PARLE

a. Introduction to the firm and product ranges a. Parle Products was founded in 1929 in British India.b. Owned by the Chauhan family of Vile Parle, Mumbaic. The original Parle Company was split into three separate companies

owned by the different factions of the original Chauhan family.

b. Parle Products History: - In 1929 a small company by the name of Parle products emerged in British dominated India. The goal was to spread joy and cheer to children and adults alike, all over the country with its sweets and candies. A small factory was set up in the suburbs of Mumbai to manufacture confectionery products.First brand that they introduced was – Parle Glucose and Parle Monaco.

Mission: - Concentrate on the consumers taste and preferences, The Parle brand has grown from strength to strength ever since its inception.

Vision: - "Hindustan Ki Taakat."For over 80 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.

Market Share:- 38% of total biscuit market.

c. Parle –Latest News a. 13-September-2014:- Parle Products launches the new range of

'Simply Good' Digestive Cookies.

Parle ProductsLed By:- Vijay,

Sharad and Raj Chauhan

Parle AgroLed By:- Prakash

Chauhan and his daughters

Parle BisleriLed By:- Ramesh Chauhan

i. 3 Varieties: - Classic Digestive, Honey & Oats and Apple & Cinnamon.

ii. Biscuits are high in nutritional value consisting of fibres , oats, pure honey and multi grains.

iii. Brand message 'Unveiling Simple Goodness'.iv. Two packs sizes, the 250 gms at Rs. 50/- and the 100 gms at Rs.

20/-.b. 01-October-2014:- Parle goes for expansion of premium segmentc. 05-October-2014:- Parle Products launches the 'Litter Free' campaign

at the biggest Dandiya Event, this Navratri!d. Industry Analysis

a. Biscuit industry in India in the organized sector produces around 60% of the total production, The balance 40% being contributed by the unorganized bakery.

b. The Major brands are Britania, Parle, ITC Bakeman, Priya Gold, Elite, Cremica, Dukes and Horlics.

c. Biscuit Industry contribute Rs 8000 crore to FMCG industry.d. Maharastra & West Bengal hold maximum amount of business

consumption.e. Category wise category

i. Glucose 44%ii. Marie 13%

iii. Cream 10%iv. Crackers 13%v. Milk 12%

vi. Others 8%.

Sno

Category Parle Product

1 Glucose Parle – G2 Marie Parle Marie3 Cream Kreams/Kreams Gold4 Crackers Krack & Jack5 Milk Milk Shakti6 Digestive Actfit7 Others

Porter’s Five Force Model

Bargaining Power of Suppliers

Threat of Substitute

Threat of New Entrant

Bargaining Power of Customer

Competitive Rivalry Within

industry

e. Competitor Analysis a. Major Market share holders – Organized Sector

i. Parley, in fact, is the market leader by volume, but still trails Britania in terms of value.

ii. Mover the last couple of years, Britania which was once considered a generic name of biscuit has seen its share of the

:-HIGH

High Competition

among existing players.

SubstituteTraditional Indian homemade snacks,

•Bread,• Package SnacksBakery product.

New Entrants•Capital Sensitive:•Manufacturing,

•Advertising,•Distribution network,

•New Entrants

CustomerMany biscuit from low

to moderate Range,• Like of bakery

product Suppliers:-Basic Comodities:

Wheat, Sugar

:-LOW

Rs 4500 Crore per annum market fall from 48% to 40% in terms of Revenue.

iii. Smaller players like Bisk Farm, Priya Gold, Anmol, Marico and Duke space to carve out regional Satrapies all over the country.

iv. In Year 2003 ITC entered the market with its Sunfeast brand and grabbed 8-10% market share.

v. Gulucose Biscuit accounts for 57% of the Indian biscuit market and PARLE G commands a 50% share of this segment.

vi. Parle sells 4,000 tones per annum, is the World largest by tonnage.

b. Strategic mapping of Parle and competitors on following ground:- i. Price and Distribution

ii. Nutritional Content and brand

iii. Innovation and Technology

britania

LOW

LOW HIGH

HIGH

DISTIBUTION

parle

sunfeastpriyagold

marico

LOW

LOW HIGH

HIGH

BRAND

NU

TR

IT

IO NA L

CO

NT

EN T

sunfeast

priyagold

marico

britania

parle

LOW

HIGH

I N N O V A T I O

sunfeast

priyagold

marico

britania

parle

iv. Pakaging

f. Segmentation and Target strategy of Parle a. Segmentation Targeting

i. If we divide the whole market on basis of their preferences foe sweetness and saltiness in the biscuits then the possible outcome would be that the preferences are clustered near some tastes i.e. the consumers would not like to have something really vague like 50%salty, 25%sweet and25%creamy.That is why the preferences are clustered and not diffused wherein the preferences have to be very extreme and vague.

ii. Parle as a company makes use of this clustered preferences and manufactures biscuits for each and every cluster. For e.g. Monaco for entirely salty biscuits and its latest product Krack jack is for sweet and salty taste.

b. Target Market Strategy of Parle

i. Parle as a whole inculcates ‘Selective Market Specialization’ strategy.

1. Producta. P1 – Parle -Gb. P2 – Hide & Seekc. P3 –Other

2. Market Segmenta. M1 – High income b. M2 – Mid income c. M3 – Low income

LOW HIGHPAKAGING

sunfeastpriyagold

marico

parle

britania