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Project on marketing study of parle

  1. 1. 1 A Report On MARKETING STUDY OF PARLE SUBMITTED BY: MISS. PAYAL SHANKAR AWERE TYBMS Sem (V) PROJECT GUIDE: PROF. PRAJNA SHETTY SUBMITTED TO: UNIVERSITY OF MUMBAI Rajasthani Sammelan’s Ghanshyamdas Saraf College of Arts & Commerce Affiliated to University of Mumbai Reaccredited by NAAC with ‘A’ Grade R. S. Campus, S. V. Road, Malad (West), Mumbai – 400064 A. Y. 2013 - 2014
  2. 2. 2 Rajasthani Sammelan’s Ghanshyamdas Saraf College of Arts & Commerce Affiliated to University of Mumbai Reaccredited by NAAC with ‘A’ Grade R. S. Campus, S. V. Road, Malad (West), Mumbai – 400064 CERTIFICATE I, Prof. Prajna Shetty hereby certify that Miss. Payal Shankar Awere, a student of Ghanshyamdas Saraf college has completed project on ―MARKETING STUDY OF PARLE‖ in the Academic Year 2013 – 2014. Thus information submitted is true and original to the best of my knowledge. External Examiner: Principal: Date: Project co – ordinator: College Seal: Date:
  3. 3. 3 ACKNOWLEDGEMENT I take this opportunity to thank the UNIVERSITY OF MUMBAI for giving me a chance to do this project. I express my sincere gratitude to Principal Mrs. Sujata Karmarkar, Course Coordinator Mr. Rohan Korgaonkar, Guide Prof. Prajjna Shetty and our librarian and other teachers for their constant support and helping for completing the project. I am also grateful to my friends for giving support in my project. Lastly, I would like to thank each and every person who helped me in completing the project especially MY PARENTS. SIGNATRUE
  4. 4. 4 EXECUTIVE SUMMARY The report is an earnest endeavour made to understand the present market scenario in biscuits captured by the Parle and the other competitor‘s brand viz., Britannia, Priyagold , and ITC. We are required to see the coverage by the Parle Product Pvt. Ltd., and bring out the potential and loyal retailers so that the company could maintain the market leadership in the existing business scenario in the biscuit and the confectionaries. The study encompasses the penetration of the existing Parle Products (Biscuits and Confectionaries) and the market potential for the new product like Golden Arch, Nimkin, Monaco Funion, Melody Softee, Mazelo. Their motives were to study the working of the distributors in Mumbai market. They have mentioned the problems and the loop holes in the Parle‘s distribution system and the promotional tools, which they have found during the course of study and recommended various corrective measures for it. I also studied the behaviour of consumer about their preferences for Biscuits, Candies, and their overall buying behaviour with the help of questionnaire.
  5. 5. 5 OBJECTIVES OF THE STUDY PRIME OBJECTIVES  To study marketing in detail.  To know importance of marketing.  To understand the concept of marketing clearly by means of Parle biscuit demand analysis.  To find out the marketing strategy used by the Parle & Parle Agro. OTHER OBJECTIVES  To find out the competitive activity and merchandising through retailer of PARLE G BISCUIT.  To find out the consumer preference according to retailer view.  To find out the satisfaction levels towards service provide by PARLE G.  To find out the major competitor of PARLE G BISCUIT.
  6. 6. 6 RESEARCH METHODOLOGY DATA COLLECTION METHOD Data collection is an elaborate process in which the researches makes a planned research for all relevant data. Data is the foundation of all market research. Data are facts may be obtained from several sources. Data can be classified as:  PRIMARY DATA  SECONDARY DATA PRIMARY DATA It is gathered for the first time by the researchers. If the secondary data is found to be inadequate or unavailable, the researcher goes for primary data. COLLECTION OF PRIMARY DATA The researcher was assigned to do a comparative study on PARLE G BISCUIT. In order to accomplish the job, the researcher adopted the two-way strategy to collect the primary data. Secondly to complete the job in a more genuine way, retailer survey was conducted sample of 20 rational retailers were taken and they were supplied with a structured non-disguised questionnaire. The idea was to seek out the market position of Parle G biscuit. The data collected was to collected from different wholesale & retail outlets of biscuit namely  Shop  Confectioners  Kirana and general stores.
  7. 7. 7 SECONDARY DATA Secondary data is the data borrowed from secondary sources by the researcher. Secondary data can be internal or external i.e., internal records of the company or information available from library and other statistical organization. In a market Research Project Field Work Has a very vital role to play. As a matter of fact, it‘s the back bone of any Market Research Project Field work basically consists of collection of primary data, In this project, researcher had to undergo a lot of Field Work. For the purpose researcher has visit various cinema halls , public attractive places, colleges & school canteens etc. The whole area which was to be surveyed was divided into different segments randomly. Simultaneously survey of both retailers and consumers was carried out. The researcher worked in the field for a span of one & half months. Later on whole data which was collected from field was well scrutinized & tabulated for analysis. Its interpretation has been provided in most easy to understand manner with the help of suitable diagram & charts.
  8. 8. 8 CHAPTER 1 INTRODUCTION Parle Products has been India's largest manufacturer of biscuits and confectionery for almost 80 years. Makers of the world's largest selling biscuit, Parle-G, and a host of other very popular brands, the Parle name symbolizes quality, nutrition and great taste. With a reach spanning even to the remotest villages of India, the company has definitely come a very long way since its inception. Many of the Parle products - biscuits or confectioneries, are market leaders in their category and have won acclaim at the Monde Selection, since 1971. With a 40% share of the total biscuit market and a 15% share of the total confectionary market in India, Parle has grown to become a multi-million dollar company. While to the consumers it's a beacon of faith and trust, competitors look upon Parle as an example of marketing brilliance. Over the years Parle has grown to become a multimillion-dollar company with many of the products as market leaders in their category. Parle Products began manufacturing biscuits, in addition to sweets and toffees. Having already established a reputation for quality, the Parle brand name grew in strength with this diversification. Parle Glucose and Parle Monaco were the first brands of biscuits to be introduced, which later went onto become leading brand names itself for great taste and quality.
  9. 9. 9 Today, the great strength of Parle Products is the extremely widespread distribution network. Even at the remotest places, you can buy Parle biscuits and sweets from the local grocer. It has taken years to create this extensive network. Parle‘s sales force started with one salesman in Bombay and some agents in few other cities. Gradually, Parle Products expanded. Soon sweets and biscuits were being sent by rail to Calcutta, Delhi, Karachi, Madras and other major cities. As production increased, distribution was amplified. Full time salesmen were appointed in different areas. Currently, Parle Products has over 33, 00,000 distribution outlets. Hygiene is the precursor to every process at Parle. From husking the wheat and melting the sugar to delivering the final products to supermarkets and store shelves nationwide, care is taken at every step to ensure the best product of long-lasting freshness. Every batch of biscuits, confectioneries & snacks are thoroughly checked by expert staff, using the most modern equipment. This ensures consistent and perfect quality across the nation and abroad. Concentrating on consumer tastes and preferences, the Parle brand has grown from strength to strength ever since its inception. The factories at Bahadurgarh, Haryana and Neemrana, Rajasthan are the largest biscuit and confectionery plants in the country. The factory in Mumbai was the first to be set up, followed soon by the one in Bangalore, Karnataka. Parle also has 10 manufacturing units for biscuits and 75 manufacturing units for confectioneries on contract. All Parle products are manufactured under the most hygienic conditions. Great care is exercised in the selection & quality control of raw materials, packaging materials & rigid quality standards are ensured at every stage of the manufacturing process. Every batch of biscuits & confectioneries are thoroughly checked by expert staff, using the most modern equipment. The Care is taken at every step to ensure the best product of long-lasting freshness. Every batch of Biscuits, Confectionaries & Snacks are thoroughly checked by expert staff using the most modern equipment. This ensures consistent and perfect quality across the nation and abroad.
  10. 10. 10 CHAPTER 2 ABOUT THE COMPANY A long time ago, when the British ruled India, a small factory was set up by Mohanlal Dayal Chauhan in the suburbs of Mumbai city, to manufacture sweets and toffees. The year was 1929 and the market was dominated by famous international brands that were imported freely. Despite the odds and unequal competition, this company called Parle Products, survived and succeeded, by adhering to high quality and improvising from time to time. A decade later, in 1939, Parle Products began manufacturing biscuits, in addition to sweets and toffees. Having already established a reputation for quality, the Parle brand name grew in strength with this diversification. Parle Glucose and Parle Monaco were the first brands of biscuits to be introduced, which later went on to become leading names for great taste and quality. The original Parle company was split into three separate companies, owned by the different factions of the original Chauhan family: Parle Products, led by Vijay, Sharad and Anup Chauhan (owner of the brands Parle-G, Melody, Mango Bite, Poppins, Monaco and KrackJack) Parle Agro, led by Prakash Chauhan and his daughters Schauna, Alisha and Nadia (owner of the brands such as Frooti and Appy) All three companies continue to use the family trademark name "Parle". The original Parle group was amicably segregated into three non-competing businesses. But a dispute over the use of "Parle" brand arose, when Parle Agro diversified into the confectionary business, thus becoming a competitor to Parle Products. In February 2008, Parle Products sued Parle Agro for using the brand Parle for competing confectionary products. Later, Parle Agro launched its confectionery products under a new design which did not include the Parle brand name In 2009, the Bombay High Court ruled that Parle Agro can sell its confectionery brands under the brand name "Parle" or "Parle Confi" on condition that it clearly specifies that its products belong to a separate company, which has no relationship with Parle Products.
  11. 11. 11 2.1 BOARD OF DIRECTORS NAME OF MEMBERS DESIGNATION Vijay K Chauhan Chairman & Managing Director Sharad P Chauhan Managing Director Raj K Chauhan Managing Director Ajay V Chauhan Executive Director Anup S Chauhan Executive Director Samar S Chauhan Executive Director
  12. 12. 12 2.2 PRODUCTS OF PARLE BUSCUITS SWEETS SNACKS Parle-G Londonderry Parle‘s wafers Monaco Melody Namkeen Golden Arcs Mango Bite fulltoss Parle Actifit Digestive marie Kaccha Mango Bite Munchies Parle Marie Chox Cheeslings Hide & Seek Poppins Hide & Seek Fab Mazelo Hide & Seek Bourbon 2 in 1 Festo 2 in 1 Eclair Happy Happy Kismi Milano Kismi Toffee Bar Nimkin Fruit Drops Coconut 20 – 20 cookies Jam In Gold Star Kreams Top Magix Coconut These products are discussed below in short about that featurs , pricing etc.
  13. 13. 13 BUSCUITS PARLE G Every nation dreams of a better tomorrow. And every nation's tomorrow lies in the hands of its children; the young stars who shape the future of the nation. So, it's important to nourish these young stars, after all it's a question of the nation's future. Filled with the goodness of milk and wheat, Parle-G is a source of all round nourishment. Treat yourself to a pack of yummy Parle-G biscuits to experience what has nurtured and strengthened millions of people for over 70 years. A meal substitute for some and a tasty and healthy snack for many others. Consumed by some for the value it offers, and many others for its taste. Whatever the occasion, it has always been around as an I nstant source of nourishment. Little wonder that it's the largest selling biscuit brand in the world. PARLE FUTURE GENIUS There‘s no school like childhood. And there‘s no teacher like curiosity. At Parle, we believe that every child has the potential to become a genius if allowed to follow their curious minds and explore without limitations. That‘s why we made the website. A tool for both parents and children to help identify the spark of genius in a child, nurture it and give it a platform to be showcased on.
  14. 14. 14 BACHPANSE BADA KOI SCHOOL NAHI CURIOSITY SE BADI KOI TEACHER NAHI MONACO Life namkeen banaiye! When life hits a dull patch, just pull out a Parle Monaco to make it exciting. The light, crispy biscuit sprinkled with salt, is the perfect namkeen twist you can add to your ordinary boring moments. Go ahead, Life namkeen banaiye, anywhere, anytime with Parle Monaco. To spice up your life further, try the variant of Parle Monaco - The Zabardast Jeera. This salted, crispy biscuit delicately seasoned with jeera, has a unique taste that makes those namkeen moments even more exciting. Monaco Classic Salted - Rs. 5 Rs. 10 Rs. 15 (New SKU) Rs. 25 Monaco Zeera - Rs. 10
  15. 15. 15 HIDE N SEEK Play a game of hide and seek with your taste buds. Indulge in the mouth-watering delight of India‘s best moulded chocolate chip biscuits, Hide & Seek. All it takes is one bite, and you are transported to chocolate Heaven. Packed with a bounty of chocolate chips, once you try Hide & Seek, you will never want any other biscuit again. A treat for the mouth, and the heart, khate hi dil aa jaye! Rs. 5, Rs. 10, Rs. 20, Rs. 30, and Rs. 50 HIDE N SEEK BOURBONE The name itself suggests everything. The moment you take a bite your tongue starts playing hide n seek with the rich chocolaty cream resting between two lovely sugar-coated biscuits. The melting chocolate cream will feel rich and luscious in your mouth. It‘s a complete treat for your taste buds. Moreover, it's like falling in love at first bite. Rs. 5, Rs. 12 and Rs. 24
  16. 16. 16 GOLDEN ARCS Introducing irresistible Golden Arcs, filled with rich Strawberry, Apple, Orange & Choco Fillings. They are best described as 'melt-in-your-mouth', soft shelled fruit rolls and crunchy choco fills which are perfect for an anytime snack.Do bite into one of our 4 Delicious flavours. Rs. 20 and Rs. 35 TOP It is the ultimate crispy cracker with the finest taste of butter, especially made to mesmerize you with its smoothness. The unspoken dream or the wildest imagination gets real, with the smooth texture of butter. So take a bite and escape into your own world where it will be just about you and everything else fades into oblivion. Let no one come between you and "Buttery Taste & Buttery Dreams". Rs. 5, Rs. 10 and Rs. 20
  17. 17. 17 PARLE ACTIFIT DIGESTIVE MARIE Now say 'goodbye' or at least 'see-you-later‘ to the couch, the video games, the computer and the TV. And enter the Actifit world where you say 'Hi. Hello, Good morning' to the gym, the roads, the pool. And to help you stay this active, you need Actifit Digestive Marie. It's a biscuit that's packed with 5x more fibre (than other Marie biscuits) and 67% less fat. And it's a biscuit that will help you commit to a healthier you. Rs. 5, Rs. 15 and Rs. 25
  18. 18. 18 SWEETS Londonderry Get a taste of the rich English-Irish culture, right here in India. With Londonderry, an exquisite hard-boiled candy made from Milk and Caramel. With a name inspired by an actual town in Ireland, the creamy, exotic taste of this delicious candy will make you discover the glories of the majestic English-Irish culture. Just pop-in a Londonderry candy and experience The magical world of Londonderry. Rs. 50 paise Melody Caramel meets chocolate to yield an outcome nothing less than delectable. Parle Melody comes with an irresistible layer of caramel on the outside and a delightful chocolate filling within. Pop it in your mouth and relish the unique experience. It won‘t be too long before you find yourself asking the age old question ‗Melody itni chocolaty kyon hai?' Rs. 1
  19. 19. 19 Kaccha Mango Bite The mastiful flavour of summer now comes in a candy. Just pop a Kaccha Mango Bite and experience the natural tangy sweetness of a real raw mango. It's the only candy that is a real kacche aam ka zerox. So when you're craving for the tantalizing khatta-meetha taste of raw mango just reach out for a Kaccha Mango Bite and enjoy real kacche aam ki masti, anytime, anywhere. Rs. 50 paise 2 in 1 Éclair It‘s a creamy, delicious bargain! Savour the delicious cream filling overflowing from a golden caramel shell. Delight your taste buds with rich taste of cream and caramel. It‘s Eclairs 2 in 1, a sweet delight to double your pleasure and treble the fun! And remember, two‘s always better than one. Rs. 50 Paise Kismi Now the yummy toffee and elaichi taste of Kismi Toffee comes specially packaged in its maha-avatar. Now when you study or play, bring your appetites and more for this fantastically big bite of Kismi Toffee Bar. Making it one of the most popular toffee bars in India. After all everyone knows, when it comes to toffee, big is best. Rs. 2
  20. 20. 20 SNAKS MUNCHIES JEFFS Crunchy, salted biscuits flavoured with cumin seed (Zeera) for that extra boost of flavour. The perfect snack for just about anywhere – Jeffs. SIXER Think Square is boring? Then what you need is a Sixer. This six-sided, salted delight cuts out the boring from a biscuit. A unique shape coupled with an equally unique crunchy, munchy, salty taste that leaves you asking for more! Jeffs : 4.5 kg tin - Rs. 655 Sixer : 200 gm jar - Rs. 45 5 kg tin - Rs. 635 CHEESELINGS For the love of cheese and only cheese! Parle pulls out ‗Cheeselings‘ from its pool of innovative products. It‘s a baked snack, light on tongue and high on its Cheesecious taste. Its fluffy form makes it very crunchy yet it actually melts in your mouth, leaving behind the lingering flavor of cheese. Each bite opens the doors to that nostalgic feel everyone would love to savor. Once tried, we bet you will become a fan of Cheeselings. So, what are you waiting for? Come, join the ever-increasing Cheeseling Fan Club and Parle will make sure your favorite snack reaches you most conveniently. 160 gm - Rs. 40 320 gm - Rs. 80 3.5 kg tin - Rs. 550
  21. 21. 21 PARLE’S WAFERS Presenting Parle's Wafers. Made with the choicest of handpicked potatoes, it's lip - smackingly delicious, delightfully crunchy and comes in four exciting flavours - Masala Masti, Red Chilli Achaar, Classic Salted, Aloo Chaat, Cream and Onion, and Tangy Tomato. Grab one. Or grab‘em all. Whenever you want, wherever you please. We're sure you'll enjoy it from the very first chip till the very last. Rs. 5, Rs. 10 and Rs. 20 FULLTOSS "Imagine you are playing for Indian cricket team; we need 6 runs from the last ball. An attempted Yorker turns out to be a full toss. You lift your bat, swing it hard and the ball disappears in the crowd. It‘s a six!!! Felt the joy? This is how you would feel after each bite of Parle‘s FullToss. What adds more excitement in any tale are its twists, hence its shape is powered packed with masaledar Karare twists. Just open a pack of this lip smacking – scrumptious snack and add some spice in your day to day moments. It‘s perfect for every occasion and each craving. Available in exciting flavours - Masala Munch, Masala Kachori, Jhalmuri Kolkata Bhel, Green Mango Chatni, Tangy Pickle, and now you can try the new Tomato flavour. Rs. 5, Rs. 10 and Rs. 20.
  22. 22. 22 CHAPTER 3 THE MARKETING STRENGTH The extensive distribution network, built over the years, is a major strength for Parle Products. Parle biscuits & sweets are available to consumers, even in the most remote places and in the smallest of villages with a population of just 500. Parle has nearly 1,500 wholesalers, catering to 4,25,000 retail outlets directly or indirectly. A two hundred strong dedicated field force services these wholesalers & retailers. Additionally, there are 31 depots and C&F agents supplying goods to the wide distribution network. The Parle marketing philosophy emphasizes catering to the masses. They constantly endeavour at designing products that provide nutrition & fun to the common man. Most Parle offerings are in the low & mid-range price segments. This is based on their understanding of the Indian consumer psyche. The value-for-money positioning helps generate large sales volumes for the products. However, Parle Products also manufactures a variety of premium products for the up-market, urban consumers. And in this way, caters a range of products to a variety of consumers.
  23. 23. 23 3.1 SWOT ANALYSIS SWOT analysis is the firm should identify its internal Strengths (S) and Weeknesses (W) and also examine external Opportunities (O) and Threats (T). Strength , Weakness , Opportunity , and Therat are the four tools for a individual or group or organisation to grow , improve and polish it‘s skill. Parle Product Ltd. Has been highlighted below which covers all the criticality of the project :
  24. 24. 24 Strengths Parle Brand, Diversified product range, Extensive distribution network. Low and mid price range Catering to mass, Better understanding of consumer psyche Weakness Dependence on retailers & grocery Stores for displaying diversified Parle Products on shelf, induce impulsive buy. Opportunities Estimated annual growth of 20% Low per capita consumption, Changing consumer preference, Increasing demand for sugar free, Diet biscuit, Threats Hike in cost of production due to hike in raw material cost. Increase distribution cost. Local bakery product. Entry of various new entrant.
  25. 25. 25 3.2 BCG MATRIX The Boston consulting Group‘s portfolio matrix allows a firm to visually display information about each of its. The BCG matrix has as its axes the market growth rate (Broken into high and low growth) and the relative market share as compared to the largest competitors (high and low relative market share). The BCG matrix method is based on product life cycle theory that determine the product portfolio of a unit which contains both high growth product & low growth product having 2 Dimensions: Market share & Market growth. BCG MATRIX CONSISTS OF 4 CATEGORIES:
  26. 26. 26 1. STARS: (High growth & High market share) Stars are market leaders and growing fast. Stars have large reported profits but require a lot of cash to finance the rapid growth. As per the company‘s survey, Parle G is touching the peek of success & therefore comes under the STAR category thereby the Co. can invest a large sum for its upliftment . 2. CASH COWS (Low growth, High market share) A cash cow usually generates more cash than is required to maintain its market share. It is in low-growth market but has a dominant market share. Profits & cash generation should be high due to its Low growth, the investment needed to be Low to keep Profits High The products like krackjack, parle Marie, hide & seek comes under this category. 3. QUESTION MARK: (High growth, Low Market share) It has worst cash characteristics because of High demands & Low returns due to Low market share makes the Co. to sell off & deliver cash.Products like CHOX, NIMKIN KREAMS GOLD, PARLE 20-20, MONACO JEERA comes under this. 4. DOGS: (Low growth, Low market share) The products like SIXER,JEFFS, MUST BITES,MUST STIX &MUST CHIPS Conclude with DOGS as they need to be Divested because they are doing no good for the Co. & have remained as an liability.
  27. 27. 27 CHAPTER 4 MARKETING MIX OF PARLE PRODUCTS The term marketing mix refers to unique blend of Product, Place, Promotion & Pricing strategies designed to produce mutually satisfying exchanges with a target market. Marketers have to make many decisions in developing a marketing mix that will satisfy their target customers. However, all of the variables that make up the marketing mix can be reduced to four basic categories.
  28. 28. 28 4.1 PRODUCT MIX PRODUCT LEVELS Core benefit- the core benefit of biscuits is to satisfy hunger of the consumer. Basic product- in the second level, the basic product is biscuits. Expected product- the consumers expect the product to have a good taste and also give nutrition. Augmented product - parle biscuits increase a person‘s energy levels. This is not always expected by the consumers and hence exceeds customer‘s expectations. Potential product- in the future parle could come up with different products such as a snack which could be a combo of chocolate and biscuit. Classification of products  Based on tangibility- Parle biscuits are tangible, i.e. one can see and touch them.  Based on functional life- Parle biscuits are consumables since biscuits form apart of food and have a short life.  Based on price and quality- most of Parle biscuits such as Parle-G, Monaco, Krack jack are mass products but a few Parle biscuits such as Parle hide and seek and Milano are premium or prestige products.  Based on utility- Parle biscuits are convenience goods. They are staples since they are bought by consumers regularly. Also they are partly impulse products. Consistency The product consistency generally depends on 3 parameters. 1) Production 2) Distribution 3) Consumer end-user
  29. 29. 29 The production process of every parle biscuit follows some basic ingredients like wheat flour, vegetable oil, inverted syrups, skimmed milk powder ,etc. then depending upon the product, extra ingredients are added for e.g. in Monaco there might be an extra amount of salt put in to give it that prominent salt taste, to hide & seek, chocolate chips are added. Etc. Parle uses the same distribution channels for selling all its products under the biscuit category i.e. 1st , 2nd & the 3rd level of the distribution channels. The basic end use of all parle products remains the same – eating it‘s imply to satisfy hunger. Products like parle-g may also be consumed for the intake of high glucose levels for immediate strength & energy. RAW MATERIAL USED Wheat flour Sugar Partially hydrogenated edible vegetable oils Invert syrup Leavening agents (503 Baking powder) Milk solids Salt Emulsifiers (E 322 or E 471 or E 481) Dough conditioners (E 223) and contains added flavors. PROCESS LAYOUT OF PARLE PRODUCTS LTD. PARLE G is made at parle products ltd. at vile parle. First of all the parle products buys RAW MATERIAL from the various suppliers and stored into the store room. This raw material is then sent to laboratory for testing and after testing only it is used for manufacturing. The raw material consist of Wheat flour, Sugar, Partially hydrogenated edible vegetable oils, Invert syrup, Leavening agents (503 Baking powder) Milk, solids Salt Emulsifiers (E 322 or E 471 or E 481) and Dough conditioners (E 223). Such a mixture of raw material is taken and mixed into STEPHAN MIXTURE, which is high power mixture machine. Specially made for mixture of dough, from which the mixture is
  30. 30. 30 passed to molder called ROTARY MOULDER. Through that molder approximately 10,000 come out in a minute. Molder had 260 cups fitted in it which gives shape to the biscuits and an impression embossed on it of parle-g. From rotary molder the dough is passed through a 260 feet long OVEN which is approximately 340* c. In oven there are three stages to be followed - 1. Removal of moisture. 2. Building the structure of biscuits. 3. Colorings of biscuits take place. From oven the hot biscuits are placed on the COOLING CONVYOR, which is 260 feet long and the biscuits continues to run on it for 5 to 7 minutes so that the biscuits become cool and all the moisture that biscuits contain gets evaporated. And because of the above reason the factory has ―S FLOW LAYOUT‖ in the factory. The conveyor continues to move to COUNTING UNIT where biscuits are counted and seen that it is going on properly or not. The conveyor continues till the biscuits reach the STALKING TABLE at which the biscuits are packed in very orderly manner. From cooling conveyor sum biscuits are diverted through AUTO FEEDING MACHINE to another stalking machine where packing is done. From stalking table the biscuits are moved on conveyor to MULTI PACK WRAPPING MACHINE were 16 biscuits are packed into a regular parle g wrapper so that the weight of 16 biscuits comes up to 100 grams. Then 24 packets of parle g biscuits are packed into a POLY BAG. And after packing it into poly bag it is sent to SEALING MACHINE where it is sealed, Then it is sent to CORRUGATE BOX SECTION in which 6 poly bags are placed and then the boxes are kept on conveyor and sent to DISPATCH SECTION from where the biscuits are sent to various places in India and all over the world. All Parle products are manufactured under the most hygienic conditions. Great care is exercised in the selection & quality control of raw materials, packaging materials & rigid quality standards are ensured at every stage of the manufacturing process. Every batch of biscuits & confectioneries are thoroughly checked by expert staff, using the most modern equipment.
  31. 31. 31 INVENTORY The inventory of the company that is the raw material is of a week. They store such inventory in store room and then are sent for testing in laboratory and after testing it is sent for production. SHIFTS There is nearly 10,000 employees working in the company and are working in three shifts.35,000 tons of biscuits are manufactured in a day of one particular product, and there are such nine product manufactured in the factory. WASTAGES There are two type of wastage in factory. First is the waste materials fallen on ground. Such waste material is of 1% which is marginal and acceptable which goes into total waste. Second types of waste are the biscuit collected in tray of the multi-pack wrapping machine, since these biscuit are broken they are not packed and sold to the customer but collected in other tray and sold as broken pieces and sold for less price for cattle feeding. LOOSE BISCUIT On the stalking table one to two rows of baked biscuits are kept aside for selling it as loose biscuits. They are normally assumed to be damaged biscuits but they are not damaged or broken but company keep such loose packets of biscuits to sell it to the local people for marginal rate of 33 Rs / kg. FOLLWING ARE THE MACHINERY USED IN MANUFACTURING STEPHEN MIXER The Stephan TK Mixer is an ideal component to fully automatically feed the down-stream make-up equipment for biscuits, bread, rolls, buns, cake, sweet goods, cookies and crackers. ROTARY MOULD · structure in corrosion-proof; anodized aluminumand Aisi 304 stainless steel · satin stainless steel paneling · swivel wheels and support feet · trays loader with automatic chain feed · feeder roller anodizedaluminum · 1.00 kW speed validator
  32. 32. 32 COOLING CONVEYOR The biscuit coming from stripping conveyor is directed on to the cooling conveyor to transfer the heat in the biscuit to atmospheric air as it is passing on it. The total travel of the cooling conveyor is 1.5 times the oven length. As per need specifications it need the travel of 150 ft. LAMINATOR Laminators are generally used for production of all kinds of hard biscuits, crackers and cocktail snacks. With laminator it is possible to create a puffy pastry-like structure, which is of decisive importance for the quality level and consequently for the sales success. Laminating of Dough band improves the weight/volume ratio considerably. BISCUIT BAKING OVEN The oven body consists of steel steam tight tunnel with equally divided zones of the radiators. Stainless steel expansion joints are provided between these zones in order to eliminate the expansion of the oven section. The inspection doors are provided for inspection of the baking goods during the process. Baking System: The baking in the heating chamber takes place by radiators located under and above the wire mesh band which distribute heat for uniform baking. The recirculation heating gases of these radiators can be controlled for each zone separately. The closed recirculation system is having slight vacuum so that combustion gases cannot enter into the baking chamber. The ventilating fan is for circulation of the heating gases through the recirculation system and thermostatically controlled burners provide the set temperature of the heating gases. ROTARY CUTTER The single head rotary cutter prints fine design on a continuously fed dough sheet and also cuts out the individual dough piece. The unit powered by 1.5KW helical geared motor and speed controlled by AC frequency controller. Drive is given to cutting roller only to accommodate different sizes of dies in this machine.
  33. 33. 33 COUNTING UNIT The counting unit counts and see that the biscuit making process is going fine or not, i.e. as per the program set in the machine, program is set as per the grams required. Generally 16 biscuits are taken by the counting unit so that it leads to 100 grams. MULTIPACK WRAPPING MACHINE This machine helps in wrapping the biscuits on the particular wrapper fixed on the roller of the machine. The wrapper is feed into the machine and the sealing of the wrapper is done by four heater roller, which is fitted on the machine. This heater roller heat up the plastic and seals the packet. And at the same time the jaw cutter cut the packet on the cutting edge marked i.e. as per the grams of the packet which is feed in the automatic machine (100 – 120, 120 – 150, 150 -170, 170 - 190). The packets coming out from the wrapping machine in a minute is programmed in computer and can be changed as per the need. POLY BAGS Poly bags contain 24 packets of parle g biscuits in one poly bag. There are 4 workers employed on this section who take care of the work by putting 24 packets of biscuits in the bag and forwarding it to sealing machine section. SEALING MACHINE The sealing machine has heater rod for sealing the poly bag in which 24 packet of biscuit are placed, and it have a conveyer belt on other side so that when the poly bag passes through the heater and get sealed then it is passed to the tapping machine. TAPPING MACHINE Six such poly bags are placed in one such corrugated box and the box is passed through the tapping machine where are tapped and then sent through a long diversion conveyer belt. This belt helps to transfer the box to the dispatch section directly. 36 boxes are arranged on pallet in the dispatch section, from where they are transferred to the various dealers all over the India and worldwide.
  34. 34. 34 Brand The Parle Biscuit brands, such as, Parle-G, Monaco and Krack jack enjoy a strong imagery and appeal amongst consumers. Be it a big city or a remote village of India, the Parle name symbolizes quality, health and great taste. And yet, this reputation has been built, by constantly innovating and catering to new tastes. This can be seen by the success of new brands, such as, Hide & Seek and Hide & Seek ,Milano. Product Strategy New Old New Brand Name Old Parle follows both line extension and brand extension for its products .For a product like Parle-G it followed line extension with the introduction of Parle-G milk Shakti and Parle-G magix which has 2 flavors- choco and cashew. Initially Parle used to produce only confectionaries. Parle followed brand extension with the introduction of products in the biscuits and snacks category. In this way, by concentrating on consumer tastes and preferences and emphasizing Research & Development, the Parle brand grows from strength to strength . Line Extension Brand Extenstion Multi Brand New Brand
  35. 35. 35 Product Life Cycle Parle as a company has reached the maturity stage in its products life cycle; since products such as parle-G, parle Monaco, parle Krack jack which form a major part of parle products‘ sales have captured most of India‘s market. But for its premium biscuits parle hide and seek and parle hide and seek Milano the products are in the growth and introduction stages respectively. Parle hide and seek was introduced in 1998 with flavors such as mint, orange and chocolate. But it did not really succeed in capturing the consumer‘s attention. So after a few years it was re launched with just one flavor i.e. chocolate flavor with new packaging. After the re-launch it has started gaining attention of its potential buyers and hence is in the growth stage of its life cycle. It has to fight for its stand in the market since it faces competition from Britannia‘s good-day choco nuts.
  36. 36. 36 Packaging and Labeling Packaging: The time spent by a customer for picking up a product from a retail outlet is a few seconds; therefore a package should appeal to a customer within such a small interval of time. In this, both packaging & labeling play an important role in attracting customers both visually & psychologically. Packaging: For Parle G: Parle G was initially recognized by its iconic white and yellow stripped wax paper wrapper with the baby face on it. Many competitors have tried to sell their lower quality products by copying the packaging, trying to sell their biscuits as Parel-G; Parle-Jee etc. Due to increasing competition Parle G now uses plastic wrappers for its packaging. Parle-G comes in 8 different sizes: 25gms, 44gms,93.5 gms, 231gms, 340.5gms, 462gms, 577.5gms and a 1kg pack just for Rs.30 which is not usually offered by other brands. Parle Hide & Seek: It initially came out with 3 variants: Mint, Orange & Chocolate which wasn‘t accepted by the masses. However, the production of Mint & orange flavors was stopped. Chocolate is the only flavor that is running successfully since it is India‘s first chocolate chip biscuit. . Hide & seek biscuit's current packaging has been modified along with lower prices & better affordability rates. Thus there is a change in size of the product which is prevalent in the ads. One of the advertisements shows movie actor, Hrithik Roshan walking with a pack of hide& seek biscuits in the back pocket of his jeans emphasizing on the small size of the product. Parle hide & seek Milano: This product of Parle has a flashy purple coloured packing which attracts customers with the whole look of Italian chocolate chip cookies. Labeling: Consumers are becoming increasingly health conscious. So it is essential to display the contents of every product. Every packet of Parle G, Parle hide & seek, Parle hide& seek Milano has information about the ingredients used, nutrition facts, mailing& emailing addresses asking for feedback, phone number, packaging date etc. All this along with the brand name and directions are printed in Hindi too.
  37. 37. 37 4.2 PRICING MIX The Parle marketing philosophy emphasizes catering to the masses. It constantly endeavors at designing products that provide nutrition & fun to the common man. Most Parle offerings are in the low & mid-range price segments. This is based on its cultivated understanding of the Indian consumer psyche. The value-for-money positioning helps generate large sales volumes for the products. Parle G has adopted the Market Penetration strategy i.e. low price along with capturing of a large market Also they focus on low prices and provide good quality products at the same time, which means it uses the value pricing method. This benefits Parle G by having a competitive edge in terms of large market share which is around 40%: both rural and urban presently. For setting the price of Parle hide & seek biscuit, a survey was taken in the urban &semi- urban markets; on the basis of which hide & seek was introduced. It was found that the potential consumers were ready to pay a premium price for an innovative product like chocolate chip biscuits. Thus, Parle adopted market skimming where the product is high priced and also of high quality. It includes the cost of chocolates, packaging & other processing cost. All these show customer status, which is also one of the reasons for parle hide & seek‘s high price. A separate example for explaining the pricing strategy of Parle is its product Parle Creams For this product Parle uses going rate method only as a reference rate. In this case, Parle Creams were introduced after Britannia‘s Cream Treats with similar variants but at Rs.5 per packet of biscuit and not Rs.10 like that of Britannia‘s cream treats.
  38. 38. 38 4.3 PLACE MIX The extensive distribution network, built over the years, is a major strength for Parle Products. Parle biscuits & sweets are available to consumers, even in the most remote places and in the smallest of villages with a population of just 500. Distribution Channel levels: Parle has nearly 1,500 wholesalers, catering to 4, 25,000 retail outlets directly or indirectly. A two hundred strong dedicated field force services these wholesalers &retailers. Additionally, there are 31 depots and C&F agents supplying goods to the wide distribution network. So it is seen that Parle has 1 level, 2 level & 3 level distribution channels levels. Level 1- availability to all departmental stores. Level 2- Since it‘s an FMCG product this channel exists for customers scattered throughout the country. Level 3 - Mass consumption & suitable for national & international coverage. For e.g. Parle‘s international operations consist of serving markets in the Middle East, Africa, South America, Sri Lanka, Australia and North America for which the 3 level distribution channel exists. Parle has a multi-channel marketing system since it uses more than two marketing channels to reach all its customer segments.
  39. 39. 39 4.4 PROMOTION MIX The marketing mix tools used by Parle are Sales promotion, Advertising, and Public relations. Sales Promotion Parle uses the Sales force promotion tool for all its employees. Every year it holds day fairs at branded venues where games and fun events are organised for the employees of Parle and their families; where Parle products are give away prizes. Advertising Parle-G started being advertised in the 80's. It was advertised mainly through press ads. The communication spoke about the basic benefits of energy and nutrition. In1989, Parle-G released its Dadaji commercial, which went on to become one of the most popular commercials for Parle-G. The commercial was run for a period of 6 years. Parle-G grew bigger by the minute. Be it the packs sold, are as covered or the number of consumers. It became a part of the daily lives of many Indians. It wasn't a biscuit any more. It had become an icon. The next level of communication associated the brand with the positive values of life like honesty, sharing and caring. The year 2002 went down as a special year in Parle-G's advertising history. A year that saw the birth of G-Man a new ambassador for Parle-G. Not just a hero but also a super-hero that saves the entire world, especially children from all the evil forces. A campaign that was not just new to the audiences but one that involved a completely new way of execution that was loved by children all over the world -Animation. A TV commercial that showed G-Man saving the children from the evil force called Terrolene launched this campaign. It was also supported by print medium through posters and streamers put up at the retail outlets. Another campaign that was launched by Parle for Parle-G was - ‘G‘ maane‘GENIUS‘‘. For this a series of ads were shown in which a little kid eats Parle G and tricks the wise and experienced people.
  40. 40. 40 Just a few months back a reminder TV commercial was launched for Parle-G where the product is being called ‘hindustan ki takat’ . Most of the Parle-G TV commercials tell us that brand awareness is being done by capturing consumer emotion. Heavy promotion plays a major role in creating brand awareness. Such is the case of Parle hide & seek biscuit‘s television advertisements. The ads of parle hide and seek are portraying actor Hrithik Roshan. This tells us that the product is being promoted by celebrity endorsement to increase awareness of this product and help capture the consumers‘ attention. Public Relations Parle has done the following for enhancing public relations: In the year 1997, Parle-G sponsored the tele-serial of the Indian superhero, Shaktimaan that went on to become a huge success. The personality of the superhero matched the overall superb benefits of the brand. Parle extended this association with Shaktimaan and gave away a lot of merchandise of Shaktimaan. The children just could not get enough of Parle-G and Shaktimaan. In the year 2002, it was decided to bring the brand closer to the child who is amajor consumer. A national level promo - `Parle-G Mera Sapna Sach Hoga' was run for a period of 6 months. The promo was all about fulfilling the dreams of children. There were over 5 lakh responses and of that, over 300 dreams were fulfilled. Dreams that were fulfilled ranged from trips to Disneyland at Paris &Singapore; meeting their favorite film star Hrithik Roshan; free ride on a chartered plane; 20 scholarships worth Rs 50,000; a special cricket coaching camp with the Australian cricketer - Ricky Ponting; etc. Golu Galata contest - In Tamil Nadu, traditionally, women decorate various dolls made of clay during Navaratri celebrations by setting up 7-9 steps. This display is well decorated and friends and relatives are invited to witness the same. Through a detailed research, Parle found that due to time pressures, this tradition is slowly dying and is getting restricted to a select few households. Thus, to revive the fading event, Parle had introduced the novel promotion called Parle Golu Galata contest in 2005. After the encouraging response and resounding success of the 2005 Golu Galata contest, in 2006 Parle Products Pvt. Ltd took the contest to Chennai, Madurai, Trichy, & Kumbakonam. (Golu means Doll & Galata means Dhammal.)
  41. 41. 41 CHAPTER 5 CONSUMER BEHAVIOUR For Parle-G: In India it is a habit to have biscuits along with chai or tea - Parle G is referred to as "biskut" in rural areas - thus when asked for biskut to a shopkeeper it simply means Parle-G biscuit in rural areas. Understanding consumer behavior is tough. The study of consumer behaviour includes the knowledge about the consumer, his buying motives & buying habits. Keeping all this in mind, the factors influencing the buying behaviour of consumers are: Parle-G being a consumable product is not influenced by factors like cultural factors. As shown above, social factors are further sub divided into 3 parts namely reference groups, family & social role & status. 1) Reference Group People, especially kids are always influenced by the people around them. They are influenced by friends, relatives, family members specially elder siblings, etc. so if they see anyone around them having parle-G biscuit, they too want to eat it. 2) Family In his case also, if it‘s a usual habit of the family members to have pale-G with tea or coffee, the kids in the growing stage or any new member joining the family for tea will form a similar habit or the later will be offered the same biscuit.
  42. 42. 42 PERSONAL FACTORS The factors whose intensity differs from person to person are together termed as personal factors. They are as follows: - 1. AGE Parle-g is consumed maximum by the kids in the age group of 5-10 years i.e. the growing age group. Kids, who have formed the habit of having Parle-G in their early stages of life, continue this practice even after growing up. They continue their consumption of Parle- G even after they grow up. 2 . O C C U P A T I O N The buying behaviour of the consumer is influenced also by the occupation he or she belongs to. In case of Parle-G, the purpose for buying the product varies from a person with a high post in a M.N.C. to a poor laborer. For the executive employee, he may or may not buy the product. He may buy a more expensive or an imported biscuit brand because he can afford it. Also he may buy it only to be one of the many snacks available to him. On the other hand, a poor laborer would buy a packet of Parle-G simply to satisfy his hunger. For him, it is not matter of choice or luxury, but a necessity because it‘s the easiest & the cheapest he can get. 3 . I N C O M E Income of a person decides its core expenditure segment. If a laborer earns a fixed amount & if a biscuit like parle-g which for sure ensures high level glucose content & immediate energy regained, he would defiantly opt to buy a parle biscuit packet & not spend even that minimal amount of Rs.4 on anything else .But since Parle-G is a low-priced, value for money product a person‘s income does not really play a role in influencing the purchase of the product. Consumers of all income groups do buy the product.
  43. 43. 43 PSYCHOLOGICAL FACTORS 1. Motivation For Parle-G the main & the basic motivation which pulls consumers towards buying it is simply hunger. This is what pulls the consumers towards the purchase of Parle-G. Also, since biscuits are perceived as snacks, when a consumer is drinking tea he or she is motivated to buy Parle-G at that time. 2. Perception consumers believe Parle-G to be a good quality product which is cheap too. They also perceive it to be a great snack with tea. For Parle hide & seek: SOCIAL FACTORS 1) Reference groups- parle hide & seek is targeted at the youth. So for this product consumers are influenced by their friends and siblings. 2) Status- Parle hide & seek is a high priced product. So consumers in the higher income groups would prefer to buy the product over other brands since it would be a matter of higher status. PERSONAL FACTORS 1) AGE The advertisements of this product are such that people in the age group from 15 to 28 are likely to be influenced to buy this product. But at the same time, since this product has been endorsed by a celebrity (Hrithik Roshan) and since it is made of chocolate chips, children are also likely to be major consumers.
  44. 44. 44 2) OCCUPATION Major Consumers for Parle hide & seek are students. 3) INCOME Since it is a high-priced product; the potential consumers for this product are high income earners. A person who is earning more is more likely to buy this product than a person who earns comparatively lower income. PSYCHOLOGICAL FACTOR Perception Consumers perceive this brand as ‘tasty and crispy‘ ...chocolate not very sugary. It is perceived as a brand leader in this segment and some firmly believe that there is no competitor while mostly people regarded ‘Britannia bourbon‘ as its main competitor ; very few consumers know that ‘good day- choco nuts‘ is its competitor..
  45. 45. 45 CHAPTER 6 MAJOR COMPETITORS OF PARLE PRODUCTS LTD The major competitors of parle products is Britaniya , Sunfeast, Priya Gold, cadburry, and others local brand. 6.1 Britaniya The company was established in 1892, with an investment of Rs.295. Initially, biscuits were manufactured in a small house in central Kolkata. Later, the enterprise was acquired by the Gupta brothers mainly Nalin Chandra Gupta, a renowned attorney, and operated under the name of "V.S. Brothers." In 1918, C.H. Holmes, an English businessman in Kolkata, was taken on as a partner and The Britannia Biscuit Company Limited (BBCo) was launched. The Mumbai factory was set up in 1924 and Peek Freans UK, acquired a controlling interest in BBCo. Biscuits were in big demand during World War II, which gave a boost to the company‘s sales. The company name finally was changed to the current "Britannia Industries Limited" in 1979. In 1982 the American company Nabisco Brands, Inc. became a major foreign shareholder. Biscuits The company's factories have an annual capacity of 433,000 tonnes. The brand names of biscuits include VitaMarieGold, Tiger, Nutrichoice Junior,Good day, 50 50, Treat, Pure Magic, Milk Bikis, Good Morning, Bourbon, Thin Arrowroot, Nice, Little Hearts and many more. Tiger, the mass market brand, realised $150.75 million in sales including exports to countries including the U.S. and Australia, or 20% of Britannia revenues in 2006. In a separate dispute from the shareholder matters, the company alleged in 2006 that Danone had violated its intellectual property rights in the Tiger brand by registering and using Tiger in several countries without its consent. Britannia claimed the company found out that Danone had launched the Tiger brand in Indonesia in 1998, and later in Malaysia, Singapore, Pakistan and Egypt, when it attempted to register the Tiger trademark in some of these countries in 2004. Whilst it was initially reported in December 2006 that agreement had been reached, it was reported in September 2007 that a solution remained elusiv. In the meantime since Danone's biscuit business has been taken over by Kraft, the Tiger brand of biscuits in Malaysia was renamed Kraft Tiger Biscuits in September 2008.
  46. 46. 46 Britannia initiated legal action against Danone in Singapore in September 2007. The dispute was resolved in 2009 with Britannia securing rights to the Tiger brand worldwide, and Danone paying Rs220 million to utilise the brand. 6.2 ITC In July 2003, ITC forayed into the Biscuits market with the Sunfeast range of Glucose, Marie and Cream Biscuits. Sunfeast's brand essence connotes happiness, contentment, satisfaction and pleasure. In a span of 9 years, Sunfeast has well-established presence in almost all categories of biscuits and is also a key player in the pasta and instant noodles segments. Sunfeast Biscuits straddle all segments of the market led by Dark Fantasy at the premium end. High quality married with exciting innovations has helped drive this category. Dark Fantasy Choco Fills has wowed the Indian consumer with its innovative centre-filled format and high-quality packaging. In addition, the launch of the Dream Cream range of biscuits in two exciting and innovative dual cream formats further reinforces ITCs commitment to continuously delight the consumer. 6.3 Priya Gold Surya Food & Agro Ltd. was incorporated in November 1992 and commenced its commercial operations of manufacturing & selling of biscuits under brand ―Priyagold‖ in October 1993. Over a period, we have established strong manufacturing capabilities and have invested substantially in developing consumer preference for our products. trademarks / brands ―Haq Se Maango‖ & ―Priyagold‖ have emerged as one of the most powerful brands in the FMCG sector. They are committed to invest in brands, manufacturing capabilities, deliverables and distribution strength. They have three plants located in Greater Noida, Lucknow & Surat. & also outsource some of our requirements to another plant located in Hyderabad. capacities have reached 1,50,000 MT p.a., which along with strong brand building and distribution capabilities have enabled us
  47. 47. 47 to command a sizable market share in the biscuit market despite competition from well- established players in the industry. After establishing foothold in biscuit industry, they continued to adopt strategy to identify and commercialize profitable growth opportunities by leveraging established brand and distribution network. Following this strategy, they diversified into manufacturing of ―fruit juices‖ through wholly owned subsidiary ―Surya Fresh Foods Ltd.‖ in January 2006. The manufacturing facility is located at Greater Noida, U.P. We have consciously invested in creating markets for fruit juices and have established brands such as ―Fresh Gold‖ & ―Treat‖. strategy of strengthening the brands especially the umbrella brand ―Priyagold‖ has resulted in creating immense brand recall value. They are continuing with our effort of strengthening the brand with a scientific approach, which will result in growth of customer base, price premium, consumer loyalty which is expected to result in increased earning and ultimately enhancing enterprise value of company.
  48. 48. 48 CHAPTER 7 POSITIONING STRATEGY OF PARLE The relevance and importance of conventional marketing, especially in the fast moving consumer goods category, has slid down to give way for more aggressive market savvy solutions that can revolutionise the way products sell these days. While dealer productivity and market penetration are still important in the overall marketing activity, the brand has to evolve and revolve in a different orbit "" it has to reposition itself if it really wants to make a difference in the highly competitive market. Positioning a product firmly in the consumer's mindset has been one of the major marketing challenges that has enamoured many a marketing guru. As organisations are re-engineering themselves to be more productive, products also need to reposition themselves if they want to stay ahead in the marketing war game. Consequent to the changing parameters, both tangible and intangible, if the products do not respond and reorient themselves to the new environment, they run the risk of becoming obscure. The point here is that however much financial wizardry an organisation might deploy, however much R&D they get into, however much technology they enjoy, unless brand building takes the front seat with clear-cut strategies that predispose the product behaviour, the chances of creating a winner is quite remote. The name of the marketing game is therefore repositioning your brand and thereby, the competition. When the stakes are high and when you are not able to take the competition head-on, the only way to survive and build on an equity is through repositioning. The success of Shaktiman from Parle-G again has tremendous scope in retailing, merchandising and event marketing. May be this was a deliberate strategy from Parle to reposition its biscuits with a shakti(power) aura against the much hyped biscuit brands. Parle-G eventually might use the Shaktiman umbrella strategy to replicate the success for its other brands in these markets. Small wonder then, that Parle-G, with its mass market appeal and distribution in over 4.25 lakh retail outlets, is today the number one biscuit brand in the world.
  49. 49. 49 CHAPTER 8 PARLE AGRO Parle Agro is an Indian private limited company that owns several popular brands including Frooti, Appy, LMN, Hippo and Bailley. Several Parle soda brands including Citra, Thums Up, Limca, Gold Spot and Maaza were sold to Coca Cola in 1993 for a reported $40 million. At the time of sale, the Parle brands together had a 60% market share in the industry. The brand was strong in South India. Citra was phased out by 2000 to make way for Coke's international brand, Sprite. Parle Agro commenced operations in 1984. It started with beverages, and later diversified into bottled water (1993), plastic packaging (1996) and confectionary (2007). Frooti, the first product rolled out of Parle Agro in 1985, became the largest selling mango drink in India. The original Parle group was amicably segregated into three non-competing businesses. But a dispute over the use of "Parle" brand arose, when Parle Agro diversified into the confectionary business, thus becoming a competitor to Parle Products. In February 2008, Parle Products sued Parle Agro for using the brand Parle for competing confectionary products. Later, Parle Agro launched its confectionery products under a new design which did not include the Parle brand name. In 2009, the Bombay High Court ruled that Parle Agro can sell its confectionery brands under the brand name "Parle" or "Parle Confi" on condition that it clearly specifies that its products belong to a separate company, which has no relationship with Parle Products. THE KEY PEOPLE OF PARLE AGRO NAME DESIGNATION Prakash Chauhan Chairman & MD Schauna Chauhan CEO Alisha Chauhan Director Nadia Chauhan Director
  50. 50. 50 PARLE AGRO BRANDS Beverages Confectionery Snaks Water Frooti Butter Cup Softease Hippo Bailey Appy Butter Cup Hippo Round- Round Appy Fizz Mintrox Grappo Fizz Frewt Eclair Saint Juice Softease Mithai LMN PARLE AGRO is a trusted name in the Indian beverage industry and has been refreshing India since more than two decades with leading brands like Frooti, Apply Classic, Apply Fizz, Bailley, Saint Juice, LMN & recently launched Grappo Fizz. Parle Agro Pvt., Ltd. manufactures, distributes, sells, and exports fruit drinks in India and internationally. The company offers fruit and milk drinks, packaged water, and apple and mango drinks in polyethylene terepthalate (PET) bottles and containers, and tetra packs. The company also operates a health and fitness studio for woman. The company distributes its products through franchisees. Parle Agro Pvt., Ltd. Was founded in 1985 and is based in Mumbai, India. Parle Agro has been a trusted name in the beverage industry providing wholesome and healthy agro-based drink brands. It has successfully launched some of India's leading beverages like Frooti, Appy etc.
  51. 51. 51 VISION:- To be the leaders in our business. We will stand apart from the competition by being the first inthe market to innovate. MISSION:- ―We will be the leaders in our business by maintaining high quality, introducing new and innovative products, reaching every part of India, remaining customer-centric, constantly upgrading our knowledge and skills. To provide consumers superior, wholesome agro based food and drink brands through which parle can build a profitable; growth oriented organization‖ FUNCTIONAL AREA:- Administration, Market, Purchasing, Production and Quality Department. SIZE OFTHE ORGANIZATION:- MANPOWER:- Parle group has a manpower strength of over 2500 employees, including over 400 professionals. TURNOVER:- The Parle Group turnover is over 950 crore in 200.
  52. 52. 52 8.1 MARKETING STRATEGY OF FROOTI For those who have seen it carefully, the new brand campaign for Frooti reveals a subtle shift. It shows the newly signed brand ambassador Shahrukh Khan glugging the mango drink from a PET bottle, rather than a tetra pack, which is no longer as respected as it used to be and which also made Frooti most instantly identifiable when it was launched for the first time. The Rs 1500 crore brand is ready to move to its next phase of growth, in a world filled with competitors like Coca-Cola's Maaza and PepsiCo's Slice on the one hand and carbonated beverages on the other. For instance getting on board one of the most recognised faces is being touted as the game changer for the 27-year old homegrown brand considering it has never resorted to getting a celebrity endorser before. Feels marketing consultant Harish Bijoor, "Frooti's big strength is the fact that it has been around for donkey's years. It has become generic to the category altogether." This is a strength and a weakness as well, in his view, which the brand has to manage swiftly and carefully. Nadia Chauhan Kurup, MD and CMO, Parle Agro agrees that the biggest challenge has been to get the magic back for a brand as old as Frooti. It's trying to combat some part of that challenge by getting the recognised face of Shahrukh Khan onboard. Frooti seems to be the last in the race to join the celeb-band wagon: the other players in the mango beverage space already have their ambassadors: Maaza features the pranks of Imran Khan and Parineeti Chopra while Slice has Katrina Kaif 's sensuous Aam Sutra moves.
  53. 53. 53 The recent commercial shows a bunch of kids in a football field watching Shahrukh Khan gulping Frooti. He looks around when he is done and what he sees is a bunch of young adults whose longing for Frooti apparently has them lapse into a childlike state of wonder. He simply asks them 'what?' which snaps their reverie. Shares Sajan Raj Kurup, founder and creative chairman, Creativeland Asia, "One of the key tasks in the brief was to capture the feel of relishing a bottle of Frooti and up the appetite quotient for the beverage." Even as the initial thoughts read more like 'oh no not again', Kurup wanted to create drool value purely through human emotions, reactions and expressions. Prakash Varma of Nirvana Films has directed the film. The team was very clear on how to use the celeb power of Khan without letting the brand get ambushed. Shares Nadia Chauhan Kurup, "The campaign is breaking not just the category clutter or the advertising clutter, but it is even breaking the celebrity endorsement clutter." It is not often that SRK has been used in such a way where the only dialogue he gets to mouth is 'what?'" she says. When asked if he charged any lesser because he was made to talk less, she grins and shares how she wishes that it worked like that in which case "we would have just kept him silent." According to Satbir Singh, managing partner & chief creative officer, Havas Worldwide, "The usually talkative SRK quietly polishing off a bottle of Frooti makes it stick. Most agency and marketing teams would have him mouth a hundred words in praise of the brand." Studies have shown that culturally, kids and women prefer mango drinks just as the core audience for cola/ caffeine drinks (Mountain Dew, Red Bull etc) is men. Alpana Parida, president, DY Works feels that this campaign reaches out to all ages and appeals to the child in men, to kids themselves and certainly the mothers who are both shoppers and consumers. It lifts the humble Frooti from a kiddie realm and will probably do more for the brand than all its past campaigns put together. According to Jitender Dabas, head of strategic planning, McCann Worldgroup, "A mango drink is about the pleasure of consuming mango and with this campaign Frooti seems to be coming back to its core." But is this the new positioning or just a commercial, is what he would like to know.
  54. 54. 54 Along with the brand film, the marketing plan includes outdoors, BTL, mall activation, visibility at retail outlets (POP) and strong digital presence. Interestingly the first leg of this campaign was launched on the social media and as per Kurup in less than a week, its total timeline deliveries amounted to 52 million. It managed to garner over 8 million twitter handles and a whopping count of 80,000 tweets. Frooti's YouTube channel views increased by 2.5 million and subscribers increased by 600%. Even as the brand spends 40% more on it's marketing this year compared to the last, it will have to quickly address one of its biggest weak spots — its relatively feeble presence in the returnable glass bottle (RGB) space. The returnable glass bottle is at the top in the pecking order of the caste system of packaging of soft drinks followed by the PET bottle and then the tetra pack at the bottom-rung, shares Bijoor. This has been a pain-point that the brand is trying to tackle on a war-footing. Agrees and shares Nadia Chauhan Kurup, "Currently there are only four manufacturing plants for RGB which would eventually go up to 20 plants. The bottle form is one of the highest penetrated packing formats and there is a huge market for it." The glass bottle format has been launched in a phased way in some markets and would be increased soon as manufacturing capacity increases. And perhaps that's what it will take for Frooti, the oldest brand in the category, to give a better account of itself in a growing market for mango beverages.
  55. 55. 55 CHAPTER 9 TALK WITH THE DISTRIBUTOR I had visited a distribution unit of Parle Biscuits, which is situated in MALAD, N.K ENTERPRISE. He proved to be very co-operative and resourceful . He gave me adequate information, which is required in the project. Below is the information gained through the visit :- 1. Which are the products of parle you distribute? Ans. Parle –G, Krack Jack, Monaco, Milk-Shakti, Hide N Seek , Fun Center, Cheeslings, Jeffs, Marie Choice, Parle Magic, Monaco Bites etc. 2. What are the yours distribution channel ? Ans. We distribute product through salesman Whose supply products in nearby area. As per customers order. 3. In which areas you supply the products of parle? Ans. We supply only in malad and kandivali . 4. How do you tackle competition? Ans. Parle faces competition by just keeping up the quality and prices as per the pre difined standards. There are no levels in it. It has stable marketing strategies. 5. Problem faced, if any? Ans. There used to be some problem due to imitation brands like, Parole G, Parale G, Parel G, etc. But now people identify the brand very well. They recognise by the sweet girl‘s image on the pack and the PARLE on it written in Red. It act as the logo. So, now this drench is cleared off.
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  57. 57. 57 CHAPTER 10 SURVEY 1. What are the brands of biscuit can you recall in your shop? Parle 8 ITC 7 Priya Gold 5 In this survey 8% consumer recall parle biscuit and 7 % for ITC and 5 % for Priya Gold 2. What is frequency of Parle biscuit you take from the distributer? Once in a week 4 Twice in a week 7 Thrice in a week 8 In this survey frequency of consumer take thrice in a week. 0 1 2 3 4 5 6 7 8 9 Parle ITC Priya Gold 0 2 4 6 8 10 Once in a week Twice in a week Thrice in a week
  58. 58. 58 3. What is the quality of Parle biscuit you think? In this survey the most of the consumer think about quality is very good. 4. What attribute do Parle G belonged? As per this survey the Glucose attribute is most suitable for Parle G. 0 2 4 6 8 10 Very Good Good Ok 0 2 4 6 8 10 12 Taste Gulcose Cheap
  59. 59. 59 5. Which age group mostly prefer Parle biscuit? As per this survey there are all groups preferred Parle biscuit. Such as young working class 8% , Experience working class 5% and childerns 7%. 6. Have you any complaint about biscuit? Yes 6 No 14 In this survey 14% of the consumer says they have no any complaint and 6 % consumer have complaint relating with pricing , quantitiy of biscuits. 0 1 2 3 4 5 6 7 8 9 Young Working class Experience working class Childerns 0 2 4 6 8 10 12 14 16 Yes No
  60. 60. 60 CHAPTER 11 CONCLUSION I want to conclude my project by saying that marketing strategy is 4ps such as product, promotion, price and place. These are all important aspects of marketing strategy. Without these aspects marketing is not possible. Marketing strategy is all about marketing a product. In these marketing mix sellers, retailers, buyers, and wholesalers play an important role. There is lot of scope in marketing strategy. Parle company hadmadehugeprofit bymarketing thereproducts in Indiaand inforeign countries. It was concluded that Parle is the first preference of both the customers and retailers (Organized and unorganizedboth)becauseofits priceandbrand image. TheParle Biscuit brands,suchas,Parle-G,Monaco, Krackjack,MarieChoice,Hide andSeekenjoya strongimageryandappeal amongst consumers across theworld.Whichhas resulted into Parle-G being the ―world‟ s largest selling biscuit". The Parle name symbolizes quality, health and great taste. Constantly innovating and catering to new tastes PARLE-Ghas built its reputation. Parle Products Pvt Ltd. is now lagging in services to retailers because of improper supply and distribution in some areas and competitors taking advantage of these points .Parle Company should take into consideration the opportunities and threats as discussed above. This will help the company to maintain its brandimageforlongtime. Parle Agro is a leading Indian Food and Beverage Company, the only Indian transnational gaint with the past experience of having successfully launched leading soft drinks like Frooti, Appy, and Bailley´. Toady its brand portfolio consists of No.1 brands like frooti along with Appy, and Bailley.
  61. 61. 61 CHAPTER 12 CASE STUDY In 2009, Parle Products Pvt. Limited (Parle), a leading Indian manufacturer of biscuits, had the honor of producing the best-selling brand of glucose biscuits in the world by volume, Parle-G. Parle-G biscuits sold for about U.S. $ 1 per kilogram, and as very few processed and ready-to-eat products were available at that price, Parle-G was closely associated with the offer value for money (VFM). Impending problems in this brand category for Parle was the fact that the prices of raw materials from the two main raw materials for the Parle-G biscuits (which account for 55 percent of their value inputs) rose enough in the past 18 months to reduce the field from 15 percent to less than 10 percent. Pressure to restore fields led Parle to consider price increases more previous attempt caused a sharp decline in sales. Parle later turned increase production costs by reducing the weight of the package, franchise production, reducing supply chain costs and reduce packaging costs. Parle could not ignore the deep- rooted perception of VFM in the development of short-and long-term marketing plans to maintain the success of Parle-G in the market. These plans are required to address segmentation, positioning, and changing demographics Indian when considering potential rise in Parle-G biscuits. Leading biscuit and confectionary-maker Parle Products is all set to extend its promotional campaign for its flagship brand Parle G into the digital arena. With this, the campaign enters into its next phase and ropes in renowned author Ruskin Bond as a guest blogger to write for its microsite – The edutainment site, is an interactive portal where parents can interact and share videos, audio clips and documents to showcase their child‘s talent.
  62. 62. 62 CHAPTER 13 ARTICLES Parle Agro re-enters fizzy drinks market New coffee-flavoured product, Café Cuba, to hit market next year Two decades after selling its popular soft drink brands, Parle Agro is re-entering the carbonated soft drink (CSD) segment with its new coffee-flavored fizzy drink, Café Cuba. Unveiling the product here on Tuesday , Prakash Chauhan, Chairman & Managing Director, Parle Agro, said the sweetened carbonated beverage in a coffee flavour would be `the first of its kind‘ in India. ``We wanted to create a unique product that would be well differentiated in the market,‖ he pointed out Two decades The Mumbai-headquartered company today makes Frooti, Appy, Appy Fizz, baked snacks, toffees and Bailley packaged drinking water, and has a turnover of Rs. 2,000 crore. It had sold its iconic soft drink brands namely Thums Up, Limca, Gold Spot and Citra, to Coca- Cola over two decades ago. Mr. Chauhan said Café Cuba would be launched nationally next January-February. A diet version could follow soon, he added. ―We are targeting a turnover of Rs. 1,000 crore in the first 12-18 months after launch. We will consider exporting the product once it is established here. We expect to have a significant presence in the Rs. 15,000-crore CSD segment in India,‘‘ he said, The product will be launched in cans priced at Rs. 20 for a 250 ml pack, and in PET bottles at Rs. 15 for a 250 ml pack. Nadia Chauhan, Joint Managing Director and Chief Marketing Officer, Parle Agro, said Café Cuba would target consumers in the 17-30 years age group, which accounted for more than 70 per cent of CSD consumption in the country.
  63. 63. 63 She said Parle Agro aimed to more than double its turnover to Rs. 5,000 crore by 2015 largely on the back of Café Cuba. ``While the coffee flavour is currently imported, it will get indianised over time,‖ she added. Capacity increased The company will make Café Cuba across all its 14 factories, and has increased capacity by 60 per cent over the last few years, investing around Rs. 150 crore. It will also expand its distribution network from 800,000 outlets to 1.5 million outlets. ―About Rs. 100 crore went into Café Cuba capacity creation of around 3 million units,‖ Ms Chauhan said, adding that the company would deploy around Rs. 50 crore for the marketing campaign. 73-year-old biscuit pioneer, Parle-G becomes India‘s first homegrown Rs 5K crore FMCG brand When Parle Products launched Parle-G in 1939 during the British rule, the firm considered it a responsibility to sell affordable biscuits to Indians. Today, the same value plank has helped the glucose biscuit brand become the first Indian FMCG brand to cross the Rs 5,000-crore mark in retail sales in a year.