47814551 product and brand management

7/29/2019 47814551 Product and Brand Management

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PARLE G

PRODUCT AND BRAND

MANAGEMENT


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Marketing Plan

1500WHOLESELLERS

4,25,000 RETAIL OUTLETS

AFFORDABLE PRICE


3/21

Market size

y The biscuit industry is been experiencing steadygrowth of14-15% annually.

y In 2008, the growth exceeded 16% mark on accountof exemption from Central Excise Duty on biscuits.


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SWOT

y Strength

Parle Brand

Diversified Product Range

Extensive Distribution Network (Availability in most remotevillages)

Low & mid range price segment catering to mass

Better understanding of consumer psyche


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SWOT

y Weakness

Dependence on retailers & grocery stores for displaying

diversified Parle products on shelf to induce impulsive buying

Dependence on Parle-G (glucose biscuit) under Parle umbrella


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SWOTy Opportunity Indian Biscuit Manufacturers Association (IBMA) estimates annual

growth of around 20% in next couple of years.The $220 Billion food industry is expected to grow to $300 Billion by

2015.

Per capita consumption of Biscuits in the country is only 1.8 kg ascompared to 2.5 kg to 5.5 kg in South East Asian countries andEuropean countries, and 7.5 kg in USA.

Growing demand of Sugar free cream crackers & diet biscuitsOpportunity to further grown in Urban & Rural market; Current

penetration levels areUrban Market : 75% to 85%Rural Market : 50% to 65%

Grow in southern and east India


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SWOT

y Threat

Fluctuations in the prices of transportation costs & distribution

cost due to high wedges and oil prices

Entry of ITC (having very good distribution channels) in to

biscuit industry


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Growth

y Launched in the year 1939 in Mumbai, it was one of the first

brands of Parle Products.

y By the year 1949, Parle Glucose biscuits were available not

just in Mumbai but also across the state.y Today, Parle enjoys a 35% share of the total biscuit market

and a 15% share of the total confectionary market, in India


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PESTEL analysisEconomical

in per capita

income

Indias GDP growing

at an average 8%

Technological Innovation

R&D

Political

Taxes

Production

and

Distributionlicenses

Social

in per capita

consumption

India is 3rd largest

producer of biscuit

Age Lifestyle

Perception

Legal

Initiated ISO 9000

certification Environmental

Dynamic

Parle G


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Competitors analysis

15%

35%

10%

9%

31% Priyagold

Parle

Others

Sunfeast

Britannia


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Parle G v/s Tiger

Tiger gained 28% Market Share in 100 gram Glucose

biscuit segment in a short span of 7 years (1997 2004)

VERSUS

Parle G established since 60 years 57 % Market Share in

this segment.,


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Consumer Distribution.DEMOGRAPHIC

Age Every Age

Gender Any

Family Size 1-2,3-4,5+

Family Life Cycle Married / Unmarried

Income All Income

Occupation Any

Education Any

Religion Any

Race Any

Nationality Any


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Pricing

y Appeal to all income groups

y Low and mid range price segments

y Value for money

y Strict cost control at every point in supply chainy International pricing

y Complete excise exemption for biscuits up to 50/kg

y Parle-G 100 gm pack costs Rs 4.50, while that of the 50 gm

is Rs 2.50.


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PricingStrategy Matrix


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USP & UCP

y Parle Gs main Unique Selling Proposition is obviously the

low price...

it has maintained its pricing for almost 25 years now...

y Due to which the Unique Customer Perception for Parle G,

moreover has positioned its itself as the biscuit nutrition

provider at a low price...

which still make them the world leader...


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Objective

We at Parle continuously strive for high quality & nutritious

biscuits meeting your changing health needs at every corner ofIndia by producing new value-for-money products.


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Promotion

y It was advertised mainly through press ads. The

communication spoke about the basic benefits of energy and

nutrition.

y

The next level of communication associated the brand withthe positive values of life like honesty, sharing and caring.

y TV commercial were launched for Parle-G like Hindustan

ki takat and G mane Genius

y

Recently Parle G has started the use of celebrity in theiradvertisements


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Contingency Plan

y Strong sales /distribution N/W

y Healthy Products

y Value for money products

y Understanding of consumer psychey Geographically located factories

y Effective brand marketing

y Newer & Innovative products

y Attractive packaging


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Net Salesy Parle G glucose biscuits, had attained volume leadership in

the market.

y With a total turnover of around Rs 4,000 crore coming frombiscuits,

y Parle Products has emerged as the clear market leader, with adifference of almost Rs 1,000 crore with Britannia Industriesreported a turnover for financial year 2009-10 on biscuitscontributing around Rs 3,000 crore.

yRs 5,000-crore Parle Products, which also makesconfectionery products, draws 80% of its turnover from

biscuits


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Marketing expenditure

y Budget : 500-600million/annum

y Managed growth without the services of a brand ambassador.

y It has focused its strategies by playing around the price front

and managing to keep it low.


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47814551 product and brand management

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