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GLS School of Management IMBA
An Industrial Visit Report on
“Confectionary Industry with focus on Parle as Case Study”
In partial fulfillment of the requirements of Industrial Visit Project in the
Integrated Masters in Business Administration Programmed of School of
Management
GLS University
School of Management
IMBA Semester 2
Batch 2015-2020
Submitted to:
Prof. Neelam Purey
Prof. Chinmay Gandhi
Submitted By
Kushal Doshi (201500510010016)
Supan Maniar (201500510010044)
Shivang Pathak (201500510010067)
Jeet Shah (201500510010079)
Jinam Shah (201500510010080)
Kushal Shah (201500510010081)
Rohan Shah (201500510010120)
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TABLE OF CONTENTS
ACKNOWLEDGEMENT.......................................................................................................5
Institute’s Certificate...............................................................................................................6
Students’ Declaration ..............................................................................................................7
Chapter-1..................................................................................................................................8
Confectionery industries .........................................................................................................8
1.1 An overview of the industry.............................................................................................8
1.2 Major Players....................................................................................................................8
1.3 Major Products .................................................................................................................9
1.4 Contribution towards the gdp .........................................................................................10
1.5 Growth of the industry....................................................................................................10
1.6 Trends in the industry.....................................................................................................11
1.7 Packaging in the industry ...............................................................................................11
Chapter-2................................................................................................................................12
Parle Products Pvt. Ltd.........................................................................................................12
Introduction to the company.................................................................................................12
2.1 Journey of the company..................................................................................................13
2.2 Future of the company....................................................................................................13
2.3 Marketing of the company..............................................................................................13
2.4 Production process of the company................................................................................14
2.5 Plant layout of the company...........................................................................................16
2.7 Human Resource Management of the Company............................................................16
2.9 Research & Development department of the Company.................................................17
CHAPTER 3...........................................................................................................................18
An Industrial report on Confectionary Industry with focus on Parle as Case Study .....18
3.1 Introduction: ...................................................................................................................18
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3.2 Parle and its challenges: .................................................................................................18
3.3 Infrastructure: .................................................................................................................18
3.4 Availability:....................................................................................................................19
3.5 Market:............................................................................................................................19
3.6 Awards:...........................................................................................................................19
3.7 Public Relation: ..............................................................................................................19
3.8 SWOT ANALYSIS:-......................................................................................................20
STRENGTHS:..................................................................................................................20
WEAKNESS: ...................................................................................................................21
OPPORTUNITIES: ..........................................................................................................21
THREATS:.......................................................................................................................22
Chapter 4 ................................................................................................................................24
Research Methodology ..........................................................................................................24
Objectives of the Study.........................................................................................................24
4.1 Research Design .............................................................................................................25
4.2 Sources of Data...............................................................................................................25
Primary Data Collection Method:.....................................................................................25
Secondary Data Collection Method..................................................................................25
4.3 Data Collection Method..................................................................................................25
4.4 Sampling method............................................................................................................26
4.5 Sampling frame...............................................................................................................26
4.6 Data collection Instrument..............................................................................................26
4.7 Beneficiaries of the Study...............................................................................................27
4.8 Limitations of the study..................................................................................................27
Chapter 5 ................................................................................................................................28
Data Analysis and Interpretation.........................................................................................28
5.1 Questionaaire..................................................................................................................28
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5.2 Analysis and Interpretation .......................................................................................29
Q1. Which state do you live in? .......................................................................................29
Q2. What is your age group?............................................................................................30
Q3. How often do you purchase confectionery items?.....................................................31
Q4. Which company from the below options would you prefer while purchasing a
confectionery item? ..........................................................................................................32
Q5. On what scale would you prefer health while purchasing a confectionery product? 33
Q6. What are your preferred confectionery products? .....................................................34
Q7. What type of Biscuit do you prefer?..........................................................................35
Q8. What factor affects your choice while buying a Biscuit? ..........................................36
Q9. Do the price of a product affect your purchase option?.............................................37
Q10. Does the packaging of a product affect your purchase option?...............................38
Q11. Which pack do you prefer the most while purchasing Biscuits?.............................39
Q12. Which of the following Parle product attracts you the most? .................................40
Q13. Do Parle products satisfy your hunger?...................................................................41
Q14. While purchasing Parle biscuits what do you have in mind? ..................................42
Q15. At what time do you prefer to have Parle biscuits?.................................................43
Q16. How much will you spend if you want to buy a Parle product?..............................44
Q17. How will you eat Parle biscuits? .............................................................................45
Q18. How much will you rate Parle Products? ................................................................46
Chapter 6 ................................................................................................................................47
Findings...................................................................................................................................47
Chapter 7 ................................................................................................................................48
Conclusion ..............................................................................................................................48
Bibliography...........................................................................................................................49
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ACKNOWLEDGEMENT
“There is a great soldier, scientist, philanthropist and many great person we all have
witness because of their teachers lead them to have perfection.”
The project report and this practical learning of Industrial Visit cannot be possible for us to
understand if we don’t get help of a few person.
There are countless individuals who help us in making our journey of life successful and
enriching. As we resume towards the end of our Industrial Visit, we take this opportunity to
thank all those individuals who have contributed in one way or the other in making this journey
of ours successful and a great learning experience which will help us in our future endeavours.
First and foremost, I would like to thank my mentor, Prof. Chinmay Gandhi and Prof. Neelam
Purey, course conductors at GLS School of Management IMBA, for not only providing us with
invaluable advice and guidance to carry on with our project work, but also motivating us
throughout semester.
I would like to express my sincere gratitude to Prof. Amish Soni, Prof. Gurmeet Singh, for their
guidance and support. They supported us continuously with their valuable knowledge and
experience in the successful completion of the project.
Supan Maniar (201500510010044)
Shivang Pathak (201500510010067)
Jeet Shah (201500510010079)
Kushal Doshi (201500510010016)
Kushal Shah (201500510010081)
Jinam Shah (201500510010080)
Rohan Shah (201500510010120)
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INSTITUTE’S CERTIFICATE
It is to certify that this Industrial visit Report Titled “An Industrial Visit Report on
Confectionary Industry with focus on Parle as Case Study” is the bonafide work of “Supan
Maniar (201500510010044); Shivang Pathak (201500510010067); Jeet Shah
(201500510010079); Kushal Doshi (201500510010016); Kushal Shah (201500510010081);
Jinam Shah (201500510010080); Rohan Shah (201500510010120)” who carried out the
project under our supervision. We also certify further, that to the best of my knowledge the
work reported herein does not form part of any other project report or industrial visit project
on the basis of which a degree or award was conferred on an earlier occasion on this or any
other candidate.
Signature of the Faculty Guide
Prof. Neelam Purey
Prof. Chinmay Gandhi
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STUDENTS’ DECLARATION
We, Supan Maniar (201500510010044); Shivang Pathak (201500510010067); Jeet Shah
(201500510010079); Kushal Doshi (201500510010016); Kushal Shah (201500510010081);
Jinam Shah (201500510010080); Rohan Shah (201500510010120), hereby declare that the
report for Industrail Visit entitled “An Industrial Visit Report on Confectionary Industry
with focus on Parle as Case Study” is a result of our own work and our indebtedness to other
work publications, references, if any, have been duly acknowledged.
Place:
Date:
Name and signature of each students:
Supan Maniar
Shivang Pathak
Jeet Shah
Kushal Doshi
Kushal Shah
Jinam Shah
Rohan Shah
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CHAPTER-1
CONFECTIONERY INDUSTRIES
1.1 AN OVERVIEW OF THE INDUSTRY
The confectionery industry of India which has emerged as one of the largest and well developed
food processing sectors of the country was ranked as 25th
largest industry of the world in the
year 2009. Several multinational companies of the world have invested in this industry of India
changing the face of the industry and the credit of this goes to the growing Indian economy and
the Liberalization act of 90’s.
Due to the MALL CULTURE and CHANGING LIFESTYLE as well as the BOOM in the
country’s economy, there is a vast growth in consumer spending and the confectionery industry
has also been benefited by it. All of these essential components has led to rapid changes of the
CONFECTIONERY INDUSTRY of INDIA in terms of trends and consumer behaviour
patterns.
Creating awareness among the buyers through PROMOTIONAL CAMPAINS and
ADVERTISEMENTS, the entry of several Multi-National companies by launching new
products at affordable prices has not just increased the competition but has also increased the
Per-Capita-Consumption. Indian Confectionery Market has been growing since last few years
and the key factors are trend of gifting confectionery products and sales in the rural market.
The confectionery industry of India has been divided into three main segments such as:
1. Gum Market
2. Chocolate
3. Sugar Confectionery
Chewing Gum market, one of the sub-segments of Indian Confectionery Industry is expected
to grow at the fastest rate in terms of its value in the upcoming years.
1.2 MAJOR PLAYERS
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There is no company which permanently rules the market due to enough competition being
involved. The market shares are being captured upon by different industries of India. Though
the international companies are having a good amount of the market to share, but the Indian
industries or the domestic players have found a great share in the market .Talking about the
MAJOR or KEY PLAYERS of this industry and the brands whose products have set a trend
and changed the face of the CONFECTIONERY INDUSTRY of India are:
1. Parle Products Pvt. Ltd.
2. Perfetti Van Melle India Private Limited
3. Godrej Hershey Limited
4. Nestle India Ltd.
5. Candico India Ltd.
6. Cadbury India Ltd.
7. Wringely India Pvt. Ltd.
8. Lotte India Corporation Ltd.
9. Britania India Pvt. Ltd.
10. Indian Tobacco Company Pvt. Ltd.
1.3 MAJOR PRODUCTS
A Confectionery Industry can always be related to a Bakery because they have many products
in common, the KEY PRODUCTS of a Confectionery Industry are:
1. Biscuits
a. Parle-G
b. Monacco
c. Parle Marie
d. Britania Marie
e. Parle Bourbon
f. Britania Bourbon
g. Hide & Seek (Parle and Britania)
h. Hide & Seek Bourbon
Etc…
2. Sweets
a. Londonderry
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b. Melody
c. Mango Bite
d. Eclairs
e. Polo
f. Alpenlebe
g. Poppins
h. Dairy Milk
Etc…
3. Snacks
a. Wafers
b. Namkeen
c. Fulltoss
d. Munchies
e. Cheeselings
f. Mast-Cheese
g. Cheetos
h. Chocos
Etc…
1.4 CONTRIBUTION TOWARDS THE GDP
The size of Global processed confectionery industry is estimated to be valued around
USD80Billion and accounts for 3/4th
of the global confectionery sales. Besides its large size
only 6% of the processed confectioneries are traded across borders compared to the 16% of
major bulk agricultural commodities. Indian Confectionery Industry is large and is estimated
to be valued of USD1.3Billion and is likely to grow at over 10%, on the basis of an expected
GDP growth rate of 8% to 8.5% Per Year.
1.5 GROWTH OF THE INDUSTRY
The Indian Confectionery Industry had a market worth of USD1.3Billion in the year 2013
and is expected to grow by 71% to reach USD2.2Billion in the year 2018.
The Economic growth and development of the middle class families in India has resulted in
the rising of disposable incomes which has resulted in the growth of consumption of
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confectionery products by 45% while ½ of the market of confectionery market is consumed by
chewing gums.
1.6 TRENDS IN THE INDUSTRY
In the last couple of years the trends in confectionery industry of India has changed a lot.
Confectionery companies of India have not just improved their products but also have
innovated them in a new way. For example Parle has combined the biscuits HIDE & SEEK
and BOURBON making an unbelievable combination of HIDE & SEEK BOURBON.
These industry have hired the most reputed Actors and Actresses of India to be their Brand-
Ambassadors. For example, Hritik Roshan for Parle Hide & Seek, Ajay Devgan for Hajmola
etc… and these Actors/Actresses leave no chance to promote their respective brands at any
occasion, whether they use them in their movies or get the movie co-produced by those brands.
1.7 PACKAGING IN THE INDUSTRY
Packaging in the confectionery industry has been evolving a lot, before a decade or two, the
confectionery products were hand wrapped in wax papers but now with the evolution of
technology and its uses in the industry, packaging has changed from merely being hand
wrapped in wax papers to automatically being wrapped in polythene wrappers by automated
machines.
We all have been consuming Parle-G, the most selling product of Parle Products Pvt. Ltd. For
years and the above example can be applied to it, Parle-G in the beginning was hand wrapped
in wax papers but now is packed using automated machines in thin polythenes.
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CHAPTER-2
PARLE PRODUCTS PVT. LTD.
INTRODUCTION TO THE COMPANY
The Parle Industries was founded at 1929 in Mumbai. With great efforts of Mohanlal Dayal
Chauhan family the Parle Industries came into existence and today it has become one of the
greatest manufacturing confectionery company in India.
Parle Industries had been into this business since last 80 years and still their existence is
unrevealed. The Parle Company gained its name through the due to the largest selling biscuits
named “Parle-G”. Due to its consistency in the taste quality and nutrition Parle-G has
constantly been attracting the costumer since last 8 decades. Parle-G is one of the product of
the Parle Company which has been serving the rural areas from the time it had been introduced
in the market.
The main advantage of the Parle Company is that the company has a good distribution channel
in the overall country. The market share of the Parle Company is 40% in the market of biscuits
and 15% in the confectionery market all over India. Even at remote areas one would find a
Parle biscuit. It has taken years for Parle Company to establish this network. Parle Company
started just one salesman in Bombay and some few agents in other cities. Today the company
has almost as many as 33,00,000 outlets in the country.
The efficiency of the company is seen in its every step till the product reaches the retailers.
Starting from husking the wheat and melting the sugar and finally delivering the product the
company takes special care of each and every step. The largest confectionery plants of the Parle
company are in Bahadurgarh, Haryana and Neemrana located in Rajasthan of India.
Apart from producing biscuits and confectionery items in its own plant Parle has also many
contractors who are manufacturing biscuits and confectionery items for Parle Company. There
are in total 75 manufacturing units which are on contract bases. Parle’s product has been known
all over the country. It has become the household name for the families in the country. The
product is eaten by all people considering from kids to the adults and even the old people.
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2.1 JOURNEY OF THE COMPANY
The Parle company was founded by the Chauhan family and Mohanlal Dayal in the period in
which Britishers were ruling India. In 1929 the company inaugurated its premises and started
the production of biscuits and other confectionery items. In 1929 Parle made its entry into the
confectionery market and even after 10 years in 1939 the company was able to capture the
market with all variety of products available in the market. After the year 1949 the company
got a great turn due to the independence of the country. Till today the company has been
attracting a large number of consumers and it will still attract more so.
2.2 FUTURE OF THE COMPANY
Parle Company has from beginning a bright future because it was established in a period when
there was increasing demand of the confectionery items. Today, the group brand manager
Krishna Rao said the company is looking to establish more and more outlets. The manager also
added that it would like to increase still more than 7 million outlets in the coming five years.
2.3 MARKETING OF THE COMPANY
The term marketing mainly refers to the combination known as “4P’s of Marketing”, which
are:
1. Product
2. Place
3. Promotion
4. Pricing strategies
These 4P’s have been designed to mutually satisfy the exchanges of a target Market. A
marketing manager can follow as many principles of marketing that he wants but a marketing
strategy can always be reduced to these 4P’s.
1. Product: Parle has always been creating products that satisfies the hunger of a
customer, the most famous products of this company are its biscuits, it just doesn’t
perfect its production process but also takes care of the quality and its packaging, over
the decades Parle-G has been the most prioritized product of the company.
2. Place: Taking the example of Parle-G, this prioritized product of the company is
available in the most remote areas as well as it is also available in the villages which
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just has a strength of 1500 citizens. This is possible only because of the company’s
distribution strategy and distribution network which has been developed over 87 years
of the company’s existence. Parle has over 1500 distributors retailing it to more than
4,50,000 outlets directly as well as indirectly. Parle also has over 31 depots and C&F
agents supplying goods to the wide distribution network.
3. Promotion: Parle has always been mainly focusing on advertising through press ads
and mentioning about the basic benefits of energy and nutrition.
a. Every Year Parle holds day fairs at Venues such as 5-Star hotels where it
organizes family competitions and Parle products are given away.
b. Parle also produced my childhood favourite TV series Shaktimaan which was a
great commercial as well as beginning of superhero TV series in India.
c. Parle’s promotion campaign ‘Mera Sapna Such Hoga’ was the biggest
marketing campaign it had ever made which had a run of more than 6 Months,
the campaign talked about fulfilling the dreams of children.
d. Parle’s another promotion campaign, ‘Parle Saraswati Vandana’ was started in
the year 2002 as an inter-school contest in West-Bengal is still a going on
campaign with increasing participation every year.
e. Parle’s ‘Parle Golu Galata’ campaign didn’t had great runs as ‘Mera Sapna Such
Hoga’ and ‘Parle Saraswati Vandana’ but still was considered to be a success.
4. Pricing Strategies: Parle has adopted a unique pricing strategy that has always
penetrated the market. i.e. low prices and great products capturing the largest share in
the Indian Confectionery Market. Profit margin for Parle’s distributors is 4% where for
its retailers is 10-12% which varies due to different prices in different states. But still if
we consider Parle-G, whose packets are available with retailers for ₹5/- only, Retailer
gets ₹0.50/- per packet while the distributor only gets ₹0.20/- per packet, still they
haven’t discontinued the production of this famous product.
2.4 PRODUCTION PROCESS OF THE COMPANY
Like every confectionery industry Parle also has a unique and demanding specifications for its
production:
Stephen MixerRotary MouldCooling ConveyerLaminatorBiscuit Baking
OvenRotary CutterCounting UnitMultipack Wrapping MachinePoly BagsSealing
MachineTapping Machine
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1. Stephen Mixer: The Stephen Mixer is an ideal component which automatically feeds
the downstream make-up equipment for biscuits, rolls, etc…
2. Rotary Mould: The structure of a rotary mould is corrosion proof having stainless steel
and an ability to mould 7000 biscuits every minute.
3. Cooling Conveyer: The cooling conveyer helps the hot biscuit which has just came out
of the Rotary Mould to freeze itself in the atmospheric pressure, the conveyer belt is
ideally 150ft long.
4. Laminator: Laminator helps to produce hard biscuits such as Krack-Jack, Laminator
helps to create a puffy pastry-like structure, which is important for the products
structure and its sales success
5. Biscuit Baking Oven: A biscuit baking oven is ideally made of stainless still with a
steam tight oven divided with equal radiators. This also has an inspection door which
checks for the minute particles present in the biscuit, if any such particle is found, the
conveyer belt automatically stops and doesn’t resume until the particle is removed.
6. Rotary Cutter: This part of the production process is not available at all the production
factories as an integrated Rotary Cutter is already attached with the Rotary Mould.
Rotary Cutter is generally used to print fine designs on the product.
7. Counting Unit: The counting unit generally checks whether the process of producing
a biscuit is going fine or not, it checks whether the biscuits have the specified weight
or not, it checks 100 grams for 16 Biscuits.
8. Multipack Wrapping Machine: A multipack wrapping machine has a fixed plastic
role attached to a roller, this wrapper is fixed in machine and the wrapping is done by
a four heater roller which is fixed in the machine, the machine heats up the roller so that
the plastic is wrapped properly over the product. During this process a jaw cutter weighs
the biscuits and cuts of the plastic at the marked edge to get the perfect packing of
specified weight i.e. 100gms, 150gms, 200gms, etc…
9. Polybags: Polybags contain specified amount of Parle products in one plastic bag. This
process is done by the workers who forward the Polybag to a sealing machine.
10. Sealing Machine: A sealing machine has a heater rod which seals the packet on the
conveyer belt itself.
11. Tapping Machine: Six Polybags are placed in one corrugated box which is passed
through the tapping machine, where the boxes are packed and then sent through a long
diversion conveyer belt, this diversion conveyer belt ends at the dispatch section where
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36 such boxes are arranged on one pallet, from where they are sent to
DistributorsDealers all over India and the world.
2.5 PLANT LAYOUT OF THE COMPANY
Parle has set an essential needed requirements for setting up a plant, which if not fulfilled it
discontinues the production contract, following is the essential plant layout for manufacturing
Parle products or having a production contract with Parle:
2.7 HUMAN RESOURCE MANAGEMENT OF THE COMPANY
The company always focused on the development of the employees through their various
development methods. The turnover of the company is also very less. Apart from their total
turnover of ₹4000/- crore the company does not compromise in the terms of employee
engagement and other such activities.
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There are some HR techniques which are adopted by the company namely 5S, Kaizen, SQC,
TQM, Poka-Yoke. The abbreviation of the 5s is
1. Seiri (Segregation)
2. Serton (Neatness)
3. Seiso (Cleaning)
4. Seiketsu (Standardization)
5. Shitsuke (Discipline)
Whereas Kaizen means continuous improvement or change to become good, TQM is a business
related strategy aiming at betterment in the product through best quality in the market in all the
chains which it performs until the product reaches the consumer and the last Poka-Yoke means
the company focuses on the development of the product which is error free.
The workers working in the company agree to these techniques are more than 60% as they
believe this are good techniques for any company to follow. Even though there has been the
techniques which are very useful the workers had some issue with the machines as they did not
provide excellent items due to wastage of the product. Apart from this problem the company
has very well collaborated with the workers working in the premises and all of them are well
aware about the production technique.
2.9 RESEARCH & DEVELOPMENT DEPARTMENT OF THE
COMPANY
The company has served the demand of the nation’s consumers to a great extent but when the
question of research and development arises Parle does not compromise with the same. Parle
often comes up with a new product till it completes one decade or even less than that. Parle
industries are very well aware about the importance of the research and they knew their demand
would still increase in the near future.
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CHAPTER 3
AN INDUSTRIAL REPORT ON
CONFECTIONARY INDUSTRY
WITH FOCUS ON PARLE AS CASE
STUDY
3.1 INTRODUCTION:
The market of Confectionery industries in India is very large. Parle Products Private Limited
dominate this confectionery industries. Parle Products came into existence in 1907. In 1880,
Late Mohanlal Dayal came in Mumbai for work from his village Pardi, in district of Surat.
Parle Products has been India's largest manufacturer of confectionery items. Parle Products has
been serving for more than 85 years. Parle Products is the maker of the world’s largest selling
biscuit, Parle-G. Parle holds 40% share of total biscuit market in India and 15% share of
confectionery biscuits in India.
3.2 PARLE AND ITS CHALLENGES:
Parle is very sensitive product in matter of price. The sales of Parle had seen high decline due
to increase in its price of just 50 paisa. The sales of Parle has suffered by its fake products like
Parle Jee and many more. This fake products tries to extract the market of Parle. The serious
competitor of Parle-G is Tiger biscuit made by Britannia.
3.3 INFRASTRUCTURE:
Parle has many manufacturing units in India. First Plant of Parle Products was in Mumbai. The
plant of Parle Products in Kutch is the largest Parle Product plant in India. Other than this Parle
Products has various plant like Neemrana in Rajasthan, Bangalore in Karnataka, Khopoli in
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Maharashtra and Bahadurgarh in Haryana. Parle also has various manufacturing units on
contract basis like Sweety Industries.
3.4 AVAILABILITY:
Outside India, Parle Products are also available in United States of America, United
Kingdom, Europe, Singapore, Canada and many other countries. The parle products of 80
grams is sold at lowest price at 15 cents at Indian stores and at 40 cents at other retailers.
3.5 MARKET:
According to a report released in 2011, Parle-G is the largest selling biscuit in world. Parle-G
contributes about 70 % market share in glucose biscuit category in India. It is followed by
Britannia Tiger up to 18% and ITC’s Sunfeast up to 9%. Parle-G is estimated to be worth over
20 Billion Indian Rupees (2,000 Crores Indian Rupees). Parle-G contributes more than 50% of
company’s turnover.
3.6 AWARDS:
Parle Products is the winner of 111 Gold awards, 26 Silver awards, and 4 Bronze awards at the
Monde Selection Awards, the global standard for quality in Food category.
3.7 PUBLIC RELATION:
Parle has done many enhancing public relations. Some of them are as follows:
In 1997, Parle-G sponsored the tale serial of Indian Superhero, named Shaktimaan that went
on huge success and became very popular especially among children.
In 2002, a national level promo was made by Parle called ‘Parle-G Mera Sapna Sach Hoga’
which talks about fulfilling the dreams of children. This promo was run for a period of 6
months.
Parle Saraswati Vandana, is an inter-school contest based on the Saraswati Puma celebrations.
It was started in the year 2002. Since it started in 2002, the number of students participating
each year had increased.
Reason of Parle-G Maintaining It’s Price of Rs.4.00 for the Last 25 Years?
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• Low profit margin.
• Decrease in weight per biscuit.
• Bulk purchase of raw material.
• Reduced wastage - 1% of the 115 tons
• Increased productivity.
• Availability in remote places.
• Avoid sophisticated packing
• 100g pack costing Rs 4 has net weight of 93.5g from Jan 2008
• Parle-G has seen the variation in sales due to increase in price.
3.8 SWOT ANALYSIS:-
STRENGTHS:
(1) Low price as compared to competitors:
In the case of price, its known to everyone that parle has the lowest and the best affordable
price, in comparison to any other biscuit. The parle is giving competition to the other companies
through this best feature of it that is price.
(2) An experienced team of sales and marketing executives:
Parle selects the best executives for sales and marketing .The person possessing right
qualifications gets the right job. And the parle is one of the oldest company so has a lot
experience in the field of it and so it has the best experienced team of sales and marketing.
(3) Largest distribution system:
The extensive distribution network, built over the years, is a major strength for Parle-G.
Parle-G is available to consumers, even in the most remote of places. 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 and retailers. Additionally, there are 31
Depots and C&F agents supplying goods to a wide distribution network.
(4) Wide coverage area of manufacturing units:
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GLS School of Management IMBA
Parle Products have been demanded very frequently and so there is a wide coverage area of
manufacturing units as to meet up the supply. One of the major manufacturing unit in Gujarat
is in nadiad.
WEAKNESS:
(1) Breakage of biscuits while delivering to retailers:
Sometimes while delivering biscuits to the retailers there is damage of biscuits, this also
happens due to poor roads of villages sometimes .this decreases the goodwill of the Parle. But
nowadays this is improving and this problem is getting sorted out.
(2) No proper replacement system for broken biscuits to retailers:
There is no proper replacement system for broken biscuits to retailers. Company should start a
program for the loyal retailers and wholesalers to reduce their complaints by providing
Timely supply and replacement. This will help in increasing their sales.
(3) Improper and irregular supply:
There is improper supply of products to retailers and distributors. The replacement of the
damaged and expired biscuits should be prompt and without any hassles, so that retailer can be
saved from the loss of the expired and damaged goods.
(4) Poor packaging in family pack of glucose biscuits:
One of the major problem with parle is its packaging, it is said the packaging of the product
gives the first impression of the product and the company. Also the layer of packaging is very
thin so it’s preferable to have a double layer packaging. But on this issue also company has
improved a lot. The company has an attractive packaging in the recently launched products.
OPPORTUNITIES:
(1) Rising demand for innovative packaging in packaged foods:
Parle should adopt new innovative packaging techniques. Due to proper packaging the
Quality of the biscuits will also be retained well and the product damaging chances get reduced.
(2) Retaining loyal retailers or wholesalers:
P a g e | 22
GLS School of Management IMBA
Parle can motivate retailers and wholesalers with good incentives and programs. The Parle
Company should maintain the loyal retailers and wholesalers since one of the most important
Strengths of the company is its wide spread distribution network
(3) New innovative promotion techniques:
Parle is weak in Eastern India and Tamil Nadu. To cover up this loop hole, they are giving
Scholarships to children in these states to cover up the corporate equity which is less than
Britannia in these states. Also this is a part of CSR and due to this the company’s brand value
goes higher and higher.
(4) Innovation and Rural Market:
Innovating new products, especially non-glucose type biscuits, and its test marketing in the
Rural market with its existing distribution channel would help them establish a new market in
Rural India. This would be also helping to have development in the rural sector of India.
THREATS:
(1) Highly advertised brands such as Britannia:
One of the major competitor of the Parle Company is Britannia. Though parle has one of the
best biscuit in the market but as said earlier the packaging and advertising reflects your brand.
And in this case the Britannia is further than Parle.
(2) Ever increasing competition from multinationals and local companies:
Due to other company’s strong marketing skill giving a strong competition to Parle. Other
multinational new companies are entering the market and grabbing attention as they are coming
up with brand ambassadors such as Shah Rukh Khan, Hritik Roshan, and Rahul Dravid.
(3) Increase in sale of cheap local bakery products:
There are local retailers who have increased their sale and distribution system giving
competition to Parle. Also their products are comparatively cheaper than Parle products so this
is a threat to the company.
(4) Emerging substitutes like wafers, snacks and toast:
Earlier it was just the biscuit which was available as snacks item. Now there are many other
Products like wafers and toast. Thus company is facing threat due to the new substitute
P a g e | 23
GLS School of Management IMBA
Products. Also people prefer more wafers, chips, nachos etc. Thus it is threat for the Parle
biscuit product. Parle has also started to go with new trends and has launched Parle wafers.
Full Toss, namkeens etc.
P a g e | 24
GLS School of Management IMBA
CHAPTER 4
RESEARCH METHODOLOGY
OBJECTIVES OF THE STUDY
1) To gain more knowledge about confectionery industries.
2) To know the market share of confectionery industries.
3) To find out the consumer preferences in confectionery industries.
4) To find out the major competitor of PARLE.
5) To find out the satisfaction levels towards service provide by PARLE.
6) To make recommendations to improve the services given by PARLE.
7) To know opportunities in confectionery market.
8) To know which company focus more on health issues.
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GLS School of Management IMBA
4.1 RESEARCH DESIGN
Our research design is prescriptive which will provide you the most information which most
of you may have not been familiar with. From our research you will come to know that Parle
Company is not just a simple biscuit company. It has a lot more.
4.2 SOURCES OF DATA
Like everyone even we had obtained data from two methods:
1. Primary Data Collection Method
2. Secondary Data Collection Method
PRIMARY DATA COLLECTION METHOD:
Our primary data was mainly collected by visiting the Sweety Industries Pvt. Ltd. An
operational manufacturing unit at Nadiad and by getting the questionnaire prepared by being
filled by the people who consume confectionery products at regular basis.
SECONDARY DATA COLLECTION METHOD
Our secondary data was collected from various websites hosted on the internet as well as from
printed materials such as Advertisements, Newspapers, Magazines etc…
4.3 DATA COLLECTION METHOD
We have used convenient data collection method in simple words in this type of data collection
method where the first available primary source of data will be used for the survey and
additional requirements. There is no prior inclusion for identifying the subjects. It’s one of the
best method of data collection.
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GLS School of Management IMBA
A basic simple example of this method can be stopping random persons from the street and
asking questionnaire questions. But nowadays most of the persons are connected through
internet so the best way for the survey is online questionnaire .So we have made a survey
through passing on the online form.
4.4 SAMPLING METHOD
Simple Random sampling method: this method is the most pure and the most widely used
sampling method. In random sampling each member of population is equally like to be chosen
as a part of sample. All gets equal chance for the survey. We have used this method but not
personally for each member but taking help of the social network we have passed survey forms
to many random peoples and conducted the survey.
4.5 SAMPLING FRAME
It is a list of items or people forming the population from which a sample is taken.
Our list for the survey was approximate 250 persons.
4.6 Data collection Instrument
Our data collection instrument was Google Forms, which enabled us to get it filled not only
from the people of India and its various stated but it also enabled us to get in touch with the
people in foreign countries and get an idea about their thinking of the Indian Confectionery
Industry.
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GLS School of Management IMBA
4.7 BENEFICIARIES OF THE STUDY
 The persons who were the part of the survey came to know about the company more
and more.
 By doing research we were also beneficial as our knowledge about the company has
increased.
 Parle Company is getting beneficial as more and more persons came to know about its
actual profile.
4.8 LIMITATIONS OF THE STUDY
 As we all know the research study takes a long time and there has to be many data
collected so one of the major limitation was time constraint.
 Identifying the proper authentic source of the data was actually a big problem.
 May be sometimes we receive improper and irrelevant answers in the questionnaire
survey.
P a g e | 28
GLS School of Management IMBA
CHAPTER 5
DATA ANALYSIS AND
INTERPRETATION
As stated in the previous chapter we used Convenience sampling for our research on the
Confectionery Industry by the means of Google Forms and the following were the results which
we found but before we give our interpretation we have also mentioned the questions which
we had asked:
5.1 QUESTIONAAIRE
1. Which state do you live in?
2. What is your age group?
3. How often do you purchase confectionery items?
4. Which company from the below options would you prefer while purchasing a confectionery
item?
5. On what scale would you prefer health while purchasing a confectionery product?
6. What are your preferred confectionery products?
7. What type of Biscuit do you prefer?
8. What factor affects your choice while buying a Biscuit?
9. Do the price of a product affect your purchase option?
10. Does the packaging of a product affect your purchase option?
11. Which pack do you prefer the most while purchasing Biscuits?
12. Which of the following Parle product attracts you the most?
13. Do Parle products satisfy your hunger?
14. While purchasing Parle biscuits what do you have in mind?
15. At what time do you prefer to have Parle biscuits?
16. How much will you spend if you want to buy a Parle product?
17. How will you eat Parle biscuits?
18. How much will you rate Parle Products?
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GLS School of Management IMBA
5.2ANALYSIS AND INTERPRETATION
Q1. WHICH STATE DO YOU LIVE IN?
Here is a detailed analysis from which places people have answered to the questionnaire
(the place here refers to the states). Most of the people have filled the questionnaire from
the state of Gujarat i.e. approximately more than 50 people, while there are some other
people from the states like Andhra Pradesh, Karnataka, Madhya Pradesh and other. The
simple conclusion from his data shows that Parle products or the confectionery products
are consumed everywhere in the world.
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GLS School of Management IMBA
Q2. WHAT IS YOUR AGE GROUP?
In this piechart, there are more of young people who are consuming the confectionery products.
The confectionery products are such items which are even purchased by a small kid and even
by an old man. Majority of the confectionery products are consumed by the young age group.
Here in this chart as well the percentage of young people that is 13 to 23 years is more than
any other age group. It can be concluded from this data that the confectionery product is
consumed by all age groups of people.
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GLS School of Management IMBA
Q3. HOW OFTEN DO YOU PURCHASE CONFECTIONERY ITEMS?
As shown in the above chart you can understand that when we asked people that how often do
the purchase confectionery items during a week, more than 40% people voted that they
purchase confetionery items thrice a week, thus we can assume that the per capita consumption
is more in the case of confectionery items. While almost 25% people have voted that they
consume confectionery items 4 times a week while combining 15% people purchase twice,
10% consume once as well as 5 times during a week.
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GLS School of Management IMBA
Q4. WHICH COMPANY FROM THE BELOW OPTIONS WOULD YOU
PREFER WHILE PURCHASING A CONFECTIONERY ITEM?
As it is clearly seen from the chart that more people are eager to buy parle products than
they prefer to go to any other brands of biscuits. It is seen that from the questionnaire
prepared, 42.6% of the people will purchase the Parle product including biscuits, toffees
and other items. From the above chart we can assume that the closest competitor of Parle
canbe Nestle and Britania but Sunfeast is not even near to the market capture of Parle.
P a g e | 33
GLS School of Management IMBA
Q5. ON WHAT SCALE WOULD YOU PREFER HEALTH WHILE
PURCHASING A CONFECTIONERY PRODUCT?
Here as you can see, people prefer health to some extent while some people give much
importance to health while they are consuming any confectionery item. The scale shown
here is from 1-5 i.e. there are 10 people who believe that according to them the health does
not affect much and so they gave it the scale from 1-2, whereas there are some people who
think that health affects to some extent while consuming any confectionery product. More
than 30 people admit to more health when they purchase a confectionery product. In short
more people think that health affects much if any confectionery product is to be purchased
and consumed.
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GLS School of Management IMBA
Q6. WHAT ARE YOUR PREFERRED CONFECTIONERY PRODUCTS?
According to the survey done, people (consumers) are more interested in buying chocolates
among all other confectionery items and products. The next importance is given to the
biscuits which includes sugar-added, sugar-free and others. Among these type of biscuits
the selling of sugar-added biscuits is more than sugar-free biscuits because people like the
taste of sugar-added more than that of sugar-free.
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GLS School of Management IMBA
Q7. WHAT TYPE OF BISCUIT DO YOU PREFER?
According to our survey and the responses we got from our questionaaire we have came to
an conclusion that people prefer more biscuits which are of cookie type such as Hide &
Seek acquiring almost 44.3% of the market on which parle is focusing more right now. The
second best consumed biscuits are creamy such as Bourbon which occupy 23% of the
market, the other biscuits such as Sweet, Salty and Glucose have a market share of 10.7%,
9.8% and 12.3& respectively.
P a g e | 36
GLS School of Management IMBA
Q8. WHAT FACTOR AFFECTS YOUR CHOICE WHILE BUYING A BISCUIT?
From our survey we found that almost 67% of the people buy a biscuit while having the
quality of the biscuit in their mind, the second most preferred choice while buying a biscuit
is its Flavour itself. From our survey we found that less people care about the availability,
quantity, and price of a product.
P a g e | 37
GLS School of Management IMBA
Q9. DO THE PRICE OF A PRODUCT AFFECT YOUR PURCHASE OPTION?
People don’t consider the price of the biscuit while purchasing it, but when the question is
of a particular brand then they will obviously compare the prices of various brands. Nearly
40% of the people thought that they may affect by the price of the biscuit. It is most possible
that people do not refer to the price of the biscuits which are available to them at cheap
prices, but they will definitely check for the same if the price increases.
P a g e | 38
GLS School of Management IMBA
Q10. DOES THE PACKAGING OF A PRODUCT AFFECT YOUR PURCHASE
OPTION?
Mainly consumer are eager about the quality of the biscuit they are going to purchase but
in some cases the packaging of the product also becomes important. Here as well majority
of the people that is more than 40% are interested in how the packaging of the product is
done. They are also interested in knowing how the finishing of the product is done. Some
people are not interested in knowing these things and so they just buy the product for the
quality and quantity it serves.
P a g e | 39
GLS School of Management IMBA
Q11. WHICH PACK DO YOU PREFER THE MOST WHILE PURCHASING
BISCUITS?
From our survey we have found that almost 88% of the people buy a medium pack which
we can say that captures most of the markets attention due to the number of biscuits
available in the pack and the quality served in it while a small number of people buy a
medium and a small pack.
P a g e | 40
GLS School of Management IMBA
Q12. WHICH OF THE FOLLOWING PARLE PRODUCT ATTRACTS YOU THE
MOST?
As we all know ParleG is the most selling biscuit in the world, the trend has changed people
are more moving towards the cookies which are manufactured by the Parle company. In
today’s world consumer are more interested in buying Hide & Seek than any other parle
product. As shown here 61.5% of consumers are willing to buy Hide & Seek and no other
Parle products.
P a g e | 41
GLS School of Management IMBA
Q13. DO PARLE PRODUCTS SATISFY YOUR HUNGER?
So, the thirteenth question which we asked in our questionnaire was whether the parle
products satisfy you hunger? We found no surprise that 82% of the people voted that yes
parle products do satisfy our hunger.
P a g e | 42
GLS School of Management IMBA
Q14. WHILE PURCHASING PARLE BISCUITS WHAT DO YOU HAVE IN
MIND?
Parle products are known for their taste and nutrition especially their biscuits. Biscuits are
such a product that they are more purchased for their taste than other things, next maybe
the nutrition which would be obtained from the biscuit. Almost 50% of the people are
purchasing the parle product because of the taste and rest of the people are purchasing for
other things such as nutrition, flavour or the reputation of the brand.
P a g e | 43
GLS School of Management IMBA
Q15. AT WHAT TIME DO YOU PREFER TO HAVE PARLE BISCUITS?
From our survey we found that almost 50% of the people prefer to consume Parle biscuits
randomly while 27.9% people prefer to have as evening snacks and 21.3% people prefer to
have it in the morning while having their breakfast while only 1.6% people prefer to have parle
biscuits while having lunch.
P a g e | 44
GLS School of Management IMBA
Q16. HOW MUCH WILL YOU SPEND IF YOU WANT TO BUY A PARLE
PRODUCT?
From our survey we found that almoost 39% people are ready to spend ₹16-20 to buy a parle
product while 37% people are ready to spend ₹11-15 to buy a parle product, while 23.8%
people are ready to spend ₹6-10 to purchase a parle product only 0.8% people are ready to
spend ₹1-5.
P a g e | 45
GLS School of Management IMBA
Q17. HOW WILL YOU EAT PARLE BISCUITS?
Biscuits are such a product which can be eaten with anything. Parle products are also such
a kind of. Many people are eating Parle biscuits with milk early in the morning because of
the great taste that mixes with the milk and gives a good result. Almost half of the people
from the survey take it with milk.
P a g e | 46
GLS School of Management IMBA
Q18. HOW MUCH WILL YOU RATE PARLE PRODUCTS?
Consumer in the market have rated the Parle biscuit in majority from 4 to 5 points. More
than 60 consumers are giving parle products good score. They are happy with what the
company is giving to the people in the market and is not more expecting much changes for
the same.
P a g e | 47
GLS School of Management IMBA
CHAPTER 6
FINDINGS
So what did we learn from our Industrial Visit programme and the Questionnaire we got filled
from the people?
1. Confectionery Industry of India is the 25th
largest industry in the world.
2. The people from Age group 13-23 consume more confectionery products than other
age groups.
3. More than 40% of people purchase confectionery items thrice a week.
4. Parle has the biggest market share of consumption of confectionary items of 42.6%
market share.
5. People prefer health to some extent while some people give much importance to health
while they are consuming any confectionery item.
6. Chocolates are the most preferred confectionery item while sugar-added biscuits are the
second most consumed confectionery product.
7. Most preferred biscuits are cookie type biscuits.
8. Almost 67% of the people buy a biscuit while having the quality of the biscuit in their
mind.
9. People don’t consider the price of the biscuit while purchasing it, but when the question
is of a particular brand then they will obviously compare the prices of various brands.
10. Almost 88% of the people buy a medium pack.
11. In today’s world consumer are more interested in buying Hide & Seek than any other
parle product.
12. Almost 50% of the people are purchasing the parle product because of the taste and rest
of the people are purchasing for other things such as nutrition, flavour or the reputation
of the brand.
13. Almost 50% of the people prefer to consume Parle biscuits randomly.
14. Almost half of the people from the survey take it with milk.
15. Consumer in the market have rated the Parle biscuit in majority from 4 to 5 points
P a g e | 48
GLS School of Management IMBA
CHAPTER 7
CONCLUSION
Like every company Parle also has the 4P’s of Marketing Product; Price; Promotion; Place.
These are all important aspects of marketing strategy. Marketing is not possible without these
4 Aspects. The way a product is marketed is known as Marketing Strategy. Sellers, retailers,
buyers, and wholesalers play an important role in these marketing mix. Hence, there is lot of
scope in marketing strategy. Parle Company had made huge profit by marketing their products
in India and in foreign countries.
It was concluded that Parle is the first preference of both the customers and retailers (Organized
and unorganized both) because of its price and brand image.
Amongst consumers across the world the Parle Biscuit brands, such as, Parle-G, Monaco,
Krack-jack, Marie, Hide & Seek enjoy a strong imagery and appeal. Which has resulted into
Parle-G being the “world’s largest selling biscuit".
Quality, health and great taste is symbolized by Parle. Constantly innovating and catering to
new tastes PARLE-G has 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 brand image for long time.
P a g e | 49
GLS School of Management IMBA
BIBLIOGRAPHY
1. http://www.studymode.com/essays/Parle-g-Case-Study-619098.html
http://www.exchange4media.com
2. http://businesstoday.intoday.in/story/parle-diversifies-frombiscuits-to-
snacks/1/194174.html
3. http://businesstoday.intoday.in/story/parle-diversifies-frombiscuits-to-
snacks/1/194174.html
4. http://economictimes.indiatimes.com/slideshows/advertising-marketing/parle-g-
thejourney-of-a-biscuit-for-masses/numbo-jumbo/slideshow/24922125.cms
5. http://www.parleproducts.com/exports/exports.php
6. http://www.parleproducts.com/about_parle/overview.php
7. http://www.parleproducts.com/about_parle/legacy.php
8. http://www.parleproducts.com/about_parle/quality.php
9. http://www.parleproducts.com/about_parle/awards.php
10. http://www.parleproducts.com/csr/overview.php
11. http://www.parleproducts.com/saraswati/saraswati_vandana_overview.php
12. http://www.parlegolugalata.com/
13. https://groups.google.com/forum/#!topic/pumbaexecmba2013/cqQRzOMAlak

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Parle Products Industrial Visit Report

  • 1. P a g e | 1 GLS School of Management IMBA An Industrial Visit Report on “Confectionary Industry with focus on Parle as Case Study” In partial fulfillment of the requirements of Industrial Visit Project in the Integrated Masters in Business Administration Programmed of School of Management GLS University School of Management IMBA Semester 2 Batch 2015-2020 Submitted to: Prof. Neelam Purey Prof. Chinmay Gandhi Submitted By Kushal Doshi (201500510010016) Supan Maniar (201500510010044) Shivang Pathak (201500510010067) Jeet Shah (201500510010079) Jinam Shah (201500510010080) Kushal Shah (201500510010081) Rohan Shah (201500510010120)
  • 2. P a g e | 2 GLS School of Management IMBA TABLE OF CONTENTS ACKNOWLEDGEMENT.......................................................................................................5 Institute’s Certificate...............................................................................................................6 Students’ Declaration ..............................................................................................................7 Chapter-1..................................................................................................................................8 Confectionery industries .........................................................................................................8 1.1 An overview of the industry.............................................................................................8 1.2 Major Players....................................................................................................................8 1.3 Major Products .................................................................................................................9 1.4 Contribution towards the gdp .........................................................................................10 1.5 Growth of the industry....................................................................................................10 1.6 Trends in the industry.....................................................................................................11 1.7 Packaging in the industry ...............................................................................................11 Chapter-2................................................................................................................................12 Parle Products Pvt. Ltd.........................................................................................................12 Introduction to the company.................................................................................................12 2.1 Journey of the company..................................................................................................13 2.2 Future of the company....................................................................................................13 2.3 Marketing of the company..............................................................................................13 2.4 Production process of the company................................................................................14 2.5 Plant layout of the company...........................................................................................16 2.7 Human Resource Management of the Company............................................................16 2.9 Research & Development department of the Company.................................................17 CHAPTER 3...........................................................................................................................18 An Industrial report on Confectionary Industry with focus on Parle as Case Study .....18 3.1 Introduction: ...................................................................................................................18
  • 3. P a g e | 3 GLS School of Management IMBA 3.2 Parle and its challenges: .................................................................................................18 3.3 Infrastructure: .................................................................................................................18 3.4 Availability:....................................................................................................................19 3.5 Market:............................................................................................................................19 3.6 Awards:...........................................................................................................................19 3.7 Public Relation: ..............................................................................................................19 3.8 SWOT ANALYSIS:-......................................................................................................20 STRENGTHS:..................................................................................................................20 WEAKNESS: ...................................................................................................................21 OPPORTUNITIES: ..........................................................................................................21 THREATS:.......................................................................................................................22 Chapter 4 ................................................................................................................................24 Research Methodology ..........................................................................................................24 Objectives of the Study.........................................................................................................24 4.1 Research Design .............................................................................................................25 4.2 Sources of Data...............................................................................................................25 Primary Data Collection Method:.....................................................................................25 Secondary Data Collection Method..................................................................................25 4.3 Data Collection Method..................................................................................................25 4.4 Sampling method............................................................................................................26 4.5 Sampling frame...............................................................................................................26 4.6 Data collection Instrument..............................................................................................26 4.7 Beneficiaries of the Study...............................................................................................27 4.8 Limitations of the study..................................................................................................27 Chapter 5 ................................................................................................................................28 Data Analysis and Interpretation.........................................................................................28 5.1 Questionaaire..................................................................................................................28
  • 4. P a g e | 4 GLS School of Management IMBA 5.2 Analysis and Interpretation .......................................................................................29 Q1. Which state do you live in? .......................................................................................29 Q2. What is your age group?............................................................................................30 Q3. How often do you purchase confectionery items?.....................................................31 Q4. Which company from the below options would you prefer while purchasing a confectionery item? ..........................................................................................................32 Q5. On what scale would you prefer health while purchasing a confectionery product? 33 Q6. What are your preferred confectionery products? .....................................................34 Q7. What type of Biscuit do you prefer?..........................................................................35 Q8. What factor affects your choice while buying a Biscuit? ..........................................36 Q9. Do the price of a product affect your purchase option?.............................................37 Q10. Does the packaging of a product affect your purchase option?...............................38 Q11. Which pack do you prefer the most while purchasing Biscuits?.............................39 Q12. Which of the following Parle product attracts you the most? .................................40 Q13. Do Parle products satisfy your hunger?...................................................................41 Q14. While purchasing Parle biscuits what do you have in mind? ..................................42 Q15. At what time do you prefer to have Parle biscuits?.................................................43 Q16. How much will you spend if you want to buy a Parle product?..............................44 Q17. How will you eat Parle biscuits? .............................................................................45 Q18. How much will you rate Parle Products? ................................................................46 Chapter 6 ................................................................................................................................47 Findings...................................................................................................................................47 Chapter 7 ................................................................................................................................48 Conclusion ..............................................................................................................................48 Bibliography...........................................................................................................................49
  • 5. P a g e | 5 GLS School of Management IMBA ACKNOWLEDGEMENT “There is a great soldier, scientist, philanthropist and many great person we all have witness because of their teachers lead them to have perfection.” The project report and this practical learning of Industrial Visit cannot be possible for us to understand if we don’t get help of a few person. There are countless individuals who help us in making our journey of life successful and enriching. As we resume towards the end of our Industrial Visit, we take this opportunity to thank all those individuals who have contributed in one way or the other in making this journey of ours successful and a great learning experience which will help us in our future endeavours. First and foremost, I would like to thank my mentor, Prof. Chinmay Gandhi and Prof. Neelam Purey, course conductors at GLS School of Management IMBA, for not only providing us with invaluable advice and guidance to carry on with our project work, but also motivating us throughout semester. I would like to express my sincere gratitude to Prof. Amish Soni, Prof. Gurmeet Singh, for their guidance and support. They supported us continuously with their valuable knowledge and experience in the successful completion of the project. Supan Maniar (201500510010044) Shivang Pathak (201500510010067) Jeet Shah (201500510010079) Kushal Doshi (201500510010016) Kushal Shah (201500510010081) Jinam Shah (201500510010080) Rohan Shah (201500510010120)
  • 6. P a g e | 6 GLS School of Management IMBA INSTITUTE’S CERTIFICATE It is to certify that this Industrial visit Report Titled “An Industrial Visit Report on Confectionary Industry with focus on Parle as Case Study” is the bonafide work of “Supan Maniar (201500510010044); Shivang Pathak (201500510010067); Jeet Shah (201500510010079); Kushal Doshi (201500510010016); Kushal Shah (201500510010081); Jinam Shah (201500510010080); Rohan Shah (201500510010120)” who carried out the project under our supervision. We also certify further, that to the best of my knowledge the work reported herein does not form part of any other project report or industrial visit project on the basis of which a degree or award was conferred on an earlier occasion on this or any other candidate. Signature of the Faculty Guide Prof. Neelam Purey Prof. Chinmay Gandhi
  • 7. P a g e | 7 GLS School of Management IMBA STUDENTS’ DECLARATION We, Supan Maniar (201500510010044); Shivang Pathak (201500510010067); Jeet Shah (201500510010079); Kushal Doshi (201500510010016); Kushal Shah (201500510010081); Jinam Shah (201500510010080); Rohan Shah (201500510010120), hereby declare that the report for Industrail Visit entitled “An Industrial Visit Report on Confectionary Industry with focus on Parle as Case Study” is a result of our own work and our indebtedness to other work publications, references, if any, have been duly acknowledged. Place: Date: Name and signature of each students: Supan Maniar Shivang Pathak Jeet Shah Kushal Doshi Kushal Shah Jinam Shah Rohan Shah
  • 8. P a g e | 8 GLS School of Management IMBA CHAPTER-1 CONFECTIONERY INDUSTRIES 1.1 AN OVERVIEW OF THE INDUSTRY The confectionery industry of India which has emerged as one of the largest and well developed food processing sectors of the country was ranked as 25th largest industry of the world in the year 2009. Several multinational companies of the world have invested in this industry of India changing the face of the industry and the credit of this goes to the growing Indian economy and the Liberalization act of 90’s. Due to the MALL CULTURE and CHANGING LIFESTYLE as well as the BOOM in the country’s economy, there is a vast growth in consumer spending and the confectionery industry has also been benefited by it. All of these essential components has led to rapid changes of the CONFECTIONERY INDUSTRY of INDIA in terms of trends and consumer behaviour patterns. Creating awareness among the buyers through PROMOTIONAL CAMPAINS and ADVERTISEMENTS, the entry of several Multi-National companies by launching new products at affordable prices has not just increased the competition but has also increased the Per-Capita-Consumption. Indian Confectionery Market has been growing since last few years and the key factors are trend of gifting confectionery products and sales in the rural market. The confectionery industry of India has been divided into three main segments such as: 1. Gum Market 2. Chocolate 3. Sugar Confectionery Chewing Gum market, one of the sub-segments of Indian Confectionery Industry is expected to grow at the fastest rate in terms of its value in the upcoming years. 1.2 MAJOR PLAYERS
  • 9. P a g e | 9 GLS School of Management IMBA There is no company which permanently rules the market due to enough competition being involved. The market shares are being captured upon by different industries of India. Though the international companies are having a good amount of the market to share, but the Indian industries or the domestic players have found a great share in the market .Talking about the MAJOR or KEY PLAYERS of this industry and the brands whose products have set a trend and changed the face of the CONFECTIONERY INDUSTRY of India are: 1. Parle Products Pvt. Ltd. 2. Perfetti Van Melle India Private Limited 3. Godrej Hershey Limited 4. Nestle India Ltd. 5. Candico India Ltd. 6. Cadbury India Ltd. 7. Wringely India Pvt. Ltd. 8. Lotte India Corporation Ltd. 9. Britania India Pvt. Ltd. 10. Indian Tobacco Company Pvt. Ltd. 1.3 MAJOR PRODUCTS A Confectionery Industry can always be related to a Bakery because they have many products in common, the KEY PRODUCTS of a Confectionery Industry are: 1. Biscuits a. Parle-G b. Monacco c. Parle Marie d. Britania Marie e. Parle Bourbon f. Britania Bourbon g. Hide & Seek (Parle and Britania) h. Hide & Seek Bourbon Etc… 2. Sweets a. Londonderry
  • 10. P a g e | 10 GLS School of Management IMBA b. Melody c. Mango Bite d. Eclairs e. Polo f. Alpenlebe g. Poppins h. Dairy Milk Etc… 3. Snacks a. Wafers b. Namkeen c. Fulltoss d. Munchies e. Cheeselings f. Mast-Cheese g. Cheetos h. Chocos Etc… 1.4 CONTRIBUTION TOWARDS THE GDP The size of Global processed confectionery industry is estimated to be valued around USD80Billion and accounts for 3/4th of the global confectionery sales. Besides its large size only 6% of the processed confectioneries are traded across borders compared to the 16% of major bulk agricultural commodities. Indian Confectionery Industry is large and is estimated to be valued of USD1.3Billion and is likely to grow at over 10%, on the basis of an expected GDP growth rate of 8% to 8.5% Per Year. 1.5 GROWTH OF THE INDUSTRY The Indian Confectionery Industry had a market worth of USD1.3Billion in the year 2013 and is expected to grow by 71% to reach USD2.2Billion in the year 2018. The Economic growth and development of the middle class families in India has resulted in the rising of disposable incomes which has resulted in the growth of consumption of
  • 11. P a g e | 11 GLS School of Management IMBA confectionery products by 45% while ½ of the market of confectionery market is consumed by chewing gums. 1.6 TRENDS IN THE INDUSTRY In the last couple of years the trends in confectionery industry of India has changed a lot. Confectionery companies of India have not just improved their products but also have innovated them in a new way. For example Parle has combined the biscuits HIDE & SEEK and BOURBON making an unbelievable combination of HIDE & SEEK BOURBON. These industry have hired the most reputed Actors and Actresses of India to be their Brand- Ambassadors. For example, Hritik Roshan for Parle Hide & Seek, Ajay Devgan for Hajmola etc… and these Actors/Actresses leave no chance to promote their respective brands at any occasion, whether they use them in their movies or get the movie co-produced by those brands. 1.7 PACKAGING IN THE INDUSTRY Packaging in the confectionery industry has been evolving a lot, before a decade or two, the confectionery products were hand wrapped in wax papers but now with the evolution of technology and its uses in the industry, packaging has changed from merely being hand wrapped in wax papers to automatically being wrapped in polythene wrappers by automated machines. We all have been consuming Parle-G, the most selling product of Parle Products Pvt. Ltd. For years and the above example can be applied to it, Parle-G in the beginning was hand wrapped in wax papers but now is packed using automated machines in thin polythenes.
  • 12. P a g e | 12 GLS School of Management IMBA CHAPTER-2 PARLE PRODUCTS PVT. LTD. INTRODUCTION TO THE COMPANY The Parle Industries was founded at 1929 in Mumbai. With great efforts of Mohanlal Dayal Chauhan family the Parle Industries came into existence and today it has become one of the greatest manufacturing confectionery company in India. Parle Industries had been into this business since last 80 years and still their existence is unrevealed. The Parle Company gained its name through the due to the largest selling biscuits named “Parle-G”. Due to its consistency in the taste quality and nutrition Parle-G has constantly been attracting the costumer since last 8 decades. Parle-G is one of the product of the Parle Company which has been serving the rural areas from the time it had been introduced in the market. The main advantage of the Parle Company is that the company has a good distribution channel in the overall country. The market share of the Parle Company is 40% in the market of biscuits and 15% in the confectionery market all over India. Even at remote areas one would find a Parle biscuit. It has taken years for Parle Company to establish this network. Parle Company started just one salesman in Bombay and some few agents in other cities. Today the company has almost as many as 33,00,000 outlets in the country. The efficiency of the company is seen in its every step till the product reaches the retailers. Starting from husking the wheat and melting the sugar and finally delivering the product the company takes special care of each and every step. The largest confectionery plants of the Parle company are in Bahadurgarh, Haryana and Neemrana located in Rajasthan of India. Apart from producing biscuits and confectionery items in its own plant Parle has also many contractors who are manufacturing biscuits and confectionery items for Parle Company. There are in total 75 manufacturing units which are on contract bases. Parle’s product has been known all over the country. It has become the household name for the families in the country. The product is eaten by all people considering from kids to the adults and even the old people.
  • 13. P a g e | 13 GLS School of Management IMBA 2.1 JOURNEY OF THE COMPANY The Parle company was founded by the Chauhan family and Mohanlal Dayal in the period in which Britishers were ruling India. In 1929 the company inaugurated its premises and started the production of biscuits and other confectionery items. In 1929 Parle made its entry into the confectionery market and even after 10 years in 1939 the company was able to capture the market with all variety of products available in the market. After the year 1949 the company got a great turn due to the independence of the country. Till today the company has been attracting a large number of consumers and it will still attract more so. 2.2 FUTURE OF THE COMPANY Parle Company has from beginning a bright future because it was established in a period when there was increasing demand of the confectionery items. Today, the group brand manager Krishna Rao said the company is looking to establish more and more outlets. The manager also added that it would like to increase still more than 7 million outlets in the coming five years. 2.3 MARKETING OF THE COMPANY The term marketing mainly refers to the combination known as “4P’s of Marketing”, which are: 1. Product 2. Place 3. Promotion 4. Pricing strategies These 4P’s have been designed to mutually satisfy the exchanges of a target Market. A marketing manager can follow as many principles of marketing that he wants but a marketing strategy can always be reduced to these 4P’s. 1. Product: Parle has always been creating products that satisfies the hunger of a customer, the most famous products of this company are its biscuits, it just doesn’t perfect its production process but also takes care of the quality and its packaging, over the decades Parle-G has been the most prioritized product of the company. 2. Place: Taking the example of Parle-G, this prioritized product of the company is available in the most remote areas as well as it is also available in the villages which
  • 14. P a g e | 14 GLS School of Management IMBA just has a strength of 1500 citizens. This is possible only because of the company’s distribution strategy and distribution network which has been developed over 87 years of the company’s existence. Parle has over 1500 distributors retailing it to more than 4,50,000 outlets directly as well as indirectly. Parle also has over 31 depots and C&F agents supplying goods to the wide distribution network. 3. Promotion: Parle has always been mainly focusing on advertising through press ads and mentioning about the basic benefits of energy and nutrition. a. Every Year Parle holds day fairs at Venues such as 5-Star hotels where it organizes family competitions and Parle products are given away. b. Parle also produced my childhood favourite TV series Shaktimaan which was a great commercial as well as beginning of superhero TV series in India. c. Parle’s promotion campaign ‘Mera Sapna Such Hoga’ was the biggest marketing campaign it had ever made which had a run of more than 6 Months, the campaign talked about fulfilling the dreams of children. d. Parle’s another promotion campaign, ‘Parle Saraswati Vandana’ was started in the year 2002 as an inter-school contest in West-Bengal is still a going on campaign with increasing participation every year. e. Parle’s ‘Parle Golu Galata’ campaign didn’t had great runs as ‘Mera Sapna Such Hoga’ and ‘Parle Saraswati Vandana’ but still was considered to be a success. 4. Pricing Strategies: Parle has adopted a unique pricing strategy that has always penetrated the market. i.e. low prices and great products capturing the largest share in the Indian Confectionery Market. Profit margin for Parle’s distributors is 4% where for its retailers is 10-12% which varies due to different prices in different states. But still if we consider Parle-G, whose packets are available with retailers for ₹5/- only, Retailer gets ₹0.50/- per packet while the distributor only gets ₹0.20/- per packet, still they haven’t discontinued the production of this famous product. 2.4 PRODUCTION PROCESS OF THE COMPANY Like every confectionery industry Parle also has a unique and demanding specifications for its production: Stephen MixerRotary MouldCooling ConveyerLaminatorBiscuit Baking OvenRotary CutterCounting UnitMultipack Wrapping MachinePoly BagsSealing MachineTapping Machine
  • 15. P a g e | 15 GLS School of Management IMBA 1. Stephen Mixer: The Stephen Mixer is an ideal component which automatically feeds the downstream make-up equipment for biscuits, rolls, etc… 2. Rotary Mould: The structure of a rotary mould is corrosion proof having stainless steel and an ability to mould 7000 biscuits every minute. 3. Cooling Conveyer: The cooling conveyer helps the hot biscuit which has just came out of the Rotary Mould to freeze itself in the atmospheric pressure, the conveyer belt is ideally 150ft long. 4. Laminator: Laminator helps to produce hard biscuits such as Krack-Jack, Laminator helps to create a puffy pastry-like structure, which is important for the products structure and its sales success 5. Biscuit Baking Oven: A biscuit baking oven is ideally made of stainless still with a steam tight oven divided with equal radiators. This also has an inspection door which checks for the minute particles present in the biscuit, if any such particle is found, the conveyer belt automatically stops and doesn’t resume until the particle is removed. 6. Rotary Cutter: This part of the production process is not available at all the production factories as an integrated Rotary Cutter is already attached with the Rotary Mould. Rotary Cutter is generally used to print fine designs on the product. 7. Counting Unit: The counting unit generally checks whether the process of producing a biscuit is going fine or not, it checks whether the biscuits have the specified weight or not, it checks 100 grams for 16 Biscuits. 8. Multipack Wrapping Machine: A multipack wrapping machine has a fixed plastic role attached to a roller, this wrapper is fixed in machine and the wrapping is done by a four heater roller which is fixed in the machine, the machine heats up the roller so that the plastic is wrapped properly over the product. During this process a jaw cutter weighs the biscuits and cuts of the plastic at the marked edge to get the perfect packing of specified weight i.e. 100gms, 150gms, 200gms, etc… 9. Polybags: Polybags contain specified amount of Parle products in one plastic bag. This process is done by the workers who forward the Polybag to a sealing machine. 10. Sealing Machine: A sealing machine has a heater rod which seals the packet on the conveyer belt itself. 11. Tapping Machine: Six Polybags are placed in one corrugated box which is passed through the tapping machine, where the boxes are packed and then sent through a long diversion conveyer belt, this diversion conveyer belt ends at the dispatch section where
  • 16. P a g e | 16 GLS School of Management IMBA 36 such boxes are arranged on one pallet, from where they are sent to DistributorsDealers all over India and the world. 2.5 PLANT LAYOUT OF THE COMPANY Parle has set an essential needed requirements for setting up a plant, which if not fulfilled it discontinues the production contract, following is the essential plant layout for manufacturing Parle products or having a production contract with Parle: 2.7 HUMAN RESOURCE MANAGEMENT OF THE COMPANY The company always focused on the development of the employees through their various development methods. The turnover of the company is also very less. Apart from their total turnover of ₹4000/- crore the company does not compromise in the terms of employee engagement and other such activities.
  • 17. P a g e | 17 GLS School of Management IMBA There are some HR techniques which are adopted by the company namely 5S, Kaizen, SQC, TQM, Poka-Yoke. The abbreviation of the 5s is 1. Seiri (Segregation) 2. Serton (Neatness) 3. Seiso (Cleaning) 4. Seiketsu (Standardization) 5. Shitsuke (Discipline) Whereas Kaizen means continuous improvement or change to become good, TQM is a business related strategy aiming at betterment in the product through best quality in the market in all the chains which it performs until the product reaches the consumer and the last Poka-Yoke means the company focuses on the development of the product which is error free. The workers working in the company agree to these techniques are more than 60% as they believe this are good techniques for any company to follow. Even though there has been the techniques which are very useful the workers had some issue with the machines as they did not provide excellent items due to wastage of the product. Apart from this problem the company has very well collaborated with the workers working in the premises and all of them are well aware about the production technique. 2.9 RESEARCH & DEVELOPMENT DEPARTMENT OF THE COMPANY The company has served the demand of the nation’s consumers to a great extent but when the question of research and development arises Parle does not compromise with the same. Parle often comes up with a new product till it completes one decade or even less than that. Parle industries are very well aware about the importance of the research and they knew their demand would still increase in the near future.
  • 18. P a g e | 18 GLS School of Management IMBA CHAPTER 3 AN INDUSTRIAL REPORT ON CONFECTIONARY INDUSTRY WITH FOCUS ON PARLE AS CASE STUDY 3.1 INTRODUCTION: The market of Confectionery industries in India is very large. Parle Products Private Limited dominate this confectionery industries. Parle Products came into existence in 1907. In 1880, Late Mohanlal Dayal came in Mumbai for work from his village Pardi, in district of Surat. Parle Products has been India's largest manufacturer of confectionery items. Parle Products has been serving for more than 85 years. Parle Products is the maker of the world’s largest selling biscuit, Parle-G. Parle holds 40% share of total biscuit market in India and 15% share of confectionery biscuits in India. 3.2 PARLE AND ITS CHALLENGES: Parle is very sensitive product in matter of price. The sales of Parle had seen high decline due to increase in its price of just 50 paisa. The sales of Parle has suffered by its fake products like Parle Jee and many more. This fake products tries to extract the market of Parle. The serious competitor of Parle-G is Tiger biscuit made by Britannia. 3.3 INFRASTRUCTURE: Parle has many manufacturing units in India. First Plant of Parle Products was in Mumbai. The plant of Parle Products in Kutch is the largest Parle Product plant in India. Other than this Parle Products has various plant like Neemrana in Rajasthan, Bangalore in Karnataka, Khopoli in
  • 19. P a g e | 19 GLS School of Management IMBA Maharashtra and Bahadurgarh in Haryana. Parle also has various manufacturing units on contract basis like Sweety Industries. 3.4 AVAILABILITY: Outside India, Parle Products are also available in United States of America, United Kingdom, Europe, Singapore, Canada and many other countries. The parle products of 80 grams is sold at lowest price at 15 cents at Indian stores and at 40 cents at other retailers. 3.5 MARKET: According to a report released in 2011, Parle-G is the largest selling biscuit in world. Parle-G contributes about 70 % market share in glucose biscuit category in India. It is followed by Britannia Tiger up to 18% and ITC’s Sunfeast up to 9%. Parle-G is estimated to be worth over 20 Billion Indian Rupees (2,000 Crores Indian Rupees). Parle-G contributes more than 50% of company’s turnover. 3.6 AWARDS: Parle Products is the winner of 111 Gold awards, 26 Silver awards, and 4 Bronze awards at the Monde Selection Awards, the global standard for quality in Food category. 3.7 PUBLIC RELATION: Parle has done many enhancing public relations. Some of them are as follows: In 1997, Parle-G sponsored the tale serial of Indian Superhero, named Shaktimaan that went on huge success and became very popular especially among children. In 2002, a national level promo was made by Parle called ‘Parle-G Mera Sapna Sach Hoga’ which talks about fulfilling the dreams of children. This promo was run for a period of 6 months. Parle Saraswati Vandana, is an inter-school contest based on the Saraswati Puma celebrations. It was started in the year 2002. Since it started in 2002, the number of students participating each year had increased. Reason of Parle-G Maintaining It’s Price of Rs.4.00 for the Last 25 Years?
  • 20. P a g e | 20 GLS School of Management IMBA • Low profit margin. • Decrease in weight per biscuit. • Bulk purchase of raw material. • Reduced wastage - 1% of the 115 tons • Increased productivity. • Availability in remote places. • Avoid sophisticated packing • 100g pack costing Rs 4 has net weight of 93.5g from Jan 2008 • Parle-G has seen the variation in sales due to increase in price. 3.8 SWOT ANALYSIS:- STRENGTHS: (1) Low price as compared to competitors: In the case of price, its known to everyone that parle has the lowest and the best affordable price, in comparison to any other biscuit. The parle is giving competition to the other companies through this best feature of it that is price. (2) An experienced team of sales and marketing executives: Parle selects the best executives for sales and marketing .The person possessing right qualifications gets the right job. And the parle is one of the oldest company so has a lot experience in the field of it and so it has the best experienced team of sales and marketing. (3) Largest distribution system: The extensive distribution network, built over the years, is a major strength for Parle-G. Parle-G is available to consumers, even in the most remote of places. 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 and retailers. Additionally, there are 31 Depots and C&F agents supplying goods to a wide distribution network. (4) Wide coverage area of manufacturing units:
  • 21. P a g e | 21 GLS School of Management IMBA Parle Products have been demanded very frequently and so there is a wide coverage area of manufacturing units as to meet up the supply. One of the major manufacturing unit in Gujarat is in nadiad. WEAKNESS: (1) Breakage of biscuits while delivering to retailers: Sometimes while delivering biscuits to the retailers there is damage of biscuits, this also happens due to poor roads of villages sometimes .this decreases the goodwill of the Parle. But nowadays this is improving and this problem is getting sorted out. (2) No proper replacement system for broken biscuits to retailers: There is no proper replacement system for broken biscuits to retailers. Company should start a program for the loyal retailers and wholesalers to reduce their complaints by providing Timely supply and replacement. This will help in increasing their sales. (3) Improper and irregular supply: There is improper supply of products to retailers and distributors. The replacement of the damaged and expired biscuits should be prompt and without any hassles, so that retailer can be saved from the loss of the expired and damaged goods. (4) Poor packaging in family pack of glucose biscuits: One of the major problem with parle is its packaging, it is said the packaging of the product gives the first impression of the product and the company. Also the layer of packaging is very thin so it’s preferable to have a double layer packaging. But on this issue also company has improved a lot. The company has an attractive packaging in the recently launched products. OPPORTUNITIES: (1) Rising demand for innovative packaging in packaged foods: Parle should adopt new innovative packaging techniques. Due to proper packaging the Quality of the biscuits will also be retained well and the product damaging chances get reduced. (2) Retaining loyal retailers or wholesalers:
  • 22. P a g e | 22 GLS School of Management IMBA Parle can motivate retailers and wholesalers with good incentives and programs. The Parle Company should maintain the loyal retailers and wholesalers since one of the most important Strengths of the company is its wide spread distribution network (3) New innovative promotion techniques: Parle is weak in Eastern India and Tamil Nadu. To cover up this loop hole, they are giving Scholarships to children in these states to cover up the corporate equity which is less than Britannia in these states. Also this is a part of CSR and due to this the company’s brand value goes higher and higher. (4) Innovation and Rural Market: Innovating new products, especially non-glucose type biscuits, and its test marketing in the Rural market with its existing distribution channel would help them establish a new market in Rural India. This would be also helping to have development in the rural sector of India. THREATS: (1) Highly advertised brands such as Britannia: One of the major competitor of the Parle Company is Britannia. Though parle has one of the best biscuit in the market but as said earlier the packaging and advertising reflects your brand. And in this case the Britannia is further than Parle. (2) Ever increasing competition from multinationals and local companies: Due to other company’s strong marketing skill giving a strong competition to Parle. Other multinational new companies are entering the market and grabbing attention as they are coming up with brand ambassadors such as Shah Rukh Khan, Hritik Roshan, and Rahul Dravid. (3) Increase in sale of cheap local bakery products: There are local retailers who have increased their sale and distribution system giving competition to Parle. Also their products are comparatively cheaper than Parle products so this is a threat to the company. (4) Emerging substitutes like wafers, snacks and toast: Earlier it was just the biscuit which was available as snacks item. Now there are many other Products like wafers and toast. Thus company is facing threat due to the new substitute
  • 23. P a g e | 23 GLS School of Management IMBA Products. Also people prefer more wafers, chips, nachos etc. Thus it is threat for the Parle biscuit product. Parle has also started to go with new trends and has launched Parle wafers. Full Toss, namkeens etc.
  • 24. P a g e | 24 GLS School of Management IMBA CHAPTER 4 RESEARCH METHODOLOGY OBJECTIVES OF THE STUDY 1) To gain more knowledge about confectionery industries. 2) To know the market share of confectionery industries. 3) To find out the consumer preferences in confectionery industries. 4) To find out the major competitor of PARLE. 5) To find out the satisfaction levels towards service provide by PARLE. 6) To make recommendations to improve the services given by PARLE. 7) To know opportunities in confectionery market. 8) To know which company focus more on health issues.
  • 25. P a g e | 25 GLS School of Management IMBA 4.1 RESEARCH DESIGN Our research design is prescriptive which will provide you the most information which most of you may have not been familiar with. From our research you will come to know that Parle Company is not just a simple biscuit company. It has a lot more. 4.2 SOURCES OF DATA Like everyone even we had obtained data from two methods: 1. Primary Data Collection Method 2. Secondary Data Collection Method PRIMARY DATA COLLECTION METHOD: Our primary data was mainly collected by visiting the Sweety Industries Pvt. Ltd. An operational manufacturing unit at Nadiad and by getting the questionnaire prepared by being filled by the people who consume confectionery products at regular basis. SECONDARY DATA COLLECTION METHOD Our secondary data was collected from various websites hosted on the internet as well as from printed materials such as Advertisements, Newspapers, Magazines etc… 4.3 DATA COLLECTION METHOD We have used convenient data collection method in simple words in this type of data collection method where the first available primary source of data will be used for the survey and additional requirements. There is no prior inclusion for identifying the subjects. It’s one of the best method of data collection.
  • 26. P a g e | 26 GLS School of Management IMBA A basic simple example of this method can be stopping random persons from the street and asking questionnaire questions. But nowadays most of the persons are connected through internet so the best way for the survey is online questionnaire .So we have made a survey through passing on the online form. 4.4 SAMPLING METHOD Simple Random sampling method: this method is the most pure and the most widely used sampling method. In random sampling each member of population is equally like to be chosen as a part of sample. All gets equal chance for the survey. We have used this method but not personally for each member but taking help of the social network we have passed survey forms to many random peoples and conducted the survey. 4.5 SAMPLING FRAME It is a list of items or people forming the population from which a sample is taken. Our list for the survey was approximate 250 persons. 4.6 Data collection Instrument Our data collection instrument was Google Forms, which enabled us to get it filled not only from the people of India and its various stated but it also enabled us to get in touch with the people in foreign countries and get an idea about their thinking of the Indian Confectionery Industry.
  • 27. P a g e | 27 GLS School of Management IMBA 4.7 BENEFICIARIES OF THE STUDY  The persons who were the part of the survey came to know about the company more and more.  By doing research we were also beneficial as our knowledge about the company has increased.  Parle Company is getting beneficial as more and more persons came to know about its actual profile. 4.8 LIMITATIONS OF THE STUDY  As we all know the research study takes a long time and there has to be many data collected so one of the major limitation was time constraint.  Identifying the proper authentic source of the data was actually a big problem.  May be sometimes we receive improper and irrelevant answers in the questionnaire survey.
  • 28. P a g e | 28 GLS School of Management IMBA CHAPTER 5 DATA ANALYSIS AND INTERPRETATION As stated in the previous chapter we used Convenience sampling for our research on the Confectionery Industry by the means of Google Forms and the following were the results which we found but before we give our interpretation we have also mentioned the questions which we had asked: 5.1 QUESTIONAAIRE 1. Which state do you live in? 2. What is your age group? 3. How often do you purchase confectionery items? 4. Which company from the below options would you prefer while purchasing a confectionery item? 5. On what scale would you prefer health while purchasing a confectionery product? 6. What are your preferred confectionery products? 7. What type of Biscuit do you prefer? 8. What factor affects your choice while buying a Biscuit? 9. Do the price of a product affect your purchase option? 10. Does the packaging of a product affect your purchase option? 11. Which pack do you prefer the most while purchasing Biscuits? 12. Which of the following Parle product attracts you the most? 13. Do Parle products satisfy your hunger? 14. While purchasing Parle biscuits what do you have in mind? 15. At what time do you prefer to have Parle biscuits? 16. How much will you spend if you want to buy a Parle product? 17. How will you eat Parle biscuits? 18. How much will you rate Parle Products?
  • 29. P a g e | 29 GLS School of Management IMBA 5.2ANALYSIS AND INTERPRETATION Q1. WHICH STATE DO YOU LIVE IN? Here is a detailed analysis from which places people have answered to the questionnaire (the place here refers to the states). Most of the people have filled the questionnaire from the state of Gujarat i.e. approximately more than 50 people, while there are some other people from the states like Andhra Pradesh, Karnataka, Madhya Pradesh and other. The simple conclusion from his data shows that Parle products or the confectionery products are consumed everywhere in the world.
  • 30. P a g e | 30 GLS School of Management IMBA Q2. WHAT IS YOUR AGE GROUP? In this piechart, there are more of young people who are consuming the confectionery products. The confectionery products are such items which are even purchased by a small kid and even by an old man. Majority of the confectionery products are consumed by the young age group. Here in this chart as well the percentage of young people that is 13 to 23 years is more than any other age group. It can be concluded from this data that the confectionery product is consumed by all age groups of people.
  • 31. P a g e | 31 GLS School of Management IMBA Q3. HOW OFTEN DO YOU PURCHASE CONFECTIONERY ITEMS? As shown in the above chart you can understand that when we asked people that how often do the purchase confectionery items during a week, more than 40% people voted that they purchase confetionery items thrice a week, thus we can assume that the per capita consumption is more in the case of confectionery items. While almost 25% people have voted that they consume confectionery items 4 times a week while combining 15% people purchase twice, 10% consume once as well as 5 times during a week.
  • 32. P a g e | 32 GLS School of Management IMBA Q4. WHICH COMPANY FROM THE BELOW OPTIONS WOULD YOU PREFER WHILE PURCHASING A CONFECTIONERY ITEM? As it is clearly seen from the chart that more people are eager to buy parle products than they prefer to go to any other brands of biscuits. It is seen that from the questionnaire prepared, 42.6% of the people will purchase the Parle product including biscuits, toffees and other items. From the above chart we can assume that the closest competitor of Parle canbe Nestle and Britania but Sunfeast is not even near to the market capture of Parle.
  • 33. P a g e | 33 GLS School of Management IMBA Q5. ON WHAT SCALE WOULD YOU PREFER HEALTH WHILE PURCHASING A CONFECTIONERY PRODUCT? Here as you can see, people prefer health to some extent while some people give much importance to health while they are consuming any confectionery item. The scale shown here is from 1-5 i.e. there are 10 people who believe that according to them the health does not affect much and so they gave it the scale from 1-2, whereas there are some people who think that health affects to some extent while consuming any confectionery product. More than 30 people admit to more health when they purchase a confectionery product. In short more people think that health affects much if any confectionery product is to be purchased and consumed.
  • 34. P a g e | 34 GLS School of Management IMBA Q6. WHAT ARE YOUR PREFERRED CONFECTIONERY PRODUCTS? According to the survey done, people (consumers) are more interested in buying chocolates among all other confectionery items and products. The next importance is given to the biscuits which includes sugar-added, sugar-free and others. Among these type of biscuits the selling of sugar-added biscuits is more than sugar-free biscuits because people like the taste of sugar-added more than that of sugar-free.
  • 35. P a g e | 35 GLS School of Management IMBA Q7. WHAT TYPE OF BISCUIT DO YOU PREFER? According to our survey and the responses we got from our questionaaire we have came to an conclusion that people prefer more biscuits which are of cookie type such as Hide & Seek acquiring almost 44.3% of the market on which parle is focusing more right now. The second best consumed biscuits are creamy such as Bourbon which occupy 23% of the market, the other biscuits such as Sweet, Salty and Glucose have a market share of 10.7%, 9.8% and 12.3& respectively.
  • 36. P a g e | 36 GLS School of Management IMBA Q8. WHAT FACTOR AFFECTS YOUR CHOICE WHILE BUYING A BISCUIT? From our survey we found that almost 67% of the people buy a biscuit while having the quality of the biscuit in their mind, the second most preferred choice while buying a biscuit is its Flavour itself. From our survey we found that less people care about the availability, quantity, and price of a product.
  • 37. P a g e | 37 GLS School of Management IMBA Q9. DO THE PRICE OF A PRODUCT AFFECT YOUR PURCHASE OPTION? People don’t consider the price of the biscuit while purchasing it, but when the question is of a particular brand then they will obviously compare the prices of various brands. Nearly 40% of the people thought that they may affect by the price of the biscuit. It is most possible that people do not refer to the price of the biscuits which are available to them at cheap prices, but they will definitely check for the same if the price increases.
  • 38. P a g e | 38 GLS School of Management IMBA Q10. DOES THE PACKAGING OF A PRODUCT AFFECT YOUR PURCHASE OPTION? Mainly consumer are eager about the quality of the biscuit they are going to purchase but in some cases the packaging of the product also becomes important. Here as well majority of the people that is more than 40% are interested in how the packaging of the product is done. They are also interested in knowing how the finishing of the product is done. Some people are not interested in knowing these things and so they just buy the product for the quality and quantity it serves.
  • 39. P a g e | 39 GLS School of Management IMBA Q11. WHICH PACK DO YOU PREFER THE MOST WHILE PURCHASING BISCUITS? From our survey we have found that almost 88% of the people buy a medium pack which we can say that captures most of the markets attention due to the number of biscuits available in the pack and the quality served in it while a small number of people buy a medium and a small pack.
  • 40. P a g e | 40 GLS School of Management IMBA Q12. WHICH OF THE FOLLOWING PARLE PRODUCT ATTRACTS YOU THE MOST? As we all know ParleG is the most selling biscuit in the world, the trend has changed people are more moving towards the cookies which are manufactured by the Parle company. In today’s world consumer are more interested in buying Hide & Seek than any other parle product. As shown here 61.5% of consumers are willing to buy Hide & Seek and no other Parle products.
  • 41. P a g e | 41 GLS School of Management IMBA Q13. DO PARLE PRODUCTS SATISFY YOUR HUNGER? So, the thirteenth question which we asked in our questionnaire was whether the parle products satisfy you hunger? We found no surprise that 82% of the people voted that yes parle products do satisfy our hunger.
  • 42. P a g e | 42 GLS School of Management IMBA Q14. WHILE PURCHASING PARLE BISCUITS WHAT DO YOU HAVE IN MIND? Parle products are known for their taste and nutrition especially their biscuits. Biscuits are such a product that they are more purchased for their taste than other things, next maybe the nutrition which would be obtained from the biscuit. Almost 50% of the people are purchasing the parle product because of the taste and rest of the people are purchasing for other things such as nutrition, flavour or the reputation of the brand.
  • 43. P a g e | 43 GLS School of Management IMBA Q15. AT WHAT TIME DO YOU PREFER TO HAVE PARLE BISCUITS? From our survey we found that almost 50% of the people prefer to consume Parle biscuits randomly while 27.9% people prefer to have as evening snacks and 21.3% people prefer to have it in the morning while having their breakfast while only 1.6% people prefer to have parle biscuits while having lunch.
  • 44. P a g e | 44 GLS School of Management IMBA Q16. HOW MUCH WILL YOU SPEND IF YOU WANT TO BUY A PARLE PRODUCT? From our survey we found that almoost 39% people are ready to spend ₹16-20 to buy a parle product while 37% people are ready to spend ₹11-15 to buy a parle product, while 23.8% people are ready to spend ₹6-10 to purchase a parle product only 0.8% people are ready to spend ₹1-5.
  • 45. P a g e | 45 GLS School of Management IMBA Q17. HOW WILL YOU EAT PARLE BISCUITS? Biscuits are such a product which can be eaten with anything. Parle products are also such a kind of. Many people are eating Parle biscuits with milk early in the morning because of the great taste that mixes with the milk and gives a good result. Almost half of the people from the survey take it with milk.
  • 46. P a g e | 46 GLS School of Management IMBA Q18. HOW MUCH WILL YOU RATE PARLE PRODUCTS? Consumer in the market have rated the Parle biscuit in majority from 4 to 5 points. More than 60 consumers are giving parle products good score. They are happy with what the company is giving to the people in the market and is not more expecting much changes for the same.
  • 47. P a g e | 47 GLS School of Management IMBA CHAPTER 6 FINDINGS So what did we learn from our Industrial Visit programme and the Questionnaire we got filled from the people? 1. Confectionery Industry of India is the 25th largest industry in the world. 2. The people from Age group 13-23 consume more confectionery products than other age groups. 3. More than 40% of people purchase confectionery items thrice a week. 4. Parle has the biggest market share of consumption of confectionary items of 42.6% market share. 5. People prefer health to some extent while some people give much importance to health while they are consuming any confectionery item. 6. Chocolates are the most preferred confectionery item while sugar-added biscuits are the second most consumed confectionery product. 7. Most preferred biscuits are cookie type biscuits. 8. Almost 67% of the people buy a biscuit while having the quality of the biscuit in their mind. 9. People don’t consider the price of the biscuit while purchasing it, but when the question is of a particular brand then they will obviously compare the prices of various brands. 10. Almost 88% of the people buy a medium pack. 11. In today’s world consumer are more interested in buying Hide & Seek than any other parle product. 12. Almost 50% of the people are purchasing the parle product because of the taste and rest of the people are purchasing for other things such as nutrition, flavour or the reputation of the brand. 13. Almost 50% of the people prefer to consume Parle biscuits randomly. 14. Almost half of the people from the survey take it with milk. 15. Consumer in the market have rated the Parle biscuit in majority from 4 to 5 points
  • 48. P a g e | 48 GLS School of Management IMBA CHAPTER 7 CONCLUSION Like every company Parle also has the 4P’s of Marketing Product; Price; Promotion; Place. These are all important aspects of marketing strategy. Marketing is not possible without these 4 Aspects. The way a product is marketed is known as Marketing Strategy. Sellers, retailers, buyers, and wholesalers play an important role in these marketing mix. Hence, there is lot of scope in marketing strategy. Parle Company had made huge profit by marketing their products in India and in foreign countries. It was concluded that Parle is the first preference of both the customers and retailers (Organized and unorganized both) because of its price and brand image. Amongst consumers across the world the Parle Biscuit brands, such as, Parle-G, Monaco, Krack-jack, Marie, Hide & Seek enjoy a strong imagery and appeal. Which has resulted into Parle-G being the “world’s largest selling biscuit". Quality, health and great taste is symbolized by Parle. Constantly innovating and catering to new tastes PARLE-G has 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 brand image for long time.
  • 49. P a g e | 49 GLS School of Management IMBA BIBLIOGRAPHY 1. http://www.studymode.com/essays/Parle-g-Case-Study-619098.html http://www.exchange4media.com 2. http://businesstoday.intoday.in/story/parle-diversifies-frombiscuits-to- snacks/1/194174.html 3. http://businesstoday.intoday.in/story/parle-diversifies-frombiscuits-to- snacks/1/194174.html 4. http://economictimes.indiatimes.com/slideshows/advertising-marketing/parle-g- thejourney-of-a-biscuit-for-masses/numbo-jumbo/slideshow/24922125.cms 5. http://www.parleproducts.com/exports/exports.php 6. http://www.parleproducts.com/about_parle/overview.php 7. http://www.parleproducts.com/about_parle/legacy.php 8. http://www.parleproducts.com/about_parle/quality.php 9. http://www.parleproducts.com/about_parle/awards.php 10. http://www.parleproducts.com/csr/overview.php 11. http://www.parleproducts.com/saraswati/saraswati_vandana_overview.php 12. http://www.parlegolugalata.com/ 13. https://groups.google.com/forum/#!topic/pumbaexecmba2013/cqQRzOMAlak