PARLE

BISCUITS
LTD
By-KOMAL
Roll no. 40
PTMBA-FIN DIV A
NMIMS
Introduction-Parle
India's largest manufacturer of biscuits
and confectionery, for almost 80 years.

Makers of the world's largest selling

biscuit, Parle-G, and a host of other very
popular brands

Parle name symbolizes quality, nutrition

and great taste.

With a reach spanning even the

remotest villages of India
Introduction (conti)
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.
 History
1929 a small factory in the suburbs of
Mumbai city.

Products manufactured sweets and

toffees called Parle Products

1939, Parle Products began

manufacturing biscuits

Parle Glucose & Parle Monaco first

brands of biscuits became leading
names for great taste and quality.
 Parle Products
Parle Biscuit: Parle Sweets:
Parle - G Melody
Hide and Seek
Kismi Gold
Krackjack
Hide & Seek Milano
Mango Bite
Magix Orange Candy
Digestive Marie Kaccha Mango Bite
Monaco Xhale
Parle Marie Poppins
Kreams 2 in 1 Eclair
Milk Shakti Kismi Toffee
Parle 20-20 Cookies
Golgappa
Goldenarcs
Nimkin
Kisme Toffee Bar
Kreams Gold Melody Softee
Chox Mazelo
Monaco Jeera Parle Lites
Parle Snacks:
Musst Bites
Jeffs
Cheeslings Musst Stix & Musst Chips
Sixer
Sixer Zeera
 Parle Biscuits Ltd
Parle Biscuits Limited is a subsidiary of
the Parle Products Limited, Mumbai,

Closely held company run by the

Chauhans.

Parle enjoys a 40% share of the total

biscuit market and 15% share of the
total confectionery market in India.
Parle Production Factories
 Parle core Values

The great tradition of taste and 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.
 Strategic Competencies
- An in-depth understanding of the
Indian consumer psyche

- Nutritious Products

- Newer & Innovative products

- Strong sales / distribution N/W

- Value for money products

External Analysis
Industry trend
The biscuit industry is been experiencing steady
growth of 14-15% annually.

In 2008, the growth exceeded 16% mark on account

of exemption from Central Excise Duty on biscuits.
External Analysis
Two Sectors of Biscuit Industry
External Analysis
Annual Production:

The organized biscuit manufacturing industrys annual

production figures show YOY growth indicating rising
consumption pattern in India.
 Industry Players
Other Players
HLL
Bisk Farm
Anmol
Elite
Cremica
Dukes
Anupam
Craze
Nezone
External Analysis
Major Market Share Holders
Organized Sector
 PEST
Political
Taxes
Economical
in per capita income
Production and
Indias GDP growing
Distribution licenses at an average 8%

Social
in per capita
consumption Technological
India is 3rd largest Innovation
producer of biscuit
Age R&D
Lifestyle
Perception
 Porter's Five Forces Analysis
-Capital intensive Threat from
manufacturing, New Entrants
Low
advertising and
distribution system.

The ingredients are - High competition among

basic commodities such Internal existing players to capture
as wheat, sugar etc. Rivalry maximum market share.
Powers of Powers of
High Buyers
SuppliersLow High

Availability of many
biscuits from low to
-Traditional Indian moderate prices
home made snacks - Availability of
- Bread biscuits from nonorganized
-Growing packaged sector
snacks industry
High
Threats of
Substitutes
 Opportunities & Threats
Opportunities Threats
- Indian Biscuit Manufacturers - Fluctuations in the prices of
Association (IBMA) estimates annual transportation costs & distribution
growth of around 20% in next couple cost due to high wedges and
Of years. oil prices
- The $220 Billion food industry is - Entry of ITC (having very good
expected to grow to $300 Billion by distribution channels) in to biscuit
2015. industry
- Per capita consumption of Biscuits in
the country is only 1.8 kg as compared
to 2.5 kg to 5.5 kg in South East Asian
countries and European countries, and
7.5 kg in USA.
- Growing demand of Sugar free cream
crackers & diet biscuits
- Opportunity to further grown in Urban
& Rural market; Current penetration
levels are
Urban Market : 75% to 85%
Rural Market : 50% to 65%
- Grow in southern and east India
 Internal Analysis-SWOT
Strengths
1. Parle Brand
2. Diversified Product Range
3. Extensive Distribution Network
(Availability in most remote villages)
4. Low & mid range price segment
catering to mass
5. Better understanding of consumer
Psyche
Opportunity
1. Estimated annual growth of 20%
2. The 220 B$ food industry is
expected to grow to 300 B$ by 2015.
3. Low Per capital consumption of
Biscuits (1.8 KG) as against 5.5 KG in
South East Asian countries.
4. Increasing demand for Sugar free
cream crackers & diet biscuits
5. Current penetration levels
Urban Market : 75% to 85%
Rural Market : 50% to 65%
6. Growth in southern and east India
Weakness
1. Dependence on retailers & grocery
stores for displaying diversified
Parle products on shelf to induce
impulsive buying
2. Dependence on Parle-G (glucose
biscuit) under Parle umbrella
Threats
1. Hike in cost of production due to
Hike in prices of raw materials and
increase in transportation plus
distribution cost due to high wedges
and oil prices
2. Entry of ITC (having very good
distribution channels) into biscuit
industry
 SWOT Recommendations
SO
1. Increase penetration in southern
India and eastern India
2. Expand in rural market
3. Cater to new diet conscious segment
4. Advertising of Parle products using
celebrities such as sport person
(Cricketer very popular game in
India)
ST
1. Shift towards products (SKUs)
That are highly appreciated in
urban market (heath conscious
mothers) and price sensitive
rural market rather than just
increasing no of SKUs
WO
1. Heavy promotional campaigns in
rural areas , southern & eastern
India to increase brand awareness
to boost top of the mind recall
sales.
2. Advertise and promote Parles
nutritious brands other than Parle-
G in educated urban market
looking for healthy product
WT
1. Capture more market share of
Other biscuit segments using
Distribution channels by associating
Individual products with a
promotion.
Example the stylish cream biscuit
is promoted by bollywood star,
Marie products are branded as
family snacks product etc.
 Pricing Strategy of Parle

Golden question.

How Parle-G is priced at Rs.6

for past 12 years?????????
 Pricing Strategy of Parle

Golden question.

How Parle-G is priced at Rs.6

for past 12 years?????????
 Pricing Strategy of Parle
QUALITY
LOW HIGH

L
O
Economy Penetration
w

P
R
I
C
E
H Skimming Premium
I
G
H

Pricing Strategies Matrix

 Parle Pricing

Parle brand symbolizes -quality, health

and great taste.

Factories at strategic locations

Automatic Printing and packaging

facilities

Extensive distribution network build over

the years is a major strength
 Parle Pricing

140 180 packets /minute

12000 biscuits /minute

Bulk purchase of Wheat

Reduces no. of shifts

Wastage- 1% of the 115 tones

 Parle Pricing

Establishment of manufacturing units in

rural areas

Investment in R & D

Increase in number of biscuits and

reduction in weight per biscuit

100g pack costing Rs. 4 has net weight

93.5g
 Parle-G Pricing
Strategies
Sell brand not price

Wider reach/presence through different medium-

education, hospital, army, railways & bus
donation, sports, NGOs

Brand value compels suppliers to sell Parle-G at

low commissions

Nearly 1500 wholesalers, catering to 425000

retail outlets directly or indirectly

Availability in remote places even in the villages

having population of 1500
 Parle-G Pricing
Strategies
Now available in Re 1,Rs 2,Rs 4, to Rs
25 packet

Profit Margin for distributors is 4% and

for retailers is 10 -12 %

Pricing advantage of Parle brand in other

product lines
 Parle-G Pricing
Strategies
Penetration Strategy Keeping high quality and
maintaining low price

Previously sets its price as per the geography,

freight cost for reaching remote places is quite
high

As per Gdsouza, coordinator of Parle products,

variation of the price of Parle G from Rs 4-5 in
different states

But due to factories at strategic locations Parle-G

is moving towards uniform pricing all over India
 Parle-G Pricing
Strategies
Alternative Increasing Price

Reducing Product Size, using less expensive raw

materials, unbundling the product.

Buyer reactions to price changes

must be considered
 Parle-G Pricing
Strategies
Competitors are more likely to react to
price changes under certain conditions
Number of firms is small (Britannia, ITC, Priya Gold and
other small players)
Product is uniform
Buyers are well informed

Parle has seen the variations in sales due to

increase in price by mere 50p

Respond to price changes only if

Market share/profit will be negatively affected if
nothing is changed.
THANK
YOU