DISSERTATION REPORT On

MARKETING SURVEY OF PARLE REGARDING SALES IN INSTITUTES Parle biscuits pvt. Ltd.

Submitted in partial fulfillment for the requirement of the award of degree in MASTERS IN BUSINESS ADMINISTRATION (MBA)

Submitted to: Prof. Pitambar Dwivedi

Submitted by: Pradeep Garg

Sharda University, Greater Noida

ACKNOWLEDGEMENT

I thank all those people who helped me in this summer training project. First of all I would like to express my profound gratitude to who gave me this opportunity to do this project. He always remained a wonderful guide and supporter throughout this

TABLE OF CONTENTS
INFORMATION SHEET...........................................................................1 College Name : Sharda University.................................1

1. INTRODUCTION TO PROJECT.............................................................4 THIS PROJECT IS CARRIED OUT BY PARLE BISCUITS PRIVATE LIMITED AS A PART OF THE REQUIREMENTS IN COMPLETION OF POST GRADUATION PROGRAM OFFERED BY SHARDA UNIVERSITY, AND THE DATA COLLECTED FROM VARIOUS MASS COMMUNICATION WHICH INCLUDES THE DATA PUBLISHED BY PARLE BISCUITS PRIVATE LIMITED , NEWS PAPER, PORTAL COMMENTING ON THE STRATEGIES OF PARLE BISCUITS PRIVATE LIMITED AND BASED ON DISCUSSIONS HELD IN VARIOUS FORUM...........4
1.1.Objective of the Project............................................................................................ 4 1.2.Scope of the project.................................................................................................. 4 1.3.Hypothesis Made...................................................................................................... 5 The project was initiated with the research hypothesis that the marketing strategies adopted by Parle Biscuits Private Limited are correct, innovative and according to the emerging marketing conditions. Though the hypothesis is not scientific and descriptive, enough data and findings are collected to measure the correctness of the hypothesis. The hypothesis is proved correct based on the findings of this project...........................5 1.4.Research Methodology............................................................................................. 6 1.5.Research Approach................................................................................................... 6 1.5.1.PRIMARY DATA....................................................................................................... 7 1.5.2.SECONDARY DATA................................................................................................. 7 1.6.Review of Literature................................................................................................. 8 1.7.Limitations................................................................................................................ 8

2.COMPANY PROFILE...........................................................................9
2.1.About the Company.................................................................................................. 9 2.2.Parle G The Evolution........................................................................................... 11 2.3.Parle Golu Galata Contest 2007........................................................................... 15 2.4.CORE VALUES......................................................................................................... 17 2.5.Products Manufactured........................................................................................... 17

3.INDUSTY PROFILE...........................................................................19

Biscuits and confectionaries Industry...........................................................................19 3.1.List of Biscuits and confectionaries in India............................................................19 3.2.Market Share of Parle and other players in India....................................................20

4.FINDINGS.......................................................................................20 MARKETING STRENGTH...........................................................................................21 MARKETING MIX OF PARLE PRODUCTS LIMITED...............................................23 PRODUCT S STRATEGY....................................................................................23
4.2.1.1. PRODUCT LEVELS............................................................................................ 23 4.2.1.2 CLASSIFICATION OF PRODUCT.......................................................................... 24 4.2.1.3 PRODUCT MIX................................................................................................... 25 4.2.1.3.1 WIDTH 25

4.2.1.3.2 LENGTH 25 4.2.1.3.3 DEPTH 25

4.2.1.4 CONSISTENCY................................................................................................... 26 4.2.1.5 BRANDS............................................................................................................ 27 4.2.1.5.1 BRAND NAME STRATEGY................................................................................ 28 4.2.1.5.2BRAND STRATEGY DECISION........................................................................... 29 4.2.1.6. PRODUCT LIFE CYCLE....................................................................................... 30 4.2.1.6.1 FOR PARLE..................................................................................................... 30 4.2.1.6.2 FOR PARLE HIDE AND SEEK........................................................................... 31 4.2.1.7 PACKAGING AND LABELLING.............................................................................32 4.2.1.7.1 PACKAGING.................................................................................................... 32 FOR PARLE G 33

4.2.1PRICE MIX................................................................................................ 36 5.RECOMMENDATIONS.......................................................................64 6.CONCLUSION..................................................................................65 7.BIBLIOGRAPHY...............................................................................66

1. INTRODUCTION TO PROJECT This project is carried out by Parle Biscuits Private Limited as a part of the requirements in completion of Post graduation program offered by sharda university, and the data collected from various mass communication which includes the data published by Parle Biscuits Private Limited , News paper, portal commenting on the strategies of Parle Biscuits Private Limited and based on discussions held in various forum.

1.1. Objective of the Project

This project aims at studying the marketing strategies of Parle Biscuits Private Limited which let them grow from small chocolate and sweets factory in Mumbai to a world accepted product. Marketing strategy in includes FOUR Ps Promotions. of marketing viz., Product, Price, Place and

1.2. Scope of the project

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This project apart from studying the initial strategies and their success in consequence to their strategies, it also studies the current strategies and the challenges faced by the marketing team in designing the strategies and the factors governing the strategies. This project also covers the SWOT analysis of Parle Biscuits Private Limited.

1.3. Hypothesis Made

The project was initiated with the research hypothesis that the marketing strategies adopted by Parle Biscuits Private Limited are correct, innovative and according to the emerging marketing conditions. Though the hypothesis is not scientific and descriptive, enough data and findings are collected to measure the correctness of the hypothesis. The hypothesis is proved correct based on the findings of this project.

1.4. Research Methodology

Research methodology includes random sampling, snow ball sampling and secondary data collection. For understanding the strengths and weakness of Parle Biscuits Private Limited snow ball sampling was carried out with various distribution channels. The sample includes the Stockiest, Distributors and Retail vendors. To understand the promotional strategies a random sampling was conducted amongst the customers, this sample consists more of children and their parents.

1.5. Research Approach

The data collection includes both Primary and secondary sources, collected from the distribution channel, customers, newspapers, social common forum and companys web published data.

1.5.1. PRIMARY DATA Primary data includes the Information collected from the employees during the internship, from stockiest, distributors, institutes, companies, retail vendors and customers, the data is collected through snow ball sampling and random sampling techniques. 1.5.2. SECONDARY DATA Secondary data includes the Review of Literature, newspapers, experts comments and discussion in various social and marketing forums, data published by Parle Biscuits Private Limited through various source of communication

1.6. Review of Literature

There are various researches conducted on the functioning Parle Biscuits Private Limited of which includes 1. The product information about the company, 2. Competitors analysis 3. Journey of Parle Biscuits Private Limited and its success journey

This project studies the FOUR Ps of marketing, which is the key for their success despite of the competitors who tried to imitate their products in terms of color, name and promotional strategy. 1.7. Limitations 1. Unavailability of sensitive data 2. Unavailability of time to cover the entire distribution channel and record their feedback Through questionnaire

2. COMPANY PROFILE

2.1. About the Company

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. Times changed, variety of biscuits did come and go but nothing has changed with these biscuits. Yes, the size of their packing has definitely changed but for the consumers good as these are money savers pack. 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 and sweets. Initially a small factory was set up in the suburbs of Mumbai city, to manufacture sweets and toffees. The year was 1929 and the market was dominated by famous international brand that were imported freely. Despite the odds and unequal competition, this company called Parle products, survived and succeeded, by adhering to high quality and improvising from time to time.
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A decade later, in 1939, Parle Products began manufacturing biscuits, in addition to sweets and toffees. Having already established a reputation for quality, the Parle brand name grew in strength with this diversification. Parle Glucose and Parle Monaco were the first brands of biscuits to be introduced, which later went on to become leading names for great taste and quality. For around 75 years, Parle have been manufacturing quality biscuits and confectionery products. Over the years Parle has grown to become a multimillion dollar company with many of the products as market leaders in their category. The recent introduction of Hide and Seek chocolate chip biscuits is a product of innovation and caters to a new taste, being Indias first ever chocolate-chip biscuits.

All Parle products are manufactured under most hygienic conditions. Great care is exercised in the selection and quality control of raw material and standards ensured at every stage of manufacturing process. Parle Products has 4 manufacturing units for biscuits and confectionaries at Mumbai, Haryana, Rajasthan and Karnataka. It also has 14

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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 Today, Parle enjoys a 40% share of the total biscuit market and 15% share of the total confectionary market, in India. The marketing mix of Parle for this project has been studied from the point of view of Parle biscuits, mainly Parle G and Parle hid and seek.

2.2. Parle G The Evolution

Parle G has been a strong household name across India. The great taste, high nutrition, and the international quality, makes Parle G a winner no wonder, its the undisputed leader in the biscuit category for decades. Parle g is consumed by people of all ages, from the rich to the poor, living in cities and in villages, while some have it for breakfast, for others it is a complete wholesome mean, for some its the best

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accompaniment for chai, while for some its a way of getting charged whenever they are low on energy. Because of this, Parle g is the worlds largest selling brand of biscuits. Launched in the year 1939, it was one of the first brands of Parle products. It was called Parle glucose biscuits mainly to cue that it was a glucose biscuit, it was manufactured at the Mumbai factory, vie Parle and sold in units of half and quarter pond packs.

The incredible demand led Parle to introduce the brand in special branded packs and in larger festive tin packs. By the year 1949, Parle glucose biscuits were available not just in Mumbai but also across the state. It was also sold in parts of north India. The early 50s produced over 150 tones of biscuits produced in the Mumbai factory. Looking at the success of Parle g a lot of their me-too brands were introduced in the market. And these brands had names that were similar to Parle glucose biscuits so that if by anything else, the consumer would err in choosing the brand. This forced Parle to change the name of the Parle glucose biscuits to Parle G

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Originally packed in the wax paper pack, today it is available in the contemporary, premium BOPP pack with attractive side fins, the new airtight pack helps to keep the biscuits fresh and tastier for a longer period. Parle G was the only biscuit brand that was always in short supply. It was heading towards becoming an all time great brand of biscuit. Parle G started being advertised in the 80s. 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 went on to become one of the most popular commercials for Parle G the commercial was run for a period of 6 years. Parle G grew by the minute. Be it the packs sold, the area covered or the number of consumers it became a part of the daily lives of many Indians It wasnt biscuit any more, it had become an icon. The next level of communication associated the brand with the positive value of life like honesty sharing and caring. In the year 1997, Parle G sponsored the tele serial of the Indian superhero shaktimaan that went on to become a huge success. The personality of the superhero matched the overall superb benefits of the

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brand. Parle extended this association with shaktimaan and gave away a lot of merchandise of shaktimaan, which was supported by POS and press communication; the children just could not get enough of Parle G and shaktimaan.

In the year 2002, it was decided to bring the brand closer to the child who is a major consumer. A national level promo Parle G mera sapna such hoga was run for a period of 6 months. The promo was all about fulfilling the dreams of children. Three were over 5 lakh responses and of that, over 300 dreams were fulfilled. The year 2002 will go down as a special year in Parle Gs advertising history. A year that saw the birth of G Man a new ambassador for Parle G not just a hero but also a super hero that saves the entire world, especially children from all the evil forces. A campaign that is not just new to the audiences but one that involves a completely new way of execution that is loved by children all over the world Animation To make the brand much more interesting and exciting with the children, it was decided to launch a premium version of Parle G called Parle G magix in the year 2002 also witnessed the launch of Parle G milk Shakti,

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which has the nourishing combination of milk and honey, especially launched

2.3. Parle Golu Galata Contest 2007

Indias favorite biscuits and confectionery turns Indias corporate partner. As part of its corporate social responsibility to give back to the very country that built it, Parle products introduced the now famed golu galata contest in 2005. First a little bit about the practice. An old tradition from the households of Tamil Nadu, the Kolu is the essence of Navaratri celebrations. It is also followed in many Asian countries, especially Sri Lanka and japan. The Japanese version is known as Hina Masturi. In Tamil Nadu, on the amavasya day, women first finish the ritual tarpana keep the kalash filled with rice, toor dal haldi sticks, betel leaves and nuts or mango leaves with coconut on it The right muhurtam is chosen before placing the kalash and the dolls for worship, with which the kollu festival begins, the dolls are given to the

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girl from her parents during her marriage and are called marapachi bommi (wooden dolls). From this day she starts collecting dolls and observes the ceremony annually. The household women also decorate clay dolls (gods and goddesses painted in bright colors) and display them on the specially prepared lolupadis or steps made of wood and covered with a tick cloth. The number of steps was always an odd number three, five seven or nine. The more the steps, the merrier! Often a variety of dolls are displayed artistically and arranged beautifully on the steps. A well decorated tableau, often this display is enjoyed by friends and relatives. However a recent study found that due to hectic schedules, this tradition is slowly getting restricted to a select few households relatives. However a recent study found that due to hectic schedules, this tradition is slowly getting restricted t o a select few households. Thus, to revive a grand tradition, Parle created a novel promotion called Golu Galata contest. Golu means doll and Galata means dhammal. In 2005, 500 households participated and in 2006, it was 10 000 households who participated.

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At the end of the celebration, the winners will be felicitated at a gala prize distribution ceremony. 2.4. CORE VALUES An in-depth understanding of the Indian consumer psyche has helped Parle evolve a marketing philosophy that reflects the needs of the Indian masses. With products designed keeping both health and taste in mind, Parle appeals to both health conscious mothers and fun loving kids. The great tradition of taste and nutrition is consistent in every pack on the store shelves, even today. The value-for-money positioning allows people from all classes and age groups to enjoy Parle products to the fullest. 2.5. Products Manufactured BISCUITS PARLE G KRACKJACK MONACO MAGIX KREAMS PARLE 20 20 COOKIES NIMKIN CHOX CONFECTIONERIES MELODY KISMI GOLD MANGO BITE ORANGE CANDY KACCHA MANGO BITE XHALE POPPINS 2 IN 1 ECLAIRS
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SNACKS MUSST BITES CHEESELINGS SIXER SIXER ZEERA JEFFS MUSST STIX & MUSST CHIPS

HIDE AND SEEK HIDE & SEEK MILANO DIGESTIVE MARIE PARLE MARIE MILKSHAKTI GOLDEN ARCS KREAMS GOLD MONACO JEERA

KISMI TOFFEE GOLGAPPA KISMEE TOFFEE BAR MELODY SOFTEE MAZELO PARLE LITES

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3. INDUSTY PROFILE Biscuits and confectionaries Industry

3.1. List of Biscuits and confectionaries in India 1. Priyagold 2. Cremica 3. Anmol 4. Sobisco

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3.2. Market Share of Parle and other players in India

MARKET SHARE Parle Britannia ITC OTHERS

Market share % 31.30% 37.00% 6.30% 25.40%

Market share

25.40%

31.30%

6.30% 37.00%

Parle

Britannia

ITC

OTHERS

4.

FINDINGS

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Marketing strength

The extensive distribution network built over the years is a major strength for Parle products.

Parle Biscuits and sweets are available in the most remote places and in the smallest of villages with a population of just 500. Parle has nearly 15000 wholesalers catering to 4, 25,000 retail outlets directly or indirectly. A 200 strong dedicated field force services these wholesalers and retailers. Additionally, there are 31 depots and C & F agents supplying food to the wide distribution network. Parle masses philosophy emphasizes catering to masses. They constantly endeavor at designing products that provide nutrition and fun to common man. Most Parle are now in low and mid range price segments.

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 This is based on their understanding of the Indian consumer psyche. The value for money positioning helps generate large sales volume for the products. However a Parle product 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.

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MARKETING MIX OF PARLE PRODUCTS LIMITED PRODUCT S STRATEGY 4.2.1.1. PRODUCT LEVELS 1) Core benefits -The core benefit of biscuits is to satisfy the hunger of

the consumer.

2)

Basic products in the second level, the basic product is biscuit.

3)

Expected product the consumers expect the product to give taste

and also a good nutrition.

4)

Augmented product Parle biscuits expect to increase the energy

levels. This is not always expected by the consumers and thus it exceeds the consumers expectations.

5)

Potential product in the future, Parle is expected to come with

different products such as a snack which could be a combo of chocolate and biscuits.
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4.2.1.2 CLASSIFICATION OF PRODUCT 1. Based on tangibility the Parle products are tangible. They can be

touched and seen.

2.

Based on functional life Parle biscuits are consumables since

biscuits form a part of food and have a short life.

3.

Based on price and quality most of Parle products like parle G ,

Monaco, Krackjack are mass products but a few Parle biscuits like Hide and Seek and Milano are premium products.

4.

Based on utility they are convenience goods. They are staples

since they are bought regularly. They are often impulse products.

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4.2.1.3 PRODUCT MIX 4.2.1.3.1 WIDTH Parle produces biscuits, confectioneries and snacks. So the width is 3. 4.2.1.3.2 LENGTH The length of Parle products is as below Biscuits Parle g Milk shakti Krack jack Hide and seek Mango bite Monacco Snacks Jeffs Sixer Kismi toffee bar Orange candy Marico Confectioneries Melody Bites tangy tomato Marie choice Chox Rola cola

Fun Centre Chocolate, butterscotch, strawberry, milk cream, nimkin Parle cream Mango, orange, elaichi, bourbon, pineapple, Digestive marie Krack jack cream, Mayfair

4.2.1.3.3 DEPTH Parle G comes in 8 different sizes. Hence the depth of Parle G is 8

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For variants of PARLE G Parle G Magix has 2 flavors i.e. Choco and cashew. It comes in only one size. i.e. 75 gms. So the depth is 2. Parle milk Shakti has no flavors. It comes in just 1 size that is 150 gms. So the depth of Parle G is 8+ 2+ 1=11

For Parle Hide and Seek and Milano- Parle Hide and Seek comes in two sizes. 25 gms and 100 gms. Hence the depth is two.

Parle Hide and Seek Milano come in only 1 size. Also it has no flavors. The size is 100 gms. The depth of Parle Hide and seek therefore is 2 + 1 = 3.

4.2.1.4 CONSISTENCY The product consistency generally depends on 3 parameters 1. production

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2. 3.

distribution

consumer end use

The production process of every Parle biscuit follows the same basic ingredients like wheat flour, vegetable oil, inverted syrups, skimmed milk etc. then depending upon the product, extra ingredients are added, for example, in Monaco, there might be an extra pinch of salt to give in that prominent salt taste . Like in hide and Seek, chocolate chips are added. Parle uses the same distribution channel for all its products under the biscuit category like the 1st, 2nd and 3rd level of distribution channels. The basic end use of all Parle products remains the same-eating it simply to satisfy the hunger. Products like Parle G may also be consume for instant energy and strength.

4.2.1.5 BRANDS Parle biscuit brands such as Parle G, Monaco and krack-jack earn a strong imagery and appeal against the consumers. Be it a big city or a remote village in India, Parle G name symbolizes quality, health and
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great taste. And yet this reputation has been built by constantly innovating and catering to new tastes. This can be seen by success of new brands like Hide and Seek and Hide and Seek Milano.

4.2.1.5.1 BRAND NAME STRATEGY

Parle follows company brand name strategy since all the products are named keeping the companys name as prefix such as Parle G, Parle Hide and Seek, Parle Monaco, Parle Digestive Marie etc.

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4.2.1.5.2 BRAND STRATEGY DECISION

Product category Old New

LINE EXTENSION ( OLD) MULTI BRAND (NEW)

BRAND EXTENSION NEW BRAND

Parle follows both line extension and brand extension for its products. For a product like Parle G , it followed line extension with introduction of Parle G milk shakti and Parle G Magix which has both the flavours choco and cashew. For Parle Monaco, it too followed line extension when a new flavour Parle Monaco Jeera was introduced.

Similarly when it introduces any new product in biscuit category, it follows line extension.

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Initially, Parle G used to produce only confectioneries. It followed brand extension with introduction of products in biscuits and snacks category. In this way by concentrating on consumer tastes and preferences and concentrating on Research and Development, the Parle brand grows from strength to strength. 4.2.1.6. PRODUCT LIFE CYCLE 4.2.1.6.1 FOR PARLE PARLE G ll

Parle as a company has reached its maturity stage in product life cycle as since products such as Parle G, Parle Monaco, and parle Krackjack
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which form a major part of Parle products sales have captured most of Indias market.

But for its premium biscuits like Parle Hide and Seek and Parle Hide and Seek Milano , the products are in growth and introduction stages respectively. 4.2.1.6.2 FOR PARLE HIDE AND SEEK ll

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Parle Hide and seek was introduced in the year 1998 with flavors such as mint, orange and chocolate. But it did not really succeed in capturing consumers attention. So after a few years, It was re launched with just chocolate flavor with new packaging.

After re launch it started getting attention of its potential buyers and hence it is in the growth stage of its life cycle. It has to fight for its stand in the market since it faces competition from Britannia Good day choco nuts. 4.2.1.7 PACKAGING AND LABELLING

4.2.1.7.1 PACKAGING

The time spent by a customer in picking up a product from a retail outlet is just a few seconds. Therefore, the package should appeal to the customer within such a small interval of time. In this, both packaging and labeling play an important role in attracting customers both visually and psychologically.

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FOR PARLE G Parle G was initially recognized by its white and yellow wax stripped wax paper wrapper with the baby face on it. Many competitors have tried selling their products copying the packaging of Parle , trying to sell their biscuits as Parle G; Parle Jee parle G has started using plastic wrappers for its packaging.

Parle G comes in 8 different sizes. 25 gms, 44 gms, 93.5 gms, 231gms, 340.5 Gms, 462 gms, 577.5 gms, 1000 gms pack just for Rs.30 which is not offered by its competitor brands.

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FOR PARLE HIDE AND SEEK

It initially came out in 3 variants, mint chocolate and orange which was not accepted by the masses. Thus the production of Mint and Orange flavors were stopped. Chocolate is the only flavor which is running successfully till date as it is Indias first chocolate chip biscuit.

Hide and Seeks current packaging has been modified with lower pricing and better affordability rates. Thus there is a change in the size of the product which is prevalent in the ads.

One of the advertisements show movie actor Hrithik Roshan walking with a hide and Seek packet, comfortably put in the back pocket of his trousers emphasizing on the small size of the product.

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FOR PARLE HIDE AND SEEK MILANO

This product of Parle has a flashy purple coloured packaging with the complete look of Italian chocolate chip cookies.

2. LABELLING

Increasingly, consumers are becoming more health conscious day by day. Thus it is essential to display the content of every pack. Hence, every product of parle G, Parle Hide and Seek, and Parle Hide and Seek Milano has all mentioned in the packet right from the ingredients used, nutrition contents, mailing and Emailing addresses asking for feedback, phone number, packaging date etc.All this along with brand name and directions are printed in Hindi too.

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4.2.1 PRICE MIX

1.

PRICING STRATEGIES-

parle marketing philosophies emphasize on catering to huge masses. It constantly endeavors at designing products that provide energy to common man. Post parle products come in low and mid range price segments. This is based on the cultivated Indian consumer behaviour psyche. Value for money positioning helps to generate large volume of sales for the products. Parle G adopted the marketing penetration strategy i.e. low price along with capturing of a large market. Also they focus on low price and good quality product at the same time which means it uses the value pricing method. This benefits Parle G by having a market share of 40% currently in both rural and urban market .

For setting the price of their pemium product , Parle Hide and Seek, a survey was conducted in urban and semi urban markets; on the basis of which Hide and Seek was introduced.

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It was found that the potential consumers were ready to pay a premium price for an innovative product like choco chip biscuits. Thus Parle adopted MARKET SKIMMING where th price of the product was high and also of high quality. All these show customer status, which is also one of the reasons why it was priced high.

A separate example of explaining the pricing strategy of Parle is its product PARLE CREAMS.

For this, parle uses going rate method only as a reference rate. In this case, Parle creams were introduced after Britannia cream Treat with similar variants but Rs.5 per packet of biscuit and not Rs.10 like that of Britannias cream treat. 2. PLACE MIX

The extensive distribution network , built over the years is a major strength for Parle. It even reaches out to rural areas with as low as a populace of just 500.

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CHANNEL LEVELS

Parle has nearly 1500 wholesalers catering to 4, 25,000retail outlets ,directly or indirectly.A 200 strong dedicated field force services these wholesalers and retailers. Additionally, there are 31 depots and C& F agents supplying goods to the wide distribution network. So it seen that Parle has level1, level2 and level 3 distribution channel levels. LEVEL1 availability to all department stores

LEVEL 2- since its a FMCG product, this channel exists for customers scattered throughout the country.

LEVEL 3- mass consumption and suitable for national and international coverage. For example, Parles national and international operations consist of serving markets in the Middle East, Africa, South America,Sri Lanka , Australia and North America for which 3 level distribution channel exists.
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CHANNEL DYNAMICS

Parle has a multi channel marketing system since it uses more than 2 marketing channels to reach all its customer segments. 3. PROMOTION

The marketing mix used by Parle is sales promotion. Public relations and advertising. 3,1 ADVERTISING Parle G started being advertised in the 80s. it was advertised mainly through press ads. The communication spoke about the basic benefits of energy and nutrition. In 1989, parle G released its dada ji commercial ad which went on to become one of the most popular ads for Parle G. the commercial was run for a period of 6 years. Parle G grew by every minute. Be it the pack sold, the areas covered or the number of consumers. It became a daily part of the lives of many Indians. It was not a biscuit anymore. It had become an icon. The next

39

level of communication associated the brand with the positive values of life like honesty, caring and sharing. The year 2002 went down as a special year in the calendar of Parle s events. It was an eventful year. It gave origin to a new character, called G man , the new ambassador for Parle G. not justa hero but a super hero that saves the entire nation, especially children from all evil forces.

A campaign that was not just new to the audiences but one that involved a completely new way of execution that was loved by children all over the world. A TV commercial that showed G man saving the children from the evil force called Terrolene launched this campaign. It was also supported by print medium through posters and streamers put up at retail outlets.

Another campaign that was launched by Parle G was G maane genious. In this a small child after having Parle G is able to trick the wise and experienced people.

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Just a few months back, a reminder TV commercial was launched for Parle where the product is called Hindustan Ki Taakat. Most of the Parle G products tell us that brand awareness is done by capturing consumer emotion.

Heavy promotions play a major role in creating brand awareness. Such is a case of Parle hide and Seek advertisements. The ads of Parle hide and Seek are portraying Hrithik Roshan. This tells us that the product is being promoted by celebrity endorsee to attract consumer attention and to increase awareness of this product.

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3,2SALES PROMOTION Parle uses its sales force promotions for all its employees. Every year it holds day fairs at branded venues where fun events and games are employed for the employees there and their families where Parle products are a take away prizes for them. 3, 3 PUBLIC RELATIONS Parle has done the following for enhancing the public relations. In the year 1997, Parle G sponsored the tale serial of the Indian super hero SHAKTIMAAN that went on to become a great success. The personality of the super hero matched the overall brand image of the company. Parle extended its association with SHAKTIMAAN and gave a lot of merchandise of SHAKTIMAAN. The children just could not get enough of Parle G and SHAKTIMAAN.

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Institutional sales
Institutions means those outlets which buy a product in larger quantities as compared to normal outlets, due to high consumer inflow like S.T.Canteens, Railway Canteens, Self Service Stores, Hospital Canteens, School Canteens, College canteens. Resorts or for their intermal consumption like Factory Canteens. Office Canteens, or outlets who may not buy in large quantities but where our product availability is a matter of prestige like Clubs, Theatres etc.

We had been in a shortage situation upto a few years from now due to which institutions were not really looked to as a potential source of getting assured, regular and quantum business. Whichever institutions were coming in our route or an institution who inquires with us was tapped and serviced. In the year 2002 we realised that we were really losing out on this huge potential and this was the time when we went about systematically listing and tapping all types of institutions. Inspite of doing this exercise diligently for a year we are presently covering 50% of the available institutions and getting sales which contribute to around 5% of the territory sales. In towns where the potential is high we can also appoint a separate wholesaler to cater only to institutions. Our aim is to get 15 to 20% of territory sales from institutions.

Outlet Self Service:

They are outlets where all the products they sell are visible to the consumer and generally there is no influence of the retailer in selling a product. Self service outlets ask for some discount to be given for keeping our products on specific racks which have more visibility. Whenever a new self service outlet is veing started, it should ve catered to as an A class outlet without offering any sort of discount. However after a few visits we can negotiate for doubling the existing sale or for giving our products prominent display in the shop or both and can offer him a discount of up to 2% by taking prior permission from
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your senior. We can also take up some in-shop promotiions to be done during any festival within this budget,but against prior sanction. Our service levels to such outlets should be of very high level because if stocks are not there on the shelf, the consumer will buy some competitor brand. Every 3rd day the unit should visit them and after booking orders ensure all products are available on the shelves. TS/SR should visit all self service outkeft on every visit to a visiting town and in HQ once a week . whollesaler owner should visit minimum once a weed. In W/S ,TS and SR visit the objective should ve to get at least one more shelf or jar and to sell minimum one more product than what the outlet is already buying. Updated status of visits and availability should be there with the TS/SR and AFM.

S.T. Canteens/Railway Canteens / Hospital Canteens :

These are outlets where the flow of customers is very high. The cusstomers who frequent these outlets are not regulars but they are travelers who do not have much time to waste. In the little time a consumer has he picks up or asks for products which are seen, so, in such type of outlets also visibility plays a very important role. The potttential of these outlets is very high. If our service level and visiblity in these types of outlets is high we can get good volume of business from them. Unit should visit them every 3 days. Wholesaler owner should visit minimum once a week. In W/S, TS and SR visit the objective should be to get at least one more shelf or jar and to sell minimum one more product than what the outlet is already buying. For getting higher volumes than what we are already getting from such outlets, we can offer discount up to 2% on prior sanction from your seniors or this amount can bi utilized to put up dealer board or getting his most prominent shelves as a permanent display for us. List of hospitals can be got from the medi-claim office of insurance companies.

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Hospital Kitchens : Generally most of the hospitals serve biscuits to

their patients along with tea 2ce a day. Here the patients dont have a choice but the hospital authorities do. This is a very good sales outlet for us since oour product is going directly to the end user and also it gives us a lot of publicity. In this case we have to approach the Dean/Natrition incharge and convince them to buy our product. In such outlets you haave to give your best try if not once on quite a number of occasions because once you get a breakthroughyou get quantum and assured vusiness for a very long time. Unit and wholesaler owner should visit minimum once a week. In TS and SR cisit to any town they should make it a point to cisit such outlets for introducing more range. No discount to be extended.

School/Collage Canteens

: These canteens are either run by the authorities or they are given to private vendors against a monthly rental. But even in cases where it is given to private vendors the school / college Principal will be the deciding authoruty as to what products should be should ve sold since it is a matterof health of the children. So to get through in such outlets we have to approach the Principal first. In any case if it is okayed by the Principal then the vendor has to keep the product. Unit and W/S owner has to visit minimum once a week. TS/SR should visit such outlets on every 2nd visit to visiting town and on HQ minimum once a fortnight with the objective of increasing minimum one jar or shelf. List of schools / colleges can be got from the local district level authorities.

Factory / Office Canteens

: There are some factories who have employees consumer societies, in which the deciding authorities are the union members who have their monthly / fortnightly meetings to decide any new product introduction. So in such cases we would have to approach these union members, give our samples and prices and keep a regular follow up with them. In some cases the factories have canteens which are given to private contractors to run. These contractors run
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canteens in many factories / offices. So getting a breakthrough in even of them would give you an easy entry in many other factories offices automatically. In other cases the concerned factory gives biscuits to their employees along with tea as a welfare measure. In such cases the deciding authority would be the personnel manager. In both cases these cases the final sale will not happen in a single visit. We will have to visit them frequently to finally clinch the sale.

Clubs:

Most clubs have Self Service shops within their premises.Club members are generally people who have some standing in society or the upper class. Hence in such outlets our products being available is a matter of pride and prestige. Our service levels to them should be same as for self service outlets.

Theatres:

In theatres the sale happens only during intervals and before start of the show. Here consumers dont have much choice exept whatever is sold by the canteen. These canteens sell at rates much above M.R.P because of the high rentals of their stalls, so emphasizing on M.R.P would not help here, rather we can emphasize on how much the product can be sold at and what rupee value profit the vendor will get. Making our products available in theatres is very important as the off-take of product is sure shot because of less or no competetion. Even in this case, the canteen owners generally run canteens in many theatres so, if you get an entry in 1 of them it will be easy in the others. Service levels should be the same as for S.T. canteens.

Resorts/Hotels:

Many good hotels keep biscuits in the rooms for their guests and also offer it during conferences which they have. In hotels and resorts people go for holidays, they have leisure time they have a good look at that is being offered by the hotel, which in other cases they whouldnt have the time to do so. Hence keeping or offering
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biscuits of our company would also enhance the image of their resort and for us, it would be publicity and an image building to say that we are also supplying to x chain of hotels etc. Making our products available may take the same effort as that of factories . Our service levels should also be the same as that for factories.

Overall remember institutions can help you a great deal in achieving your targets month after month and being in grade I quarter after quarter.

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In the year 2002, it was decided to get the child closer to the brand who is a major consumer. A national level promo Parle G mera sapna sach hoga . the promo was run for 6 months. It was all about getting the desires in children to fulfill their wishes and wants. There were over 5,00,000 responses and out of which 300 were fulfilled. These dreams were fulfilled ranging from a trip to Disneyland and Singapore , meeting their favourite film hero Hrithik Roshan, free ride on a charter plane, 20 scholarships worth Rs. 50,000, a special cricket coaching camp with the Australian cricketer, Ricky Ponting etc.

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GOLU GALATTA CONTEST

In Tamil Nadu, women generally decorate their homes with toys made of mud and clay in a step down ladder for all the 9 days in the period of Navratra. The steps are generally in odd numbers from a minimum of 3 and a maximum of 9. All relatives and friends are invited over for the same to each others place to witness this event, called as Golu . Due to increasing work pressure in the offices and hard pressed for time, and little time to celebrate this function , thus it soon became a fading event. Parle rightly tapped its importance amongst the south Indian households and vigorously promoted an event what was called the Golu Galatta contest in 2005.after the warm response from large number of households, and thus the success of the promotional event, Parle in year 2006 took this contest to the interiors of south including Madurai, Trichi, Kumbakonnam etc. ( Golu means doll and Galatta refers to Dhamaal).

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CONSUMER BEHAVIOUR

1.FOR PARLE G- In India, it is a tradition to have biscuits with tea. Parle G is referred to as Biscuit in rural areas. Thus when asked for a Biscuit to a shopkeeper, it simply means that the consumer wants a Parle G.

Understanding the consumer behaviour is tough. Its challenging to comprehend their buying motives and buying habits.

Keeping all this in mind, the factors influencing the consumer behaviour are Parle G being a consumable product is not being influenced by cultural factors. As a component of buying behaviour social factors are sub divided into Reference groups, family & social role & status.

1.REFERENCE GROUP- people especially kids are always influenced by the people around them especially their kins and realtives. And thus if any of those are having Parle G, then they too want it.
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2.FAMILY- in this case too, if there is a practice in the family of regularly taking Parle g along with tea, then its obvious that growing children would too form a habit of regular consumption of Parle G biscuits. Also , any additions made to the family would too be used to it in no time.

3.PERSONAL FACTORS-The factors whose intensity differs within each individual is termed as personal factors. they are : 3.1.AGE Parle G is consumed maximum in the age group of 5-15 years i.e. the growing age group. Kids who have formed the habit of eating Parle g biscuits continue to eat even after they have grown up.

3.2. OCCUPATION- the buying behaviour of an individual is influenced by his or her profession too. In case of Parle G, the purpose of buying the product would differ for a MNC job holder and a labourer.

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While for the executive, the reason to but simply may be to have a variety of biscuits available at home or just as a casual alternative. However, in the case of a labourer, it may be to simply satisfy his hunger. For him, thus its not a matter of choice or luxury the very matter of survival.

3.3. INCOME- income of an individual is the deciding element for any expense. For a labourer whose income is low and fixed, and for whom the product would be an instant energy booster, he would definitely opt for Parle G and for no other product even if the same range. However since parle G is extremely low priced, the cost of the product is often not a consideration. And thus all level of income groups purchase it.

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2. PSYCHOLOGICAL FACTORS 2.1.MOTIVATION- the main aim to purchase and the motivating factor to consume Parle G is simply hunger. This is what draws the consumer to take the product. Also twilight is especially the time when the Indian households have tea and so often Parle G acts as a snack too.

2.2.PERCEPTION- the consumers have a perception of Parle being a quality product with immense glucose product and since it is priced low too, it is generally purchased.

FOR PARLE HIDE AND SEEK 3.SOCIAL FACTORS 3.1.REFERENCE GROUP-Parle hide and Seek is targeted at the youth. For this product, an influence is often sibling or a friend. These act as references to an individuals decision making . 3.2.STATUS- Parle Hide And Seek is a high priced product. So consumers in the higher income groups would prefer to buy this product

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over other less expensive product as it gives a touch of royalty in your living. 4.PERSONAL FACTORS

4.1.AGE- the advertisements are such the adolescents especially in the age group of 15-28 years get highly carried by the world of advertisements . and it often acts in their conscience and thus they quickly purchase the product. To add on , the endorsements have Hrithik Roshan consuming just the same.

4.2.OCCUPATION- Major consumers for parle Hide and Seek are students.

4.3.INCOME- since its a high ranged product,the potential customers for this product are high income holders. The chances of a lower income strata individual buying the product is lower than that of a highly paid individual.

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5.PSYCHOLOGICAL FACTORS

5.1.PERCEPTION- Consumers perceive the brand as tasty and crispy, chocolate not very sugary. Its perceived as a brand leader in this segment and some firmly believe that there is no competitor. While some regard britannia Bourbon as the only stiff competitor. Very few know that its real competitor is Good day Choco Nuts.

MARKET SEGMENTATION

1.LEVEL OF MARKET SEGEMENTATION

PARLE G is consumed by people of all ages from rich to poor, living in cities and villages. While some have it as breakfast, others have it as a wholesome meal. For some its the best accompaniment for tea, while for some its a way of getting charged whenever they are low on energy.

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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.

However parle follows niche marketing for Hide and Seek. Its a premium product and since its chocolate flavour, its liked by all chocolate lovers. when Hide and Seek was first launched, there was no other biscuit of that kind.

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2. MARKET SEGMENTATION Parle G is consumed by people in urban areas and rural areas both. However, Parle Hide and seek being a premium product and highly priced is only consumed in urban and semi urban areas.

DEMOGRAPHIC SEGMENTATION Age Parle Hide and Seek is eaten mainly by youth and growing children for they have a fetish for it. Parle G is however consumed by everyone. Income Parle Hide and Seek is consumed by high income group while Parle G consumed by all income groups. Social class- Hide and Seek is meant for rich class and middle class families. However Parle G can be consumed by only lower & middle class due to lack of funds with the and lower strata groups.

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1.2. BEHAVIOURAL SEGMENTATION 1,1,2. Benefit sought- In case of Parle G, there is instant source of energy and in case of hide and Seek , there is good taste.

3.PATTERN OF MARKET SEGMENTATION

1.PREFERENCE: Clustered If we divide the whole market on the basis of sweetness and saltiness in biscuits, then the possible outcome would be that the preferences would be clustered near some tastes i.e. the consumer would not like to have something really vague like 50% salt, 25% creamy and 25% sweet. This is why the preferences are clustered and not diffused wherein the preferences have to be really extreme and vague. Parle as a company makes use of the clustered preferences and manufactures for each cluster. Eg, Monaco for extremely salty biscuits and its latest product Krackjack cream is for sweet and salty taste.
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DIAGRAM

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TARGET MARKETING STRATEGY

DIAGRAM

Blue

Blue

Blue

Green

Orange

Orange

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PARLE COMPANY AS A WHOLE ENGAGES IN SELECTIVE MARKET SPECIALIZATION STRATEGY The above diagram, the blue colour explaining the extent of Parle G. it is 1 product for all the 3 market. But for Hide and Seek,its the green colour where it is aproduct for only 1 market. Whereas , the orange colour is for Krackjack biscuits where it is for 2 markets.

POSITIONING STRATEGY Parle G is positioned in the minds of the people as a low cost product and as value for price product. Whereas Hide and Seek has tapped a new market.

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DIFFERENTIATED STRATEGY

For Parle the company has used channel and image differentiation tools. Parle G has by far the most intensive distribution coverage as compared to any other biscuit company in India. Also the name Parle generates a lot of respect and belief of good quality in the minds of the buyers.

PACKING

As in all other biscuits, Parle products packing is similarly important. The basic small packs are done mechanically using automated machines and are sealed using the polybag sealing machine. These small packs are then manually packed into small boxes and then it is sent on the conveyor belt to be packed in large cartons.

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As many as 160 packets are packed per minute and in one big box, there are 160 parle G biscuit packets. The packaging material is also produced within the factory premises itself. For export purposes, the packets have different languages written on them depending upon the geographical location and demand of the people. Each factory has a state of art machinery with automatic printing and packaging facilities.

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5.

RECOMMENDATIONS

Its seen that Parle is very particular on its brand image and the quality of making its products. Thus that being a brand differentiation in itself, It must maintain that at any given time. There must be proper quality management techniques that help in constantly upgrading the products worth. It was seen that even in the times of inflation when the cost of manufacturing the product increased, it made sure that the burden did not fall on the consumers. Rather it came with a unique strategy of reducing the quantity of 100 gms of its product to almost 88gms but with the same pricing. Also Parles product coverage is weak in Eastern India and Tamil Nadu. Thus it must constantly come up with promotional offers to improve its sales. Also , Britannia has a wide coverage almost equaling Parles market share. Thus it must always be very competitive.

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6.

Conclusion

Over the years, parle has become a multi million US dollar company. Many of the market leaders in the range of biscuits and confectioneries are market leaders in the category and have won acclaim at the Monde Selection since 1971.

Today, parle enjoys a 40% share of the total biscuit market and 15% share in the total confectionery market. The parle biscuit brands such as Parle G , Monaco, and Krackjack and confectionery brands such as Melody,Poppins, Mango bite, Kismi enjoy a strong imagery amongst customers.

Be it a big city or a remote village in India , Parle enjoys the reputation of quality, health and great taste. And yet we know this reputation has been built by constantly innovating and catering to new tastes. This can be seen in the success of new brands like Hide and Seek or simple wrapper twisting like mango bite.

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7.

Bibliography

www.parleproducts.com www.indiainfoline.com Philip Kotler - Marketing management

www .Wikipedia.com

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