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Parle Products SWOT PESTEL SPACE Matrix
- 1. Strategic Management Name of the Student Yogita Gurukhel Gaurangi Samant Ashish Tiwari Mehul Vesukar Roll No. 10 40 52 55
- 2. Parle Products Pvt. Ltd. Introduction Products SWOT Analysis Porter’s Five Forces Model Competitive Strategy PESTELAnalysis SPACE Matrix Slide No. 3 5 6 7 8 9 11
- 3. Introduction It is a food beverages FMCG Co. Formed in 1929, 5000 cr business 40% market share Owners Chauhan Family Orignal Parle company slits into 3 separate companies : 3
- 4. Introduction (continued…..) 12 manufacturing units and 75 confectionaries The vision and Mission of the Parle Company : VISION : To be leaders in their business domain MISSION : Maintaining high quality, introducing new & innovative products, reaching every parts of India, remaining customers entry, constantly upgrading our knowledge's. Taglines : G – Genius Tasty itna ki dil aa jaye Melody khao khud jaan jao 4
- 5. Products Biscuits Parle – G, KrackJack, Monaco, Kreams, Golden Arcs, Parle Marie, Milk Shakti, Parle Hide & Seek Bourbon, Parle Hide & Seek Fab, Top, Parle Gold Star, Happy Happy, 20-20, simply good, Namkeen parle magix, coconut, cheeselings, Parle-G Gold Sweet confectionery Melody, Mango Bite, Poppins, 2 in 1 Eclairs, Mazelo, Kismi Toffee Bar, London Dairy, Kaccha Mango Bite Snacks Monaco Smart Chips, Parle's Wafers, Fulltoss, Parle Namkeens, Parle rusk, Parle Cake 5
- 6. SWOT Analysis S : Strength W : Weakness O : Opportunities T : Threats Most popular brand Similar products produced by many companies Eg. Marie, Glucose Biscuit, Bourbon, etc Innovative by introducing products for health conscious people Rise in the cost of Raw Materials Affordable prices Dependence on Parle-G brand for most of its revenue Growth of food’s industry in India Competition from other brands like Pepsico, ITC, Britania, etc. Strong supply chain network Aggressive marketing and advertising Popular subsidiary brands Eg . Monacco, melody, poppins, etc Rise in purchasing power of consumer High brand recall Product line extensions Diverse product portfolio Eg. Biscuits, Sweets and Snacks Strong presence in rural markets Amounts the most sold biscuits in the world Variety of CSR activities like design for change, Olympic of gold quest, etc. 6
- 7. Porter’s Five forces Model Rivalry Competition -Strong Competition - Intensive Advertisements - Price Wars -Competition to a limited density of population -Eg. Britania, ITC, etc Threats of New Entrants - Resistance is very low -Structure of industry is complex - Easy entry & tough competition with new firms - Huge investment in promoting brands - Existing players have high competitive advantage - High competitive industries requires large investment, small players create less impact Bargaining powers of customers - Switching cost of goods is very low - No threat of buying 1 product over other - Customers are never reluctant to buy r try new things - Hence, bargaining power is too high Threat of Substitute Products - Wide range of choices - Plenty of substitute goods available - Low switching cost - Sufficient room for new product development - Eg. Traditional Indian home made snacks, bakery products, etc - Multiple brands with low differentiation -New co.'s compete at prices Bargaining power of supplier - Ample no. of substitute suppliers available - Raw Materials readily available - Most of raw materials are homogeneous - No monopoloy - Suppliers have high competition among themselves -In all low bargaining power 7
- 8. Competitive Strategy Laying more emphasis on modern trade for the premium products - Example : Milano, Hide & Seek, Simply Good, etc. Focus on the existing range of products to consolidate its market position Mainly, Be – available to each and every part of the country Valuable products at all affordable prices Serves to all classes of groups 8
- 9. PESTEL Analysis Political & Legal • Stability of government • Conducive Environment for business • Tax Policies • International trade regulations & restrictions • Employment laws • Competition Regulation, Safety Regulation • Contract enforcement law • Government Support • Consumer protection law Economic • Economic growth • Interest rates and monetary policies • Per capita disposable income • Inflation rate • Stage of business cycle Social • Income distribution • Demographics of population • Growth rate, age distribution • Labour of social mobility • Life cycle, education, fashion • Living condition • Health consciousness 9
- 10. PESTEL Analysis (continued….) Technology • Government research spending • Industry focus on technological efforts • New inventions and development • Rate of technology transfer • Energy use and cost • Changes in IT , telecommunication, etc Environment • Environmental regulations and protection • Eco-friendliness • Low pollution as per the norms of the country 10
- 11. SPACE Matrix Financial position (FP) • Return on investment • Leverage • Liquidity • Working Capital Competitive Position (CP) • Market share • Product Quality • Product Life cycle • Customer loyalty • Capacity Utilization • Technological change moderate • Control over supplier and distributor 4 2 3 3 12 -1 -2 -2 -2 -1 -2.5 -1 -10.5 11
- 12. SPACE Matrix (continued…) Stability position (SP) • Rate of inflation • Demand Variability • Range of competing products • Barriers to entry into the market • Competitive Pressure • Ease of exit from market Industry Strength (IP) • Profit potential • Financial stability • Extent leverage • Resource Utilization • Ease of entry into market • Productivity capacity utilization -2.5 -2 -1.5 -1.5 -1.5 -2.5 -11.5 3 3 3 4 1 4 18 12
- 13. • X axes IP + CP = 4.5 • Y axes FP + SP = 4.9 SPACE Matrix (continued…) 13
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