PREFACE

We look our training at Parle product . During the training was to get an overviewof the food Industry of Nimrana. It
was a first hand experience to get exposed tothe professional set-up and face the Food Industry, which
was really a greatexperience. Training period was a learning
experience.W h e n b u s i n e s s i s i n v o l v e d , a n e x p e r i e n c e c o u n t s a l o t . e x p e r i e n c e a r e a n instrum
ent, which leads towards success. Working with Parle Product. has beena pleasure.I take this opportunity to present
the project report and sincerely hope that it willbe as much knowledge enhancing to the readers as it was
to use during thefieldwork and the compilation of the report.
2

ACKNOWLEDGEMENT
I express my sincere thanks to my project guide Ms. Padma Sharma (Faculty)Management Deptt., Arya College of
Engineering & Research Centre for guidingme right from the inception till the successful completion of the project. I
sincerelyacknowledge her for extending their valuable guidance, support for literature,critical reviews
of project and the report and above all the moral support he hadprovided to me with all stages fo this project.I am also
thankful to our H.O.D Sir
Dr.Manish Jain
encouragement and moralsupport has been a source of inspiration to me
.Md. Manwar Khan
3

INDEX

Introduction to the industry

Research methodology
Title of the StudyObjective of StudyType of ResearchSample Size and method of selecting sampleScope of
StudyLimitation of Study

Facts & Finding

Analysis & Interpretation

Conclusion

Recommendation & suggestion

Quessionarrie

Bibiliography
4

Introduction of industry
PARLE is the market leader in the organized biscuit and candy market in India. Biscuitscontribute to more than 80%
of Parle’s total turnover. Other products include cookiesand candys
.
T h e b i s c u i t m a r k e t i n I n d i a i s e s t i m a t e d t o b e 1 . 1 m n t p a , v a l u e d a t Rs35bn. The unorganized
sector accounts for over 50% of the market. The market hasbeen growing at a CAGR of 6-7% pa. Per capita consumption of
biscuits is estimated ata low 1.5kgs, reflecting the huge potential for growth. Manufacturing was reserved for small-
scale up to 1997, which put large players at a disadvantage. In the organizedsector, Parle and
Britannia are the only national players with dominant market shares.Other organized players include domestic
players like Bakeman’s, Champion, Quality,Priya and MNC’s like Smith Kline Consumer, Kellogg’s,
Sara Lee, Heinz, Excelsia(Nestle) and United Biscuits.
5

INTRODUCTION TO THE ORGANIZATION

Board of Directors
Board of Directors as onChairman : Vijay Kanti Lal ChauhanManaging Director : MR. Pitamber Mohan LalMR
.Narotam Mohan LalMR .Kanti Mohan LalMR. Vijay Kanti Mohan LalMR. Shard Pitamber ChauhanMR. Shard
Kanti Lal Chauhan
Plant location :
MUMBAI
6

NIMRANABAHADURGARHBANGLORE
Parle core businesses constitute of Bakery and Candy products. Bakery productsaccount for 90% of the
revenues. Candy products contribute to 10% of Parle’sannual turnover of Rs13.38bn.
Biscuits (82.7% of turnover)
Revenues from biscuit were Rs11.07bn in FY01. The company sold 214,214 tonsof biscuits registering a volume
growth of 11% yoy. Biscuit sales in value termsregistered a 13.2% yoy growth. Parle has a 40% volume
share and 48% valuemarket share in the organized biscuit market. The company presently has
aninstalled capacity of 111,000 tons for biscuits. Production in FY01 was 59657 tonsagainst 62034 tons in FY00. Over 70%
of biscuits sold are outsourced by thecompany.
Candy Products (9.8% if turnover)
The company's diversification into candy business has been successful. Candyproduct sales were Rs. .87bn in FY01.
7

Related Interests

 Research Design
 Consumer Behaviour
 Marketing Research
 Behavior
 Survey Methodology

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Parle Project Report Presented by Amit Kumar Giri

OBJECTIVE OF THE STUDY

The main purpose of the study was to know the consumer

behavior,t r a d i t i o n a n d a w a r e n e s s o f p a r l e p r o d u c t a m o n g t h e p e o p l e ; t o m e a s u r e t h e e f f e c
t i v e o f e l e c t r o n i c m e d i a ; t o a n a l y z e t h e m e d i a behavior of the people; and to identify the first source
of informationfor consumer products.The study has been conducted to collect the information abouttradition and consumer behavior
for a particular group, and the role of different source of information in buying a product.The main objectives of the study as follows:

To know the Parle Product awareness among the people.

To measure the effectiveness of Distribution channel of the PARLE.

To analyze the consumer behavior in the Neemrana Market.

To identify first source of information about product.

To identify the change in attitude of the consumer due to electronicmedia.To identify the factors which affects the change in
decision of the consumer
TYPES OF RESEARCH:
The basic types of research are as follows –
Descriptive Research:
The major p u r p o s e o f t h i s r e s e a r c h i s d e s c r i p t i o n o f t h e s t a t e o f a f f a i r s , a s i t e x i s t s
a t present
.
Analytical Research
:
In this research, the researcher has to use facts or information already available, and analyze these to make
a critical evaluation of the material

Applied Research:

It aims at finding a solution for an immediate problemfacing a society or an industrial/ business organization.
17

Fundamental Research:
It mainly concerned with generalizationsand with the formulation of a theory.
Quantitative Research:

It is based on the
measurement of quantity or amount. It is applicable to phenomena that can be expres
s e d i n t e r m s o f quantity.
Qualitative Research:

It is concerned with the qualitative phenomenon, i.e.,phenomena relating to or involving quality or kind
.
Conceptual Research:

It is related to some abstract ideas or theory

.
Empirical Research:
It
is data- based research, coming with conclusions,which are capable of being verified by the observation and experiment
Diagnostic Research:

Such a research fallow case -study method or in-depth approaches to reach the basic casual relation.
Exploratory Research:
The
objective of this research is the development of hypothesis rather than their testing
.
MY RESEARCH:
I was gathering the consumer behavior of the Parle product in NeemranaRegion, which is being done by me first. Therefore, my research is
exploratoryresearch
.
RESEARCH DESIGN
18

A research design is the arrangement of conditioned for collection and analysisof Data in a manner that aims
to combine relevance to the research purposewhich economy in proceduresSo it is clear from the above definition
that very first step in the process of marketing research is systematic design which can be defined as a
specificationof methods and procedure for acquiring the information need to structure or solveproblems.The main characteristics
of research design can be summarized in twowords:

A
NTICIPATION

S
PECIFICATION

19

F
UNCTIONS

OF
R
ESEARCH

DESIGN
:
Statement of evidence needed to solve the problem.Anticipation of what will be done with data to provide
answerto problems.Specification of evidence from where it will be obtained andhow.Statement of basic schemes
whereby answers will be revealedand validated.Guide for the Calculation and approval of the feasibility
andcost of the project.revision of blue prints or plan for guiding the work.

T
YPES
OF
R
ESEARCH

DESIGN
:There are three types of research design: -
1. Research design in case of exploratory research studies.2. Research design in case of descriptive and diagnostic research studies.3. Research
design in case of hypothesis – testing research studies
.
20

M
Y
R
ESEARCH
D
ESIGN
:
My Research was exploratory research so I am discussing only
exploratoryresearch design.
In exploratory research design hypothesis is developed on thebasis of the influencing variables, which are available. The main
purpose to
dor e s e a r c h d e s i g n i s t o f i n d n e w i d e a s f o r w h i c h t h e r e s e a r c h e r m u s t a l w a y s remain alert.
The possibilities of ideas are explored but in case a better idea isfound the focus of investigation gets change. There
are three principle stages of exploratory research design
.
FIRST STAGE :

Survey of secondary information sources.

S E C O N D S T A G E :

Interviews with knowledgeable persons

.
THIRD STAGE :

Examination of situation that are analogues to theProblem.

S
AMPLING
D
ESIGN
:
A S a m p l e d e s i g n i s a d e f i n i t e p l a n f o r o b t a i n i n g a s a m p l e f o r m a g i v e n populati
on. It refers to the technique or the procedure the researcher would adopt
21

i n s e l e c t i n g i t e m s f o r t h e s a m p l e . S a m p l e d e s i g n m a y a s w e l l l a y d o w n t h e number of items
to be included in the sample i.e., the size of the sample
.
D
IFFERENT
TYPES

OF

SAMPLE

DESIGNS
:
There are two types of sample designs
.
1.Non – probability sampling.2.Probability sampling.M
Y

SAMPLING
D
ESIGN
:
For the survey of India bulls consultancy Pvt. Ltd. In Luckno w City, myrespondents were
approximately 5lacs. So the universe was large (5lacs) in thiscase. Therefore, I took the sample in this case
while I surveyed the universe.Therefore, the data are approximately quite accurate.
M
ETHODS

OF
D
ATA
C
OLLECTION
:
There are two types of data
.
1.P
RIMARY
D
ATA

22

2.S
ECONDARY
D
ATA
P
RIMARY
D
ATA
:
The primary data are those, which are collected afresh and for the first time, andthus happen to be original in character
.
S
ECONDARY
D
ATA
:
The secondary data are those which have already been collected by someoneelse and which have already been passed
through statistical problem.The methods of collecting primary and secondary data differ since primary dataare to be
originally collected while in case of secondary data the nature of datacollection work is merely that of
compilaion
.
CLASSIFICATION OF SECONDRY DATA
•
INTERNAL SECONDARY DATA
•
EXTERNAL SECONDARY DATA
•
INTERNAL SECONDARY DATA
1.SALES ANALYSIS
23

2 . I N V O I C E A N A L Y S I S 3.ACCOUNTING RECORDS
•
EXTERNAL SECONDARY DATA
1 . L I B R A R I E S 2 . O I T E R A T U R E 3 . P E R I O D I C A L S 4.CINSUS AND REGISTRARI
ON DATA
•
CENSUS OF POPULATION
•
CENSUS OF AGRICULTURE
•
CENSUS OF CATTLE
C
OLLECTION

OF

PRIMARY

DATA
:
We collect primary data during the course of doing experiment in anexperimental research but in case we do
research of the descriptive type andperforms surveys, whether sample surveys or census surveys,
then we canobtain primary data either through observation or through direct communicationwith respondents
in one form or another or through personal interviews this
24

means that there are several methods of collecting primary data, particularly insurveys and descriptive researches. The
important ones are –
1.Observation
M e t h o d 2 . I n t e r v i e w M e t h o d 3.Through questionnaires4 . T h r o u g h
S c h e d u l e s COLLECTION OF SECONDARY DATA:
When the researchers utilize the secondary data, then he has to look into
variouss o u r c e s f r o m w h e r e h e c a n o b t a i n t h e m . S e c o n d a r y d a t a m a y b e e i t h e r p
ublished data or unpublished data. Usually published data are available in –
•
Various publications of the central, state and local governments.
•
Various publications of foreign governments or of international bodies andtheir subsidiary organizations.
•
Technical and trade journals.
•
Books, Magazines and newspapers.
•
Report and publications of various associations connected with businessand industry, banks, stock exchanges etc.
25

•
Reports prepared by research scholars, universities, economist’s etc. indifferent fields.
l
FACTORS AFFECTING BUYING BEHAVIOUR CONSUMER OFPARLE PRODUCT:
•
Demographics
•
Geographics
DEMOGRAPHICS
Size of population:
According to the census 2011,as of May2001,thepopulation of India stood at 1,027Million of which 742Million lived in ruralareas and 285
Millions in urban areas.
Literacy and education:
According to the Census 2011,the Nation’saverage literacy rate is 65.4%.Exhibit 18.1 shows the growth in literacyrate since 1951.
GROWTH IN LITERACY RATE:
Y E A R L I T E R A C Y R A T E % 2
0 0 8 4 3 . 7
% 2 0 0 9 5 2
. 2 % 2 0 1 0
6 5 . 4 % 2 0
1 1 7 0 . 2 %
26

GEOGRAPHICS:
We mentioned earlier that as of May 2011,the population of India stoodat1027 Million,with742 million people
living in rural areas and 285million urban areas.In terms of percentage 73% of population is in ruralareas and 27%
in urban areas.
CLASSIFICATION OF CONSUMERS BASED ONECONOMIC STATUS
•
The affluent group
•
The middle class
•
The relatively poorer section
•
The BPL section
FACTS AND FINDINGSConsumer Behavior and Marketing Strategy
The study of consumers helps firms and organizations improve their marketingstrategies by understanding issues such as
how
•
The psychology of how consumers think, feel, reason, and select betweendifferent alternatives (e.g., brands, products);
•
The psychology of how the consumer is influenced by his or her environment (e.g., culture, family, signs, media);
•
The behavior of consumers while shopping or making other marketingdecisions;
•
Limitations in consumer knowledge or information processing abilitiesinfluence decisions and marketing outcome;
•
How consumer motivation and decision strategies differ between productsthat differ in their level of importance or interest that they entail for
theconsumer; and
•
How marketers can adapt and improve their marketing campaigns andmarketing strategies to more effectively reach the consumer.One
"official" definition of consumer behavior is "The study of individuals, groups,or organizations and the processes they use to select,
secure, use, and disposeof products, services, experiences, or ideas to satisfy needs and the impacts thatthese processes have on the
consumer and society." Although it is not necessaryto memorize this definition, it brings up some useful points:
1
Either behavior occurs for the individual, or in the context of a group (e.g.,friends influence what kinds of clothes a
person wears) or an organization
28

people on the job make decisions as to which products the firm shoulduse.
2
Consumer behavior involves the use and disposal of products as well asthe study of how they are purchased. Product use is
often of great
interestt o t h e m a r k e t e r , b e c a u s e t h i s m a y i n f l u e n c e h o w a p r o d u c t i s b e s t positione
d or how we can encourage increased consumption. Since manyenvironmental problems result from product
disposal (e.g., motor oil beingsent into sewage systems to save the recycling fee, or garbage piling up atlandfills) this is also an area of
interest.
3
The impact of consumer behavior on society is also of relevance. For example, aggressive marketing
of high fat foods, or aggressive marketingof easy credit, may have serious repercussions for the national health
andeconomy.There are four main applications of consumer behavior:
1
The most obvious is for
marketing strategy
— i . e . , f o r m a k i n g b e t t e r marketing campaigns. For example, by understanding that consumers aremore receptive to
food advertising when they are hungry, we learn toschedule snack advertisements late in the afternoon. By
understandingthat new products are usually initially adopted by a few consumers andonly spread later, and
then only gradually, to the rest of the population,
wel e a r n t h a t ( 1 ) c o m p a n i e s t h a t i n t r o d u c e n e w p r o d u c t s m u s t b e w e l l f i n a n c e d s o t h a t t
hey can stay afloat until their products become a
29

commercial success and (2) it is important to please initial

customers,s i n c e t h e y w i l l i n t u r n i n f l u e n c e m a n y s u b s e q u e n t c u s t o m e r s ’ b r a n d choices.
2
A second application is
public policy
. I n t h e 1 9 8 0 s , A c u t a n c e , a n e a r miracle cure for acne, was introduced. Unfortunately, Acutance resulted insevere
birth defects if taken by pregnant women. Although physicianswere instructed to warn their female patients of this,
a number still becamepregnant while taking the drug. To get consumers’ attention, the FederalDrug Administration
(FDA) took the step of requiring that very graphicpictures of deformed babies be shown on the medicine containers.
3
Social marketing
involves getting ideas across to consumers rather
thans e l l i n g s o m e t h i n g . M a r t y F i s h b e i n , a m a r k e t i n g p r o f e s s o r , w e n t o n sabbatical to work
for the Centers for Disease Control trying to reduce theincidence of transmission of diseases through illegal drug
use. The bestsolution, obviously, would be if we could get illegal drug users to stop.This, ho wever,
was deemed infeasible. It was also determined that thepractice of sharing needles was too
ingrained in the drug culture to bestopped. As a result, using knowledge of consumer attitudes, Dr. Fishbeincreated a
campaign that encouraged the cleaning of needles in bleachbefore sharing them, a goal that was believed to be more
realistic.
Segmentation
30

Although the text makes references to segmentation, this issue is not

discussede x p l i c i t l y i n m u c h d e t a i l . H o w e v e r , s e g m e n t a t i o n i s i m p o r t a n t i n c o n s u m e r ana
lysis because understanding the consumer will allow us segment the marketmore
meaningfully.S e g m e n t a t i o n b a s i c a l l y i n v o l v e s d i v i d i n g c o n s u m e r s i n t o g r o u p s s u c h t h a t me
mbers of a group (1) are as similar as possible to members of that samegroup but (2) differ as
much as possible from members other segments. Thisenables us then to "treat" each segment differently—e.g., by:
1
Providing different products (e.g., some consumers like cola taste, whileothers prefer lime)
2
Offering different prices (some consumers will take the cheapest productavailable, while others will pay for desired features)
3
Distributing the products where they are likely to be bought by the targetedsegment.In order for a segment structure to be useful:
1
Each segment must have an identity—i.e., it must contain members
thatc a n b e d e s c r i b e d i n s o m e w a y ( e . g . , p r i c e s e n s i t i v e ) t h a t b e h a v e differently from
another segment.
31
2
E a c h s e g m e n t m u s t e n g a g e i n s y s t e m a t i c b e h a v i o r s ( e . g . , a p r i c e sensitive segment
should consistently prefer the low price item rather thanrandomly switching between high and low priced brands).
3
Each segment must offer marketing mix efficiency potential—i.e., it mustbe profitable to serve. For example,
a large segment may be profitable eventhough the competition it attracts tends to keep prices down. A
smaller segmentm a y b e p r o f i t a b l e i f , f o r e x a m p l e , i t i s p r i c e i n s e n s i t i v e o r c a n
b e t a r g e t e d efficiently (e.g., if its members consistently subscribe to one magazine where allthe company’s
advertising can be put). Some segments are not cost effective.For example, a small group of consumers would love
to have a no-sports newschannel (similar to CNN), but we are just too small a group to profitable.
32

Group Influences
Humans are inherently social animals, and individuals greatly influence eachother.A useful
framework of analysis of group influence on the individual is the socalled
reference group
—the term comes about because an individual uses arelevant group as a standard of reference against
which oneself is compared.Reference groups come in several different forms. The
aspirational referencegroup
refers to those others against whom one would like to compare oneself.For example, many firms use athletes
as spokespeople, and these representwhat many people would ideally like to be.
Associative
reference groups includepeople who more realistically represent the individuals’ current equals or near-e q u a l s —
e . g . , c o w o r k e r s , n e i g h b o r s , o r m e m b e r s o f c h u r c h e s , c l u b s , a n d organizations. Finally, the
dissociative
reference group includes people that theindividual would
not
like to be like. For example, the store literally named TheGap came about because many younger
people wanted to actively dissociatefrom parents and other older and "uncool" people. The Quality Paperback
Bookspecifically suggests in its advertising that its
members are "a breed apart"from conventional readers of popular books.

33

Personality and consumer behavior.

Traditional research in marketing has not been particularly successful in finding alink between personality and consumer behavior. Part of the
problem here is thatmuch of the theory has been developed by clinical psychologists who havetended to work
with maladjusted people. Not surprisingly, research that sought topredict, based on standard personality inventories,
which kinds of consumerswould buy Chevrolets as opposed to Fords was not successful.
.
Situational influences
S p e c i f i c c i r c u m s t a n c e s o f t e n i n f l u e n c e c o n s u m e r b e h a v i o r . F o r e x a m p l e , consumers in a
rush are likely to take the most convenient product
available.Consumers whose attention is demanded elsewhere are likely to disregardcommercial me
ssages. Consumers shopping for a special occasion (e.g., awedding) may buy different products

RECOMMENDATION AND SUGGESTIONS

On the basis of my summer training report, and the survey I am suggest to the company toincrease the sales volume by
following way: -
1
Company should increase the quality of the product in the present timeconsumer want different flavor
with high Quality. To face the competitionform other company and increase the market share the company
shouldimprove the quality of different product and increase sales.
2
Print media and television are the major source of awareness, so theseMedias cancan be concentrated more for efficient results.
3
The ages groups 30-45 and above are not interested to consume thebiscuits, so these potential groups can
concentrate.
4
The retailer is complain about the profit margin because it is less and notinterested to sale it so some discount should be given
to retailer to motivate themto the increase profit margin and help in increase the sales