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Parle agro
- Parle Agro started operations in 1959 as Baroda Bottling Co. for carbonated beverages and has since launched several fruit-based drinks and other beverages and snacks. - Some of their major brands include Frooti, India's largest selling mango drink launched in 1985, Appy fruit nectar launched in 1986, Cafe Cuba carbonated coffee launched in 2013, and Hippo snacks launched in 2009. - Their three major growth strategies are focusing on their core business of nectars and juices, backward integration to manufacture PET bottles, and related diversification into the food business. Their challenges include being wholly family-owned without professional expertise and facing pressure from competition.
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Parle agro
- 1. Prepared By - AnkitRai B1 Parnika Gopal B4 Anurag Upadhyay B19 Anisha Bisht B-61 Pradeep Yadav B- 63 Sidharth Singh B-67
- 2. HISTORY/TIMELINE • 1959 –Ops started as Baroda Bottling Co. for carbonated beverages • 1985 – Launched India’s first fruit based drink- Frooti in a unique Tetra- Pak format • 1986 – Launched India’s first Apple Nectar- Appy • 1993 – Sold rights to carbonated beverages to Coca-Cola and entered the Packaged Drinking Water market with the launch of Bailey • 1996 – Started preform (PET) division for ‘backward integration’
- 3. HISTORY/TIMELINE • 2005 –Launched India’s first sparkling Apple drink- Appy Fizz available in a champagne shaped PET bottle • 2009 – ‘Diversified’ into the snack food category with the launch of Hippo • 2012 – Launched India’s first spice based soda • 2013 – Launched Café Cuba, a carbonated coffee flavoured soft drink & Frio, a range of deliciously flavoured aerated drinks • 2015 – Relaunched a completely new visual identity with a bold packaging design ,and a new formulation for Frooti
- 5. • Frooti • Launchedin 1985 • India’s only beverage sold in a Tetra Pack at the time • Largest selling mango drink • Appy & Appy Fizz • Appy Classic was launched in 1986 • First apple nectar to be launched in India • Appy Fizz launched in 2005 • India’s first sparkling apple drink available in a champagne shaped PET bottle
- 6. • Café Cuba •Launched on 19 May 2013 • Is a carbonated Cuban coffee. • First of its kind product, a bottled espresso • Other Products • Bailley packaged drinking water and soda • Hippo (2008), baked snack in 6 flavours • Mintrox Mints hard mint candy in 2 flavours • Buttercup Candies (2008), hard boiled candy • Buttercup Softease, a toffee in 4 flavours • Softease Mithai, a toffee in 3 flavours • Grappo Fizz • Launched in 2008 • Sparkling grape juice drink • Credited with creating the sparkling fruit drinks category in India • Saint Juice & LMN • Saint Juice launched in 2008 • 3 Variants – Orange; Mixed Fruit; Grape & Apple • LMN launched in Mar 2009 • Is a non-carbonated lemon drink
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- 8. Leadership Style :Autocratic
- 10. Frooti Bailey Buttercup Café Cuba SaintJuice Appy FizzHippo Grappo Fizz LMN
- 11. 3 MAJOR GROWTHSTRATEGIES • Focussing on their core business of Nectar and Juice • Changed the logo and design of Frooti for the first time in 30 years! • Made it more appealing to the adults as well Concentration • Backward Integration by manufacturing PET bottles • Increase its returnable glass bottles (RGB) network • Plan to expand its network to over 40 plants within the next 2 years Integration Diversification • Related diversification into Food business from their core business •Introduced snacks and toffees
- 12. 3 MAJOR CHALLENGES/RISKS •Wholly family-owned and run by Chauhan FamilyLacks Professional Expertise • Faces tremendous pressure on market share from rival brands in the food industry in terms of taste and packaging Continuous Critical Competition Follows Organic Growth Strategy • No mergers and acquisitions • No plan of becoming a public company
- 13. RECOMMENDATIONS • Build adistinctive leadership in Lemon Nectar sector like Apple and Mango : Launch a lemon drink with a name different than LMN and focus on its pre-launch marketing campaign • Keep bottlers and distributers happy with attractive margin in order to avoid fiasco like Thumps Up : Bottlers and Distributors were drastically poached by Coca Cola due to enticing margins • Keep adding a peculiar and innovative range of products to gain first mover advantage like Hippo and Saint Juice : Creating a new segment of products to tackle competition and attract a niche market.
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