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  • 1. India - 3rd largest producer of biscuits Organized sector produces 1.7 million tons of biscuits/year valued at INR 110 billion in 2008 Glucose biscuits represent 42% of the market Sector growing at 15 % annually 60% of the market is owned by organized sector Indian Biscuit Industry
  • 2. World’s largest producer of selling biscuits brand by tonnage 40% share of total biscuit market in India Produced 650,000 tons of biscuits/pa. Parle-G comprised of 500,000 tons Sales INR 35 billion( 68% contributed by Parle G ) Parle products are perceived as “Good value for money” Company Background
  • 3. 4 P’s •Television Ads•95% sales in Indian Market •8000 Distributors •Price setter in Market •Seen as value for money •Parle G •Hide n Seek •Monaco • Krack Jack Product Price PromotionPlace
  • 4. Market Segmentation Retail and Institutional Income Groups Socio Economics Classes Age Groups Biscuit Types
  • 5. Children are both users and influencers( 5 – 14 age group) Children formed 60% of the target audience Middle class were the largest consumers Institutional consumers – hospitals, factories, railway station, schools, government offices Increasing Income level of household Target Customers
  • 6. Competitors Britania •Tiger •Good Day ITC •Sunfeast Glucose •Sunfeast Dream cream Surya •Priya Gold •Marie lite Anmol
  • 7. Product Hierarchy Parle G – Rs. 4/- SKUGlucose Biscuits Biscuits Ready To Eat/Packaged Food Items Food Items Hunger
  • 8. The Problem Input cost of raw materials (sugar and wheat flour), which comprised 55% of the manufacturing costs, is increasing Margin of Parle-G decreased from 15% of revenue to less than 10% Since introduction, the biscuit is strongly associated with the offering “Value for money” In 2004 first attempt to increase price of 100gms Parle-G pack from INR 4.0 to 4.5 resulted in 40% decline in sales within 6 months
  • 9. How to over come value for money perception and increase price? What is the marketing strategy to be adopted? Should Parle launch new SKUs and new price points? Should Parle tinker with grammage? Cannibalization of Parle-G with new and similar products
  • 10. Launch premium versions of the product, eg. Parle G - Premium , Parle G Nutri. Concentrate more on premium segments for future growth Tinker with the weight of the product and concentrate on the Rs. 5 price point. Cut down on advertisements expenditure for Parle G Cost reduction by backward integration Suggestions
  • 11. THANK YOU