1. By-KOMAL Roll no. 40 PTMBA-FIN DIV A NMIMS
PARLE BISCUITS LTD
By-KOMAL
Roll no. 40
PTMBA-FIN DIV A
NMIMS

2. Introduction-Parle
India's largest manufacturer of biscuits and confectionery, for almost 80 years.
Makers of the world's largest selling biscuit, Parle-G, and a host of other very popular brands
Parle name symbolizes quality, nutrition and great taste.
With a reach spanning even the remotest villages of India

3. Introduction (conti)
Many of the Parle products - biscuits or confectioneries, are market leaders in their category and have won acclaim at the Monde Selection, since 1971.
With a 40% share of the total biscuit market and a 15% share of the total confectionary market in India , Parle has grown to become a multi-million dollar company.
While to consumers it's a beacon of faith and trust, competitors look upon Parle as an example of marketing brilliance.

4. History 1929 a small factory in the suburbs of Mumbai city.
Products manufactured sweets and toffees called Parle Products
1939, Parle Products began manufacturing biscuits
Parle Glucose & Parle Monaco first brands of biscuits became leading names for great taste and quality.

5. Parle Products Parle Sweets: Parle Snacks: Parle Biscuit: Melody
Kismi Gold
Mango Bite
Orange Candy
Kaccha Mango Bite
Xhale
Poppins
2 in 1 Eclair
Kismi Toffee
Golgappa
Kisme Toffee Bar
Melody Softee
Mazelo
Parle Lites
Parle Biscuit:
Parle - G
Hide and Seek
Krackjack
Hide & Seek Milano
Magix
Digestive Marie
Monaco
Parle Marie
Kreams
Milk Shakti
Parle Cookies
Goldenarcs
Nimkin
Kreams Gold
Chox
Monaco Jeera
Parle Snacks:
Musst Bites
Jeffs
Cheeslings Musst Stix & Musst Chips
Sixer
Sixer Zeera

7. Parle Biscuits Ltd
Parle Biscuits Limited is a subsidiary of the Parle Products Limited, Mumbai,
Closely held company run by the Chauhans.
Parle enjoys a 40% share of the total biscuit market and 15% share of the total confectionery market in India.

8. Parle Production Factories

9. Parle core Values
“The great tradition of taste and nutrition is consistent in every pack on the store shelves, even today. The value-for-money positioning allows people from all classes and age groups to enjoy Parle products to the fullest.”

10. Strategic Competencies
An in-depth understanding of the Indian consumer psyche
Nutritious Products
Newer & Innovative products
Strong sales / distribution N/W
Value for money products

11. External Analysis Industry trend
The biscuit industry is been experiencing steady growth of 14-15% annually.
In 2008, the growth exceeded 16% mark on account of exemption from Central Excise Duty on biscuits.

12. External Analysis
Two Sectors of Biscuit Industry

13. External Analysis Annual Production:
The organized biscuit manufacturing industry‘s annual production figures show YOY growth indicating rising consumption pattern in India.

14. Industry Players Other Players HLL • Bisk Farm • Anmol • Elite
• Cremica
• Dukes
• Anupam
• Craze
• Nezone

15. External Analysis
Major Market Share Holders –
Organized Sector

16. PEST Political Economical Social Technological • Innovation • R&D
• Taxes
• Production and
Distribution licenses
Economical
• ↑ in per capita income
• India’s GDP growing
at an average 8%
Social
• ↑ in per capita
consumption
• India is 3rd largest
producer of biscuit
• Age
• Lifestyle
• Perception
Technological
• Innovation
• R&D

17. Porter's Five Forces Analysis
Threat from New Entrants
-Capital intensive
manufacturing,
advertising and
distribution system.
Industry Outlook:
ATTRACTIVE!
Low
The ingredients are
basic commodities such
as wheat, sugar etc.
- High competition among
existing players to capture
maximum market share.
Internal
Rivalry
Powers of Buyers
Powers of Suppliers
High
Low
High
Availability of many
biscuits from low to
moderate prices
- Availability of
biscuits from nonorganized
sector
-Traditional Indian
home made snacks
- Bread
-Growing packaged
snacks industry
High
Threats of Substitutes

18. Opportunities & Threats
- Indian Biscuit Manufacturers’
Association (IBMA) estimates annual
growth of around 20% in next couple
Of years.
- The $220 Billion food industry is
expected to grow to $300 Billion by
2015.
- Per capita consumption of Biscuits in
the country is only 1.8 kg as compared
to 2.5 kg to 5.5 kg in South East Asian
countries and European countries, and
7.5 kg in USA.
- Growing demand of Sugar free cream
crackers & diet biscuits
- Opportunity to further grown in Urban
& Rural market; Current penetration
levels are
Urban Market : 75% to 85%
Rural Market : 50% to 65%
- Grow in southern and east India
Threats
- Fluctuations in the prices of
transportation costs & distribution
cost due to high wedges and
oil prices
- Entry of ITC (having very good
distribution channels) in to biscuit
industry

19. Internal Analysis-SWOT
Weakness
1. Dependence on retailers & grocery
stores for displaying diversified
Parle products on shelf to induce
impulsive buying
2. Dependence on Parle-G (glucose
biscuit) under Parle umbrella
Strengths
1. Parle Brand
2. Diversified Product Range
3. Extensive Distribution Network
(Availability in most remote villages)
4. Low & mid range price segment
catering to mass
5. Better understanding of consumer
Psyche
Opportunity
1. Estimated annual growth of 20%
2. The 220 B$ food industry is
expected to grow to 300 B$ by 2015.
3. Low Per capital consumption of
Biscuits (1.8 KG) as against 5.5 KG in
South East Asian countries.
4. Increasing demand for Sugar free
cream crackers & diet biscuits
5. Current penetration levels
Urban Market : 75% to 85%
Rural Market : 50% to 65%
6. Growth in southern and east India
Threats
Hike in cost of production due to
Hike in prices of raw materials and
increase in transportation plus
distribution cost due to high wedges
and oil prices
2. Entry of ITC (having very good
distribution channels) into biscuit
industry

20. SWOT Recommendations W – O S – O W – T S – T
1. Increase penetration in southern
India and eastern India
2. Expand in rural market
3. Cater to new diet conscious segment
4. Advertising of Parle products using
celebrities such as sport person
(Cricketer – very popular game in
India)
W – O
1. Heavy promotional campaigns in
rural areas , southern & eastern
India to increase brand awareness
to boost ‘top of the mind recall’
sales.
2. Advertise and promote Parle’s
nutritious brands other than Parle-
G in educated urban market
looking for healthy product
S – T
Shift towards products (SKUs)
That are highly appreciated in
urban market (heath conscious
mothers) and price sensitive
rural market rather than just
increasing no of SKUs
W – T
Capture more market share of
Other biscuit segments using
Distribution channels by associating
Individual products with a
promotion.
Example – the stylish cream biscuit
is promoted by bollywood star,
Marie products are branded as
family snacks product etc.

21. Pricing Strategy of Parle
Golden question…….
How Parle-G is priced at Rs.6 for past 12 years?????????

22. Pricing Strategy of Parle
Golden question…….
How Parle-G is priced at Rs.6 for past 12 years?????????

23. Pricing Strategy of Parle
QUALITY
LOW
HIGH
Economy
Penetration L O w P R I C E
Skimming
Premium H I G
Pricing Strategies Matrix

24. Parle Pricing Parle brand symbolizes -quality, health and great taste.
Factories at strategic locations
Automatic Printing and packaging facilities
Extensive distribution network build over the years is a major strength

25. Parle Pricing 140 – 180 packets /minute 12000 biscuits /minute
Bulk purchase of Wheat
Reduces no. of shifts
Wastage- 1% of the 115 tones

26. Parle Pricing Establishment of manufacturing units in rural areas
Investment in R & D
Increase in number of biscuits and reduction in weight per biscuit
100g pack costing Rs. 4 has net weight 93.5g

27. Parle-G Pricing Strategies
Sell brand not price
Wider reach/presence through different medium-education, hospital, army, railways & bus donation, sports, NGOs
Brand value compels suppliers to sell Parle-G at low commissions
Nearly 1500 wholesalers, catering to retail outlets directly or indirectly
Availability in remote places even in the villages having population of 1500

28. Parle-G Pricing Strategies
Now available in Re 1,Rs 2,Rs 4, to Rs 25 packet
Profit Margin for distributors is 4% and for retailers is %
Pricing advantage of Parle brand in other product lines

29. Parle-G Pricing Strategies
Penetration Strategy– Keeping high quality and maintaining low price
Previously sets its price as per the geography, freight cost for reaching remote places is quite high
As per G’dsouza, coordinator of Parle products, variation of the price of Parle –G from Rs 4-5 in different states
But due to factories at strategic locations Parle-G is moving towards uniform pricing all over India

30. Parle-G Pricing Strategies
Alternative Increasing Price
Reducing Product Size, using less expensive raw materials, unbundling the product.
Buyer reactions to price changes must be considered

31. Parle-G Pricing Strategies
Competitors are more likely to react to price changes under certain conditions
Number of firms is small (Britannia, ITC, Priya Gold and other small players)
Product is uniform
Buyers are well informed
Parle has seen the variations in sales due to increase in price by mere 50p
Respond to price changes only if
Market share/profit will be negatively affected if nothing is changed.

32. THANK YOU