Parle

Products
Introduction:
Parle product is an Indian private limited company founded in 1929.
It is well known across the world for its famous biscuit brand Parle-
G. It is owned by the Chauhan family of Mumbai. Parle Products has
been India's largest manufacturer of biscuits and confectionery for
almost 80 years. Over the decades the efforts of their Research and
Development wing have made the repertoire of their products grow
manifold. The product categories of the main company are as
follows:-
1) Parle Products-
It is led by Vijay, Sharad and Raj Chauhan who is the owner of the
brands Parle-G, Melody, Mango Bite, Poppins, Kismi toffee bar,
Monaco and KrackJack.
2) Parle Agro-
It started its operations in 1984. Frooti, which was the first product,
rolled out of Parle Agro in 1985 and became the largest selling
mango drink in India. It started with beverages like fruit drinks,
juices, sparkling drinks etc. and later diversified into bottled water.
3) Parle Bisleri-
Bisleri Ltd, a company of Italian origin, first introduced Mineral Water
under the name Bisleri in Mumbai in glass bottles in two varieties -
bubbly and still in 1965. Signor Felice Bisleri who first brought the
idea of selling bottled water in India started this company. Parle
bought over Bisleri (India) Ltd. in 1969 and started bottling Mineral
water in glass bottles under the brand name 'Bisleri'. Ramesh
Chauhan started it in 1969.

Main products of Parle

Biscuits-Parle-G, Monaco, Parle Marie, Hide & Seek, Milano,
Coconut etc.
Sweets-Melody, mango bite, popins, kismi, Chox etc.
Snacks- namkeen, parle wafers etc.

Parle-G:
The most leading brand of parle products is Parle-G biscuits which
was set up in a small factory to produce sweets and toffees in
Mumbai, at an area called Vile parle, hence the name was kept for
the product. The biscuit Parle-G was termed the worlds largest
selling biscuit in 2013-14 as it is a combination of great taste, low
cost, nutritional value and meeting international standards.
Parle-G is the dominant player with over 12% market share in the
rupees 25,000-crore domestic biscuit market as it is consumed by
people falling in all age groups, demographics, income level. Its
more than just a biscuit. A meal substitute for some, a tasty and
healthy snack for many others. Consumed by some for the value it
offers, and many others for its taste. Because of which it is also one
of the most trusted brands in India.
Its leading competitors are Britannia, ITC, Sunfeast.

Product:

Core Benefit:

The core benefit of both Parle-G and Britannia Tiger biscuit is to

satisfy hunger of the consumer.

Actual Product:

The basic product is the biscuit and for Tiger is a biscuit with brand
name, feature, quality, design and packing of the product.

Augmented Product:

Parle-G biscuits increase a persons energy levels. As this is not

expected by the consumers, hence exceeds customers
expectations. Tiger deals with warranty, after-sale services etc.
 Augmented Product
Increases consumer's energy levels

Actual Product
Biscuit
Core Benefit
To satisfy the
hunger of the
consumer

Augmented product
Warranty, after-sales services
Actual Product
Core Benefit
Bicuit with brand,
To satisfy
features, the
quality, design
hunger of the
and packing
consumer

Brand Relationship:
The Parle-G biscuit brand enjoys a strong imagery and appeal
amongst consumers. Be it the rural India or the urban India, the
name Parle symbolizes quality, health and great taste. It is
synonymous to energy and nutrition. The brand is associated with
values like honesty, sharing and caring. And it had become an icon.
The reputation has been built by constantly innovating and catering
to the changing and new tastes of the consumers.

Britannia Tiger:

Britannia has launched Tiger brand in the low end category to take
competition head on with Parle which is the leader in this segment.
It was launched in 1997 and became the largest brand in Britannias
portfolio in the very first year of its launch. It is a glucose biscuit
which comes with the added goodness of wheat and milk. It is for
modern mothers who play an enabling and want the best for their
children. Tiger brand has become fortifies with Iron Zor with an
attempt towards addressing the iron deficiency crisis among
children. Over the years, Tiger has become the mass-market face of
Britannia symbolizing fun and energy in both urban and rural India,
and transcending glucose biscuits.

Suggestions for improving Product/Brand penetration in the market:

1. Local Chai stalls can stock Parle-G biscuits of various sizes to
have the biscuits along with chai/coffee.
 2. Parle brand is about promoting good health so they can launch
breakfast cereal series for kids. And they can promote smaller
packs bundled with mid-size packs of Parle-G biscuits.

Price
Pricing strategy (along with quality and distribution network) has
undoubtedly been the most important factor for the continuous
success of Parle-G in the Indian market. It is positioned as the low
priced nutritious biscuits for the Indian masses especially for
children. Many competitors went out of market but Parle-G remained
on the top because of its low price, combined with its milky taste. It
has historically kept its price lower relative to its competitors. The
low pricing policy of Parle-G has helped the company to reach such
heights and ward off competition. It has maintained its popularity
and accessibility since its beginning by keeping its pricing policy
unchanged. Its revenue and market share is due to its quality and
volume and not through high prices.Mass-production, mass-
distribution and mass-promotion allows Parle to maintain low-price
for Parle-G while targeting all segments of the market. Parle uses
value pricing method to decide the prices.
Cost:-
Price of 100gm Parle-G has been maintained at Rs 4 for the last 25
years, which was raised from
Rs 3.75 in 1994. In 2003 Parle-G tried to change its price from Rs 4
to Rs 4.50 for a brief period, but since customers of glucose-biscuits
are very price-sensitive, it caused a big dip in its sales. Therefore,
Parle-G had to change its price back to Rs 4, although by then it
allowed Tiger to gain significant glucose-market share. Since then,
there has been reductions in the pack size (e.g. from 100gm to
82.5gm) without changing the price. For Parle-G biscuits, raw-
material costs 60% and packaging costs 20-25% of the total cost. It
charges prices from 1, 2, 4 to 50Rs/- depending upon the pack size.

Tigers pricing strategy:

Britannia have always tried to capture the market share from Parle,
so it tried to keep its price equal to Parle-G. But its prices has
remained slightly higher than Parle-G. Moreover it couldnt capture
much of the market share because it couldnt match the taste of
Parle-G.
Fitness of the current pricing strategy:
The success of its pricing strategy can be assessed by its market
share and popularity. It has kept its price constant at Rs 4 for the
last 25 years. Though it changed the package size in response to
increasing costs, but kept the price constant. Once it increased the
price, but the market share declined significantly, thereafter it has
not changed prices. Instead of focussing on price, it focuses on
volume and market penetration to increase the revenue and profit.
So its strategy of keeping the price constant and instead altering
other parameters has helped in retaining the customers and the
market share.

Sales Channel:
Parle-G being an economical product having multiple target
segments carries out intensive distribution to sell its biscuits. It is
marketing strategy where a company sells through as many outlets
as possible, so that the consumers encounter the product virtually
everywhere they go: supermarkets, kirana shops, small hotels etc.

Parle-G Distribution network

Manufacturing plants

Parle-G depots

Wholesalers

Distributers

Retailers-small shops, city stores

Customers.

1500 wholesalers
425000 retail outlets
31 depots
 This is the ideal strategy used as it
Increases coverage and sales
Increases product availability
Encourages retailers to compete aggressively

Parle-G has level 1, level 2 and level 3 distribution channel

levels.
Level 1 makes it available across all department stores
Level 2 provides availability of the biscuits in every
corner of the country
Mass consumption suitable for national and international
coverage

Physical distribution of Parle-G

Physical distribution functions include customer service, order
processing, inventory control, transportation and logistics, and
packaging and materials.
Parle-G strength is procurement of raw materials because of strong
inventory management. They have loyal corporative that provide
the product only to them. They also have a strong transport channel
which includes light commercial vehicle, 3 wheeler van, push carts,
tricycle van etc.

Britannia distribution
network:

Supplier
Supplier -1
-2

Supplier
-3

Company
 CNF
agent
Distribut
er
Wholesal
er

Retailer

Customer

Even Britannia Tiger being as FMCG product believes in intensive

distribution. They also set up hub-and-spoke rural distribution model
and within a year their rural outlets increased over 8000. Being a
low cost product this is the right approach. To make distribution in
urban areas more efficient, they built a split route model wherein
the 250-odd SKUs were divided between two salespersons. Earlier,
one salesperson used to walk into a store. Now, two people go, each
with different SKUs. This has helped them put more SKUs in stores

Suggestions for improvement for Parle-G:

1) Set up parle zones:
A strategy to stalk all parle products together in huge
amounts in malls and retails outlets. This can be easily
implemented in cities where footfalls are high.
2) Improve packing and give a fresh attractive look
3) Bundle it with tea powder packets or give a small pack free
with tea/coffee packs.

Describe the communication objectives and modes used

Objectives of Parle-G Promotion
Parle-G is one of the most trusted and oldest names in Indian
Brands. Parle-G objective was to become a widespread brand
making its presence in the remotest part of the country enabling it
to capture market share in biscuit manufacturing.
Parle-G has focused more on children and also influences parents
decision. Parle integrated mass communication and also used non-
personal communication channels Advertising, Sales Promotion, and
Public Relations. For many years the product was packed in a wax
paper of yellow wrapper and featured little girl. Later with time wax
paper changed to plastic wrapping but design remained the same.
Objectives of Britannia Tiger promotion
 Britannia Tiger is the biggest competitor for Parle-G in low price
bracket and glucose biscuit. The objective of Britannia is to project
its good image among its customer highlighting reliability and
quality of its products. Other objective includes capturing market
share and healthy top line growth.
Difference in USE of Promotional Channels

Mass
Communication

Advertisem Sales Public

ent Promotion Relation

TV Bill Press

PARLE-G
Earlier promotional advertisements of Parle-G were mainly done
through Press Ads which highlighted the basic benefits of energy
and nutrition. In 1989 Parle-G released its Dadaji commercial
which was a huge success and it was aired for more than 6 years. It
communicated positive values associated with the brand like
honesty, caring and sharing.
In the year 2002 Parle-G introduced new brand ambassador G-Man
who was a superhero that saves the entire world, especially children
from evil forces.. The TV commercial showing G-Man fighting
Terrolene (Evil Force ) to save children launched the campaign.
Along with advertisement press medium like the poster, billboards
and streamers were put at the retail stores.
A new campaign launched by Parle-G was G maane GENIUS. In
this series, a little kid eats Parle-G and play tricks with wise and
older people. Also, a reminder TV commercial was launched by Parle
depicting Parle-G Hindustan ki takat.
Parle-G used innovative advertisements featuring young children
which made them popular and led parents to believe that Parle-G
would do wonders to their kids.
BRITANNIA TIGER-
Britannia aired advertisements starring celebrities like Salman Khan
and little boy enjoying his Tiger butter Krunch cookies. Such kinds of
advertisements are huge cost to company but have impact on sales
due to celebrities fan-following. Also they promises the new
generation a healthy and nutritious filled alternative which is also
tasty.

I. SALES PROMOTION

PARLE-G
Another technique used by Parle to promote its product is sales
promotion. Every year Parle holds Day fairs at branded venues for
employees and their families where games and fun events are
organized and Parle products are given as prizes. Also to give a
monetary boost during festive seasons they offered seasonal
discounts.
BRITANNIA
Britannia adopted Sales promotion technique by giving small packs
of 50-50 free with biscuit combo in festive seasons and in rural
marketing Fair. They also conduct contest in form of gift offers,
slogans, and scratch cards.

II. PUBLIC RELATIONS

PARLE-G
Public relations forms an important part of Parle-G promotion
campaign. Parle-G sponsored a television series SHAKTIMAN
which became popular among children. Also using shakti man they
communicated values and benefits they offer to children effectively,
which gave a huge sales boost to Parle-G.
Also a successful campaign Mera sapna sach hoga promo, which
was basically fulfilling dreams of children. They fulfilled wishes
ranging from scholarships, foreign trips to meeting high profile
celebrities. Parle-G has extended its help to government and NGOs
as CSR activities during natural calamities or disasters, by providing
free biscuits to victims.
BRITANNIA
Britannia launched event Britannia khao World Cup jao in 1999,
people bought biscuits packs to find a lucky scratch to win a free
ticket for flying to England to see World Cup Match Final. These
resulted into sales bounce of approx. 37%. They repeated this
scheme in World cup Match in South Africa (2002-03)
Also they conducted a novel way to promote their product through
movie LAGAN- the super hit movie , a small group of people were
invited to play with the star-cast of the movie also around 40000
buyers of Britannia biscuit were invited to see the match. Such a
campaign created brand image in mind of people.

Improvements Suggested:
 As Parle-G is target to children they should launch a contest
for student sponsoring their scholarship to under privileged
students upholding its value
As new promotional channels are emerging, Parle-G should
target using internet as medium of promotion which is low
cost and higher reach

Submitted by

Group 13

Ajinkya Babar(012)

Ashok Choudhary(034)

Disha Singh(019)

Neelima Devi Pakina(044)

Rupeshwar Kumar(051)