Professional Documents
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Table of Contents
1. Acknowledgement 2. About the Biscuit Industry 3. Parle: History and More 3.1 About Parle 3.2. History of the company 3.3. Parle Biscuits 3.4. The Production Units of Parle 3.5. Parle Annual Production (Biscuits) in Million Metric Tonnes 4. The Macro-environmental Factors 5. Porters Value Chain: Parle G 6. The Perceptual map 7. Product Life Cycle 8. The Distribution Channel Network: Parle 9. The Parle G Distribution Network 9.1. Intensive Distribution 9.2. The Channel Members of the Distribution Network of Parle 9.3. The Channel Members and Logistics 9.4. Channel Dynamics 10. The Parle Distribution Network Logistics 10.1. Selection of Channel Members for Parle 10.2. Motivation of Channel Members 10.3. The Channel Members of the Parle Distribution Network 10.3.a. The Distributors 10.3.b. The Retailers 10.4. Evaluation of the Channel Members 11. Conflicts and Co-Operation 11.1 Conflicts among the Channel Members 11.2. Co-operation among the Channel Members 12. The Distribution Channel and Parle 13. Suggestions for the Parle Distribution Channel
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Acknowledgement
Parle: Distribution, Logistics and Management a Report would not have been possible without the support of the various distributors and Channel Members who were interviewed in the due course. We would like to acknowledge the valuable feedback from the factory unit of Parle: Parle Agro Foods in Garia, Kolkata, West Bengal. A Special mention needs to be made for Mr. Bizeet Kumar, Production Executive, Quality Control Division, Parle Agro Foods, Garia, Kolkata. He was very helpful in furnishing the intricate details of how the distribution logistics of Parle actually work. Thank you, to Mr. Debanjan Sengupta, Production, Quality Control, Keventor Agro, Subsidiary of Parle Agro, Kolkata. He was really kind to share details of the distribution channel prevalent therein. A special mention for Prof. Nalin Jain, teaching us the vital concepts of Channel Design and Logistics. Wed sincerely like to acknowledge all the help that we got from various domains in the successful execution of this project report. Thanking All Aakriti Kakkar Gaurav Sharma Gourab Kundu
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Data courtesy: scribd.com
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Even today the Indian Biscuit Industry is dominated by the unorganized sector with a composite market share of 55%.
Britania 30%
Parle 40%
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Negatives
Rigid Standards and Measures act. Conformance to size. Production and distribution licenses are difficult to attain.
Increase in per capita income of Indians. Economical Factors Increase in the purchasing power on Indians.
Rise in sugar prices manifold. (up by over 25% in six months) Slump in the countrys GDP to 6% Huge gap between the Wholesale Price Index and the Consumer Price Index.
Technological Factors
mean
heightened
India is currently the largest producer of Biscuits in the world. Better lifestyle, affluence and better perception about biscuits Social Factors Health consciousness consumers: some may move to healthier options.
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As per the above perceptual map, Parle G scores the best. It has the best distribution network among the competitors. It also has the best lowest pricing strategy. Britania is the nearest to Parle, and its no surprise that Britania has 30% market share only after Parle at 40%. ITCs Sunfeast and Priya Gold are somewhere in between in price and distribution network. A market share in the region of 10% is evidence to the fact. Marino and Horlicks are niche players hence, have a higher price and a less intensive distribution strategy.
Presently, Parle G is in the maturity stage of its PLC. Having said this, the brand is going strong. Intensive distribution employed.
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Parle Depots
Procurement: Customers
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10.3.b. The Retailers Trade schemes: these are undertaken by the company only for the hard selling items e.g. Biscuits and Snacks etc. for these the company raises the margins by 2%, also schemes like good packaging incase of butter and cheese is undertaken by the company. However this is only a short-term initiative to push the products of the company. Glow boards: the company puts up glow boards at the retailer and pays the major portion of the cost. Schedule of the salesmen: they provide the retails with this schedule so the retailers can pre estimate the quantities of the various products needed. Infrastructure facilitation: the company facilitates the retailers to buy beautiful stalls by formulating an easy payment program and a commitment to buy back the equipment at a reasonable price when the value of the equipment has depreciated.
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11.2. Co-operation among the Channel Members Parle quality circles: The members of the local channel meet together every month to share issues and the achievements of the channel members. This is an ongoing activity facilitated by the company offices in different locations; this enables the channel members to learn together and reduces the horizontal conflicts among the wholesalers and the distributors. Pilot salesmen scheme: To reduce the financial burden of the distributors this scheme is run whereby half the cost of the salesmen is born by the company and the rest half by the distributor Scheduling of sales: The wholesalers and the distributors provide their respective schedules of their sales men to the retailers so that the retailers can plan out and place the orders in advance. Agreement defining rights: The company makes the distributors sign an agreement where the areas of operation for each of the distributors are defined, therefore avoiding any conflict amongst the distributors regarding their areas of operation.
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for
the
Parle
Distribution
The following are the suggestions that Parle can implement to better its distribution channels: Increase the margins: In order to motivate the channel members it is also very essential for the company to increase the margins for the hard selling items. Pushcarts: These should be increased in number in order to increase the market reach (especially the rural market). This can provide with a very effective channel. Parle should also go in for Parle Zones: It is primarily for big city retail outlets. Here all the Parle products can be stalked. This can be an effective mode of umbrella marketing. This strategy can be implemented in regions where the footfalls are large in number. The advantages of this alternative channel would be as follows: Full range display. Easier to promote new products. Easy to push impulse purchase products. The Parle Brand building exercise will be enhanced.
The End
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