1. PRN No: DM20A69
A DISSERTATION REPORT
ON
“Study of Parle Agro Product APPY FIZZ”
In Partial Fulfillment of the Requirement for the Award of the Degree of Post Graduate Diploma in
Management (PGDM)
Submitted To:
Professor G Pravin
Submitted By:
Saba Khan
Roll No: CM32
(SESSION: 2020-2022)
CONTENTS
2. 2
DECLARATION............................................................................................................................................................3
ACKNOWLEDGMENT ................................................................................................................................................4
CERTIFICATE FOR COMPLETION ...........................................................................................................................5
DISSERTATION SYNOPSIS........................................................................................................................................6
EXECUTIVE SUMMARY............................................................................................................................................7
ABOUT THE SECTOR (FMCG SECTOR)..................................................................................................................8
Introduction ................................................................................................................................................................8
Market Size.................................................................................................................................................................8
Contribution to GDP...................................................................................................................................................9
Reason For Growth in FMCG Sector.......................................................................................................................11
Contribution from E-Commerce...............................................................................................................................11
Reason For Degrowth...............................................................................................................................................12
Porter’s Five Force Model........................................................................................................................................13
COMPANY INFORMATION .....................................................................................................................................14
Introduction ..............................................................................................................................................................14
Product Portfolio ......................................................................................................................................................15
SWOT Analysis........................................................................................................................................................18
Competitor Analysis (Parle Agro)............................................................................................................................20
PRODUCT INFORMATION (APPY FIZZ) ...............................................................................................................23
Introduction ..............................................................................................................................................................23
Analysis of Parle Agro Brand...................................................................................................................................25
CONCLUSION ............................................................................................................................................................29
SUGGESTION.............................................................................................................................................................30
LIMITATIONS ............................................................................................................................................................31
LEARNINGS ...............................................................................................................................................................31
BIBLIOGRAPHY ........................................................................................................................................................32
3. 3
DECLARATION
I, Saba Khan, the undersigned, a student of Pune Institute of Business Management, Pune, declare
that this project titled “Study of Parle Agro Product Appy Fizz” is submitted in partial fulfillment of the
requirement for the dissertation project during the postgraduate diploma in management. This is my
original work and has not been previously submitted as a part of any other degree or diploma of another
business school or university. The discoveries and assumptions of this report are grounded in my
personal study and experience.
Saba Khan
DM20A69
Pune Institute of Business Management, Pune
4. 4
ACKNOWLEDGMENT
"Preparing a project report without the help and support of others is impossible." At the opening
of my report, I'd want to express my profound gratitude to all of the individuals who have
assisted me in this quest. I would not have progressed in the project without their active advice,
assistance, collaboration, and encouragement.
I am appreciative to Professor G Pravin Sir, the professor in charge, has my deepest
gratitude for helping me in taking useful conclusions, and he also provided important
required guidance much needed directing the path, and also ensured all facilities to make
the object looks good and effective. He is inextricably for providing thoughtful counsel and
encouragement in completing my task.
I am grateful to my Academic Department for their invaluable direction and help in completing
this research in its current state.
I am grateful to Pune the Institute of Business Management for providing me with this
chance.
Thank you very much.
Sincerely,
Saba Khan
PGDM
Core Marketing 1
(Batch 2020-2022)
5. 5
CERTIFICATE FOR COMPLETION
It is with respect to endorsing that a Project Report which is titled Study of Parle Agro
product Appy Fizz is a work which could be trusted und it was completed by Ms. Saba Khan
student from PGDM Core Marketing 1 (Batch 2020-22) from Pune Institute of Business
Management, Pune as a part of PGDM Course content. She functioned with our supervision
and completed the work assigned with utmost sincerity.
Place: Pune
Date: 18h
August 2022
6. 6
DISSERTATION SYNOPSIS
Title for the Project
Study of Parle Agro Product Appy Fizz
Name of the Company Parle Agro
Name of the Student Saba Khan
Roll No DM20A69
Guidance for the Project Prof. G Pravin
Designation Deputy HOD (Marketing)
Confidentiality of Report (Yes/No) No
Project Duration 1 months (30 days)
7. 7
EXECUTIVE SUMMARY
With the help of this report, we wanted to learn more about Parle Agro and its
products, particularly the Appy Fizz. From ‘A cool drink to hangout with’ to ‘Feel
the Fizz’, Appy Fizz advertising journey has been high on innovations and quirk,
making everyone who consumed it ‘Cool’.
In 1929, Parle Products made their debut in British India. Later, the original Parle
company was divided into three independent businesses, each of which offered a
different line of goods and were owned by various branches of the original
Chauhan dynasty. The brands Frooti, Appy, LMN, Hippo, and Bailley are owned
by Parle Agro. Parle Agro introduced the much-needed mango-flavored beverage
to India in 2005 by developing Appy Fizz. Appy Fizz was marketed as a fizzy,
alcohol-free apple juice when it was first introduced in 2005. It can also be used
as a foundation for cocktails. As a great-tasting, healthier alternative to colas, it
was marketed as India's first sparkling fruit drink. The brand is credited with
breaking one rule early on, which was the requirement for appealing packaging.
The bottles of different shapes & sizes with a transparent touch caught the attention
of many.
After ten years since its launch, Appy Fizz changed its positioning in 2016 to
become bold, unique, edgy, secretive, and encouraged its customers to "Feel The
Fizz." The new Appy Fizz brand is highlighted by its association with Priyanka
Chopra. The campaign that embodied the new image's ideals of mystery and
intrigue while exuding confidence was used to showcase the visual identity,
communication, and packaging design.
Salman Khan replaced PeeCee as the new brand ambassador for Parle Agro, which
had previously sponsored Big Boss as the show's title sponsor. Parle Agro did this
after recognizing Khan's widespread popularity and influence. In response to the
ruling, the company said that Appy Fizz has gained significant popularity in both
rural and urban areas over the past ten years. Khan was the greatest candidate since
it was considered that the brand needed a brand ambassador who could elevate the
brand by forging a very close bond with India.
Like Appy Fizz, Parle Agro expects B-Fizz’s acceptance in both the urban and
rural markets. Although the malt flavor represents a significant advancement, the
corporation also took a safe route by expanding on their already popular apple
drink. Alcobev (alcoholic beverage) brands have historically favored malt-based
flavors. Beers without alcohol have been introduced by companies like Heineken
and Kingfisher. (The flavors of Kingfisher's Radler include lime and ginger.)
8. 8
ABOUT THE SECTOR (FMCG SECTOR)
Introduction
India's fourth-largest sector for household and personal care products is the fast-
moving consumer goods (FMCG) industry, which accounts for 50% of all sales.
The sector has been primarily driven by increased awareness, improved access,
and changing lifestyles. The majority of India's total FMCG revenue (about 55
percent of total sales) comes from the urban market. However, the FMCG market
in rural India has expanded at a faster rate in recent years compared to urban India.
The semi-urban and rural segments are rapidly growing, with fast-moving
consumer goods accounting for half of the total rural spending.
Market Size
By 2020, India's retail industry is estimated to reach US$ 1.1 trillion, up from US$
840 billion in 2017. Modern trade is expected to grow at a rate of 20-25 percent
each year, boosting income for FMCG firms.
Revenues in the FMCG sector totaled Rs 3.4 lakh crore (US$ 52.75 billion) in
FY18, and are predicted to reach US$ 103.7 billion by 2020. The FMCG market
is expected to grow by 9% to 10% by 2020.
The FMCG market will be fueled by rising rural consumption. This accounts for
around 36% of overall FMCG spending. In the quarter ending September 2019,
the urban FMCG category grew at an annual pace of 8%, while the rural segment
grew at a rate of 5%.
In 2020, companies with dedicated websites saw an 88 percent increase in
customer demand year over year. Since then, more firms have begun to follow the
D2C model, and India today has over 800 D2C brands, with a market potential of
US$ 101 billion by 2025.
In October and November of 2021, e-commerce businesses recorded revenues of
US$ 9.2 billion across platforms, owing to increased buying during the holiday
season. Flipkart Group emerged as the industry leader with a 62 percent market
share throughout the Christmas season.
The July-September quarter had a solid increase in television advertising volumes,
with 461 million seconds of advertising, the most in 2021. With a 29 percent
increase in ad volumes compared to the same period last year, FMCG maintained
its dominance.
9. 9
GDP% contribution to Indian economy
19%
50%
31%
Food & Beverage Healthcare Household and Personal care
Contribution to GDP
Source – www.ibef.org
The FMCG business is India's fourth biggest industry, accounting for roughly 20% of
the country's GDP. The FMCG (fast-moving consumer goods) business encompasses
three major product categories: personal care, housing, and food. In its early years of
development, this industry grew at a breakneck pace; but, in recent years, its growth
has slowed.
This is mostly due to changes in government policies and the general marketplace.
Surprisingly, these trends have shifted in the sector's favor beginning this year. In India,
the fast-moving consumer goods (FMCG) sector is expected to develop at its fastest
rate ever. In the October-December Quarter of FY2018, it is predicted to expand in the
single digits and even the low double digits.
10. 10
Source – www.ibef org
In 2020, the FMCG market is predicted to expand by 9-10%.
The increase in rural consumption will drive FMCG demand. This represents a 36
percent increase in overall FMCG expenditure. The urban FMCG category grew at an
annual rate of 8%, while the rural segment grew at a pace of 5% in the third quarter of
2019.
Because of the Covid-19 crackdown, which has curtailed demand and significantly
disrupted trade routes, the fast-moving consumer goods (FMCG) sector in India is now
expected to fall by 1% in the worst-case scenario. In the best-case situation, it will
expand by 1% in 2020.
The Christmas season is expected to boost demand and help FMCG firms record growth
in the December quarter, according to Nielsen.
2017
Food & Beverage Personal care Health Care Home Care
16% 1% 1%
82%
11. 11
Reason For Growth in FMCG Sector
Because India is such a broad market, there are always a plethora of elements at play
when it comes to the growth and development of any sector. FMCG is no different.
There are a number of elements that may contribute to its expansion.
Until recently, there was a significant disparity between rural and urban households,
with the latter having a competitive advantage. Yet, as seen by the government's
execution of programs for the uplift of the rural people in recent years, doubling farmer
earnings has resulted in a significant change.
According to recent studies, rural regions account for half of all FMCG retail demand.
Retailers have taken notice of the growing demand and have made every attempt to
satisfy it. Retailers have been able to supply a large portion of the potential demand in
rural areas because to technology developments and their widespread reach.
Contribution from E-Commerce
Technical factor has assisted not only the rural but also the urban sectors. Because of
its larger reach and improved customer convenience, e-commerce has seen a notable
shift in demand. As a result, people can simply purchase things online and have them
delivered to their home through apps and websites, with many even offering a cash-on-
delivery option. E-commerce merchants such as Amazon have every product
12. 12
imaginable available on their websites, obviating the necessity for physical store visits.
The sales of retail establishments may have decreased, but FMCG items have
unquestionably been a different story.
Reason For Degrowth
Demand has been stifled and trading networks have been severely disrupted as a result
of the Covid-19 ban.
Consumer demand will be weakened by a stagnating economy and widespread
unemployment.
Extreme and enlarged lockdowns, limits on production units and people and product
mobility, social distancing requirements, and shop closures, among other things, have
had a significant impact on the Indian FMCG business, to the point that growth in the
first half of 2020 was negative.
13. 13
Threat of Substitutes
• Numerous brands are present.
• In a value war between several brands.
• There is a lot of item differentiation.
Bargaining Power of Buyers
• Access to the same or equivalent other choices
• at a low exchanging cost has an
• influence on promoting strategies.
Threat to New Entrants
• Massive interest in establishing a transportation organisation and promoting
brands.
• Promotional spending is excessive.
Bargaining Power of Suppliers
• Large FMCG organisations can control costs by procuring locally from a
diverse group of critical gear vendors.
Competitive Rivalry
• Reatilers' private mark brands are priced at a discount to the centralised
computer brand, which reduces competition for the feeble brands.
• As more MNCs emerge, the sector is becoming increasingly divided.
Porter’s Five Force Model
14. 14
COMPANY INFORMATION
Introduction
Parle Agro, a pioneer in the
Indian beverage industry, has
been creating innovative
products and iconic brands since
1985
Headquartered in Mumbai, with
over 4000 employees, Parle
Agro is the largest Indian
beverage company.
Since its inception in 1984, Parle Agro started its operations with Prakash Chauhan in
command with his two daughters, Schauna and Nadia- joining the business too. Both
of the female talents were highly skilled but could be distinguished from each other on
the basis of ability, education, and interest. However, the duo drove the same vision
and mission of making Parle a huge success.
The daughters due of Chauhan were inducted into the business at early stages They
began to live, eat, dream and breathe Parle agro. Discussion elevated them from family
dinner tables to the company board. Schauna joined the company in 2002, and Nadia
followed in her footsteps entering in 2006.Their father, Prakash Chauhan, had defined
clear roles for them in the business. Schauna became the CEO of the company, taking
charge of operational execution. On the other hand, Nadia was pushed as joint
managing director and chief marketing officer at Parle Agro.
Being a market leader, Parle Agro has become synonymous with being first. It took the
first mover’s advantage as the Frooti in Tetra pack, the Launch of apple nectar, Appy,
and Introducing Appy Fizz- the sparkling apple juice.Today, the company has
diversified into various areas like confectionery, fruit juices, and baked snacks, and
rapidly expanding its presence throughout the globe in about two dozen countries.
A very few FMCG have seen this kind of success with the launch like Parlé Agro has
with its packaged fruit drink, Appy Fizz, which not only creates this segment itself but
also dominated it with a steep growth of 70% and a compound annual growth rate of
36% over the past four years.
In 2018, its power brand Frooti grossed a revenue of Rs 22,000 million, and Appy
clocked sales of Rs 7,000 million. Frooti is growing at a pace of 25% and aims to be
doubled in the next 2-3 years.
Parle Agro also has a dozen beverage manufacturing facilities and 56 bottling plants
for bottled water brand ‘Bailey’ in Maharashtra, Gujarat, Haryana, Karnataka, Uttar
Pradesh, Madhya Pradesh, Odisha, Uttrakhand, Chhattisgarh, and others..
16. 16
Financial Position
The operating revenue of PARLE AGRO PRIVATE LIMITED is in the range of Over INR 500 cr
for the financial year ending on 31 March, 2021. The net income available to common
stockholders grew by 2% to $8.2 billion. FMCG increased by 7% to $6.97 billion in
revenue, while Consumer drinks by 5% to $5.12 billion. selling, general, and
administrative expenses increased by 1% to $10.07B, reducing net income (expense).
As of June 30, 2021 and 2020, cash equivalents were $9.1 billion and $14.6 billion,
respectively, and were classed as Level 1 within the fair value system. Other
noncurrent assets had a fair value of $192 and $67 as of June 30, 2021 and 2020,
respectively, including equity securities with a fair value of $163 and $39 as of June
30, 2021 and 2020, respectively. Investments are valued at fair value and are grouped
into two levels in the fair value hierarchy: Level 1 and Level 2.
Level 1 pricing are based on quoted market prices for identical assets in active markets,
whereas Level 2 prices are based on quoted market prices for comparable investments
in active markets.
As of June 30, 2021 and 2020, the fair value of long-term debt was $28.8 billion and
$29.0 billion, respectively. This comprises the present component of long-term debt
instruments ($3.6 billion as of June 30, 2021 and $2.5 billion as of June 30, 2020).
Certain long-term debt is reported at fair value (debt classified as a fair value hedge).
All other long-term debt is calculated at fair value for transparency purposes, but is
recorded at amortized cost. In the fair value structure, we regard our debt to be at Level
2. In most cases, fair values are calculated using stated market prices for same or
similar instruments.
Source: Parle Agro Annual Report
18. 18
SWOT Analysis
Parle agro SWOT analysis focuses on the company's strengths, weaknesses, opportunities,
and threats. Internal elements include strengths and weaknesses, whereas external ones
include opportunities and threats.
Parle Agro's market position is analyzed using a SWOT analysis. Companies may use
SWOT Analysis to assist them establish current and future strategy.
In the FMCG business, Parle Agro is one of the most successful brands. Frooti.
Appy,Bailley.Frio Cola.Frio Orange.Frio Lemon.Dhishoom smoodh. Britannica and
horlics biscuits is Parle Agro’s major rival. All of these brands are Parle agro's Star
Products. Parle agro swot analysis
1. Strengths
Supply Chain – Parle has a large supply chain. Parle products can be seen
in every regional area of India. Without any doubt, Parle is the most widely
distributed Indian biscuit brand. this is the strongest advantage for Parle-G
because it is the largest sold biscuit brand in the largest market for Biscuits.
Strong Presence in Rural Markets – In 2014, Parle was ranked 48th in
all Indian Brands. It is the most trustable brand in the eyes of people.
Affordable Prices – Parle has 5 rupees packets also. Poor people find it
affordable to add it to their breakfast. It even has the small 2 rupees
packaging.
2. Weakness
Dependent on the Parle-G Brand for its Revenue– Parle-G is the single
revenue generator premium biscuit range on parle limited. Its other snacks and
Candies don’t have such likeability among its Consumers.
Same Taste and Products – Similar Products produced by the companies like
Glucose Biscuits, Mango Bite, Candies. Nothing new products are being launched
by the company for a very long time. Even the taste of exiting products is getting
deteriorated day by day.
Many Competitors in the Segment – There are many Domestic brands to
compete with the parle brands. The supply chain of parle is affected by regional
products. And new Bakery products the major competition of the parle.
3. Opportunities
Launching New Products in Health Sectors– Parle is spreading its
wings and launching innovative products in health sectors. Parle has a
19. 19
share in pharmaceutical companies. And collaborating with hospitals and
famous doctors.
Export Potential – Parle G is exported to SAARC countries & to US, UK,
and Europe as well as to parts of Africa. Thus, the export segment of the
brand is very strong too.
Rise in Purchasing Power of Consumers– Parle is a company that tends
to maintain quality while keeping the price low. And increasing purchasing
power of customers leads to a high supply of products.
4. Threats
Bakery Products – Bakeries are regionally located and are a major
commission to every snack and biscuit company. Due to the low prices and
reduction of taxes, it’s aiming towards the be the part of every kitchen.
Substitutionary Products – Parle-G biscuits are majorly used as the
morning snack in every typical Indian family. But with the increase in the
demand for other snacks like Toast, Sandwiches, Rusk, the demand for
parle biscuits eventually decreased.
Increasing Raw Material Prices – Raw Materials are a basic subsidiary
of any product. Like Wheat, Sugar, some other ingredients are increasing
in demand and prices keep on fluctuating and because of that prices of the
products also increase.
20. 20
Competitor Analysis (Parle Agro)
1. Dabur's Real is India’s No. 1 Juice and Nectar brand
and has been ensuring tasty fruit nutrition for millions of Indian families for many
decades. Réal has the widest range of fruit beverages with 22 exciting variants -
from the Exotic Indian Mango, Guava, Litchi, Jamun & Peach to International
Favourites like Pomegranate, Tomato, Cranberry & Grape and the All Time
Favourites – Mixed Fruit, Orange, Pineapple, Mosambi and Apple. Réal also boast
of its exclusive premium range – Alphonso Mango, Pink Guava and Mixed Berries
and the Ethnic range suited to the taste buds of an Indian consumer - Masala Aam
Panna, Masala Guava, Masala Sugarcane, Masala Pomegranate & Masala Mixed
Fruit.
2. Varun Beverages Limited is an Indian company
that produces, bottles and distributes beverages. It is the second largest bottling
company of PepsiCo's beverages in the world outside United States. The company
was incorporated in 1995 as a subsidiary of RJ Corp, and named after founder Ravi
Jaipuria's son. Apart from carbonated soft drinks of PepsiCo such as Pepsi, 7 Up,
Mountain Dew and Mirinda, the company distributes Tropicana fruit juice brands,
Gatorade sports-themed beverages, Quaker Oats' milk-based drinks and Aquafina
brand of bottled water. As of 2019, Varun Beverages is PepsiCo bottler in 27 states
and 7 Union Territories of India.
21. 21
3. Orient Beverages Limited is in the
businesses of packaged drinking water real estate and share trading. The company
produces and sells packaged drinking water in India. It offers water including
natural or artificial mineral water and aerated water. The company also involves
in the rental of real estate properties and share trading businesses. Orient
Beverages Limited is based in Kolkata India.Orient Beverages was incorporated
on June 16 1960. It was earlier known as Orient Properties and it got its present
name in 1971. The company's main activities till 1971 were construction of
commercial complexes and dealing in real estate.A soft drink bottling unit was set
up in 1971 at Patna in Bihar. In the year 2005 the company became a franchisee
of Bisleri International. It commenced the business of packaged drinking water
under the trademark 'Bisleri' in the states of West Bengal Orissa and Chhattisgarh.
4. Red Bull India Private Limited was founded
in 2007. The company's line of business includes the wholesale distribution of
groceries and related products. Red Bull is a brand of energy drinks sold by
Austrian company Red Bull GmbH. With 38% market share, it is the most popular
energy drink brand as of 2019. Since its launch in 1987, more than 100 billion cans
of Red Bull have been sold worldwide,[9] including 9.8 billion in 2021. Originally
available only in a single nondescript flavor sold in a tall and slim silver-blue can,
called Red Bull Energy Drink, numerous variants of the drink were added over the
course of time.
22. 22
5. Pearl Beverages Limited is a Public incorporated on
14 June 1996. It is classified as Non-govt company and is registered at Registrar
of Companies, Delhi. It is inolved in Manufacture of beverages. Pearl Drinks
Limited is a franchisee of PepsiCo India for manufacturing and distribution of all
beverages brands of PepsiCo. The company’s state-of-the-art bottling plants in
Delhi, Noida, Guntur and Vizag are equipped to fill glass as well as PET bottles.
Pearl Drinks has also ventured into the manufacturing of PET Preforms and its
facility in Jammu produces one million Preforms a day using three Husky Hypet
Injection Moulding Machines. In addition to supplying the Preforms to its plants,
the company supplies them to PepsiCo, Bisleri etc. Mr. C.K. Jaipuria is the
Chairman of the company.
6. Bengal Beverages Pvt. Ltd is a
Certified Company with its manufacturing unit at Dankuni was set up in 1984 by
our Chairman cum Managing Director Mr. Shiv Ratan Goenka. The core soft drink
brands are Coke, Thumsup, Sprite, Fanta and Limca. They offer low calorie
options like Coke Zero and Diet Coke. Our Juice segment includes brands like
Maaza mango and the entire range of Minute Maid juices. The packaged drinking
water segment includes our brand Kinley. It has also introduced new brands like
Schweppes, Fuze Tea(iced tea), Aquarius, Zico Coconut water. It also offer brands
like Georgia in the tea and coffee segment.
23. 23
PRODUCT INFORMATION (APPY FIZZ)
Introduction
The success that Appy Fizz has achieved speaks for itself. A non-compete
agreement with Coke was introduced in 2005, after which they made a comeback
with carbonated drinks. Not using another cola was the plan. This sparked a
number of tests, inventions, and the creation of Appy Fizz.
Apple juice was not previously available as a category or product, thus Parle
produced packaged apple juice. In terms of manufacturing and technology, Appy
was a ground-breaking innovation that needed some time to stabilize. It is currently
one of the beverage brands with the greatest growth, and non-cola drinkers adore
it.
According to a Fortune India article that quotes Nadia, the company was the
dominant player in the fruit beverage market when the category first emerged. As
a result, everyone yearned for a frooti-like product.
Coca-Cola and Pepsico both launched their own effervescent fruit-based brands
shortly after Parle launched Appy. Both attempted to follow suit but failed. Even
Dabur gave it a shot, but their attempt only lasted for around six months. Of course,
there are a ton of local businesses as well; there are hundreds of products that
exactly match the logo and bottle design of the app. It is an excellent way to gauge
success.
Initially started as a product, focused on the top segment of the outlets as it was a
premium then. However, the company’s success comes with a caution to grow
leaps and bounds. But today, appy has its own market in urban, semi-urban, and
rural markets, featured as one of the country’s fastest-growing brands in its
category. It still has tremendous potential. Business verticals and facilities.
24. 24
Parle Agro also has a dozen beverage manufacturing facilities and 56 bottling plants for bottled
water brand ‘Bailey’ in Maharashtra, Gujarat, Haryana, Karnataka, Uttar Pradesh, Madhya
Pradesh, Odisha, Uttrakhand, Chhattisgarh, and others.
It operates under three major business verticals as Beverages(including fruit
drinks, nectars, juice, sparkling drinks) Water (packaged drinking water) and Food
products (Hippo, toffee, buttercup products, biscuits).
Beverage can be pointed out as the cash cow of the company, which contributes
more than three-fourth of the company’s revenue. The company has a solid
network of more than 1.2 million outlets across the country.
Moving with this aggressive growth strategy, the company is aiming to
significantly increase distribution and penetration of these two super brands, Appy
Fizz and Frooti, and promote sales with innovative packaging, and aggressive
pricing.
Business verticals and facilities
Parle Agro also has a dozen beverage manufacturing facilities and 56 bottling plants for bottled
water brand ‘Bailey’ in Maharashtra, Gujarat, Haryana, Karnataka, Uttar Pradesh, Madhya
Pradesh, Odisha, Uttrakhand, Chhattisgarh, and others.
It operates under three major business verticals as Beverages(including fruit drinks, nectars,
juice, sparkling drinks)
Water (packaged drinking water) and Food products (Hippo, toffee, buttercup products,
biscuits).
Beverage can be pointed out as the cash cow of the company, which contributes more than
three-fourth of the company’s revenue. The company has a solid network of more than 1.2
million outlets across the country.
Moving with this aggressive growth strategy, the company is aiming to significantly increase
distribution and penetration of these two super brands, Appy Fizz and Frooti, and promote sales
with innovative packaging, and aggressive pricing.
25. 25
Analysis of Parle Agro Brand
Appy Fizz is the champagne of fruit drinks. The first sparkling apple juice beverage in
India, called Appy fizz, was introduced in 2005. As a less caloric alternative to colas,
Appy fizz soon gained popularity among young people. It is bubbly, sweet, tangy, and
light in flavor. In light of this, we created a brand that would exude a youthful spirit.
We believe we have successfully portrayed the fun and edgy attitude of Appy Fizz
through sleek packaging, vibrant colors, and gorgeous marketing. Open a bottle and sip
it straight or in a cocktail. Feel the bubbles.
Cocktails can be made using Appy Fizz, which is made of carbonated apple juice. There
is no alcohol in it. Under license from Parle Agro, Global Beverage Co Ltd. also
produces and sells Appy Fizz in Bangladesh. Parle Agro estimated that the Appy Fizz
brand was worth 650 crore (about $97.5 million) in 2018 and that it intended to increase
that value to above 1,000 crore. Grappo Fizz, a carbonated grape juice, was introduced
by Parle following the success of Appy, a clean apple juice. During cricket tournaments
from 2005 to 2008, there was an unsuccessful advertising effort for the beverage. A
fruit drink with a malt flavor called B-Fizz debuted in 2020.
Source: statista.com
26. 26
As the lockdown was released, Parle Agro changed its marketing strategy. It began
concentrating on in-home consumption and boosting its online presence. Its volume
increased by 14% in 2021 over 2019 and by roughly 47% in 2021 over 2020. Due to
the oppressive heat, out-of-home consumption is now increasing, and Parle Agro is
observing strong growth and demand for beverage brands across the board.
Additionally, customers are choosing fruit- and dairy-based drinks over artificial ones
in the beverages sector as the trend for health and wellness products grows. Due to these
qualities, our brands, including Frooti, Appy, Appy Fizz, B Fizz, and our dairy brand
Smoodh, are in high demand and are preferred by consumers. We aim to expand by
between 30 and 35 percent this year over calendar year 2021, and we anticipate strong
growth in 2022.
The carbonated beverage business is counting on the summer of 2022 to rebound after
the pandemic killed two straight summer seasons' revenues. To reach the final mile and
broaden their rural reach, soft drink giants, like PepsiCo India and Coca-Cola India, are
deepening their alliances with e-commerce and hyperlocal players. According to a
report by Research and Markets, the carbonated beverage market in India was worth
$13,460 billion in FY20 and is projected to grow to $34,964 billion by FY27, at a
CAGR of 15.12% from FY22 to FY27. Parle Agro is developing an SKU-driven
strategyto connect with customers for consumption at home. It has launched Appy Fizz
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and B Fizz in 160 ml PET bottles at a low price point of `12, which may help bolster
its reach in regional markets.
Parle Agro has rolled out four campaigns to connect with consumers across multiple
mediums including television, OTT, digital and outdoor. Its commercials are being
aired during Indian Premier League broadcast on Star Sports channels as well as on
Disney+Hotstar, besides during world television premieres of some movies.
Bollywood celebrities are the clear favourite when it comes to endorsing beverage
brands. Shah Rukh Khan is endorsing Thums Up from the Coca-Cola stable for its
Toofan campaign, while rival PepsiCo has on-boarded Salman Khan, Hrithik Roshan
and Mahesh Babu. Parle Agro is banking on the star power of Priyanka Chopra, Alia
Bhatt and others, for its many brands.
Smoodh is growing explosively: 300 million packs were sold in the seven months since
its launch in September 2021. The company is on track to sell 1.3 billion packs by the
end of this year. Already, it claims to have captured 33 percent share of the Rs 800 crore
flavoured milk market by number of packs sold.
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Parle Agro had to be innovative in how it approached the product financially. Unlike
its competitors, it has set up multi-location dairy plants to be closer to consumers. In
Sitarganj (Uttarakhand) and Ambala (Haryana) in the north, near Kolkata (West
Bengal) in the East and Mysore (Karnataka) in the South. Another factory covering
central India (Bhopal in Madhya Pradesh) is due to open shortly.
Bailley was impacted in the pandemic because the entire consumption of PDW is out-
of-home, apart from 20-litre jars. The 500-ml and one-litre segment was deeply
impacted. Its growth is strongly dependent on institutional sales and due to the
lockdown, travel and tourism, events, weddings and the entire HoReCa (hotel,
restaurant, cafe) segment were at a standstill. Post the pandemic, a new trend for 250-
ml bottled water has begun and is growing popular. Consumers are looking for value-
sized packaged drinking water to offer for indoor events or family gatherings at home
as these are hygienic and of the right quantity. We are catering to this demand and have
created a new 250-ml SKU for Bailley priced below `10.
Despite the number of brands in the flavoured milk space the category is still under-
developed. At Rs 800 crore, it’s a mere eight percent of the Rs 10,000 crore FFSD (Fruit
Flavoured Still Drink) category and its largely metro based. The opportunity lies in the
rural markets—where Smoodh’s contribution is already 50 percent—as well as
innovate in sub-segments of the category. For instance, breaking through the barrier of
being a “kids-only product” and fortifying the flavoured milks with high protein or
calcium, positioning them as post workout drinks, developing interesting flavour
profiles.
Source: Forbes India
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CONCLUSION
It was evident that Parle Agro needed to lift Appy Fizz brand above the mass
market in order to attract consumers. Pre-COVID, Parle Agro had high growth
momentum.
Since, Parle brand in the beverage industry is available from Rs 5 to Rs 100-plus.
So they have a varied range that caters to different segments, audiences,
consumption needs and types of markets.
Keeping rural India in mind, they should aim for strong reach and penetration in
whatever they do to keep a strong hold.
Parle should keep leveraging the technology to engage with rural consumers. They
should integrate technology solutions to enhance sales and distribution and drive
greater visibility for the products.
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SUGGESTION
Seeing a massive success on new launch Smoodh, Parle should introduce more
new dairy based products for kids.
The anti-sugar movement has had a big impact on purchasing decisions. Energy
drinks with reduced sugar content grew an impressive 16 percent globally. Parle
should be looking into tapping the healthy drink market to cater more segment.
Soft drinks today should not only taste good, but in the best case scenario also
score points as "functional drinks" with a plus in certain ingredients that support
an active and conscious lifestyle as part of a balanced diet, thereby Parle Agro
can look to expand its Portfolio.
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LIMITATIONS
Data is based mainly on secondary research and not on primary research.
There aren't any previous research studies on the subject.
Data access is restricted.
Data that isn't readily available or isn't trustworthy.
Samples and selection issues.
LEARNINGS
Researched on Products and services which are offered by Parle Agro.
Worked on the buying behavior of product Appy fizz.
History of Parle Agro and product Appy Fizz in India and world.
Regulatory Framework of Investment Banking.
Future of Product Appy Fizz and Target Customers
Researched on Problems faced by Appy Fizz Product.
Learnt the importance of time-management
