PRESENTED BY: GROUP 5

AVNISH BHUTRA-188058
DIVESH KUMAR-188094

Parle-G RAHUL GIRI-188188

RAJAT GARG-188193
ROHIT BHADOLA-188203
VAIBHAV SAVANI-188217
VAISHALI-188264

Company
 Started in 1929 as a
manufacturer of candies in
suburban Mumbai
 10 manufacturing units of
its own and 6 contracted
manufacturing facilities
 40% share in biscuit market
and 15% share in
confectionary market
 Major focus on biscuit
market than confectionary
market
 6,50,000 tons of biscuit
production per year, of
which 5,00,000 tons Parle-
G
 Exports contributed 5% of
Parle’s revenue
 “Follow the customer”
strategy of targeting the
Indian Diaspora
5-C Framework
Customer Competition
 2 types of consumers  Tiger, from Britannia
1. Retail Consumers Industries Ltd.
2. Institutional consumers  Sunfeast, from ITC Ltd.
 Retail consumers  Hindustan Unilever
constituted 60% of  Regional Players in
target audience of India
company  Nabisco in US
 Institutional consumers  United Biscuits in UK
constituted 10% of  Campbell Arnott’s in
Parle’s sales revenue Australia
2
Collaborators Context
 Upstream Collaborators:
 Row material, sugar and
Contracted manufacturers
wheat flour, increasing
 Downstream Collaborators:
 60% of target consumer
1. Brand ambassador: Amir Khan
growth is declining by
2. Wholesalers
 Hotels/Property owners 4% per annum
 OTAs  Major sales of Parle-G
 Travel bloggers dependent on 100gm
SKU of INR 4
 Major population
moving towards seekers
and aspirers
 Decision Problem & Alternatives 3

Decision Problem
What should company do to manage its decreasing revenue
margin because of increasing raw material prices?

Alternatives
 Reducing Grammage
 Premium Pricing & New Launches
 Increase in Price
 Evaluation of Alternatives 4

Effect on Brand
Customer Acquisition Customer Retention
Image

Yes, already tested in

Reducing Grammage No No effect
the past

Maybe,
Yes, increasing income Yes, as we are not
Premium pricing and new advertisements
leading to more consumption touching the Glucose
launches needed for positive
of premium product biscuit
reinforcement

No, new customers will be No, as sales in past

Negative effect as it
Increase in price acquired as it is a dropped by more
is a VFM brand
commodity than 40%
 Recommended Action 5

• Introduction of new premium biscuits

• Increasing the price of the premium products to cover for the low margins in Glucose
biscuits

Volume of Parle G sold 500k ton

Price of Parle G USD 1 per kg
Total revenue from Parle G USD 500 million
Margin lost (5%) USD 25 million
Volume from Non Glucose Parle biscuit 150k ton
Increase in price from Non Glucose
USD .167 per kg (25million/150k ton)
Parle biscuit
Conversion to INR (USD 1 = INR
INR 8.33 per kg
50)
Action plan to handle negative effect of non-selection of alternatives 6

• Introduction of new premium products under different brand name so that there is no
association with the original value for money Parle brand.
• The other alternatives like reducing grammage etc. are short term solutions and they
will not be sustainable in the long term for the overall profitability and competitive
position in the market.
THANK YOU