1.

PROJECT ON PARLE AGRO COMPANY

2. PROFILE OF ORGANIZATION :Parle Products Pvt. Ltd

based in Mumbai, India 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. Its reach spans even to the
remotest villages of India. 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 confectionery market in India, Parle has grownto
become a multi-million dollar company. Parle Agro is a food and beverage
company based in Mumbai, India. Parle Agro - a trusted name in the beverage
industry for agro based drinks. Parle Agro is aleading Indian Beverage
Company, the only Indian transnational giant with the past experienceof having
successfully launched leading soft drink brands like'Frooti, Appy Classic, Appy
Fizz, Bailley Packaged Drinking Water & Confectionery brands like Minitrox
and Buttercup'. Parle Agro strength is our people who have worked towards
making our presence felt throughout the country and all over the world through
a strong franchisee network and well-developed strong infrastructure. Parle
Agro has its factories located in Silvassa, Patalganga, Bhopal,
Chennai,Ghaziabad and Hyderabad. At Parle Agro, success is a habit; where
greater heights are achieved through consumer insight, sound business
practices, marketing and sales innovation, with the focus on the consumer.
Thinking consumer, Tasting success, Always'- that is what Parle Agro is all
about.

3. NATURE OF ORGANIZATION
"PARLE AGRO is a trusted name in the Indian beverage industry and has been
refreshing India since more than two decades with leading brands like
Frooti, Apply Classic, Apply Fizz, Bailley, Saint Juice, LMN & recently
launched Grappo Fizz. Parle Agro Pvt., Ltd. manufactures, distributes, sells, and
exports fruit drinks in India and internationally. The company offers fruit and
milk drinks, packaged water, and apple and mango drinks in polyethylene
terepthalate (PET) bottles and containers, and tetra packs. The company also
operates a health and fitness studio for woman. The company distributes its
products through franchisees. Parle Agro Pvt., Ltd. Was founded in 1985 and is

based in Mumbai, India. Parle Agro has been a trusted name in the beverage
industry providing wholesome and healthy agro-based drink brands. It has
successfully launched some of India's leading beverages like
Frooti, Appy and N-Joi, And packaged drinking water, Bailey, over the last two
decades. In a country where health consciousness is growing at a rapid pace,
Parle Agro, with its numerous fruit-based drinks, has struck a chord with the
masses. It brings to the consumers the magic of premium quality fresh fruit
drinks conveniently packed and available all through the year.
Fruit beverages are wholesome, easy to digest, highly refreshing with natural
nutritional values as compared to synthetic and aerated drinks. Parle Agro's
Frooti is India's first national mango drink. The mango segment is 95% of the
Indian fruit drink market and
Frooti has 85% market share in the tetra pack segment. Made from fresh and
premium Indian mangoes,
Frooti has grown to be one of India's top 50 most trusted brands. When Parle
Agro launched N-Joi with real fruits and fresh milk, it not only launched a new
healthy beverage, but also created a whole new category in India. The milk
shake claims to contain no preservatives and is full of nutritional goodness. It's a
delicious filler and an apt quick refreshing nourishment for today's hectic stressful
life.
TYPE OF INDUSTRY AND BUSINESS :Food ,Beverages and
Fast Moving Consumer Goods (MCG)
4. VISION:To be the leaders in our business. We will stand apart from the competition by
being the first in the market to innovate.
MISSION:We will be the leaders in our business by maintaining high quality,
introducing new and innovative products, reaching every part of India,
remaining customer-centric, constantly upgrading our knowledge and skills.To
provide consumers superior, wholesome agro based food and drink brands
through which parle can build a profitable; growth oriented organization. Parle
is a leading Indian
Food and Beverage Company, the only Indian transnational gaint with the past
experience of having successfully launched leading soft drinks like
Frooti, Appy, N-Joi and Bailley. Toady its brand portfolio consists of No.1
brands like froti along with Appy, N-Joi and Bailley.
FUNCTIONAL AREA :Administration, Market, Purchasing, Production and Quality Department.
SIZE OF THE ORGANIZATION :-MANPOWER :Parle group has a manpower strength of over 2500 employees, including over
400 professionals.

TURNOVER :The Parle Group turnover is over 950 crore in 200

5. MARKET SHARE :Frooti has 85% market share in the tetra pack segment.
With a 40% share of the total biscuit market and a 15% share of the total confectionery
market in India.

6. ORGANIZTIONAL STRUCTURE
An organizational structure is a mainly hierarchical concept of subordination of
entities that collaborate and contribute to serve one common aim. Organizations
are a variant of clustered entities. An organization can be structured in many
different ways and styles, depending on their objectives and ambience. The
structure of an organization will determine the modes in which it operates and
performs. Organizational structure allows the expressed allocation of
responsibilities for different functions and processes to different entities such as
the branch, department, workgroup and individual. Individuals in an
organizational structure are normally hired under time-limited work contracts or
work orders, or under permanent employment contracts or program orders.

7. MOTIVATION
Motivation is the activation or energization of goal-orientated behaviour.
Motivation is said to be intrinsic or extrinsic. The term is generally used for
humans but, theoretically, it can also be used to describe the causes for animal
behaviour as well. This article refers to human motivation. According to various
theories, motivation may be rooted in the basic need to minimize physical pain
and maximize pleasure, or it may include specific needs such as eating and
resting, or a desired object, hobby, goal, state of being, ideal, or it may be
attributed to less-apparent reasons such as altruism, selfishness, morality, or
avoiding mortality. Conceptually, motivation should not be confused with either
volition or optimism. Motivation is related to, but distinct from, emotion.

8. Motivation of Channel Members

Company strongly believes in maintaining a good relationship with the channel
members so that they are genuinely motivated to work for the company. Also if the

channel members are motivated, they can also initiate advertising & sales promotion
schemes on behalf of the company. However to keep the channel members motivated to
work, the company has to incur certain costs but the benefits of it are felt in the long run.
The following are the motivation programs run by the company.
Motivational Factors for the Distributors
One of the main factors, which keep the distributors motivated, is the margin. Usually the
margins offered by the company are 8% & it is raised to 8.5%. Volume wise this comes out
to be a big figure since Parle product has a good demand in the market. However
compared to the other companies the margins are still lower since the new players in the
market offer a much higher margin.
In order to keep the Channel members motivated in the long run, Parle builds on the
concept of Trade Marketing which makes the dealers & the distributors believe that
the companys products are worthy of being pushed in the market.
The company is organizing various Total Quality Management initiatives & workshops.
Here various counselling measures are undertaken by the company to improve
the overall Working of the distribution network.
Motivational Factors for 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.
9. 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.
Evaluation of channel members
Beat plan:This plan is generated for the various product categories. A weekly schedule is prepared for
various markets and the retailers the turnover for each of the product is calculated for the
wholesale dealers.
Cumulative performance:-

the performance of the dealers is averaged out over a period of three years where a
comparison is made of the present performance vis--vis the previous ones.
Target versus achievement:the performance and the targets are compared and therefore the gaps are identified
which help in evaluating the WD and planning for the next year as well. This is done for
each of the product category.

10. CONFLICTS
Conflict is actual or perceived opposition of needs, values and interests. A
conflict can be internal (within oneself) to individuals. Conflict as a concept can
help explain many aspects of social life such as social disagreement, conflicts of
interests, and fights between individuals , groups, or organizations. In political
terms, "conflict" can refer to wars, revolutions or other struggles, which may
involve the use of force as in the term armed conflict. Without proper social
arrangement or resolution, conflicts in social settings can result in stress or
tensions among stakeholders. When an interpersonal conflict does occur, its
effect is often broader than two individuals involved, and can affect many
associate individuals and relationships, in more or less adverse, and sometimes
even way.
Conflicts
Ownership of assets:
Previously the company used to give the products on lease to the retailers, when
the company wanted the stuff back; the retailer disagreed to comply and created
issues of ownership.
Stocking issues: The company doesnt want the retailers to stock the competing
brand in the company leased stall, which at times s hard to manage as retailers
tend to do it often.
11. Replacement of products:
The deterioration in the product calls for fail in replacement by the company
this major issue of vertical conflict.
Credit policy:
Compared to the market, the companys credit period is less that specially in
case of institutional sales is very important.

Packaging:
The channel members for easy storing demand a better quality of packaging.
Replenishment:
The replenishment of the stocks is not prompt in case of Parle cheese Biscuit
and all hard selling items.
Margins:
The Company provides least margins to all the channel members.
For e.g. the retailers margin in case of butter is 8%as compared to Britannias
12%. Co-operation among 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 WDs.
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 WDs provides Schedule of the distributors sales men to the retailers so
that the retailers can plan out and place the orders in advance.

12. Agreement defining rights: The Company makes the distributorssign 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.
Ownership of assets:
Previously the company used to give the products on lease to the retailers, when
the company wanted the stuff back; the retailer disagreed to comply and created
issues of ownership.
Stocking issues:

The company doesnt want the retailers to stock the competing brand in the
company leased stall, which at times s hard to manage as retailers tend to do it
often.
Replacement of products:
The deterioration in the product calls for fail in replacement by the company
this major issue of vertical conflict.
Credit policy:
Compared to the market, the companys credit period is less that specially in
case of institutional sales is very important.
Packaging:
The channel members for easy storing demand a better quality of packaging.
Replenishment:
The replenishment of the stocks is not prompt incase of Parle cheese Biscuit and
all hard selling items.
Margins:
The Company provides least margins to all the channel members.
For e.g. the retailers margin in case of butter is 8% as compared to Britannias
12% .
13. Co-operation among 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 WDs.
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 WDs provides Schedule of the distributors salesmen 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.

14. LEADERSHIP
Leadership has been described as the process of social influence in which one
person can enlist the aid and support of others in the accomplishment of a
common task. Definitions more inclusive of followers have also emerged. Alan
Keith stated that, "Leadership is ultimately about creating a way for people to
contribute to making something extraordinary.