parle g

PARLE PRODUCTS LTD-Trupti Badave

AGENDA

Industry Parle-GMarketing

MixCSR Competitors

Future Growth

External Industry Analysis

About Parle Products Ltd

Marketing Mix

Corporate social responsibility

Competitors

Future Growth

INDUSTRY STATISTICS

INDUSTRY TOTAL MARKET MARKET GROWTHPER ANNUM

BUSCUITS Rs 11000 Cr 16%

SNACKS Rs 6500 Cr 20%

CONFECTIONARY Rs 1500 Cr 10-12%

Industry Parle-GMarketing

MixCSR Competitors

Future Growth

ANNUAL GROWTH OF BUSCUIT MARKET

Industry Parle-GMarketing

MixCSR Competitors

Future Growth

2003-04 2004-05 2005-06 2006-07 2007-08 2008-0910.00%

11.00%

12.00%

13.00%

14.00%

15.00%

16.00%

17.00%

18.00%

TWO SECTORS OF INDUSTRY

Industry Parle-GMarketing

MixCSR Competitors

Future Growth

Unorganized sector 40%

Organized sector 60%

Indian market scenario

Unorganized sectorOrganized sector

MARKET SHARE OF BISCUITS

Industry Parle-GMarketing

MixCSR Competitors

Future Growth

Parle 35%

Britannia 31%

Sunfeast 9%

Priyagold 15%

others 10%

Market share

ParleBritanniaSunfeastPriyagoldothers

ANNUAL PRODUCTION BISCUITS (PARLE G)

Industry Parle-GMarketing

MixCSR Competitors

Future Growth

2003-04 2004-05 2005-06 2006-07 2007-080

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

1.8

2

1.1

1.24

1.41

1.6

1.78

figures million metric tonnes

MARKET SHARE OF CONFECTIONARY

Industry Parle-GMarketing

MixCSR Competitors

Future Growth

Parle 16%

Perfetti 52%

Cadburry 10%

Lotte 11%

others 11%

Market share

ParlePerfettiCadburryLotteothers

MARKET SHARE OF SNACKS

Industry Parle-GMarketing

MixCSR Competitors

Future Growth

Parle15%

PepsiCo48%

ITC13%

others24%

Market share

ParlePepsiCoITCothers

PARLE PRODUCTS

IndustryParle

ProductsMarketing

MixCSR Competitors

Future Growth

Set up in 1929 in the suburbs of Mumbai

In 1939 : biscuits

Parle-G : World’s largest selling brand of Biscuits

Turnover : Rs 35 billion

expected CAGR : 15% for year 2010

Positioned on the health platform

PRODUCT STRATEGY

IndustryParle

ProductsMarketing

MixCSR Competitors

Future Growth

Product mix Quality Consistency Brand : quality, health, taste Product life cycle Packaging and labeling

PARLE-G

KRACKJACK

MONACO

MARIE CHOICE

MAGIX

PARLE 20-20 COOKIES

NIMKIN

CHOX

BiscuitsMILKSHAKTI

GOLDENARCS

KREAMS GOLD

MONACO JEERA

HIDE & SEEK

HIDE & SEEK MILANO

DIGESTIVE MARIE

PARLE MARIE

IndustryParle

ProductsMarketing

MixCSR Competitors

Future Growth

SNACKS

IndustryParle

ProductsMarketing

MixCSR Competitors

Future Growth

Musst bytes Cheeslings Sixer Jeffs Musst Stix & Musst Chips Sixer Zeera Monaco Smart Chips

CONFECTIONARY

IndustryParle

ProductsMarketing

MixCSR Competitors

Future Growth

Melody Mango Bite Kaccha Mango Bite Poppins Kismi Toffee Kisme Toffee Bar Mazelo

Kismi GoldOrange CandyXhale 2 in 1 EclairGolgappaMelody SofteeParle Lites

QUALITY

IndustryParle

ProductsMarketing

MixCSR Competitors

Future Growth

CONSISTENCY

IndustryParle

ProductsMarketing

MixCSR Competitors

Future Growth

Production Distribution Consumer end-use

BRAND

IndustryParle

ProductsMarketing

MixCSR Competitors

Future Growth

Line Extension Brand Extension

Multi-brands New Brand

Product Category

NewOld

Bra

nd n

ame Old

New

PRODUCT LIFE CYCLE

IndustryParle

ProductsMarketing

MixCSR Competitors

Future Growth

Introduction Growth Maturity Decline

PACKAGING AND LABELING

IndustryParle

ProductsMarketing

MixCSR Competitors

Future Growth

Packaging : Wax coated packaging to bi-axially oriented

polypropylene paper Packaging cost 10paise/unit Different sizes : 25gms,44gms,93.5gms,231gms, 462gms,577.5 gms,1kg Labeling : contents of product, nutrition facts, feedback, packaging

date

PRICING STRATEGY

IndustryParle

ProductsMarketing

MixCSR Competitors

Future Growth

Appeal to all income groups Low and mid range price segments Value for money Strict cost control at every point in supply chain International pricing Complete excise exemption for biscuits up to

50/kg

PRICING STRATEGY MATRIX

IndustryParle

ProductsMarketing

MixCSR Competitors

Future Growth

INNOVATIVE METHODS

IndustryParle

ProductsMarketing

MixCSR Competitors

Future Growth

Musst Chips and Sticks Creams Hide & seek Parle G

HOW PARLE-G MAINTAINED ITS PRICE OF RS.4.00 FOR THE LAST 25 YRS????

IndustryParle

ProductsMarketing

MixCSR Competitors

Future Growth

low profit margin decrease in weight per biscuit Bulk purchase of raw material Reduced wastage- 1% of the 115 tones Increased productivity Availability in remote places available in Re 1,Rs 2, Rs 4 to Rs 25 packet 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 by mere 50 paise in 1995.

PLACE STRATEGIES

IndustryParle

ProductsMarketing

MixCSR Competitors

Future Growth

Extensive distribution network Nearly 1500 wholesalers 4,25,000 retail outlets Multi-channel marketing system Establishment of manufacturing units in rural

areas

MANUFACTURING UNITS IN INDIA

IndustryParle

ProductsMarketing

MixCSR Competitors

Future Growth

MULTI-CHANNEL MARKETING SYSTEM

IndustryParle

ProductsMarketing

MixCSR Competitors

Future Growth

Level1 : availability to all department stores

Level2 : Presence throughout the country

Level3 : National and International coverage

PROMOTIONAL STRATEGY

IndustryParle

ProductsMarketing

MixCSR Competitors

Future Growth

Budget : 500-600million/annum Marketing tools utilized : Advertising Sales promotion events Public relations

ADVERTISING

IndustryParle

ProductsMarketing

MixCSR Competitors

Future Growth

Started in 80’s First commercial ’DADAJI’ Several celebrity endorsements like Kajol, Hrithik, Aamir Major ad campaigns : ‘Parle G – G for Genius’ ‘ Jeene ki raah yahi hai sahi’ ‘Swad bhare, shakti bhare’ ‘Life namkeen banaye : Monaco’

SALES PROMOTION EVENTS

IndustryParle

ProductsMarketing

MixCSR Competitors

Future Growth

Saraswati Vandana Parle GOLU GALATA CONTEST Parle event for employees

PUBLIC RELATIONS ‘My dream come true’ contest Interactive section on website : funzone Sponsored ‘Shaktimaan’

CORPORATE SOCIAL RESPONSIBILITY

IndustryParle

ProductsMarketing

MixCSR Competitors

Future Growth

Parle centre for excellence ‘My Green Planet’ movement

COMPETITORS

IndustryParle

ProductsMarketing

MixCSR Competitors

Future Growth

Parle Vs Britannia Confectionary Market : Perfetti, Nestle, Lotte,

Cadburry Snacks market : PepsiCo,ITC

PARLE VS BRITANNIA

IndustryParle

ProductsMarketing

MixCSR Competitors

Future Growth

Description Britannia Parle

Established 1896 1929

Nature of business Public ltd Family run business

No of manufacturing units 5 own ,40CMU 8 own units ,60 CMU

Market share ( value) 32.80% 32.94%

Ads Major methods Cricket events and players

Celebrities endorsement

New areas of promotion Environment Health and wellness

IMPORTANT BRANDS PITCHED AGAINST EACH OTHER

IndustryParle

ProductsMarketing

MixCSR Competitors

Future Growth

Category Britannia Parle Leader

Glucose Tiger Parle -G Parle-G

Marie Marie Gold Parle Marie Marie Gold

Salty snacks 50-50 Krack Jack Krack Jack

Choco chips Good day Hide n seek Good day

Milk Milk bikis Milk sakhti Milk bikis

Bourbon Bourbon Hide n Seek Bourbon

Nice Nice ------ Britannia Nice

Multi grain Nutri choice ----- Nutri choice

Cream Cream Treat Kreams Cream treats

Cookie Good day 20-20 Good day

FUTURE GROWTH

IndustryParle

ProductsMarketing

MixCSR Competitors

Future Growth

New products Snacks category : Monaco smart chips Confectionary : mazelo Biscuit : Bourbon as part of Hide & Seek brand New markets within India North-East International opportunities

THANK YOU!!!