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    Parle G Marketing Strategy PDF

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    Ravikumar Amrutha
    Parle-G is the market leader in the Indian biscuit industry, with a 35% market share. It faces rising costs of raw materials like wheat and sugar. Maintaining the affordable Rs. 4 price point of Parle-G while covering higher production expenses is a challenge. The document analyzes Parle's strengths, and suggests solutions like slight price increases for premium biscuits, stronger protection against copycat brands, and comparative advertising against key competitor Britannia.

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    Parle G Marketing Strategy PDF

    Uploaded by

    Ravikumar Amrutha
    2K views41 pages
    Parle-G is the market leader in the Indian biscuit industry, with a 35% market share. It faces rising costs of raw materials like wheat and sugar. Maintaining the affordable Rs. 4 price point of Parle-G while covering higher production expenses is a challenge. The document analyzes Parle's strengths, and suggests solutions like slight price increases for premium biscuits, stronger protection against copycat brands, and comparative advertising against key competitor Britannia.

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    detailed study on marketing strategy of parle g

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    parle-g-marketing-strategy.pdf

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    Parle-G is the market leader in the Indian biscuit industry, with a 35% market share. It faces rising costs of raw materials like wheat and sugar. Maintaining the affordable Rs. 4 price point of Parle-G while covering higher production expenses is a challenge. The document analyzes Parle's strengths, and suggests solutions like slight price increases for premium biscuits, stronger protection against copycat brands, and comparative advertising against key competitor Britannia.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    2K views41 pages

    Parle G Marketing Strategy PDF

    Uploaded by

    Ravikumar Amrutha
    Parle-G is the market leader in the Indian biscuit industry, with a 35% market share. It faces rising costs of raw materials like wheat and sugar. Maintaining the affordable Rs. 4 price point of Parle-G while covering higher production expenses is a challenge. The document analyzes Parle's strengths, and suggests solutions like slight price increases for premium biscuits, stronger protection against copycat brands, and comparative advertising against key competitor Britannia.

    Copyright:

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    of 41

    Marketing Strategy Group - 6

    PRESENTATION OVER VIEW


    Overview of Biscuit Industry in India Porters Model About Parle Parle Products Parle SWOT analysis About Parle G Biscuit Parle G - Future Challenges Our Suggestions

    Introduction on Biscuit Industry


    Biscuits market in India : Rs 9,000-crore (Rs 90-billion) Annual growth rate of Biscuit Industry as follows:
    % Growth 18 16 14 12 10 8 6 4 2 0 2003-04 2004-05 2005-06 % Growth 2006-07 2007-08

    Yr. 2008.exemption 14 15 % annually Steady growth of from Central Excise Duty

    Annual production Biscuit Industry

    Annual Production of Biscuit in India

    18 16 14 12 10 8 6 4 2 0 2003-04 2004-05 2005-06 2006-07 Lakh MT

    YoY growth shows rising consumption in India

    Biscuit Industry profile

    Two Sectors of Biscuit Industry

    Un Organised Sector 40%

    Organised Sector 60%

    Organised : Unorganised :: 40 : 60

    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 1.8 kg, South East Asian Countries 2.5 kg to 5.5 kg USA 7.5 kg

    Biscuit Industry major players

    Porters Five Force model

    Threat of Substitute

    Threat of New Entrants

    Bargaining power Of suppliers

    Competitive Rivalry Within industry

    Bargaining power Of Customer

    Porters Five Force model

    Substitute

    Traditional Indian homemade snacks, Bread, Package Snacks Bakery product.

    New Entrants

    Capital Sensitive: Manufacturing, Advertising, Distribution network,

    Suppliers`

    Basic commodities : Wheat, Sugar. Increasing price

    High competition Among existing players

    Many biscuit from low to moderate Range, Like of bakery product

    Customer

    HIGH

    LOW

    Biscuit Industry major players

    Major Mkt Share ( Organised Sector)

    Others 10% Priyagold 15% Parle G 35%

    Sunfeast 9% Britania 31%

    ABOUT PARLE

    Established in 1929 1st brands Parle Glucose and Parle Monaco Market leader in many products Won acclaim at the Monde selection since 1970 35% share of the total biscuit market 15% share of the total confectionery market 14 manufacturing units for biscuits & 5 manufacturing units for confectioneries Parle has largest such manufacturing units in India Annual turnover 2000 crores It has provided its products to the mass with the affordable range.

    Parle Products Biscuit.

    Parle Products Confectionaries.

    Parle Products Snacks.

    SWOT Analysis of Parle

    SWOT Analysis of Parle

    Strengths
    Parle Brand, Diversified product range, Extensive distribution network. Low and mid price range Catering to mass, Better understanding of consumer psyche

    Weakness
    Dependence on retailers & grocery Stores for displaying diversified Parle Products on shelf, induce impulsive buy Dependence on Parle G (flagship brand)

    Opportunities
    Estimated annual growth of 20% Low per capita consumption, Changing consumer preference, Increasing demand for sugar free, Diet biscuit,

    Threats
    Hike in cost of production due to hike In Raw material cost, Increasing distribution cost, Local bakery products, Entry of various new entrant, ITC etc.

    About Parle G Biscuit


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

    Parle G - Target base


    Parle-G is consumed by people of all ages, from the rich to the poor, living in cities & in villages. While some have it for breakfast, For others it is a complete wholesome meal. For some it's the best accompaniment for tea, While for some it's a way of getting charged whenever they are low on energy. Parle company practices mass marketing for Parle- G which appeals to masses. It is a product liked by everyone and does not cater only to a specific group or part of the whole market. Thus it is mass production, mass distribution and mass promotion of Parle- G for all buyers.

    Consumer psyche and Parle - G


    Parle-G is consumed by people of all ages, from the rich to the poor, living in cities & in villages. While some have it for breakfast, for others it is a complete wholesome meal. For some it's the best accompaniment for chai While for some it's a way of getting charged whenever they are low on energy.

    Parle G as a Brand
    The brand is associated with the positive values of life like honesty, sharing and caring. The incredible demand led Parle to introduce the brand in special branded packs and in larger festive tin packs. It is synonymous to energy & nutrition. It has become a part of the daily lives of many Indians. It wasn't a biscuit any more. It had become an icon. Parle G conjures up fond memories across the length and breadth of the country. Be it a big city or a remote village of India, the Parle G symbolizes quality, health and great taste.

    Parle - G and Price mix


    Parle G has adopted the Market Penetration strategy i.e. low price along with capturing of a large market Also they focus on providing good quality products at the same time, which means it uses the value pricing method. The value-for-money positioning helps generate large sales volumes for the products. Parle G is available in Re 1,Rs 2, Rs 4 to Rs 25 packet Profit margin for distributors is 4% and for retailers is 10-12% Parle-G maintained its price of Rs.4.00 for the last 12 yrs & has seen the variation in its sales due to increase in price by mere 50p.

    Parle - G and Place mix


    The extensive distribution network, built over the years, is a major strength for Parle Products. Parle G biscuits are available to consumers, even in the most remote places and in the smallest of villages with a population of just 1500. Parle has nearly 1,500 wholesalers, catering to 4,25,000 retail outlets directly or indirectly. A two hundred strong dedicated field force services its huge wholesalers & retailers network. Additionally, there are 31 depots and C&F agents supplying goods to the wide distribution network. Factories at strategic locations & Establishment of manufacturing units in rural areas

    Parle - G and promotion mix


    Advertising - It was advertised mainly through press ads. The communication spoke about the basic benefits of energy and nutrition.

    In 1989 Parle-G released its Dadaji commercial which was a huge success and was aired over a period of 6 years. The communication spoke about the basic benefits of energy and nutrition.

    Parle - G and promotion mix (contd..)


    The next level of communication associated the brand with the positive values of life like honesty, sharing and caring. Just a few months back a reminder TV commercial was launched for Parle-G where the product is being called hindustan ki takat

    Recently Parle G has started the use of celebrity in their advertisements

    Parle - G and promotion mix (contd..)


    Sales promotion - Every year it holds day fairs at branded venues where
    games and fun events are organized for the employees of Parle and their families; where Parle products are giveaway prizes.

    Public relations - Parle has done the following for enhancing public
    relations: In the year 1997, Parle-G sponsored the tele-serial of the Indian superhero, Shaktimaan that went on to become a huge success. In the year 2002, a national level promo - `Parle-G Mera Sapna Sach Hoga' was run for a period of 6 months. The promo was all about fulfilling the dreams of children. Parle Saraswati Vandana, one of its initiatives, is an inter-school contest based on the Saraswati Puja celebrations. Since it started in 2002 it has seen a tremendous increase in participating each year, with entries coming from schools of West Bengal. Parle had introduced the novel promotion called Parle Golu Galata contest in 2005. (Golu means Doll & Galata means Dhammal.)

    Parle - G and Competitors


    Competition to Parle G is from following players : -

    Lets do strategic mapping on following ground : Price Distribution, Nutrition content Brand, Innovation Technology, Packaging.

    Parle - G and Competitors Price Distribution

    HIGH

    PRICE

    Marico Horlicks

    Sunfeast Priyagold Britania Parle-G

    LOW LOW

    DISTRIBUTION

    HIGH

    Parle - G and Competitors Nutrition content Brand

    HIGH

    Parle-G Britania

    NUTRITION CONTENET

    Priyagold Horlicks Marico

    Sunfeast

    LOW LOW

    BRAND

    HIGH

    Parle - G and Competitors Innovation Technology

    HIGH

    Parle-G Britania Priyagold Sunfeast Horlicks Marico

    INNOVATION
    LOW POOR

    TECHNOLOGY

    ADVANCED

    Parle - G and Competitors Packaging

    Parle-G Britania Priyagold Sunfeast Horlics Marico

    POOR

    PACKAGING

    ADVANCED

    BREAKING NEWS

    Parle - G and Challenges

    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. Should Parle increase price of flagship brand PARLE G?

    Parle - G and Group suggestions


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

    Parle - G and Challenges


    Even though the Parle is market leader in the segment, others are also trying to capture the chunk of market share. Fake brands like Parel G, Parle Jee tried to extract market share. How ever only serious competition faced by Parle G is from Britania Tiger biscuit.

    Comparative Analysis of Parle - G and Britannia Tiger

    Comparative Analysis of Parle - G and Britannia Tiger


    Nearest competitors in Glucose Category. Tiger gained 28 % Market Share in 100 gram Glucose biscuit segment in a short span of 7 years (1997 2004) VERSUS Parle G established since 60 years 57 % Market Share in this segment., 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. HOWEVER .

    Comparative Analysis of Parle - G and Britannia Tiger


    PARLE Gs QUALITY = BRAND LOYALTY
    Percentage of Respondents

    C m a no T e A dP rle-GM yT ste o p riso f ig r n a ilk a


    T e ig r M yT ste ilk a
    7 .5 5

    P rle a -G

    4 0.5 2 6.5 3 .5 0 0 2 .5 AL ittle H igh 0 J stR h u ig t 6 .5 AL ittleL w o 0 V Lw ery o

    2 9.5

    1 .5 5 Cn S y a 't a

    V yH h er ig

    N . o R o d ts: o f esp n en

    T er 0 ig -2 0

    Pr G 0 a le -2 0

    RESEARCH SAYS PARLE G CUSTOMERS PREFER PARLE G OWING TO ITS MILKY TASTE What should Parle G do to sustain the market leader position?

    Parle - G and Group suggestions


    Concentrate on rural market, why? Rural market penetration is 50 65% Parle G market reach very high but due to distribution network Consumer psyche: Recognize Not as Parle G but as biscuit ka puda. Need to increase awareness about the PARLE G as BRAND. How???

    Parle - G and Group suggestions


    Target young generation, i.e. school going children, Associate with various Government initiative like, Primary Education scheme, National Rural health mission centres, Mid-day meals being serve in primary school,

    This will help in Brand Registration, Associate Parle G as health food, and complete nutrition package

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