PARLE G

PRODUCT AND BRAND MANAGEMENT

Marketing Plan

• 1500 WHOLESELLERS• 4,25,000 RETAIL OUTLETS• AFFORDABLE PRICE

Market size

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.

SWOTStrength

Parle Brand Diversified Product Range Extensive Distribution Network (Availability

in most remote villages) Low & mid range price segment catering to

mass Better understanding of consumer psyche

SWOTWeakness

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

SWOTOpportunity

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

Grow in southern and east India

SWOTThreat

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

GrowthLaunched in the year 1939 in Mumbai, it

was one of the first brands of Parle Products.

By the year 1949, Parle Glucose biscuits were available not just in Mumbai but also across the state.

Today, Parle enjoys a 35% share of the total biscuit market and a 15% share of the total confectionary market, in India

PESTEL analysis

Economical• ↑ in per capita income• India’s GDP growing at an average 8%

Technological• Innovation• R&D

Political• Taxes• Production and Distribution licenses

Social• ↑ in per capita consumption• India is 3rd largest producer of biscuit• Age• Lifestyle• Perception

Legal•Initiated ISO 9000 certification Environmental

•Dynamic

Parle G

Competitors analysis

15%

35%

10%9%

31%

PriyagoldParleOthersSunfeastBritannia

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.,

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

PricingAppeal to all income groupsLow and mid range price segmentsValue for moneyStrict cost control at every point in supply

chainInternational pricingComplete excise exemption for biscuits up

to 50/kgParle-G 100 gm pack costs Rs 4.50, while

that of the 50 gm is Rs 2.50.

Pricing Strategy Matrix

USP & UCPParle G’s main Unique Selling

Proposition is obviously the low price...it has maintained its pricing for almost 25 years now...

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...

Objective

“We at Parle continuously strive for high quality & nutritious

biscuits meeting your changing health needs at every corner of

India by producing new value-for-money products.”

PromotionIt was advertised mainly through press ads.

The communication spoke about the basic benefits of energy and nutrition.

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

TV commercial were launched for Parle-G like ‘Hindustan ki takat’ and ‘G mane Genius’

Recently Parle G has started the use of celebrity in their advertisements

Contingency PlanStrong sales /distribution N/WHealthy ProductsValue for money productsUnderstanding of consumer psycheGeographically located factoriesEffective brand marketing Newer & Innovative productsAttractive packaging

Net SalesParle G glucose biscuits, had attained volume

leadership in the market. With a total turnover of around Rs 4,000 crore

coming from biscuits,Parle Products has emerged as the clear market

leader, with a difference of almost Rs 1,000 crore with Britannia Industries reported a turnover for financial year 2009-10 on biscuits contributing around Rs 3,000 crore.

Rs 5,000-crore Parle Products, which also makes confectionery products, draws 80% of its turnover from biscuits

Marketing expenditure Budget : 500-600million/annumManaged growth without the services of a

brand ambassador. It has focused its strategies by playing

around the price front and managing to keep it low.