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Market Segmentation of Biscuit Industry

Introduction
India Biscuits Industry is the largest among all the food industries and has a turnover of
around Rs.3000crores. India is known to be the second largest manufacturer of biscuits,
the first being USA. It is classified under two sectors: organized and unorganized. Bread
and biscuits are the major part of the bakery industry and covers around 80 percent of the
total bakery products in India. Biscuits stand at a higher value and production level than
bread.
India Biscuits Industry came into limelight and started gaining a sound status in
the 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 products 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 total production of bakery products have risen from 5.19 lakh tonnes in 1975 to
18.95 lakh tonnes in 1990. Biscuits contributes to over 33 percent of the total production
of bakery and above 79 percent of the biscuits are manufactured by the small scale sector
of bakery industry comprising both factory and non-factory units. 

The production capacity of wafer biscuits is 60 MT and the cost is Rs.56,78,400 with a
motive power of 25 K.W. Indian biscuit industry has occupied around 55-60 percent of
the entire bakery production. Few years back, large scale bakery manufacturers like
cadbury, nestle, and brooke bond tried to trade in the biscuit industry but couldn't hit the
market because of the local companies that produced only biscuits. 

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The Federation of Biscuit Manufacturers of India (FBMI) has confirmed a bright future
of India Biscuits Industry. According to FBMI, a steady growth of 15 percent per annum
in the next 10 years will be achieved by the biscuit industry of India. Besides, the export
of biscuits will also surpass the target and hit the global market successfully. 

 Market, by Product Type:


o India Plain Biscuit Market      
 Glucose
 Marie
 Non-Salted Cracker
 Salted Cracker
o India Cookies Market
 Choco-Chip
 Butter
 Fruit & Nut
 Others
o India Sandwich Biscuit Market
 Chocolate
 Orange
 Others  
o India Center Filled Biscuit Market

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Here are some companies working under biscuit industry:

Parle
Parle Products Company was founded in 1929 in British India by the Chauhan family
of Vile Parle, Mumbai. Parle began manufacturing biscuits in 1939. In 1947, when India
became independent, the company launched an ad campaign, showcasing its Gluco
biscuits as an Indian alternative to the British biscuits. [3] The Parle brand became well
known in India following the success of products such as the Parle-G biscuits and
the Frooti soft drink.
The original Parle company was split into three separate companies, owned by the
different factions of the original Chauhan family, with a majority of it owned by Parle
Agro products:[4]
 Parle Products (1950s), 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 (1960s), led by Prakash Chauhan and his daughters Schauna, Alisha
and Nadia (owner of the brands such as Frooti and Appy)
 Parle Bisleri (1970s), 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 confectionery
business, thus becoming a competitor to Parle Products. In February 2008, Parle Products
sued Parle Agro for using the brand Parle for competing confectionery products. Later,
Parle Agro launched its confectionery products under a new design which did not include
the Parle brand name.[5] 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.]

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Marketing Mix of Parle analyses the brand/company which covers 4Ps (Product, Price,
Place, Promotion) and explains the Parle marketing strategy. The article elaborates the
pricing, advertising & distribution strategies used by the company.
Let us start the Parle Marketing Mix:

Product:
Parle brand is one of the most recognized biscuit manufacturing company in India.
Though famous for Parle G, Parle products offer various options in other segments and
even in the biscuit category. It offers many other products like KrackJack, Monaco,
Kreams, Golden Arcs, Parle Marie, Milk Shakti, Parle Hide & Seek, Bourbon, Top,
Happy Happy, 20-20, simply good, Namkeen parle magix, cheeselings. In the
confectionery, it offers products like Melody, Mango Bite, Eclairs whereas in the Snacks
segment it provides Nachos, Cake, Rusk and wafers. This gives an insight in the Parle
marketing mix. Hence all the products of Parle are such that they can be consumed at any
point of time and by anyone. In fact, the biscuits offered cater to all kinds of segment be
it lower or upper middle class and are available in different product sizes. In the
confectionery segment, the appeal has been universal.

Price:
Parle has followed a low-cost strategy in order to establish a market leader position. This
is the backbone pricing strategy of the Parle brand as a part of its marketing mix. The low
price of the Parle products along with the promise of high quality helps in fighting the
competitors. Though Parle believes in focusing on quality, it still has been able to manage
low cost due to the high volumes of production. It comes in base pack of Rs 2 for biscuits

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whereas the toffees range from 1 to 2 rupees. The low pricing strategy of Parle G has
enabled it to retain its position as a market leader despite several new biscuit brands
coming in the market as its competitors. Parle G focuses on a volume strategy and hence
keeping its prices slightly lower helps it to reach out to a huge audience. 

Place:
Parle products are widely available across all geographies across India. With a presence
of very strong distribution network, Parle has been able to reach over 6 million retailers
all over India. Parle has over 23 manufacturing units which caters to over 1500
wholesalers. Apart from that, there are depot agents which further help in expanding the
distribution network. This is the reason why Parle products are present in every place be
it small shops or grocery stores to large retail stores/chains. Restaurants, hotels and even
small dhabas prefer keeping Parle G as the biscuit to be served along with tea or coffee.
The wide distribution and availability of the brand ensures that people keep Parle G as
their first preference of biscuit over other brands.

Promotion:
Parle brand uses all media like TVC, print, online ads etc as a part of its marketing mix
promotion & marketing strategy. Parle brand has always been associated with positive
emotions and has incorporated qualities like sharing and caring. Parle was able to connect
with the children by sponsoring shows like Shaktimaan where Parle started giving out
merchandise for the same. Moreover, it started promotions on a national level scale by
fulfilling the dreams of selective children. Parle has been active when it comes to
promotions or tv advertisements. Specifically, to Parle G, the company promoted using
the logo of a young girl and later also had an ambassador for the brand. Moreover, all the
products have attractive and distinct packaging which attracts the target group. Apart
from Parle G, all other products of the company are also promoted extensively with
innovative marketing campaigns. Parle has actively been involved in print and press
media. Hence, this concludes the Parle marketing mix.

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SWOT analysis of Parle

Strengths in the SWOT analysis of Parle G:

 Most widely distributed Indian biscuit brand – Parle G is without a doubt the
most widely distributed Indian biscuit brand. It crossed Rs 5000crore in retail
sales a couple of years back and it is increasing since then.

 Largest sold biscuit in the largest market – India is the largest market for
biscuits across the world and has a major market share of the biscuits segment. So
within India, Parle G has the highest market share. Quite simply, this is the
strongest advantage for Parle G because it is the largest sold biscuit brand in the
largest market for biscuits.

 Amazing Packaging – Parle G is appreciated for its packaging because it has


small 5rs variants as well as large variants which package 10 biscuit packets
together. It even has a small 2 rs packaging. When there were Floods in Mumbai
or when there are floods in other areas, Parle G biscuits are the first ones to be
distributed because of their small packaging and easy distribution advantage and
because of their glucose content.

 The parle Girl – The Parle Girl is one of the most famous brand mascots because
it belongs to one of the most famous brands of the country.

 Trusted brand – In 2014, Parle G was ranked the 42nd most trusted brand in
India. Considering a population of 1 billion and rising, thats saying a lot.

 Very strong in mid tier and mass segment – Parle G is very strong in its
adoption and penetration in the mass market. A bit of mid tier market segment is
also conquered by Parle G.

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 Parle’s market share – 28% of the total biscuit market of India is covered by
Parle which includes Parle G, Milano and others. Parle forms 50% of this 28%
share of its mother brand Parle. Hence it is safe to assume that Parle G has a
whopping 14% market share in the Indian biscuit market.

 Make in India – Parle G is the First domestic brand to cross rs 5000 crore in
retail sales. This further boosts the Make in India initiative for the domestic
country.

 Exports – Parle G is Exported to SAARC countries & to US, UK and Europe as


well as to parts of Africa. Thus the export segment of the brand is very strong too.

Weaknesses in the SWOT analysis of Parle G

 Missing premium range biscuits – Parle G is missing the essential part which
can make it an all round brand – Premium range biscuits. Although Parle G is the
single widest selling biscuit brand, a premium range biscuit will help Parle attract
a lot of inroads.

 Marketing is very less – Marketing of Parle G is very less. It came as


a product placement during the “Shaktimaan” series. Alternatively, there have
been ATL ads or some BTL involvement. However, the majority market has
already adopted Parle G biscuit. The marketing might be less because of cost
constraints but a bit of marketing will help the brand.

 Manufacturing bottlenecks – Massive distribution requires massive


manufacturing and this creates problem if its own with consistent manufacturing
bottlenecks coming up. Because of the huge demand, Parle G has to cater to
exports as well as domestic sales.

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 Regional players – There are many regional competitors for Parle G which
affects the brand in regional markets.

Opportunities in the SWOT analysis of Parle G

 Increase marketing communications – A first step which Parle G can take is to


increase its efforts of Marketing communications. It needs something unique like
the AMUL girl which helps people to connect with the brand even further. This
need not mean a lot of expenses. Just mind share and retention is needed from
time to time.

 Start a premium range – Parle G can start a premium range or a mid tier
separate range to have an even better market share. But doing this can affect its
mass range biscuits as well so whether to focus or diversify is a call Parle G needs
to take.

 Use distribution for more mass products – Parle G can use its distribution
potential for other products which also attract the customers. Distribution is an
asset for Parle G and it should use this asset to maximum advantage.

 Tie ups with schools and hospitality segment to increase sale – There are many
schools which need breakfast at low prices and Parle G is one component which
can be a part of this because of the glucose component of the biscuit. Thus, tie ups
with the schools / education as well as hospitality segment like Hotels can help
the brand in achieving more sales.

 Widen manufacturing base to more countries – Parle G can widen its


manufacturing base by having a manufacturing plant in countries which are good
markets in the future.

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Threats in the SWOT analysis of Parle G

 Consistent competition – Parle and Britannia are evergreen FMCG competitors


and ITC is close behind. Similarly there are other national and regional players
also vying for a footprint in the biscuit market.

 Rising Income – Because of the rising income, Parle G becomes outdated when
someone can afford other biscuits. This is a threat to the brand in the long term.

 Rising Costs – Parle G’s major selling point is that it is cheap with a good taste.
However, with rising costs of distribution and manufacturing, the high price of the
final product might become a threat to the brand. Although on the other hand, if
the price rises for Parle G, it will rise for all other biscuit brands. Nonetheless, the
rising costs of the product is to be considered as a threat to revenue and margin
for any brand.

 Mature market – There comes a time when people become bored by a taste and
they want to try new tasting things. Parle G is soon reaching the mature market
stage where everyone knows the taste of a Parle G biscuit and might want to try
something new. Hence, expansion to other territories is very important for the
brand.

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Britannia
The Wadia Enterprise, Britannia Industries Limited is an India Food company founded in
1892 and is manufacturing & selling biscuits, Rusk, cake, bread, and dairy products.
It is among the most trusted brands in India manufacturing daily food brands such as
Good Day, Milk Bikis and Marie Gold, Tiger, and NutriChoice. These brands have
become a household name in not only urban but rural markets also.
Its dairy business contributes approximately 6 % of the total revenue and it reaches to
100000+ outlets while its bread vertical is largest in the organized bread market with an
annual turnover of over 1 lakh tons (in volume) and Rs.450 crores.

Premiumisation of Products: Although the company has sub-brands in its product


portfolio recently it has entered into premium bakery & Dairy products segment in order
of being competitive in the market and have a bouquet of products for all segments of the
society. Some of their products in the segment delivering delightful innovative products
to customers are Good day Wonderfulls, Britannia Treat with Choco & Vanilla flavor.
Marketing Mix of Britannia analyses the brand/company which covers 4Ps (Product,
Price, Place, Promotion) and explains the Britannia marketing strategy. The article
elaborates the pricing, advertising & distribution strategies used by the company.
Let us start the Britannia Marketing Mix:

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Product:
Britannia manufactures wide variety of biscuits and dairy products. Britannia’s product
strategy in its marketing mix width primarily consists of biscuits, bread, dairy, cakes and
rusk. The product line depth is highest for biscuits consisting of several products,
followed by cakes and breads. Britannia manufactures biscuits for various segments of
consumers, types include sugar free biscuits, cream biscuits and jam biscuits. Some of its
popular brands are Britannia Nutrichoice, Britannia Marie Gold, Britannia Pure Magic,
Britannia Little Hearts etc. Britannia Tiger biscuits is the most famous of all products.
Tiger biscuits also cater to the international markets like Australia, Malaysia and
Indonesia. With their joint ventures with dairy companies, Britannia are now able to
manufacture and sell cheese, dahi, ghee and butter. Its products are primarily intended for
middle class people India, which forms the bulk of the population.

Price:
Britannia is one of the leading food brands in India. The food manufacturing industry is
very competitive. The base of Britannia’s marketing mix pricing strategy is competition.
Also the primary segment for being middle class people, who are highly price sensitive,
forces Britannia to play price war with its competitors. Britannia tries to bundle its
products, which in turn reduces the price of their products, specially this can be seen in
their products which are designed for the family packs. Their strategy of discrimination
of prices help them earn larger profits from consumers who are willing to pay for
healthier products and greater benefits. The price of Britannia products is very much
comparable with its competitors, especially with that of Parle products, and they are
almost the same.

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Place:
Britannia distributes its products primarily via retail chain. The online segment, which
contributes to less purchases, has been possible by having tie ups with large ecommerce
organizations. Britannia products can be purchased from online portals. With extensive
and strong distribution network Britannia products, can be found in all large and small
urban areas across India. But the rural distribution network is not as good as that of the
urban market. As a large FMCG player in India, Britannia primarily depends on
distributors who then decide on dealers and retailers for distribution. Britannia has made
deals with large retailers like spencers, big bazaar which hosts large quantity of Britannia
products and provides better display location.

Promotion:
Since the brand, Britannia is present for more than 100 years, perception about Britannia
is always good and enjoys high brand recall among consumers, this tends to be a great
advantage for Britannia. Advertisements for Television, print media and billboards are
few of the many techniques used by Britannia in their promotional marketing mix.
Britannia has signed agreements with famous personalities to promote their brand, but
this has been different for different products. A bigger part of their promotional activities
is done in the sports sector. Britannia logo tagged cricket bats endorsed by international
players plays an important promotional activity. Britannia also promotes their product as
“essential for good health”, this captures the mind of consumers as nowadays people tend
to be more conscious about the nutrient value of what they consume. Hence, this
concludes the Britannia marketing mix.

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SWOT analysis of Britannia

Britannia is one of the most known Biscuit, bakery and dairy food FMCG companies in
India. The vast variety of products with known brand names like Good day, Marie,
Cheese, butter etc make up the core product portfolio of Britannia. Naturally, the
distribution of Britannia is far and wide. In the SWOT analysis of Britannia, the product
line and distribution is the strongest point for the brand. The same is discussed at length
below.

Strengths in the SWOT analysis of Britannia

1. Brand portfolio: Britannia is the only company in India that has offerings in bakery
products across the segment for all income groups due to which it’s possible for them to
acquire large share of wallet of consumers. Britannia holds nearly 30% market share in
the India’s biscuit category.

2. High Brand Recall: Because of its presence across range of bakery products like


biscuits, rusk, cakes & dairy products like milk, butter & cheese etc., their shelf visibility
is high. Also their focused marketing & advertising campaigns resulted into positive
word of mouth & high TOMA (top of mind awareness).

3. Serving Indian Markets from last 120 years: 123 years ago, in a small house in


central Calcutta (now Kolkata) an intrepid baker made a batch of delicious, golden brown
biscuits. These were meant for officers of the British Raj and their families, people used
to the high standards of English tea-time snacking. Over the last century and a quarter,
Britannia has been serving the Indian consumer with a range of fresh, nutritious and
flavor-rich products. Today, Britannia is a leading food company in India with over Rs.
6000 crores in revenues, delivering products in over 5 categories through 3.5 million
retail outlets to more than half the Indian population.

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4. In depth product portfolio: It has different offering for different income groups with
large assortments across the product categories like in Biscuits they have tiger ,milk bikis
, Good day, Bourbon ,little hearts, crackers , nutria-choice.

5. Market Penetration and distribution: Being present in the market with such large


SKU’s and making it available through its robust distribution system, Britannia has
penetrated to every nook & corner of the country.

6. Market Leader in bakery: Britannia Industries Limited (BIL) is a major player in the


Indian Foods market with leadership position in Bakery category and has a market share
of ~ 30% in the industry. Britannia offers both delightfully indulgent and healthy choices
in biscuits, bread, cake, rusk and a range of dairy products that include cheese, curd and
specially formulated functional beverages with a dairy base.

Weaknesses in the SWOT analysis of Britannia


1. Over dependency on the biscuit business: Britannia’s 75% revenue comes from
biscuit business. Although they are market leader in the same but over dependency on the
same may affect their long term existence in the business.

2. Various brands got commoditized over time: Brands like Bourbon & glucose
biscuits of Britannia got commoditized over time such as in case of “bourbon”, Parle also
introduced “Parle bourbon” biscuits. Brand name when used like this by other companies,
creates confusion in the mind of the consumers resulting in loss of sale.

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3. No overseas presence: Apart from India Britannia have presence in Dubai &
Oman that too through subsidiaries. But overall export of the products is very less then its
actual potential.

4. Struggling dairy business: Dairy business contributes only 5% of the company’s


overall revenues.

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Opportunities in the SWOT analysis of Britannia

1. Emerging Dairy Industry: With organoleptic (flavor, taste & color) features


shaping the dairy industry, improving dairy products can help the company to improve
their market share & reposition itself in dairy market.

2. Changing lifestyle & demand for healthier food products: Improvement in


literacy rate, health awareness, changing lifestyle,& increase in disposable income are
shaping the demand for healthy food products.

3. Overseas Market: Expanding its business to other overseas market can help the
company to emerge as a global player in the food products.

Threats in the SWOT analysis of Britannia

1. Competition in the market: With increasing number of players (local players –


Anmol, Priya & national- ITC, Parle), it’s becoming very hard for the company
to differentiate themselves from others. There is also threat from counterfeit products
destroying its brand image in the market.

2. Price of raw material: Increasing price of commodities will result in further


increase in the price of the end product. Further increase in price will result in decrease
in profitability or reduced consumption.

3. Buyers power: With highly diversified consumer goods market where there are


lots of brands claiming different sorts of benefits, it’s very difficult for consumers to stick
to a particular brand & hence results into brand switching where consumer get power to
select a brand based on several factors  like availability, reference group
recommendation, preference & price.

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Nestle

Nestles start date back to 1866, when two split Swiss enterprise were found that would
later form the core of Nestle. In the subsequent decades, the two challenging enterprise
forcefully delayed their businesses throughout Europe and the United States.
Nestle was formed in 1905 by the merger of the Anglo-Swiss Milk Company, established
in 1866 by brothers George Page and Charles Page, and Farine Lactee Henri Nestle,
founded in 1866 by Henri Nestle. The company grows significantly during the First
World War and again following the Second World War, expanding its contributions
outside its early reduced milk and child formula products. The company has made a
number of corporate acquisitions, including Crosse & Blackwell in 1950, Findus in
1963, Libby's in 1971, Rowntree Mackintosh in 1988 and Gerber in 2007.

Marketing mix of Nestle – Nestle marketing mix


January 7, 2018 By Hitesh Bhasin Tagged With: Marketing mix articles
The Marketing mix of Nestle discusses the 4P’s of one of the strongest FMCG
companies of the world. The Nestle marketing mix shows Nestle has a strong product
line which boosts its marketing mix. Below are the products, price, placement
and promotions of Nestle.

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Products in the Marketing mix of Nestle
There are 4 different strategic business units within Nestle which are used to manage
various food products.

Beverages – One of the most known coffee brands Nescafe, belongs to the house of
Nestle and is one of the cash cows for Nestle. However, it is not the biggest cash cow.
Nestle has a worldwide distribution and has many different variants. Looking at India,
Nestle has also launched Nestea.

Milk and Milk products – Nestle everyday, Nestle slim and Nestle Milk maid are some
of the milk and milk based products from the house of Nestle.

Prepared dishes and cooking aides – Nestle has a third category of products which


comes into prepared dishes and cooking aides. The major cash cow of Nestle lies in this
segment, which is Maggi Noodles. Probably one of the most widely sold ready to cook
noodle brands is Maggi. Maggi has a fantastic taste and quality. Thus, it was not a
surprise, that Nestle expanded the Maggi brand to create an umbrella of different
products like Maggi pasta, Maggi sauce, Maggi cubes etc. The maggi range contributes
vastly to the bottom line of Nestle.

Chocolates – Nestle has some popular chocolate products, most popular being Nestle
Kitkat, Munch, Milky bar, Eclairs and Polo. The newly introduced Alpino is targeting the
gifting segment in response to various chocolates like Dairy milk and Bournville
by Cadbury. The chocolates segment of Nestle is a star, where the competition is high
and the expense is high but at the same time the market size is huge as well.
As we can see, two major brands of Nestle are a very high contributor to its Brand equity
– Nescafeand Maggi. These are two brands sold across India in small as well as big shops
and super markets. There have been many competitors for these products, like Bru for
Nescafe and Top ramen and Sunfeast Yippie against maggi.

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The appreciable factor in Nestle is that quality maintenance of products is upto mark and
there are hardly any complaints about Nestles products in the market. This is a major
achievement for a company which relies majorly on food products.

Price in the Marketing mix of Nestle


The price is dependent on the market of each individual products. For example, Nescafe
and Maggi being the clear leaders are priced with higher margins for the company as
compared to competition. This is because the product quality is good enough and a bit
of skimming price will not cause the customer to switch brands.
The strength of pricing for Nestle comes from its packaging or consumption based
pricing. For Nescafe as well as Maggi, Nestle offers a lot of sizes and package options. In
supermarkets, you can even find a 16 packet maggi whereas in small retail shops, you can
find 5 rs maggi.
Thus, with the variety available, customer can make his own choice based on his
consumption. In other products like Kitkat and Munch, due to tough competition from
other companies, Nestle offers competitive pricing. You will find that nestle will be
similar priced to many of Cadbury’s Products in the chocolate segment.

Place in the Marketing mix of Nestle


Nestle follows the FMCG strategy of distribution which involves breaking the bulk. The
typical distribution strategy of Nestle is as follows.
Manufacturing >> C & F agent >> Distributors >> Retailers >> Consumer
Manufacturing >> Bulk buyers >> Consumer
These are the two different forms of distribution which Nestle has. It is typical of any
FMCG company. However, the Nestle channel is known to be strong with a good
marketing and sales network for channel distribution.
On top of it, Nestle regularly introduces trade discounts and various tactics to keep the
channel motivated. The major challenge is in the distribution of Maggi which is the most
in-demandproduct along with Nescafe. Due to these two products, Nestle is able to drive
other products in the market as well. Thus, on purchase of one weak product, the
distributor might get a discount on the stronger product or vice versa.

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The challenge for Nestle is in the chocolate segment where it faces stiff competition from
Cadbury and hence selling the chocolates becomes difficult. Kitkat might have its
own brand positioning, but it is not better than Dairy milk. Thus, converting retailers to
sell Nestle instead of Cadbury is the toughest task for Nestle. This is converted mainly
through promotions.

Promotions in the Marketing mix of Nestle.


One of the most widely known tunes is the Nescafe tune. It was one of the best
advertising campaigns and was launched at least 2 decades back. However, that campaign
brought Nescafe strongly in the market.
On the other hand, Nestle’s brand was pushed by the excellent product quality of Maggi
and the witty and innovative campaigns of Maggi. Where Nescafe focuses on value and
the good things in life, Maggi focuses on moments you had with your Maggi. The recent
campaign was completely focused on your maggi story, where people had to come out
with various innovative ways that they had their maggi.
Promotions for other products too is done smartly. Kitkat focuses on “Take a break” and
has done some good marketing for the same. Kitkats website too is very innoative and
shows nothing but asks the visitor to take a break and have a Kitkat. The major push
expected of a FMCG company is in sales promotions at the ground level. This is where
Nestle really rocks. Nestle focuses on its strength which is Maggi, Nescafe and Kitkat
which are the most promoted brands in the market on ground level.
Besides this, Nestle regularly uses TVC’s and ATL marketing. It is also present online
through some smart creative. Overall, Nestle is a brand which has strong products as well
as strong marketing, and hence the brand has a very high brand recall value.

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SWOT analysis of Nestle

Nestle is one of the strongest companies in the world when it comes to the FMCG
market. Nestle coffee is almost a cash cow for Nestle and so is Maggi!! There are many
brands in Nestle which are super hit.
Here is the SWOT analysis of Nestle
Strengths in the SWOT analysis of Nestle

1. World Renowned brand: It is fortune 500 Company and is world’s largest


food company measured by revenues (2014). Nestle does individual branding of their
different food brands which help them in creating awareness about their various food
brands. This also helps them because if a brand like Maggi is affected, it does not affect
the sale of Coffee.

2. Extensive distribution system: With its diversified product portfolio Nestle has


been successful in penetrating Urban as well as rural markets. Locally adapted
distribution methods & decentralization in supply chain, including street markets, mobile
street vendors, door-to-door distributors & Medical outlets has helped the company in
making its products visible in the market.

3. Broad Product portfolio: Nestle has more than 8000 brands / products under its
name which ranges from beverages like Coffee & Mineral water, Breakfast cereals,
Soups & sauces etc. Under each product categories Nestle have deep assortments to
satisfy different needs & wants of the consumers.

4. Large workforce: Nestle have engaged 340000 odd global workforce who are
continuously working to make its products available in every nook & corner of the world.

5. R & D centers: Nestle have the world’s largest food & nutrition research
organization, with about 5000 people involved in R & D, as well as corporate venture

21
funds and research partnerships with business partners and universities. It has 21 research
centers globally.

6. Brand equity – As of 2016, it is the 37th highest rank brand in the world which
says a lot about its brand equity.

Weaknesses in the SWOT analysis of Nestle

1. Maggi Controversy – In India, Maggi was recently banned because it was found
to contain additives which were harmful. This affected the brand name of Nestle as well
as Maggi big time. However, it has been relaunched recently and Nestle is trying to
convince people about the quality of Maggi.

2. Brand structure: It has many brands under the same umbrella group so
managing such large number of individual brands can create conflict of interest.

22
3. Legal & consumer issues: Although Nestle is global food giant but it got into
controversies over the years like Nestle baby formula boycott. Child labor by suppliers,
Chocolate price fixing etc. which resulted in negative word of mouth.
Opportunities in the SWOT analysis of Nestle
1. Healthy breakfast – Maggi oats or other such healthy breakfast alternatives have
a big time future as most breakfast alternatives are heavy and people are becoming more
health conscious. Nestle needs to do more market penetration with regards to its Cereals.

2. Expanding market: By entering into other markets & penetrating more & more
in the rural markets through its robust supply chain and transition of spots of unorganized
business to organized one will lead to further expansion of the company’s business.

3. Increasing Income levels: Due to stable political scenario, improved literacy rate


& controlled inflation, disposable income of the people is increasing there by resulting
into upsurge in demand & changing their lifestyle.

4. Strategic Alliances: Nestle is already engaged in partnerships with a number of


major companies, such as Coca-Cola, and several others, opening doors of opportunities
for the company. It is one of the main shareholders ofL’Oreal, the world’s
largest cosmetics  So partnering with other food giants will help the company in further
growth.

5. Focusing more on R & D to handle ethical issues: Recent outcry of Maggi


Noodles in India for lead presence like issue will create hindrances in the future growth
of the company. So in order to handle these health issues Nestle must invest in R & D
further to come up with more hygienic food products.

Threats in the Marketing strategy of Nestle


1. Competition in the market: With increasing number of local & national players
it’s becoming very hard for the companies to differentiate themselves from others. There
is also threat from counterfeit products destroying its brand image in the market.

23
2. Price of commodities: Increasing price of commodities will result in further
increase in the price. Further increase in price will result in decrease in sales, margins
& brand switching.

3. Buyers power: With highly diversified consumer goods market where there are


lots of brands claiming different sorts of benefits, it’s very difficult for consumers to stick
to a particular brand & hence results into brand switching where consumer got power to
select a brand based on several factors  like availability, reference group
recommendation, preference & price.

24
Objectives of study
 Study the techniques used by firms to approach consumers.
 To know techniques to increase goodwill in market.
 To know the consumer behavior of firms.
 How companies compete with each others.

25
Review of Literature

 Venkateshwaralu et.al, (1987) conducted a study2 to analyze the buyer behaviour


towards biscuits. They have concluded that consumers generally prefer packed biscuits
when compared to unpacked ones. It was also found that children are the major
influencers in decision making while purchasing biscuits, though parents are equally
involved. Besides, the study revealed that 76 percent of the respondents purchase biscuits
at least once in a week. It was concluded that that the marketers have to give considerable
importance to taste, freshness and brand name of biscuits as they largely affect the
decision making process of consumers

 Srinivasan (2000) reported5 that consumers with high educational qualification highly
prefer to buy processed products. Besides, processed fruits and vegetables are highly
preferred by consumers belonging to high-income group. The tolerable limit of price
increase identified is less than five percent and any change in price above this limit,
would result in discontinuance of the use of processed product. Majority of the
consumers prefer processed products because of their ready- to- eat form.

 Sampathkumar (2003) studied10 the brand preference of consumers in Telangana


region of Andhra Pradesh in purchasing soft drinks. He found that in rural market about
37.5 per cent of consumers preferred Thumbs-up (urban 30 percent), followed by Coco
cola 28.5 percent (urban 37.5 percent), Pepsi 12.5 percent (urban 9 percent) and Limca 4
percent (urban 8.5 percent). Most of the urban consumers (67 per cent) purchased soft
drinks in nearest Kirani Stores (rural 73 percent), followed by Super Bazaar 27 per cent
(rural 26 percent) and others 6 percent (rural 1percent). The method of physical
distribution plays a vital role in a company’s success and failure in the market.
Transportation is among the major functions of physical distribution.

 Apoorva Palkar (2004) studied11 the consumer preference in purchasing ready-toeat


snacks. Random sampling technique was employed covering 150 consumers and 50
retailers. The results revealed that sixty per cent of the consumers prefer Lays to Peppy,

26
Cheetos and Kurkure. The spicy and the salty flavors were found to be highly preferred
by consumers and they said that taste is the most important reason for purchasing ready-
to-eat snacks. Nearly sixty six per cent of the consumers purchase ready to eat snacks at
least once in a week.

 Banumathy et al., (2006) in their study16 suggested that, the local companies
manufacturing soft drinks must manufacture high quality soft drinks in order to compete
with multinational companies. The multinational companies promote demand by
effective advertising and improve quality by keeping a check on the taste and price. They
adopt innovative improvements in the production and marketing of soft drinks in order to
compete with the international brands. The study also revealed that there is no association
between age, education, occupation and choice of brands but there is association between
monthly income and brand preference and also there is close relationship between price
and satisfaction level in purchasing soft drinks.

 Vincent (2006) elicited18 that quality is an important factor that draws consumers
towards branded products. Branded products are accepted as good quality products.
People do not mind paying extra for branded products, as they get value for money.
Media is a key constituent in promoting and influencing a brand. A child’s insistence
affects family’s buying behaviour. Children are highly aware and conscious of branded
items. Although unbranded products sometimes give same satisfaction as branded
products, customers would still prefer to purchase a branded product.

27
Conceptualisation

Marketing Strategy

A marketing strategy is a business' overall game plan for reaching people and turning
them into customers of the product or service that the business provides. The marketing
strategy of a company contains the company’s value proposition, key marketing
messages, information on the target customer and other high-level elements.
The marketing strategy informs the marketing plan, which is a document that lays out the
types and timing of marketing activities. A company’s marketing strategy should have a
longer lifespan than any individual marketing plan as the strategy is where the value
proposition and the key elements of a company’s brand reside. These things ideally do
not shift very much over time.

BREAKING DOWN 'Marketing Strategy'


Marketing strategies are often confused with marketing plans. Because they do feed off
one another, it is not unusual to find the marketing strategy and the marketing plan baked
together into a single document. Although the transition between the two is blurry, a
marketing strategy covers the big picture of what the business offers - the value
proposition and related brand messaging. The marketing plan is how the business will get
across those key message - the platforms, the creative, the timing, and so on. The
marketing strategy may also be absorbed upwards into the corporate value statements and
other strategy documents.

The Creation of a Marketing Strategy


A marketing strategy grows out of a company’s value proposition. The value proposition
summarizes the competitive advantage a company has in its market. The value
proposition usually provides the key message for all marketing. Walmart, for example, is
a discount retailer with “everyday low prices,” and its business operations and marketing
revolve around that. A company is never creating a marketing strategy from scratch.
They start with the value proposition and distill the key marketing message(s) from that.

28
Once the value proposition is succinctly stated, the hard work is done. Any marketing
asset, from a print ad design to a social media campaign, can be judged by how well it
communicates the value proposition. To further the efficiency of marketing
efforts, market research can be added to the marketing strategy for the purpose of
identifying untapped audiences or refining the target consumer. Finally, an overall goal
for the marketing strategy can be set, with all the subsequent marketing plans inheriting
the responsibility for delivering on it. These can be concrete, bottom-line goals such as
increasing sales or something less direct like climbing the ranking of trusted providers
within the industry.   
Marketing plans are operational documents that get more attention because they are the
day-to-day work that a company does to sell itself to the world. That said, a marketing
plan would be meaningless without a message, a target market, and a goal — the core
of every marketing strategy.

29
Define 4Ps
Definition: The marketing mix refers to the set of actions, or tactics, that a company uses
to promote its brand or product in the market. The 4Ps make up a typical marketing mix -
Price, Product, Promotion and Place. However, nowadays, the marketing mix
increasingly includes several other Ps like Packaging, Positioning, People and even
Politics as vital mix elements.

Description: What are the 4Ps of marketing?

Price: refers to the value that is put for a product. It depends on costs of production,
segment targeted, ability of the market to pay, supply - demand and a host of other direct
and indirect factors. There can be several types of pricing strategies, each tied in with an
overall business plan. Pricing can also be used a demarcation, to differentiate and
enhance the image of a product.

Product: refers to the item actually being sold. The product must deliver a minimum
level of performance; otherwise even the best work on the other elements of the
marketing mix won't do any good.

Place: refers to the point of sale. In every industry, catching the eye of the consumer and
making it easy for her to buy it is the main aim of a good distribution or 'place' strategy.
Retailers pay a premium for the right location. In fact, the mantra of a successful retail
business is 'location, location, location'.

Promotion: this refers to all the activities undertaken to make the product or service
known to the user and trade. This can include advertising, word of mouth, press reports,
incentives, commissions and awards to the trade. It can also include consumer schemes,
direct marketing, contests and prizes.

30
What is the importance of the marketing mix? 

All the elements of the marketing mix influence each other. They make up the business
plan for a company and handled right, can give it great success. But handled wrong and
the business could take years to recover. The marketing mix needs a lot of understanding,
market research and consultation with several people, from users to trade to
manufacturing and several others.

31
SWOT analysis

SWOT analysis (strengths, weaknesses, opportunities and threats analysis) is a


framework for identifying and analyzing the internal and external factors that can have an
impact on the viability of a project, product, place or person.
SWOT analysis is most commonly used by business entities, but it is also used
by nonprofit organizations and, to a lesser degree, individuals for personal assessment.
Additionally, it can be used to assess initiatives, products or projects.
The framework is credited to Albert Humphrey, who tested the approach in the 1960s and
1970s at the Stanford Research Institute. Developed for business and based on data from
Fortune 500 companies, the SWOT analysis has been adopted by organizations of all
types as an aid to making decisions.

32
When and why you should do a SWOT analysis
A SWOT analysis is often used at the start of or as part of a strategic planning exercise.
The framework is considered a powerful support for decision-making because it enables
an entity to uncover opportunities for success that were previously unarticulated or to
highlight threats before they become overly burdensome. For example, this exercise can
identify a market niche in which a business has a competitive advantage or help
individuals plot career success by pinpointing a path that maximizes their strengths while
alerting them to threats that can thwart achievement.

Elements of a SWOT analysis


As its name states, a SWOT analysis examines four elements:

 Strengths: Internal attributes and resources that support a successful outcome.


 Weaknesses: Internal attributes and resources that work against a successful
outcome.
 Opportunities: External factors that the entity can capitalize on or use to its
advantage.
 Threats: External factors that could jeopardize the entity's success.
A SWOT matrix is often used to organize items identified under each of these four
elements. A SWOT matrix is usually a square divided into four quadrants, with each
quadrant representing one of the specific elements. Decision-makers identify and list
specific strengths in the first quadrant, weaknesses in the next, then opportunities and,
lastly, threats.

33
How to do a SWOT analysis

A SWOT analysis generally requires decision-makers to first specify the objective they
hope to achieve for the business, organization, initiative or individual.
From there, the decision-makers list the strengths and weaknesses as well as
opportunities and threats.
Various tools exist to guide decision-makers through the process, often using a series of
questions under each of the four elements. For example, decision-makers may be guided
through questions such as "What do you do better than anyone else?" and "What
advantages do you have?" to identify strengths; they may be asked "Where do you need
improvement?” to identify weaknesses. Similarly, they'd run through questions such as
"What market trends could increase sales?" and "Where do your competitors have market
advantages?" to identify opportunities and threats.

Using a SWOT analysis

A SWOT analysis should be used to help an entity -- whether it is an organization or an


individual -- to gain insight into its current and future position in the marketplace or
against a stated goal.
The idea is that because entities can see competitive advantages and positive prospects, as
well as existing and potential problems, they can develop plans to capitalize on positives,
address deficits or do both.
In other words, once the SWOT factors are identified, decision-makers should be better
able to ascertain if an initiative, project or product is worth pursuing and what is required
to make it successful. As such, the analysis aims to help an organization match its
resources to the competitive environment in which it operates.

34
SWOT analysis pros and cons

SWOT analysis can help the decision-making process by creating a visual representation
of the various factors that are most likely to impact whether the business, project,
initiative or individual can successfully achieve an objective.
Although that snapshot is important for understanding the multiple dynamics that impact
success, a SWOT analysis does have its limits. The analysis may not include all relevant
factors for all four elements, thereby giving a skewed perspective. Moreover, because it
only captures factors at a particular point in time and doesn't allow for how those factors
could change over time, the insight it offers could have a limited shelf life.

35
Research Methodology

Data are facts that may be obtained from several sources.


Data can be classified as:
 PRIMARY DATA
 SECONDARY DATA

PRIMARY DATA
Primary data is gathered for first time by researcher. If secondary data is found to be
inadequate or unavailable, the researcher goes for primary data.
COLLECTION OF PRIMARY DATA:
Data is to be collected from different wholesale and retail outlet of biscuit namely
 Shop
 Confectionary
 KIRYANA and general store

SECONDARY DATA
Data borrowed from secondary sources by researcher. It can be internal and external that
is internal record of company or information available from library.

TYPE OF RESEACH:
Both quantitative and qualitative aspects were used.

SAMPLE SIZE:
100 Sample size were taken to complete the project.

SAMPLING TECHNIQUE:
Sampling technique adopted for this study is convenience sampling.

36
Statement of Problem
 Unpredictable Behavior
Human behavior is unpredictable. Marketing research attempts to measure the behavior
of a group of individuals, but there is no guarantee that the measured behavior will be
repeated in the future.

 Duplication
Results cannot be replicated. It is not possible to conduct a research project in such a way
as to produce the exact same results when using a different facilitator and a different
group of respondents. Humans are individuals, and no one human being acts or responds
in the same way as any other human being.

 Different Interpretations
Results can be interpreted differently. Faced with survey results indicating that eight out
of 10 dentists would recommend a particular product, one business executive may feel
that this is a result that can be used in an advertising campaign, while another executive
may feel that 80 percent approval falls short of a positive product endorsement.

 Size of area
The area where survey was done is very small as whole population can not be recorded
which results in assumption based data.

37
Industry Profile

India biscuit market stood at $ 3.9 billion in 2016, and is projected to grow at a CAGR
of 11.27%, in value terms, during 2017-2022, to reach $ 7.25 billion by 2022.  Rising
number of health-conscious consumers, expanding working population and increasing
urbanization are boosting the country’s biscuit market. Moreover, augmenting
disposable income along with changing lifestyle, increasing awareness regarding
healthy diet and change in food consumption pattern are some of the other factors
expected to propel demand for biscuits over the course of next five years.

 The biscuits and cookies industry in India, valued at INR 145bn (~USD 2.41bn)
in FY 2014, has been growing at a CAGR of ~10% over the last three years. ValueNotes
estimates that the industry will be worth nearly INR 279bn (~USD 4.65mn) by FY 2019,
growing at a CAGR of ~14%.

 Growth of this segment is expected to slow down as manufacturers are offering


discounts to push volume sales, which in turn has slowed down the value growth of the
industry

 The share of glucose biscuits is expected to decline as they have reached a point
of saturation. With rising incomes, consumers are being lured towards cream biscuits and
cookies instead of glucose biscuits

 Share of premium biscuits is likely to increase by FY 2019 as manufacturers are


now aggressively entering the premium biscuit and cookie segment on account of higher
margins prevalent in the segment

 Increase in disposable income, changing lifestyles, growth in organized retail and


increasing consumption of processed and packaged food are the main drivers of the
industry

38
 Latest trends witnessed in the industry reveal that companies are engaged in
improving product packaging

 Also, concerns like growing media coverage on health, rising incidence of health
conditions, increasing concerns over physical appearance, changing lifestyle and soaring
costs of healthcare have led the biscuits and cookies market to move towards a healthier
path.

Here are some companies working under biscuit industry:

Parle-G
Parle Glucose biscuits, manufactured by Parle Products Pvt Ltd, are one of the most
popular biscuits in India. Parle-G is one of the oldest brand names as well as the largest
selling brand of 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 on the
front. Counterfeit companies have attempted tore create and sell lower quality products of
similar names with virtually identical package design. The company's slogan is G means
Genius
. The name, "Parle-G", is derived from the name of the suburban rail station, Vile
Parle which in turn is based on village Parle in olden days (there is also area called Irle
nearby where the Parle Agro production factory is based).This popular biscuit is
primarily eaten as a tea-time snack. Parle-G is the largest selling biscuit in the world. It
has a 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
2,000crore (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 3,500crore (Rs 35 billion). It
also is popular across the world and is starting to sell in Western Europe and USA

39
As per the latest filings, Parle Products earned Rs9,331.42 crore in revenue from
operations in FY16, up 2.57% year-on-year while its profit after tax was nearly Rs500
crore, up 15.17% year-on-year. The company declined to share the latest financials.

Mar
  Mar 16 Mar 15 Mar 14 Mar 13
17

12
  12 mths 12 mths 12 mths 12 mths
mths

INCOME
Other Operating Revenues 0.27 0.24 0.20 0.17 0.00
Total Operating Revenues 0.27 0.24 0.20 0.17 0.00
Other Income 0.00 0.00 0.00 0.00 0.22
Total Revenue 0.27 0.24 0.20 0.17 0.22
Standalone Profit & Loss account ------------------- in Rs. Cr. -------------------
In 2013, market research firm Nielsen certified Parle-G as the world’s largest biscuit
brand with Rs5,000 crore sales, ahead of international giants such as Mondelez
International Inc. (that sells Oreo in India) and United Biscuits, among the top brands in
the UK, which is one of the world’s largest markets for biscuits.

40
Britannia
Britannia Industries Limited is a food company, which is engaged in the manufacture of
biscuits, cakes and rusks. The Company operates through the Foods segment, which
comprises bakery and dairy products. The Company's product brands under biscuits
category include Good Day, Crackers, NutriChoice, Marie Gold, Tiger, Milk Bikis, Jim
Jam + Treat, Bourbon, Little Hearts, Pure Magic and Nice Time. Its products under
breads include Whole Wheat Breads, White Sandwich Breads and Bread Assortment. Its
products under diary category include Cheese, Fresh Dairy and Accompaniments. Its
products under cakes category include Bar Cakes, Veg Cakes, Chunk Cake, Nut & Raisin
Romance, and Mufills. Its product under rusk category includes Premium Bake. 

Mar '17 Mar '16 Mar '15 Mar '14 Mar '13

12 mths 12 mths 12 mths 12 mths

Income
9,324.1
Sales Turnover 8,907.77 8,027.51 6,912.71
1
Excise Duty 270.02 228.92 169.09 0.00
9,054.0
Net Sales 8,678.85 7,858.42 6,912.71
9
Other Income 150.54 89.65 234.02 33.59
Stock Adjustments 54.20 4.27 30.40 11.51
9,258.8
Total Income 8,772.77 8,122.84 6,957.81
3

41
Nestle
Nestle S.A. is a nutrition, health and wellness company. The Company's segments are
Zone Europe, Middle East and North Africa (EMENA); Zone Americas (AMS); Zone
Asia, Oceania and sub-Saharan Africa (AOA); Nestle Waters; Nestle Nutrition, and
Other Businesses. The Company operates in the United States, Greater China Region,
Switzerland and Rest of the World. The Company's product categories include powered
and liquid beverages; water; milk products and ice cream; nutrition and health science;
prepared dishes and cooking aids; confectionery, and PetCare. Its other business activities
include the operations of Nestle Professional, Nespresso, Nestle Health Science and
Nestle Skin Health. It operates in approximately 190 countries throughout the world. It
has sales in various countries, including the United States, Greater China Region, Brazil,
Mexico, Germany, the United Kingdom, Italy, Canada, France, Turkey, Ukraine,
Georgia, Hungary, Malta, Romania, Spain and Switzerland.

Dec 16 Dec 15 Dec 14 Dec 13 Dec 12

12 mths 12 mths 12 mths 12 mths

INCOME
Revenue From Operations [Gross] 9,491.72 8,430.44 10,129.50 9,379.87
Less: Excise/Sevice Tax/Other Levies 332.44 307.17 323.23 317.97
Revenue From Operations [Net] 9,159.28 8,123.27 9,806.27 9,061.90
Other Operating Revenues 64.52 52.04 48.57 39.15
Total Operating Revenues 9,223.80 8,175.31 9,854.84 9,101.05
Other Income 149.39 110.09 87.32 83.09
Total Revenue 9,373.19 8,285.40 9,942.16 9,184.14

42
Analysis and Interpretation of Data

1. Age group

Age group Customer


Up to 15 30
15-30 45
30 and above 25
Total 100

Upto 15
30 and above 30%
25%

15-30
45%

43
2. Type of area

Area Customer
Rural 22
Urban 78
Total 100

Rural
11%

Total
50%

Urban
39%

44
3. Frequency of biscuit customers take from distributer.

Frequency Customers
Once in a week 45
Twice in a week 35
Thrice or above 20
Total 100

Thrice or above
20%
Once in a week
45%

Twice in a week
35%

45
4. Brand customers prefer when it comes of biscuits.

Brand Customer
Parle 55
Britannia 20
Nestle 23
Total 100

Nestle
23%

Parle
56%

Britannia
20%

46
5. Brand preferable by diet conscious.

Brand Customer
Parle 30
Britannia 20
Nestle 50
Total 100

Parle
30%

Nestle
50%

Britannia
20%

47
6. Customers bake biscuits at home?

Product Customers
No 78
Yes 22
Total 100

Coffee
22%

Tea
78%

48
7. Brand preferred in case of cream biscuits.

Brand Customer
Parle 55
Britannia 40
Nestle 5
Total 100

Nestle
5%

Britannia
40%
Parle
55%

49
8. Product mostly consumed.

Product Customers
Nestle Breakaway 10
Parle G 35
Tiger Crunch 30
Hide N Seek 25
Total 100

Soft drinks Coffee


25% 10%

Biscuits
35%

Chips
30%

50
9. Most important factor when buying a product.

Product Customer
Price 25
Quality 30
Brand 35
Availability 10
Total 100

Price
Availability 25%
10%

Brand
35%

Quality
30%

51
10. Brand preferred on overall basis.

Brand Customer
Parle 46
Britannia 24
Nestle 30
Total 100

Nestle
30%

Parle
46%

Britannia
24%

52
Findings

1. Most of the customers belong to 15yrs-30 yrs group.


2. Most of the customers belong to urban area.
3. Most of the customers consume products once in a week.
4. Parle is most preferred brand in biscuit category.
5. Nestle is preferred by most of the diet conscious.
6. Most of the customers don’t prefer to bake biscuits at home.
7. Most of the customers, consumer Parle G in cream biscuits category.
8. Most of the customers, consumer Parle G when it comes of cream biscuits.
9. Quality preferred above all by customers.
10. Parle over all preferred by customers.

53
Conclusion

It is 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 today’s times when multinationals are beefing up their operations
and trying to change the dynamics of the market, Parle G’s numerous position is
unchallenged. 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.
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”.
Diet conscious customers prefer Nestle over other 2 brands but they hold a limited
market share as they are costly and very less available.

54
Recommendations

1. Companies 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 skill 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. Companies should adopt innovative packaging techniques, as they have their own
packaging unit as consumers are highly attracted towards new packaging.

5. The companies should take proper action against the schemes and offers that are gulped
by the middlemen, and that why it’s benefits does not reach customers.

55

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