Brand Project on - Parle Acknowledgement

8/9/2019 Brand Project on - Parle Acknowledgement

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ACKNOWLEDGEMENT

A successful completion of job is based upon the chain of factors combining together to

make an integral outcome. The cooperation of the factors mixed with sincere effort can lead to

best performance. Our project is also no exception to this. So it becomes necessary to mention

this before we start writing the study report.

We take this opportunity to express our deep sense of gratitude to all those who have

contributed significantly by sharing their knowledge and experience in the completion of this

project work.

We would like to place on record our sincere gratitude to Mr. Nilesh Thalan!Area Sales

"anager #arle #roducts #vt. $td% for giving us support guidance & opportunity to do our

summer internship with #arle #roducts #vt. $td.$ast but not the least our wholehearted thanks goes to the distributors and wholesalers

and retailers with whom we interacted and all those people who indirectly or directly helped us.

SACHIN FARAD

MBA II

'.PROFILE OF THE COMPANY

Parle Pro!"#s P$#. L#.% A cream colored yellow stripped paper with a cute baby photo

containing '()'* biscuits with the company+s name printed with in ,ed. Times changed variety


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of biscuits did come and go but nothing has changed with these biscuits. -es the sie of their

packing has definitely changed but for the consumer good as these are money saver pack.

The #arle name conjures up fond memories across the length and breadth of the country.

After all since '/*/ the people of 0ndia have been growing up on #arle biscuits and

sweets.

0nitially a small company was set up in the suburbs of "umbai city to manufacture

sweets and toffees. The year was '/*/ and the market was dominated by famous international

brands that were imported freely. 1espite the odds and une2ual competition this company called

#arle #roducts survived and succeeded by adhering to high 2uality and improvising from time to

time

A decade later in '/3/ .#arle products began manufacturing biscuits in addition to

sweets and toffees. 4aving already established a reputation for 2uality the #arle brand name

grew in strength with this diversification. #arle 5lucose and #arle "onaco were the first brands

of biscuits to be introduced which later went on to become leading names for great taste and

2uality.

6or around 78 years #arle have been manufacturing 2uality biscuits and confectionary

products. Over the years #arle has grown to become a multimillion dollar company with many of

the products as market leaders in their category. The recent introduction of 4ide & Seek

chocolate chip biscuits is a product of innovation and caters to a new taste being 0ndia+s first

ever chocolate chip biscuits.

Apart from the factories in "umbai and 9angalore #arle also has factories in

9ahadurgarh in 4aryana and :eemrana in ,ajasthan which are the largest biscuit and

confectionery plants in the country. Additionally #arle #roducts also has 7 manufacturing units

and 8' manufacturing units on contract.

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

easy distribution.


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S)ee# "on*e"#ioner+

"elody "ango 9ite #oppins * in ' =clairs "aelo ;ismi Toffee 9ar$ondon 1erry

Sna",s

"onaco Smart >hips #arle?s Wafers 6ulltoss #arle :amkeens

Since they have been entered at the food competitionof "onde Selectionin '/7'the brands have received consistently gold and silver @uality Awardsat the World

@uality Selections.BC

An in)depth understanding of the 0ndian consumer psyche has helped #arle evolve a marketing

philosophy that reflects the needs of the 0ndian masses. With products designed keeping both

health and taste in mind #arle appeals to both health conscious mothers and fun loving kids. 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 #arle

products to the fullest.

Bis"!i# -ooies% Con*e"#ionar+%

#arle)5

5ol5appa

;rackjack

>lassic "int

"onaco

$ite "int

"onaco 6union

;ismi

;reams

Orange >andy

4ide and Seek

"ango 9ite

4ide and Seek "ilano "elody

#oppins

=clairs) 8( p

9ourbon "elody Softe) ',s.

;ismi 9ar

#arle "arie >hox;acha "ango

"ilk Shakti "aelo

0mli 9ite

;ismi 5old

#arle *()*( >ookies M!n"h on sna",s%

:imkin "usst 9ites
http://en.wikipedia.org/wiki/Food_competitionhttp://en.wikipedia.org/wiki/Food_competitionhttp://en.wikipedia.org/wiki/Monde_Selectionhttp://en.wikipedia.org/wiki/Awardshttp://en.wikipedia.org/wiki/Parle_Products#cite_note-6http://en.wikipedia.org/wiki/Food_competitionhttp://en.wikipedia.org/wiki/Monde_Selectionhttp://en.wikipedia.org/wiki/Awardshttp://en.wikipedia.org/wiki/Parle_Products#cite_note-6


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Parle is"!i#s%#arle biscuits are linked with factors of power and wisdom providing nutrition

and strength. #arle biscuits are indeed much more than a tea) time snack they are considered by

many to be an important part of their daily food. #arle can treat you with a basket of biscuits

which are not only satisfying but are also of good and reliable 2uality. #arle biscuits cater to all

tastes from kids to senior citiens. They have found their way into the 0ndian hearts and homes.

Parle G

6or over B8 years #arle 5 has been a part of the lives of every 0ndian. 6rom the snow

capped mountains in the north to the sultry towns in the south from frenetic cities to laid

back villages #arle 5 has nourished strengthened and delighted millions. 6illed with the

goodness of milk and wheat #arle 5 is not just a treat for the taste buds but a source of

strength for both body and mind. Tear over a packet of #arle 5 to experience what has

nourished 5enerations of 0ndians since last sixty five years making it trulyHindustan Ki

Taakat.Pa", Si/es a$ailale%'B.85 3D.85 B(.85 D*.85 //5 *(/5 3'3.85 E'D5

D*85

&01&0


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,ich butter and tempting cashews. An irresistible combination.

#arle Twenty)*( cookies. 9aked to perfection to deliver the perfect experience of taste and

aroma they melt in your mouth to give you a cookie eating experience unlike one you have

ever had before enjoy a feast of crunchy crispy scrumptious cookies. Pa", Si/es a$ailale%

78 5 ''( 5 **8 5

Mona"o

Share the company of great taste anytime anywhere with "onaco. A light crispy biscuit

sprinkled with salt "onaco adds a namkeen twist to life+s ordinary moments. Pa", Si/es

a$ailale%78 5 '*( 5 *E( 5

Hie an See,


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The ingredients that go into making this pried cookie are a well)guarded secret. What is is

the effect it has on those who eat it. A cookie with a reputation for romance. 0ndulge in the

sinful taste of "ilano and everything that follows it. Pa", Si/es a$ailale%*8 5 B* 5 '((

5 and *(( 5

Kra",2a",

The original sweet and salty biscuit is one of the most loved biscuits in the country.

0t+s not just a biscuit it+s the taste of relationships captured in a biscuit.

A little sweet and a little salty crafted in such a delicate and delicious balance you can never

get enough of it. 4ave it anytime you like with anything you like. Pa", Si/es a$ailale%

785 '7(5 *E(5

Parle Con*e"#ionaries%

,ight from candies to toffees the sweet ?n? treat category of the #arle product range is a

genuine treat for every snack lover. This category can satisfy one?s taste and at the same time

create a desire for more. These confectioneries are a sheer delight to the taste buds and have a

universal appeal. #arle 9iscuits and confectioneries continue to spread happiness & joy among

people of all ages.


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Melo+ Man-o Bi#e Oran-e Can+

Ka"h"ha Man-o Bi#e Kis3i To**ee Gol-a44a

"any of the #arle products ) biscuits or confectioneries are market leaders in their category

and have won acclaim at the "onde Selection since '/7'. With a E(F share of the total biscuit

market and a '8F share of the total confectionary market in 0ndia #arle has grown to become a

multi)million dollar company. While to consumers it?s a beacon of faith and trust competitors

look upon #arle as an example of marketing brilliance. #arle 5 a premium glucose biscuit is the

world+s largest selling biscuit.

A factory of these glucose biscuits is situated in :eemrana is producing 7((( metric tonnes

every month. A list of premium 2uality biscuits and confectioneries is produced and distributed

across nations.


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Segmentation Targeting and #ositioning of #arle

0f 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 tastesi.e. the consumers would not like to have something really vague like 8(Fsalty *8Fsweet

and*8Fcreamy.That is why the preferences are clustered and not diffused wherein the

preferences have to be very extreme and vague. #arle as a company makes use of this clusteredpreferences and manufactures biscuits for each and every cluster. 6or e.g. "onaco for entirely

salty biscuits and its latest product ;rack jack)cream is for sweet and salty taste.

Target "arketingG

Segmentation reveals only the firm+s opportunities. The firm now has to evaluate the varioussegments and decide how many and which segments it can best serve.

=valuating "arket SegmentsG

A firm must look at three factors to evaluate market segmentsG segment sie and growthH segment

structural attractivenessH and company objectives and resources.

The company must first collect and analye data on current segment sales growth rates andexpected profitability for various segments. 0t will be interested in segments that have the right

sie and growth characteristics. 9ut Iright sie and growthJ is a relative matter.

There are several structural characteristics that affect long)run segment attractiveness.

The segment is less attractive if there are several strong aggressive competitors.

The existence of many actual or potential substitute products may limit prices and the profits thatcan be earned.

The relative power of buyers also affects segment attractiveness.

A segment may be less attractive if it contains powerful suppliers who can control prices or

reduce the 2uality or 2uantity of ordered goods and services

The company must take into account its own objectives and resources in relation to the segment.0f a segment does not mesh with the company+s long)run objectives it can be dismissed.

The company must take into consideration whether it has the skills and resources needed to

succeed in the market. The company should enter only segments in which it can offer superior

value and gain advantage over competitors.

#ositioning Strategy of #A,$=


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#ositioning strategy

#arle is positioned in the minds of people as a value for price product and also as a low)priced

product.

1ifferentiation strategy

6or #arle)5 the company has used channel and image differentiation tools. #arle)5 by far has the

most intensive distribution coverage as compared to any other biscuit company in 0ndia. Also the

name #A,$= has an image that generates respect and a belief of good 2uality in the minds of the

buyers.

A product+s position is the way the product is defined by the consumers on important attributesH

it is the place the product occupies in consumers+ minds relative to competing products. 0t

involves implanting the brand+s uni2ue benefits and differentiation in customers+ minds.

To simplify the buying process consumers organie products services and companies intocategories and IpositionJ them in their minds. A product+s position is a complex set of

perceptions impressions and feelings that consumers have for the product compared with

competing products.

>onsumers will position products with or without the help of marketers. So marketers must planpositions that will give their products the greatest advantage in selected target markets and then

must design marketing mixes to create these planned positions.

T4= ST,=:5T4 O6 T4= 9,A:1

Over the years #arle has grown to become a multi)million KS 1ollar company. "any of the#arle products ) biscuits or confectionaries are market leaders in their category and have won

acclaim at the "onde Selection since '/7'.

Today #arle enjoys a E(F share of the total biscuit market and a '8F share of the total

confectionary market in 0ndia. The #arle 9iscuit brands such as #arle)5 "onaco and;rackjack and confectionery brands such as "elody #oppins "angobite and;ismi enjoy a

strong imagery and appeal amongst consumers.

9e it a big city or a remote village of 0ndia the #arle name symbolies 2uality health and great

tasteL 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 4ide & Seek or the singletwist wrapping of "ango bite

0n this way by concentrating on consumer tastes and preferences and emphasiing ,esearch &

1evelopment the #arle brand grows from strength to strength.

T4= "A,;=T0:5 ST,=:5T4 O6 #A,$=


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The extensive distribution network built over the years is a major strength for #arle #roducts.

#arle biscuits & sweets are available to consumers even in the most remote places and in the

smallest of villages with a population of just 8((.

#arle has nearly '8(( wholesalers catering to E*8((( retail outlets directly or indirectly. A two

hundred strong dedicated field force services these wholesalers & retailers. Additionally thereare 3' depots and >&6 agents supplying goods to the wide distribution network.

The #arle marketing philosophy emphasies catering to the masses. They constantly endeavourat designing products that provide nutrition & fun to the common man. "ost #arle offerings are

in the low & mid)range price segments. This is based on their understanding of the 0ndian

consumer psyche. The value)for)money positioning helps generate large sales volumes for theproducts.

4owever #arle #roducts 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

5. AD6ERTI7ING AGENCY IN6OL6ED IN YO'R BRAND

#arle #roducts intends to initiate a creative pitch within its roster for its newly launched #arle)5

5old brand. >urrently the agencies in #arle #roduct?s roster are Ogilvy 0ndia =verest

Advertising 5rey 0ndia and Thoughtshop Advertising. The media mix will include TM print

outdoor and below)the)line activities. he new product is currently available in "umbai and the

areas surrounding the city. The company plans to extend the presence across 0ndia in a phased

manner. Apparently 5rey 0ndia has worked on the packaging for the brand.

8. MARKETING EN6IRONMENT OF PARLE


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Over the years #arle has grown to become a multi)million KS 1ollar >ompany. "any of the

#arle products ) biscuits or confectionaries are market leaders in their category and have won

acclaim at the "onde Selection since '/7'.Today #arle enjoys a E(F share of the total biscuit

market and a '8F share of the total confectionary market in 0ndia. The #arle 9iscuit brands

such as #arle)5 "onaco and ;rack)jack and confectionery brands such as "elody #oppins

"ango bite and ;ismi enjoy a strong imagery and appeal among consumers.

4$$ and 0T>+s entry into biscuits will affect #arle After testing the waters with niche offerings

in untapped segments of the biscuit market heavyweights 4industan $ever and 0T> have now

forayed into the mass biscuit market. While 0T> has launched its glucose brand Sun feast 4$$

has decided to differentiate its product "odern N=nergy+ 9iscuits by using wheat and soya as

ingredients. 0mportantly both 0T>+s and 4$$+s new offerings are priced at ,s Efor a '(( gram

pack the same level as #arle 5 and 9ritannia+s NTiger+ glucose biscuits.

5iven 4$$+s and 0T>+s massive distribution reach this new development would clearly have asignificant impact on the market shares of both #arle and 9ritannia. 0n case the taste of the new

products do not go down very well with consumers the already established players may get

some breathing space but it will be only a matter of time before that gets corrected and thepressure will soon be back on. Structurally the entry of players such as 4$$ and 0T> in the mass

biscuit market is bound to affect the dominance of 9ritannia in the biscuits market. What+s more

competition from regional players such as Surya 6oods known for its N#riya5old+ range ofbiscuits has also increased. 0t certainly doesn+t help that the company has just had a change in

leadership. 6urther since the company has hived)off its dairy division overall growth rates

would clearly be lower than what investors have been used to for a while. As far as profitabilitygoes much depends on the company+s ability to further reduce costs unless there is a

further reduction in excise rates.

ANALYSIS OF PARLE 9S MARKET POSITION IN BISC'IT IND'STRY

9iscuits were very much a luxury food in 0ndia when #arle beganproduction in '/3/.

Apart from 5lucose and "onaco biscuits #arledid offer a wide variety of brands. 4oweverduring the SecondWorld War all domestic biscuit production was diverted to assistthe 0ndian

soldiers in 0ndia and the 6ar =ast. Apart from this theshortage of wheat in those days made

#arle decide toconcentrate on the more popular brands so that people couldenjoy the pricebenefits. The incredible demand led #arle tointroduce the brand in special branded packs and in

larger festivetin packs. 9y the year'/E/ #arle 5lucose biscuits were availablenot just in "umbai

but also across the state. 0t was also sold inparts of :orth 0ndia. 9y the early8(s over'8( tonnesof biscuitswere produced in the "umbai factory. $ooking at the success of #arle)5 a lot of other

me)too brands were introduced in the market. And these brands had names that were similar to

#arle5luco 9iscuits so that if not by anything else the consumer woulderr in picking the brand.

This forced #arle to change the namefrom #arle 5luco 9iscuits to #arle)5. #arle)5 was theonly biscuitbrand that was always in short supply. 0t was heading towardsbecoming an all)time

great brand of biscuit. #arle)5 started beingadvertised in the D(?s. 0t was advertised mainly

through press ads. The communication spoke about the basic benefits of energy and nutrition.


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0n'/D/#arle)5 released its 1adaji commercial which went on to become one of the most

popular commercials for #arle)5. The commercial was run for a period of years. #arle)5 grew

bigger by the minute. 9e it the packs sold the areas covered or the number of consumers. 0tbecame a part of the daily lives of many 0ndians. 0t wasn?t a biscuit any more. 0t had become an

icon. The next level of communication as sociated the brand with the positive values of life like

honesty sharing and caring. Thankfully today there?s no dearth of ingredients and the demandfor more premium brands is on the rise. That?s whyH we now have a wide range of biscuits and

mouthwatering confectionaries to offer #arle)5 biscuit is basically aimed for poor category of

people as its price is only ,s.E since last '( years which is affordable to any class of thepopulation. Therefore government should see that such companies which provide economic help

to the country should not be disturbed in any sense. 0n fact government should help in such a

way that such companies grow even more which can further improve the economic conditions of

their domestic countries. 9ut in 0ndia the situation is totally opposite. #arle)5 pays excise dutywhich if it doesn+t pay can reduce its ",# even lesser while other products such as cheese jam

butter which are consumed by middle or upper class people are exempted from paying excise

duty. 0n this way government in spite of many re2uests is not giving its helping hand to #arle)5.

I>onstitution has put several road blocks which have checked the pace of the company+seconomic development.J#arle)5 is totally in favor of the above statement as they say new rules

and policies depend on government to government. They adopt various laws for theirown mutual benefits.

T4= "A,;=T0:5 ST,=:5T4 The extensive distribution network built over the

years is a major strength for #arle #roducts. #arle biscuits & sweets are available to

consumers even in the most remote places and in the smallest of villages with a population of

just 8((. #arle has nearly '8(( wholesalers catering to E*8((( retail outlets directly or

indirectly. A two hundred strong dedicated field force services these wholesalers & retailers.Additionally there are 3' depots and >&6 agents supplying goods to the wide distribution

network. The #arle marketing philosophy emphasies catering to the masses. They constantlyendeavor at designing products that provide nutrition & fun to the common man. "ost #arleofferings are in the low & mid)range price segments. This is based on their understanding of

the 0ndian consumer psyche. The value)for)money positioning helps generate large sales

volumes for the products. 4owever #arle #roducts also manufactures a variety of premiumproducts for the up)market urban consumers. And in this way caters a range of products to a

variety of consumers.

>4A#T=, E "A,;=T0:5 "0 O6 #A,$= #,O1K>TS

The term marketing mix refers to uni2ue blend of #roduct #lace #romotion & #ricing

strategies designed to produce mutually satisfying exchanges with a target market. "arketers

have to make many decisions in developing a marketing mix that will satisfy their targetcustomers. 4owever all of the variables that make up the marketing mix can be reduced to

four basic categories.

#,O1K>T "0 #,O1K>T $=M=$S >ore benefit) the core benefit of biscuits is to

satisfy hunger of the consumer. 9asic product) in the second level the basic product isbiscuits. =xpected product) the consumers expect the product to have a good taste and also

give nutrition. Augmented product ) parle biscuits increase a personNs energy levels. This is not


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always expected by the consumers and hence exceeds customerNs expectations. #otential

product) in the future parle could come up with different products such as a snack which could

be a combo of chocolate and biscuit. >lassification of products 9ased on tangibility) #arle

biscuits are tangible i.e. one can see and touch them. 9ased on functional life) #arle biscuits

are consumables since biscuits form apart of food and have a short life. 9ased on price and

2uality) most of #arle biscuits such as #arle)5 "onaco ;rack jack are mass products but afew #arle biscuits such as #arle hide and seek and "ilano are premium or prestige products.

9ased on utility) #arle biscuits are convenience goods. They are staples since they are boughtby consumers regularly. Also they are partly impulse products. >onsistency The product

consistency generally depends on 3 parameters. '% #roduction *% 1istribution 3% >onsumer

end)user.

The production process of every parle biscuit follows some basic ingredients like

wheat flour vegetable oil inverted syrups skimmed milk powder etc. then depending uponthe product extra ingredients are added for e.g. in "onaco there might be an extra amount of

salt put in to give it that prominent salt taste to hide & seek chocolate chips are added. =tc.

#arle uses the same distribution channels for selling all its products under the biscuit categoryi.e. 'st *nd & the 3rd level of the distribution channels. The basic end use of all parle

products remains the same P eating itNs imply to satisfy hunger. #roducts like parle)g may also

be consumed for the intake of high glucose levels for immediate strength & energy.

POSITIONING ANALYSIS OF PARLE

Positioning Strategy of PARLE

Positioning strategy

Parle is positioned in the minds of people as a value for price product and

also as a low-priced product.

Diferentiation strategy

For Parle-G the company has used channel and image dierentiation tools.Parle-G !y far has the most intensive distri!ution coverage as comparedto any other !iscuit company in "ndia. Also the name PARLE has an imagethat generates respect and a !elief of good #uality in the minds of the!uyers.

A product$s position is the way the product is de%ned !y the consumers

on important attri!utes& it is the place the product occupies in consumers$

minds relative to competing products. "t involves implanting the !rand$suni#ue !ene%ts and dierentiation in customers$ minds.

'o simplify the !uying process( consumers organi)e products( services(

and companies into categories and *position+ them in their minds. Aproduct$s position is a comple, set of perceptions( impressions( andfeelings that consumers have for the product compared with competingproducts.


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onsumers will position products with or without the help of mareters. Somareters must plan positions that will give their products the greatestadvantage in selected target marets( and then must design maretingmi,es to create these planned positions.

B. A##$0>AT0O: O6 #O,T=,+S 8 6O,>=S O6 #A,$=

B.' A##$0>AT0O: O6 9>5 "AT,0 O6 #A,$=


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Q /G 0A'R"1 23S"S'S 2F 4 A'EG2R"ES5

9>5 "AT,0 The 9oston consulting 5roupNs portfolio matrix allows a firm to visuallydisplay information about each of its. The 9>5 matrix has as its axes the market growth

rate !9roken into high and low growth% and the relative market share as compared to the

largest competitors !high and low relative market share%. The 9>5 matrix method is

based on product life cycle theory that determine the product portfolio of a unit which

contains both high growth product & low growth product having * 1imensionsG "arket

share & "arket growth. 9>5 "AT,0 >O:S0STS O6 E >AT=5O,0=S

Q 1.STARS:

Q (High growth & High market share)

As per the company$s survey( Parle G is touching the pee of success 6

therefore comes under the S'AR category there!y the o. can invest a large

sum for its upliftment

Q 2.CASH C!S

Q ("ow growth# High market share)

Q Pro%ts 6 cash generation should !e high due to its Low growth( the

investment needed to !e Low to eep Pro%ts 7igh

Q 'he products lie rac8ac( parle 0arie( hide 6 see comes under this

category

Q $.%'ST *AR+:

Q (High growth# "ow *arket share)


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Q "t has worst cash characteristics !ecause of 7igh demands 6 Low

returns due to Low maret share maes the o. to sell o 6 deliver

cash.

Q Products lie 721( 3"09"3 9REA0S G2L:( PARLE ;S' 7"PSonclude with :2GS as they need to !e :ivested !ecause they are doing nogood for the o. 6 have remained as an lia!ility.

SWOT ANALYSIS

SWOT analysis is the firm should identify its internal Strengths !S% and Weakness !W% and

also examine external Opportunities !O% and Threats !T%. Strength Weakness Opportunity

and Threat are the four tools for a individual or group or organiation to grow improve andpolish itNs skill. #arle #roduct $td. has been highlighted below which covers all the criticality

of the projectG

Strengths

#arle 9rand 1iversified product range =xtensive distribution network. $ow and mid pricerange >atering to mass 9etter understanding of consumer psyche

Weakness

1ependence on retailers & grocery Stores for displaying diversified #arle #roducts on shelf

induce impulsive buy.

Opportunities =stimated annual growth of *(F $ow per capita consumption >hanging

consumer preference 0ncreasing demand for sugar free 1iet biscuit

Threats

4ike in cost of production due to hike in raw material cost. 0ncrease distribution cost. $ocal

bakery product . =ntry of various new entrants.

Documents

Brand Project on - Parle Acknowledgement