants. The success and survival of Parle is its adherence to quality and diversification in its core area. The strong and extensive distribution network assures the availability of Parle biscuits even remote region. Most of its offerings are in the low and mid price range making it affordable to the masses. Parle understands the psyche of the Indian consumer and provides them value-for-money. There are four of its own at Mumbai (head office), Bahadurgarh (Haryana), Neemrana (rajas than) and distribution of the biscuit are controlled by the “business development department”, Mumbai office with assistance from the regional sales offices at new Delhi, Calcutta, bangalore and Mumbai. To reduce freight rates and increases production, Parle has tie-ups with contract manufacturing units supervised by a “Parle officer”. These units are provided with the processing charges biscuits, which are transferred to depots established at strategic location.

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Statement of the Problem
To analyze the financial status of Parle Products in the organization as compared to competitors (ITC, Britannia & Priyagold).

Objectives of the Study
1. To find out Parle Coverage in various areas of Jaipur. 2. To check the Brand availability of the company products at different stores. 3. To compare the Brand with its competitive Brands like ITC, Britannia, Priyagold in terms of coverage, number of brands available and monthly sales. 4. To analyze that which type of biscuits and candies are most preferred and demand by the customer. It was done by asking storekeepers as well as customer. 5. To analyze the availability of new Parle products launched in the market. 6. To compare the organized retail stores with unorganized retail stores in terms of brand availability.

Reference Period This study is conducted for the period of 45 days starting from 15th of JUNE 2010 to 30th of JULY 2010.

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PROJECT METHODOLGY

Research Type:
EXPLORATORY RESEARCH EXPLANTION: The study was conducted by Parle Products Pvt. Ltd in 6-7 areas of Rudrapur mentioned below (source list) for the first time regarding market review and comparative analysis between unorganized and organized retail stores.. Thus it is an exploratory type of research.

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Sample Design A sample design is a definite plan for obtaining a sample for a given population. It refers to a techniques or procedure adopted in selecting items for the sample. Sampling: Further, the design that has been adopted for the study of the given topic is CONVENIENT SAMPLING. EXPLANATION: During the course of the study we visited a no. of stores that were scattered all over Jaipur (source list mentioned below). Apart from this we had no written record of the number and names of the stores in the city. It was very difficult to tabulate a record of all the retailers and wholesalers present in the city and then carry out our study, in the short span of time that was allotted. As a result we had to select the retailers according to our convenience. We went to the areas and surveyed all shops that could possibly be approached.

The following is the sample design that has been adopted for the study. 1. Population:- Finite(Jaipur) 2. Sampling Unit:- Areas of Jaipur 3. Source list:Unorganized retail stores (Areas): a. Mansarover b. Vaishali Nagar c. Chitrakoot d. Sodala (Ajmer Road, Hatwara road, Ram Nagar) e. Raja park f. Adarsh Nagar g. Janta colony 10

h. Sethi colony i. Bapu Nagar Organized retail stores: a. Spencer`s Retail b. Reliance Retail (Reliance Fresh) c. Aditya Birla (More) d. Vishal Mega Mart 4. Sample size:- A total of 410 unorganized retail stores with 30 organized retail stores and 100 consumers.

Tools and techniques for Data Collection Tools and techniques for: 1. Primary Data:- The researchers collected primary data during the course of research period with the help of the questionnaire that was designed for the storekeepers as well as consumers to collect the information that was required to carry out the research. 2. Secondary Data:- Secondary data was collected from books, articles, Internet and previous research papers that had been conducted by the company representatives and officials. Tools and techniques of Analysis Simple statistical tools and techniques like average, ratios, pie charts, tables and graphs in addition to hypothesis testing (z-test, for difference between proportions) & factor analysis method are used to analyze the data.

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Limitations of the Study 1) The study was conducted in 45 days that is not enough for such a vast topic. 2) It was difficult for the storekeepers to pinpoint the sales of a particular brand in both organized and unorganized retail stores. 3) No proper data was available about the stores in the city. 4) There were not a big number of organized retail stores in Jaipur to carry out the research more efficiently. 5) As the nature of research was exploratory so it was difficult to cover each and every retailer. 6) Many retailers don’t express their original perception and views because of biasness.

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INTRODUCTION

SECTOR
Fast moving consumer goods (FMCG), are products that are sold quickly at relatively low cost, have a quick turnover and get replaced within a year. Though the absolute profit made on FMCG products is relatively small, they generally sell in large quantities, so the cumulative profit on such products can be large. Examples of FMCG generally include a wide range of frequently purchased consumer products such as toiletries, soap, cosmetics, teeth cleaning products, shaving products and detergent, as well as non durables such as glassware, light bulbs, batteries, paper products and plastic goods. FMCG also includes pharmaceuticals, consumer electronics, packaged food products and drinks, although these are often categorized separately. Some of the best known examples of Fast Moving Consumer Goods companies include Clorox, Colgate-Palmolive, General Mills, H.J. Heinz, Reckitt Benckiser, Sara Lee, Nestle, Unilever, Proctor and Gamble, Coca Cola, Carlsberg, Kimberly-Clark, Kraft, Pepsi, Warburton’s, Wilkinson and Mars. Scope of the sector: The Rs 86,000-crore Indian FMCG sector is expected to maintain its double-digit growth for the quarter ended March 31, 2009. Being a sector led by domestic growth, it is least likely to be affected by the financial meltdown. The FMCG industry is set to grow 20-30 per cent in 2009-10, up from 10-20 per cent in 2008-09. The growth would be driven by the launch of new products and increasing rural consumption. A well –established distribution network, intense competition between the organized and unorganized segments characterizes the sector. 13

The introduction of goods and services tax (GST) in Union Budget 2009 by April 1, 2010, may help FMCG companies save on distribution costs, remove multiple taxes and bring down prices in the long run. Though the hike in minimum alternate tax from 10% to 15% would adversely hit companies with factories in excise-free zones, they rule out increasing consumer prices. Retail sector: Retail became a buzz word in India before recession; in fact the word 'booming' was found only attached to this sector. But as recession took its toll, 99% of sectors went for a toss including retail. The market has just started picking up and India is reclaiming to regain its position in the retail segment. In a recent report, the authors of AT Kearney's 2009 global retail development index said that India's largely unmodernised retail sector remained attractive to both domestic and international retailers, in spite of government regulations that prevent 100 per cent foreign ownership of retail stores. For most of the retailers like Pantaloon, Vishal, Cantabil and Priknit, retail still continues to buzz everywhere in India with many foreign brands coming in, whether it's the largest US retailer Wal Mart which opened its first store, last month, in Punjab, in a joint-venture with Bharti Enterprises, Or Tesco and Carrefour which are also planning joint venture stores.

Even as corporates are expecting the new Congress-led United Progressive Alliance Government at the Centre to open up fully FDI in retail sector, a Parliamentary Committee has argued for a total ban on even the domestic heavyweight corporates from entering retail trade in grocery, fruits and vegetables.

Also, there is expectation the forthcoming Union Budget may spell out a policy position. Retail giant Ikea holding back its plans to enter India is being bandied about as a setback for the country. There is also talk that investments and flow of technical knowhow could be hampered if the sector is not opened up to overseas.investors. But over all if we see, the issue to be debated shouldn't be whether FDI in organized

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retail is desirable, but what its impact would be on small retailers in the unorganized sector, and whether we have policies to protect the vulnerable sections. It was meant to revolutionize the way we shopped, spent, consumed and lived. With its ‘Retail Revolution’, India was making an indelible mark on the global retail map. The billion plus consumers and steady economic development were fuelling the growth of India’s $ 25 billion organized retail market. And the Indian blue chip companies started to go the retailing way — Bharti, Reliance, Tata, Mahindra, Aditya Birla Group and RPG — all were making the retail foray. As the sector grew at the rate of 30-40% per annum over the last decade, India became the preferred destination for global brands and retail chains to cash in. But with the Q3 growth for FY2008-09 at 10-12% as against 35% of the previous year accompanied with closures of Indian retailers, pulling out from certain cities and the Subhiksha saga unfolding, the dismal story of revolution is now unraveling. Organised Retail Sector: It was meant to revolutionize the way we shopped, spent, consumed and lived. With its ‘Retail Revolution’, India was making an indelible mark on the global retail map. The billion plus consumers and steady economic development were fuelling the growth of India’s $ 25 billion organized retail market. And the Indian blue chip companies started to go the retailing way — Bharti, Reliance, Tata, Mahindra, Aditya Birla Group and RPG — all were making the retail foray. As the sector grew at the rate of 30-40% per annum over the last decade, India became the preferred destination for global brands and retail chains to cash in. But with the Q3 growth for FY2008-09 at 10-12% as against 35% of the previous year accompanied with closures of Indian retailers, pulling out from certain cities and the Subhiksha saga unfolding, the dismal story of revolution is now unraveling.

INDUSTRY
Indian Biscuit Industry: According to Indian Biscuit Manufacturers' Association (IBMA), after stagnating growth of about 14 per cent in 2006-07, biscuit industry 15

grew by 17 per cent in 2007-08 due to excise duty exemption on biscuits with MRP up to Rs 100 per kg, Indian Biscuit Manufacturers Association. ). Therefore, Indian biscuit industry has demanded a reduction in value added tax to four per cent from the current level of 12.4 per cent on biscuit, so that the growth rate can go up to 20 per cent. The Rs 8,000-crore industry hopes that the biscuit segment will have over 20 per cent annual growth in the next five years if VAT is reduced to four per cent India, world's third largest biscuit producer after the US and China, produces nearly 19.5 lakh tonnes annually and the states, however, have imposed the VAT at 12.5 per cent, which is very high. According to IBMA, organised sector produces around 55% and the balance 45% being contributed by the unorganised bakeries. In terms of volume biscuit production by the organised segment in 2006-07 is estimated at 1.47 million tonnes. Per capita consumption of biscuits in the country is only 1.8 kg, as compared to 2.5-5.5 kg in the South Eastern countries, and in Europe and US, respectively. In India per capita consumption of biscuits is estimated at a low 1.9 kg, reflecting the huge potential for growth of the industry. Over 900 million Indians buy and eat biscuits with varying frequency in any year. The penetration of branded product in this segment is quite significant, and is valued at Rs 2,500-3,000 crore. None of the other wheat-based segments is as developed as the biscuits industry. The biscuit segment has developed with large markets of mass consumption covering over 90% of the overall potential market. The unorganised sector accounts for over 50% of the market. The market has been growing at a CAGR of 6-7% pa. Biscuit is a hygienically packaged nutritious snack food available at very competitive prices, volumes and different tastes. According to the NCAER 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. Bread and biscuits are the major part of the bakery industry. Biscuits stands at a higher value and production level than bread. India Biscuits Industry came into limelight and started gaining a sound status in the 16

bakery industry in the later part of 20th century when the urbanized society called for readymade food products at a tenable cost. Biscuits were assumed as sick-man's diet in earlier days. Now, it has become one of the most loved fast food product for every age group. Biscuits are easy to carry, tasty to eat, cholesterol free and reasonable at cost. States that have the larger intake of biscuits are Maharashtra, West Bengal, Andhra Pradesh, Karnataka, and Uttar Pradesh. Maharashtra and West Bengal, the most industrially developed states, hold the maximum amount of consumption of biscuits. Even, the rural sector consumes around 55 percent of the biscuits in the bakery products. The annual production of biscuit in the organized sector continues to be predominantly in the small and medium scale sector before and after de-reservation.

ANNUAL GROWTH RATE OF BISCUIT INDUSTRY IN INDIA

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PARLE is a biscuit manufacturing unit of Uttaranchal in Rudrapur . The introduction of PARLE can be bifurcated into following parts. 1.1.1 1.1.2 1.1.3 1.1.4 1.1.5 Brief history Quality of products. Core values. Awards. Annual production

HISTORICAL BACKGROUND
Parle Products Pvt. Ltd.: A cream colored yellow stripped paper with a cute baby
photo containing 10-12 biscuits with the company’s name printed with in Red. Times changed, variety of biscuits did come and go but nothing has changed with these 18

biscuits. Yes, the size of their packing has definitely changed but for the consumer good as these are money saver pack. The Parle name conjures up fond memories across the length and breadth of the country. After all, since 1929, the people of India have been growing up on Parle biscuits and sweets. Initially a small company was set up in the suburbs 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 1939, .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. For around 75 years, Parle have been manufacturing quality biscuits and confectionary products. Over the years Parle has grown to become a multimillion dollar company with many of the products as market leaders in their category. The recent introduction of Hide & Seek chocolate chip biscuits is a product of innovation and caters to a new taste, being India’s first ever chocolate chip biscuits. Apart from the factories in Mumbai and Bangalore Parle also has factories in Bahadurgarh in Haryana and Neemrana in Rajasthan, which are the largest biscuit and confectionery plants in the country. Additionally, Parle Products also has 7 manufacturing units and 51 manufacturing units on contract. All these factories are located at strategic locations, so as to ensure a constant output and easy distribution.

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QUALITY OF PRODUCTS
Hygiene is the precursor to every process at Parle. From husking the wheat and melting the sugar to delivering the final products to the supermarkets and store shelves nationwide, care is taken at every step to ensure the best product of longlasting freshness. Every batch of biscuits and confectioneries are thoroughly checked by expert staff, using the most modern equipment hence ensuring the same perfect quality across the nation and abroad. Concentrating on consumer tastes and preferences, the Parle brand has grown from strength to strength ever since its inception. The factories at Bahadurgarh in Haryana and Neemrana in Rajasthan are the largest biscuit and confectionery plants in the country. The factory in Mumbai was the first to be set up, followed soon by the one in 20

Bangalore, Karnataka. Parle Products also has 14 manufacturing units for biscuits and 5 manufacturing units for confectioneries, on contract. CORE VALUE An in-depth understanding of the Indian consumer psyche has helped Parle evolve a marketing philosophy that reflects the needs of the Indian masses. With products designed keeping both health and taste in mind, Parle appeals to both health conscious mothers and fun loving kids. The great tradition of taste and nutrition is consistent in every pack on the store shelves, even today. The value-for-money positioning allows people from all classes and age groups to enjoy Parle products to the fullest.

AWARDS Parle products have been shining with the golds and silvers consistently at the Monde Selection ever since they were first entered in 1971. Monde Selection is an international institute for assessing the quality of foods and is currently the oldest and most representative organization in the field of selecting quality foods worldwide.

ANNUAL PRODUCTION:
The organized biscuit manufacturing industry‘s annual production figures show YOY growth indicating rising consumption pattern in India.

Annual Production Figures in Million Metric Tonnes

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COMPANY PROFILE ABOUT THE COMPANY UNIT IN RDR: BHOOMIPUJAN - 4 TH MAY 2004 - 21 ST SEP. 2004

MACHINE ERECTION ACTIVITY FOUNDED BY

-MR. NAROTAM CHAUHAN

PRODUCT PROFILE IN PANTNAGAR PLANT: PARLE – G BISCUITS ORANGE CREAM BISCUITS

 

WHOLE COMPANY BRANDS:

PARLE – G

 CREAM BISCUITS: KRACKJACK  MONACO  ORANGE  MARIE CHOICE  BOURBON  HIDE SEEK  CHOCOLATE  FUN CENTER  ELAICHI  CHEESLINGS  PINEAPPLE 22

 SIXER  MANGO

Brands
An in-depth understanding of the Indian consumer psyche has helped Parle evolve a marketing philosophy that reflects the needs of the Indian masses. With products designed keeping both health and taste in mind, Parle appeals to both health conscious mothers and fun loving kids. The great tradition of taste and nutrition is consistent in every pack on the store shelves, even today. The value-for-money positioning allows people from all classes and age groups to enjoy Parle products to the fullest. Biscuit goodies: Parle-G Krackjack Monaco Monaco Funion Kreams Hide and Seek Hide and Seek Milano Bourbon Parle Marie Milk Shakti Parle 20-20 Cookies Nimkin Confectionary: GolGappa Classic Mint Lite Mint Kismi Orange Candy Mango Bite Melody Poppins Eclairs- 50 p Melody Softe- 1Rs. Kismi Bar Chox Kacha Mango Mazelo Imli Bite Kismi Gold Munch on snacks: Musst Bites

Parle biscuits: Parle biscuits are linked with factors of power and wisdom providing
nutrition and strength. Parle biscuits are indeed much more than a tea- time snack, they are considered by many to be an important part of their daily food. Parle can treat you with a basket of biscuits which are not only satisfying but are also of good and

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reliable quality. Parle biscuits cater to all tastes from kids to senior citizens. They have found their way into the Indian hearts and homes.

Parle G

For over 65 years, Parle G has been a part of the lives of every Indian. From the snow capped mountains in the north to the sultry towns in the south, from frenetic cities to laid back villages, Parle G has nourished strengthened and delighted millions. Filled with the goodness of milk and wheat, Parle G is not just a treat for the taste buds, but a source of strength for both body and mind. Tear over a packet of Parle G to experience what has nourished Generations of Indians since last sixty five years, making it truly Hindustan Ki Taakat. Pack Sizes available: 16.5G, 38.5G, 60.5G, 82.5G, 99G, 209G, 313.5G, 418G, 825G

Krackjack

The original sweet and salty biscuit is one of the most loved biscuits in the country. It’s not just a biscuit, it’s the taste of relationships captured in a biscuit. A little sweet and a little salty crafted in such a delicate and delicious balance, 24

you can never get enough of it. Have it anytime you like with anything you like. Pack Sizes available: 75G, 170G, 240G

Monaco

Share the company of great taste anytime, anywhere with Monaco. A light crispy biscuit sprinkled with salt, Monaco adds a namkeen twist to life’s ordinary moments. Pack Sizes available: 75 G, 120 G, 240 G

Hide and Seek

The ingredients that go into making this prized cookie are a well-guarded secret. What is is the effect it has on those who eat it. A cookie with a reputation for romance. Indulge in the sinful taste of Milano and everything that follows it. Pack Sizes available: 25 G, 62 G, 100 G, and 200 G

Hide and Seek Milano

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The ingredients that go into making this prized cookie are a well-guarded secret. What is is the effect it has on those who eat it. A cookie with a reputation for romance. Indulge in the sinful taste of Milano and everything that follows it. Pack Sizes available: 65 G, 135 G

Kreams

Orange: Tickle your senses with Parle Orange Kream – The tangy orange
cream between two scrumptious biscuits makes for a real treat. Age no bar! Pack Sizes available: 80 G, 90 G, 160 G, and 180 G

Parle Confectionaries: Right from candies to toffees, the sweet 'n' treat category of
the Parle product range is a genuine treat for every snack lover. This category can satisfy one's taste and at the same time create a desire for more. These confectioneries are a sheer delight to the taste buds and have a universal appeal. Parle Biscuits and confectioneries, continue to spread happiness & joy among people of all ages.

Melody
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Caramel meets chocolate to yield an outcome nothing less than delectable. Parle Melody comes with an irresistible layer of caramel on the outside and a delightful chocolate filling within. Pop it in your mouth and relish the unique experience. It won’t be too long before you find yourself asking the age old question ‘Melody itni chocolaty kyon hai?'

Mango Bite

Need a quick escape from everything ordinary? Just pop a Mango Bite and dive into a tropical mango paradise. Sit back, roll it around and enjoy one wave after another of juicy mango treats that go on and on and on.

Orange Candy

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Feel like eating an orange but don’t want to be bothered with peeling one? How about just unwrapping one then? Parle Orange Candy. This little candy is a mouthful when it comes to the tangy, juicy taste of real oranges. A bite-sized orange in a wrapper.

Kachcha Mango Bite

The glider got copied and became a jet plane. Western hits got copied and became Anu Malik songs. The typewriter got copied and became a keyboard. Similarly, we have managed to copy the tangy flavour of raw mangoes in a candy which is a little sour, a little sweet and certainly a little mischievous. We call it Kaccha Mango Bite. It truly is a ‘kacche aam ka copy’.

Kismi Toffee

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It’s everything that the Kismi Toffee Bar is, only smaller. Wrapped in the distinct flavour of elaichi (cardamom) this toffee is sure to send your sweet tooth on a joyride.

Golgappa

Mention Golgappa to lovers of roadside snacks and watch them get excited. Just the very memory of the sweet tangy taste of Golgappa is enough to make the taste buds tingle, the mouth water and the senses to party. Now imagine if you can have the Golgappa whenever and wherever you want it, even as you are reading this, for example. It is possible with Parle Golgappa. It captures the same magic of the popular street side Golgappa in a Goli or a hard boiled candy, if you prefer. So pop in a Golgappa and treat your senses to a fun filled trip, whenever and wherever.

Parle Snacks: Salty, crunchy, chatpata and crispy caters to the bunch of Parle
snacks. Parle snacks are a complete delight to the taste buds and can create the desire for more and more. These snacks will not only satisfy your tummy but will also sustain a feel in your mouth to associate you with the bond of Parle.

Musst Bites
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Cheesy fluffy baked snacks that are so irresistible that you don’t want to share them. Available in mouthwatering Garden Spices, sweet and sour Tangy Tomato, tantalizing Chatpata Chat and heavenly garden spices, you are going to have a hard time deciding which one you want for yourself.

MAJOR BISCUIT PRODUCERS IN UTTAR PRADESH
1) PARLE PRODUCTS PRIVATE LIMITED. 2) ITC SUNFEAST LIMITED 3) BRITANNIA 4) SURYA FOOD AND AGRO LIMITED (PRIYAGOLD).

PARLE PRODUCTS PRIVATE LIMITED

Many of the Parle products - biscuits or confectioneries, are market leaders in their category and have won acclaim at the Monde Selection, since 1971. With a 40% share of the total biscuit market and a 15% share of the total confectionary 30

market in India, Parle has grown to become a multi-million dollar company. While to consumers it's a beacon of faith and trust, competitors look upon Parle as an example of marketing brilliance. Parle G, a premium glucose biscuit is the world’s largest selling biscuit. A factory of these glucose biscuits is situated in Neemrana is producing 7000 metric tonnes every month. A list of premium quality biscuits and confectioneries is produced and distributed across nations.

ITC LIMITED

ITC is one of India's foremost private sector companies with a market capitalization of nearly US $ 18 billion and a turnover of over US $ 4.75 billion. ITC has a diversified presence in Cigarettes, Hotels, Paperboards & Specialty Papers, Packaging, Agri-Business, Packaged Foods & Confectionery, Information Technology, Branded Apparel, Personal Care, Stationery, Safety Matches and other FMCG products. ITC's diversified status originates from its corporate strategy aimed at creating multiple drivers of growth anchored on its time-tested core competencies: unmatched distribution reach, superior brand-building capabilities, effective supply chain management.

BRITANNIA

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By 1910, with the advent of electricity, Britannia mechanized its operations, and in 1921, it became the first company east of the Suez Canal to use imported gas ovens. Britannia's business was flourishing. But, more importantly, Britannia was acquiring a reputation for quality and value. As time moved on, the biscuit market continued to grow… and Britannia grew along with it. In 1975, the Britannia Biscuit Company took over the distribution of biscuits from Parry's who till now distributed Britannia biscuits in India. In the subsequent public issue of 1978, Indian shareholding crossed 60%, firmly establishing the Indian ness of the firm. The following year, Britannia Biscuit Company was re-christened Britannia Industries Limited (BIL). Four years later in 1983, it crossed the Rs. 100 crores revenue mark.

SURYA FOOD AND AGRO LIMITED

The wondrous magical journey of the company Surya Food & Agro Ltd. began in Oct. 1993 & since then The Researchers have been one of the leading manufacturers of biscuits in northern India. Our brand “PRIYAGOLD” has been a perennial household favorite since then. On a profound level spread in to western as well as southern India, the inevitable cycle of distribution network has helped us to spread into western India as well. Our obsession is to make the finest quality biscuits available to the consumers & our constant endeavor is to provide our consumers, a palate to look forward to a taste & flavor that is uniquely “PRIYAGOLD”.

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HUMAN RESOURCES:
>PEOPLE PERSPECTIVE IS IMPORTANT >EMPLOYEE ORIENTED >CONTINUOUSLY MOTIVATE >TRAIN & DEVELOP THE WORKFORCE

EMPLOYEE PROFILE:
TOTAL NO. OF WORKERS STAFF MEMBERS 46 763

Parle products pvt ltd. Mumbai promotes the company, which is holding company of the Parle biscuits pvt ltd. The directors of M/s Parle products pvt limited are:

BOARD OF DIRECTORS:
MR. ATUL K. SHAH MR. R.S. NEVATIA MR. BRAJESH K.TRIPATHI MR. S.N.VERMA

AUDITORS:
DELLOIT HARSHSKIN & SONS

BANKER:

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UTI PUNJAB NATIONAL BANK CBOP

MOTHER UNIT:
PARLE PRODUCTS PVT. LTD. NORTH LEVEL CROSSING VILLE PARLE (EAST) MUMBAI

CORPORATE OFFICE:
NIRLON HOUSE A.B.ROAD MUMBAI.

MOTHER UNITS: Mumbai, Nasik, Banglore, khaboli, Bahadurgarh (Haryana), Bhuj (Gujarat), Neemrana (rajas than), sitarganj, pantnagar.

THE CUSTOMER CONFIDENCE

The Parle name conjures op fond memories across the length and breath of the country. After all, since 1929, the people of India have been growing up on Parle biscuits and sweets. 34

Today, the Parle brands have found there way into the hearts and homes of people all over India and abroad. Parle biscuits and confectioneries continue to spread happiness and joy among people of all ages. The consumer is the focus of all activities at Parle. Maximizing value to consumer and forging enduring customer relationships are the core endeavors at Parle. Our efforts are driven towards maximizing customer satisfaction and this is in synergy with our quality pledge. "Parle Products Limited will strive to provide consistently nutritious and quality food products to meet consumers' satisfaction by using quality materials and by adopting appropriate processes. To facilitate the above we will strive to continuously train our employees and provide them an open and participative environment."

MISSION STATEMENT
> Grow then higher then market growth rate, while maintaining leadership in the industry. > Export 1 % of annual turnover. > Have access to customized information globally. > Aim to zero defect products, there are exceeding customer’s expectations. > Develop process flexibility and innovation to get significant portion of turnover from new products.

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> Expand distribution network in neighboring countries, presence in other countries. > Impart training, motivation and respect to all employees and associates.

Parle Social Responsibility
Parle Products with its wide platter of offering of biscuits and sweets like Parle-G, Krackjack, Monaco, Melody, Mango bite and many others since 1929 is also actively engaged to change & uplift the social face of India. As a part of Corporate Social Responsibility Policy Parle is keenly involved in the overall development of younger generation with focused endeavor to built New Face of India and spread happiness & joy all over. Parle Centre of Excellence as an institution is dedicated to enrich the lives of people through conducting various cultural programs across all region to facilitate the all round development of the children. Every year, Parle organises Saraswati Vandana in the state of West Bengal during the festival of Saraswati Puja, inviting schools from all across the state to participate. The event is one of much fanfare and celebration, keeping alive the culture and traditions of ages. Our involvement in cultural activities has seen the inception of Golu Galata in Tamil Nadu, held during Navratri. Its gives a 36

platform to all the members of a household to showcase their creativity and being judged by immanent personalities. Thousands of families participate and celebrate the occasion on a grand scale. These events give us a chance to interact with children on a one-to-one basis, and promote our belief of fun and health for the whole family

ANALYSIS
After visiting the PARLE factory as industrial visit the researchers analyzed that the best selling branded biscuit company offers its customers with large variety of biscuits (parle-g, krack-jack, Monaco, hide and seek etc.), confectionaries (mangobite, melody, poppins) and snacks (Musst bites) It aims “TO SERVE PEOPLE AND NATION”

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The privately owned self financed company provides motivation and confidence to its staff and other related members by providing various facilities and organizing certain events. It has a very open work culture. The atmosphere is so comfortable and relaxed that helps in increasing productivity and efficiency. It lunches and outstation teambuilding exercises that augment inter-personal relations and mutual understanding. Parle has found its way into the Indian hearts and home. It spreads happiness and joy among the people of all ages. As one comes to visit their plant, they welcome them whole-heartedly and cooperate with them in the best way they can. They are the strict followers of Japanese culture.

1.1 Visibility of PARLE products For Biscuits: Table 1.3.1 No. of shops 410 385 394 75 255 85 330
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BRAND (Biscuits) Parle-G Krackjack Monaco Monaco Funion Hide&Seek Milano Orange Kream

Total 410 410 410 410 410 410 410

% VISIBLE 100.0 93.9 96.1 18.3 62.2 20.7 80.5

Mango Kream Elachi Kream Pineapple Chocolate Kream Golden Arch Nimkin Marie Milk Shakti Bourbon 20-20 Butter 20-20 Cashew

388 393 381 377 35 101 198 185 210 340 332

410 410 410 410 410 410 410 410 410 410 410

94.6 95.9 92.9 92.0 8.5 24.6 48.3 45.1 51.2 82.9 81.0

Chart 1.3.1

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Interpretation:Brands such as Parle G, Krackjack, Monaco, Orange Kream, Mango Kream, Pineapple Kream, Chocolate Kream, Elaichi Kream are visible in almost all stores (90-100 %) but brands such as Monaco Funion, Golden Arch & Nimkin were not available in many stores.

For Confectionary:
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Table 1.3.2 BRANDS (Confectionary) GolGappa Classic Mint Lite Mint Kismi Orange Candy Mango Bite Melody Poppins Eclairs- 50 p Melody Softe- 1Rs. Kismi Bar Chox Kacha Mango Mazelo Imli Bite Kismi Gold Musst Bite No. of shops 258 136 108 222 300 337 352 222 168 146 165 155 177 160 97 45 43 Total 410 410 410 410 410 410 410 410 410 410 410 410 410 410 410 410 410 % VISIBLE 62.9 33.2 26.3 54.1 73.2 82.2 85.9 54.1 41.0 35.6 40.2 37.8 43.2 39.0 23.7 11.0 10.5

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Chart 1.3.2

Interpretation:The brands such as Orange Candy, Mango Bite & Melody have good availability but Kismi Gold and Musst Bite are rarely available .

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1.2 New Products Visibility Table 1.4.1 BRANDS (Confectionary) Nimkin Golden Arch Melody Softe- 1Rs. Mazelo Imli Bite Available 101 35 146 160 97 Not Available 309 375 264 250 313 Chart 1.4.1 Total 410 410 410 410 410 % VISIBLE 24.6 8.5 35.6 39.0 23.7

Interpretation: The newly introduced biscuit brand Golden Acrh was available in only 8.5 % retail outlets which is a very low figure. And Nimkin was present in only 25 % outlets. It appears that demand for their confectionary brands is increasing as they were present in considerable amount.

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1.3 Coverage with respect to competitors Table 1.5.1 BRAND PARLE ITC BRITANIA PRIYAGOLD Direct 367 308 305 281 Indirect 43 21 27 26 Chart 1.5.1 No Coverage 0 81 78 103

Chart 1.5.2

Chart 1.5.3
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Chart 1.5.4

Chart 1.5.5
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Interpretation: Among the competitors only Parle covers most of the outlets (90%) directly, rest covers approx. 70-75 % of outlets directly. Also ITC, Britannia & Priyagold has no presence in approx. 20-25 % outlets but Parle full coverage. This is the strength of Parle company.

1.4 Brand availability with respect to competitors
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BRAND PARLE ITC BRITANIA PRIYAGOLD Nil 0 81 78 103

Table 1.6.1 No. of Brands 1 to 5 6 to 10 20 88 227 85 193 99 112 144

11 to 15 302 17 40 51

Chart 1.6.1

Chart 1.6.2

Chart 1.6.3
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Chart 1.6.4

Chart 1.6.5
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Interpretation:Parle in addition to a big share of direct coverage also has74% of outlets where 11 to 15 brands are present as compared to competitors viz ITC, Britannia & Priyagold having 4%, 10% & 13% respectively. Priyagold although has less coverage (75%) than competitors but where present were in good variety i.e 35% outlets has 6 to 10 brands compared to Parle (21%), ITC (21%), and Britannia (24%).

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SWOT ANALYSIS OF PARLE PRODUCTS

STRENGTH
1. Low price as compared to competitors 2. Sizeable market share in the country. 3. Offers variety of products under its brand. 4. Different sizes of packets are available. 5. An experienced team of sales and marketing executives. 6. Deep and effective coverage 7. Largest distribution system.

WEAKNESS
1. Breakage of biscuits while delivering to retailers 2. No proper replacement system for broken biscuits to retailers 3. Improper and irregular supply. 4. Less share in Premium biscuit market. 5. Dependent on its flagship brand, Parle-G 6. Poor packaging in family pack of glucose biscuits. 7. Lack of schemes for retailers and distributors.

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OPPORTUNITY
1. Rising demand for innovative packaging in packaged foods. 2. Retaining loyal retailers or wholesalers. 3. Improving supply system for established brands. 4. Huge scope for some Parle products in medical shops. 5. Information revolution brought about by the television. 6. Good scope for snacks and namkeens, if launched and properly promoted by Parle.

THREAT
1. Highly advertised brands such as Britannia. 2. Ever increasing competition from multinationals and local companies. 3. Increase in sale of cheap local bakery products. 4. Emerging substitutes like wafers, snacks and toast. 5. Margin war among the major Brands

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Balance Sheet of Parle Biscuits

------------------- in Rs. Cr. ------------------Mar '07 Mar '08 Jul '08 Mar '09 12 mths 12 mths 4 mths 12 mths

Sources Of Funds Total Share Capital Equity Share Capital Share Application Money Preference Share Capital Reserves Revaluation Reserves Networth Secured Loans Unsecured Loans Total Debt Total Liabilities

3.60 3.60 0.00 0.00 38.15 0.00 41.75 2.60 0.00 2.60 44.35 Mar '07 12 mths

3.50 3.50 0.00 0.00 44.79 0.00 48.29 1.73 0.00 1.73 50.02 Mar '08 12 mths

3.50 3.50 0.00 0.00 44.79 0.00 48.29 1.73 0.00 1.73 50.02 Jul '08 4 mths

14.00 14.00 0.00 0.00 26.93 0.00 40.93 0.68 0.00 0.68 41.61 Mar '09 12 mths

Application Of Funds Gross Block Less: Accum. Depreciation Net Block Capital Work in Progress Investments Inventories Sundry Debtors Cash and Bank Balance Total Current Assets Loans and Advances Fixed Deposits Total CA, Loans & Advances Deffered Credit Current Liabilities Provisions Total CL & Provisions Net Current Assets 53

6.49 0.89 5.60 8.88 5.17 2.64 17.36 3.14 23.14 3.08 0.00 26.22 0.00 0.02 1.48 1.50 24.72

10.51 1.94 8.57 10.50 10.02 2.90 12.63 1.22 16.75 5.79 0.00 22.54 0.00 0.38 1.22 1.60 20.94

10.51 1.94 8.57 10.50 10.02 2.90 12.63 1.22 16.75 5.79 0.00 22.54 0.00 0.38 1.22 1.60 20.94

6.43 0.96 5.47 12.79 5.78 0.00 14.52 0.43 14.95 3.29 0.00 18.24 0.00 0.49 0.18 0.67 17.57

Miscellaneous Expenses Total Assets Contingent Liabilities Book Value (Rs)

0.00 44.37 0.00 115.98

0.00 50.03 0.00 137.98

0.00 50.03 0.00 137.98

0.00 41.61 0.00 29.23

Key Financial Ratios of Parle Biscuits
Per share ratios

------------------- in Rs. Cr. -------------------

Jul ' 09 Adjusted EPS (Rs) Dividend per share Leverage ratios Long term debt / Equity Total debt/equity Owners fund as % of total source Fixed assets turnover ratio Liquidity ratios Current ratio Current ratio Quick ratio Inventory turnover ratio 2.56 1.50 0.01 98.35 4.95 27.38 8.97 27.38 -

Mar ' 09 Jul ' 08 Mar ' 08 Mar ' 07 2.56 1.50 0.01 98.35 4.95 27.38 8.97 27.38 24.09 24.09 1.50 1.50 0.03 0.03 21.42 2.00 0.06 0.06 94.13 5.17 17.41 17.41 15.65 12.68

96.53 96.53 3.16 14.04 4.45 12.23 11.46 3.16 14.04 4.45 12.23 11.46

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Balance sheet of BritanniaMar ' 09
Sources of funds Owner's fund Equity share capital Share application money Preference share capital Reserves & surplus Loan funds Secured loans Unsecured loans Total Uses of funds Fixed assets Gross block Less : revaluation reserve Less : accumulated depreciation Net block Capital work-in-progress Investments Net current assets Current assets, loans & advances Less : current liabilities & provisions Total net current assets Miscellaneous expenses not written Total Notes: Book value of unquoted investments Market value of quoted investments Contingent liabilities Number of equity sharesoutstanding (Lacs) 23.89 800.65 2.20 22.97 849.70

Mar ' 08
23.89 731.92 1.94 104.16 861.91

Mar ' 07
23.89 590.93 1.53 3.25 619.60

Mar ' 06
23.89 525.20 1.62 7.74 558.45

Mar ' 05
23.89 419.63 6.14 449.66

511.50 233.67 277.84 6.02 423.10 553.66 437.55 116.11 26.64 849.70 423.07 2.15 162.96 238.90

453.18 212.19 240.99 9.69 380.83 577.48 370.31 207.17 23.23 861.91 380.81 2.93 169.55 238.90

392.12 193.75 198.37 16.03 320.05 382.61 323.03 59.58 25.58 619.60 352.55 2.12 102.63 238.90

315.37 174.81 140.56 11.08 359.86 349.10 318.22 30.88 16.06 558.45 392.33 2.88 67.24 238.90

250.35 154.39 95.95 31.70 330.08 278.07 320.37 -42.30 34.24 449.66 228.56 2.02 61.24 238.90

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SIGNIFICANT RATIOS
2009-10 2008-09

Measures of Investment Return on equity Profit after tax Shareholders’ funds % 26.1 18.3

Book value per share

Shareholders' funds Number of equity shares

Rs.

306.6

246.6

Dividend cover

Earnings per share Dividend (plus tax) per share

times

3.8

2.6

Measures of Performance

Profit margin

Profit before tax & exceptional item Net Sales + Other Income

%

9.2

5.7

Debtors turnover

Gross Sales Debtors + Bills receivable

times

56.5

81.0

Stock turnover

Gross Sales Stock 56

times

8.7

10.8

Measures of Financial Status

Debt ratio

Borrowed capital Shareholders’ funds

%

14.5

0.8

Current ratio

Current assets Current liabilities

times

1.6

1.2

Tax ratio

Tax provision Profit before tax

%

17.8

9.1

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FINDINGS After close study of the present market situation prevailing in the areas assigned the researchers, following are the observations. 1. Availability of all the products is not uniform in all the towns. For instance, the supply is not meeting the demand in particular areas or shops. 2. Golden Arch and Nimkin, newly launched products, have very less availability. 3. Breakage problem in the Family packs of glucose biscuits is leading to the decline in sales in this category. 4. Schemes, Discounts, offers, coupons etc. are not reaching to the retailers and customers whereas Priyagold and ITC on the other hand are doing that. 5. Retailers and even wholesalers are not satisfied with the supply system of Parle. 6. It was found that Parle (especially Parle- glucose) is most favored brand and is sold most. Parle biscuits are the retailers and consumers prime choice. 7. Very little range of Parle biscuits were visible in organized retail outlets. 8. Musst bites is not accepted by the general masses due to its dissatisfying taste. 9. Lack of marketing efforts for the promotion of new products like Golden Arch, Nimkin. 10. Britania is emerging as major Competitor in the organized retail outlets.

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RECOMMENDATIONS & SUGGESTIONS
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1. Company should start a program for the loyal retailers and wholesalers to reduce their complaints by providing timely supply and replacement. This will help in increasing their sales. 2. The packaging of Parle Glucose biscuits (1/2 and 1 kilogram packs) must be improved for its better sales. The company should come up with double packaging as people refuse to buy family pack biscuits with loose packaging. 3. Salesmen should be properly dressed and should have good communication skills to effectively promote the new products recently launched, by making sure that the product reaches each and every retailer and also increase the visibility of the products by arranging the product clearly on the shelf or rack and show its prominence. 4. To increase the number of stock keeping units {SKU} available in the retailers store. Each salesman should stress the retailers to keep the maximum SKUs and to maintain these SKUs throughout. With this, the replacement of the damaged and expired biscuits should be prompt and without any hassles, so that retailer can be saved from the loss of the expired and damaged goods. 5. Company should adopt innovative packaging techniques, as they have their own packaging unit as consumers are highly attracted towards new packaging. 6. The company should take proper measures that the schemes and offers are not gulped by the middlemen ,and that it benefits the retailers and customers.

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It was concluded that Parle is the first preference of both the customers and retailers (Organized and unorganized both) because of its price and brand image. Brand Parle G dominates the volume-dominated biscuit market. Even in today’s times when multinationals are beefing up their operations and trying to change the dynamics of the market, Parle G’s numero uno position is unchallenged. Its competitors have roped in superstars like King Khan and Sachin Tendulkar, but Parle G has only gone from strength to strength. Brand Parle G is iconic and has evolved over the years. Trust, relevance, affordability are its hallmarks, which have withstood pressures from the hyper-competitive marketplace.
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The Parle Biscuit brands, such as, Parle-G, Monaco, Krackjack, Marie Choice, Hide & Seek and confectionery brands, such as, Melody, Poppins, Mangobite enjoy a strong imagery and appeal amongst consumers across the world. Which has resulted into Parle-G being the “world’s largest selling biscuit". The Parle name symbolizes quality, health and great taste. Constantly innovating and catering to new tastes PARLE-G has built its reputation. This can be seen from the success of its new brands such as Mazelo, Imli Bite etc. Parle Products Pvt Ltd., is now lagging in services to retailers because of improper supply and distribution in some areas and competitors taking advantage of these points.

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BIBLIOGRAPHY I. Websites: Google search: (www.google.com) wikipedia search: (www.wikipedia.com) www.parleproducts.com

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A PROJECT REPORT ON COMPARATIVE ANALYSIS OF PARLE AND BRITANNIA

In partial fulfillment of the requirement for the award of MASTER OF BUSINESS ADMINISTRATION
AT
INVERTIS INSTITUTE OF MANAGEMENT STUDIES

SUBMITTED BY: ASTHA AGARWAL

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