CHAPTER 1

INTRODUCTION
Parle Products has been India's largest manufacturer of biscuits and confectionery for
almost 80 years. Makers of the world's largest selling biscuit, Parle-G, and a host of
other very popular brands, the Parle name symbolizes quality, nutrition and great
taste. With a reach spanning even to the remotest villages of India, the company has
definitely come a very long way since its inception.
Many of the Parle products - biscuits or confectioneries, are market leaders in their
category and have won acclaim at the Monde Selection, since 1971. With a 40% share
of the total biscuit market and a 15% share of the total confectionary market in India,
Parle has grown to become a multi-million dollar company. While to the consumers
it's a beacon of faith and trust, competitors look upon Parle as an example of
marketing brilliance.
Since 1929, Parle Products, with its wide platter of biscuits and sweets is also actively
engaged in changing and uplifting the social face of India. As part of its Corporate
Social Responsibility Policy, Parle is keenly involved in the overall development of
the younger generation, with a focused endeavor to build the New Face of India and
spread happiness and joy all over.
Some of our best habits, as we said, are also our oldest. Many of them date back to the
last decade of the 19th century. It was in the 1880s that the late Mohanlal Dayal came
to Bombay from his village Pardi, in the district of Surat, to work as a dusting boy at a
silk merchants. What a long way that bright little boy came! First, the hard
apprenticeship and the graduation to Master
Cutter, then the elite tailoring establishment that eventually developed into a
wholesale business to finally, the new business in confections and biscuits. Always,
the accent was on self-sufficiency. Mohanlal Dayal was not just a progressive and
astute businessman. He never gave in to the sense of indifference that often comes
with the commercial outlook. All through his life, he was deeply conscious of his
duties towards society and the community. He built the Shri Mohanlal Dayal Prasuti
Graha and General Hospital in Pardi, which is maintained through charity trusts set up
by him. The Shri Mohanlal Dayal Sanatorium and Hostel at Matunga in Bombay is

another such institution. In his memory and after his example, his sons have donated
significant sums to set up the Chauhan Institute of Science at Vile Parle.
Parle Centre of Excellence, as an institution, is dedicated to enriching the lives of
people by conducting various cultural programs across all regions to facilitate the all
round development of children. Every year, Parle organizes Saraswati Vandana in the
state of West Bengal during the festival of Saraswati Puja, inviting schools from all
across the state to participate. The event is one of much fanfare and celebration,
keeping alive the culture and traditions. The involvement in cultural activities has
seen the inception of Golu Galata in Tamil Nadu, held during Navratri. It provides all
the members of a household a platform to showcase their creativity and be judged by
eminent personalities. Thousands of families participate and celebrate the occasion on
a grand scale.
These events give us a chance to interact with children on a one-to-one basis, and
promote our belief of fun and health for the whole family.

OBJECTIVE

To deliver right SKU & Gift item to right place in right time.

To achieve internal customer satisfaction level to 95%.

And to increase the consumer base for newly launched product.

To penetrate market with greater share of business.

To leverage Parle G brand by having association with some other known brand.

To counterattack competitors strategy.

The consumer promotional offers are based on the principle of elasticity of demand.

SCOPE
The ultimate scope of this project is based on Marketing Strategy of Parle-G
product.In this project we think and design marketing strategy and analysis of parle-G
product, also think about its policy and it is helpful for the fix the standard about
purchasing of raw material. Tha main research of this project is pricing consistency

about parle-G product since 25 years so people may stick with the parle-G product
because of not raise the price .

LIMITATION

The study conducted in 45 days its not enough to such wast topic.
It is very difficult to storekeeper to pinpoint the sale of particular brand in both

organized and unorganized retail store

No paper data was available in store city.
As nature research was exploratory so it was difficult to cover each and every

topic .
Many User and retailer dont expect origin perception and view about the
product.

CHAPTER 2

RESEARCH OF METHODOLOGY

Research Design
Type and Nature of the Study:
The hypothesis that we want to study wants to find why is Parle-G number one
glucose biscuit.
This has made the research base to be cause and effect oriented. The problem was
taken in to
consideration looking at the data available on the consumption pattern of glucose
biscuit. The data
showed 65% of glucose biscuit market share is owned by Parle-G.
The consumption trends were also observed among the population surrounding us and
online
portals. The cause for this affection towards biscuit was not known hence the study
stresses on the
causes of why is this biscuit number one. The question designing was mostly kept
closed ended with
question targeting at the performance, conformance, aesthetics and reliability of the
product. The
product under consideration has no segment and is targeted at population in general
without
differentiating its consumers.
Sample Design: size
The sample to be chosen was people who have consumed Parle-G biscuits and there
was no
other criterion. The sampling technique used in this case was convenient sampling.
The chances of
6

errors were less, for the data, due to commonality of the product and positive response
of each of the
respondent. Also the data to be collected was of type which could be answered by
anyone who eats
biscuit. The sample contained male and females both, across all ages. There was no
duplication of
the sample as all the samples were from different areas which were in the proximity of
the interviewer.
The sample was up to date and the study was conducted recently and hence the data
was
relevant for the current timing. The method of sampling was random and hence
probabilistic. The
sample size also is not true representation of the population under consideration but
an experimental
sample of population. The numbers of samples were minimum 30 due to limitation on
time bases and
cost of research.
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 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.

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.
However only serious competition faced by Parle G is from Britania Tiger
biscuit

SOURCES OF DATA
There are two types of data namely primary data and secondary data.

PRIMARY DATA
This is project is not based on primary data.
SECONDARY DATA
This project based on secondary data. Information about project is collected by
various website, magazines, newspapers etc.

CHAPTER 3

PROFILE OF COMPANY :-

NAME OF COMPANY

:- PARLE

ADDRESS OF COMPANY :- Parle Products Pvt. Ltd.V.S. Khandekar Marg

Vile Parle East, Mumbai -400057,Maharashtra.

TELEPHONE NO.

:- (022)6691 6911 15

FOUNDER OF COMPANY :- British India

OWNER OF COMPANY

:- Chauhan family

WHEN STARTED

:- In year 1929.

WHERE STARTED

:-Vile Parle, Mumbai.

TOPIC DETAIL EXPLAIN

BISCUITS are the products of daily consumption.
Consumed by, one and all. And when it comes to Parle biscuits, it is loved by all.
Parle Products Company was founded in 1929 in British India. It was owned by the
Chauhan family of Vile Parle, Mumbai. Parle began manufacturing biscuits in 1939.
10

In 1947, when India became independent, the company launched an ad campaign,

showcasing its Gluco biscuits as an Indian alternative to the British biscuits. The Parle
brand became well known in India following the success of products such as the
Parle-G biscuits and the Thums Up soft drink.
The original Parle Company was split into three separate companies, owned by the
different factions of the original Chauhan family:
Parle Products, led by Vijay, Sharad and Anup Chauhan (owner of the brands Parle-G,
Melody, Mango Bite, Poppins, Monaco and KrackJack)

Parle Agro, led by Prakash Chauhan and his daughters Schauna, Alisha and
Nadia (owner of the brands such as Frooti and Appy)

Parle Bisleri, led by Ramesh Chauhan

All three companies continue to use the family trademark name "Parle". The original
Parle group was amicably segregated into three non-competing businesses. But a
dispute over the use of "Parle" brand arose, when Parle Agro diversified into the
confectionary business, thus becoming a competitor to Parle Products. In February
2008, Parle Products sued Parle Agro for using the brand Parle for competing
confectionary products. Later, Parle Agro launched its confectionery products under a
new design which did not include the Parle brand name.In 2009, the Bombay High
Court ruled that Parle Agro can sell its confectionery brands under the brand name
"Parle" or "Parle Confi" on condition that it clearly specifies that its products belong
to a separate company, which has no relationship with Parle Products.

Parle-G or Parle Glucose is a brand of biscuits manufactured by Parle Products in

India. As of 2011, it is the largest selling brand of biscuits in the world according to
Nielsen.
Primarily eaten as a tea-time snack, Parle-G is one of the oldest brand names in India.
For decades, the product was instantly recognised by its iconic white and yellow wax
paper wrapper with the depiction of a young girl on the front.
11

INFRASTRUCTURE
Apart from the original factory in Mumbai, Parle has manufacturing facilities at
Neemrana (Rajasthan), Bangalore and Bahadurgarh (Haryana). It also has several
manufacturing units on contract.

AVAILABILITY
Outside India, Parle-G is available in Europe, UK, USA, Canada, Singapore, etc. In
Canada, it is sold by Zehrs, Food Basics, Loblaws, etc. for only 99 cents for a
418 gram pack. A more common 80 gram "snack pack" is sold for as low as 15 cents
at Indian grocers, and 40 cents at major retailers. It is also popular across the world
and is starting to sell in Western Europe and USA.

GROWTH
70%market share in glucose biscuit is captured by parle-g as
compare to britannia tiger (17-18%) I T C Sunfeast 8-9%.
Last year sell is 35 billion.
Recognised by iconic white and yellow wax paper or wrapper
with depiction of young girl covering the front.
Parle derived from the name of the indian railway station
vileparle near mumbai.
Primarily eaten as a tea time snacks.
Available in rs.1, rs.2, rs.4 , rs.25

12

QUALITY
Hygiene is the precursor to every process at Parle. From husking the wheat and
melting the sugar to delivering the final products to supermarkets and store shelves
nationwide, care is taken at every step to ensure the best product of long-lasting
freshness. Every batch of biscuits, confectioneries & snacks are thoroughly checked
by expert staff, using the most modern equipment. This ensures consistent and perfect
quality across the nation and abroad.Concentrating on consumer tastes and
preferences, the Parle brand has grown from strength to strength ever since its
inception. The factories at Bahadurgarh, Haryana and Neemrana, Rajasthan are the
largest biscuit and confectionery plants in the country. The factory in Mumbai was the
first to be set up, followed soon by the one in Bangalore, Karnataka. Parle also has 10
manufacturing units for biscuits and 75 manufacturing units for confectioneries on
contract.

IMPORT EXPORT
The immense popularity of Parle products in India was always a challenge to their
production capacity. Now, using more modern techniques for capacity expansion, we
have begun spreading their wings and are going global.
Parle bisuits and confectionaries are fast gaining acceptance in
international markets, such as, Abu Dhabi, Africa, Dubai, South
America and Sri Lanka. Even the more sophisticated markets like
USA & Australia, now relish Parle products.
As part of the efforts towards a larger share of the global market,
Parle has initiated the process of getting ISO 9000 certification.
Many Parle Products have also won Gold, silver and bronze medals
at the Monde Selection

MARKET

13

According to a Nielsen report released in 2011, Parle-G is the largest selling biscuit in
the world.It has 70% market share in India in the glucose biscuit category followed by
Britannia, Tiger (17-18%) and ITC's Sunfeast (8-9%). The brand is estimated to be
worth over Rs 2,000 crore (Rs 20 billion), and contributes more than 50 per cent of
the company's turnover (Parle Products is an unlisted company and its executives are
not comfortable disclosing exact numbers). Last fiscal, Parle had sales of Rs 3,500
crore (Rs 35 billion). It also is popular across the world and is starting to sell in
Western Europe and USA.

AWARDS
Parle - G is the winner of 8 Gold and 11 Silver awards at the Monde Selection
Awards? The global standard for quality in Food category. Providing kids with the
vital vitamins and minerals necessary for all round mental and physical development

14

CHAPTER 4

MARKETING STRATEGY
An organization's strategy that combines its marketing goals into
one comprehensive plan. A good marketing strategy should be drawn from market
research and focus on the right product mix in order to achieve the maximum profit
15

potential and sustain the business. The marketing strategy is the foundation of
a marketing plan.
It is a process that can allow an organization to concentrate its resources on the
optimal opportunities with the goals of increasing sales and achieving a
sustainable competitive advantage. Marketing strategy includes all basic and longterm activities in the field of marketing that deal with the analysis of the strategic
initial situation of a company and the formulation, evaluation and selection of marketoriented strategies and therefore contribute to the goals of the company and its
marketing objectives.

LATEST STRATEGY
As part of its marketing initiative, Parle Products has recently adopted a major pricing
strategy whereby a 5 kg Parle-G Atta will be available to consumers and, along with
Parle-G biscuit pack for free at Rs 90. However, competitors, Pillsbury atta are
priced at Rs 104, and, Kissan Annapurna at Rs 102, in similar capacity.

MARKET SHARE
It has 70% market share in India in the glucose biscuit category followed by
Britannia, Tiger (17-18%) and ITC's Sunfeast (8-9%). The brand is estimated to be
worth over Rs 2,000 crore (Rs 20 billion), and contributes more than 50 per cent of
the company's turnover (Parle Products is an unlisted company and its executives are
not comfortable disclosing exact numbers). Last fiscal, Parle had sales of Rs 3,500
crore (Rs 35 billion). It also is popular across the world and is starting to sell in
Western Europe

MARKET STRENGTH
The extensive distribution network, built over the years, is a major strength for Parle
products. Parle biscuits & sweets are available to consumers, even in the e most
remote places and in the smallest retail outlets. Parle has nearly 1,500 wholesalers,
16

careering to 4,25,000 retail outlets directly or indirectly. A two hundred strong

dedicated field force services there wholesalers and retailers. Additionally, there are
31 depots and C&F agents supplying goods to the wide distribution network. Parle
constantly endeavor at designing products that provide nutrition and fun t o the
common man. Most Parle offerings are in the low and mid-range price segments. This
is based on their understanding of the Indian consumer psyche. The Value for money
positioning helps generate large sales volumes for the products. However, Parle
Products also manufactures a variety of premium products for the up-market, urban
consumers. And in this way, caters a range of products to a variety of consumers

The Customer Confidence

The Parle name conjures up fond memories across the length and breadth of the
country. After all, since 1929, the people of India have been growing up on Parle
biscuits & sweets.
Today, the Parle brands have found their way into the hearts and homes of people all
over India & abroad. Parle Biscuits and confectioneries, continue to spread happiness
& joy among people of all ages.
The consumer is the focus of all activities at Parle. Maximizing value to consumers
and forging enduring customer relationships are the core endeavours at Parle.
Their efforts are driven towards maximizing customer satisfaction and this is in
synergy with their quality pledge. " Parle Products Limited will strive to provide
consistently nutritious & quality food products to meet consumers' satisfaction by
using quality materials and by adopting appropriate processes. To facilitate the above
we will strive to continuously train our employees and to provide them an open and
participative environment."

PODUCT STRATEGY
Core benefit:- the core benefit of biscuit is to satisfy hunger of the consumer.
Basic product- in the second level, the basic product is biscuits.

17

Expected product- the consumers expect the product to have a good taste and also
give nutrition.
Augmented product- Parle biscuits increase a persons energy levels. o Potential
product- in the future Parle could come up with different prod ucts.

PRICING STRATEGY OBJECTIVE

Learn the major strategies for pricing imitative and new products. Understand
how companies find a set of prices that maximizes the profits from the total
product mix. Learn how companies adjust their prices to take into account
different types of customers and situations.Know the key issues related to
initiating and responding to price changes.
PARLE- G & 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 25 yrs & has seen the
variation in its sales due to increase in price by mere 50p.
Core value An in-depth understanding of the Indian consumer psyche has helped
Parle develop a marketing philosophy that reflects the needs of the Indian masses.
With products created bearing in mind both health and taste, Parle products equally
appeal to fun loving kids & youth. Even today, the great tradition of taste and
nutrition is consistent in every pack on the store shelves. The value-for-money
positioning allows people from all classes and age groups to enjoy Parle products to
the fullest.
PARLE G & PLACE MIX
18

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

PRICING STRATEGY OF PARLE G

Appeal to all income groups : The product is appealing to the consumers as the target
audience is basically kids. This product is suitable to all Income group.
Low and mid range price Segments: The pricing of the product is of low and mid
range so as it suits every ones pocket

VALUE OF MONEY
Value for money allows all age group to enjoy parle products at fullest
Strict cost control at every point in supply Chain: It reaches 2.5 million outlets,
including villages with a population of 500 people

PARLE G & 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
19

spoke about the basic benefits of energy and nutrition

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

EVENT & COMPAIGN

Promotional campaigns - Parle-Gramin Swastha Yojana
Parle had launched a new scheme called a Parle-Gramin Swastha Yojana, which
was a network of ambulance van visiting rural areas giving basic medical treatments,
educating people on nutrition deficiency problems, and promoting Parle nutritious
products. Using this it penetrated into those areas where direct penetration using just
advertisements was not possible
Parle-G Mera Sapna Sach Hoga
In 2002, Parle decided to launch Parle-G Mera Sapna Sach Hoga contest to stay as a
popular brand among children. This was an initiative taken after its successful
branding with Shaktimaan. The national level promos run for a period of 6 months
which promised free scholarship and free trips to Disneyland at Paris and Singapore.
In past, it had also launched TV serial called Parle Sakthi, mainly oriented towards the
women consumers

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.

20

PUBLIC RELATION
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)

BRAND STORY OF PARLE G

In the hit Bollywood movie Welcome, actor Nana Patekar, in a passing reference to
Parle-G, notes that even biscuits command respect and have to be addressed with a ji
(a term of respect in Hindi). His remark, while made in jest, is not far off the mark.
It is a heritage brand. We sell over 25 crore packets every month. That should reflect
the stature of the brand, says Praveen Kulkarni, marketing head at Parle Products
Pvt. Ltd.
Parles mantra has always been about repositioning the brand without tweaking the
look and feel of the product. The brand is clearly an Indian brand and it straddles all
economic strata. The fact that it is a staple for everyone in the house keeps it going,
says Nirvik Singh, chairman and president, Grey Global Group, South and South-East
Asia, the agency that handles the Parle-G account.
There was a time when Parle-Gs dominance was threatened by rival brands,
especially the Tiger brand from Britannia. We found out that Tiger was getting
21

stronger in the kids segment, and we decided to change our positioning, says
Kulkarni.
Later, when the company sponsored the television show Shaktimaan on Doordarshan,
it literally rescued Parle-G. The brand also had some innovative commercials
involving young children with a new punchline, G means Genius, which was an
instant hit.
While rivals have signed on celebrities, Parle-G has managed to retain its leadership
position with just a simple white-and-yellow striped wrapper with a picture of a baby
on it. We dont need celebrities as the brand equity is so strong, says Kulkarni.
The biggest concern is that the brand shouldnt become outdated as it is a historic
brand. The brand has managed to retain its leadership position because it has evolved
its campaign with every consumption trend, says Singh.

Reason Of Parle-G Maintaining Its Price Of Rs.4.00 For The Last 25 Years ?

Low profit margin.

Decrease in weight per biscuit.
Bulk purchase of raw material.
Reduced wastage- 1% of the 115 TONES
Increased productivity.
Availability in remote places.
Avoid sophisticated packing.
100g pack costing Rs 4 has net weight of 93.5g from Jan2008.
Parle-G has seen the variation in sales due to increase in price. By mere 50 paise in
1995
It's a brand that has held its price line at Rs 4 for 25 years now -- the price was last
raised in 1994 by 25 paise. So, it's not for nothing that Parle-G is the world's largestselling biscuit by volumes.
22

Not that the company didn't try to raise prices to offset the overall hike in costs. Three
years ago it did so, but quickly rolled it back after volumes fell sharply and consumers
wrote to lodge their protest.
"We want to cater to the masses and have consciously tried not to increase the price.
Parle-G is available for Rs 50 a kg. There are very few food items that are available
for Rs 50-60 a kg," says Pravin Kulkarni, general manager (marketing), Parle
Products.
Parle is, of course, not doing it for charity. Soaring input prices meant it opted for
reducing the weight of the biscuit than increasing the price -- first from 100 gm to
92.5 gm in January 2008, and then to 88 gm in January this year -- in line with other
biscuit-makers and FMCG players.
Regular customers would have noticed the number of biscuits in a pack come down
from 16 to 15 even as each biscuit became lighter, but they seemed to understand the
cost pressures on the firm. The gamble paid off: Parle was able to sustain its volumes.
Strict cost control at every point in its supply chain also helped -- Parle entered into
forward contracts with suppliers, outsourced production, increased the number of
manufacturing locations to 60 and consolidated buying.
Raw material costs account for 60 per cent of the total costs in this segment and
packaging costs (plastic films) account for 20-25 per cent of this.
Nirmalaya Kumar, professor of marketing at London Business School, feels it's a very
smart strategy. "At this price point, price becomes more important than the weight of
the biscuit. It's very interesting and similar to the dollar stores in the US," he says.
But price is not its only USP.
What makes the Parle G brand tick is also that it has been positioned on the health
platform (a single pack of biscuit offers 450 calories). Its earlier punchline was ParleG: swadh bhare, shakti bhare (full of taste and energy). Currently, the brand uses two
punchlines. Parle-G: G for Genius and Hindustan ki Taakat (the country's strength).
The brand, says Kulkarni, meets different needs of customers: calories (energy),
nutrition and value-for-money -- enough reasons why Parle-G enjoys close to 70 per
cent market share in the glucose biscuit category and probably has the deepest reach.
23

It reaches 2.5 million outlets, including villages with a population of 500 people, on a
par with Unilever's Lifebuoy, ITC's cigarettes or mobile pre-paid cards.
It's also one of the few FMCG brands in the country, whose customers straddle across
income segments.
The brand is estimated to be worth over Rs 2,000 crore (Rs 20 billion), and
contributes more than 50 per cent of the company's turnover (Parle Products is an
unlisted company and its executives are not comfortable disclosing exact numbers).
Last fiscal, Parle had sales of Rs 3,500 crore (Rs 35 billion).
Competition has, of course, been trying to wean away customers from Parle. Britannia
relaunched its Glucose-D biscuit as Tiger in 1995 and boasts of 17-18 per cent share,
while ITC's Sunfeast glucose has captured 8-9 per cent, according to industry sources.
Even Levers had forayed into this segment in 2003 and launched a glucose biscuit
branded as Modern, after it acquired the bakery business of Modern. There are strong
regional brands, including Priya Gold (west), Cremica (north) and Anmol (east).
But they still have their work cut out.
Nirmalaya Kumar feels the Parle-G story is so fascinating that it deserves to be a case
study. What would be interesting to see is whether it will be able to retain its
leadership in the coming years as income grows in the hinterlands and consumers
upgrade and develop new tastes.

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.
24

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 & 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.

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 and Associate Parle G as health food, and
complete nutrition package.
Concentrate on rural market.
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. Should keep the price
of Parle G same and increase price of other high and variant products like, Milano,
Hide n Seek, Bourbourn.
25

High end products can absorb the increased production cost,This will help to cater to
existing market without price change.

26

CHAPTER 5

SWOT ANALYSIS
STRENGTHS
(1) Low price as compared to competitors:
They constantly endeavor at designing products that provide nutrition and fun to the
common man. Most Parle offerings are in the low and mid-range price segments. This
is based on their understanding of the Indian consumer psyche. The value-for-money
positioning helps generate large sales volumes for the products. However, Parle

27

Products also manufactures a variety of premium products for the up-market, urban
consumers. And in this way, caters a range of products to a variety of consumers.
Affordability:
Parle G offers 1Rs. pack which contains 4 biscuits which is affordable to anyone aims
to satisfy hunger.
(2) Sizeable market share in the country:
Many of the Parle products - biscuits or confectioneries, are market leaders in their
category and have won acclaim at the Monde Selection, since 1971. With a 40% share
of the total biscuit market and a 15% share of the total confectionary market in India,
Parle has grown to become a multi-million dollar company. While to consumers it's a
beacon of faith and trust, competitors look upon Parle as an example of marketing
brilliance.
(3) Offers variety of products in different sizes under its brand:
Parle offers a variety of biscuits at different pricing range. The Parle marketing
philosophy emphasizes catering to the masses. We constantly endeavor at designing
products that provide nutrition and fun to the common man. Most Parle offerings are
in the low and mid-range price segments. This is based on our cultivated
understanding of the Indian consumer psyche.
The value-for-money positioning helps generate large sales volumes for the products.
However, Parle Products also manufactures a variety of premium products for the upmarket, urban consumers. And in this way, caters a range of products to a variety of
consumers.
(4) An experienced team of sales and marketing executives:
Sales and Marketing executives are selected through a special process. A proper
verification of identity and financial background are done for a better structure of the
human resource in the company.

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(5) Largest distribution system:

The extensive distribution network, built over the years, is a major strength for Parle
Products. Parle biscuits and sweets are available to consumers, even in the most
remote places and in the smallest of villages with a population of just 500.Parle has
nearly 1,500 wholesalers, catering to 4, 25,000 retail outlets directly or indirectly. A
two hundred strong dedicated field force services these wholesalers and retailers.
Additionally, there are 31 depots and C and F agents supplying goods to the wide
distribution network.
(6) Wide coverage area of manufacturing units:
Parle Products has one factory at Mumbai that manufactures biscuits and
confectioneries while another factory at Bahadurgarh, in Haryana manufactures
biscuits. Apart from this, Parle has manufacturing facilities at Neemrana, in Rajasthan
and at Bangalore in Karnataka. The factories at Bahadurgarh and Neemrana are the
largest such manufacturing facilities in India. Parle Products also has 14
manufacturing units for biscuits and 5 manufacturing units for confectioneries, on
contract. All these factories are located at strategic locations, so as to ensure a
constant output and easy distribution.
WEAKNESS
(1) Breakage of biscuits while delivering to retailers:
Sometimes biscuits get damaged while delivering to retailers. Company should adopt
innovative packaging techniques. So that the quality of biscuits are good till it reaches
the customer, also attractive for the customer.
(2) No proper replacement system for broken biscuits to retailers:
There is no proper replacement system for broken biscuits to retailers. Company
should start a program for the loyal retailers and wholesalers to reduce their
complaints by providing timely supply and replacement. This will help in increasing
their sales.
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(3) Improper and irregular supply:

There is improper supply of products to retailers and distributors. Hence it is advised
to increase the number of stock keeping units {SKU} available in the retailers store.
Each salesman should stress the retailers to keep the maximum SKUs and to maintain
these SKUs throughout. With this, the replacement of the damaged and expired
biscuits should be prompt and without any hassles, so that retailer can be saved from
the loss of the expired and damaged goods.
(4) Dependent on its flagship brand, Parle-G:
The major income source for Parle Company is the Parle-G biscuits. The biggest
concern for Parle -G is that the brand shouldnt become outdated as it is a historic
brand. The brand has managed to retain its leadership position because it has evolved
its campaign with every consumption trend. Hence Parle Company should opt for
innovative techniques to maintain the brand of Parle-G
(5) Poor packaging in family pack of glucose biscuits:
Company should adopt innovative packaging techniques, as they have their own
packaging unit as consumers are highly attracted towards new packaging. The
packaging of Parle Glucose biscuits (1/2 and 1 kilogram packs) must be improved for
its better sales. The company should come up with double packaging as people refuse
to buy family pack biscuits with loose packaging. The company should take proper
measures that the schemes and offers are not gulped by the middlemen, and that it
benefits the retailers and customers.
(6) Lack of schemes for retailers and distributors:
One of the advantages of Parle Company is the wide range of retailers and
Distributors. Parle
Company should implement more innovative schemes for retailers and distributors.
So there is better relationship between the company and retailers, distributors.
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OPPORTUNITIES
(1) Rising demand for innovative packaging in packaged foods:
Parle should adopt new innovative packaging techniques. Since it can attract more
customers specially kids through innovative packaging techniques. Due to proper
packaging the quality of the biscuits will be retained and the retails will not suffer loss
if goods are spoiled before it reaches their place.
(2) Retaining loyal retailers or wholesalers:
Parle can motivate retailers and wholesalers good incentives and programs. The Parle
Company can maintain the loyal retailers and wholesalers. Since one of the most
important strength of the company is wide spread distribution network. The
wholesalers and retailers are one of the main reasons for the same. Hence it is advised
that new innovative programs and more incentives should be given to them.
(3) Improving supply system for established brands:
As discussed in the earlier point the company can attract more retailers and
wholesalers. Due to this the company can expand the supply system and attract more
customers. This in turn will earn good profit to the company.
(4) New innovative promotion techniques:
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)

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Promote Parle brand through T. V. shows such as Parle Sakthi (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.
Parle is weak in Eastern India and Tamil Nadu. To cover up this loop hole, they are
giving scholarships to children in these states to cover up the corporate equity which
is less than Britannia in these states
Based on the above mentioned facts, the following are some of the suggestions that
may help Parle Products Pvt. Ltd. to maintain its position as a leading company in the
food and beverage market in India

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(5) Penetrate the Market Share of the Unorganized Sector

The Indian biscuit industry is divided into the organized sector that has 60% market
share and the unorganized sector that has the rest 40% market share. Parle can take a
pie of the market share of the unorganized sector by tapping rural markets through
several government schemes such as mid day meals. They can also be a part of
NRHM centers. By this, they would be able to improve their visibility in the rural
biscuit market in India.
(6) Innovation and Rural Market:
Innovating new products, especially non-glucose type biscuits, and its test marketing
in the rural market with its existing distribution channel would help them establish a
new market in rural India. This would be similar to replication of their strategy of
innovation following which they launched their product - Hide and Seek that is a
premium segment product mainly focused in the urban or semi-urban market.
(7) Going Public:
Parle is one of the oldest companies in the biscuit market and except for its glucose
biscuit business, no other product has had a significant impact in the market. In order
to follow an aggressive expansion plan and to foster world class R & D, it may need
funds, which it can easily generate through an IPO because of its brand name. This
can also help them diversify into different related markets. It is important to note that
both of its major competitors, namely, Britannia and ITC are publicly listed
companies that have aggressively pursued advertising and R & D.
(8) Diversify in New Market:
Today, though Parle has a commanding position in the biscuit industry, the future may
be much more competitive in this industry. This is because of entry of several new
companies into this market. The entry of new product suppliers in the market is also
one of the Porters five forces which can alter the market scenario. Hence, Parle being

33

an established brand should diversify into different market such as dairy products like
cheese, butter, etc.
The image that it has among the Indian masses is that of a chai-biskut providing
company in the rural India. Specifically, in this context, in the urban sector Parle can
create a new image of itself in the confectionary market by catering to high end
Parle should go in for exclusive outlets in at least all the shopping malls and in
medical shops coming up these days and any location where footfalls are large in
number. The advantages of this channel will be:
i. Full range display
ii. Easier to promote new products
iii. Easy to push impulse purchase products
iv. Brand building will be facilitated
Pushcarts should be increased in number in order to increase the market reach this
can provide with e very effective channel
Trade promotion should be formulated for newly launched products instead of just
tagging them onto best sellers.
The company should start a home delivery where a particular household will order
full range of products required by it over a period of time. For this the company could
provide a deliveryman with cycle to reach the different houses.
In order to motivate the channel members it is also very essential for the company
to increase the margins for the hard selling items
In order to remain sensitive to market demand, it is essential for the company to
place additional salesmen on the field since the brand as such commands a high
demand in the market but fails to match it with the supply.

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THREATS
(1) Highly advertised brands such as Britannia:
Parle faces the adverse competition from Britannia. Now-a-days Britannia have
adopted intensive advertisement such as through media to promote their products.
This can result in less attraction for the brand products of Parle.
(2) Ever increasing competition from multinationals and local companies:
ITC is promoting their Sun Feast brand by using strong promotional campaign with
Brand ambassador Shah Rukh khan. ITC Foods Ltd has expanded network and is
promoting its Sun feast biscuits across 1000 schools in the country. Britannia Tiger
has brand ambassador Rahul Dravid and Virender Sehwag who are doing heavy duty
endorsement on their personal equity line for the brand.
(3) Increase in sale of cheap local bakery products:
There is sudden increase in bakery products for past certain period of time in the
market. Due to this the Parle biscuits are facing competition. This can affect the
performance of the company.
(4) Emerging substitutes like wafers, snacks and toast:
Earlier it was just the biscuit which was available as snacks item. Now there are many
other products like wafers and toast. Thus company is facing threat due to the new
substitute products.

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CHAPTER 6

36

CONCLUSION
I want to conclude my project by saying that marketing strategy is 4ps such as
product, promotion, price and place. These are all important aspects of marketing
strategy. Without these aspects marketing is not possible. Marketing strategy is all
about marketing a product .In these marketing mix sellers, retailers, buyers, and
wholesalers play an important role. There is lot of scope in marketing strategy. Parle
company had made huge profit by marketing there products in India and in foreign
countries.
It was concluded that Parle is the first preference of both the customers and retailers
(Organized and unorganized both) because of its price and brand image.
The Parle Biscuit brands, such as, Parle-G, Monaco, Krackjack, Marie Choice, Hide
and Seek enjoy a strong imagery and appeal amongst consumers across the world.
Which has resulted into Parle-G being the worlds largest selling biscuit".
The Parle name symbolizes quality, health and great taste. Constantly innovating and
catering to new tastes PARLE-G has built its reputation.
Parle Products Pvt Ltd. is now lagging in services to retailers because of improper
supply and distribution in some areas and competitors taking advantage of these
points. Parle Company should take into consideration the opportunities and threats as
discussed above. This will help the company to maintain its brand image for long
time.
Parle The world of Happiness

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FINDING

After studying the marketing strategy of parle-g biscuits ,we come to know

that ..
Profit margin of company is very low because they dont want higher range of

profit,they only want consumer satisfaction and stick with them.

Parle-G product is not only available in urban area but also in ruler area with

same quality as well as same quality.

Parle G product is available in reasonable rate so consumer can buy that

product easily.
Parle-G held his price Rs.4 since 25 years ,they only rise price by 0.25paisa or
0.50 paisa so its nothing like overall hike in price.

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SUGGESTION
I used to be an ardent fan of Parle-G. There was a whole shelf in our kitchen
dedicated to PG packets. However, they recently changed something in their recipe the new biscuits look different, are slightly thicker and less dense, taste quite different
(and slightly burnt, I must say) as compared to the old ones. The packet cover has
changed ever so slightly, so...

Target young generation, i.e. school going children,

Associate with various Government initiative like, Primary Education scheme,
National Rural health mission centres.
This will help in Brand Registration, Mid-day meals being serve in primary

school.
Associate Parle G as health food, and complete nutrition package

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CHAPTER 7

BIBLIOGRAPHY

40

Marketing Management - Philips Kotler

Times of Business
Economy Times
India Today
Front Line

WEBILIOGRAPHY

www.wikipedia.com
www.parleproduct.com
www.britannia.com
www.sunfeastharabanao.com

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