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Biscuit Industry profile Two sectors of Biscuit Industry Unorganised sector Organised sector 40% 60% .

5 kg .5kg • USA 7.8 kg. • South East Asian Countries 2.Introduction on Biscuit Industry • • • • Rural-urban penetration of Biscuit : Urban Market : 75% to 85% Rural Market : 50% to 65% Per capita consumption of Biscuits : INDIA 1.5 kg to 5.

35% share of the total biscuit market. • Parle has largest such manufacturing units in India. Market leader in many products. . 14 manufacturing units for biscuits & 5 manufacturing units for confectioneries.ABOUT PARLE • • • • • • Established in 1929. • Annual turnover 2000 cores . 1st brands – Parle Glucose and Parle Monaco. 15% share of the total confectionery market. • It has provided its products to the mass with the affordable range.

 Local bakery products.  Changing consumer preference.  Extensive distribution network.  Increasing distribution cost. ITC etc.  Increasing demand for sugar free.  Better understanding of consumer psyche  Market leader in glucose biscuit Opportunities  Estimated annual growth of 20%  Low per capita consumption.tiger biscuit )  Dependence on Parle G  (flagship brand) Threat  Hike in cost of production due to hike  In Raw material cost.  Diversified product range. induce impulsive buy.  Britannia capturing market slowly (eg.  Low and mid price range  Catering to mass.  Using advertising aggressively Weakness  Dependence on retailers & grocery stores for displaying diversified Parle Products on shelf.  Entry of various new entrant.  Britannia capturing market slowly (eg.SWOT ANALYSIS Strength  Parle Brand.tiger biscuit ) .

makes Parle-G a winner. • A cream colored yellow stripped wrapper with a cute baby photo containing 10 – 12 biscuits with the company’s name printed in Red and you know these are Parle G biscuits.About Parle – G Biscuit • Parle –G has been a strong household name across India. • It has been the undisputed leader in the biscuit category for decades . • The great taste. high nutrition. and the international quality. variety of biscuits did come and go but nothing has changed with these biscuits. • Times changed.

e. low price along with capturing of a large market. . • The value-for-money positioning helps generate large sales volumes for the products. • Also they focus on providing good quality products at the same time. Rs 4 to Rs 25 packet • Profit margin for distributors is 4% and for retailers is 1012% • Parle-G maintained its price of Rs. which means it uses the value pricing method.Parle .00 for the last 12 yrs & has seen the • variation in its sales due to increase in price by mere 50p.Rs 2. • Parle G is available in Re 1.4.G and Price mix • Parle G has adopted the Market Penetration strategy i.

where Parle products are giveaway prizes. Parle-G sponsored the tele-serial of the Indian superhero.Every year it holds day fairs at branded venues where games and fun events are organized for the employees of Parle and their families.Shaktimaan that went on to become a huge success. • Public relations . . As pat of promotion strategy it has started relying on celebrity endorsement giving a different perspective to the brand (the ad of Amir Khan which supported the tagline “G for Genius” .G and promotion mix • Sales promotion .Parle . • Advertisement – Since 2004 Parle has spent INR 600-700 million on advertising.Parle has done the following for enhancing public relations: In the year 1997.

Exploiteconomiesofscale(marketshare74%) • Be part of Government initiatives like Midday meal programme • Concentrate on Institutional sales and retail chains • Moving customers towards bulk purchases and ↑ rural penetration • Competing against Unorganized sector .FUTURE MARKETING PLAN •“Price drives and Not the Brand” •Use the increase in profits for funding activities OPTIONS 1.Delink price from brand positioning gradually • Reduce price sensitivity by Brand Building activities • Leverage the Brandpower of Parle-G to launch premium variants of Parle-G • Diversify the risk with new variants • Use Parle-G as an entrypoint 2.

 Rs.  Decrease in the overall growth rate due to customer shift for higher end biscuits.5SKU will give a greater headroom for tinkering grammage during future increase in input costs. .  Decrease in market share if competitors have deeper pockets. Long term: Increase in the market share due to brand building activities.IMPACT Short term: Increase in profits due to higher market share.

4 SKU(~80g) with Rs.5 SKU and ↓ Focus on Rs.4 immediately (VFM-BOP) • ↑ No.4 SKU • Cannibalize Rs. of biscuits and ↓ weight per biscuit which might be a value proposition for the customers Step2: • ↑ Focus on Rs.RECOMMENDATION “INCREASE THE PRICE-BUT AFTER DOING GROUND WORK” Step1: • Don’t change the price Rs.5 SKU(~90g) Step3: “Monitor the competitors & consumer’s reactions” .