Parle Products Limited

Sameer Alve –Section A

 PART A
EXTERNAL INDUSTRY ANALYSIS
 Industry Trend
• The biscuit industry is been experiencing
steady growth of 14-15% annually.
• In 2008, the growth exceeded 16% mark on
account of exemption from
• Central Excise Duty on biscuits.
Two Sectors of Biscuit Industry
 Annual Production:
• The organized biscuit manufacturing
industry‘s annual production figures show YOY
growth indicating rising consumption pattern
in India.
 Industry Players

Other Players
• HLL,
• Bisk Farm,
• Anmol,
• Elite,
• Cremica,
• Dukes,
• Anupam,
• Craze,
• Nezone
Major Market Share Holders –
Organized Sector
PEST
Opportunities & Threats
Strategic Maps
Strategic Maps
Strategic Maps
Strategic Maps
KSFs & Threshold Factors
Matrix –Put market share as last row
 PART B
• INTERNAL ANALYSIS
 Parle -Company Background
• • India's largest manufacturer of biscuits for
• almost 80 years.
• • With a reach spanning even the remotest
• villages of India.
• • 35% share of the total biscuit market in
India.
 Parle Values
• “The great tradition of taste and nutrition is
• consistent in every pack on the store shelves,
• even today. The value-for-money positioning
• allows people from all classes and age groups
• to enjoy Parle products to the fullest”
• Parle Products –Biscuits
• • Parle –G
• • Krackjack
• • Monaco
• • Kreams
• • Hide & See
• • Marie
• • Milk Shakti
Parle Production Factories
Competency Ladder
Strategic Competencies
Value Proposition
SWOT
 Recommendations
• To get benefits of growing biscuit
industry, I have following 3 recommendations to
Parle.
 Recommendation-1
• Promotion of Parle brand
• a. Promote Parle brand through schemes such as “Parle Gramin Swastha
• Yojana” (a network of ambulance van visiting rural areas giving basic
• medical treatments educating people on nutrition deficiency problems
• and promoting Parle nutritious products)
• b. Promote Parle brand through T. V. shows such as “Parle Sakhi” (“Parle -
• Friend of Women”). The weekly T. V. show will cater to health issues of
• women and children and will explain long term benefits of healthy diet)
• Results Expected – Improved sales through “Top of mind recall”.
• Reduced competition for ‘visible shelf space’ in small grocery
• and retail stores.
• Brand Loyalty.
• Communicating Parle value of ‘Nutrition Product’.
 Recommendation-2
• Study revenue and cost of each of the SKUs (products) of Parle
• ITC’s entry into the biscuit industry will pose challenges to the number one position
• Parle has held over decades. Before further diversifying into producing more
• products to cater to market niche, I recommend Parle to carry out detail study of
• each SKU.
• This is to avoid adding more complexity to existing production & distribution
• process with addition of SKU eventually leading to lowered net income.
• Results Expected –The study should help Parle forecast and plan future launches,
• stop producing unprofitable products and focus on emerging /
• highly demanded products.
• The study will also help Parle utilize its deep distribution
• channels effectively and efficiently as per consumer demand.
 Recommendation-3
• Advertise products segment wise as follows
• a. Nutritious/Glucose biscuits
• Advertisement by doctors/dieticians to explain the benefits to heath
• conscious consumers
• Advertisement by cricketers (Cricket is a very popular game in India) to
• attract youth
• b. Cream biscuits
• To be endorsed by bollywood(film) starts
• c. Marie
• To be advertised as a family tea time snack
• Results expected – Increased penetration in rural,
• southern and eastern market.
• Attracting health & diet conscious people.
INDUSTRY Framework
How the industry success factors
will change over next 8-10 years?
 Biscuit industry going forward
• With GDP growing at average of 8% and
• government’s spending on infrastructure
• projects, many local distributors will evolve
• and existing players will have penetrated deep
• inside urban and rural markets.
Thus, Distribution will no longer be a KSF
 Promotion & Alliances will emerge as
new KSFs
• Promotion –Industry’s ability to connect to large
• population through various promotional events (such as
• school’s industry visits to plant, talk & TV shows, rural
• programs) to target different age segment will decide the
• market share.
• Alliances –The biscuit manufactures able to maintain
• good relations with distributors, whole sale suppliers and
• regional institutions (through CSR and other community
• oriented activities) will have greater market share due to
• BUZZ (mouth publicity) and media attention.
 Will Price be still a success factor?
• Yes, very much.
• The industry players will try to lower the
• procurement, production and distribution costs
• through programs such as JIT, JITD, TQM, Per
SKU
• cost/Revenue analysis and will pass on these
benefits
• to end consumers in terms of lowered prices.
What will the new value proposition be
for Parle?