Parle

Marketing Strategies & Plans

2012-13

Bibin ThomasM Com Part 1Roll No 88

TITLE

Project Report on

Marketing Strategies & Plans

Submitted to University of Mumbai

AtLord’s Universal College

ByMr. Bibin Thomas

Under the Guidance ofProf. Sushant Bijlani

2

DECLARATION

I hereby declare that the project work entitled “Marketing Strategies & Plans“submitted to the MUMBAI UNIVERSITY, is a record of an original work done by me under the guidance of Prof. Sushant Bijlani, Faculty Member, of Lord’s Universal College, and this project work has not performed the basis for the award of any Degree or diploma/ associate ship/fellowship and similar project if any.

Bibin Thomas Roll no 88

Place: Mumbai

3

ACKNOLEDGEMENT

I would like to express my gratitude to all those who gave me the possibility to complete this thesis. I want to thank Lord’s Universal College for giving me permission to commence this thesis in the first instance, to do the necessary research work and to use departmental data. I have furthermore to thank, who gave and confirmed this permission and encouraged me to go ahead with my thesis.

I am deeply indebted to my Prof. Sushant Bijlani from the Lord’s Universal College whose help, stimulating suggestions and encouragement helped me in all the time of research for and writing of this thesis.

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TABLE OF CONTENTS

Chapter.No TOPIC Page. No

1. INTRODUCTION

INDUSTRY PROFILE

6-7

8-10

2. COMPANY PROFILE 11-31

MARKETING STRATEGY FOR PARLE G 32-40

3. RESEARCH METHODOLOGY 41-43

4.

5.

DATA PRESENTATION AND ANALYSIS

CONCLUSION & RECOMMENDATION

44- 56

57-59

6.BIBLIOGRAPHY

60

7. ANNEXURE 61-63

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CHAPTER 1

INTRODUCTION

BISCUIT INDUSTRY IN INDIA

Biscuit industry in India in the organized sector produces around 60% of

the total production, the balance 40% being contributed by the unorganized bakeries.

The industry consists of two large scale manufacturers, around 50 medium scale

brands and small scale units ranging up to 2500 units in the country, as at 2000-01.

The unorganized sector is estimated to have approximately 30,000 small & tiny

bakeries across the country.

The annual turnover of the organized sector of the biscuit manufacturers (as at

2007-08) is Rs. 4,350 crores.

In terms of volume biscuit production by the organized segment in 2007-08 is

estimated at 1.30 million tonnes. The major Brands of biscuits are - Britannia, Parle

Bakeman, Parle G, Elite, Cremica, Dukes, Anupam, Craze, Nezone, besides various

regional/State brands.

Biscuit industry which was till then reserved in the SSI (Small Scale Industry)

Sector, was unreserved in 1997-98, in accordance with the Govt Policy, based on the

recommendations of the Abid Hussain Committee.

The annual production of biscuit in the organized sector, continues to be

predominantly in the small and medium sale sector before and after de-reservation.

The annual production was around 7.4 Lakh tonnes in 1997-98 In the next five years,

biscuit production witnessed an annual growth of 10% to 12%, up to 1999-00.

The annual Growth showed a decline of 3.5% in 2000-01, mainly due to 100% hike

in Central Excise Duty (from 9% to 16%). Production in the year 2001-02 increased

very marginally by 2.75% where in 2002-03 the growth is around 3%.

The Union Budget for 2005-06 granted 50% reduction in the rate of Excise Duty

on Biscuit i.e. from 16% to 8%. The Federation's estimate for the current year

indicates a growth of approximately 8% to 9%.

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However the average utilization of installed capacity by biscuit manufacturers in

the country has been a dismal 60% over the last decade up to 2006-07.

Though dereservation resulted in a few MNCs, i.e. Sara Lee, Kellogs SmithKline

Beecham, Heinz etc entering the biscuit industry in India, most of them, with the

exception of SmithKline Beecham (Horlicks Biscuits), have ceased production in the

country.

On the other hand, import of biscuits, specially in the high price segment has

started from 2000-01, but however, the quantum of imports has not so far increased

alarmingly and has remained at around 3.75% of the consumption of biscuits in the

country in the year 2001-02. However, recent imports from china industries cheaper

verities of biscuit, needs to be examined with cautions, especially in the context of

the price as the low margin based domestic industry, which is operating at 60 % of

the total installed capital. Exports of biscuits from India has been to the extent of

5.5% of the total production. Export are expected to grow only in the year 2006-07

and beyond.

Biscuit is a hygienically packaged nutritious snack food available at very

competitive prices, volumes and different tastes. According to the NCAER(National

Council Of Applied Economic Research) Study, biscuit is predominantly consumed

by people from the lower strata of society, particularly children in both rural and

urban areas with an average monthly income of Rs. 750.00.

Biscuit can he broadly categorized into the following segments:

(Based on productions of 2007-08)

Glucose

Marie

Cream

Crackers

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INDUSTRY PROFILE

The word 'Biscuit' is derived from the Latin words 'Bis' (meaning 'twice') and

'Coctus' (meaning cooked or baked). The word 'Biscotti' is also the generic term for

cookies in Italian. Back then, biscuits were unleavened, hard and thin wafers which,

because of their low water content, were ideal food to store.

As people started to explore the globe, biscuits became the ideal travelling food

since they stayed fresh for long periods. The seafaring age, thus, witnessed the boom

of biscuits when these were sealed in airtight containers to last for months at a time.

Hard track biscuits (earliest version of the biscotti and present-day crackers) were

part of the staple diet of English and American sailors for many centuries. In fact, the

countries which led this seafaring charge, such as those in Western Europe, are the

ones where biscuits are most popular even today. Biscotti is said to have been a

favourite of Christopher Columbus who discovered America!

Making good biscuits is quite an art, and history bears testimony to that. During

the 17th and 18th Centuries in Europe, baking was a carefully controlled profession,

managed through a series of 'guilds' or professional associations. To become a baker,

one had to complete years of apprenticeship - working through the ranks of

apprentice, journeyman, and finally master baker. Not only this, the amount and

quality of biscuits baked were also carefully monitored.

The English, Scotch and Dutch immigrants originally brought the first cookies to

the United States and they were called teacakes. They were often flavoured with

nothing more than the finest butter, sometimes with the addition of a few drops of

rose water. Cookies in America were also called by such names as "jumbles",

"plunkets" and "cry babies".

As technology improved during the Industrial Revolution in the 19th century, the

price of sugar and flour dropped. Chemical leavening agents, such as baking soda,

became available and a profusion of cookie recipes occurred. This led to the

development of manufactured cookies.

Interestingly, as time has passed and despite more varieties becoming available,

the essential ingredients of biscuits haven't changed - like 'soft' wheat flour (which

contains less protein than the flour used to bake bread) sugar, and fats, such as butter

8

and oil. Today, though they are known by different names the world over, people

agree on one thing - nothing beats the biscuit!

Some interesting facts on the origin of other forms of biscuits:

The recipe for oval shaped cookies (that are also known as boudoir biscuits,

sponge biscuits, sponge fingers, Naples biscuits and Savoy biscuits) has changed

little in 900 years and dates back to the house of Savoy in the 11th century France.

Peter the Great of Russia seems to have enjoyed an oval-shaped cookie called "lady

fingers" when visiting Louis XV of France.

The macaroon - a small round cookie with crisp crust and a soft interior - seems to

have originated in an Italian monastery in 1892 during the French Revolution.

SPRING-UHR-LEE, have been traditional Christmas cookies in Austria and Bavaria

for centuries. They are made from a simple egg, flour and sugar dough and are

usually rectangular in shape. These cookies are made with a leavening agent called

ammonium carbonate and baking ammonia.

The inspiration for fortune cookies dates back to the 15th and 17th Centuries,

when Chinese soldiers slipped rice paper messages into moon cakes to help co-

ordinate their defence against Mongolian invaders.

NutriChoice SugarOut

Sounds like yesterday when people commented that healthy foods meant

"compromising on the taste." NutriChoice SugarOut is the most novel product range

to have been introduced in the market. The product is not just sweet but tastes great,

and yet contains no added sugar.

Central Excise Duty on Biscuits

In the Union Budget 2007-08, the Finance Minister who had imposed a 100%

increase in the rate of Excise Duty on biscuit from 8% as a part of the rationalisation

of CENVAT and introduction of single rate of Duty did not offer any concesison on

the Budget for 2001-02. On the other hand the 50% exemption to small packs was

withdrawn. During these years and in 2006, the Federation submitted strong

representations to the Union Finance

9

Minister seeking relief in the Excise Duty on biscuits, giving biscuit special

treatment that it deserves on account of the exceptional nature and sensitivity to price

increase.

The Federation submitted its Pre- Budget Memorandum for 2009 demanding at least

50% Excise Relief.

It is a matter of great satisfaction that the Govt. has, after 3 years, acceded to our

demand and grated reduction in Excise Duty (from 16% to 18%) in the Union

Budget for 2007-2008.

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CHAPTER 2

COMPANY PROFILE

A long time ago, when the British ruled India, a small factory was set up in the

suburbs of of Mumbai city, to manufacture sweets and toffees. The year was 1929 and

the market was dominated by famous international brands that were imported freely.

Despite the odds and unequal competition, this company called Parle Products, survived

and succeeded, by adhering to high quality and improvising from time to time.

A decade later, in 1959, Parle Products began manufacturing biscuits, in addition to

sweets and toffees. Having already established a reputation for quality, the Parle brand

name grew in strength with this diversification. Parle Glucose and Parle Monaco were the

first brands of biscuits to be introduced, which later went on to become leading names for

great taste and quality.

How Parle fought to make biscuits affordable to all.

Biscuits were very much a luxury food in India, when Parle began production in

1959. Apart from Glucose and Monaco biscuits, Parle did offer a wide variety of brands.

However, during the Second World War, all domestic biscuit production was diverted to

assist the Indian soldiers in India and the Far East. Apart from this, the shortage of wheat

in those days, made Parle decide to concentrate on the more popular brands, so that

people could enjoy the price benefits.

Thankfully today, there's no dearth of ingredients and the demand for more

premium brands is on the rise. That's why, we now have a wide range of biscuits and

mouthwatering confectionaries to offer.

The strength of the Parle Brand

11

Over the years, Parle has grown to become a multi-million US Dollar company.

Many of the Parle products - biscuits or confectionaries, are market leaders in their

category and have won acclaim at the Monde Selection, since 1971.

Today, Parle enjoys a 40% share of the total biscuit market and a 15% share of the total

confectionary market, in India. The Parle Biscuit brands, such as, Parle-G, Monaco and

Krackjack and confectionery brands, such as, Melody, Poppins, Mangobite and Kismi,

enjoy a strong imagery and appeal amongst consumers.

Be it a big city or a remote village of India, the Parle name symbolizes quality,

health and great taste! And yet, we know that this reputation has been built, by constantly

innovating and catering to new tastes. This can be seen by the success of new brands,

such as, Hide & Seek, or the single twist wrapping of Mango bite.

In this way, by concentrating on consumer tastes and preferences and emphasizing

Research & Development, the Parle brand grows from strength to strength.

The Quality Commitment

Parle Products has one factory at Mumbai that manufactures biscuits &

confectioneries while another factory at Bahadurgarh, in Haryana manufactures biscuits.

Apart from this, Parle has manufacturing facilities at Neemrana, in Rajasthan and at

Bangalore in Karnataka. The factories at Bahadurgarh and Neemrana are the largest such

manufacturing facilites in India. Parle Products also has 14 manufacturing units for

biscuits & 5 manufacturing units for confectioneries, on contract.

All these factories are located at strategic locations, so as to ensure a constant output &

easy distribution. Each factory has state-of-the-art machinery with automatic printing &

packaging facilities.

All Parle products are manufactured under the most hygienic conditions. Great

care is exercised in the selection & quality control of raw materials, packaging materials

& rigid quality standards are ensured at every stage of the manufacturing process.

The Marketing Strength

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The extensive distribution network, built over the years, is a major strength for

Parle Products. Parle biscuits & sweets are available to consumers, even in the most

remote places and in the smallest of villages with a population of just 500.

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 &

retailers. Additionally, there are 31 depots and C&F agents supplying goods to the wide

distribution network.

The Parle marketing philosophy emphasizes catering to the masses. We

constantly endeavour at designing products that provide nutrition & fun to the common

man. Most Parle offerings are in the low & mid-range price segments. This is based on

our cultivated understanding of the Indian consumer psyche. The value-for-money

positioning helps generate large sales volumes for the products.

However, Parle Products also manufactures a variety of premium products for the

up-market, urban consumers. And in this way, caters a range of products to a variety of

consumers.

The Customer Confidence

The Parle name conjures up fond memories across the length and breadth of the

country. After all, since 1959, the people of India have been growing up on Parle biscuits

& sweets.

Today, the Parle brands have found their way into the hearts and homes of people

all over India & abroad. Parle Biscuits and confectioneries, continue to spread happiness

& joy among people of all ages.

The consumer is the focus of all activities at Parle. Maximizing value to

consumers and forging enduring customer relationships are the core endeavours at Parle.

Awards - Monde Selection

Year Products Rank

1959 (Brussels) Cheeslings Gold

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Monaco Gold

1962 (Geneva) Gluco Silver

1973 (Paris)

Monaco

Gluco

Cheeslings

Gold

Silver

Silver

1974 (Bruxelles)

Cheeslings

Monaco

Gluco

Silver

Gold

Silver

1975 (Amsterdam)

Cheeslings

Monaco

Gluco

Monaco

Gold

Gold

Silver

Trophy Of The International High Quality

1976 (Britain-London)

Monaco

Cheeslings

Gluco

Krackjack

Gold

Gold

Silver

Silver

1977 (Luxembourg)

Monaco

Cheeslings

Krackjack

Gluco

Gold

Gold

Gold

Silver

1978 (Geneva)

Gluco

Monaco

Cheeslings

Krackjack

Gold

Gold

Gold

Gold

14

1979 (Paris)

Krackjack

Monaco

Cheeslings

Gluco

Gold

Gold

Gold

Silver

1980 (Vienne)

Krackjack

Cheeslings

Monaco

Gluco

Gold

Gold

Gold

Silver

1981 (Amsterdam)

Cheeslings

Monaco

Gluco

Krackjack

Palmes(Gold)

Gold

Gold

Gold

1982 (London)

Cheeslings

Monaco

Krackjack

Gluco

Gold

Gold

Gold

Gold

1983 (Rome)

Cheeslings

Monaco

Krackjack

Gluco

Gold

Gold

Gold

Silver

1984 (Madrid)

Gluco

Monaco

Krackjack

Cheeslings

Gold

Gold

Gold

Palmes(Gold)

1985 (Lisbon-Portugal) Gluco

Monaco

Mini Cheeslings

Recipe 57

Gold

Gold

Gold

Gold

15

Krackjack Silver

1986 (Geneva)

Gluco

Monaco

Mini Cheeslings

Recipe 57

Krackjack

Marylong

Gold

Gold

Gold

Gold

Silver

Silver

1987 (Bruxelles)

Gluco

Krackjack

Monaco

Mini Cheeslings

Marylong

Gold

Gold

Gold

Gold

Gold

1988 (Athens)

Monaco

Cheeslings

Marylong

Gluco

Krackjack

Gold

Gold

Gold

Silver

Bronze

1989 (Luxembourg)

Gluco

Krackjack

Monaco

Marylong

Cheeslings

Melody

Fudgy

Gold

Gold

Gold with Palm leaves

Silver

Gold

Gold

Gold

1990 (Luxembourg)

Cheeslings

Rol-A-Cola

Krackjack

Monaco

Gluco

Grand Gold

Twist wrap Gold

Gold

Gold

Silver

16

Poppins

Melody

Silver

Bronze

1991 (Barcelona)

Melody

Kismi Toffee Bar

Mango Bite

Rol-A-Cola

Gluco

Krackjack

Monaco

Cheeslings

Silver

Bronze

Gold

Gold

Gold

Silver

Gold

Gold

1993 (Amsterdam)

Gluco

Krackjack

Monaco

Cheeslings

Nimkin

Gold

Gold

Gold

Gold

Gold

1996 (Brussels)

Gluco

Krackjack

Monaco

Cheeslings

Gold

Gold

Gold

Gold

1998 (Paris)

Gluco

Monaco

Krackjack

Supermilk

Cheeslings

Gold

Gold

Gold

Silver

Grand Gold

17

1999 (Roma-Italy)

Gluco

Monaco

Krackjack

Supermilk

Cheeslings

Silver

Grand Gold

Gold

Gold

Gold

2000 (Lisboa)

Gluco

Monaco

Krackjack

Supermilk

Cheeslings

Bronze

Grand Gold

Gold

Gold

Gold

2002 (Brussels)

Gluco

Monaco

Krackjack

Supermilk

Cheeslings

Gold

Gold

Gold

Grand Gold

Gold

2004 (Brussels)

Gluco

Monaco

Krackjack

Cheeslings

Sixer

Jeffs

Gold

Gold

Gold

Gold

Gold

Silver

2006 (Brussels)

Gluco

Krackjack

Monaco

Sixer

Jeffs

Cheeslings

Gold

Gold

Gold

Gold

Gold

Gold

2007 (Brussels) Parle-G

Krackjack

Gold

Gold

18

Monaco

Hide & Seek

Gold & International High Quality Trophy

Silver

2008 (Brussels)

Parle-G

Krackjack

Monaco

Hide & Seek

Marie Choice

Gold

Gold

Gold

Silver

Gold

The major products offered by Parle-G industries are the following:

1. Brand Name: GoodDay and Marrie from Parle Gare stable and are the most

established brand in biscuit segment being equated for biscuits for long time. Now

the brand has taken a dent though among the present generation with competitors

coming up with more powerful advertising campaigns and offering more variety.

2. Styling & Packaging: Parle Gofferings have the innovative designs and

packaging as compared to what is offered by the competitors. As it's a variety

seeking product the styling and packaging helps in getting more customers.

3. Quality: Parle Gname is associated with quality. The offerings from Parle Gare of

best quality when it comes to taste and hygiene. Under it's mission statement "eat

healthy think better"

Product mix

Parle-G

There are always some kids who seem smarter than the rest. Ever wonder how

they got to be that way? If you had to think real hard for the answer, then probably you've

never eaten Parle-G. Parle-G is the new generation's official power supply. Providing

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kids with the vital vitamins and minerals necessary for all round mental and physical

development.

Apart from being the world's largest selling biscuit, Parle - G is the winner of 8 Gold

and 11 Silver awards at the Monde Selection Awards – the global standard

for quality in Food category.

Parle-G Magix

What is the power of taste? Can it get government officers to get your papers

through faster? Probably! Can it help you make friends and influence people? It's worth a

shot! Can it land you a lead role in a blockbuster movie, even if you can't act?

Fact is, people will do anything for a taste of Parle-G Magix. But the real question

is, will you be willing to share your packet of Parle-G Magix to find out exactly how

much power you can exert? With two delicious tastes - Choco & Cashew, Parle-G Magix

has put great power in your hands. Go ahead & wield them wisely.

Parle-G Milk Shakti

What have you heard about Parle-G Milk Shakti? Think hard. Ok, now eat a biscuit.

Got it? Yes, you're absolutely right. It aids mental stimulation. And energises the

body too. Now try and memorise this - it is the only milk biscuit with the goodness of

honey.Should be unforgettable, once you bite into one of these power-packed biscuits.

Krackjack

A little sweet - A little salty… That's what makes Krackjack very, very delicious! This

delightful biscuit is acclaimed in India and across the world for its controversial

sweet and salty taste. Krackjack has won 11 Gold, 3 Silver and 1 Bronze award at the

'Monde Selection'. You can enjoy Krackjack any time plain or with a host of beverages

like tea, coffee or milkshakes.

Monaco Zabardast Zeera

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To add some spice to life, have the exciting variant of Monaco - The Zabardast

Zeera Flavour. The same light salted biscuits that lift your spirits now comes delicately

seasoned with Zeera. Relish this unique taste at all times of the day.

Marie Choice

More and more people are now discovering the pleasures of a cup of hot steaming tea. Or

so it seems. In reality they are actually using (misusing) tea as a ready excuse to indulge

in another packet of Parle Marie Choice. Whatever the reason, Parle Marie Choice has

fast become a preferred teatime accompaniment. Find out for yourself over a cup of tea.

After all , chai toh hai bahana.

Hide & Seek

Let your taste buds indulge in the sinful pleasure of a delightful game. Seek out the

chocolate chips that aren't really hidden. And relish a delectable experience called

Hide-&-seek - tasty itna, ki dil aajayee.

As you crunch into it, these chips melt in your mouth. Try as you might, you

just can't hide from the sheer delight of munching a mouthful

Fun Centre

There might have been times when you were unsatisfied with the amount of

cream in the middle of cream biscuits. With Parle Fun Centre, you'll have no such

problems. A delicious biscuit filled with cream till the edges, ensuring that it has the

highest cream content in its category. Available in a variety of mouthwatering, lip-

smacking flavours like chocolate, butterscotch, strawberry and milk cream, these

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irresistible cream biscuits whet your appetite for more, and also make for a perfect

dessert.

NutriChoice SugarOut

This is because NutriChoice SugarOut is sweetened with "Sucralose," derived from

sugar, which provides the same sweetness as any other biscuit, without the added calories

of sugar.

This range is available in 3 delicious variants namely Litetime, Chocolate cream, and

Orange cream, targeted towards all health sensitive people. It is also relevant for

consumers with sugar related ailments.

We are sure that you will be pleasantly delighted with its great taste and equally surprised

to know that it has no added sugar.

Don't be taken for a ride when you read "Sugar Free" label on many biscuit packs

marketed in India or abroad. Even with 100% no-added sugar, wheat-cereals in biscuits

have their own natural sugar content. Parle Ghas chosen to represent these biscuits with

"No Added Sugar" claim, as there is no added sugar in the processing of NutriChoice

SugarOut.

Nutri Choice Digestive Biscuit

Nothing can be more difficult than making small efforts in our daily life towards

healthy and active living. 24/7 we are engrossed in our busy schedules; skipping

meals, missing walks, along with inadequate sleep and frequently eating-out, all take

a heavy toll on our health.

At least with the new and improved NutriChoice Digestive Biscuit, we have one less

thing to worry about. Made with 50% whole-wheat and packed with added fibre

(10% of our daily dietary needs), these delightfully tasty biscuits are amongst your

healthiest bites of the day.

In your next visit to a shop just look out for its Golden-green international carton

pack.

Try one and you'll know that you've made one smart choice - NutriChoice.

Treat Fruit Rollz

So go on and treat yourself to the lip-smacking snack!

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New Parle-G Milk Bikis

Milk Bikis, the favorite growth partner of Kids, now brings greater value and delight

to all with its new product and pack design. Recently re-launched in its existing

Southern & Eastern markets, and extended across India, the new Milk Bikis is all set

to add excitement and appeal to ‘nutritious’ food. Whoever said that ‘good food’

needs to look ‘dull and boring’, will just have to take a look at Milk Bikis.

With a unique and attractive honeycomb design and an enhanced product experience,

the new biscuit prompts the ‘Kid’s will love it’ reaction amongst mothers. The milk

goodness in the recipe is now enhanced with SMART NUTRIENTS – 4 vital

vitamins, iron and iodine, proven to aid mental and physical development in growing

kids. The premium packaging, besides appealing to kids, also ensures that the

biscuits remain fresh and crisp.

So, whether its breakfast time or snack time at school, rest assured that kids will look

forward to munching these crunchy, milky biscuits which even helps in their

development. And yes, adults won’t be far behind in reaching out for a pack!

Parle-G 50-50 Pepper Chakkar

The launch of the latest 50-50 variant left everybody guessing "What it is?" From

TV ads, radio, outdoor and in-store display materials to events, a website and SMS

and email blasts, traditional and new media were blended synergistically to create

excitement and curiosity about the unique taste of the biscuit. The tangy and

distinctive pepper flavoured biscuit, that's thin and crispy and more like a snack,

caught the imagination of a younger audience craving something to nibble on. The

50-50 Pepper Chakkar launch is truly a case of leveraging the marketing mix to best

advantage.

Parle-G profits up 125 % in Q2; growth momentum continues

Mumbai, October 23rd, 2007: Parle-G Industries Ltd. (PARLE G ), one of India’s

leading food Companies, reported sales of Rs. 6,588 MM for the quarter ended 30th

September 2008, reflecting 20% growth over the corresponding quarter last year. Net

Profit for the quarter at Rs. 485 MM was more than double for the corresponding

quarter last year of Rs 212 MM.

23

For the half year ended 30th September 07, revenue grew 19.6% to Rs. 12,356 MM,

while net profit at Rs 846 MM was 64.6% higher than last year.

Commenting on the performance, Ms. Vinita Bali, Managing Director, said,

“We continue to build on the growth momentum of last year. We have added 340

basis points to our margin through higher price realization as well as innovation. The

increase in profit has been achieved despite the continuing and unprecedented

increase in prices of key commodities like flour, oils & dairy products.”

During the quarter, the Company launched ‘Treat Choco Gelo’, an extension of the

Treat franchise with ‘double masti’ of chocolate & caramel and also introduced a

range of premium indulgence cookies under ‘Pure Magic’ brand. Investment in

Advertising and Sales Promotion has been increased by 50% to fuel the innovation

led growth.

MEASURES UNDERTAKEN BY GOVERNMENT

The Food Processing Industry have been experiencing the adverse affect of

multiplicity of various Acts/ Rules and Regulations for food standards under the

Prevention of Food Adulteration Act Standards of Weights & Measures Act, Food

Products Order, the Meat Products Order, the Bureau of Indian Standards & MMPO

(Milk & Milk Product Order), etc. affected the Food & Food Processing Sectors. They

need to be modernized & converged.

As a consequence of various representations of industry, the Govt. of India has decided to

set up a Group of Ministers (GOM) to propose legislation and other changes for

preparing a Modem Integrated Food Law and related regulations. The Ministry of State

for Food Processing Industries is the Nodal Ministry to coordinate the Parle G l.

Our federation submitted its recommendations and suggested to placed before the Group

of Ministers, covering the broad frame work required for the food legislation as well as

specific issues such as:

The main objectives of the new Integrated Food Laws & its structure

Methodology of development of Standards

Provisions of Labelling

Acceptance of a basic list of additives

24

Matters relating to GMP(Good Manufacturing Practice), GHP(Gud Health Plan) Issues

related to Codex

Procedure for sampling& launching of Prosecutin

Grading of violations according to the nature of discrepancy.

Recent Changes / Amendments

Prevention of Food Adulteration Rules The Ministry of Health & Family Welfare, Govt.

of India vide its Notification No. GSR 908 (E) Dt. 20.12.2008 has provided for printing

of statutory symbol on all products containing vegetarian ingredients. The notification

came into effect from 20 June 2008. As members may be aware the Govt. has earlier

amended PFA Rules vide notification No. 245(E) Dt.4.4.2001 provided for statutory

printing of the symbols of food packages containing non vegetarian ingredients. This

notification has already come into effect from 4 October 2008.

Our Federation along with apex organizations such as CII(Confederation Of Indian

Industry) & CIFTI (Confederation Of Indian Food Trade & Industry)have represented to

Hon'ble Union Minister for Health and Family Welfare seeking extension of a minimum

period of 6 months for implementation of the notification, particularly on account of

hardships in printing vegetarian symbol in advertisements. A delegation from the industry

met the Secretary, Ministry of Health and Family Welfare and apprised him of the

hardships faced by industry. Further follow up is in hand.

Prevention of Food Adulteration Act / Rules

Members reported various instances where the PFA authorities in the States are

adopting penal action, even in cases of very minor offences / errors under the PFA Rules.

FBMI (Federation Of Biscuit Manufacturer Of India) suggested that such minor errors etc

should be compounded, avoiding prosecution, harassment and resultant losses to biscuit

units. This issue has also been referred to CII (Confederation Of Indian Industry) &

CIFTI (Confederation Of Indian Food Trade & Industry) for further follow up.

Introduction of HACCP/GMP/GHP

The Govt. of India (Ministry of Health), has formulated proposals to introduce the

concepts of Hazard Analysis Control Convention Procedures (HACCP), Good

25

Manufacturing Practices (GMP) and Good Hygienic Practices (GHP), as a step towards

eventual adoption in the various states in accordance with the International Codex

Alumnus, in the context of trade terms and regulatory, measures under the WTO regime.

After discussions with FBMI and other organizations, the Dept of Health constituted

Sectoral Groups on various categories of food processing industries. The Sectoral Group

on Bakery Products consisted of FBMI ((Hazard Analysis Critical Control Point)

Federation Of Biscuit Manufacturer Of India), as Convener and FBMI and SIB as

members. After detailed deliberations, the Federation submitted our comments and

suggestions, highlighting the hardships that the biscuit units would face in the event of

statutory enforcement of HACCP/GMP/GHP.

The Federation suggested that the concepts of HACCP etc should be made voluntary in

the first two/three years, keeping in view the ground realities in the bakery sector and due

to the fact that the implementation of HACCP/GMP/GHP may be beyond he financial

and technical capabilqities of majority of the biscuit manufacturers and compulsory

introduction of these regulations would adversely impact the via Parle G ity and may lead

to closure of a large number of bakeries in the country. FBMI, after detailed deliberations

by the Executive Committee, suggested to the Govt. of India that, in the first instance

projects for imparting training to the Managers/Executives and workforce in the bakery

industries should be organized so as to create awareness and knowledge on these

complex regulatory aspects and educate the personnel in the industry on various aspects

of HACCP etc.

Unified Food Laws – Need for

As members are aware, the food processing industries, including Biscuit / Bakery

segment, are subjected to and administered by a large number of statues i.e. PFA Act /

Rules, Weights & Measures Act, Packaged Commodities Rules, MMPO(Milk & Milk

Product Orders) under Essential Commodities’ Act / Rules, Agmark, BIS etc. There are

much multiplicity of implementing / enforcing Agencies / Departments for watch one of

these Acts and Rules, both at Central and State levels. Unfortunately, many a time there

are instances of overlapping and even contradictions between such Agencies /

Departments. PFA Act / Rules are recipe based, and focus on prosecution / penal action,

even for minor / technical errors etc. which are also different in the States.

26

Similarly, in the Standards of Weight & Measures Act and PC Rules, there have been

plethoras of amendment, and proposals for more restrictions on the food processing

industries including Biscuit and this has resulted in unavoidable hindrances in the

development and growth of the industries.

It is in this context that our Federation in close coordination with CIFTI, CII, FICCI,

PHDCCI urged he Government to evolve a single Integrated Food Law, encompassing

the existing legislation’s mentioned above, with main focus on development and

promotion of the Food Processing, Agro Based industries in the country, paving way for

creation of large employment generation, consumption of varied types of safe food

products of good quality, at reasonable prices benefiting consumers particularly those in

the lower and middle segments of the society. Exports and better capacity utilization also

need to be encouraged in the proposed Integrated law, which would also result in higher

productivity and better revenue for the Central and State Governments.

As a result of such concerted efforts and presentations by organizations of industry,

including AIMBA the Government constituted the Justice Venkatachalam Committee to

review the entire gamut of the existing Food Laws and to recommend the ways ad means

and basis for unifying these Acts / Rules and regulations into an Integrated Food Law

(Act). After due consideration of all aspects and by inviting suggestions from Govt.,

Industry and Commerce as well as consumers and other important sections of the

community at large, the Committee submitted its report containing detailed suggestions /

recommendations on the imperative need for integrating the existing multiple food laws.

Accordingly, the Govt. formed a Group of Ministers with the Ministry of Food

Processing Industries as the nodal point and this comprehensive exercise has resulted in

the Draft Food Parle G l 2002 presented to the Group of Ministers. The said Draft Food

Parle G l 2002 has been formulated to “provide for the production, manufacture,

processing and sale of safe and suitable food systematic and scientific development of

food industry, introducing new technologies, imparting new inputs of market dynamics,

and to create an enabling environment for innovation and value additions, ensuring high

degree of objectivity and transparency and to provide for the establishment of a Food

27

Development an Regulatory Authority of India an the Council for Food Standards and for

matters connected therewith or incidental thereto.

MARKETING STRATEGY FOR PARLE G

Cost leadership:

It is a cost leader in its industry except in cheese and glucose biscuits where it lags

behind Parle respectively. The company has undertaken modernization program in

order to improve productivity. To focus resources, rationalization of brands and

packs has been undertaken and the existing brands have been clustered into more

cost efficient portfolio through a process of brand concentration.

Economies of scale:

Parle G is adding capacity at regular intervals depending upon the economic

environment It has the advantage of being able to source raw materials and even

packaging at cheap rates because of large scale of operations.

Parle G is a star BCG as shown below:

28

* PARLE G

HIGH

MARKET GROWTHRATE

LOW RELATIVE MARKET SHARE HIGH

The BCG growth-share matrix shows that Parle G is a STAR BCG, being a market

leader in a high growth market

29

FIVE FORCE MODEL FOR PARLE G

30

COMPETITOR’S FORCE

(Major MNCs likely to diversify and get into related business of

Parle G

SUPPLIER’S FORCE

(Very large number less of bargaining power

PARLE G PARLE BAKEMAN’SREGIONAL

BUYER’S FORCES

(more quality suppliers, so conscious and price sensitive

SUBSTITUTE’S FORCES

Household snacks Bakery biscuits Fast food

PARLE G SUPPLY CHAIN

Supply chain describes a longer channel stretching from Raw materials to

components to final Products that are carried to final Buyers.

Parle G Supply Chain include Authorized wholesaler, Super stockists, RPDs, UPDs

and Retailers. The Raw Materials are converted into finished goods in the Production

Units or Factories. From factories the finished goods are then sent to the Regional

Depots or the Mother Depots. From here the stock reaches the Warehouse for

distribution to the Authorized Wholesaler. From Warehouse or Depots the Stock

either reaches the Superstockists or the Authorized Wholesalers. From

Superstockists the stock goes to either UPDs (Universal Printer Driver) or RPDs

(Radiation Protection dosimetry) from where it finally reaches to the markets of

Rural India. The Authorized Wholesaler buy goods from Company and from them

31

the Stock goes to the Retailers. Retailers sell Company Products to the End

Consumers.

The Sale of the Stock from Depots to Authorized Wholesaler constitutes Primary

Sale while the Sale of the Stock from Authorized Wholesaler to Wholesaler

constitute Secondary Sale.

Different rural markets have different set of Superstockists (SS) which further have

RPD’s (Rural preferred Dealers) and UPD’s (Urban preferred Dealers) under them.

These UPD’s are the dealers of very small regions only which are considered rural

only and are not completely urban.

Sales Promotion

Sales promotion, a key ingredient in marketing campaigns, consists of a diverse

collection of incentive tools, mostly short term, designed to stimulate quicker or greater

purchase of particular products or services by consumers or the trade."

In marketing, sales promotion is one of the four aspects of promotion. (The other

three parts of the promotional mix are advertising, personal selling, and

publicity/public relations.) Sales promotions are non-personal promotional efforts

that are designed to have an immediate impact on sales. Sales promotion is media

and non-media marketing communications employed for a pre-determined, limited

time to increase consumer demand, stimulate market demand or improve product

availability. Examples include:

· coupons

· discounts and sales

· contests

· point of purchase displays

· rebates

· free samples (in the case of food items)

· gifts and incentive items

· free travel, such as free flights Sales promotions can be directed at either the

customer, sales staff, or distribution channel members (such as retailers). Sales

32

http://en.wikipedia.org/wiki/Retailer

http://en.wikipedia.org/wiki/Distribution_(business)

http://en.wikipedia.org/wiki/Customer

promotions targeted at the consumer are called consumer sales promotions. Sales

promotions targeted at retailers and wholesale are called trade sales promotions.

Purpose of sales promotion.

Sales-promotion tools vary in their specific objectives. A free sample stimulates

consumer trial, whereas a free management-advisory service aims at cementing a

long-term relationship with a retailer.

Sellers use incentive type promotions is to attract new triers, to reward loyal

customers, and to increase the repurchase rates of occasional users. Sales promotions

often attract brand switchers, who are primarily looking for low price, good value, or

premi-urns. Sales promotions are unlikely to turn them into loyal users. Sales

promotions used in markets of high brand similarity produce a high sales response in

the short run but tittle permanent gain in market share. In markets of high brand

dissimilarity, sales promotions can alter market shares permanently.

MAJOR CONSUMER PROMOTIONAL TOOLS

Samples: Offer of a free amount of a product or service delivered door to

door, sent in the mail, picked up in a store, attached to another product, or

featured in an advertising offer.

Coupons: Certificates entitling the bearer to a stated saving on the purchase

of a specific product: mailed, enclosed in other products or attached to them,

or inserted in magazine and newspaper ads.

Cash Refund Offers (rebates): Provide a price reduction after purchase

rather than at the retail shop: consumer sends a specified "proof of purchase"

to the manufacturer who "refunds* part of the purchase price by mail.

To promote products to consumer, company devises some scheme like discount on MRP,

giving freebies with product etc.

How Consumer promotional offer products differ from normal product without offer ?

The product is marketed under some scheme.

The packaging is different from normal product.

33

http://en.wikipedia.org/wiki/Wholesalers

http://en.wikipedia.org/wiki/Consumer

The freebies procurement & logistics planning is additional activity.

The production centers may be different from regular production centers.

The distribution strategy may be different from regular one.

Parle G Industries Ltd. Planned to launch six promotional offers in the month of May

and June 2008.

Complexities involved were promotional offers limited to some region of our country and

rest of country was on normal product.The promotional offers were limited to Uttar

Pradesh and Rajasthan.

Objectives :-

To deliver right SKU (Stock Keeping Unit) & Gift item to right place in right

time.

To achieve internal customer satisfaction level to 95%.

And to increase the consumer base for newly launched product.

Marketing Department decides to run promotional offers on brands with following

objectives.

To penetrate market with greater share of business.

To leverage Parle-G brand by having association with some other known brand.

To counterattack competitor’s strategy.

The consumer promotional offers are based on the principle of elasticity of demand.

Following consumer promotional offers were conceptualized for May and June 2006.

PROMOTION IN RURAL MARKET

MERA RPD MAHAN CONTEST

Mera RPD (Radiation Protection Dosimetry) Mahan contest was a dealer incentive

contest which was designed for the dealers of the Rural market. This contest was

designed to motivate the RPDs (Radiation Protection Dosimetry) and UPDs (Urban

preferred Dealers) to reach their Sales target of 35,000 and 50,000 respectively. This

contest was held in the month of May and June.

The details of this contest are as follows:

34

Period May- Jun'06

Scope RPDs (Radiation Protection Dosimetry) in all SURE Territories

Criteria Sales target achievement for the incentive period

Targets for the period to be set by the SO/ ASM in

consultation with the RSM Minimum swing of 40% in

May and June'06 MA sales over Jan-Mar'06 MA sales

To qualify the RPD must have minimum current sales

of Rs.30000 PM or the Target sales should be a

minimum of Rs.30000 PM.

Mechanics

1 Top RPD to be selected as the "Mera RPD (Radiation Protection Dosimetry)

Mahaan" per RPD PSM PJP.

This RPD to get a gift article worth Rs. 3000/- (Nokia MoParle G e Phone

Proposed

All other RPDs to get a gift article worth Rs. 500/- or cash if preferred

WEAKNESSES

The Company takes a lot of time in handling the UCA (Supply Chain Company)

claims of the authorized wholesalers; this !eads to demotivation

Warehousing norms are not followed, which accounts for high breakage

The semi-sweet category accounts for the maximum turnover in the mass market-

the Tiger Anytime being a member of this category is perceived as a tow quality

product; this may liquidate Parle G 's brand equity in the mass market

Parle G has positioned it's Tiger range on health and taste, but my findings show

that health consciousness in the mass market is low, which means that the brand is

under-positioned, since the market doesn't consider "health1 as an important benefit

35

in biscuits

Parle G 's strength is in mid, premium mid super-premium category; this market is

approaching a saturation point

Parle G 's mass market is not segmented properly; Parle G cannot afford to go all

out in the mass market, the best strategy would be to concentrate on these

segments of the mass market, which will account for volume sales and require

minimum investment

Performance-based incentive to motivate the sates staff is not existing in the

Company

Yearly incentives don't motivate the dealers of mass market brands

OPPORTUNITIES

Mass market is growing with established preference for biscuits

Growing middle class in India can provide more opportunities for Parle G 's pillar

brands

Credit given to dealers will help Parle G in expanding the width of reach, by

which the company will have a volume advantage

Taste plays an important role in mass market which can take care of price

sensitivity to some extent

There is low differentiation in the mass market brands

There is a fairly good market for a high count salty cracker variety and a cream

cracker variety in the mass market

THREATS

De-reservation of the biscuit industry may attract foreign players who initially

will try to attack the premium segment, which is already established for Parle G

A characteristic feature of premium market consumer is that this segment is not

brand loyal; therefore there is a chance of the consumers to shift to other brands in

the near/distant future

Too much concentration in the mass market may affect the companies market in

this established segment

Mass-market venture may account for this cannibalization

36

A large number of competitors each having respective bold in different markets of

the company's pillar brands will account for high contribution/orrir

37

CHAPTER 3

RESEARCH METHODOLOGY

OBJECTIVE OF THE STUDY

PRIME OBJECTIVE

To find out the competitive activity and merchandising through retailer of PARLE G

BUISCUIT in south Delhi.

OTHER OBJECTIVE

To find out the consumer preference according to retailer view.

To find out the satisfaction levels towards service provide by PARLE G.

To find out the major competitor of PARLE G BISCUIT.

SCOPE OF THE STUDY

FMCG Sector is a growing sector in India at high pace. Biscuit manufacturing industries

has lot of scope in the Indian economy. Company manufactures according to the

consumer’s interest. There is a high competition in biscuit manufacturing industry’s such

as Parle-G, Sunfeast, Priya gold, etc. consumer prefers to take that product which not only

satisfy him but also his colleagues, family, natives. This study helps in determining right

choice for them.

DATA COLLECTION METHOD

Data collection is an elaborate process in which the researchers make a planned research

for all relevant data. Data is the foundation of all market research. Data are facts may be

obtained from several sources. Data can be classified as:

38

Primary data

Secondary data

PRIMARY DATA

It is gathered for the first time by the researchers. If the secondary data is found to be

inadequate or unavailable, the researcher goes for primary data.

COLLECTION OF PRIMARY DATA

The researcher was assigned to do a comparative study on PARLE G BISCUIT. In order

to accomplish the job, the researcher adopted the two-way strategy to collect the primary

data.

Secondly to complete the job in a more genuine way, retailer survey was conducted

sample of 30 rational retailers were taken and they were supplied with a structured non-

disguised questionnaire. The idea was to seek out the market position of PARLE G

BISCUIT.

The data collected was collected from different retail outlets of biscuit namely:

Shops

Confectioners

Kirana and general stores

SECONDARY DATA

Secondary data is the data borrowed from secondary sources by the researcher.

Secondary data can be internal or external i.e, internal records of the company or

information available from library and other statistical organization.

In a Market Research Project Field Work has a very vital role to play. As a matter of fact,

it’s the back bone of any Market Research Project. Field work basically consists of

collection of primary data. In this project, researcher had to undergo a lot of Field Work.

39

For the purpose researcher has a visit various cinema halls, public attractive places,

colleges & school canteens etc.

The whole area which was to be surveyed was divided into different segments randomly.

Simultaneously survey of both retailers and consumers was carried out. The researcher

worked in the field for a span of one & half months.

Later on whole data which was collected from field was well scrutinized & tabulated for

analysis. Its interpretation has been provided in most easy to understand manner with the

help of suitable diagram & charts.

.

40

CHAPTER 4

DATA PRESENTATION AND ANALYSIS

The Sale of 6 SKUs (Stock Keeping Unit) in 4 Regions namely Western UP,

Eastern UP, Central UP and Rajasthan was analyzed for a Period of three months from

April to June. In April, there were no Promotions on these SKUs (Stock Keeping Unit)

while in the Month of May and June these SKUs were offered with Promotions. The total

Sale of these SKUs (Stock Keeping Unit) without Promotion i.e. in the month of April

was compared with the total Sale of these SKUs with Promotions in the month of May

and June. The total Percentage increase in Sales from April to May and then subsequently

from May to June was analyzed. The Effect of these Promotions on the total Sales was

calculated.

These promotions are launched especially for the rural marketsand therefore their

effectiveness is to be tested in the rural market only. These has been introduced to

increase the sale of these biscuits in rural market.

The RPD’s and the UPD’s of each and every Superstockist was tracked. It was

tracked that whether the RPD’s have meet their sales target of 35,000 and UPD’s of

50,000 or not. If they have not met their targets by when are they going to meet their

targets and what is the reason they have not yet met their sales target.

Thereafter the monthly reports of April, May and June were compared and the

Percentage increase in Sale was calculated.

For all the three months the Overall Sale as well as the RPD and UPD Sale was

Calculated for all the four Regions. In Addition to this the the total Percentage of

Stock reaching the Rural market and the Urban market was also calculated. At each

and every step the Percentage increase in Sale of euery region was calculated.

The Analysis and Finding of this Projects are as follows:

SALES ANALYSIS OF CONSUMER PROMOTION

TOTAL SALES (in Ttonnes)

MATERIAL APRIL MAY JUNE

50:50 150G 10 13 44

TIGER KESAR KULFI 100G 1 3 4

41

TIGER ROSE MILK 100G 2 3 7

TIGER ORANGE CREAM 100G 10 15 22

TIGER ELAICHI CREAM 100G 1 1 7

TIMEPASS CLASSIC S.150G 1 3 5

It is clearly depicted from the above Graph that there has been a tremendous increase

in total Sales of all the SKUs (Stock Keeping Unit) from April to June due to the

Promotional Schemes offered with these SKUs during this Period. The maximum

swing in the total Sale was observed for 50:50 150gm which is about 44 tonnes in

June as compared to only 10 tonnes in April.Also in this region, there has been a

noticeable increase in the total Sale of the Tiger Orange Cream 100 gm. The sale was

increased from 10 tonnes in April to 22 tonnes in June. The Percentage increase in

the total Sale of this SKU (Stock Keeping Unit) from April to June was 120%.

The Total Sale of all the rest of the SKUs (Stock Keeping Unit) has also increased

Marginally during this time Period.

42

EASTERN UP

35

1 1

61

2 3

56

1 0

62

4 7

109

7 6

70

8

27

0

20

40

60

80

100

120

91340 50:50150G

91344 TIGERKESAR KULFI

100G

91345 TIGERROSE MILK

100G

91346 TIGERORANGE

CREAM 100G

91347 TIGERELAICHI

CREAM 100G

91350 TIMEPASSCLASSICS.150G

TO

TA

L S

AL

ES

(in

To

nn

es

)

APRIL

MAY

JUNE

It is clearly seen from the bar Diagram that in this region, the maximum Percentage

increase in total Sales was for 50:50 150gm and Timepass Classics 150gm. There

has been a tremendous increase (212% for 50:50 150gm and 800% for Timepass

Classics 150 gm)in sale for these SKUs (Stock Keeping Unit) due to promotional

Schemes offered with these SKUs (Stock Keeping Unit).

There has been a Marginal increase in the Sale of rest of the SKUs (Stock Keeping

Unit).

MATERIAL APRIL

TOTAL SALES (in Tonnes)


50:50 150G 35 56 109







43

50:50 150G 8 12 88






CENTRAL UP

8 6 4

13

3 3

128 5 4 4

88

6 6

18

9

27

14

0

10

20

30

40

50

60

70

80

90

100

91340 50:50 150G 91344 TIGERKESAR KULFI

100G


100G

91346 TIGERORANGE

CREAM 100G

91347 TIGERELAICHI

CREAM 100G

91350 TIMEPASS

CLASSIC S.150G

TO

TA

L S

AL

ES

(in

To

nn

es

)

APRIL

MAY

JUNE

In this region also, the Maximum increase in Percentage total Sales was Observed

for 50:50 150 gm and Timepass Classics 150 gm. The Percentage increase in Total

Sales of 50:50 150 gm from April to June due to Promotions was 1000% and for

Timepass Classics 150 gm was 800%.

An unusual trend in increase in sale was Observed in case of Tiger Kesar Kulfi 100

gm. There has been a increase in sale of this SKU (Stock Keeping Unit) from April

to May but there has been a Drop in the Sale from May to June. This is because of

the non availability of this SKU (Stock Keeping Unit) in this Region.


44


50:50 150G 36 41 70






RAJASTHAN

36

8 7

16

62

41

10 713

713

70

11 13

32

4

19

0

10

20

30

40

50

60

70

80

91340 50:50150G

91344 TIGERKESAR KULFI

100G


100G

91346 TIGERORANGE

CREAM 100G

91347 TIGERELAICHI

CREAM 100G

91350 TIMEP ASSCLASSIC

S.150G

TO

TA

L S

AL

E(i

n T

on

ne

s)

APRIL

MAY

JUNE

As it can be seen in the above chart sale of 50:50 due to promotion shoot up like

anything in month of June that is a increase of around 89%. Also other SKUs (Stock

Keeping Unit) like TIGER ORANGE and TIGER ELAICHI showed a decreasing

trend due to unavaiParle G ity of stock of the given product.

45

EASTERN UP

50

60

0

57

42.1

32.3

50

40

0

43

57.9

67.7

0

10

20

30

40

50

60

70

80

91340 50:50 91344 TIGERKESARKULFI

91345 TIGER ROSE

MILK

91346 TIGER

ORANGE

91347 TIGER

ELAICHI

91350 TIMEPASSCLASSIC

PE

RC

EN

TA

GE

%Rural Sale

% Urban

The affect of promotion is clearly seen in the Eastern UP. The target rural sale

according to superstockists contribution should be 61%. Only TIGER KESER

KULFI and TIGER ORANGE are close to the target whose Rural Sales Percentage

are 60% and 57% respectively. For all the rest of the SKUs (Stock Keeping Unit) the

Percentage Rural Sale is very less than the targeted in this month.

The SKU named TIGER ROSE MILK does not show any sale neither Rural nor

Urban in this region. This is due to non availaParle G ity of this SKU (Stock Keeping

Unit) in this region during the month of May.

aterial

%Rural

Sale

% Urban

Sale

50:50 6.7 93.3

TIGER KESAR KULFI 18.5 81.5

TIGER ROSE MILK 5.4 94.6

TIGER ORANGE 28.7 71.3

TIGER ELAICHI 16.3 83.7

TIMEPASS CLASSIC 20 80

46

CENTRAL UP

6.718.5

5.4

28.7

16.3 20

93.381.5

94.6

71.3

83.7 80

0102030405060708090

100


91345 TIGER

ROSE MILK

91346 TIGER

ORANGE

91347 TIGER

ELAICHI


PE

RC

EN

TA

GE

%Rural Sale

% Urban

The target rural percentage sale should be at least 34% according to Superstockists

contribution in this area. TIGER ROSE MILK has done the least sale among all the

SKUs(Stock Keeping Unit) . There should be slight increase in sales of TIGER

ORANGE i.e. up to 5% so as to reach the targeted rural sale Percentage. None of the

SKUs (Stock Keeping Unit) has reached the targeted Sales Percentage in the month

of May.

Material

%Rural

Sale

% Urban

Sale

50:50 38.3 61.7

TIGER KESAR KULFI 50 50

TIGER ROSE MILK 50 50

TIGER ORANGE 40 60

TIGER ELAICHI 28.3 71.7

TIMEPASS CLASSIC 43.6 56.4

47

RAJASTHAN

38.3

50 50

40

28.3

43.6

61.7

50 50

60

71.7

56.4

0

10

20

30

40

50

60

70

80


91345 TIGER ROSE

MILK

91346 TIGER

ORANGE

91347 TIGER

ELAICHI


PE

RC

EN

TA

GE

%Rural Sale

% Urban

The target rural percentage sale should be at least 48% according to Superstockists

contribution in this area. TIGER KESAR KULFI and TIGER ROSE MILK has

reached their target Rural Sale Percentage. Rest all the SKUs are below the target

sale Percentage. TIGER ORANGE and TIMEPASS CLASSIC are close to the

targeted Sale and need slightly more efforts to reach to the targeted Percentage in the

next month.

PERCENTAGE RURAL AND URBAN SALE SKU (Stock Keeping

Unit) WISE IN MONTH JUNE

Material

%Rural

Sale

%

Urban

Sale

50:50 10 90



TIGER ORANGE 12 88

TIGER ELAICHI 17 83


48

WESTERN UP

10 10 6 12 17

45

90 90 94 88 83

55

0

20

40

60

80

100

91340 50:50

91344 TIGERKESARKULFI

91345 TIGER

ROSE MILK

91346 TIGER

ORANGE

91347 TIGER

ELAICHI


PE

RC

EN

TA

GE

%Rural Sale

% Urban

The target rural percentage sale should be atleast 16.8% according to Superstockists

contribution in this area.Only TIMEPASS is doing

exceptionally good but rest SKUs (Stock Keeping Unit) i.e. 50:50 (12.3%) and

TIGER Cream(Aggregate 14.6%) are less than the target percentage.

Material

%Rural

Sale

%

Urban

Sale

50:50 47 53



TIGER ORANGE 60 40

TIGER ELAICHI 50 50


49

CHAPTER 5

CONCLUSION & RECOMMENDATIONS

Sales Promotional Offers helps the company to increase the over sales of the product

under promotion because consumers tend to buy in ample amount due to small

duration of the promotion and feel value for their money.

But through these promotional schemes company earns fewer margins.

It also helps in widening their consumer base i.e. it attracts new triers.

It creates the brand awareness among the consumers about the newly launched

product like Tiger cream.

Products which are less popular among the consumers like Pepper Checker are

also get Promoted.

It helps to increase the repurchase rate of the occasional buyers

Since the promotions were designed for rural market and rural market contributes

to 70% of the total market hence attracting more consumers. And turn them to loyal

users

It enhances brand image

Since attractive promotion attracts consumers hence retailers push products under

promotion rather than competitors products of same kind.

Sales promotion also attracts brand switchers who are primarily looking for low

price good value of premiums.

50

Learnings through Trade Promotions:

to persuade the RPDs and UPDs to carry the brand because they are more

concentrated in making sales of the given company product so as to get maximum

incentives.

to persuade the RPDs and UPDs to carry more units than the normal amount

as they have to reach the target sale under Mera RPD Mahaan Scheme.

to induce RPDs and UPDs to promote the brand by featuring, display, and

price reductions so as to attract more consumers.

to stimulate RPDs and UPDs and their sales clerks to push the product than

competitors products otherwise they wont be able to reach their sales target.

Also Attract more RPDs and UPDs to take participate in the contest because of

the incentives.

Problems

Stock out:

It was observed that most of the Promotional SKUs (Stock Keeping Unit) were

out of stock at most of the depots during the Promotional Period which has

effected the total sales of these SKUs in these four regions tremendously.

Non availaParle G ity of Freebies:

It was observed that sometime during the Promotional Period the Freebies which

has to be given with the main Product were not available. Due to their

unavailaParle G ity the Promotion for that Particular SKU (Stock Keeping Unit)

was not carried for that Period of Promotion.

Allocation Problem:

The allocation was the most prominent problem during this Promotion. The stocks

were not allocated in the Rural and Urban markets according to their Percentage

area contribution. In some areas the stock was supplied more which was not in

accordance with the Percentage area contribution of that region while in some

very less stock was supplied as compared to their Percentage area contribution.

Due to this most of the time major part of the stock was dispatched in the Urban

markets which has seriously affected the Rural sales.

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Dispatch Problem:

There was no proper schedule for dispatching & receiving of orders generated.

Generally the Stocks are Dispatched late by about a week from the depots due to

which the stock reaches late to the wholesalers and during that week the

wholesalers face the problem of non availability and are left with very less or no

stock to sell.

Poor sale promotion skills:

According to observations, sale was not promoted skillfully in most of the

Regions. The retailers in these regions have not taken appropriate efforts so as to

promote the promotional products skillfully.

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RecommendationsAs already discussed above, there are certain issues and flaws associated with

Sales Promotion, so in order to implement it effectively and efficiently we would

like to suggest certain recommendations to the company:

Production department should make efforts to make available all of the product

varieties in the depot norm wise. So that each and every variety should be available

according to the generated order so as to meet the stock out problem.

I recommend strong coordination between production and the sales department. So

that a proper production forecast for each variety can be maintained by the

production department.

Proper allocation of the stock from the depot according to the Superstockists

contribution so that neither there is excess stock in one region nor stock outs in other.

I also recommend to increase average number of lines so that all the SKUs (Stock

Keeping Unit) are available in the market.

Apart from setting overall target for all the SKUs (Stock Keeping Unit), there should

also be individual SKU wise target so that RPDs and UPDs are able to make sales of

unfamiliar products also.

To increase the sales margin the price value of the main brand should be relatively

higher i.e. around thrice of the Freebie for example instead of Rs10 pack of 50:50

150G Freebie Pepper Checker should be given with Rs15 pack of 50:50.

There should be a system from where different distributors can see the stock position

of company and as well of other distributors. It will help the distributor in a way that

if some distributors who wants the same.

Contests like MERA RPD MAHAAN should be held every quarter.

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CHAPTER 6

BIBLIOGRAPHY

www.bookboon.com

www.wikipedia.org

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http://www.wikipedia.org/

http://www.bookboon.com/

Business

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