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STRATEGIC MANAGEMENT

A PROJECT REPORT
SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD
OF THE M.COM DEGREE OF
MASTER IN COMMERCE
(MANAGEMENT)
SUBMITTED TO
UNIVERSITY OF MUMBAI,
LALA LAJPATRAI COLLEGE,MAHALAXMI,MUMBAI
SUBMITTED BY

NAME OF THE STUDENT:


RAMSHA SHAIKH

UNIVERSITY ROLL NO:

15160618

SUPERVISED BY
DR.S.V.LASUNE

OCTOBER 2015

CERTIFICATE
I hereby certify that the work which is being presented in the M.Com. Internal Project Report
entitled Swot on Parle, in partial fulfillment of the requirements for the award of the Master
of Commerce in Management and submitted to the Lala Lajpatrai College of Commerce and
Economics,Mahalaxmi,Mumbai 400034 is an authentic record of my own work carried out
under the supervision of _________________. The matter presented in this Project Report has
not been submitted by me for the award of any other degree elsewhere.

Signature of Student:

Signature of Supervisor(s):

Internal Examiner:

External Examiner:

College Stamp

Principal

ACKNOWLEDGEMENT
I would like to place on record my deep sense of gratitude to professor ______________. Dept
of for his generous guidance,help and useful suggestions.
I express my sincere gratitude to professor_____________ or his stimulating guidance,
continuous encouragement and supervision throughout the course of present work.
I also wish to extend my thanks to professor______________ and other colleagues for
attending my seminars also for their insightful comments and constructive suggestions to
improve the quality of this project work.
I am extremely thankful to _______________ coordinator and Principal _____________for
providing me infrastructural facilities to work in, without which this work would not have been
possible.

Signature of Student:

ABSTRACT
Bread and biscuits constitute the largest segment of consumer food in India.Both Biscuits and
bread are items of mass consumption in our country.Almost 2milliontons of biscuits are
produced in India each year and consumption is growing at 10-12 per cent annually.Parle-G or
Parle Glucose biscuits are one of the most popular confectionary biscuits in India.For
decades,the product was instantly recognized by its iconic white and yellow wax paper
wrapper with the depiction of a young girl covering the front.The Objective of the case study is
to find out the reasons for the preference of people in Glucose biscuit also to know why ParleG is no. 1 in glucose biscuit market. Further,it also brings to focus the infrastructure available
to the company which helps it to maintain supply and the award sit has won over the
years.This case study also looks back into the history of this brand and highlights the ideals on
which it was formed.Their strategies in terms of public relations and advertisements which
resulted in its huge market share have also been touched upon. Moreover the availability of the
product in India and its Exports has also been mentioned. Parle-G is an established company
globally, but it currently faces a huge problem. This is caused due to the increase in prices of
raw materials, resulting in falling profit margins. It is a market leader for the established
product Parle-G. It also has the largest distribution network. Nevertheless, Parle-G has no
staunch brand loyalty. It is a very price sensitive market owing to the Value for Money (VFM).
Parle-G has been strongly associated with offering the Value for Money, a marketplace
perception that had remained unfaltering for more than 60 years. The market share is highest
with Parle-G because of the Value for Money it awards to its consumers. Based on the SWOT
analysis, which has been done in detail, we can deduce the issues and constraints affecting the
product and its Target base.

TABLE OF CONTENTS
SR.NO.
TITLE
PGE NO.
1 Chapter 1: Introduction
1
Research Methodology
3
Research plan
3
Sample procedure
3
Data sources
4
Objectives of the study
4
Limitation of the study
5
2 Chapter 2: About the company
6
Products manufactured by Parle
8
About Parle G
18
3 Chapter 3: Swot Analysis
24
4 Chapter 4: Analysis of data
29
Findings
31
Recommendations and suggestions
32
Conclusion
33
5
Appendix: Questionnaire
34
6
References
37

CHAPTER 1
INTRODUCTION
Parle Products has been India's largest manufacturer of biscuits and confectionery for almost
80 years. Makers of the world's largest selling biscuit, Parle-G, and a host of other very
popular brands, the Parle name symbolizes quality, nutrition and great taste. With a reach
spanning even to the remotest villages of India, the company has definitely come a very long
way since its inception. 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 market in
India, Parle has grown to become a multi-million dollar company. While to the consumers it's a
beacon of faith and trust, competitors look upon Parle as an example of marketing brilliance.
Over the years Parle has grown to become a multi million-dollar company with many of the
products as market leaders in their category. 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 onto become leading brand
names itself for great taste and quality.
Today, the great strength of Parle Products is the extremely widespread distribution network.
Even at the remotest places, you can buy Parle biscuits and sweets from the local grocer. It has
taken years to create this extensive network. Parles sales force started with one salesman in
Bombay and some agents in few other cities. Gradually, Parle Products expanded. Soon sweets
and biscuits were being sent by rail to Calcutta, Delhi, Karachi, Madras and other major cities.
As production increased, distribution was amplified. Full time salesmen were appointed in
different areas. Currently, Parle Products has over 33, 00,000 distribution outlets.
Hygiene is the precursor to every process at Parle. From husking the wheat and melting the
sugar to delivering the final products to supermarkets and store shelves nationwide, care is
taken at every step to ensure the best product of long-lasting freshness. Every batch of biscuits,
confectioneries & snacks are thoroughly checked by expert staff, using the most modern
equipment. This ensures consistent and 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, Haryana and Neemrana, 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 Bangalore, Karnataka. Parle also has 10 manufacturing units for biscuits
and 75 manufacturing units for confectioneries on contract. 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. Every batch of biscuits & confectioneries are
thoroughly checked by expert staff, using the most modern equipment. The Care is taken at
every step to ensure the best product of long-lasting freshness. Every batch of Biscuits,
Confectionaries & Snacks are thoroughly checked by expert staff using the most modern
equipment. This ensures consistent and perfect quality across the nation and abroad.

RESEARCH METHODOLOGY
2

Research Methodology commonly refers to a search for knowledge. One can also define also
research as a scientific and systematic research for pertinent information a specific topic.
Research is an art of systematic investigation. Some people consider research as a movement, a
movement to the known to the unknown.
According to Clifford Woody: - Research comprises defining and redefining problems,
formulating hypothesis or suggested solutions, collecting, organizing and evaluating data,
making deductions mil reaching conclusion, and at last carefully testing the conclusion to
determine whether they fit the formulating hypothesis.
Marketing research is defined as a systematic gathering and analysis of the data concern with
an objective. The whole activity is divided into various parts and after compilation of that we
reach at certain findings, which enable us to marketing decision. It involves the diagnosis of
information needed and the selection of the relevant and inter-related variables.
RESEARCH PLAN:
Research approach: Survey method.
Research Instrument :The research instruments used for collecting the primary data were the
questionnaire.
Period of study: The study was undertaken within duration of 15 days.
SAMPLE PROCEDURE:
Sample unit: Customer and distributors in Clare road area.
Sample size: 30 customers.
Sample Method: Random Sampling Method.

DATA SOURCES:
3

PRIMARY:
Primary sources of data are the data which needs the personal efforts of collect it and which
are not readily available. Primary source of data are the other type of source through which the
data was collected. Following are few ways in the data was collected:
1. Questionnaires: It is the set of questions on a sheet of paper was being given to fill it, bases
on which the data was interpreted.
2. Direct interviewing: Direct interviewing involved the process where I asked the questions
directly to the customers and I got the feedback.
SECONDARY:
Secondary sources are the other important sources through which the data was collected. These
are the readily available sources of the data where one had need not put much effort to
collected, because it is already been collected and part in an elderly manner by some
researcher, experts and special.
The secondary sources helpful for the study were:
1) Text books were referred.
2) Internet was made use for the collection of the data
3) Newspapers were also referred.
4) Business magazines were referred.
OBJECTIVES OF THE STUDY
The main objectives of the study is to find out the strength, weakness, opportunities and
target of the Parle.

LIMITATION OF THE STUDY


4

Time has been a major constraint throughout the study as it has been only for duration of 1
months.
As this survey was restricted to Mumbai this cannot be stated as an in depth research on
this subject.
Enough care is taken in formulating the questionnaire, still some errors may creep in.
Some of the customers were not corporative.
Reaching out to the right person was little difficult.
Company staffs maintained confidentiality.
It is very difficult for the storekeeper to pinpoint the proper information about the product.

CHAPTER 2
ABOUT THE COMPANY
Parle Products Pvt.Ltd: A long time ago, when the British ruled India, a small factory was
5

set up by Mohanlal Dayal Chauhan in the suburbs of Mumbai city (vile parle), 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.

The original Parle company was split into three separate companies, owned by the different
factions of the original Chauhan family:
Parle Products, led by Vijay, Sharad and Raj Chauhan (owner of the brands Parle-G,
Melody, Mango Bite, Poppins, Kismi toffee bar, Monaco and KrackJack)
Parle Agro, led by Prakash Chauhan and his daughters Schauna, Alisha and Nadia
(owner of the brands such as Frooti and Appy)
Parle Bisleri, led by Ramesh Chauhan

All three companies continue to use the family trademark name "Parle".
The original Parle group was amicably segregated into three non-competing businesses. But a
dispute over the use of "Parle" brand arose, when Parle Agro diversified into the confectionary
business, thus becoming a competitor to Parle Products. In February 2008, Parle Products sued
Parle Agro for using the brand Parle for competing confectionary products.
Later, Parle Agro launched its confectionery products under a new design which did not
include the Parle brand name In 2009, the Bombay High Court ruled that Parle Agro can sell
its confectionery brands under the brand name "Parle" or "Parle Confi" on condition that it
clearly specifies that its products belong to a separate company, which has no relationship with
Parle Products.
Today, the great strength of Parle Products is the extremely widespread distribution network.
Even at the remotest places, you can buy Parle biscuits and sweets from the local grocer. It has
taken years to create this extensive network. Parles sales force started with one salesman in
6

Bombay and some agents in few other cities. Gradually, Parle Products expanded. Soon sweets
and biscuits were being sent by rail to Calcutta, Delhi, Karachi, Madras and other major cities.
As production increased, distribution was amplified. Full time salesmen were appointed in
different areas. Currently, Parle Products has over 33, 00,000 distribution outlets.
NAME OF BOARD OF DIRECTORS OF PARLE COMPANY:
BOARD OF DIRECTORS

NAME OF MEMBERS DESIGNATION

Vijay K Chauhan

Chairman & Managing Director

Sharad P Chauhan

Managing Director

Raj K Chauhan

Managing Director

Ajay V Chauhan

Executive Director

Anup S Chauhan

Executive Director

Samar S Chauhan

Executive Director

PRODUCTS OF PARLE:
BUSCUITS

SWEETS

SNACKS

Parle-G

Londonderry

Parles wafers

Monaco

Melody

Golden Arcs
Actifit Digestive marie

Mango Bite

Namkeen
fulltoss Parle

Kaccha Mango Bite


7

Munchies

Parle Marie

Chox

Hide & Seek

Poppins

Hide & Seek fab


Hide & Seek Bourbon
Festo
Happy Happy

Cheeslings

Mazelo

Jeff
Sixers

2 in 1
2 in 1 Eclair
Kismi

Milano

Kismi Toffee Bar

Nimkin

Fruit Drops

Coconut

Orange bite

20 20 cookies
Jam In
Gold Star
Kreams
Top
Magix
Coconut
Krack jack
Milk shakhti
Simply good

PARLE G
Every nation dreams of a better tomorrow. And every nation's tomorrow lies in the hands
of its children; the young stars who shape the future of the nation. So, it's important to
nourish these young stars, after all it's a question of the nation's future. Filled with the
goodness of milk and wheat, Parle-G is a source of all round nourishment. Treat yourself to
a pack of yummy Parle-G biscuits to experience what has nurtured and strengthened
millions of people for over 70 years. A meal substitute for some and a tasty and healthy
snack for many others. Consumed by some for the value it offers, and many others for its
8

taste. Whatever the occasion, it has always been around as an I nstant source of
nourishment. Little wonder that it's the largest selling biscuit brand in the world.
PARLE FUTURE GENIUS
Theres no school like childhood. And theres no teacher like curiosity. At Parle, we
believe that every child has the potential to become a genius if allowed to follow their
curious minds and explore without limitations. Thats why we made the futuregenius.com
website. A tool for both parents and children to help identify the spark of genius in a child,
nurture it and give it a platform to be showcased on.

BACHPANSE BADA KOI SCHOOL NAHI CURIOSITY SE BADI KOI TEACHER NAHI

MONACO

10

Life namkeen banaiye!


When life hits a dull patch, just pull out a Parle Monaco to make it exciting. The light, crispy
biscuit sprinkled with salt, is the perfect namkeen twist you can add to your ordinary boring
moments. Go ahead, Life namkeen banaiye, anywhere, anytime with Parle Monaco. To spice
up your life further, try the variant of Parle Monaco - The Zabardast Jeera. This salted, crispy
biscuit delicately seasoned with jeera, has a unique taste that makes those namkeen moments
even more exciting.

MRP
Monaco Classic Salted - Rs.
5 Rs. 10 Rs. 15 (New SKU)
Rs. 25
Monaco Zeera - Rs. 10

HIDE N SEEK
Play a game of hide and seek with your taste buds. Indulge in the mouth-watering delight of
Indias best moulded chocolate chip biscuits, Hide & Seek. All it takes is one bite, and you are
transported to chocolate Heaven. Packed with a bounty of chocolate chips, once you try Hide
& Seek, you will never want any other biscuit again. A treat for the mouth, and the heart, khate
hi dil aa jaye!
MRP :Rs. 5, Rs. 10, Rs. 20

11

BOURBON
The name itself
suggests
everything. The
moment

you

take a bite your


tongue

starts

playing hide n
seek with the
rich

chocolaty

cream
between

resting
two

lovely sugar-coated biscuits. The melting chocolate cream will feel rich and luscious in your
mouth. Its a complete treat for your taste buds. Moreover, it's like falling in love at first bite.
So what are you waiting for? Try it.
MRP
Rs. 5, Rs. 12 and Rs. 24

12

GOLDEN ARCS
Introducing irresistible Golden Arcs, filled with rich Strawberry, Apple, Orange & Choco
Fillings. They are best described as 'melt-in-your-mouth', soft shelled fruit rolls and crunchy
choco fills which are perfect for an anytime snack. Do bite into one of our 4 Delicious
flavours, participate in contests and feel free to follow us on Twitter and Facebook for updates
13

on freebies as well as our latest offerings.


MRP Rs. 20 and Rs. 35

PARLE TOP
It is the ultimate crispy cracker with the finest taste of butter, especially made to mesmerize
you with its smoothness. The unspoken dream or the wildest imagination gets real, with the
smooth texture of butter. So take a bite and escape into your own world where it will be just
about you and everything else fades into oblivion. Let no one come between you and "Buttery
Taste & Buttery Dreams".
MRP
Rs. 5, Rs. 10, Rs. 22, Rs. 24 and Rs. 25

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PARLE MARIE
There are two types of people in this world. Those who love to talk, and those who love to
listen. Not surprisingly, both types love Parle Marie. Because it's much more than a Marie
biscuit. It's as light as the jokes your best friend cracks. As crisp as your uncle's commentary
on politics. As tasty as the juicy rumours your sister brings to the table.
It is, in short, the perfect accompaniment to chats, arguments, discussions and gossip sessions.
And yes, it's healthy too. So the next time you're in good company, grab your favourite cuppa
and open a pack of Parle Marie. We promise the conversations that follow will be as addictive
MRP
Rs. 5, Rs. 10, Rs. 15, Rs. 20 and Rs. 22

15

SWEET
LONDONDERRY
Get a taste of the rich English-Irish culture, right here in India. With Londonderry, an exquisite
hard-boiled candy made from Milk and Caramel. With a name inspired by an actual town in
Ireland, the creamy, exotic taste of this delicious candy will make you discover the glories of
the majestic English-Irish culture. Just pop-in a Londonderry candy and experience the
magical world of Londonderry.
Londonderry- Tasty. Very, very!
MRP Rs. 50 paise
MELODY
CHOCOLATY
Caramel

meets

chocolate to yield an
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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 wont be too long before you find yourself asking the age old question
Melody itni chocolaty kyon hai?'
MRP Rs. 1

KACHCHA MANGO BITE


The mastiful flavour of summer
now comes in a candy. Just pop
a Kaccha Mango Bite and
experience the natural tangy
sweetness of a real raw mango. It's the only candy that is a real kacche aam ka zerox. So when
you're craving for the tantalizing khatta-meetha taste of raw mango just reach out for a Kaccha
Mango Bite and enjoy real kacche aam ki masti, anytime, anywhere.
MRP Rs. 50 paise

MANGO BITE
This was not only India's first mango candy, but even today, is the only candy with the richness
of real, juicy sweet mangoes. Pop in a Mango Bite and you will want to make it last longer and
longer, don't be in a hurry to eat it up. Take your time, roll it around on your tongue , feel the
taste of real mango go down your throat and enjoy it very slowly Mango Bite candies; eat them
anywhere, at home, at school, on picnics or with friends. But just remember, enjoy it
veeeeerrryyy slooooowllllllyyyyyy
Mango Bite is India's first mango candy with real mango
MRP Rs. 50 Paise

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POPPINS
Pinky loves red. Rahul loves yellow. Mini always asks for green. And naughty Vicky fights for
purple. So many flavours and so many colours theres always something for everyone. So
share your favourite Poppins with friends for a really colourful time. All you need to do is ask,
"Doon Kya?"
MRP Rs. 2 and Rs. 5

KISMI TOFFEE
Its 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.With a
perfect blend of Caramel &
Elaichi, the new Parle Kismi Gold is bound to take romance to an entirely different level and
make it more irresistible than ever before. Have one to experience romance at its best.
MRP: Rs. 50 Paise

SNACKS
PARLE NAMKEEN
Make

those

everyday

boring

moments colourful! Just open a pack of Parle Namkeen. Made from the choicest ingredients,
this crunchy, crispy snack is available in 5 mouth watering varieties. Along with the exciting
taste, youre assured of topmost quality too! After all, Parle Products is known for its highest
quality standards. So, pick your favourite Parle Namkeen snack aur Life Banaao Rangeen!
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MRP Rs.5, Rs.10 and Rs.2


CHEESELINGS
For the love of cheese and only
cheese!

Parle

pulls

out

Cheeselings from its pool of


innovative products. Its a baked snack, light on tongue and high on its Cheesecious taste. Its
fluffy form makes it very crunchy yet it actually melts in your mouth, leaving behind the
lingering flavor of cheese. Each bite opens the doors to that nostalgic feel everyone would love
to savor. Once tried, we bet you will become a fan of Cheeselings. So, what are you waiting
for? Come, join the ever-increasing Cheeseling Fan Club and Parle will make sure your
favorite snack reaches you most conveniently.
MRP 160 gm - Rs. 40 ,320 gm - Rs. 80 ,3.5 kg tin - Rs. 550

ABOUT PARLE-G:
Parle Products has been
India's largest manufacturer
of

biscuits

and

confectionery for almost 85


years. Makers of the world's
largest selling biscuit, Parle19

G, and a host of other very popular brands, the Parle name symbolizes quality, nutrition and
great taste. With a reach spanning even to the remotest villages of India, the company has
definitely come a very long way since its inception. 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 market in India, Parle has grown to become a multi-million dollar company.
While to the consumers it's a beacon of faith and trust, competitors look upon Parle as an
example of marketing brilliance. Some of our best habits, as we say, are also our oldest. Many
of them date back to the last decade of the 19th century. It was in the 1880s that the late
Mohanlal Dayal came to Bombay from his village Pardi, in the district of Surat, to work as a
dusting boy at a silk merchants. What a long way that bright little boy came! First, the hard
apprenticeship and the graduation to Master Cutter, then the elite tailoring establishment that
eventually developed into a wholesale business to finally, the new business in confectionaries
and biscuits.He never gave in to the sense of indifference that often comes with the
commercial outlook. Parle-G or Parle Glucose is a brand of biscuits manufactured by Parle
Products in India. As of 2011, it is the largest selling brand of biscuits in the world according
to Nielsen.
PARLE AS A BRAND:
The brand is associated with the positive values of life like honesty, sharing and caring. The
incredible demand led Parle to introduce the brand in special branded packs and in larger
festive tin packs. It is synonymous to energy & nutrition. It has become a part of the daily lives
of many Indians. It isn't just a biscuit anymore; but has become an icon. Parle G conjures up
fond memories across the length and breadth of the country. Be it a big city or a remote village
of India, the Parle G symbolizes quality, health and great taste.
PARLE G AND CHALLENGES:
The brand is associated with the positive values of life like honesty, sharing and caring. The
incredible demand led Parle to introduce the brand in special branded packs and in larger
festive tin packs. It is synonymous to energy & nutrition. It has become a part of the daily lives
of many Indians. It isn't just a biscuit anymore; but has become an icon. Parle G conjures up
fond memories across the length and breadth of the country. Be it a big city or a remote village
of India, the Parle G symbolizes quality, health and great taste.
INFRASTRUCTURE:
20

Apart from the original factory in Mumbai, Parle has manufacturing facilities at Neemrana
(Rajasthan), Bangalore and Bahadurgarh (Haryana). It also has several manufacturing units on
contract. AVAILABILITY: Outside India, Parle-G is available in Europe, UK, USA, Canada,
Singapore, etc. In Canada, it is sold by Zehrs, Food Basics, Loblaws, etc. for only 99 cents for
a 418 gram pack. A more common 80 gram "snack pack" is sold for as low as 15 cents at
Indian grocers, and 40 cents at major retailers. It is also popular across the world and is starting
to sell in Western Europe and USA.

QUALITY:
Hygiene
precursor

is

the

to

every

process at Parle. From husking the wheat and melting the sugar to delivering the final products
to supermarkets and store shelves nationwide, care is taken at every step to ensure the best
product of long-lasting freshness. Every batch of biscuits, confectioneries & snacks are
thoroughly checked by expert staff, using the most modern equipment. This ensures consistent
and 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, Haryana and Neemrana, 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 Bangalore, Karnataka. Parle also has 10 manufacturing units for biscuits
and 75 manufacturing units for confectioneries.
EXPORTS:
21

The immense popularity of Parle products in India was always a challenge to their production
capacity. Now, using more modern techniques for capacity expansion, they have begun
spreading their wings and are going global.
Parle bisuits and confectionaries are fast gaining acceptance in international markets, such as,
Abu Dhabi, Africa, Dubai, South America and Sri Lanka. Even the more sophisticated markets
like USA & Australia, now relish Parle products. As part of the efforts towards a larger share of
the global market, Parle has initiated the process of getting ISO 9000 certification. Many Parle
Products have also won Gold, silver and bronze medals at the Monde Selection
.
MARKET:
According to a Nielsen report released in 2011, Parle-G is the largest selling biscuit in the
world. It has 70% market share in India in the glucose biscuit category followed by Britannia,
Tiger (17-18%) and ITC's Sunfeast (8-9%). The brand is estimated to be worth over Rs 2,000
crore (Rs 20 billion), and contributes more than 50 per cent of the company's turnover (Parle
Products is an unlisted company and its executives are not comfortable disclosing exact
numbers). Last fiscal, Parle had sales of Rs 3,500 crore (Rs 35 billion). It also is popular across
the world and is starting to sell in Western Europe and USA. AWARDS: Parle is the winner of
111 Gold and 26 Silver and 4 bronze awards at the Monde Selection Awards, the global
standard for quality in Food category.
LATEST STRATEGY:
As part of its marketing initiative, Parle Products has recently adopted a major pricing strategy
whereby a 5 kg Parle-G Atta will be available to consumers and, along with ParleG biscuit
pack for free at Rs 90. However, competitors, Pillsbury Atta are priced at Rs 104, and,
Kissan Annapurna at Rs 102, in similar capacity.
Parle-G - Target Base:
Parle-G is consumed by people of all ages, from the rich to the poor, living in cities & in
villages. While some have it for breakfast, for others it is a complete wholesome meal. For
some it's the best accompaniment for tea. While for some it's a way of getting charged
whenever they are low on energy. Parle Company practices mass marketing for Parle- G which
appeals to masses. It is a product liked by everyone and does not cater only to a specific group
22

or part of the whole market. Thus it is mass production, mass distribution and mass promotion
of Parle- G for all buyers.

Reason of Parle-G Maintaining Its Price of Rs.4.00 for the Last 25 Years ?
Low profit margin.
Decrease in weight per biscuit.
Bulk purchase of raw material.
23

Reduced wastage - 1% of the 115 tons


Increased productivity.
Availability in remote places.
Avoid sophisticated packing
100g pack costing Rs 4 has net weight of 93.5g from Jan 2008
Parle-G has seen the variation in sales due to increase in price.
By mere 50 paisa in 1995its a brand that has held its price line at Rs 4 for 25 years now -- the
price was last raised in 1994 by 25 paisa. So, it's not for nothing that Parle-G is the world's
largest-selling biscuit by volumes. Not that the company didn't try to raise prices to offset the
overall hike in costs. Three years ago it did so, but quickly rolled it back after volumes fell
sharply and consumers wrote to lodge their protest. "We want to cater to the masses and have
consciously tried not to increase the price.
Parle-G is available for Rs 50 a kg. There are very few food items that are available for Rs 5060 a kg," says Pravin Kulkarni, general manager (marketing), Parle Products. Parle is, of
course, not doing it for charity. Soaring input prices meant it opted for reducing the weight of
the biscuit than increasing the price -- first from 100 gm. to 92.5 gm. in January 2008, and then
to 88 gm. in January 2012 - in line with other biscuit-makers and FMCG players.
Regular customers would have noticed the number of biscuits in a pack come down from 16
to 15 even as each biscuit became lighter, but they seemed to understand the cost pressures on
the firm. The gamble paid off: Parle was able to sustain its volumes. Strict cost control at every
point in its supply chain also helped -- Parle entered into forward contracts with suppliers,
outsourced production, increased the number of manufacturing locations to 60 and
consolidated buying.

Raw material costs account for 60 per cent of the total costs in this segment and packaging
costs (plastic films) account for 20-25 per cent of this. What makes the Parle G brand tick is
also that it has been positioned on the health platform (a single pack of biscuit offers 450
calories).
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Its earlier punch-line was Parle-G: swadh bhare, shakti bhare (full of taste and energy).
Currently, the brand uses two punch lines. Parle-G: G for Genius and Hindustan ki Taakat (the
country's strength).
It reaches 2.5 million outlets, including villages with a population of 500 people, on a par with
Unilever's Lifebuoy, ITC's cigarettes or mobile pre-paid cards. Competition has, of course,
been trying to wean away customers from Parle.
Britannia relaunched its Glucose-D biscuit as Tiger in 1995 and boasts of 17-18 per cent share,
while ITC's Sunfeast glucose has captured 8-9 per cent, according to industry sources. Even
Levers had forayed into this segment in 2003 and launched a glucose biscuit branded as
Modern, after it acquired the bakery business of Modern. There are strong regional brands,
including Priya Gold (west), Cremica (north) and Anmol (east).

CHAPTER 3
SWOT ANALYSIS:STRENGTHS:
(1) Low price as compared to competitors:
They constantly endeavor at designing products that provide nutrition and taste to the
common man. Most Parle offerings are in the low and mid-range price segments. The valuefor25

money positioning helps generate large sales volumes for the products.
(2) Sizeable market share in the country:
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 market in India, Parle has grown to
become a multi-million dollar company.
(3) An experienced team of sales and marketing executives:
Sales and Marketing executives are selected through a special process. A proper verification of
identity and financial background are done for a better structure of the human resource in the
company.
(4) Largest distribution system:
The extensive distribution network, built over the years, is a major strength for Parle-G. ParleG is available to consumers, even in the most remote of places. 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 and retailers. Additionally, there are 31 depots
and C&F agents supplying goods to a wide distribution network.
(5) Wide coverage area of manufacturing units:
Parle Products has one factory at Mumbai that manufactures biscuits and 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.
WEAKNESS:
(1) Breakage of biscuits while delivering to retailers:
Sometimes biscuits get damaged while being delivered to retailers. Company should adopt
innovative packaging techniques. So that the quality of biscuits are good till it reaches the
customer.
(2) No proper replacement system for broken biscuits to retailers:
There is no proper replacement system for broken biscuits to retailers. Company should start a
program for the loyal retailers and wholesalers to reduce their complaints by providing timely
26

supply and replacement. This will help in increasing their sales.


(3) Improper and irregular supply:
There is improper supply of products to retailers and distributors. 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.
(4) Dependent on its flagship brand, Parle-G:
The major income source for Parle Company is the Parle-G biscuits. The biggest concern for
Parle-G is that the brand shouldnt become outdated as it is a historic brand. The brand has
managed to retain its leadership position because it has evolved its campaign with every
consumption trend. Hence Parle Company should opt for innovative techniques to maintain the
brand of Parle-G.
(5) Poor packaging in family pack of glucose biscuits:
Should adopt innovative packaging techniques, as consumers are highly attracted towards new
packaging. 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. 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.

OPPORTUNITIES:
(1) Rising demand for innovative packaging in packaged foods:
Parle should adopt new innovative packaging techniques. Due to proper packaging the quality
of the biscuits will be retained and will not suffer loss if goods are spoiled before it reaches
their place.
(2) Retaining loyal retailers or wholesalers:
Parle can motivate retailers and wholesalers with good incentives and programs. The Parle
Company should maintain the loyal retailers and wholesalers since one of the most important
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strengths of the company is its wide spread distribution network


(3) Improving supply system for established brands:
As discussed in the earlier point the company can attract more retailers and wholesalers. Due
to this the company can expand the supply system and attract more customers.
(4) New innovative promotion techniques:
Parle is weak in Eastern India and Tamil Nadu. To cover up this loop hole, they are giving
scholarships to children in these states to cover up the corporate equity which is less than
Britannia in these states.
(5) Penetrate the Market Share of the Unorganized Sector :
The Indian biscuit industry is divided into the organized sector that has 60% market share and
the unorganized sector that has the rest 40% market share. Parle can take a pie of the market
share of the unorganized sector by tapping rural markets through several government schemes
such as mid-day meals.
(6) Innovation and Rural Market:
Innovating new products, especially non-glucose type biscuits, and its test marketing in the
rural market with its existing distribution channel would help them establish a new market in
rural India. This would be similar to replication of their strategy of innovation following which
they launched their product - Hide and Seek that is a premium segment product mainly focused
(7) Going Public:
Parle is one of the oldest companies in the biscuit market and except for its glucose biscuit
business, no other product has had a significant impact in the market. In order to follow an
aggressive expansion plan and to foster world class R&D, it may need funds, which it can
easily generate through an IPO because of its brand name. This can also help them diversify
into different related markets. It is important to note that both of its major competitors,namely,
Britannia and ITC are publicly listed companies that have aggressively pursued advertising
and R&D.
(8) Diversify in New Markets:
Today, though Parle has a commanding position in the biscuit industry, the future may be much
more competitive in this industry. This is because of entry of several new companies into this
market. The entry of new product suppliers in the market is also one of the Porters five forces
28

which can alter the market scenario. Hence, Parle being an established brand should diversify
into different market such as dairy products like cheese, butter, etc. The image that it has
among the Indian masses is that of a chai-biscuit providing company in the rural India.
Specifically, in this context, in the urban sector Parle can create a new image of itself in the
confectionary market by catering to high end.

THREATS:
(1) Highly advertised brands such as Britannia:
Parle faces the adverse competition from Britannia. Now-a-days Britannia has adopted
intensive advertisement such as through media to promote their products. This can result in
less attraction for the brand products of Parle.
(2) Ever increasing competition from multinationals and local companies:
ITC is promoting their Sun Feast brand by using strong promotional campaign with Brand
ambassador Shah Rukh Khan. ITC Foods Ltd has expanded network and is promoting its Sun
29

feast biscuits across 1000 schools in the country. Britannia Tiger has brand ambassador Rahul
Dravid and Virender Sehwag who are doing heavy duty endorsement on their personal equity
line for the brand.
(3) Increase in sale of cheap local bakery products:
There is sudden increase in bakery products for past certain period of time in the market. Due
to this the Parle biscuits are facing competition. This can affect the performance of the
company.
(4) Emerging substitutes like wafers, snacks and toast:
Earlier it was just the biscuit which was available as snacks item. Now there are many other
products like wafers and toast. Thus company is facing threat due to the new substitute
products.

CHAPTER 4
30

ANALYSIS OF DATA
Data analysis:
Age Group : There was no particular age group for consideration and the population
studied contained individuals from all ages.
Hunger satisfaction : The questions was intended to check whether the size of the
packaging is according to the demand for it. It can be seen that majority of the people
belong to the group who feel that Parle-G can take care of hunger of a person.
Attribute : Four attributes were tested as to why the biscuit was liked by the individuals.
The response from the survey shows that approximately equal amount of people belonged
to each category and it could be suggested that different individuals liked it for different
reasons.
Quality of biscuit: The survey conducted shows that the respondents were happy with the
current quality of the biscuits.
Quality/Price/Availability improvements :It could be seen that 3 attributes were major for
success of the biscuit the quality, price and its distribution channel.The survey shows that
these attributes were excellent for the product and only some changes if required should be
done.
Brand Loyalty: It was seen that about 60% of the respondents were not brand loyal and
were ready to take any biscuit if Parle-G was not available to them. It also shows that not
many people are so much specific with what kind of biscuit they eat.
Add impact and kind of channel: It was seen that most of the people say that they would
prefer T.V. commercials out of the given Medias of advertisements. But at the same time
they say that advertisements do not have impact on their buying decision.

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Quality and Deviation: The majority of the people said that the current quality was at par
with their expectation. Deviation : It was seen that the changes observed by the people
were very rarely.Deviation must have been due to the cost cutting in the process,
automation or changes in the original recipe with out prior notice but still the number of
people who faced this was minimal.
Preference : It can be seen that majority of the people preferred Parle-g as their first choice
in selecting the biscuit. This means that the product has been successfully placed in the
minds of the people as their first choice.

FINDINGS
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After doing the parle survey i analyzed that it is the best selling biscuits. It aims TO SERVE
PEOPLE AND NATION.
Some of the observations are as follows:
Breakage problem in the Family packs of glucose biscuits is leading to the decline in sales
in this category.
Schemes, Discounts, offers, coupons etc. are not reaching to the retailers and customers
whereas Britannia and ITC on the other hand are doing that.
Retailers and even wholesalers is satisfied with the supply system of Parle G.
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.
Very little range of Parle biscuits were visible in organized retail outlets.
Britannia is emerging as Major Competitor in the organized & unorganized retail outlets.

RECOMMENDATIONS & SUGGESTIONS


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During the study it was seen that people are not influenced by commercials of Parle-G
hence the company can save the cost on promotion and the funds could be used at some
other needed place.This cost reduction can be conveyed to the customer or the profits of
the company.
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.
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.
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.
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.
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.

CONCLUSION
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After conducting the survey with few unorganized retailers and 3 Distributors, i found that
there is a bigger market for biscuits and Confessionary in unorganized retail stores if proper
supply of goods without breakage is there. It was also concluded that Parle is the first
preference of both the customers and retailers because of its price and brand image.
Brand Parle G dominates the volume-dominated biscuit market.Even in todays times when
multinationals are beefing up their operations and trying to change the dynamics of the market,
Parle Gs numbers & Quality 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 with stood pressures from the
hyper-competitive marketplace.
The Parle Biscuit brands, such as, Parle-G, Monaco, Krackjack, 20-20, Marie Choice, Hide &
Seek and confectionery brands, such as, Melody,Poppins, Mango bite enjoy a strong imagery
and appeal amongst consumers across the world.
Which has resulted into Parle-G being theworlds 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
20-20, 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.
The three major attributes which influence the position of the biscuit in the market were
Quality, Price and Distribution of the biscuit. The distribution channels takes into consideration
and see to it that there is no lag in the supply of the biscuits in the market, there have been lag
in supply of competitors biscuit. The Quality of the competitor is not up to the mark as
compared to Parle-G. The price is highly competitive in the market and it is the cheapest
among all the biscuits in the glucose biscuit segment. The value for money that people get
from Parle-G is much better as compared to any other biscuit.

APPENDIX:
35

Questionnaire..
NAME OF THE PERSON:
AGE:
1. What do you prefer to have with tea?

Biscuits

Snacks
Others
2. Which brand in biscuit you prefer?
Parle
Britannia
Sunfeast
Others

3. Which factor is important when you buy a biscuit?


Price
Brand name
Quality
Calories
Others
3. Have you tasted parle g biscuit?
Yes
No
4. How often do you eat parle g biscuit?
Daily
Weekly
Monthly
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Other
5. Is one packet of parle g sufficient to fill you hunger?
Yes
No
6. Why do you prefer parle g?
It taste good
Have glucose in it
Cheap price
Easily available
6. Are you happy with parle g price?
Yes
No
7.Would you still eat parle g if it increased its price?
Yes
No
Maybe
8. Are you satisfied with the quality and quantity of parle g biscuit?
Yes
No
9. Do you think the company should change the packaging of the biscuit?
Yes
No

37

Questionnaire asked to the seller..


Name of the distributor:
Area of distribution:
1. What is the overall sale of parle g biscuits?
2. How often does the sales person visit you for taking orders?
3. What is the average order size for parle g?
4. What are the addition benefits (if any) provided by the distributor or the company to you?
5. Is there any promotional strategies given by the brand (like customer schemes or gifts)?

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REFERENCE

www.parleproducts.com
www.google.com
Kotler,Philips- Marketing Management
Kothari- Research Methodology
"Parle-G world's No 1 selling biscuit: Nielsen". Economic Times. 2011-03-03. Retrieved
2011-10-12.

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