Product Life Cycle: Parle - G: Group 10

Product Life Cycle :
m
o.co
er
H
se
ur
PARLE - G
a Co
vi
d
re
sha
as
w
Group 10
ce
ur
so
re
This study source was downloaded by 100000831463115 from CourseHero.com on 09-17-2021 08:41:17 GMT -05:00
dy
https://www.coursehero.com/file/49867681/PARLE-Gpdf/
Summary
• Being a part of our lives for 80 years,
Parle-G can be termed as the biscuit of
m
.co
India.
o
• Launching in 1939, Parle - G adopted a
er
penetration strategy in the initial stages.
H
se
• The company came up with its first
ur
advertisement in 80's. It also sponsored
Co
various tele serials to increase its already
a
vi
established brand image.
d
• However, after the year 2006, it had stiff
re
sha competition from different other brands viz.
Priyagold, Sunfeast, and Britannia, therefore
as
w
it's market share started declining. But the

ce
charm is not over yet, and the brand is still

ur
working hard to sustain in the market.

so
re
dy
Introduction 1929 - 1949
• The Distribution was selective and scattered as the firm begin
m
.co
implementation of the distribution plan, and promotion was built by brand
o
awareness.
er
H
• The company used a penetration strategy as the market was captured by
se
foreign brands, so they found themselves necessary for the Indian market to
ur
Co
introduce themselves.
Company came up with Parle-G in 1939 and later Monaco-1942 and now
a
vi
owns a wide product category.
d
re
• Price was kept low in order to enter the market which led them to gain a
large market share and a lot of attention from the masses. sha
as
• Media spaces such as Paper media was mainly used for advertisement.
w
• In the initial stage, since the company was Mumbai based, they were
ce
introducing themselves, so profits were not high, but they were successful in
ur
so
gaining large attention in the market.

re
dy
Growth 1949 - 1997
m
• This stage is characterized by new product features, packaging options, increased
.co
advertisement, and promotion to increase brand preferences, improvement of
o
er
product quality, and delivery of products.
H
• By the early 50s, Parle G produced 150 tonnes of biscuits. Witnessing the growth,
se
the other me-too brands entered the market with names similar to Parle Gluco
ur
Co
biscuits which made the brand to change its name to Parle-G.
• This was the only brand whose demand outweighs the supply. Parle G was growing
a
vi
at a rapid pace and headed towards becoming the greatest brand of biscuit. It
d
re
started advertising in the early 80s through press ads, which communicated about
the benefits of energy and nutrition.
• Parle-G grew increasing in terms of sales, the areas, and market reach. The next
sha
as
w
level of communication associated the brand with positive values of life like honesty,
ce
sharing, and caring. In this stage also the price was kept as the price was not the
ur
motto. It used a differentiated pricing strategy as per the geography as the freight
so
charges for reaching the remote areas was high.

re
dy
Maturity 1997 - 2006
m
• Maturity Stage is characterized by peak sales and high profits. The
.co
company tries to retain its market share by using various marketing tactics.
o
er
• During this stage the company faced competition from brands such as
H
Priyagold, Sunfeast (ITC), Tiger (Britannia) as the emphasized on heavy
se
ur
promotional strategy by endorsing their biscuits through the likes of
Co
Shahrukh Khan.
a
• However, the company was able to sustain due to its customer loyalty and
vi
d
aggressive advertising by sponsoring tele serials and events.
re
• The company still followed penetration strategy by providing high quality
at the lowest price in comparison to its competitors.
sha
as
• It had around 1500 wholesalers, 425000 retail outlets in both Urban and
w
ce
Rural areas. They even reached out people through educational institutes,
ur
bus and railway stations, and NGOs.

so
re
dy
Decline 2006 - Present
m
• In this stage, the company started to phase out its weak and non-profit items and
.co
started cutting prices. They also phased out unprofitable outlets to reduce the
o
expenditure and started selective distribution.
er
• By this time the market had already been saturated and the sales also started to
H
se
decline. Few reasons that can be held accountable for the decline of Parle-G can be
ur
that the product became technologically obsolete or the taste of the customers may
Co
have changed over the years.
a
• Due to the brand loyalty that they were able to make in their growth they were able
vi
to push the decline stage that much further.
d
re
• Once the production volume goes down the unit cost increases and eventually there
is no room to make profits at the cost at which they are producing the product. sha
as
• For 12 years Parle-G was sold for the same price that was Rs.4 for 100gms, and Rs.2
w
for 50gms, but in 2004 they increased the price by 50 paise.

ce
• This did not affect the company initially but the effects were seen in the years that
ur
followed. The company started to loose its market share from 42.2%(2005) to 38.4%
so
re
(2006).
dy
Powered by TCPDF (www.tcpdf.org)

Product Life Cycle: Parle - G: Group 10

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Product Life Cycle: Parle - G: Group 10

Uploaded by

Copyright:

Available Formats

Product Life Cycle :

it's market share started declining. But the

charm is not over yet, and the brand is still

working hard to sustain in the market.

• The Distribution was selective and scattered as the firm begin

gaining large attention in the market.

charges for reaching the remote areas was high.

bus and railway stations, and NGOs.

for 50gms, but in 2004 they increased the price by 50 paise.

You might also like