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PARLE

MIT School of Telecom 1

A Mini-Project Report

On

TO STUDY THE VARIOUS STRATEGIES ADOPTED BY

PARLE TO SUCCEED IN MARKET

SUBJECT: - STRATEGIC MANAGEMENT

(Semester III)

Taught by: - Prof. Rajashri Kadam

Submitted to

MAEERS

MIT SCHOOL OF TELECOM MANAGEMENT

BYSWAPNIL DILIP KHARCHE

Roll no. 092060

2009-2011

MAEERS MIT SCHOOL OF TELECOM MANAGEMENT

(MITSOT), PUNE


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INDEX

Contents Page no

1. History of Parle.2. History of Parle products .3. Company Profile ..4. Market Strengthen of Parle..5. Product life cycle (GROWTH phase).6. PRODUCT: Parle-G 7. PRODUCT: Hide N Seek8. PRODUCT: Melody.9. PRODUCT: Poppins.10. PRODUCT: Pineapple..11. PRODUCT: Mango..12. PRODUCT: Monaco 13. STP Analysis.14. Target Market Strategy.15. Positioning market Strategy..16. BCG Matrix..

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History of Parle

In 1929 a small company by the name of Parle products emerged in British dominated

India. The intent was to spread joy and cheer to children and adults alike, all over the

country with its sweets and candies. The company knew that it wouldnt be an easy task,

but they decided to take the brave step. A small factory was set up in the suburbs of

Mumbai, to manufacture sweets and toffees. A decade later it was upgraded to

manufacture biscuits as well. Since then, the Parle name has grown in all directions, won

international fame and has been sweetening peoples lives all over India and abroad.Apart from the factories in Mumbai and Bangalore Parle also has factories in

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

Confectionery plants in the country. Additionally, Parle Products also has 7

manufacturing units and 51 manufacturing units on contract. In 1929 a small company by

the name of Parle products emerged in British dominated India. The intent was to spread

joy and cheer to children and adults alike, all over the country with its sweets and

candies. The company knew that it wouldnt be an easy task, but they decided to take the

brave step. A small factory was set up in the suburbs of Mumbai, to manufacture sweets

and toffees. A decade later it was upgraded to manufacture biscuits as well. Since then,

the Parle name has grown in all directions, won international fame and has been

sweetening peoples lives all over India and abroad.

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

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

Confectionery plants in the country. Additionally, Parle Products also has 7

manufacturing units and 51 manufacturing units on contract.

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, which was supported by

POS and press communication. The children just could not get enough of Parle-G andShaktimaan.

In the year 2002, it was decided to bring the brand closer to the child who is a

major consumer. A national level promo - `Parle-G Mera Sapna Sach Hoga' was run for a

period of 6 months. The promo was all about fulfilling the dreams of children. There

were over 5 lac responses and of that, over 300 dreams were fulfilled.


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Dreams that were fulfilled ranged from trips to Disneyland at Paris & Singapore;

free ride on a chartered plane; 20 scholarships worth Rs 50,000; a special cricketcoaching etc

The year 2002 will go 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 is not just new to the audiences but one that involves a

completely new way of execution that is loved by children all over the world Animation

To make the brand much more interesting and exciting with children, it was decided to

launch a premium version of Parle-G called Parle-G Magic in the year 2002. Parle-GMagic is available in two exciting tastes -Cocoh andCashew. The year 2002 also

witnessed the launch of Parle-G Milk Shakti, which has the nourishing combination of

milk and honey, especially launched for the southern market.

ABOUT PARLE

Parle-G or Parle Glucose biscuits are one of the most popular confectionary biscuits in

India. Parle-G is one of the oldest brand names in India and is the largest selling brand ofbiscuits in India. For decades, the product was instantly recognized by its iconic white

and yellow wax paper wrapper with the depiction of a young girl, Sonam (calgary)

covering the front.

The company's slogan is popular among the Indian consumer population, reading G

means Genius. The name, "Parle-G", is derived from the name of the Indian rail station,

Vile Parle, where the Parle production factory is based.

"Parle-G" boasts of being the largest selling biscuit in the world. It enjoys 70 % market

share in India in the glucose biscuit category followed by Britannia Tiger (17-18%) and

ITC's Sunfeast (8-9). The brand is estimated to be worth over Rs 2,000 Crore (Rs 20

billion), and contributes more than 50 per cent of the company's turnover (Parle Productsis an unlisted company and its executives are not comfortable disclosing exact numbers).

Last fiscal, Parle had sales of Rs 3,500

crore (Rs 35 billion).


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HISTORY OF PARLE PRODUCTS

Parle-G is a one of the famous business groups of India. It has a large quantity of food

products. Parle-G products are very familiar to Indian kids. No Indian grown without

feed of Parle-G product. It is fact. A long time ago, when the British ruled India, a small

factory was set up in the suburbs of Mumbai city, to manufacture sweets and toffees. The

year was 1929 and the market was dominated by famous international 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 thefirst brands of biscuits to be introduced, which later went on to become leading names for

great taste and quality.

PARLE CORE VALUES

An in-depth understanding of the Indian consumer psyche has helped Parle evolve a

marketing philosophy that reflects the needs of the Indian masses. With products

designed keeping both health and taste in mind, Parle appeals to both health conscious

mothers and fun loving kids. The great tradition of taste and nutrition is consistent in

every pack on the store shelves, even today. The value-for-money positioning allowspeople from all classes and age groups to enjoy Parle products to the fullest.


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COMPANY PROFILE

FOUNDER: - Mr. MOHANLAL DAYALJI

SON: - Mr. NAROTTAM CHAUHAN

CMD: - Mr. KANTILAL CHAUHAN

STARTED: - 1928 AT Vile Parle

HEAD OFFICE: - Vile Parle

9 MOTHER UNITS:-

Vile Parle Bahadurgarh (Delhi)

Bhuj (Gujarat)

Banglore (2001)

Neemrana (Rajasthan)

Rudrapur (Uttaranchal)

Khanpoli (Maharashtra 2007)

Nashik (Maharashtra)

Sintargunj (Uttarkhand)

ABOUT PARLE-BANGLORE

Started in 2001

First started manufacturing KRACKJACK.

After 2 years they started

3 Biscuits i.e. Parle G, Hide & Seek and Krackjack

2 Confectionaries i.e. Melody and Chox

Having HACCP certificate (HACCP certificate = Quality Assured)

And also by DNV (Det Norsive Veritas) which is an Indian body.

ORGANISATIONAL STRUCTURE

It follows LINE AUTHORITY.

Decision is taken by the top level management

The raw material are inserted at the beginning and comes out after the products are

formed.


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40+ manufacturing units are CONTARCT MANUFACTURING UNITS.

MARKET STRENGTH

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

products. Parle biscuits & sweets are available to consumers, even in the most remote

places and in the smallest retail outlets. Parle has nearly 1,500 wholesalers, careering to

4,25,000 retail outlets directly or indirectly. A two hundred strong dedicated field force

services there wholesalers and retailers. Additionally, there are 31 depots and C&F agents

supplying goods to the wide distribution network. Parle constantly endeavor at designing

products that provide nutrition and fun to the common man. Most Parle offerings are in

the low and mid-range price segments. This is based on their understanding of the Indian

consumer psyche. The value for money positioning helps generate large sales volumesfor 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.

MARKETING MIX OF PARLE PRODUCTS LIMITED

Product strategy:

y Core benefit- the core benefit of biscuit is to satisfy hunger of the consumer.y Basic product- in the second level, the basic product is biscuits.y Expected product- the consumers expect the product to have a good taste and also

give nutrition.

y Augmented product- Parle biscuits increase a persons energy levels.y Potential product- in the future Parle could come up with different products.

Brand:-

The Parle Biscuit brands, such as, Parle-G, Monaco and Krack Jack enjoy a strong

imagery and appeal amongst consumers. Be it a city or a remote village of India, the

Parle name symbolizes quality, health and great taste. And yet, this reputation has beenbuilt, by constantly innovating and catering to new tastes.


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y Brand name strategy: -Parle follows company brand name strategy, since all itsproducts are named using the company name as a prefix such as Parle- Monaco,

Hide n Seek, Marie etc.

y Brand strategy decisions: - Parle follows both line extension and brand extensionfor its products. For a product like Parle-G it followed line extension with the

introduction if Parle-G milk Shakti and Parle-G Magic which has 2 flavors-Choc

and cashew. Similarly when it introduced any new product in the biscuit category,

it follows line extension.

Parle followed brand extension with the introduction of products in the biscuits and

snacks category. In this way by concentrating on consumers tastes and preferences and

emphasizing Research & Development, the Parle brand grows form strength to strength.


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PRODUCT LIFE CYCLE

GROWTH PHASE:-

Total Market 4000 Crores Total Market Growth 10 to 12 % per annum Parle holds 40% Market share Large unorganized sector Indians eat 0.48 KG and Americans 4kg Biscuits Growth phase

Parle-G Largest brand in world 65 % of Glucose Market 50 % to Turnover Large consumption in rural market 12 to 15 % Growth Low Margin High Volume

40

37

7

16

% Market Share

Parle

Britania

ITC

Others 1600

1420

280

640

Total Market(Crores)

Parle

Britania

ITC

Others

65

28

7

Glucose Market

Parle

Britania

others

50%

35%

15%

Turn over %

Parle G

Other Bis.

Confec.


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Parle G market leader in Glucose sector Britania leader in terms of value & in Mid & High Sec ITC fastest growing brand (7 %) Others: Priya gold, Bakeman, Nesle and Kwality.

Increased penetration level from comp. Increased Advert. Variants and new Innovative products High segment variants Celebrity Brand ambassadors

Glucose (L) Marie(M) Cream(H)

Parle Parle G Marie Dig. Hide & Sick

Britania Tiger Marie Gold Good Day

ITC Sunfeast.gl. Sunfeast M Butter Cream

Surya Priya Snacs Priya Gold Badam pista

0

1000

2000

Parl ITC

Advertising

Turnover

Advert.


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PARLE


Now we will see some of the products in details

PRODUCT: Parle-G

Parle-G or Parle Glucose biscuits are one of the most popular confectionary biscuits in

India. Parle-G is one of the oldest brand namesin India and is the largest selling brand of

biscuits in India. For decades, the product was instantly recognized by its iconic white

and yellow wax paper wrapper with the depiction of a young girl covering the front.

Many counterfeit companies have attempted to recreate and sell lower quality products of

similar names and virtually identical package design.

Ingredients:

Wheat Flour,

Sugar, Partially Hydrogenated Edible Vegetable Oils,

Invert Syrup,

Leavening Agents [ 503 ( Ii ), 500 ( Ii ) ],

Salt, Milk Solids, Emulsifiers [ 322 or 471 & 481 ( i ) ]

Dough Conditioners [223].

Contains Permitted Natural Color [Artificial]

Pack Size & Price:

For 19grams:Rs.1/-, For 44grams:Rs.2/-, For 93.5grams:Rs.5/-, For 231.5grams:Rs.12/-

Place: It is available in mostly every retail shop.

Promotion: It is relish a delectable experience as they melt in your mouth. PARLE-Gstag line is:

Hindustan Ki Taakat


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PRODUCT: Hide & seek

A choco biscuit hatflirts with your taste buds.Seek out the chocolate chips that aren'treally hidden. And relish a delectable experience as they melt in your mouth.

Product contains:

Ingredients:

Wheat Flour,

Cocoa Solids,

Sugar,

Partially Hydrogenated Edible Vegetable Oils,

Invert Syrup,

Leavening Agents [ 503 ( Ii ), 500 ( Ii ) ],

Salt, Emulsifiers [ 322 or 471 & 481 ( i ) ] and

Dough Conditioners [223].

Contains Permitted Natural Colour [150 b]

Added Flavor (Artificial).

Pack Size & Price:

For 25 grams: Rs.5/-



Place: - It is available in mostly every retail shop.

Promotion: - It is relish a delectable experience as they melt in your mouth.

Hide seek tag line is:

TASTY ITANA, KI DIL AAJAYEE.

It is also most famous tag line and it they make advertising through TV advertising and

signboards


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Product: - Melody

Caramel meets chocolate to yield an outcome nothing less than delectable. ParleMelody comes with an irresistible layer of caramel on the outside and a delightful

chocolate filling within. Product contains:

Ingredients:

Sugar,

Liquid Glucose,

Cocoa Solids, Partially Hydrogenated Edible Vegetable Oils,

Milk Solids, Starch,

Salt and Emulsifier (322).

Contains Added Flavors (Artificial).

Packaging: Melodys packaging is very attractive because of itschoco cream.

Price: - Rs.1/-


Promotion: - Tag line of MELODY is in every mouth of the people:

That is,

Melody Khao, Khud Jaan Jaao

Advertising: - Melodys advertisement is very famous. It helps to increase the sale ofproduct and make it popular. It is also helpful to make mark set leader at time of new

entrance.

Public Relation:Public relation of Parle Company is good as well as good attachment of people


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Product: - POPPINS

Give the orange to a friend and the mango to a stranger. Or try the lemon for aneighbor and the strawberry for a teacher. Give the black currant to the school bus driver

and the pineapple to anyone else you please. With so many flavors in each pack of

Poppins, you will have only one thing to say to everyone you meet; "Doon Kya".

Ingredients:

Sugar,

Liquid Glucose,

Acidulates [296] & Starch.

Contains Permitted Synthetic Food Colors

[E 110, E 102, E 133, E 122, E 124, E 127]

Added Flavors [Artificial]

Price: -Rs.2/-, Rs.5/-


Promotion: - Tag line of POPPINS is in every mouth of the people

"Doon Kya".


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Products: Pineapple

Ingredient list:

Wheat Flour,

Sugar,

Partially Hydrogenated Edible Vegetable Oils, Invert Syrup,

Milk Solids,Salt,

Leavening Agents [ 503 ( ii ), 500 ( ii ) ],Emulsifiers [ 322] or 471 & 481 ( i ),

Dough Conditioners (223),

Contains Permitted Synthetic Food Colour(102) and Added Flavours (Artificial).

Pack Size: - 90 G, 180 G

Price: - Rs.5/- & Rs.10/-


Promotion: - Tag line of Pineapple is in every mouth of the people:That is,

Treat yourself all year around!

Pineapples advertisement is very famous. It helps to increase the sale of product and

make it popular. It is also helpful to make mark set leader at time of new entrance


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Products:Mango

Ingredients:

Wheat Flour,

Sugar,

Partially Hydrogenated Edible Vegetable Oils, Invert Syrup,

Milk Solids Salt, Starch,

Leavening Agents [ 503 ( Ii ), 500 ( Ii ) ], Emulsifiers, Dough Conditioners [ 223 ]

Acid Regulators [296]

Pack Size: - 90 G, 180 G

Price: -Rs.5/- & Rs.10/-

Place: It is available in mostly every retail shop.

Promotion: Tag line of Mango is in every mouth of the people:That is,

Treat yourself all year around!

Now you dont have to wait for summer to enjoy delectable mangoes. Parle Mango

Cream biscuits bring the magical flavor of mango to you


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It is also most famous tag line and it they make advertising through TV advertising

and signboards.

Public relations

Monaco is all time favorite of consumers. So Parle has good relation with people.This product wins the trust of the consumer.

Monaco is largest selling packaged salted biscuits in India. Monaco is selling more than 8 countries


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STP (Segmentation, Target, Positioning)ANALYSIS

Segmentation variables Data

Geographic

Country Indian

City In all Gujarat

Density Urban

Climate Hot and dry

Demographic

Age Every age person

Gender Male and femaleFamily size 1-2,3-4,5+

Family life cycle Married, unmarried

Income All income

Occupation Every

Education Students, colleges, universities

Religion All

Race Asain

Nationality Indian

Psychographic

Social class Every classLife style Actualizes, fulfilled, believers, achievers

Experience makers and strugglers

Behavioral

Occasions Parties, birthday, sports etc.

Benefits Quality and taste

Loyal status Moderate


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Target Market Strategy of PARLE

PARLE Company as a whole inculcates SELECTIVE MARKET SPECIALIZATION

strategy.

Target Marketing: Segmentation reveals only the firms opportunities. The firm now has to

Evaluate the various segments and decide how many and which segments it can best serve.

Evaluating Market Segments: A firm must look at three factors to evaluate market

segments: segment size and growth; segment structural attractiveness; and company

objectives and resources. The company must first collect and analyze data on currentsegment sales, growth rates, and expected profitability for various segments. It will be

interested in segments that have the right size and growth characteristics. But right size

and growth is a relative matter. There are several structural characteristics that affect long-

run segment attractiveness.

Marketing Analysis of PARLE

1. The segment is less attractive if there are several strong, aggressive competitors.

2. The existence of many actual or potential substitute products may limit prices and theprofits that can be earned.

3. The relative power of buyers also affects segment attractiveness.

4. A segment may be less attractive if it contains powerful suppliers who can control prices

or reduce the quality or quantity of ordered goods and services. The company must take

into account its own objectives and resources in relation to the segment. If a segment does

not mesh with the companys long-run objectives, it can be dismissed.

Selecting Target Market Segments

A target market consists of a set of buyers who share common needs or characteristics that

the company decides to serve.

Target marketing can be carried out at several different levels. Companies can target very

broadly, through undifferentiated marketing; very narrowly, in micromarketing; or

somewhere in between, which is differentiated or concentrated marketing.


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Positioning Strategy of PARLEPositioning strategy: - Parle is positioned in the minds of people as a value for price

product and also as a low-priced product.

Differentiation strategy: - For Parle-G the company has used channel and image

differentiation tools. Parle-G by far has the most intensive distribution coverage as

compared to any other biscuit company in India. Also the name PARLE has an image

that generates respect and a belief of good quality in the minds of the buyers.

A products position is the way the product is defined by the consumers on important

attributes; it is the place the product occupies in consumers minds relative to competing

products. It involves implanting the brands unique benefits and differentiation in

customers minds.

To simplify the buying process, consumers organize products, services and companies into

categories and position them in their minds. A products position is a complex set of

perceptions, impressions, and feelings that consumers have for the product compared with

competing products.

Packing of PARLE

As in all other biscuits, packing plays an important role in Parle-G.too. The basic small

packs are packed mechanically using automated machines and are sealed using the Polly

bag sealing machine. These small packs are then manually packed into small boxes and are

sent through the conveyor belt to be packed in large cartons. 160 packets are packed per

minute. And in one big box there are 160 Parle-G packets packed.

Before, they used to bring the packaging material from outside the company but now it is produced in the factory premises itself. For export purpose the packets have different

languages print on them depending upon the geographical location & demand of the

people. Each factory has state-of-the-art machinery with automatic printing & packaging

facilities.


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BCG MATRIX

How the matrix is applied for PARLE products


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We can say that.

PLC analysis very IMP tool in the hands of marketer. Better understanding in managing profitable products & eliminating unprofitable

one.

As products moves from one stage to another in PLC- Marketer evaluate andadjust strategies for promoting ,pricing & distribution of the product.

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