Parle Agro uses an intensive distribution network to widely distribute its popular biscuit and snack brands like Parle-G. It has over 1,500 wholesalers serving 425,000 retail outlets. Parle carefully selects and evaluates its channel members based on factors like infrastructure, market coverage, sales performance and targets. Parle's strong procurement and loyal relationships with suppliers and transporters allow it to offer lower costs than competitors despite using intensive distribution.

1. A
Presentation
on
Sales and Distribution of
Parle
Submitted By:
Swapnil Lazarus
Vinita Gadkari
Wahid Noor Rehman

2. About – Parle Agro
 Parle Agro is an Indian private limited company founded in 1929. It owns the
brands including Frooti, Appy, LMN, Hippo and Bailley.
 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
 Parle enjoys a 40% share of the total biscuit market and a 15% share of the
total confectionary market, in India

3. History
 Parle Products was founded in 1929 in British India. It was owned by the
Chauhan family of Vile Parle, Mumbai. The Parle brand became well known in
India following the success of products such as the Parle-G biscuits and
Thums Up soft drink
 The original Parle company was split into three separate companies owned by
the different factions of the original Chauhan family:
 Parle Products, brands Parle-G, Melody, Mango Bite, Poppins, Monaco and
KrackJack
 Parle Agro, brands such as Frooti and Appy
 Parle Bisleri
 All three companies continue to use the family trademark name "Parle".

4. Parle Biscuits
 Parle biscuits are linked with factors of power and wisdom providing nutrition
and strength.
 Parle biscuits are indeed much more than a tea- time snack, they are
considered by many to be an important part of their daily food.
 Parle provides one and all with a basket of biscuits which is not only satisfying
but are also of good and reliable quality.
 Parle biscuits cater to all tastes from kids to senior citizens. They have found
their way into the Indian hearts and homes.
 Parle G is a source of strength for both body and mind due to the sumptuous
amount of milk and wheat.
It is the Largest selling Biscuit Brand in the world.

5. Product Life Cycle

6. Product Life Cycle
Presently, Parle G is in the maturity stage of its PLC.
 Having said this, the brand is going strong.
 Intensive distribution employed

7. The Distribution Channel Network: Parle

8. The Parle G Distribution Network
Intensive Distribution
Parle uses Intensive Distribution for Parle G. This is the ideal strategy for the
market leader as intensive distribution has the following advantages:
 Increases coverage and sales
 Increases product availability
 Encourages retailers to compete aggressive. Higher competition leads to
narrower margins for the retails hence, increases the ultimate margin for the
manufacturer.
The Channel Members of the Distribution Network of Parle
The Parle distribution network for biscuits has essentially four levels as enlisted
below:
 Parle Depots
 Wholesalers and Distributers
 Carry Forward Agents (if required)
 Retailers

9. The Channel Members and Logistics
Parle has nearly 1500 wholesalers, catering to 425000 retail outlets directly or
indirectly. A two hundred strong dedicated field force services these wholesalers
and retailers. Additionally, there are 31 depots and Carry and Forward agents
supplying goods to the wide distribution network.
Parle has level 1, level 2, level 3 distribution channels levels.
Level 1:
Availability of Parle G biscuits at all departmental stores across the length and
breadth of the country.
Level 2:
Since it's an FMCG product this channel exists for customers scattered throughout
the country.
Level 3:
Mass consumption and suitable for National and 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

10. The Parle Distribution Network Logistics
Selection of Channel Members for Parle
Parle takes into consideration a host of factors while selecting the channel
members. This is because it believes that selection of channel members is a long
run decision and the rest of the decision regarding the supply chain depends upon
the efficiency and coverage by the channel members.
The following are the host of factors considered by the company in selecting the
channel members:
 Authentication
 Proof of solvency which requires name and address of the channel member‟s
bankers
 Safety of the inventory
 Inventory or the perishable goods kept by the distributor/ dealer should be in
good condition which means a detail of storage space and Refrigeration facility
is to be provided.

11. The Parle Distribution Network Logistics
 Details of the delivery vehicle, which includes the following:
 Light Commercial Vehicles,
 Matador,
 3 Wheeler Van,
 Tricycle Van and Hand/Push cart.
 The number and model of each of the vehicle needs to be furnished to the
. company
 Company acknowledges the fact that it needs to be sensitive to the market
demands. For this it requires that a number of salesmen needs to be present on
the field.
 The salesmen too are divided into various categories like
The Field salesmen
Counter salesmen
 The details of Clerical Staff and labour are to be provided. The technical
competence of the salesmen needs to be mentioned.

12. The Parle Distribution Network Logistics
 Details of the various products of other companies that the channel member
keeps have to be provided. The following also need to be furnished with the
above:
 The annual sales of these products have to be mentioned.
 Details of complementary products and product lines need to be mentioned.
 Dealers of the company must carry a good reputation. This is due to the fact
that Parle believes that the reputation of the dealer affects the clientele in the
long run.
 Market coverage by the distributors needs to be defined which includes
details of Geographic coverage and Outlets per market area.
 The company also requires the dealers to furnish any Advertising and Sales
initiative undertaken by them on behalf of the company.

13. The Channel Members of the Parle
Distribution Network
The Distributors
One of the main factors, which keep the distributors motivated, is the margin. Usually
the margins offered by Parle are 8%. Now-a-days it has been raised to 8.5%.
The Retailers
 Trade schemes: these are undertaken by the company only for the hard selling
items e.g. Biscuits and Snacks etc. for these the company raises the margins by
2%, also schemes like good packaging incase of butter and cheese is undertaken by
the company. However this is only a short-term initiative to push the products of the
company.
 Glow boards: the company puts up glow boards at the retailer and pays the
major portion of the cost.
 Schedule of the salesmen: they provide the retails with this schedule so the
retailers can pre estimate the quantities of the various products needed.
 Infrastructure facilitation: the company facilitates the retailers to buy beautiful
stalls by formulating an easy payment program and a commitment to buy back the
equipment at a reasonable price when the value of the equipment has depreciated

14. Evaluation of the Channel Members
Parle has a three pronged process to evaluate its channel members. These are the
Beat Plan, the Cumulative Performance plan and Target versus Achievement Plan.
 Beat plan: this plan is generated for the various product categories. A weekly
schedule is prepared for various markets and the retailers the turnover for each of the
product is calculated for the wholesale dealers.
 Cumulative performance: the performance of the dealers is averaged out over a
period of three years where a comparison is made of the present performance vis-à-vis
the previous ones.
 Target versus achievement: the performance and the targets are compared and
therefore the gaps are identified which help in evaluating the wholesalers and the
distributors and planning for the next year as well. This is done for each of the product
category.

15.  Other criteria: these need to be fulfilled by the channel members of Parle.
 Details of the bank guaranty
 Photographs of the offices
 Details of the wholesalers and the distributors‟ salesmen and the product
lines they deal in.
 The computerization facility available.
 The storage space.
 Stall facility with photograph.
 Details of the delivery vehicle with photograph.
 Summary of the monthly potential sales of markets.
 Summary of the product wise monthly sales potential of institutions.

16. The Distribution Channel and Parle
 The company‟s strength is in the procurement of raw materials and essentially
not the distribution of its product. Even though Parle is the market leader in
biscuits. But, distribution logistics is the industry‟s main problem. While the other
companies fail to replenish demand due to lack in procurement of raw material,
Parle‟s inventory management is sound.
 Parle has loyal cooperatives that provide products only to them, over time the
relationship of trust has built up with these people that Parle leverages now.
 The transport channel is another strong point for Parle. As these transporters
have grown with the company overtime; the bonding with them enables the
company to give least margins when it comes to the distributors in the industry,
lowering the costs.
 Parle believes that there is an ongoing demand in the market and therefore no
promotions are needed to increase the sales, also the fact this would affect the
cost of the product the company doesn‟t undertake many promotion schemes.

17. The Distribution Channel and Parle
 Parle is able to provide products at the least price in the industry, and is able to
give least channel margins as the channel members earn through volumes and
not through high margins.
 The company has been able to push its new products into the market by
hooking them onto the fast moving products like Parle butter bite.
 Because of the strong relationship that Parle shares with the constituent channel
members, it forces the channel members to carry all its new products.

18. THANK YOU