PARLE: IS A KING OF BISCUITS?

TEAM MEMBERS
Pritesh Chauhan Jigar Moradia Shannon Rosario Javed Shaikh Roshan Naik 63 88 95 102 120

OBJECTIVE

To know the market share of Parle biscuits To know how they market their product

To understand the strategies adopted by Parle to combat with its competitors

RESEARCH DESIGN

Exploratory research

Conclusive research Descriptive Casual

SAMPLE DESIGN AND SAMPLE

SIZE

Non probability sampling Sample size :100

The data is collected by the way of questionnaire, Personal interview

BISCUIT INDUSTRY IN INDIA

India Biscuits Industry has an annual turn over of around Rs 9,000-crore (Rs 90-billion) India is known to be the second largest manufacturer of biscuits

The organized and unorganized sectors of the biscuit industry is in the proportion Of 55%:45% ratio

Exports of Biscuit is estimated to around 10% of the annual production during the year 2006-07

BISCUIT INDUSTRY IN INDIA CONTD.

Per capita consumption of Biscuits in the country is only 1.8 kg Main Categories of Biscuits are broadly as under: Glucose Marie Sweet Salty Cream Milk

ANNUAL GROWTH

The biscuit industry in India witnessed annual growth as below: 2005-06 14% 2006-07 13% 2007-08 15% 2008-09 10% 2009-10 14% 2010-11 15% The biscuit industry has been growing almost at static level during the last decade.

ANNUAL GROWTH CONTD.

Annual Growth
16% 14% 12% 10% 8% 6% 4% 2% 0% 14% 15% 13% 10% 14% 15%

Series1
Source: IBMA (Indian Biscuit Manufactures Association)

ANNUAL PRODUCTION

The organized biscuit manufacturing industrys annual production figures are given below: (In Lakh Metric Tonnes)

2005-06 2006-07 2007-08 2008-09 2009-10 2010-11

14.29 16.14 17.44 16.57 18.25 19.10

ANNUAL PRODUCTION
Annual production
20 18

16.14
16 Lakh Metric Tonnes

17.44 16.57

18.25

19.1

14.29

14
12 10 8 6 4 2 0 2005-06 2006-07 2007-08 2008-09 2009-10 2010-2011 2005-06 14.29 2006-07 16.14 2007-08 17.44 2008-09 16.57 2009-10 18.25 2010-2011 19.1

Series1

Source: IBMA (Indian Biscuit Manufactures Association)

SEGMENTS

The organized and unorganized is in the proportion of 65%:35% ratio. EXPORTS of Biscuit was 10% of the annual production during the year 2007-08, which declined to around 7% in 2008-09 and witnessed higher growth of 12% and 15% in 2009-10 and 201011, respectively.

IMPORTS of biscuits into India has not shown any significant growth during the last two years and has not affected production/sales by the Indian Biscuit industry.

MARKET SHARE

Source : Economic times.

INTRODUCTION TO PARLE

India's largest manufacturer of biscuits and confectionery Makers of the world's largest selling biscuit, Parle-G

With a reach spanning even the remotest villages of India

36% share of the total biscuit market in India Parle-G has 70% market share in India in the glucose biscuit

PARLE PRODUCTS
PARLE-G KRACKJACK MONACO PARLE ORANGE KREAM HIDE AND SEEK MILANO DIGESTIVE MARIE MILK SHAKTI PARLE 20-20

PEST ANAYLSIS

PORTERS FIVE FORCE MODEL

BCG MATRIX

BCG MATRIX OF PARLE BISCUITS

Star
Milano Hide and Seek Parle Magix

Question mark
Parle Bourbon 20-20 cookies

Cash Cow Parle G

Dog Parle Coconut Kreams

SWOT ANALYSIS OF PARLE

MARKETING MIX
Target Market

Product
Product variety
Quality Design Features Brand name Packaging Sizes Services Warranties

Price
List Price
Discounts Allowances Payment Period Credit terms

Promotion
Sales Promotion
Advertising Sales Forces Public Relation Direct Marketing

Place
Channels
Coverage Assortments Location Inventory Transport

Returns

MARKETING STRATEGIES ADOPTED BY PARLE

Superior packaging Quality maintenance Online marketing Innovation Advertising Rural Marketing Strategies

PARLE-G PROMOTION MIX

Advertising In nascent years Parle mostly used print and outdoor media In 1989 Parle-G released its Dadaji In the year 1997, Parle-G sponsored the tele-serial of the Indian superhero, Shaktimaan In the year 2002, a national level promo `Parle-G Mera Sapna Sach Hoga' The year 2002 will go down as a special year in Parle-G's advertising history. A year that saw the birth of G-Man - a new ambassador for Parle-G Animated Super Hero

PARLE-G PROMOTION MIX

Commercial was launched for Parle-G where the product is being called Hindustan ki takat In 2007 when sales of Parle went down due to price rise in Parle-G 100gm by 50 paisa. Aamir Khan was brought in to endorse the product.

COMPETITORS

ABOUT PARLE-G BISCUIT

Parle G has been a strong household name across India since 1939 Its great taste, high nutrition, and the international quality, makes Parle-G a winner It has adopted the Market Penetration strategy i.e. low price along with capturing of a large market It is available in Rs 2, Rs 5 to Rs 25 packet Parle G biscuits are available to consumers, even in the most remote places It has nearly 1,500 wholesalers, catering to 4,25,000 retail outlets directly or indirectly

FACTORIES AND MANUFACTURING UNITS ACROSS INDIA

SUPPLY CHAIN OF PARLE G

ABOUT BRITANNIA TIGER

Britannia Tiger was launched in 1997 Largest brand in Britannia's portfolio

It has become the mass-market face of Britannia symbolizing fun and energy in both urban and rural India
Its market share in Glucose biscuits is 18%

COMPARATIVE ANALYSIS OF PARLE - G AND BRITANNIA TIGER

V/S

Tiger gained 28 % Market Share in 100 gram Glucose biscuit segment in a short span of 7 years (1997 2004) V/S Parle G established since 60 years 57 % Market Share in this segment.,

COMPARATIVE ANALYSIS OF PARLE - G AND BRITANNIA TIGER CONTD.

In 2006 07 Parle G raised price for its 100 gram pack by 50 paise (i.e.Rs. 4.50), while Tiger maintained its price at Rs. 4/-.

RESULT

Sales of Parle G dipped to Tiger. Customers of Parle G tended to switchover to Tiger. PARLE G is highly price sensitive since it caters to the bottom of the pyramid

FINDINGS AND ANALYSIS

Which brand of biscuit comes on your mind when you hear the word biscuit?

60%

56%

50%

39%
40% Percentage 30%

20%

10%

4%
Parle 56% Britania 39% Sunfeast 4%

1%
Priyagold 1%

0% Series1

FINDINGS AND ANALYSIS CONTD.

If you had a choice which one would you buy?
70%

60%
60% 50% Percentage 40% 30% 20% 10% 0% Parle Sunfeast Britania Priyagold Parle 60% Sunfeast 3% Britania 36% Priyagold 1%

36%

3% 1%

Series1

FINDINGS AND ANALYSIS CONTD.

How often do you have Parle biscuits ?
80% 70% 60% 50% 40% 30% 20% 10% 0% Everyday Sometimes Rarely Rarely 13%

79%

Percentage

8%

13% 0%
Never Never 0%

Series1

Everyday 8%

Sometimes 79%

FINDINGS AND ANALYSIS CONTD.

Which of the Parle biscuits have you tasted ?
100
100 90 80 70 Percentage 60 50 40 30 20

72 57

38

10
0 Parle-G Milano Hide & Seek Magix Parle-G 100 100 Milano 57 100 Hide & Seek 72 100 Magix 38 100

Series1 Series2

FINDINGS AND ANALYSIS CONTD.

Which Parle biscuit do you like?

9% 39% 28% Parle-G Milano Hide & Seek Magix

24%

What does Parle mean to you ?

45% 40% 35% 30% Percentage 25% 20% 15% 10% 5% 0% Yummy Healthy Strong G-Genius Yummy 22% Healthy 23% Strong 13% G-Genius 42%

42% 22%

23% 13%

Series1

FINDINGS AND ANALYSIS CONTD.

Does Advertisement influence you to buy Parle biscuits?
68%
70%

60%
50% Percentage

40%
30%

32%

20%
10% 0% Yes No Yes 68% No 32%

Series1

FINDINGS AND ANALYSIS CONTD.

5
5 4.5

4
4

4 3.5

4 4 3.5

4 3.5

4 4

3.5

3
On Scale of 5
3 2.5 2 1.5 1 0.5 0 Parle Britania maximum

Advertisement : 4 3 5

Taste: 3.5 4 5

Packaging: 4 4 5

Variety: 3.5 4 5

Cost: 5 3.5 5

Quality: 4 4 5

FINDINGS AND ANALYSIS CONTD.

Do you think Parle is the best biscuit brand?

68%
70% 60% Percentage 50% 40% 30% 20% 10% 0% Series1 Yes 68% No 32% Series1

32%

FINDINGS AND ANALYSIS CONTD.

What type of new biscuits you expect from Parle?
AGE GROUPS 10-20 20-40 BISCUITS CREAM BISCUITS LIKE OREO HEALTHY AND DIGESTIVE BISCUITS LIKE BISCUITS WITH NUTS AND FIBER

40-70

EASY TO DIGEST LIKE CREAM CRACKERS

PARLE - G AND CHALLENGES

Increasing prices of basic Raw material like, Sugar, Wheat, Milk, Milk powder. This leading to increase in manufacturing cost of the biscuits. Parle G very price sensitive product. Small increase in price (by 50 paise) in past had seen high decline in sales.

PARLE - G AND CHALLENGES

Fake products in market similar to Parle-G, can erode brand name like Bala G, Parel-G

SUGGESTIONS

Should keep the price of Parle G same and increase price of other high end variant products like Milano, Hide n Seek High end products can absorb the increased production cost This will help to cater to existing market without price change

SUGGESTIONS
Associate

with various Government initiatives

like

Primary Education scheme National Rural health mission centers Mid-day meals being serve in primary school

As

per our research people wanted Parle to come up with cheese and cream biscuit

RECOMMENDATIONS
Promotion of Parle brand Advertise products segment wise as follows

A. Nutritious/Glucose biscuits Advertisement by doctors/dieticians to explain the benefits to health 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

RECOMMENDATIONS

Increased penetration in rural, southern and eastern market

CONCLUSION
Parle is still a preferred brand in Biscuits in India among all age group. Consumers prefer to buy Parle Brands of Biscuits over its Competitors. Among all Parle biscuit products consumer rated Parle G as first choice followed by Hide & Seek, Milano and Magix. G-Genius is an successful marketing campaign which brought Parle company again to numero uno spot in Biscuits sector across India. Government should reduce excise duty from current 4% to 2% and VAT from 12.5% to 4%, this will make biscuit sector more profitable. Celebrity endorsements have helped to boost the Sales of Parle Products.