Analysis of two major FMCG Giants - Parle and Britania.
On BCG and Igor Ansoff
matrix and recommended the marketing strategies that can give the base company competitive
advantage over other.
1. Member Names: -
Akanksha Gohil,
TASK: To choose a sector, pick up 2 companies from it, analyze them on BCG and Igor Ansoff
matrix and recommend the marketing strategies that can give the base company competitive
advantage over other.
⇨ Sector: FMCG
⇨ Company: PARLE (base company) and Britannia
⇨ Product line: Biscuits
BCG Matrix
∙ Cash Cows
The cash cows include all those products that serve as the financial foundation for an organization.
These products have a high market share and are in high demand by the consumers which helps in
securing a significant amount of profit.
∙ Stars
The second category is related to those products which are not cash cows in the present scenario but
can become a cash cow as they are bringing in significant sales and revenues. These products have two
main defining features. Firstly, they have a high market share, secondly they seem to have further
chances of development in terms of increased sales and market share.
∙ Question Marks
The question marks on the other hand, depict products that are not performing up to the managerial
expectations. These products have more of an uncertain future, rather than a clear course of
development as evident in case of stars. There is a chance that continued investment in this area may
bring in positive results for the organization.
∙ Dogs
The dogs include the products that have a poor performance in terms of sales and revenues. These
items are regarded as cash traps as the investment is not bringing in the desired results for the
organization. The low market share and limited growth chances in the industry makes these products a
financial burden for a company.
BCG Matrix of Parle :--
2. STAR
Parle G
Market Share (By sales): 75%
Growth Rate: 4%-5% annually
CASH COW
Krack-Jack
Market Share(By sales): 21%
Growth Rate: 3%-4% annually
QUESTION MARK
Monaco
Market Share(By sales): 20%
Growth Rate: 3%-4% annually
DOGS
Crunchi
Market Share(By sales): 12%
BCG Matrix of Britannia :--
STAR
Tiger
Market Share (By sales): 17%
Growth Rate: 4%-5% annually
CASH COW
Good Day
Market Share(By sales): 30%
Growth Rate: 3.5%-4% annually
QUESTION MARK
Bourbon
Market Share(By sales): 19%
Growth Rate: 3%-5% annually
DOGS
Nutrichoice
Market Share(By sales): 9%
Growth Rate: 2.5-3% annually
Igor Ansoff growth Matrix – Parle Biscuit
Existing Product New Product
3. Market penetration
∙ 20-20
∙ Fab
∙ Happy-happy
Product development
∙ Parle-G
∙ Kracjack
Market development
∙ Hide & seek
∙ Milano
Diversification
∙ Nutricrunch (Within product
line)
∙ Pulses (Product category)
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Market penetration refers to the product being already available in the market but it needs
more distribution and more recognition for end consumers to buy them. So in this category, 20-
20, happy-happy and fab biscuits lie as they need to increase their market share in the market.
4. In market development strategy, a firm tries to expand into new markets (geographies,
countries etc.) using its existing offerings and also, with minimal product/services development.
How Parle known for its glucose biscuit expanded itself into a high range biscuit category Milano
and different variants of hide & seek.
In product development strategy, a company tries to create new products and services targeted
at its existing markets to achieve growth. This involves extending the product range available to
the firm's existing markets. Here since Parle-G & Kracjack have attained the maximum market
share they could and have reached a saturation point where there is no other way but new
product variations.
In diversification an organization tries to grow its market share by introducing new offerings in
new markets. It is the risky strategy because both product and market development is required.
Related Diversification— there is relationship and, therefore, potential synergy, between the
firms in existing business and the new product/market space- Nutricrunch
Unrelated Diversification: This is otherwise termed conglomerate growth because the resulting
corporation is a conglomerate, i.e. a collection of businesses without any relationship to one
another. A strategy for company growth through starting up or acquiring businesses outside the
company’s current products and markets- Pulses
Igor Ansoff growth Matrix – Britannia Biscuit Existing
Product New Product
Market Penetration
∙ Britannia bread
∙ Biscuits( good day, tiger,
marie gold)
∙ Britannia cakes
Product Development
∙ Healthy products
∙ Lassi
∙ Chocolate bars
5. Market Development
∙ Dairy products ( winkin
cow shakes, cheese,
milk, butter)
∙ Biscuits ( pure magic,
nutrichoice)
Diversification
∙ Gooday chunkies
∙ Nutri choice oats
∙ Nutri choice cookies
∙ Britannia high aroma
ghee
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ANALYZING THE ADVERTISEMENT OF PARLE:-
∙ Tension Line: Relive the old Memories.
∙ Target Group: All the age group, basically from age 15-30 & 45+
∙ Consumer Behaviour: Consumer Behaviour is knowledge about consumer and his buying
habits & motives. According to the study, In India biscuits are consumed with tea in
morning and evening. The consumers wants something that can stop their hunger. As
6. Parle is known for its Glucose content, therefore for getting quick energy, people prefer
Parle-G. In India, people prefer more quantity at an affordable and lower prices, since
85% of population is middle and below middle class. The Indian customers are highly
emotional and this is the point on which Parle have focused in most of their
advertisement.
∙ Mother-Son Advertisement & Daughter-Father Advertisement
Parle has always played emotional with the customers they are having. Parle being the most
renowed and one of the oldest brand in India, it has its variety of customers starting from the
children to the old age group. They know that each and every person have atleast consumed
their biscuits once in the life time and they are trying to position this by making an emotional
connect with those memories. They showed Parle-G was there with you in and every moment
of your life since the Childhood.
∙ #YouAreMyParleG
They are targeting the old as well as younger generation in the recent last 2-3 years, by going to
the past of the consumers and making their memories alive and how Parle played an important
role in making those memories.
They have highly focused on the day to day activities of a normal individual so that they can put
themselves in that position which helps them to connect it with their own life. They are using
Culture, Social class and also various micro elements that encourages the buying behaviour of
the customers.
ANALYZING THE ADVERTISEMENT OF BRINTANNIA:
1) Demographic and Psychographic- age, social class, education level, income level, married
status and occupation
7. 2) Positioned as a brand caring for consumers
3) Value based positioning strategy
4) Extensive presence in market through a distribution network
5) Sales promotion- small pack of 50-50 with good day, free gifts pack in festival season, rural
marketing
6) Sponsor for many cricketers on Bats
7) Tu sau Saal Jiyega, TV campaign
8) Long format film for 100% digital natives
9) Increased digital spends by 10-15% this year
∙ Consumer Behaviour:
1) As compare to Parle Cream Biscuits, Britania Cream Biscuits are more prefered by customers
because parle is known for Cheaper Biscuits and if same type of biscuits are available at same
cost in two brands then consumers will prefer biscuits of other one.
2) Most of the people used to purchase parle biscuits at lower cost for self consumption while
for guests they prefer higher cost biscuits.
3) Consumer Behaviour is knowledge about consumer and his buying habits & motives.
According to the study, In India biscuits are consumed with tea in morning and evening. The
consumers wants something that can stop their hunger. As Parle is known for its Glucose
content, therefore for getting quick energy, people prefer Parle-G. In India, people prefer more
quantity at an affordable and lower prices, since 85% of population is middle and below middle
class. The Indian customers are highly emotional and this is the point on which Parle have
focused in most of their advertisement.
Recommendation of marketing strategies that can give the PARLE a competitive
8. advantage over BRITANNIA:-
1. Company should increase the quality of the product in the present time consumer
want different flavor with high Quality. To face the competition form other company
and increase the market share the company should improve the quality of different
product and increase sales.
2. Print media and television are the major source of awareness, so these Medias cancan
be concentrated more for efficient results.
3. The ages groups 30-45 and above are not interested to consume the biscuits, so these
potential groups can concentrate.
4. The retailer is complain about the profit margin because it is less and not interested to
sale it so some discount should be given to retailer to motivate them to the increase
profit margin and help in increase the sales.
5. Parle should come up with Diet Biscuit with low sugar content. As consumer behavior is
shifting more towards healthy and sugar-free biscuits. Using its extensive distribution
network this new product could be easily be distributed.
6. Parle should come up with a product to cater to the health of adults as well, as Britannia is
not in this field yet.
7. Parle can increase the prices of MILANO, HIDE n SEEK, BOURBON etc, as these biscuits are
bought by less price sensitive customer, thus increase in price will not affect the customer
coverage and will also increase the overall revenue.