Strength of Group

Rs 8,000 cr 1.8 Kg

Rural Sector the biscuits

55% of

India is Third Largest Producer 14-15%

15% of
the Annual production

Based on Production in India Biscuits can be classified into :Glucose 44% Marie 13% Cream 10% Crackers 13% Milk 12% Others 8%
Glucose
8% 12% 44% 13% 10% 13%

Comparison

Marie Cream Crackers Milk Others

Market Share Data for Indian Biscuit Industry

Here are market share data for biscuit industry from a report available at IBMA (Indian Biscuit Manufacturer Association) Major Market Share Holders - Organized Sector
PARLE 21% 40% 11% BRITANNIA ITC 38% REST

INDUSTRY PARLE BRITANNIA ITC

SHARE 40% 38% 11%

REST

21%

Organized Sector

Unorganized Sector

Urban

Rural

70%

30%

75% - 85% 55% - 65%

Marie and Glucose 50%

Sweet, Crackers, Cream, Milk 50%

Zone North Zone

% Contribution
25%

West Zone
East Zone

23%
28%

South Zone

24%

GROWTH STORY OF PARLE G

GROWTH STORY OF PARLE G

Parle G is largest selling brand in the world

70% of Glucose Market

Largest Consumption in Rural Market 12%-15% Growth Low Margin

High Volume.

GROWTH STORY OF PARLE G

The value of money positioning helps to generate large sales volumes of the product. Parle G is available in Re 1, Re 2, Re 4,Re 10 Etc.

Profit Margin for Distributors is Rs 4 and Retailers Rs 10/-.

Parle G maintained its price of Rs 4/- for Last 12 yrs have seen the variation in its sales due to increase in price by mere 50ps.

GROWTH IN FUTURE OR NOT

 The company has extended its Flagship brand. The demand for premium biscuits has gone up in the country and there was no option available for the consumer in the premium glucose category. Give its consumer a richer formulation and a bigger biscuits. About decade a ago it had launched Parle G Magix with variants such as Chocolate and Cashew to take on Britannia. According to the report, The new product is currently available in and around Mumbai and the company is planning to extend its presence for Parle G Gold across the country in phased manner.

Parle Products, India's largest biscuit, confectionery and snacks manufacturer has launched a new candy Londonderry.
The lacto candy that contains caramel and milk is now available in retail stores across India. The premiumness of the product is further enhanced with the international look and feel of the packaging. Parle Products is a leading player in confectionery market and has strong presence through some of its leading brands like:Melody Mango Bite Kaccha Mango Bite Popins Now with the launch of Londonderry, the company is looking at further strengthening its position in confectionery market.

 "The confectionery market in India has seen tremendous growth in the

last couple of years. With Londonderry, we are aiming to reach out to the kids and teenagers, offering them an international quality lacto candy at an affordable price. In the past, other candies from Parle's basket have been loved, and I am sure Londonderry will be no exception. "This product primarily targets children and teenagers. We have planned an extensive media campaign as we intend to display elements of fun in all our communications. The TVC for the same is a combination of live action and animation and characters that appeal to children and teenagers. The ad has been shot in Europe with an international cast and crew. The look and feel of the TVC is entertaining, yet mysterious, and I am confident that it will definitely click with our younger consumers."

Parle Products, which entered the snacks business four years ago, will launch five new Namkeen products within a year to garner 25% of the Rs 8,000 crore market.
We will launch various products in all the categories under snacks like traditional namkeen and wafers to increase our market share to 20-25% within the next two years,

The company has got positive response after the test phase launch of the new products in Chhattisgarh, Madhya Pradesh and Maharashtra this month.

We are taking lessons from these test launches.

There are some distribution related issues. By the end of 2012-13 we will launch it nationally, Parle already has two products in this category - Actifit Digestive Marie and Actifit Sugar free Cream Cracker biscuits. With a 40% share in the biscuit market and a 15% share in the confectionery market in India, Parle has grown to become a multi-million dollar company.

Parle Namkeen will be available in three categories Mixture, Bhujia and Dal. Under the Mixture category, Parle Namkeen will offer Khatta Meetha and Hot n Spicy Mixture. The Bhujia category will also be available in two varieties, Bhujia Sev and Aloo Bhujia. The third category is Moong Dal, crispy, tasty and protein rich teatime snack.

To induce trials, we will be offering our customers 25 per cent extra on each packet. Looking at the positive demand in the market, we are aiming to capture 20 per cent market share by the end of this financial year.
The namkeen category has seen tremendous growth in the last couple of years and has been growing at an enormous 25 per cent year on year. Parle Namkeen will be available across popular price points of Rs 5, Rs 10 and Rs 20 per pack.

The country's largest biscuits and confectionery products maker PARLE Products said it will take legal action against the Maharashtra Food and Drug Administration (FDA) by dragging the latter to the Bombay High Court, reacting to the FDA's allegation that its Kaccha MANGO BITE brand contains lactic acid beyond permissible limits. "We have challenged the action taken by the FDA and the matter is sub-judice and pending before the Bombay High Court. It is our contention that use of lactic acid in Kachha Mango Bite is absolutely safe for human consumption," a statement issued by Parle Products said.

Parle Products was founded in 1929 in British India. It was owned by the Chauhan family of Vile Parle, Mumbai The Parle brand became well known in India following the success of products such as the Parle G biscuits and Thumbs Up soft drink. The original Parle company was split into three separate companies owned by the different factions of the original Chauhan family: Parle Products, led by Vijay, Sharad and Anup Chauhan (owner of the brands Parle-G, Melody, Mango Bite, Poppins, Monaco and KrackJack) Parle Agro, led by Prakash Chauhan and his daughters Schauna, Alisha and Nadia (owner of the brands such as Frooti and Appy). Parle Bisleri, led by Ramesh Chauhan All three companies continue to use the family trademark name "Parle". Parle Agro.

PARLE AGRO:Parle Agro commenced operations in 1984. It started with beverages, and later diversified into bottled water (1993), plastic packaging (1996) and confectionary (2007). Frooti, the first product rolled out of Parle Agro in 1985, became the largest selling mango drink in India.

Separation from the parent company:

The original Parle group was amicably segregated into three noncompeting businesses. But a dispute over the use of "Parle" brand arose, when Parle Agro diversified into the confectionary business, thus becoming a competitor to Parle Products.
In February 2008, Parle Products sued Parle Agro for using the brand Parle for competing confectionary products. Later, Parle Agro launched its confectionery products under a new design which did not include the Parle brand name.

In 2009, the Bombay High Court ruled that Parle Agro can sell its confectionery brands under the brand name "Parle" or "Parle Confi" on condition that it clearly specifies that its products belong to a separate company, which has no relationship with Parle Products. While granting conditional permission to Parle Agro to go ahead with the family name, the court did not fully agreed to Parle Products case.

There is no agreement between the parties, by which either of the groups is restrained from carrying on business of the other groups for any period of time or within any place upon the brothers exiting for any of the businesses of the family High Court

SWOT ANALYSIS OF PARLE

Strength of Parle Diversified Product Range Parle Brand Extensive Distribution Network Low and Mid price range Catering to Mass Better understanding of Consumer psyche. Opportunities of Parle Estimated annual growth of 20% Changing Consumer preference Increasing demand for Sugar Free and Diet Biscuits. Weakness of Parle Dependence on Retailers and Grocery Stores for Displaying diversified Parle Products on Shelf induce impulsive buying. Dependence of Parle G (Flagship Brand) Threats for Parle Hike in cost of Production due to hike in Raw Material cost. Increasing in Distribution cost Local Bakery Products Entry of various new entrants, ITC etc.

RECOMMENDATIONS
More Flavors Offers Better Packaging Quality Advertising 8 1 5 0 3
8 8 6 4 2 0
More Flavors Offers Better Packaging Quality Advertising

5 3

Offering of More Flavors which will help to compete with competitors Some attractive Packaging is required as per Youth oriented Market More Advertising is required to Attract more untapped market and Consumer Coming to quality and good offering of products makes the parle company more stable and unique.

ENJOY THE BISCUIT WITH CHILLED WATER