1/9/2020 Parle must get the marketing mix right for Rol-a-Cola 2.

0 - bloc

09 Dec 2019 18:53 IST

Sanjib Dutta | Anil Anirudhan

Parle must get the marketing mix right

for Rol-a-Cola 2.0

What strategy should Parle adopt to clock ₹1-billion sales within a year of
relaunching Rol-a-Cola?

I n February 2019, a Twitter user from Kerala posted a picture, with the tweet “Dear Parle.
Bring this back”. The tweet urged Parle to bring back Rol-a-Cola, a cola-flavoured candy,
production and sales of which it had discontinued in 2006. Even though the product was
taken off the shelves in India due to product rationalisation, Parle continued to sell it in
international markets in Africa and West Asia.
Following 10,000 retweets for the recall of Rol-a-Cola in a month, Parle decided to bring back
the iconic brand. As of October 2, 2019, the #BringRolaColaBack campaign had secured more
than 0.7 million impressions on Twitter. B Krishna Rao, Senior Category Head at Parle, said
that a brand comeback based on consumer demand using social media as a platform was a
unique experience in the marketing of Parle products, and that the company was looking
forward to achieving sales of 200 tonnes of Rol-a-Cola in the first year of its re-launch. Parle
expected to achieve sales of ₹1 billion, accounting for 10 per cent of its overall turnover in the
first year of Rol-a-Cola’s re-launch.

https://bloncampus.thehindubusinessline.com/case-studies/parle-must-get-the-marketing-mix-right-for-rol-a-cola-20/article30255769.ece 1/4
1/9/2020 Parle must get the marketing mix right for Rol-a-Cola 2.0 - bloc

By mid-September 2019, Parle had started production and distribution of the candy across
stores in India. It planned to reach 0.5 million stores within the first six months of the re-launch
of Rol-a-Cola. Krishna Rao observed that even after 13 years, there was space for the brand in
the Indian market and they should not have discontinued it in 2006.
Background
The recall of the Rol-a-Cola brand was seen by many analysts as a strategy to offset the losses
incurred by Parle because of falling demand for its Parle-G biscuits (Parle-G). Parle-G was
launched in 1939 as a low-cost alternative to expensive British biscuits, that were not affordable
for the common people in India. Parle-G’s low price (₹5 for a standard pack) and deep reach
(available even in the remotest villages) enabled Parle to claim a leadership position in the
volume-driven and price-conscious biscuit segment. Even in the mid-1990s, after the launch of
Tiger biscuits by Britannia Industries in the low-cost format, Parle did not change its price.
According to market research firm Nielsen, Parle-G was the largest selling biscuit brand in the
world in 2010.
In 2019, the standard biscuit variants of Parle, which comprised milk and glucose biscuits, saw
a 7-8 per cent drop in sales. The company attributed the economic slowdown and the high GST
on biscuits to low sales. In August 2019, Parle-G had the worst sales, and the biscuit-maker was
mulling options to lay off 10,000 employees.
Confectionery Market in India
The confectionery market in India is valued at around ₹100 billion, with candy occupying 30
per cent of the market. Parle’s share in the confectionery market was around 20-21 per cent and
it planned to add 2-5 per cent by 2020 with the re-launch of Rol-a-Cola. The various
confectionery brands of Parle were Kismi Range, 2in1 Eclairs, Cafechino, Friberg Range,
Mazelo, Londonderry, Poppins, Mango Bite and Orange Bite.
Parle’s competitors in the Indian confectionery market are Mondelez, Mars Wrigley (Mars), and
Perfetti Van Melle (Perfetti). Mondelez was the leader with a market share of 66 per cent as of
2019, and its brands include Cadbury, 5-Star, Gems, and Perk. Mars’ brands include Mars
chocolate, Bounty, Snickers, Spearmint and Wrigley juicy fruit. Perfetti’s brands are Alpenliebe,
Mentos, Chocoliebe Eclairs, Alpenliebe, Juzt Jelly, Centerfresh, and CenterFruit.
Rol-a-Cola 2.0: Old Candy in New Packaging
Parle had launched the Rol-a-Cola candy in the early 1990s, around the same time the Coca
Cola beverage was launched in the Indian market, then priced at ₹10 per bottle. As most Indians
considered the price of Coca Cola a bit steep, Parle saw an opportunity to fill the gap and came
up with a cola-flavoured candy priced at ₹2 per pack. The candy was a fusion of Poppins
(another Parle brand) and the coca flavor.
In the re-launched Rol-a-Cola, the flavour and formulation were expected to remain the same,
with more vibrant packaging and bigger candy size, in tune with the preferences of the target
group of 13 years and above, including millennials (See graphic on old and new packaging).
Relaunch Powered by Digital Media
Parle worked along with ad agency ‘Please See’ to relaunch the Rol-a-Cola brand and had
earmarked 100 per cent of the advertising funds for the digital launch. The theme for the re-
launch campaign on social/digital media was that Rol-a-Cola had gone on a long vacation
abroad, had felt really homesick and was returning to India, stronger, bigger and sharper (See
Graphic on re-launch campaign of Rol-a-Cola).
The digital platforms included Twitter, Instagram, Facebook, and LinkedIn. Other digital
initiatives included integration of the brand with the Web series and release of the digital films
on OTT (over the top) platforms such as Voot, Hotstar, ZEE5, and SonyLIV.
Competitive pricing
https://bloncampus.thehindubusinessline.com/case-studies/parle-must-get-the-marketing-mix-right-for-rol-a-cola-20/article30255769.ece 2/4
1/9/2020 Parle must get the marketing mix right for Rol-a-Cola 2.0 - bloc

Before 2006, the candy was sold at ₹2 per pack

and, in its new avatar, it was sold in two pack
sizes priced at ₹5 and ₹20. The low cost was expected to ensure affordability, even for kids.
Banking on distribution
https://bloncampus.thehindubusinessline.com/case-studies/parle-must-get-the-marketing-mix-right-for-rol-a-cola-20/article30255769.ece 3/4
1/9/2020 Parle must get the marketing mix right for Rol-a-Cola 2.0 - bloc

Parle had started production and distribution of re-launched Rol-a-Cola by mid-September

2019 and, by the end of the month, had sold 20-25 tonnes in the Indian market. The
distribution initially started in the southern market and moved to the North and East and
finally to the western market. The production facility for Rol-a-Cola is located in Indore, close
to the western market. With a good distribution network, Parle expects Rol-a-Cola to become a
₹500 million brand in the next six months and a ₹1-billion brand in the next 12 months.
Will Rol-a-Cola garner sales for Parle?
Even though Rol-a-Cola had garnered sales of 20-25 tonnes by the end of September 2019,
analysts opined that it was too early to conclude that the trend will continue in the future. It
remains to be seen if Rol-a-Cola will be able to make up for the decline in sales of Parle-G and
become a ₹1-billion brand by October 2020.
Your Assignment
Consider yourself part of a team tasked with analysing the marketing strategy of Parle for
relaunching Rol-a-Cola in India.
· What promotional strategy should Parle adopt for Rol-a-Cola to appeal to the
rural market?
. Parle has traditionally used a low-pricing strategy. Should it employ a different
marketing strategy for Rol-a-Cola in urban and rural markets?
· What strategy should Parle adopt to ensure long-term sales of Rol-a-Cola?
Send in your strategy, with graphics if needed, to blcasestudies@thehindu.co.in not later than
midnight of January 12. You can work in teams of two students, though solo entries are
accepted too. Entries should be no more than 850-900 words long. Read the detailed contest
rules on the Case Studies page.
(Sanjib Dutta is Research Lead and Anil Anirudhan is a Sr Research Associate at
the Case Research Centre, ICFAI Business School, Hyderabad)
Sources for graphics: https://www.adgully.com/a-tweet-bhaag-milkha-bhaag-the-
story-of-parle-rol-a-cola-s-comeback-88710.html

https://bloncampus.thehindubusinessline.com/case-studies/parle-must-get-the-marketing-mix-right-for-rol-a-cola-20/article30255769.ece 4/4