Brand Penetration

7/30/2019 Brand Penetration

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TABLE OF CONTENTS

S.NO CONTENTS

1. Executive Summary

2. Statement of the Problem

3. Objectives of the Study

4. Limitations of Study

5. Introduction of Sector and Industry

6. Introduction of organisation

7. Analysis on unorganized retail outlets

8. Analysis of organized retail outlets

9. Analysis on Consumer Behaviour

10. SWOT Analysis

11. Findings

12. Recommendations and Suggestions

13. Conclusion

14. Appendix

15. Bibliography


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Executive SummaryThe report is an earnest endeavor made to understand the present market

scenario in biscuits captured by the Parle and the other competitor brands viz.,

Britannia, Priyagold, ITC.

The researchers were required to see the coverage by Parle Products 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 biscuitsand the confectionaries.

During the course of study the researchers visited around 410 unorganized

retail stores and 30 organized retail stores and analyzed all major brands of

biscuits available as well as studied the brands, which are most preferred

among the retailers.

The study encompasses the penetration of the existing Parle products (biscuits

and confectionaries) and the market potential for the new products like GoldenArch, Nimkin, Monaco Funion, Melody softee, Mazelo and Imli Bite.

Their motive was to study the working of the distributors in Jaipur market.

They have mentioned the problems and the loop holes in the Parles

distribution system and the promotional tools, which they have found during

the course of the study and recommended various corrective measures for it.

Their study also comprises the comparative analysis between organized and

unorganized retail stores in terms of brand availability with the help of

hypothesis testing.

They also studied the behaviour of consumers about their preferences for

biscuits, candies and their overall buying behaviour with the help of

questionnaire.


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Statement of the Problem

To analyze the brands of Parle Products in unorganized retail stores:

1. As compared to competitors (ITC, Britannia & Priyagold).

2. As compared to organized retail stores.

Objectives of the Study

1. To find out Parle Coverage in various areas of Jaipur.

2. To check the Brand availability of the company products at different

stores.

3. To compare the Brand with its competitive Brands like ITC, Britannia,

Priyagold in terms of coverage, number of brands available and monthly

sales.

4. To analyze that which type of biscuits and candies are most preferred

and demand by the customer. It was done by asking storekeepers as well

as customer.

5. To analyze the availability of new Parle products launched in the

market.

6. To compare the organized retail stores with unorganized retail stores in

terms of brand availability.


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Reference Period

This study is conducted for the period of 45 days starting from 15 th of JUNE

2009 to 30 th of JULY 2009.

PROJECT METHODOLGY


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Research Type :

EXPLORATORY RESEARCH

EXPLANTION : The study was conducted by Parle Products Pvt. Ltd in 6-7areas of Jaipur mentioned below (source list) for the first time regardingmarket review and comparative analysis between unorganized andorganized retail stores.. Thus it is an exploratory type of research.

Sample Design

A sample design is a definite plan for obtaining a sample for a given

population. It refers to a techniques or procedure adopted in selecting items for

the sample.

Sampling:

Further, the design that has been adopted for the study of the given topic is

CONVENIENT SAMPLING.

EXPLANATION: During the course of the study we visited a no. of stores

that were scattered all over Jaipur (source list mentioned below). Apart from

this we had no written record of the number and names of the stores in the city.

It was very difficult to tabulate a record of all the retailers and wholesalers

present in the city and then carry out our study, in the short span of time that

was allotted. As a result we had to select the retailers according to our

convenience. We went to the areas and surveyed all shops that could possibly

be approached.


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The following is the sample design that has been adopted for the study.

1. Population :- Finite(Jaipur)

2. Sampling Unit :- Areas of Jaipur 3. Source list :-

Unorganized retail stores (Areas):

a. Mansarover

b. Vaishali Nagar

c. Chitrakoot

d. Sodala (Ajmer Road, Hatwara road, Ram Nagar)e. Raja park

f. Adarsh Nagar

g. Janta colony

h. Sethi colony

i. Bapu Nagar

Organized retail stores:

a. Spencer s Retail

b. Reliance Retail (Reliance Fresh)

c. Aditya Birla (More)

d. Vishal Mega Mart

4. Sample size:- A total of 410 unorganized retail stores with 30 organized

retail stores and 100 consumers.


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Tools and techniques for Data Collection

Tools and techniques for:

1. Primary Data :- The researchers collected primary data during the

course of research period with the help of the questionnaire that was

designed for the storekeepers as well as consumers to collect the

information that was required to carry out the research.

2. Secondary Data :- Secondary data was collected from books, articles,

Internet and previous research papers that had been conducted by the

company representatives and officials.

Tools and techniques of Analysis

Simple statistical tools and techniques like average, ratios, pie charts, tables

and graphs in addition to hypothesis testing (z-test, for difference between

proportions) & factor analysis method are used to analyze the data.


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Limitations of the Study

1) The study was conducted in 45 days that is not enough for such a vast

topic.

2) It was difficult for the storekeepers to pinpoint the sales of a particular

brand in both organized and unorganized retail stores.

3) No proper data was available about the stores in the city.

4) There were not a big number of organized retail stores in Jaipur to carry

out the research more efficiently.

5) As the nature of research was exploratory so it was difficult to cover

each and every retailer.

6) Many retailers dont express their original perception and views becauseof biasness.


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INTRODUCTION

SECTOR

Fast moving consumer goods (FMCG), are products that are sold quickly at

relatively low cost, have a quick turnover and get replaced within a year.

Though the absolute profit made on FMCG products is relatively small, they

generally sell in large quantities, so the cumulative profit on such products can

be large. Examples of FMCG generally include a wide range of frequently

purchased consumer products such as toiletries, soap, cosmetics, teeth cleaning

products, shaving products and detergent, as well as non durables such as

glassware, light bulbs, batteries, paper products and plastic goods. FMCG also

includes pharmaceuticals, consumer electronics, packaged food products and

drinks, although these are often categorized separately. Some of the best known

examples of Fast Moving Consumer Goods companies include Clorox,

Colgate-Palmolive, General Mills, H.J. Heinz, Reckitt Benckiser, Sara Lee,

Nestle, Unilever, Proctor and Gamble, Coca Cola, Carlsberg, Kimberly-Clark,

Kraft, Pepsi, Warburtons, Wilkinson and Mars.Scope of the sector : The Rs 86,000-crore Indian FMCG sector is expected to

maintain its double-digit growth for the quarter ended March 31, 2009. Being a

sector led by domestic growth, it is least likely to be affected by the financial

meltdown. The FMCG industry is set to grow 20-30 per cent in 2009-10, up

from 10-20 per cent in 2008-09. The growth would be driven by the launch of

new products and increasing rural consumption. A well established

distribution network, intense competition between the organized and

unorganized segments characterizes the sector.

The introduction of goods and services tax (GST) in Union Budget 2009 by

April 1, 2010, may help FMCG companies save on distribution costs, remove

multiple taxes and bring down prices in the long run.

Though the hike in minimum alternate tax from 10% to 15% would adversely

hit companies with factories in excise-free zones, they rule out increasingconsumer prices.


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Retail sector: Retail became a buzz word in India before recession; in fact the

word 'booming' was found only attached to this sector. But as recession took

its toll, 99% of sectors went for a toss including retail. The market has just

started picking up and India is reclaiming to regain its position in the retail

segment.

In a recent report, the authors of AT Kearney's 2009 global retail development

index said that India's largely unmodernised retail sector remained attractive to

both domestic and international retailers, in spite of government regulations

that prevent 100 per cent foreign ownership of retail stores.For most of the retailers like Pantaloon, Vishal, Cantabil and Priknit, retail still

continues to buzz everywhere in India with many foreign brands coming in,

whether it's the largest US retailer Wal Mart which opened its first store, last

month, in Punjab, in a joint-venture with Bharti Enterprises, Or Tesco and

Carrefour which are also planning joint venture stores.

Even as corporates are expecting the new Congress-led United Progressive

Alliance Government at the Centre to open up fully FDI in retail sector, a

Parliamentary Committee has argued for a total ban on even the domestic

heavyweight corporates from entering retail trade in grocery, fruits and

vegetables.

Also, there is expectation the forthcoming Union Budget may spell out a policy position. Retail giant Ikea holding back its plans to enter India is being bandied

about as a setback for the country. There is also talk that investments and flow

of technical knowhow could be hampered if the sector is not opened up to

overseas.investors.

But over all if we see, the issue to be debated shouldn't be whether FDI in

organized retail is desirable, but what its impact would be on small retailers in


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the unorganized sector, and whether we have policies to protect the vulnerable

sections.

It was meant to revolutionize the way we shopped, spent, consumed and lived.

With its Retail Revolution, India was making an indelible mark on the global

retail map. The billion plus consumers and steady economic development were

fuelling the growth of Indias $ 25 billion organized retail market. And the

Indian blue chip companies started to go the retailing way Bharti, Reliance,

Tata, Mahindra, Aditya Birla Group and RPG all were making the retail

foray. As the sector grew at the rate of 30-40% per annum over the last decade,

India became the preferred destination for global brands and retail chains tocash in. But with the Q3 growth for FY2008-09 at 10-12% as against 35% of

the previous year accompanied with closures of Indian retailers, pulling out

from certain cities and the Subhiksha saga unfolding, the dismal story of

revolution is now unraveling.

Organised Retail Sector: It was meant to revolutionize the way we shopped,

spent, consumed and lived. With its Retail Revolution, India was making an

indelible mark on the global retail map. The billion plus consumers and steady

economic development were fuelling the growth of Indias $ 25 billion

organized retail market. And the Indian blue chip companies started to go the

retailing way Bharti, Reliance, Tata, Mahindra, Aditya Birla Group and

RPG all were making the retail foray. As the sector grew at the rate of 30-

40% per annum over the last decade, India became the preferred destination for global brands and retail chains to cash in. But with the Q3 growth for FY2008-

09 at 10-12% as against 35% of the previous year accompanied with closures

of Indian retailers, pulling out from certain cities and the Subhiksha saga

unfolding, the dismal story of revolution is now unraveling.


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INDUSTRY

Indian Biscuit Industry: According to Indian Biscuit Manufacturers'

Association (IBMA), after stagnating growth of about 14 per cent in 2006-07,

biscuit industry grew by 17 per cent in 2007-08 due to excise duty exemption

on biscuits with MRP up to Rs 100 per kg, Indian Biscuit Manufacturers

Association. ). Therefore, Indian biscuit industry has demanded a reduction in

value added tax to four per cent from the current level of 12.4 per cent on

biscuit, so that the growth rate can go up to 20 per cent.

The Rs 8,000-crore industry hopes that the biscuit segment will have over 20

per cent annual growth in the next five years if VAT is reduced to four per cent

India, world's third largest biscuit producer after the US and China, produces

nearly 19.5 lakh tonnes annually and the states, however, have imposed the

VAT at 12.5 per cent, which is very high.

According to IBMA, organised sector produces around 55% and the balance

45% being contributed by the unorganised bakeries. In terms of volume biscuit

production by the organised segment in 2006-07 is estimated at 1.47 million

tonnes. Per capita consumption of biscuits in the country is only 1.8 kg, as

compared to 2.5-5.5 kg in the South Eastern countries, and in Europe and US,

respectively.

In India per capita consumption of biscuits is estimated at a low 1.9 kg,

reflecting the huge potential for growth of the industry. Over 900 million

Indians buy and eat biscuits with varying frequency in any year.

The penetration of branded product in this segment is quite significant, and is

valued at Rs 2,500-3,000 crore. None of the other wheat-based segments is as

developed as the biscuits industry. The biscuit segment has developed with

large markets of mass consumption covering over 90% of the overall potential

market. The unorganised sector accounts for over 50% of the market. The

market has been growing at a CAGR of 6-7% pa.


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Biscuit is a hygienically packaged nutritious snack food available at very

competitive prices, volumes and different tastes. According to the NCAER

Study, biscuit is predominantly consumed by people from the lower strata of

society, particularly children in both rural and urban areas with an averagemonthly income of Rs 750.

Bread and biscuits are the major part of the bakery industry. Biscuits stands at a

higher value and production level than bread.

India Biscuits Industry came into limelight and started gaining a sound status in

the bakery industry in the later part of 20th century when the urbanized societycalled for readymade food products at a tenable cost. Biscuits were assumed as

sick-man's diet in earlier days. Now, it has become one of the most loved fast

food product for every age group. Biscuits are easy to carry, tasty to eat,

cholesterol free and reasonable at cost. States that have the larger intake of

biscuits are Maharashtra, West Bengal, Andhra Pradesh, Karnataka, and Uttar

Pradesh. Maharashtra and West Bengal, the most industrially developed states,

hold the maximum amount of consumption of biscuits. Even, the rural sector

consumes around 55 percent of the biscuits in the bakery products.

The annual production of biscuit in the organized sector continues to be

predominantly in the small and medium scale sector before and after de-

reservation.

Confectionary Industry

Production area

Besides the industrial areas in leading metropolis the bakery product &

confectionery are carried on small- scale basis also at household level.

Whereas, the confectionery industry has developed remarkably with the

international brand mingling with the domestic market toffees, chocolates

etc. produced at large scale in important industrial regions of the country.


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Growth promotional activities

In 1977- 78 Government reserved the confectionery bread and biscuit

manufacturing for small scale and restricted entry of large producers.

During the last 2 decades, small and unorganized players shared the growthin the industry. Currently, there are an estimated 2 million bakeries across

the country engaged in production of bread, biscuits and other products The

Indian confectionery market is segmented into sugar-boiled confectionery,

chocolates, mints and chewing gums. Sugar-boiled confectionery,

consisting of hard boiled candy, toffees and other sugar-based candies, is

the largest of the segments and valued at around Rs 2,000 crore.

The confectionery industry has a current capacity of 85, 000 tonnes, the

market is growing at the rate of 10-15% per annum. The estimated annual

production of bakery products in India is in excess of 3 million tonnes, of

which bread accounts for nearly 50% and biscuits 37% in volume terms in

the organized sector. The bakery sector in India is one of largest segments

of the food processing industries; annual turnover in value terms is

approximately $ 900 million.

Types

Chocolates, hard-boiled sweets, chewing gum and other products are a

major growth area. The bakery industry includes basic baked products like

breads, biscuits, cakes, pastries, rusks, buns, rolls etc.

The Confectionery Industry in India was a closely held business potential for

several decades in the past predominantly driven by cost factors and limited

market and consumer perceptions. Confectionery product being an impulse

generated demand exercise was more dependent on trade push and intermittent

consumer pull thereby resulting in very narrow spectrum of brand activity. The

retail and market penetrations even today continue to be in the rural and semi

urban and urban markets where bulk of the sales activity takes place through B

and C class outlets. Confectionery being a child-oriented product, it is largely


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sold by individual counts at the retail trade level. The potential child consumer

for this category of products in the past was largely influenced by the relevant

socio-economic factors and media explosions.


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Organization

Parle Products Pvt. Ltd.: A cream colored yellow stripped paper with a cute

baby photo containing 10-12 biscuits with the companys name printed with in

Red. 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 consumer good as these are money saver 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 company 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 brands 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

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

confectionary 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 & Seek chocolate chip biscuits

is a product of innovation and caters to a new taste, being Indias first ever

chocolate chip biscuits.

Apart from the factories in Mumbai and Bangalore Parle also has factories in

Bahadurgarh in Haryana and Neemrana in Rajasthan, which are the largest


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biscuit and confectionery plants in the country. Additionally, Parle Products

also has 7 manufacturing units and 51 manufacturing units on contract.

All these factories are located at strategic locations, so as to ensure a constant

output and easy distribution.

Brands

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 tasteand 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.

Biscuit goodies: Confectionary:

Parle-G GolGappa

Krackjack Classic Mint

Monaco Lite Mint

Monaco Funion Kismi

Kreams Orange Candy

Hide and Seek Mango Bite

Hide and Seek MilanoMelodyPoppins

Eclairs- 50 p

BourbonMelody Softe- 1Rs.

Kismi Bar

Parle MarieChox

Kacha Mango

Milk ShaktiMazeloImli Bite

Kismi Gold

Parle 20-20 Cookies Munch on snacks:


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Nimkin Musst Bites

Parle biscuits: Parle biscuits are linked with factors of power and wisdom

providing nutrition and strength. Parle biscuits are indeed much more than a

tea- time snack, they are considered by many to be an important part of their

daily food. Parle can treat you with a basket of biscuits which are not only

satisfying but are also of good and reliable quality. Parle biscuits cater to all

tastes from kids to senior citizens. They have found their way into the Indian

hearts and homes.

Parle G

For over 65 years, Parle G has been a part of the lives of every Indian.

From the snow capped mountains in the north to the sultry towns in the

south, from frenetic cities to laid back villages, Parle G has nourished

strengthened and delighted millions. Filled with the goodness of milk and

wheat, Parle G is not just a treat for the taste buds, but a source of strength

for both body and mind. Tear over a packet of Parle G to experience what

has nourished Generations of Indians since last sixty five years, making it

truly Hindustan Ki Taakat . Pack Sizes available: 16.5G, 38.5G, 60.5G,

82.5G, 99G, 209G, 313.5G, 418G, 825G

Krackjack


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The original sweet and salty biscuit is one of the most loved biscuits in the

country.

Its not just a biscuit, its the taste of relationships captured in a biscuit.

A little sweet and a little salty crafted in such a delicate and delicious

balance, you can never get enough of it. Have it anytime you like with

anything you like. Pack Sizes available: 75G, 170G, 240G

Monaco

Share the company of great taste anytime, anywhere with Monaco. A light

crispy biscuit sprinkled with salt, Monaco adds a namkeen twist to lifes

ordinary moments. Pack Sizes available: 75 G, 120 G, 240 G

Hide and Seek


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The ingredients that go into making this prized cookie are a well-guarded

secret. What is is the effect it has on those who eat it. A cookie with a

reputation for romance. Indulge in the sinful taste of Milano and

everything that follows it. Pack Sizes available: 25 G, 62 G, 100 G, and

200 G

Hide and Seek Milano

The ingredients that go into making this prized cookie are a well-guarded

secret. What is is the effect it has on those who eat it. A cookie with a

reputation for romance. Indulge in the sinful taste of Milano and

everything that follows it. Pack Sizes available: 65 G, 135 G

Kreams


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Orange: Tickle your senses with Parle Orange Kream The tangy orange

cream between two scrumptious biscuits makes for a real treat.

Age no bar! Pack Sizes available: 80 G, 90 G, 160 G, and 180 G

Parle Confectionaries: Right from candies to toffees, the sweet 'n' treat

category of the Parle product range is a genuine treat for every snack lover.

This category can satisfy one's taste and at the same time create a desire for

more. These confectioneries are a sheer delight to the taste buds and have a

universal appeal. Parle Biscuits and confectioneries, continue to spread

happiness & joy among people of all ages.

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 wont be too long before you find yourself asking the

age old question Melody itni chocolaty kyon hai?'

Mango Bite


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Need a quick escape from everything ordinary? Just pop a Mango Bite and

dive into a tropical mango paradise. Sit back, roll it around and enjoy one

wave after another of juicy mango treats that go on and on and on.

Orange Candy

Feel like eating an orange but dont want to be bothered with peeling one?

How about just unwrapping one then? Parle Orange Candy. This little

candy is a mouthful when it comes to the tangy, juicy taste of real oranges.

A bite-sized orange in a wrapper.

Kachcha Mango Bite


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The glider got copied and became a jet plane. Western hits got copied and

became Anu Malik songs. The typewriter got copied and became a

keyboard. Similarly, we have managed to copy the tangy flavour of raw

mangoes in a candy which is a little sour, a little sweet and certainly a little

mischievous. We call it Kaccha Mango Bite. It truly is a kacche aam ka

copy.

Kismi Toffee

Its everything that the Kismi Toffee Bar is, only smaller. Wrapped in the

distinct flavour of elaichi (cardamom) this toffee is sure to send your sweet

tooth on a joyride.

Golgappa


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Mention Golgappa to lovers of roadside snacks and watch them get

excited. Just the very memory of the sweet tangy taste of Golgappa is

enough to make the taste buds tingle, the mouth water and the senses to

party. Now imagine if you can have the Golgappa whenever and wherever

you want it, even as you are reading this, for example. It is possible withParle Golgappa. It captures the same magic of the popular street side

Golgappa in a Goli or a hard boiled candy, if you prefer. So pop in a

Golgappa and treat your senses to a fun filled trip, whenever and wherever.

Parle Snacks: Salty, crunchy, chatpata and crispy caters to the bunch of Parle

snacks. Parle snacks are a complete delight to the taste buds and can create the

desire for more and more. These snacks will not only satisfy your tummy but

will also sustain a feel in your mouth to associate you with the bond of Parle.

Musst Bites

Cheesy fluffy baked snacks that are so irresistible that you dont want to

share them. Available in mouthwatering Garden Spices, sweet and sour


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Tangy Tomato, tantalizing Chatpata Chat and heavenly garden spices, you

are going to have a hard time deciding which one you want for yourself.

MAJOR BISCUIT PRODUCERSS INRAJASTHAN

1) PARLE PRODUCTS PRIVATE LIMITED.

2) ITC SUNFEAST LIMITED

3) BRITANNIA

4) SURYA FOOD AND AGRO LIMITED (PRIYAGOLD).

PARLE PRODUCTS PRIVATE LIMITED

Many of the Parle products - biscuits or confectioneries, are market leaders

in their category and have won acclaim at the Monde Selection, since 1971.

With a 40% share of the total biscuit market and a 15% share of the total

confectionary market in India, Parle has grown to become a multi-million

dollar company. While to consumers it's a beacon of faith and trust,

competitors look upon Parle as an example of marketing brilliance. Parle G,

a premium glucose biscuit is the worlds largest selling biscuit.

A factory of these glucose biscuits is situated in Neemrana is producing

7000 metric tonnes every month. A list of premium quality biscuits and

confectioneries is produced and distributed across nations.

ITC LIMITED


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ITC is one of India's foremost private sector companies with a market

capitalization of nearly US $ 18 billion and a turnover of over US $ 4.75

billion. ITC has a diversified presence in Cigarettes, Hotels, Paperboards &

Specialty Papers, Packaging, Agri-Business, Packaged Foods & Confectionery,

Information Technology, Branded Apparel, Personal Care, Stationery, Safety

Matches and other FMCG products. ITC's diversified status originates from its

corporate strategy aimed at creating multiple drivers of growth anchored on its

time-tested core competencies: unmatched distribution reach, superior brand-

building capabilities, effective supply chain management.

BRITANNIA

By 1910, with the advent of electricity, Britannia mechanized

its operations, and in 1921, it became the first company east of the Suez Canal

to use imported gas ovens. Britannia's business was flourishing. But, more

importantly, Britannia was acquiring a reputation for quality and value. As time

moved on, the biscuit market continued to grow and Britannia grew along

with it. In 1975, the Britannia Biscuit Company took over the distribution of


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biscuits from Parry's who till now distributed Britannia biscuits in India. In the

subsequent public issue of 1978, Indian shareholding crossed 60%, firmly

establishing the Indian ness of the firm. The following year, Britannia Biscuit

Company was re-christened Britannia Industries Limited (BIL). Four yearslater in 1983, it crossed the Rs. 100 crores revenue mark.

SURYA FOOD AND AGRO LIMITED

The wondrous magical journey of the company Surya Food & Agro Ltd. began

in Oct. 1993 & since then The Researchers have been one of the leading

manufacturers of biscuits in northern India. Our brand PRIYAGOLD has been a perennial household favorite since then. On a profound level spread in

to western as well as southern India, the inevitable cycle of distribution

network has helped us to spread into western India as well. Our obsession is to

make the finest quality biscuits available to the consumers & our constant

endeavor is to provide our consumers, a palate to look forward to a taste &

flavor that is uniquely PRIYAGOLD.


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.ANALYSIS

After visiting the PARLE factory as industrial visit the researchers analyzedthat the best selling branded biscuit company offers its customers with large

variety of biscuits (parle-g, krack-jack, Monaco, hide and seek etc.),

confectionaries (mangobite, melody, poppins) and snacks (Musst bites)

It aims TO SERVE PEOPLE AND NATION

The privately owned self financed company provides motivation and

confidence to its staff and other related members by providing various facilities


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and organizing certain events. It has a very open work culture. The atmosphere

is so comfortable and relaxed that helps in increasing productivity and

efficiency. It lunches and outstation team-building exercises that augment inter-

personal relations and mutual understanding.

Parle has found its way into the Indian hearts and home. It spreads happiness

and joy among the people of all ages.

As one comes to visit their plant, they welcome them whole-heartedly and

cooperate with them in the best way they can. They are the strict followers of

Japanese culture.

1. Analysis of unorganized retail outlets

1.1 Coverage of the company

Table 1.1.1

BRAND Direct Indirect No CoveragePARLE 367 43 0

Chart 1.1.1


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Interpretation:

Parle covers all the retail outlets under study and 90% were under direct

coverage i.e salesman of Parle distributor (of that area) visits weekly on these

stores. Rest 10% outlets source the Parle products either from wholesaler or

any other retail outlet.

1.2 Categorization of retail outlets based on PARLE sales

Table 1.2.1

CATEGORY NO. OFOUTLETS % SHARE

CATEGORY ' A ' (No Coverage) 0 0.0

CATEGORY ' B ' (1-5000) 230 56.1


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CATEGORY ' C ' (5001-10000) 99 24.1

CATEGORY ' D ' (10001-15000) 33 8.0

CATEGORY ' E ' (15001-20000) 18 4.4

CATEGORY ' F ' (>20000) 30 7.3

Chart 1.2.1

Interpretation:-

The above pie chart shows the classification of retail outlets present in areasunder study. The categorization is made on the basis of monthly sales of Parle

products by the retailers and the whole sellers. It has been divided into 6categories mentioned above.There are no A category outlets as Parle covers all the Retail outlets under study whereas category B has highest share of 56% with 230 outlets and

most of total retail outlets fall under Category B & Category C (80%)visited by the Researchers here.


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It can be seen that only 7% outlets fall under category E i.e greater than20000 Rs

1.3 Visibility of PARLE products

For Biscuits:

Table 1.3.1BRAND (Biscuits) No. of shops Total % VISIBLE

Parle-G 410 410 100.0

Krackjack 385 410 93.9

Monaco 394 410 96.1

Monaco Funion 75 410 18.3

Hide&Seek 255 410 62.2Milano 85 410 20.7

Orange Kream 330 410 80.5Mango Kream 388 410 94.6Elachi Kream 393 410 95.9

Pineapple 381 410 92.9Chocolate Kream 377 410 92.0

Golden Arch 35 410 8.5

Nimkin 101 410 24.6Marie 198 410 48.3

Milk Shakti 185 410 45.1Bourbon 210 410 51.2

20-20 Butter 340 410 82.920-20 Cashew 332 410 81.0

Chart 1.3.1


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Interpretation:-Brands such as Parle G, Krackjack, Monaco, Orange Kream, Mango Kream,Pineapple Kream, Chocolate Kream, Elaichi Kream are visible in almost allstores (90-100 %) but brands such as Monaco Funion, Golden Arch & Nimkinwere not available in many stores.

For Confectionary:


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Table 1.3.2

BRANDS (Confectionary) No. of shops Total % VISIBLEGolGappa 258 410 62.9

Classic Mint 136 410 33.2Lite Mint 108 410 26.3

Kismi 222 410 54.1Orange Candy 300 410 73.2

Mango Bite 337 410 82.2Melody 352 410 85.9Poppins 222 410 54.1

Eclairs- 50 p 168 410 41.0

Melody Softe- 1Rs. 146 410 35.6Kismi Bar 165 410 40.2

Chox 155 410 37.8Kacha Mango 177 410 43.2

Mazelo 160 410 39.0Imli Bite 97 410 23.7

Kismi Gold 45 410 11.0Musst Bite 43 410 10.5


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Chart 1.3.2

Interpretation:-

The brands such as Orange Candy, Mango Bite & Melody have good

availability but Kismi Gold and Musst Bite are rarely available .


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1.4 New Products VisibilityTable 1.4.1

BRANDS(Confectionary) Available Not Available Total % VISIBLE

Nimkin 101 309 410 24.6

Golden Arch 35 375 410 8.5

Melody Softe- 1Rs. 146 264 410 35.6

Mazelo 160 250 410 39.0

Imli Bite 97 313 410 23.7

Chart 1.4.1

Interpretation:

The newly introduced biscuit brand Golden Acrh was available in only 8.5% retail outlets which is a very low figure. And Nimkin was present in only25 % outlets.It appears that demand for their confectionary brands is increasing as theywere present in considerable amount.


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1.5 Coverage with respect to competitors

Table 1.5.1

BRAND Direct Indirect No Coverage

PARLE 367 43 0ITC 308 21 81BRITANIA 305 27 78PRIYAGOLD 281 26 103

Chart 1.5.1

Chart 1.5.2

Chart 1.5.3


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Chart 1.5.4

Chart 1.5.5


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Interpretation:

Among the competitors only Parle covers most of the outlets (90%) directly,

rest covers approx. 70-75 % of outlets directly. Also ITC, Britannia &

Priyagold has no presence in approx. 20-25 % outlets but Parle full coverage.This is the strength of Parle company.

1.6 Brand availability with respect to competitors


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Table 1.6.1

BRAND No. of Brands Nil 1 to 5 6 to 10 11 to 15

PARLE 0 20 88 302ITC 81 227 85 17BRITANIA 78 193 99 40PRIYAGOLD 103 112 144 51

Chart 1.6.1

Chart 1.6.2

Chart 1.6.3


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Chart 1.6.4

Chart 1.6.5


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Interpretation:-

Parle in addition to a big share of direct coverage also has74% of outlets where

11 to 15 brands are present as compared to competitors viz ITC, Britannia &

Priyagold having 4%, 10% & 13% respectively. Priyagold although has less

coverage (75%) than competitors but where present were in good variety i.e

35% outlets has 6 to 10 brands compared to Parle (21%), ITC (21%), and

Britannia (24%).


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1.7 Sales comparison with competitors

Table 1.7.1

CategoryNo. of outlets(Parle)

Parle %SHARE

No. of outlets(ITC)

ITC %share

No. of outlets(Brit)

Britannia% share

No. of outlets

(Priyagold)

Priyagold%share

'A' (No Coverage) 0 0.0 81 19.8 78 19.0 103 25.1

'B' (1-5000) 230 56.1 194 47.3 179 43.7 225 54.9

'C' (5001-10000) 99 24.1 85 20.7 91 22.2 29 7.1

'D' (10001-15000) 33 8.0 31 7.6 23 5.6 39 9.5

'E' (15001-20000) 18 4.4 13 3.2 21 5.1 9 2.2

'F' (>20000) 30 7.3 6 1.5 18 4.4 5 1.2

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Chart 1.7.1

Interpretation:-

It can be seen that in most of the outlets (56%) Parle sales come under category

B as compared to other categories. Compared to competitors the company tops

Category B. Company share in Category is also far higher than that of

competitors. So, every company has sales of 1-5000Rs in 50 % outlets

1.8 Ranking of Biscuits

Table 1.8.1

Rank Glucose Cream Cookies Salty Sweet andsalty Marie

1 307 60 5 9 3 262 71 289 4 25 1 203 17 56 1 157 18 1614 14 2 0 119 97 1785 1 0 41 88 256 246 0 3 359 12 35 1

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Chart 1.8.1

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Interpretation:Rank one is dominated by Glucose biscuits, Rank two by Cream biscuits, rank

three by Marie and Salty biscuits both, rank four by Marie Biscuits but there is a

close match between salty and sweet and salty, rank five by Sweet and SaltyBiscuits and rank six by Cookies. So, lease demand is of cookies in unorganized

retail stores.

2. Analysis on organized retail outlets

2.1 Parle Sales in Organized Retail

Table 2.1.1

Category Sales No. of outlets(Parle)

No coverage 0 0

'A' 1-15000 1

'B' 15001-30000 10

'C' 30001-44999 11'D' >=45000 8

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Chart 2.1.1

Interpretation:-

It can be seen that 35% of outlets have Parle sales between 30,000Rs and 45,000

Rs which is a very good indication. And 27 % outlets have Parle sales above

45,000 Rs

2.2 Parle Sales with respect to competitors in organized retail outlets

Table 2.2.1

Category SalesNo. of outlets(Parle)

No. of outlets(ITC)

No. of outlets(Brit)

No. of outlets

(Priyagold)

No coverage 0 0 4 0 5

' A' 1-15000 1 5 2 5

' B ' 15001-3000010 20 5 18

'C' 30001-4500011 5 14 2

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'D' >45000 8 4 9 0

Chart 2.2.1

Interpretation:

In organized retail outlets Britannia beats Parle in Category C (30001-45000).

And this is because Parle products are cheaper as compared to Britannia and so

sales is high.

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2.3 Parle Visibility in organized retail outlets

Table 2.3.1

BRAND (Biscuits) No. of shops Total % VISIBLEParle-G 30 30 100.0

Krackjack 30 30 100.0

Monaco 30 30 100.0Monaco Funion 19 30 63.3

Hide&Seek 24 30 80.0

Milano 11 30 36.7Orange Kream 23 30 76.7

Mango Kream 29 30 96.7Elachi Kream 29 30 96.7

Pineapple 27 30 90.0Chocolate Kream 25 30 83.3

Golden Arch 10 30 33.3Nimkin 17 30 56.7Marie 30 30 100.0

Milk Shakti 24 30 80.0Bourbon 26 30 86.7

20-20 Butter 28 30 93.320-20 Cashew 28 30 93.3

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For Biscuits:Chart 2.3.1

Interpretation:

Parle-G, Krackjack, Marie, Monaco have 100% visibility. Among the cream

biscuits, Mango and elaichi were available in most outlets (97%). Parle 20-20

brands were also visible 93% of the outlets. Golden Arch and Milano were present

in very less number of outlets (37% and 33% respectively).

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For Confectionary:

Table 2.3.2BRANDS (Confectionary) No. of shops Total % VISIBLE

GolGappa 23 30 76.7Classic Mint 15 30 50.0

Lite Mint 13 30 43.3Kismi 19 30 63.3

Orange Candy 23 30 76.7Mango Bite 23 30 76.7

Melody 29 30 96.7Poppins 22 30 73.3

Eclairs- 50 p 21 30 70.0Melody Softe- 1Rs. 17 30 56.7

Kismi Bar 17 30 56.7Chox 12 30 40.0

Kacha Mango 22 30 73.3Mazelo 10 30 33.3

Imli Bite 7 30 23.3Kismi Gold 8 30 26.7Musst Bite 8 30 26.7

Chart 2.3.2

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Interpretation:

Melody tops (97%) among the confectionary brands in visibility factor. Hard

boiled candies such as Golgappa, Orange candy, Mango Bite, Poppins, Kaccha

Mango and clairs have good visibility (Approx. 73-77%). But Melody softee,

Kismi Bar have 57% visibility. Mazelo, Imli Bite, Kismi Gold have very low

visibility. Parle`s snack product Musst Bite is also having very low visibility of

27%.

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3. Analysis on Consumer Behaviour

3.1Type of biscuits preferredTable 3.1.1

Biscuit Preferred No. of consumers(out of 100)Glucose 38Salty 08Sweet and Salty 15Kreams 25Cookies 14

Chart 3.1.1

Interpretation:-

The above graph shows the types of biscuits preferred by the consumers. Glucoseis most preferred (38) by the consumers followed by kreams (25). Whereas Salty

(8) holds the last position

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4.1 Type of confectionary preferred

Table 3.2.1Candies No. of consumers

Hard boiled candy 34Eclairs 27Mint 9Bubble gum 12Bars 18

Chart 3.2.1

Interpretation:-

The above graph shows the types of candies preferred by the consumers. Hard

boiled candies like golgappa, kacha aam got the highest position followed by

clairs and then bars. Mint got the least preference.

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4.2 Preference between organized and unorganized retail stores to buybiscuits and confectionary

Table 3.3.1Type of Store SalesUnorganized retail (Kirana) stores 76Org. retail stores 24

Chart 3.3.1

Interpretation:-

The above pie chart shows the place from where people prefer to buy biscuits and

confectionary.

The study shows that 76% of people prefer to buy them from general kirana storeswhereas 24% people prefer to buy from organized retail stores like spencers, Big

bazaar or Reliance fresh.

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4.3 Preference for the biscuit company

Table 3.4.1Company No. of consumersParle 48Britannia 27Priyagold 7Itc 18

Chart 3.4.1

Interpretation:-

The above pie chart shows the preference of consumers for biscuit company. The

result shows that PARLE got the highest position followed by BRITANNIA and

then ITC. PRIYAGOLD got the least preference by the consumers.

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4.4 Preference to factors (Taste, Price & Brand image)

Table 3.5.1

Chart 3.5.1

4.5 Preference according to taste

61

Rank Taste Price Brand Image

Rank1 96 2 2Rank2 4 39 57Rank3 0 59 41


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Table 3.6.1

Rank Parle Britannia Itc

Priyagold

rank1 41 33 17 9rank2 33 39 19 9

rank3 21 16 28 35rank4 5 12 36 47

Chart 3.6.1

INTERPRETATION:- The scores of rank1 are multiplied by 1 , the scores of

rank2 by 2 and so on. And the sum of all the ranks for the given companies is

summed up to get the total scores.

As Parle has got the minimum total, therefore it can be infer that consumers prefer

Parle most when it comes to taste followed by Britannia and then ITC. Priyagold

is least preferred by the consumers.

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4.6 Preference according to price

Table 3.7.1Rank Parle Britannia ITC Priyagoldrank1 42 16 11 31

rank2 29 20 15 36rank3 17 33 27 23rank4 12 31 47 10

Chart 3.7.1

INTERPRETATION:- Here Parle is the prime choice of consumers when price

is given preference followed by Priyagold and then Britannia. ITC is least

preferred by consumers in the case of price.

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4.7 Preference according to brand image

Table 3.8.1Rank

Parle Britannia

ItcPriyagold

rank1 28 39 19 14rank2 32 36 21 11rank3 23 19 31 27rank4 17 6 29 48

Chart 3.8.1

INTERPRETATION:- As Britannia has got the minimum total, therefore it is

preferred most by the consumers followed by Parle and then ITC. Priyagold is

least preferred by the consumers in case of brand image.

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SWOT ANALYSIS OF PARLE PRODUCTS

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STRENGTH

1. Low price as compared tocompetitors

2. Sizeable market share in thecountry.

3. Offers variety of productsunder its brand.

4. Different sizes of packets areavailable.

5. An experienced team of salesand marketing executives.

6. Deep and effective coverage7. Largest distribution system .

WEAKNESS

1. Breakage of biscuits whiledelivering to retailers

2. No proper replacementsystem for broken biscuits toretailers

3. Improper and irregular supply.

4. Less share in Premium biscuitmarket.

5. Dependent on its flagship brand, Parle-G

6. Poor packaging in family pack of glucose biscuits.

7. Lack of schemes for retailersand distributors.

OPPORTUNITY

1. Rising demand for innovative packaging in packaged foods.2. Retaining loyal retailers or

wholesalers.3. Improving supply system for

established brands.4. Huge scope for some Parle

products in medical shops.5. Information revolution brought

about by the television.6. Good scope for snacks and

namkeens, if launched and properly promoted by Parle.

THREAT

1. Highly advertised brands suchas Britannia.2. Ever increasing competition

from multinationals and localcompanies.

3. Increase in sale of cheap local bakery products.

4. Emerging substitutes likewafers, snacks and toast.

5. Margin war among the major Brands

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FINDINGS

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After close study of the present market situation prevailing in the areas assigned

the researchers, following are the observations.

1. Availability of all the products is not uniform in all the towns. For instance,

the supply is not meeting the demand in particular areas or shops.

2. Golden Arch and Nimkin, newly launched products, have very less

availability.

3. Breakage problem in the Family packs of glucose biscuits is leading to the

decline in sales in this category.

4. Schemes, Discounts, offers, coupons etc. are not reaching to the retailers

and customers whereas Priyagold and ITC on the other hand are doing that.

5. Retailers and even wholesalers are not satisfied with the supply system of

Parle.

6. It was found that Parle (especially Parle- glucose) is most favored brand

and is sold most. Parle biscuits are the retailers and consumers prime

choice.

7. Very little range of Parle biscuits were visible in organized retail outlets.8. Musst bites is not accepted by the general masses due to its dissatisfying

taste.

9. Lack of marketing efforts for the promotion of new products like Golden

Arch, Nimkin.

10. Britania is emerging as major Competitor in the organized retail outlets.

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RECOMMENDATIONS & SUGGESTIONS

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1. Company should start a program for the loyal retailers and wholesalers to

reduce their complaints by providing timely supply and replacement. This

will help in increasing their sales.

2. The packaging of Parle Glucose biscuits (1/2 and 1 kilogram packs) must be improved for its better sales. The company should come up with double

packaging as people refuse to buy family pack biscuits with loose

packaging.

3. Salesmen should be properly dressed and should have good communication

skills to effectively promote the new products recently launched, by making

sure that the product reaches each and every retailer and also increase the

visibility of the products by arranging the product clearly on the shelf or rack and show its prominence.

4. To increase the number of stock keeping units {SKU} available in the

retailers store. Each salesman should stress the retailers to keep the

maximum SKUs and to maintain these SKUs throughout. With this, the

replacement of the damaged and expired biscuits should be prompt and

without any hassles, so that retailer can be saved from the loss of the

expired and damaged goods.

5. Company should adopt innovative packaging techniques, as they have their

own packaging unit as consumers are highly attracted towards new

packaging.

6. The company should take proper measures that the schemes and offers are

not gulped by the middlemen ,and that it benefits the retailers and

customers.

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After conducting the survey on 410 unorganized retailers, 30 organized retailers

and 100 customers, the researchers found that there is a bigger market for biscuits

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and hard boiled candy in unorganized retail stores if proper supply of goods

without breakage is there.

It was also concluded that Parle is the first preference of both the customers andretailers (Organized and unorganized both) because of its price and brand image.

Brand Parle G dominates the volume-dominated biscuit market. Even in todays

times when multinationals are beefing up their operations and trying to change the

dynamics of the market, Parle Gs numero uno position is unchallenged. Its

competitors have roped in superstars like King Khan and Sachin Tendulkar, but

Parle G has only gone from strength to strength. Brand Parle G is iconic and hasevolved over the years. Trust, relevance, affordability are its hallmarks, which

have withstood pressures from the hyper-competitive marketplace.

The Parle Biscuit brands, such as, Parle-G, Monaco, Krackjack, Marie Choice,

Hide & Seek and confectionery brands, such as, Melody, Poppins, Mangobite

enjoy a strong imagery and appeal amongst consumers across the world. Which

has resulted into Parle-G being the worlds largest selling biscuit".

The Parle name symbolizes quality, health and great taste. Constantly innovating

and catering to new tastes PARLE-G has built its reputation. This can be seen

from the success of its new brands such as Mazelo, Imli Bite etc.

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.

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Retailer Survey:

74

Locality : Name of Outlet :

Address :Contact No. :Parle Detail : Frequency : Weekly / Fortnightly

Brand Representation : YOUR OWNINNOVATION

Y / N Y / NParle-G GolGappa

Krackjack Classic MintMonaco Lite Mint

Monaco Funion KismiHide&Seek Orange Candy

Milano Mango BiteOrange Kream Round /Rectangle MelodyMango Kream Round /Rectangle PoppinsElachi Kream Round /Rectangle Eclairs- 50 p

Pineapple Round /Rectangle Melody Softe- 1Rs.Chocolate Kream Round /Rectangle Kismi Bar

Golden Arch ChoxNimkin Kacha MangoMarie Mazelo

Milk Shakti Imli Bite

Bourbon Kismi Gold20-20 Butter Musst Bite

20-20 Cashew Parler Sales Competitor Information: Direct Covrage : ITC: Britania : PriyaGold:Frequency : ITC: Britania PriyaGold:No. of Brand available ITC: Britania PriyaGold:Sales per Month : ITC: Britania PriyaGold::Which Category of Biscuits Sales More ( Give Ranking )Glucose Cream Cookies Salty Sweet & Salty Marie


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Consumer Survey:

NAME:-

AGE:-

PHONE NO.:- 1) How many members are there in your family?

Ans-

2) Who initiates the shopping of groceries in your family?a) Male members b) Female member c)children/teenager

Ans.

3) From where do you prefer to buy biscuits?a) Kirana storeb) Organized retail market (Like Reliance fresh, spencers, Big Baazar,etc.)

Ans. (If answer is b please mention the name of retail chain)

5)Which biscuits do you prefer?a)glucose b)salty c)sweet and salty d)Creams e)cookies

Ans.

6)What type of confectionary do you like the most?a)hard boiled candy b)eclairs c)mint d)bubble gum e)bars

Ans.

8)Which brand do you prefer most?a)PARLE b)BRITANNIA c)PRIYAGOLD d)ITC Sunfeast e) Other

Ans.

10)Rank the factors in order of preference when buying a biscuit??Taste Price Brand image

11) Rank the following out of 5 in respect to the given factors

FACTORS PARLE ITC BRITANNIA PRIYAGOLDTastePriceBrand image

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BIBLIOGRAPHY

I. KOTHARI .C.R.

Research Methodology, New Delhi

Vikas publishing House Pvt. Ltd.

II. KOTLER PHILIP & KELLER KEVIN LANE ,Marketing

Management ,Practice Hall ,New Delhi

III. Websites:

Google search: ( www.google.com )

wikipedia search: ( www.wikipedia.com )

www.parleproducts.com
http://www.google.com/http://www.wikipedia.com/http://www.google.com/http://www.wikipedia.com/

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