biscuit industry parle g
TRANSCRIPT
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BISCUIT INDUSTRY
PRESENTED BY SHIVPRAKASH VARMA & GROUP
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Sweet or salty. Soft or crunchy. Simple or exotic. Everybody loves munching
on biscuits,but do they know how
biscuits began?
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HISTORY OF BISCUITS
The history of biscuits can be traced back to a recipe created by the Roman chef Apicius,in which is
"a thick paste of fine wheat flour was boiled and spread out on a plate. When it had dried and hardened it was cut up and then fried until crisp, then served with honey and pepper."
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Introduction on Biscuit Industry
Biscuits market in India : Approx. Rs 9,000-crore (Rs 90-billion)
The biscuit industry is been experiencing steady growth of 14-15% annually.
If we see last year’s growth….
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• Rural-urban penetration of Biscuit :
• Urban Market : 75% to 85%• Rural Market : 50% to 65%
• Per capita consumption of Biscuits :
• INDIA 1.8 kg, • South East Asian Countries 2.5 kg to 5.5
kg • USA 7.5 kg
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In 2008, the growth exceeded 16% mark on account of exemption from Central Excise Duty on biscuits.
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Annual production Biscuit Industry
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Biscuit Industry profile
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CompetitiveRivalryWithin
industry
Porter’s Five Force model
Bargaining power Of suppliers
Bargaining power Of Customer
Threat of New Entrants
Threat of Substitute
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High competition Among existing players
Porter’s Five Force model
• Suppliers`• Basic commodities : • Wheat, Sugar.• Increasing price
Customer• Many biscuit from low to moderate Range,• Like of bakery product
• New Entrants• Capital Sensitive:• Manufacturing,• Advertising,• Distribution network,
• Substitute• Traditional Indian • homemade snacks,• Bread,• Package Snacks• Bakery product.
HIGH LOW
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Biscuit Industry major players
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HISTORY OF PARLEIn 1929 a small
company by the name of Parle products
emerged in British dominated India.
A small factory was set up in the suburbs
of Mumbai, to manufacture sweets
and toffees.
A decade later it was upgraded to
manufacture biscuits as well.
1st brands – Parle Glucose
and Parle Monaco
Market leader in many products
Won acclaim at the Monde
selection since 1970
35% share of the total
biscuit market
15% share of the total
confectionery market
14 manufacturing units for biscuits & 5 manufacturing units for confectioneries
Parle has largest such
manufacturing units in India
Annual turnover
2000 crores
It has provided its products to the mass with the
affordable range.
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Parle Production Factories
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Parle and Competitors
Competition to Parle is from following players : -• BRITANNIA• SUNFEAST• PRIYAGOLD• MARICO
• Lets do strategic mapping on following ground :
Price – Distribution,Nutrition content – Brand, Innovation – Technology,Packaging.
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Parle - G and CompetitorsPrice – Distribution
LOW
LOW HIGH
HIGH
PR
ICE
DISTRIBUTION
MaricoSunfeast
PriyagoldBritania
Parle
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Parle - G and CompetitorsNutrition content – Brand
LOW
LOW HIGH
HIGH
NU
TR
ITIO
N
CO
NTEN
ET
BRAND
Marico
SunfeastPriyagold
Britania
Parle
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Parle - G and CompetitorsInnovation – Technology
LOW
POOR ADVANCED
HIGH
INN
OVATIO
N
TECHNOLOGY
Marico
Sunfeast
Priyagold
Britania
Parle
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Parle and CompetitorsPackaging
POOR ADVANCEDPACKAGING
MaricoSunfeastPriyagoldBritania
Parle
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Parle Products…… Biscuit.
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Parle Products…… Confectionaries.
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Parle Products…… Snacks.
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About Parle – G Biscuit
• Parle –G has been a strong household name across India. It is popularly known as “biscuit ka puda”.
• A cream colored yellow stripped wrapper with a cute baby photo containing 10 – 12 biscuits with the company’s name printed in Red and you know these are Parle G biscuits.
• The great taste, high nutrition, and the international quality, makes Parle-G a winner.
• Times changed, variety of biscuits did come and go but nothing has changed with these biscuits.
• It has been the undisputed leader in the biscuit category for decades.
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STP ANALYSIS
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SEGMENTATION
GEOGRAPHICAL SEGMENTATION:
• Parle-G is consumed by people staying in urban, semi urban and rural areas.
• Hide & Seek however, being a premium product having a high price is consumed only in urban and semi urban areas.
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DEMOGRAPHIC SEGMENTATION
AGE •Parle-G is consumed by everyone i.e. people of all ages.•Whereas Hide n Seek targets youth and children
INCOME •Parle-G is consumed by all income groups, but is mostly consumed by the lower and middle income groups.•Hide n Seek being highly priced is consumed only by high income group.
SOCIAL CLASS •Parle-G is consumed mostly by lower & middle class consumers because rich class can afford more expensive biscuits.•However one can say that Hide & Seek is meant for middle class and rich class families.
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BEHAVIOURAL SEGMENTATION
BENEFITS •The benefit sought in Parle-G is mainly replenishing energy. •Hide & Seek is for good taste.
OCASSIONS •Parties, birthdays, sports and regular occasions.
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Pattern of market segmentation
If we divide the whole market on basis of their preferences foe sweetness and saltiness in the biscuits then the possible outcome would be that the preferences are clustered near some tastes.
That is why the preferences are clustered and not diffused where in the preferences have to be very extreme and vague.
For e.g. Monaco for entirely salty biscuits and its latest product Krackjack-cream is for sweet and salty taste.
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TARGETTING
PARLE Company as a
whole inculcates SELECTIVE MARKET SPECIALIZATION strategy.
In the diagram we can say blue colour represents the extent of Parle-G i.e. Product(P) 1 for all the 3 markets and Hide & SeekP2 where it is a product only for 1 market and the orange is for Krackjack biscuits where the product is targeted for 2 markets.
P1
P2
P3
M1 M2M3
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POSITIONING STRATEGY
Parle-G is positioned in the minds of people as a value for price product and also as a low-priced product. Whereas hide & seek has tapped a new market.
For Parle-G the company has used channel and image differentiation tools.
Parle-G by far has the most intensive distribution coverage as compared to any other biscuit company in India.
Also the name PARLE has an image that generates respect and a belief of good quality in the minds of the buyers.
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SWOT Analysis of Parle
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SWOT Analysis of Parle
• Strengths• Parle Brand, • Diversified product range,• Extensive distribution network. • Low and mid price range • Catering to mass, • Better understanding of consumer psyche
• Weakness• Dependence on retailers & grocery Stores for displaying diversified Parle Products on shelf, induce impulsive buy• Dependence on Parle G • (flagship brand)
• Opportunities• Estimated annual growth of 20%• Low per capita consumption,• Changing consumer preference,• Increasing demand for sugar free,• Diet biscuit,
• Threats • Hike in cost of production due to hikeIn Raw material cost, • Increasing distribution cost,• Local bakery products,• Entry of various new entrant, ITC etc.
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4 P’s
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Parle-G and Product Mix
WIDTH: PARLE PRODUCT produces biscuits, confectionares & snacks so width 3.
PRODUCT LENGTH of PARLE:BISCUITS CONFECTIONARIES SNACKS
PARLE-G MELODY JETTS
MONACO KISMI BAR SIXER
KRAKJACK POPPINS MUSTT BITES TANGY TOMATO
HIDE N SEEK,HIDE N SEEK MILANO, GOLDEN ARCS
MANGOBITE MUSTT BITES GARDEN SPICE
MARIE CHOICE KISMI KOFFEE MUSTT STIX
DIGESTIVE MARIE GOL GAPPA MUSTT CHIPS
PARLE 20-20, MAGIX KACCHA MANGO BITE
MILK SHAKTI CHOX
KREAMS MAZELO
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CONTD..
DEPTH for PARLE-G:8 Different packs 16.5G, 38.5G, 60.5G,
82.5G, 99G, 209G, 313.5G, 418G, 825G hence depth of parle G is 9.
Two variants: Parle-G Magix having two flavours choco & cashew & comes in only 1 size 75gms hence depth 2. Parle Milk Shakti has no flavour & comes in one size of 150gms.
So depth of Parle G is 8+2+1=11
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Parle - G and Price mix
• Parle G has adopted the Market Penetration strategy i.e. low price along with capturing of a large market
• Also they focus on providing good quality products at the same time, which means it uses the value pricing method.
• The value-for-money positioning helps generate large sales volumes for the products.
• Parle G is available in Re 1,Rs 2, Rs 4 to Rs 25 packet
• Profit margin for distributors is 4% and for retailers is 10-12%
• Parle-G maintained its price of Rs.4.00 for the last 12 yrs & has seen the variation in its sales due to increase in price by mere 50p.
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Parle - G and Place mix
• The extensive distribution network, built over the years, is a major strength for Parle Products.
• Parle G biscuits are available to consumers, even in the most remote places and in the smallest of villages with a population of just 1500.
• Parle has nearly 1,500 wholesalers, catering to 4,25,000 retail
outlets directly or indirectly. A two hundred strong dedicated field force services its huge wholesalers & retailers network.
• Additionally, there are 31 depots and C&F agents supplying goods to the wide distribution network.
• Factories at strategic locations & Establishment of manufacturing units in rural areas.
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Parle - G and promotion mix
Advertising - It was advertised mainly through press ads. The communication spoke about the basic benefits of energy and nutrition.
In 1989 Parle-G released its “Dadaji” commercial which was a huge success and was aired over a period of 6 years. The communication spoke about the basic benefits of energy and nutrition.
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Parle - G and promotion mix (contd..)
• The next level of communication associated the brand with the positive values of life like honesty, sharing and caring. Just a few months back a reminder TV commercial was launched for Parle-G where the product is being called ‘hindustan ki takat’ .
• Recently Parle G has started the use of celebrity in their advertisements.
• Sales promotion - Every year it holds day fairs at branded venues where games and fun events are organized for the employees of Parle and their families; where Parle products are giveaway prizes.
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Parle - G and promotion mix (contd..)
• •
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• Parle My Green Planet, a Corporate social responsibility initiative, will work across levels – from school students to environmentalists to media professionals and through them educate and empower everyone about the cause of environment conservation.
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Parle - G and Challenges
• Even though the Parle is market leader in the segment, others are also trying to capture the chunk of market share.
• Fake brands like Parel G, Parle Jee tried to extract market share.• How ever only serious competition faced by Parle G is from
Britania Tiger biscuit.
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PRODUCT LIFECYCLE
FOR PARLE-G:
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PRODUCT LIFECYCLE
FOR HIDE N SEEK:
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HIGH LOW
STRONG WEAK
STARS QUESTION MARK
CASH COW DOG
BCG MATRIX
MARKET
GROWTH
RATE
RELATIVE MARKET SHARE
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CRUNCHY BATTLE
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Comparative Analysis of Parle - G and Britannia Tiger
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MARKET SHARE
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Comparative Analysis of Parle - G and Britannia Tiger
Nearest competitors in Glucose Category.
“Tiger” gained 28 % Market Share in 100 gram Glucose biscuit segment in a short span of 7 years (1997 – 2004)
VERSUS
“Parle G” established since 60 years – 57 % Market Share in this segment.,
In 2006 – 07 Parle G raised price for its 100 gram pack by 50 paise (i.e. Rs. 4.50), while Tiger maintained its price at Rs. 4/-.
RESULT
Sales of Parle G dipped to Tiger. Customers of Parle G tended to switch-over to Tiger. PARLE G is highly price sensitive since it caters to the bottom of the pyramid.
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Comparative Analysis of Parle - G and Britannia Tiger
Comparison of Tiger And Parle-G Milky Taste
29.5
3.5
0 0
26.540.5
15.500
2.5 6.5
75.5
Very High A LittleHigh
Just Right A Little Low Very Low Can't Say
No. of Respondents: Tiger-200 Parle G-200
Percen
tage o
f R
esp
on
den
ts
Tiger Parle-GMilky Taste
PARLE G’s QUALITY = BRAND LOYALTY
RESEARCH SAYS PARLE G CUSTOMERS PREFER PARLE G OWING TO ITS MILKY TASTE
• What should Parle G do to sustain the market leader position?
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RECOMMENDATIONS
Parle G (glucose biscuit) can be promoted using cricket amongst youth.
Promote Parle brand through schemes such as “Parle Gramin Swastha Yojana”.
They should promote Parle products by launching snacks joints along tea coffee stalls.
In 80% blood donation camp we have seen Parle-G is used as glucose source after donation. Parle G should use this as a promotion strategy.
Parle G can dedicate a batch of product to condemn terror attacks and some part of profit should be donated to defense forces.
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TRULY
DESERVES TO BE CALLED
“HINDUSTAN KI TAAKAT”
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