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    Parle - G: "Hidustan Ki Takat"

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    vinaytoshchoudhary
    Parle is India's largest biscuit manufacturer established in 1939. Parle-G is their flagship brand and holds a 65% market share of the glucose biscuit market in India. It faces challenges from rising input costs but has maintained its positioning as a value-for-money brand. To address issues of profit margins and migration to premium brands, suggestions include slow price increases to match competitors, expanding product categories, and repositioning Parle-G through promotions to target urban consumers willing to pay more.

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    Parle - G: "Hidustan Ki Takat"

    Uploaded by

    vinaytoshchoudhary
    61 views25 pages
    Parle is India's largest biscuit manufacturer established in 1939. Parle-G is their flagship brand and holds a 65% market share of the glucose biscuit market in India. It faces challenges from rising input costs but has maintained its positioning as a value-for-money brand. To address issues of profit margins and migration to premium brands, suggestions include slow price increases to match competitors, expanding product categories, and repositioning Parle-G through promotions to target urban consumers willing to pay more.

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    PARLE - G

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    Parle is India's largest biscuit manufacturer established in 1939. Parle-G is their flagship brand and holds a 65% market share of the glucose biscuit market in India. It faces challenges from rising input costs but has maintained its positioning as a value-for-money brand. To address issues of profit margins and migration to premium brands, suggestions include slow price increases to match competitors, expanding product categories, and repositioning Parle-G through promotions to target urban consumers willing to pay more.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    61 views25 pages

    Parle - G: "Hidustan Ki Takat"

    Uploaded by

    vinaytoshchoudhary
    Parle is India's largest biscuit manufacturer established in 1939. Parle-G is their flagship brand and holds a 65% market share of the glucose biscuit market in India. It faces challenges from rising input costs but has maintained its positioning as a value-for-money brand. To address issues of profit margins and migration to premium brands, suggestions include slow price increases to match competitors, expanding product categories, and repositioning Parle-G through promotions to target urban consumers willing to pay more.

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    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 25

    PARLE - G


    “HIDUSTAN KI
    TAKAT”
    About PARLE


     Has a legacy of 80 years.
    Started in 1939.

     India's manufacturers of
    biscuits and confectionary.

     Known for its quality,


    nutrition & taste.

     Largest Selling Brand in


    world.
    About PARLE-G

     More than 1500 Wholesalers an 1.3 Million retail
    outlets

     Example of marketing brilliance for Competitors

     65 % of Glucose Biscuit market.

     Faith and trust


    Indian biscuit
    industry


    Organized Unorganized

    Household
    products, did not
    60% market share. India is 3rd largest have bank credits
    producer of and technology
    biscuits in world. access.
    Glucose


    Milk Marie
    Organized
    sector

    Cream Sweet Production of


    1.7 million tons
    of biscuits(p.a)-
    valued at
    INR110 billion
    glucose • Parle –G- contribution

    68%.

    Sweet
    • Premium categories.(Hide
    and and Seek, Cheeselings ,Jeffs,
    cream Fun Centre)

    • Tea time biscuit


    Marie
    Facts…
     In 2009 Parle facing a difficult situation involving potential
    pricing.

     Ingredients – sugar and wheat flour – price increased – 18
    months.
     Margins of Parle –G decreased by 15% - led to increase in
    price of product.
     Brand associated with Value for money
    (VFM).
     Product was sold as – 15 biscuit 82.5g sold at an MRP of Rs.4.
     Many new competitors were forced to bring down their
    margin to maintain competition.
    Facts…

    % Market Share Total Market(Crores)
    16 1420
    Parle Parle
    7 40 280
    Britania Britania
    640 ITC
    ITC
    Others
    Others
    37 1600
    Facts….
     In Jan 2004 – first attempt after 13yrs – rising cost.
     Hike of 50p.( 4 to 4.50 ) – 100g packets – which
    contributed 50% shares.


     Company rolled back the hike – 40% decrease in shares
    within six months.
     Next attempt was after 4 yrs – weight change was done
     100g to 92.5g and 16 biscuits to15.

    SEGMENTIN TARGETING POSITIONIN
    G G
    Segmenting

     Retail customers and institutional customers
    ( mothers and children – 1st segment), ( hospitals,
    factories , railway stations, schools etc – 2nd segment)
     Based on Geographic segmentation
    - urban , semi urban , rural.
     Based on socio –economic classification
    - mostly by lower and middle class
     Based on demographic factors
    - young population, working population,
    senior citizens
    Targeting

     Initial market – mass domestic market.

     New target – young children ( 5 to 14 age group was


    both users and influencers .formed 20% of
    population).
    Positioning

    1990s
    •

    brand identified – “ G – Genius”

    • Then mothers wanted their children to be “ all


    -rounder's”.“Smart kids grow up on a daily diet of
    2004 Parle –G”

    2006- • “Hindustan Ki Taakat”


    07

    • Aao Banaye Kal Ke Genius


    now
    BCG MATRIX

    M STAR ?
    A HIDE AND SEEK POPINS,WAFERS
    R
    K
    E
    T
    CASH COW DOG
    G
    R
    O PARLE – G KISMI BAR
    W
    T
    H
    MARKET SHARE
    Product life cycle

    Competitors

     Until 1996 – no competitor – Britannia launched

     2003 ITC launched

    Brand 2007 2008 2009

    Parle -G 67 69 74

    Tiger glucose 18 16 13

    Sunfeast 10 10 9

    Others 5 5 4
    Issues ….
     Inflation rates affected price of raw materials.

     How could pricing decision be made ?? What are the


    factors that influence ??


     What are the strategies to be followed for customer
    migration to high end biscuits.

     Should Kulkarni (G.M) suggest for a marketing plan –


    short and long term.

     Is VFM positioning sustainable what should be done to


    make it sustainable?
    Suggestions….

    Overcome inflation issues…

     Change in weight of packets like
    100g 92.5g consumers
    88g 82.5g noticed
    16 biscuits to 15 but they accepted.
    (due to no price change)

     Manufacturing centers were bought closer to wholesalers.


     Inflation not only affects Parle, it affects all. So its better to wait for
    the competitors to have a price hike.
     Package cost reduction – Wax coated paper
    Pricing decision factors
     Demand 
     Supply of raw materials

     Economic condition

     Governmental decisions

     Competitors price
    Pricing strategies

     VFM strategy to be followed – this created the image for
    brand.
     Parle refrained from price increase – which made
    competitors do the same.
     Though profit of Parle G has decreased from 15 to 10
    percent.
     Market share has increased significantly during this
    time
     Wait till other competitor start withdrawing.
     Having monopoly will help.
    Tackling migration…

     Repositioning of product by targeting the urban
    group. May be in milk and sweet category.

     Premium price – as people are ready to pay for


    premium brands.
    Value for Money
     CONS
    PROS
    Led to high market Reason for low
    share profit margin

    Value for Company cannot


    customers increase price due
    to VFM image

    Reason for market Rise in raw


    leading materials cannot be
    dealt
    Other suggestions..

    Parle may not only
    Expansion of their
    depend on one
    product category
    product.

    Aggressive add
    campaigns and
    promotion for
    repositioned
    product.

    Thank u… Presented by
    AGASTHYA
    SINDHU BHARATHI
    CHITRA MENON
    PARTH
    LINGESHWAR
    VIGNESH

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