Certificate: A Report On Study of Marketing Statergy With Special Reference To Parle Company. Submitted by
Certificate: A Report On Study of Marketing Statergy With Special Reference To Parle Company. Submitted by
SUBMITTED BY:
PROJECT GUIDE:
SUBMITTED TO:
CERTIFICATE
I, MRS. SAUMYA GOYAL hereby certify that MR. MUKUL SHARAWAT, a student of CPJ
college has completed project on ―MARKETING STUDY OF PARLE‖ in the Academic Year
2016 – 2019. Thus information submitted is true and original to the best of my knowledge.
Project co – ordinator:
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ACKNOWLEDGEMENT
I take this opportunity to thank the college for giving me a chance to do this project.
I express my sincere gratitude to other teachers for their constant support and helping for
completing the project.
I am also grateful to my friends for giving support in my project. Lastly, I would like to
thank each and every person who helped me in completing the project especially MY
PARENTS.
SIGNATRUE
EXECUTIVE SUMMARY
The report is an earnest endeavour made to understand the present market scenario in biscuits
captured by the Parle and the other competitor‘s brand viz., Britannia, Priyagold , and ITC. We
are required to see the coverage by the Parle Product Pvt. Ltd., and bring out the potential and
loyal retailers so that the company could maintain the market leadership in the existing business
scenario in the biscuit and the confectionaries. The study encompasses the penetration of the
existing Parle Products (Biscuits and Confectionaries) and the market potential for the new
product like Golden Arch, Nimkin, Monaco Funion, Melody Softee, Mazelo. Their motives were
to study the working of the distributors in Delhi market. They have mentioned the problems and
the loop holes in the Parle‘s distribution system and the promotional tools, which they have found
during the course of study and recommended various corrective measures for it. I also studied the
behaviour of consumer about their preferences for Biscuits, Candies, and their overall buying
behaviour with the help of questionnaire.
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OBJECTIVES OF THE STUDY
PRIME OBJECTIVES
OTHER OBJECTIVES
To find out the competitive activity and merchandising through retailer of PARLE G
BISCUIT.
RESEARCH METHODOLOGY
PRIMARY DATA
SECONDARY DATA
PRIMARY DATA
It is gathered for the first time by the researchers. If the secondary data is found to be
inadequate or unavailable, the researcher goes for primary data.
The data collected was to collected from different wholesale & retail outlets of biscuit
Snamely
Shop
Confectioners
SECONDARY DATA
Secondary data is the data borrowed from secondary sources by the researcher.
Secondary data can be internal or external i.e., internal records of the company or
information available from library and other statistical organization. In a market Research
Project Field Work Has a very vital role to play. As a matter of fact, it‘s the back bone of
any Market Research Project Field work basically consists of collection of primary data, In
this project, researcher had to undergo a lot of Field Work.
For the purpose researcher has visit various cinema halls , public attractive places,
colleges & school canteens etc. The whole area which was to be surveyed was divided
into different segments randomly. Simultaneously survey of both retailers and consumers
was carried out. The researcher worked in the field for a span of one& half months. Later
on whole data which was collected from field was well scrutinized & tabulated for
analysis. Its interpretation has been provided in most easy to understand manner with the
help of suitable diagram & charts.
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
multimillion dollar company. While to the consumers it's a beacon of faith and trust, competitors
look upon Parle as an example of marketing brilliance. Over the years Parle has grown to become
a multimilliondollar company with many of the products as market leaders in their category.
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 onto become leading brand names itself for great taste and quality.
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Today, the great strength of Parle Products is the extremely widespread distribution network.
Even at the remotest places, you can buy Parle biscuits and sweets from the local grocer. It
has taken years to create this extensive network. Parle‘s sales force started with one salesman
in Bombay and some agents in few other cities. Gradually, Parle Products expanded. Soon
sweets and biscuits were being sent by rail to Calcutta, Delhi, Karachi, Madras and other
major cities. As production increased, distribution was amplified. Full time salesmen were
appointed in different areas. Currently, Parle Products has over 33, 00,000 distribution
outlets.
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.
All Parle products are manufactured under the most hygienic conditions. Great care is
exercised in the selection & quality control of raw materials, packaging materials & rigid
quality standards are ensured at every stage of the manufacturing process. Every batch of
biscuits & confectioneries are thoroughly checked by expert staff, using the most modern
equipment.
The Care is taken at every step to ensure the best product of long-lasting freshness. Every
batch of Biscuits, Confectionaries & Snacks are thoroughly checked by expert staff using
the most modern equipment. This ensures consistent and perfect quality across the nation
and abroad.
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)
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.
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BOARD OF DIRECTORS
PRODUCTS OF PARLE
BISCUITS SWEETS SNACKS
Parle-G Londonderry
Parle‘s wafers Monaco Melody
Namkeen Golden Arcs Mango Bite
Fulltoss Parle Actifit Digestive marie Kaccha Mango Bite
Munchies Parle Marie Chox
Cheeslings Hide & Seek Poppins
Hide & Seek Fab Mazelo
Hide & Seek Bourbon 2 in 1
Festo 2 in 1 Éclair
Happy Happy Kismi
Milano Kismi Toffee Bar
Nimkin Fruit Drops
Coconut
20 – 20 cookies
Jam In
Gold Star
Kreams
Top
Magix
Coconut
These products are discussed below in short about that featurs , pricing etc.
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BISCUITS
PARLE G
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MONACO
When life hits a dull patch, just pull out a Parle Monaco to make it exciting. The light, crispy
biscuit sprinkled with salt, is the perfect namkeen twist you can add to your ordinary boring
moments. Go ahead, Life namkeen banaiye, anywhere, anytime with Parle Monaco. To spice up
your life further, try the variant of Parle Monaco - The Zabardast Jeera. This salted, crispy biscuit
delicately seasoned
with jeera, has a unique taste that makes those namkeen moments even more
exciting.
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HIDE N SEEK
Play a game of hide and seek with your taste buds. Indulge in the mouth-watering delight
of India‘s best moulded chocolate chip biscuits, Hide & Seek. All it takes is one bite, and
you are transported to chocolate Heaven. Packed with a bounty of chocolate chips, once
you try Hide & Seek, you will never want any other biscuit again. A treat for the mouth,
and the heart, khate hi dil aa jaye!
The moment you take a bite your tongue starts playing hide n seek with the rich chocolaty
cream resting between two lovely sugar-coated biscuits. The melting chocolate cream will
feel rich and luscious in your mouth. It‘s a complete treat for your taste buds. Moreover, it's
like falling in love at first bite.
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GOLDEN ARCS
Introducing irresistible Golden Arcs, filled with rich Strawberry, Apple, Orange & Choco
Fillings. They are best described as 'melt-in-your-mouth', soft shelled fruit rolls and crunchy
choco fills which are perfect for an anytime snack.Do bite into one of our 4 Delicious flavours
.
Rs. 20 and Rs. 35
TOP
It is the ultimate crispy cracker with the finest taste of butter, especially made to mesmerize
you with its smoothness. The unspoken dream or the wildest imagination gets real, with the
smooth texture of butter. So take a bite and escape into your own world where it will be just
about you and everything else fades into oblivion. Let no one come between you and
"Buttery Taste & Buttery Dreams".
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SWEETS
Londonderry
Get a taste of the rich English-Irish culture, right here in India. With Londonderry, an
exquisite hard-boiled candy made from Milk and Caramel. With a name inspired by an
actual town in Ireland, the creamy, exotic taste of this delicious candy will make you
discover the glories of the majestic English-Irish culture. Just pop-in a Londonderry candy
and experience The magical world of Londonderry.
Rs. 50 paise
Melody
Caramel meets chocolate to yield an outcome nothing less than delectable. Parle Melody
comes with an irresistible layer of caramel on the outside and a delightful chocolate filling
within. Pop it in your mouth and relish the unique experience. It won‘t be too long before
you find yourself asking the age old question ‗Melody itni chocolaty kyon hai?'
Rs. 1
The mastiful flavour of summer now comes in a candy. Just pop a Kaccha Mango Bite and
experience the natural tangy sweetness of a real raw mango. It's the only candy that is a real
kacche aam ka zerox. So when you're craving for the tantalizing khatta-meetha taste of raw
mango just reach out for a Kaccha Mango Bite and enjoy real kacche aam ki masti,
anytime, anywhere.
Rs. 50 paise
2 in 1 Éclair
It‘s a creamy, delicious bargain! Savour the delicious cream filling overflowing from a
golden caramel shell. Delight your taste buds with rich taste of cream and caramel. It‘s
Eclairs 2 in 1, a sweet delight to double your pleasure and treble the fun! And remember,
two‘s always better than one.
Rs. 50 Paise
Kismi
Now the yummy toffee and elaichi taste of Kismi Toffee comes specially packaged in its
maha-avatar. Now when you study or play, bring your appetites and more for this
fantastically big bite of Kismi Toffee Bar. Making it one of the most popular toffee bars
in India. After all everyone knows, when it comes to toffee, big is best.
Rs. 2
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SNACKS
MUNCHIES • JEFFS
• SIXER
Think Square is boring? Then what
you need is a Sixer. This six-sided,
salted delight cuts out the boring
from a biscuit. A unique shape
coupled with an equally unique
crunchy, munchy, salty taste that
leaves you asking for more!
CHEESELINGS
For the love of cheese and only cheese! Parle pulls out ‗Cheeselings‘ from its pool of
innovative products. It‘s a baked snack, light on tongue and high on its Cheesecious taste.
Its fluffy form makes it very crunchy yet it actually melts in your mouth, leaving behind the
lingering flavor of cheese. Each bite opens the doors to that nostalgic feel everyone would
love to savor. Once tried, we bet you will become a fan of Cheeselings. So, what are you
waiting for? Come, join the ever-increasing Cheeseling Fan Club and Parle will make sure
your favorite snack reaches you most conveniently.
160 gm - Rs. 40
320 gm - Rs. 80
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PARLE’S WAFERS
Presenting Parle's Wafers. Made with the choicest of handpicked potatoes, it's lip -
smackingly delicious, delightfully crunchy and comes in four exciting flavours - Masala
Masti, Red Chilli Achaar, Classic Salted, Aloo Chaat, Cream and Onion, and Tangy Tomato.
Grab one. Or grab‘em all. Whenever you want, wherever you please. We're sure you'll enjoy
it from the very first chip ti ll the very last.
Rs. 5, Rs. 10 and Rs. 20
FULLTOSS
"Imagine you are playing for Indian cricket team; we need 6 runs from the last ball. An attempted
Yorker turns out to be a full toss. You lift your bat, swing it hard and the ball disappears in the
crowd. It‘s a six!!! Felt the joy? This is how you would feel after each bite of Parle‘s FullToss.
What adds more excitement in any tale are its twists, hence its shape is powered packed with
masaledar Karare twists. Just open a pack of this lip smacking – scrumptious snack and add some
spice in your day to day moments. It‘s perfect for every occasion and each craving.
Available in exciting flavours - Masala Munch, Masala Kachori, Jhalmuri Kolkata Bhel,
Green Mango Chatni, Tangy Pickle, and now you can try the new Tomato flavour.
Rs. 5, Rs. 10 and Rs. 20.
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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 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 & retailers.
Additionally, there are 31 depots and C&F agents supplying goods to the wide distribution
network.
The Parle marketing philosophy emphasizes catering to the masses. They constantly endeavour at
designing products that provide nutrition & fun to the common man. Most Parle offerings are in
the low & 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. 22
SWOT ANALYSIS
SWOT analysis is the firm should identify its internal Strengths (S) and Weeknesses (W)
and also examine external Opportunities (O) and Threats (T).
Strength , Weakness , Opportunity , and Therat are the four tools for a individual or
group or organisation to grow , improve and polish it‘s skill. Parle Product Ltd. Has
been highlighted below which covers all the criticality of the project :
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Strengths
• Parle Brand,
Weakness
• Dependence on retailers & grocery Stores for displaying diversified Parle Products on
shelf, induce impulsive buy.
Opportunities
• Diet biscuit,
Threats
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BCG MATRIX
The Boston consulting Group‘s portfolio matrix allows a firm to visually display
information about each of its. The BCG matrix has as its axes the market growth rate
(Broken into high and low growth) and the relative market share as compared to the largest
competitors (high and low relative market share).
The BCG matrix method is based on product life cycle theory that determine the product
portfolio of a unit which contains both high growth product & low growth product having 2
Dimensions: Market share & Market growth.
1. STARS:
A cash cow usually generates more cash than is required to maintain its market share. It is
in low-growth market but has a dominant market share. Profits & cash generation should
be high due to its Low growth, the investment needed to be Low to keep Profits High.
The products like krackjack, parle Marie, hide & seek comes under this category.
3. QUESTION MARK:
It has worst cash characteristics because of High demands & Low returns due to Low
market share makes the Co. to sell off & deliver cash.Products like CHOX, NIMKIN
KREAMS GOLD, PARLE 20-20, MONACO JEERA comes under this.
4. DOGS:
26
The term marketing mix refers to unique blend of Product, Place, Promotion & Pricing strategies
designed to produce mutually satisfying exchanges with a target market. Marketers have to
make many decisions in developing a marketing mix that will satisfy their target customers.
However, all of the variables that make up the marketing mix can be reduced to four basic
categories.
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4.1 PRODUCT MIX
PRODUCT LEVELS
• Core benefit- the core benefit of biscuits is to satisfy hunger of the consumer.
• Expected product- the consumers expect the product to have a good taste and also
give nutrition.
• Augmented product - parle biscuits increase a person‘s energy levels. This is not
always expected by the consumers and hence exceeds customer‘s expectations.
• Potential product- in the future parle could come up with different products such as
a snack which could be a combo of chocolate and biscuit.
Classification of products
Based on tangibility- Parle biscuits are tangible, i.e. one can see and touch them.
Based on functional life- Parle biscuits are consumables since biscuits form apart of food
and have a short life.
Based on price and quality- most of Parle biscuits such as Parle-G, Monaco, Krack jack
are mass products.
Consistency
It depends on 3 parameters.
1) Production
2) Distribution
3) Consumer end-user
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The production process of every parle biscuit follows some basic ingredients like wheat flour,
vegetable oil, inverted syrups, skimmed milk powder ,etc. then depending upon the product, extra
ingredients are added for e.g. in Monaco there might be an extra amount of salt put in to
give it that prominent salt taste, to hide & seek, chocolate chips are added. Etc. Parle uses
the same distribution channels for selling all its products under the biscuit category i.e. 1st ,
2nd& the 3rd level of the distribution channels.
The basic end use of all parle products remains the same – eating it‘s imply to satisfy
hunger. Products like parle-g may also be consumed for the intake of high glucose levels
for immediate strength & energy.
• Wheat flour
• Sugar
• Invert syrup
• Milk solids
• Salt
First of all the parle products buys RAW MATERIAL from the various suppliers and stored
into the store room. This raw material is then sent to laboratory for testing and after testing
only it is used for manufacturing. The raw material consist of Wheat flour, Sugar, Partially
hydrogenated edible vegetable oils, Invert syrup, Leavening agents (503 Baking powder)
Milk, solids Salt Emulsifiers (E 322 or E 471 or E 481) and Dough conditioners (E 223).
Such a mixture of raw material is taken and mixed into STEPHAN MIXTURE, which is
high power mixture machine.
Specially made for mixture of dough, from which the mixture is passed to molder called
ROTARY MOULDER. Through that molder approximately 10,000 come out in a minute.
Molder had 260 cups fitted in it which gives shape to the biscuits and an impression
embossed on it of parle-g.
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From rotary molder the dough is passed through a 260 feet long OVEN which is
approximately 340* c. In oven there are three stages to be followed -
1. Removal of moisture.
From oven the hot biscuits are placed on the COOLING CONVYOR, which is 260 feet
long and the biscuits continues to run on it for 5 to 7 minutes so that the biscuits become
cool and all the moisture that biscuits contain gets evaporated. And because of the above
reason the factory has ―S FLOW LAYOUT‖ in the factory.
The conveyor continues to move to COUNTING UNIT where biscuits are counted and seen
that it is going on properly or not. The conveyor continues till the biscuits reach the
STALKING TABLE at which the biscuits are packed in very orderly manner.
From cooling conveyor sum biscuits are diverted through AUTO FEEDING MACHINE to
another stalking machine where packing is done. From stalking table the biscuits are moved
on conveyor to MULTI PACK WRAPPING MACHINE were 16 biscuits are packed into a
regular parle g wrapper so that the weight of 16 biscuits comes up to 100 grams.
Then 24 packets of parle g biscuits are packed into a POLY BAG. And after packing it into
poly bag it is sent to SEALING MACHINE where it is sealed, Then it is sent to
CORRUGATE BOX SECTION in which 6 poly bags are placed and then the boxes are
kept on conveyor and sent to DISPATCH SECTION from where the biscuits are sent to
various places in India and all over the world.
All Parle products are manufactured under the most hygienic conditions. Great care is
exercised in the selection & quality control of raw materials, packaging materials & rigid
quality standards are ensured at every stage of the manufacturing process. Every batch of
biscuits & confectioneries are thoroughly checked by expert staff, using the most modern
equipment.
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INVENTORY
The inventory of the company that is the raw material is of a week. They store such inventory in
store room and then are sent for testing in laboratory and after testing it is sent for production.
SHIFTS
There is nearly 10,000 employees working in the company and are working in three
shifts.35,000 tons of biscuits are manufactured in a day of one particular product, and there
are such nine product manufactured in the factory.
WASTAGES
There are two type of wastage in factory. First is the waste materials fallen on ground.
Such waste material is of 1% which is marginal and acceptable which goes into total
waste. Second types of waste are the biscuit collected in tray of the multi-pack wrapping
machine, since these biscuit are broken they are not packed and sold to the customer but
collected in other tray and sold as broken pieces and sold for less price for cattle feeding.
LOOSE BISCUIT
On the stalking table one to two rows of baked biscuits are kept aside for selling it as loose
biscuits. They are normally assumed to be damaged biscuits but they are not damaged or
broken but company keep such loose packets of biscuits to sell it to the local people for
marginal rate of 33 Rs / kg.
The Stephan TK Mixer is an ideal component to fully automatically feed the down-stream
make-up equipment for biscuits, bread, rolls, buns, cake, sweet goods, cookies and crackers.
ROTARY MOULD
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COOLING CONVEYOR
The biscuit coming from stripping conveyor is directed on to the cooling conveyor to transfer
the heat in the biscuit to atmospheric air as it is passing on it. The total travel of the cooling
conveyor is 1.5 times the oven length. As per need specifications it need the travel of 150 ft.
LAMINATOR
Laminators are generally used for production of all kinds of hard biscuits, crackers and
cocktail snacks. With laminator it is possible to create a puffy pastry-like structure, which is
of decisive importance for the quality level and consequently for the sales success.
Laminating of Dough band improves the weight/volume ratio considerably.
The oven body consists of steel steam tight tunnel with equally divided zones of the
radiators. Stainless steel expansion joints are provided between these zones in order to
eliminate the expansion of the oven section. The inspection doors are provided for
inspection of the baking goods during the process.
Baking System:
The baking in the heating chamber takes place by radiators located under and above the wire
mesh band which distribute heat for uniform baking. The recirculation heating gases of these
radiators can be controlled for each zone separately. The closed recirculation system is
having slight vacuum so that combustion gases cannot enter into the baking chamber. The
ventilating fan is for circulation of the heating gases through the recirculation system and
thermostatically controlled burners provide the set temperature of the heating gases.
ROTARY CUTTER
The single head rotary cutter prints fine design on a continuously fed dough sheet and also
cuts out the individual dough piece. The unit powered by 1.5KW helical geared motor and
speed controlled by AC frequency controller. Drive is given to cutting roller only to
accommodate different sizes of dies in this machine.
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COUNTING UNIT
The counting unit counts and see that the biscuit making process is going fine or not, i.e. as
per the program set in the machine, program is set as per the grams required. Generally 16
biscuits are taken by the counting unit so that it leads to 100 grams.
This machine helps in wrapping the biscuits on the particular wrapper fixed on the roller of
the machine. The wrapper is feed into the machine and the sealing of the wrapper is done by
four heater roller, which is fitted on the machine. This heater roller heat up the plastic and
seals the packet. And at the same time the jaw cutter cut the packet on the cutting edge
marked i.e. as per the grams of the packet which is feed in the automatic machine (100 –
120, 120 – 150, 150 170, 170 - 190). The packets coming out from the wrapping machine in
a minute is programmed in computer and can be changed as per the need.
POLY BAGS
Poly bags contain 24 packets of parle g biscuits in one poly bag. There are 4 workers
employed on this section who take care of the work by putting 24 packets of biscuits in the
bag and forwarding it to sealing machine section.
SEALING MACHINE
The sealing machine has heater rod for sealing the poly bag in which 24 packet of biscuit
are placed, and it have a conveyer belt on other side so that when the poly bag passes
through the heater and get sealed then it is passed to the tapping machine.
TAPPING MACHINE
Six such poly bags are placed in one such corrugated box and the box is passed through the
tapping machine where are tapped and then sent through a long diversion conveyer belt.
This belt helps to transfer the box to the dispatch section directly. 36 boxes are arranged on
pallet in the dispatch section, from where they are transferred to the various dealers all over
the India and worldwide.
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Brand
The Parle Biscuit brands, such as, Parle-G, Monaco and Krack jack enjoy a strong imagery
and appeal amongst consumers. Be it a big city or a remote village of India, the Parle
name symbolizes quality, health and great taste. And yet, this reputation has been built, by
constantly innovating and catering to new tastes. This can be seen by the success of new
brands, such as, Hide & Seek and Hide & Seek ,Milano.
Product Strategy New Old New Brand Name Old Parle follows both line extension and brand
extension for its products .For a product like Parle-G it followed line extension with the
introduction of Parle-G milk Shakti and Parle-G magix which has 2 flavors- choco and cashew.
Initially Parle used to produce only confectionaries. Parle followed brand extension with the
introduction of products in the biscuits and snacks category. In this way, by concentrating on
consumer tastes and preferences and emphasizing Research& Development, the Parle brand
grows from strength to strength . Line Extension Brand Extenstion Multi Brand New Brand
34
Parle as a company has reached the maturity stage in its products life cycle; since products
such as parle-G, parle Monaco, parle Krack jack which form a major part of parle products‘
sales have captured most of India‘s market. But for its premium biscuits parle hide and seek
and parle hide and seek Milano the products are in the growth and introduction stages
respectively. Parle hide and seek was introduced in 1998 with flavors such as mint, orange
and chocolate. But it did not really succeed in capturing the consumer‘s attention. So after a
few years it was re launched with just one flavor i.e. chocolate flavor with new packaging.
After the re-launch it has started gaining attention of its potential buyers and hence 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‘s good-day choco nuts. 35
The time spent by a customer for picking up a product from a retail outlet is a few seconds;
therefore a package should appeal to a customer within such a small interval of time. In this,
both packaging & labeling play an important role in attracting customers both visually&
psychologically.
Packaging:
• For Parle G: Parle G was initially recognized by its iconic white and yellow stripped
wax paper wrapper with the baby face on it. Many competitors have tried to sell
their lower quality products by copying the packaging, trying to sell their biscuits as
Parel-G;
Parle-Jee etc. Due to increasing competition Parle G now uses plastic wrappers
for its packaging. Parle-G comes in 8 different sizes: 25gms, 44gms,93.5 gms, 231gms,
340.5gms, 462gms, 577.5gms and a 1kg pack just for Rs.30 which is not usually offered
by other brands.
• Parle Hide & Seek: It initially came out with 3 variants: Mint, Orange & Chocolate
which wasn‘t accepted by the masses. However, the production of Mint & orange
flavors was stopped. Chocolate is the only flavor that is running successfully since it
is India‘s first chocolate chip biscuit. . Hide & seek biscuit's current packaging has
been modified along with lower prices & better affordability rates. Thus there is a
change in size of the product which is prevalent in the ads. One of the
advertisements shows movie actor, Hrithik Roshan walking with a pack of hide&
seek biscuits in the back pocket of his jeans emphasizing on the small size of the
product.
• Parle hide & seek Milano: This product of Parle has a flashy purple coloured
packing which attracts customers with the whole look of Italian chocolate chip
cookies.
.
4.2 PRICING MIX
The Parle marketing philosophy emphasizes catering to the masses. It constantly endeavors
at designing products that provide nutrition & fun to the common man. Most Parle offerings
are in the low & mid-range price segments. This is based on its cultivated understanding of
the Indian consumer psyche. The value-for-money positioning helps generate large sales
volumes for the products.
Parle G has adopted the Market Penetration strategy i.e. low price along with capturing of a
large market Also they focus on low prices and provide good quality products at the same
time, which means it uses the value pricing method. This benefits Parle G by having a
competitive edge in terms of large market share which is around 40%: both rural and urban
presently.
For setting the price of Parle hide & seek biscuit, a survey was taken in the urban &semi-
urban markets; on the basis of which hide & seek was introduced. It was found that the
potential consumers were ready to pay a premium price for an innovative product like
chocolate chip biscuits. Thus, Parle adopted market skimming where the product is high
priced and also of high quality. It includes the cost of chocolates, packaging & other
processing cost. All these show customer status, which is also one of the reasons for parle
hide & seek‘s high price.
A separate example for explaining the pricing strategy of Parle is its product Parle Creams
For this product Parle uses going rate method only as a reference rate. In this case, Parle
Creams were introduced after Britannia‘s Cream Treats with similar variants but at Rs.5 per
packet of biscuit and not Rs.10 like that of Britannia‘s cream treats.
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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 most remote
places and in the smallest of villages with a population of just 500.
Level 2- Since it‘s an FMCG product this channel exists for customers scattered
throughout the country.
Level 3 - Mass consumption & suitable for national & international coverage. For e.g.
Parle‘s international operations consist of serving markets in the Middle East, Africa, South
America, Sri Lanka, Australia and North America for which the 3 level distribution channel
exists.
Parle has a multi-channel marketing system since it uses more than two marketing channels
to reach all its customer segments.
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The marketing mix tools used by Parle are Sales promotion, Advertising, and Public
relations.
Sales Promotion
Parle uses the Sales force promotion tool for all its employees. Every year it holds day
fairs at branded venues where games and fun events are organised for the employees of
Parle and their families; where Parle products are give away prizes.
Advertising
Parle-G started being advertised in the 80's. It was advertised mainly through press ads. The
communication spoke about the basic benefits of energy and nutrition. In1989, Parle-G
released its Dadaji commercial, which went on to become one of the most popular
commercials for ParleG. The commercial was run for a period of 6 years. Parle-G grew
bigger by the minute. Be it the packs sold, are as covered or the number of consumers. It
became a part of the daily lives of many Indians. It wasn't a biscuit any more. It had become
an icon. The next level of communication associated the brand with the positive values of
life like honesty, sharing and caring.
The year 2002 went down as a special year in Parle-G's 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 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 -Animation. 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 the retail outlets. Another
campaign that was launched by Parle for Parle-G was - ‘G‘ maane‘GENIUS‘‘. For this a
series of ads were shown in which a little kid eats Parle G and tricks the wise and
experienced people.
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Just a few months back a reminder TV commercial was launched for Parle-G where the
product is being called ‘hindustan ki takat’ . Most of the Parle-G TV commercials tell us
that brand awareness is being done by capturing consumer emotion. Heavy promotion plays
a major role in creating brand awareness. Such is the case of Parle hide & seek biscuit‘s
television advertisements. The ads of parle hide and seek are portraying actor Hrithik
Roshan. This tells us that the product is being promoted by celebrity endorsement to
increase awareness of this product and help capture the consumers‘ attention.
Public Relations
Parle has done the following for enhancing public relations: In the year 1997, Parle-G
sponsored the tele -serial of the Indian superhero, Shaktimaan that went on to become a
huge success. The personality of the superhero matched the overall superb benefits of the
brand. Parle extended this association with Shaktimaan and gave away a lot of merchandise
of Shaktimaan. 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 amajor consumer.
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. There were over 5 lakh
responses and of that, over 300 dreams were fulfilled. Dreams that were fulfilled ranged
from trips to Disneyland at Paris &Singapore; meeting their favorite film star Hrithik
Roshan; free ride on a chartered plane; 20 scholarships worth Rs 50,000; a special cricket
coaching camp with the Australian cricketer - Ricky Ponting; etc.
Golu Galata contest - In Tamil Nadu, traditionally, women decorate various dolls made
of clay during Navaratri celebrations by setting up 7-9 steps. This display is well decorated
and friends and relatives are invited to witness the same. Through a detailed research, Parle
found that due to time pressures, this tradition is slowly dying and is getting restricted to a
select few households. Thus, to revive the fading event, Parle had introduced the novel
promotion called Parle Golu Galata contest in 2005. After the encouraging response and
resounding success of the
2005 Golu Galata contest, in 2006 Parle Products Pvt. Ltd took the contest to Chennai,
Madurai,
Trichy, & Kumbakonam. (Golu means Doll & Galata means Dhammal.)
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CONSUMER BEHAVIOUR
FOR PARLE-G:
In India it is a habit to have biscuits along with chai or tea - Parle G is referred to as
"biskut" in rural areas - thus when asked for biskut to a shopkeeper it simply means Parle-G
biscuit in rural areas. Understanding consumer behavior is tough. The study of consumer
behaviour includes the knowledge about the consumer, his buying motives & buying habits.
Keeping all this in mind, the factors influencing the buying behaviour of consumers are:
Parle-G being a consumable product is not influenced by factors like cultural factors. As
shown above, social factors are further sub divided into 3 parts namely reference groups,
family & social role & status.
1) Reference Group
People, especially kids are always influenced by the people around them. They are
influenced by friends, relatives, family members specially elder siblings, etc. so if they see
anyone around them having parle-G biscuit, they too want to eat it.
2) Family
In his case also, if it‘s a usual habit of the family members to have pale-G with tea or
coffee, the kids in the growing stage or any new member joining the family for tea will
form a similar habit or the later will be offered the same biscuit.
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PERSONAL FACTORS
The factors whose intensity differs from person to person are together termed as personal
factors. They are as follows: -
1. AGE
Parle-g is consumed maximum by the kids in the age group of 5-10 years i.e. the growing
age group. Kids, who have formed the habit of having Parle-G in their early stages of life,
continue this practice even after growing up. They continue their consumption of Parle- G
even after they grow up.
2.OCCUPATION
The buying behaviour of the consumer is influenced also by the occupation he or she belongs to.
In case of Parle-G, the purpose for buying the product varies from a person with a high post in a
M.N.C. to a poor laborer. For the executive employee, he may or may not buy the product. He
may buy a more expensive or an imported biscuit brand because he can afford it. Also he may
buy it only to be one of the many snacks available to him. On the other hand, a poor laborer
would buy a packet of Parle-G simply to satisfy his hunger. For him, it is not matter of choice or
luxury, but a necessity because it‘s the easiest & the cheapest he can get.
3.INCOME
Income of a person decides its core expenditure segment. If a laborer earns a fixed amount
& if a biscuit like parle-g which for sure ensures high level glucose content & immediate
energy regained, he would defiantly opt to buy a parle biscuit packet & not spend even that
minimal amount of Rs.4 on anything else .But since Parle-G is a low-priced, value for
money product a person‘s income does not really play a role in influencing the purchase of
the product. Consumers of all income groups do buy the product.
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PSYCHOLOGICAL FACTORS
1. Motivation
For Parle-G the main & the basic motivation which pulls consumers towards buying it is
simply hunger. This is what pulls the consumers towards the purchase of Parle-G. Also,
since biscuits are perceived as snacks, when a consumer is drinking tea he or she is
motivated to buy Parle-G at that time.
2. Perception
consumers believe Parle-G to be a good quality product which is cheap too. They also
perceive
it to be a great snack with tea.
SOCIAL FACTORS
1) Reference groups-
parle hide & seek is targeted at the youth. So for this product consumers are influenced by
their friends and siblings.
2) Status-
Parle hide & seek is a high priced product. So consumers in the higher income groups
would prefer to buy the product over other brands since it would be a matter of higher
status.
PERSONAL FACTORS
1) AGE
The advertisements of this product are such that people in the age group from 15 to 28 are
likely to be influenced to buy this product. But at the same time, since this product has been
endorsed by a celebrity (Hrithik Roshan) and since it is made of chocolate chips, children
are also likely to be major consumers.
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2) OCCUPATION
3) INCOME
Since it is a high-priced product; the potential consumers for this product are high income
earners. A person who is earning more is more likely to buy this product than a person who
earns comparatively lower income.
PSYCHOLOGICAL FACTOR
Perception
Consumers perceive this brand as ‘tasty and crispy‘ ...chocolate not very sugary. It is
perceived as a brand leader in this segment and some firmly believe that there is no
competitor while mostly people regarded ‘Britannia bourbon‘ as its main competitor ; very
few consumers know that ‘good day- choco nuts‘ is its competitor.
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The major competitors of parle products is Britaniya , Sunfeast, Priya Gold, cadburry, and
others local brand.
6.1 Britaniya
The company was established in 1892, with an investment of Rs.295. Initially, biscuits were
manufactured in a small house in central Kolkata. Later, the enterprise was acquired by the
Gupta brothers mainly Nalin Chandra Gupta, a renowned attorney, and operated under the
name of "V.S. Brothers." In 1918, C.H. Holmes, an English businessman in Kolkata, was
taken on as a partner and The Britannia Biscuit Company Limited (BBCo) was launched.
The Mumbai factory was set up in 1924 and Peek Freans UK, acquired a controlling interest
in BBCo.
Biscuits were in big demand during World War II, which gave a boost to the company‘s
sales.
The company name finally was changed to the current "Britannia Industries Limited" in
1979. In 1982 the American company Nabisco Brands, Inc. became a major foreign
shareholder.
Biscuits
The company's factories have an annual capacity of 433,000 tonnes. The brand names of
biscuits include VitaMarieGold, Tiger, Nutrichoice Junior,Good day, 50 50, Treat, Pure
Magic, Milk Bikis, Good Morning, Bourbon, Thin Arrowroot, Nice, Little Hearts and many
more. Tiger, the mass market brand, realised $150.75 million in sales including exports to
countries including the U.S. and Australia, or 20% of Britannia revenues in 2006. In a
separate dispute from the shareholder matters, the company alleged in 2006 that Danone had
violated its intellectual property rights in the Tiger brand by registering and using Tiger in
several countries without its consent. Britannia claimed the company found out that Danone
had launched the Tiger brand in Indonesia in 1998, and later in Malaysia, Singapore,
Pakistan and Egypt, when it attempted to register the Tiger trademark in some of these
countries in 2004. Whilst it was initially reported in December 2006 that agreement had been
reached, it was reported in September 2007 that a solution remained elusiv. In the meantime
since Danone's biscuit business has been taken over by Kraft, the Tiger brand of biscuits in
Malaysia was renamed Kraft Tiger Biscuits in September 2008.
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Britannia initiated legal action against Danone in Singapore in September 2007. The dispute
was resolved in 2009 with Britannia securing rights to the Tiger brand worldwide, and
Danone paying Rs220 million to utilise the brand.
6.2 ITC
In July 2003, ITC forayed into the Biscuits market with the Sunfeast range of Glucose, Marie
and Cream Biscuits. Sunfeast's brand essence connotes happiness, contentment, satisfaction
and pleasure. In a span of 9 years, Sunfeast has well-established presence in almost all
categories of biscuits and is also a key player in the pasta and instant noodles segments.
Sunfeast Biscuits straddle all segments of the market led by Dark Fantasy at the premium
end. High quality married with exciting innovations has helped drive this category. Dark
Fantasy Choco Fills has wowed the Indian consumer with its innovative centre-filled format
and high-quality packaging.
In addition, the launch of the Dream Cream range of biscuits in two exciting and innovative
dual cream formats further reinforces ITCs commitment to continuously delight the
consumer.
Surya Food & Agro Ltd. was incorporated in November 1992 and commenced its
commercial operations of manufacturing & selling of biscuits under brand ―Priyagold‖ in
October 1993. Over a period, we have established strong manufacturing capabilities and
have invested substantially in developing consumer preference for our products. trademarks
/ brands ―Haq Se Maango‖ & ―Priyagold‖ have emerged as one of the most powerful
brands in the FMCG sector. They are committed to invest in brands, manufacturing
capabilities, deliverables and distribution strength.
They have three plants located in Greater Noida, Lucknow & Surat. & also outsource some
of our requirements to another plant located in Hyderabad. capacities have reached 1,50,000
MT p.a., which along with strong brand building and distribution capabilities have enabled
us
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to command a sizable market share in the biscuit market despite competition from
well-established players in the industry.
After establishing foothold in biscuit industry, they continued to adopt strategy to identify
and commercialize profitable growth opportunities by leveraging established brand and
distribution network. Following this strategy, they diversified into manufacturing of ―fruit
juices‖ through wholly owned subsidiary ―Surya Fresh Foods Ltd.‖ in January 2006. The
manufacturing facility is located at Greater Noida, U.P. We have consciously invested in
creating markets for fruit juices and have established brands such as ―Fresh Gold‖ &
―Treat‖.
strategy of strengthening the brands especially the umbrella brand ―Priyagold‖ has resulted
in creating immense brand recall value. They are continuing with our effort of strengthening
the brand with a scientific approach, which will result in growth of customer base, price
premium, consumer loyalty which is expected to result in increased earning and ultimately
enhancing enterprise value of company.
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POSITIONING STRATEGY OF PARLE
The relevance and importance of conventional marketing, especially in the fast moving
consumer goods category, has slid down to give way for more aggressive market savvy
solutions that can revolutionise the way products sell these days.
While dealer productivity and market penetration are still important in the overall
marketing activity, the brand has to evolve and revolve in a different orbit "" it has to
reposition itself if it really wants to make a difference in the highly competitive market.
Positioning a product firmly in the consumer's mindset has been one of the major marketing
challenges that has enamoured many a marketing guru.
Consequent to the changing parameters, both tangible and intangible, if the products do not
respond and reorient themselves to the new environment, they run the risk of becoming obscure.
The point here is that however much financial wizardry an organisation might deploy,
however much R&D they get into, however much technology they enjoy, unless brand
building takes the front seat with clear-cut strategies that predispose the product behaviour,
the chances of creating a winner is quite remote.
The name of the marketing game is therefore repositioning your brand and thereby, the
competition. When the stakes are high and when you are not able to take the competition head-
on, the only way to survive and build on an equity is through repositioning.
The success of Shaktiman from Parle-G again has tremendous scope in retailing,
merchandising and event marketing. May be this was a deliberate strategy from Parle to
reposition its biscuits with a shakti(power) aura against the much hyped biscuit brands.
Parle-G eventually might use the Shaktiman umbrella strategy to replicate the success for its
other brands in these markets.
Small wonder then, that Parle-G, with its mass market appeal and distribution in over 4.25
lakh retail outlets, is today the number one biscuit brand in the world.
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VISION:-
To be the leaders in our business. We will stand apart from the competition by being the
first inthe market to innovate. MISSION:-
We will be the leaders in our business by maintaining high quality, introducing new and
innovative products, reaching every part of India, remaining customer-centric, constantly
upgrading our knowledge and skills. To provide consumers superior, wholesome agro based
food and drink brands through which parle can build a profitable; growth oriented
organization‖
FUNCTIONAL AREA:-
MANPOWER:- Parle group has a manpower strength of over 2500 employees, including
over 400 professionals.
TURNOVER:-
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Ans. Parle –G, Krack Jack, Monaco, Milk-Shakti, Hide N Seek , Fun Center, Cheeslings,
Jeffs, Marie Choice, Parle Magic, Monaco Bites etc.
Ans. We distribute product through salesman Whose supply products in nearby area. As per
customers order.
Ans. There used to be some problem due to imitation brands like, Parole G, Parale G, Parel G,
etc. But now people identify the brand very well. They recognise by the sweet girl‘s image on the
pack and the PARLE on it written in Red. It act as the logo. So, now this drench is cleared off.
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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 hadmadehugeprofit bymarketing
thereproducts in Indiaand inforeign countries.
It was concluded that Parle is the first preference of both the customers and retailers
(Organized and unorganizedboth)becauseofits priceandbrand image. TheParle Biscuit
brands,suchas,ParleG,Monaco, Krackjack,MarieChoice,Hide andSeekenjoya
strongimageryandappeal amongst consumers across theworld.Whichhas resulted into Parle-
G being the ―world‟ s largest selling biscuit".
The Parle name symbolizes quality, health and great taste. Constantly innovating and
catering to new tastes PARLE-Ghas 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 brandimageforlongtime.
Parle Agro is a leading Indian Food and Beverage Company, the only Indian transnational
gaint with the past experience of having successfully launched leading soft drinks like
Frooti, Appy, and Bailley´. Toady its brand portfolio consists of No.1 brands like frooti
along with Appy, and Bailley.
CASE STUDY
In 2009, Parle Products Pvt. Limited (Parle), a leading Indian manufacturer of biscuits, had the
honor of producing the best-selling brand of glucose biscuits in the world by volume, Parle-G.
Parle-G biscuits sold for about U.S. $ 1 per kilogram, and as very few processed and ready-to-eat
products were available at that price, Parle-G was closely associated with the offer value for
money (VFM). Impending problems in this brand category for Parle was the fact that the prices
of raw materials from the two main raw materials for the Parle-G biscuits (which account for 55
percent of their value inputs) rose enough in the past 18 months to reduce the field from 15
percent to less than 10 percent. Pressure to restore fields led Parle to consider price increases
more previous attempt caused a sharp decline in sales. Parle later turned increase production costs
by reducing the weight of the package, franchise production, reducing supply chain costs
and reduce packaging costs. Parle could not ignore the deep- rooted perception of VFM in
the development of short-and long-term marketing plans to maintain the success of Parle-G
in the market. These plans are required to address segmentation, positioning, and changing
demographics Indian when considering potential rise in Parle-G biscuits.
Leading biscuit and confectionary-maker Parle Products is all set to extend its promotional
campaign for its flagship brand Parle G into the digital arena. With this, the campaign enters
into its next phase and ropes in renowned author Ruskin Bond as a guest blogger to write
for its microsite – TheFutureGenius.com. The edutainment site, TheFutureGenius.com is an
interactive portal where parents can interact and share videos, audio clips and documents to
showcase their child‘s talent.
THANK YOU