Parle Products Industrial Visit Report

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GLS School of Management IMBA

An Industrial Visit Report on

“Confectionary Industry with focus on Parle as Case Study”

In partial fulfillment of the requirements of Industrial Visit Project in the

Integrated Masters in Business Administration Programmed of School of

Management

GLS University

School of Management

IMBA Semester 2

Batch 2015-2020

Submitted to:

Prof. Neelam Purey

Prof. Chinmay Gandhi

Submitted By

Kushal Doshi (201500510010016)

Supan Maniar (201500510010044)

Shivang Pathak (201500510010067)

Jeet Shah (201500510010079)

Jinam Shah (201500510010080)

Kushal Shah (201500510010081)

Rohan Shah (201500510010120)

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TABLE OF CONTENTS

ACKNOWLEDGEMENT ....................................................................................................... 5

Institute’s Certificate ............................................................................................................... 6

Students’ Declaration .............................................................................................................. 7

Chapter-1 .................................................................................................................................. 8

Confectionery industries ......................................................................................................... 8

1.1 An overview of the industry ............................................................................................. 8

1.2 Major Players .................................................................................................................... 8

1.3 Major Products ................................................................................................................. 9

1.4 Contribution towards the gdp ......................................................................................... 10

1.5 Growth of the industry .................................................................................................... 10

1.6 Trends in the industry ..................................................................................................... 11

1.7 Packaging in the industry ............................................................................................... 11

Chapter-2 ................................................................................................................................ 12

Parle Products Pvt. Ltd. ........................................................................................................ 12

Introduction to the company ................................................................................................. 12

2.1 Journey of the company .................................................................................................. 13

2.2 Future of the company .................................................................................................... 13

2.3 Marketing of the company .............................................................................................. 13

2.4 Production process of the company ................................................................................ 14

2.5 Plant layout of the company ........................................................................................... 16

2.7 Human Resource Management of the Company ............................................................ 16

2.9 Research & Development department of the Company ................................................. 17

CHAPTER 3 ........................................................................................................................... 18

An Industrial report on Confectionary Industry with focus on Parle as Case Study ..... 18

3.1 Introduction: ................................................................................................................... 18

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3.2 Parle and its challenges: ................................................................................................. 18

3.3 Infrastructure: ................................................................................................................. 18

3.4 Availability: .................................................................................................................... 19

3.5 Market:............................................................................................................................ 19

3.6 Awards: ........................................................................................................................... 19

3.7 Public Relation: .............................................................................................................. 19

3.8 SWOT ANALYSIS:- ...................................................................................................... 20

STRENGTHS: .................................................................................................................. 20

WEAKNESS: ................................................................................................................... 21

OPPORTUNITIES: .......................................................................................................... 21

THREATS: ....................................................................................................................... 22

Chapter 4 ................................................................................................................................ 24

Research Methodology .......................................................................................................... 24

Objectives of the Study......................................................................................................... 24

4.1 Research Design ............................................................................................................. 25

4.2 Sources of Data ............................................................................................................... 25

Primary Data Collection Method:..................................................................................... 25

Secondary Data Collection Method .................................................................................. 25

4.3 Data Collection Method.................................................................................................. 25

4.4 Sampling method ............................................................................................................ 26

4.5 Sampling frame............................................................................................................... 26

4.6 Data collection Instrument .............................................................................................. 26

4.7 Beneficiaries of the Study............................................................................................... 27

4.8 Limitations of the study .................................................................................................. 27

Chapter 5 ................................................................................................................................ 28

Data Analysis and Interpretation ......................................................................................... 28

5.1 Questionaaire .................................................................................................................. 28

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5.2 Analysis and Interpretation ....................................................................................... 29

Q1. Which state do you live in? ....................................................................................... 29

Q2. What is your age group? ............................................................................................ 30

Q3. How often do you purchase confectionery items? ..................................................... 31

Q4. Which company from the below options would you prefer while purchasing a

confectionery item? .......................................................................................................... 32

Q5. On what scale would you prefer health while purchasing a confectionery product? 33

Q6. What are your preferred confectionery products? ..................................................... 34

Q7. What type of Biscuit do you prefer? .......................................................................... 35

Q8. What factor affects your choice while buying a Biscuit? .......................................... 36

Q9. Do the price of a product affect your purchase option? ............................................. 37

Q10. Does the packaging of a product affect your purchase option? ............................... 38

Q11. Which pack do you prefer the most while purchasing Biscuits? ............................. 39

Q12. Which of the following Parle product attracts you the most? ................................. 40

Q13. Do Parle products satisfy your hunger? ................................................................... 41

Q14. While purchasing Parle biscuits what do you have in mind? .................................. 42

Q15. At what time do you prefer to have Parle biscuits? ................................................. 43

Q16. How much will you spend if you want to buy a Parle product? .............................. 44

Q17. How will you eat Parle biscuits? ............................................................................. 45

Q18. How much will you rate Parle Products? ................................................................ 46

Chapter 6 ................................................................................................................................ 47

Findings ................................................................................................................................... 47

Chapter 7 ................................................................................................................................ 48

Conclusion .............................................................................................................................. 48

Bibliography ........................................................................................................................... 49

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ACKNOWLEDGEMENT

“There is a great soldier, scientist, philanthropist and many great person we all have

witness because of their teachers lead them to have perfection.”

The project report and this practical learning of Industrial Visit cannot be possible for us to

understand if we don’t get help of a few person.

There are countless individuals who help us in making our journey of life successful and

enriching. As we resume towards the end of our Industrial Visit, we take this opportunity to

thank all those individuals who have contributed in one way or the other in making this journey

of ours successful and a great learning experience which will help us in our future endeavours.

First and foremost, I would like to thank my mentor, Prof. Chinmay Gandhi and Prof. Neelam

Purey, course conductors at GLS School of Management IMBA, for not only providing us with

invaluable advice and guidance to carry on with our project work, but also motivating us

throughout semester.

I would like to express my sincere gratitude to Prof. Amish Soni, Prof. Gurmeet Singh, for their

guidance and support. They supported us continuously with their valuable knowledge and

experience in the successful completion of the project.

Supan Maniar (201500510010044)

Shivang Pathak (201500510010067)

Jeet Shah (201500510010079)

Kushal Doshi (201500510010016)

Kushal Shah (201500510010081)

Jinam Shah (201500510010080)

Rohan Shah (201500510010120)

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INSTITUTE’S CERTIFICATE

It is to certify that this Industrial visit Report Titled “An Industrial Visit Report on

Confectionary Industry with focus on Parle as Case Study” is the bonafide work of “Supan

Maniar (201500510010044); Shivang Pathak (201500510010067); Jeet Shah

(201500510010079); Kushal Doshi (201500510010016); Kushal Shah (201500510010081);

Jinam Shah (201500510010080); Rohan Shah (201500510010120)” who carried out the

project under our supervision. We also certify further, that to the best of my knowledge the

work reported herein does not form part of any other project report or industrial visit project

on the basis of which a degree or award was conferred on an earlier occasion on this or any

other candidate.

Signature of the Faculty Guide

Prof. Neelam Purey

Prof. Chinmay Gandhi

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STUDENTS’ DECLARATION

We, Supan Maniar (201500510010044); Shivang Pathak (201500510010067); Jeet Shah

(201500510010079); Kushal Doshi (201500510010016); Kushal Shah (201500510010081);

Jinam Shah (201500510010080); Rohan Shah (201500510010120), hereby declare that the

report for Industrail Visit entitled “An Industrial Visit Report on Confectionary Industry

with focus on Parle as Case Study” is a result of our own work and our indebtedness to other

work publications, references, if any, have been duly acknowledged.

Place:

Date:

Name and signature of each students:

Supan Maniar

Shivang Pathak

Jeet Shah

Kushal Doshi

Kushal Shah

Jinam Shah

Rohan Shah

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CHAPTER-1

CONFECTIONERY INDUSTRIES

1.1 AN OVERVIEW OF THE INDUSTRY

The confectionery industry of India which has emerged as one of the largest and well developed

food processing sectors of the country was ranked as 25th largest industry of the world in the

year 2009. Several multinational companies of the world have invested in this industry of India

changing the face of the industry and the credit of this goes to the growing Indian economy and

the Liberalization act of 90’s.

Due to the MALL CULTURE and CHANGING LIFESTYLE as well as the BOOM in the

country’s economy, there is a vast growth in consumer spending and the confectionery industry

has also been benefited by it. All of these essential components has led to rapid changes of the

CONFECTIONERY INDUSTRY of INDIA in terms of trends and consumer behaviour

patterns.

Creating awareness among the buyers through PROMOTIONAL CAMPAINS and

ADVERTISEMENTS, the entry of several Multi-National companies by launching new

products at affordable prices has not just increased the competition but has also increased the

Per-Capita-Consumption. Indian Confectionery Market has been growing since last few years

and the key factors are trend of gifting confectionery products and sales in the rural market.

The confectionery industry of India has been divided into three main segments such as:

1. Gum Market

2. Chocolate

3. Sugar Confectionery

Chewing Gum market, one of the sub-segments of Indian Confectionery Industry is expected

to grow at the fastest rate in terms of its value in the upcoming years.

1.2 MAJOR PLAYERS

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There is no company which permanently rules the market due to enough competition being

involved. The market shares are being captured upon by different industries of India. Though

the international companies are having a good amount of the market to share, but the Indian

industries or the domestic players have found a great share in the market .Talking about the

MAJOR or KEY PLAYERS of this industry and the brands whose products have set a trend

and changed the face of the CONFECTIONERY INDUSTRY of India are:

1. Parle Products Pvt. Ltd.

2. Perfetti Van Melle India Private Limited

3. Godrej Hershey Limited

4. Nestle India Ltd.

5. Candico India Ltd.

6. Cadbury India Ltd.

7. Wringely India Pvt. Ltd.

8. Lotte India Corporation Ltd.

9. Britania India Pvt. Ltd.

10. Indian Tobacco Company Pvt. Ltd.

1.3 MAJOR PRODUCTS

A Confectionery Industry can always be related to a Bakery because they have many products

in common, the KEY PRODUCTS of a Confectionery Industry are:

1. Biscuits

a. Parle-G

b. Monacco

c. Parle Marie

d. Britania Marie

e. Parle Bourbon

f. Britania Bourbon

g. Hide & Seek (Parle and Britania)

h. Hide & Seek Bourbon

Etc…

2. Sweets

a. Londonderry

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b. Melody

c. Mango Bite

d. Eclairs

e. Polo

f. Alpenlebe

g. Poppins

h. Dairy Milk

Etc…

3. Snacks

a. Wafers

b. Namkeen

c. Fulltoss

d. Munchies

e. Cheeselings

f. Mast-Cheese

g. Cheetos

h. Chocos

Etc…

1.4 CONTRIBUTION TOWARDS THE GDP

The size of Global processed confectionery industry is estimated to be valued around

USD80Billion and accounts for 3/4th of the global confectionery sales. Besides its large size

only 6% of the processed confectioneries are traded across borders compared to the 16% of

major bulk agricultural commodities. Indian Confectionery Industry is large and is estimated

to be valued of USD1.3Billion and is likely to grow at over 10%, on the basis of an expected

GDP growth rate of 8% to 8.5% Per Year.

1.5 GROWTH OF THE INDUSTRY

The Indian Confectionery Industry had a market worth of USD1.3Billion in the year 2013

and is expected to grow by 71% to reach USD2.2Billion in the year 2018.

The Economic growth and development of the middle class families in India has resulted in

the rising of disposable incomes which has resulted in the growth of consumption of

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confectionery products by 45% while ½ of the market of confectionery market is consumed by

chewing gums.

1.6 TRENDS IN THE INDUSTRY

In the last couple of years the trends in confectionery industry of India has changed a lot.

Confectionery companies of India have not just improved their products but also have

innovated them in a new way. For example Parle has combined the biscuits HIDE & SEEK

and BOURBON making an unbelievable combination of HIDE & SEEK BOURBON.

These industry have hired the most reputed Actors and Actresses of India to be their Brand-

Ambassadors. For example, Hritik Roshan for Parle Hide & Seek, Ajay Devgan for Hajmola

etc… and these Actors/Actresses leave no chance to promote their respective brands at any

occasion, whether they use them in their movies or get the movie co-produced by those brands.

1.7 PACKAGING IN THE INDUSTRY

Packaging in the confectionery industry has been evolving a lot, before a decade or two, the

confectionery products were hand wrapped in wax papers but now with the evolution of

technology and its uses in the industry, packaging has changed from merely being hand

wrapped in wax papers to automatically being wrapped in polythene wrappers by automated

machines.

We all have been consuming Parle-G, the most selling product of Parle Products Pvt. Ltd. For

years and the above example can be applied to it, Parle-G in the beginning was hand wrapped

in wax papers but now is packed using automated machines in thin polythenes.

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CHAPTER-2

PARLE PRODUCTS PVT. LTD.

INTRODUCTION TO THE COMPANY

The Parle Industries was founded at 1929 in Mumbai. With great efforts of Mohanlal Dayal

Chauhan family the Parle Industries came into existence and today it has become one of the

greatest manufacturing confectionery company in India.

Parle Industries had been into this business since last 80 years and still their existence is

unrevealed. The Parle Company gained its name through the due to the largest selling biscuits

named “Parle-G”. Due to its consistency in the taste quality and nutrition Parle-G has

constantly been attracting the costumer since last 8 decades. Parle-G is one of the product of

the Parle Company which has been serving the rural areas from the time it had been introduced

in the market.

The main advantage of the Parle Company is that the company has a good distribution channel

in the overall country. The market share of the Parle Company is 40% in the market of biscuits

and 15% in the confectionery market all over India. Even at remote areas one would find a

Parle biscuit. It has taken years for Parle Company to establish this network. Parle Company

started just one salesman in Bombay and some few agents in other cities. Today the company

has almost as many as 33,00,000 outlets in the country.

The efficiency of the company is seen in its every step till the product reaches the retailers.

Starting from husking the wheat and melting the sugar and finally delivering the product the

company takes special care of each and every step. The largest confectionery plants of the Parle

company are in Bahadurgarh, Haryana and Neemrana located in Rajasthan of India.

Apart from producing biscuits and confectionery items in its own plant Parle has also many

contractors who are manufacturing biscuits and confectionery items for Parle Company. There

are in total 75 manufacturing units which are on contract bases. Parle’s product has been known

all over the country. It has become the household name for the families in the country. The

product is eaten by all people considering from kids to the adults and even the old people.

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2.1 JOURNEY OF THE COMPANY

The Parle company was founded by the Chauhan family and Mohanlal Dayal in the period in

which Britishers were ruling India. In 1929 the company inaugurated its premises and started

the production of biscuits and other confectionery items. In 1929 Parle made its entry into the

confectionery market and even after 10 years in 1939 the company was able to capture the

market with all variety of products available in the market. After the year 1949 the company

got a great turn due to the independence of the country. Till today the company has been

attracting a large number of consumers and it will still attract more so.

2.2 FUTURE OF THE COMPANY

Parle Company has from beginning a bright future because it was established in a period when

there was increasing demand of the confectionery items. Today, the group brand manager

Krishna Rao said the company is looking to establish more and more outlets. The manager also

added that it would like to increase still more than 7 million outlets in the coming five years.

2.3 MARKETING OF THE COMPANY

The term marketing mainly refers to the combination known as “4P’s of Marketing”, which

are:

1. Product

2. Place

3. Promotion

4. Pricing strategies

These 4P’s have been designed to mutually satisfy the exchanges of a target Market. A

marketing manager can follow as many principles of marketing that he wants but a marketing

strategy can always be reduced to these 4P’s.

1. Product: Parle has always been creating products that satisfies the hunger of a

customer, the most famous products of this company are its biscuits, it just doesn’t

perfect its production process but also takes care of the quality and its packaging, over

the decades Parle-G has been the most prioritized product of the company.

2. Place: Taking the example of Parle-G, this prioritized product of the company is

available in the most remote areas as well as it is also available in the villages which

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just has a strength of 1500 citizens. This is possible only because of the company’s

distribution strategy and distribution network which has been developed over 87 years

of the company’s existence. Parle has over 1500 distributors retailing it to more than

4,50,000 outlets directly as well as indirectly. Parle also has over 31 depots and C&F

agents supplying goods to the wide distribution network.

3. Promotion: Parle has always been mainly focusing on advertising through press ads

and mentioning about the basic benefits of energy and nutrition.

a. Every Year Parle holds day fairs at Venues such as 5-Star hotels where it

organizes family competitions and Parle products are given away.

b. Parle also produced my childhood favourite TV series Shaktimaan which was a

great commercial as well as beginning of superhero TV series in India.

c. Parle’s promotion campaign ‘Mera Sapna Such Hoga’ was the biggest

marketing campaign it had ever made which had a run of more than 6 Months,

the campaign talked about fulfilling the dreams of children.

d. Parle’s another promotion campaign, ‘Parle Saraswati Vandana’ was started in

the year 2002 as an inter-school contest in West-Bengal is still a going on

campaign with increasing participation every year.

e. Parle’s ‘Parle Golu Galata’ campaign didn’t had great runs as ‘Mera Sapna Such

Hoga’ and ‘Parle Saraswati Vandana’ but still was considered to be a success.

4. Pricing Strategies: Parle has adopted a unique pricing strategy that has always

penetrated the market. i.e. low prices and great products capturing the largest share in

the Indian Confectionery Market. Profit margin for Parle’s distributors is 4% where for

its retailers is 10-12% which varies due to different prices in different states. But still if

we consider Parle-G, whose packets are available with retailers for ₹5/- only, Retailer

gets ₹0.50/- per packet while the distributor only gets ₹0.20/- per packet, still they

haven’t discontinued the production of this famous product.

2.4 PRODUCTION PROCESS OF THE COMPANY

Like every confectionery industry Parle also has a unique and demanding specifications for its

production:

Stephen MixerRotary MouldCooling ConveyerLaminatorBiscuit Baking

OvenRotary CutterCounting UnitMultipack Wrapping MachinePoly BagsSealing

MachineTapping Machine

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1. Stephen Mixer: The Stephen Mixer is an ideal component which automatically feeds

the downstream make-up equipment for biscuits, rolls, etc…

2. Rotary Mould: The structure of a rotary mould is corrosion proof having stainless steel

and an ability to mould 7000 biscuits every minute.

3. Cooling Conveyer: The cooling conveyer helps the hot biscuit which has just came out

of the Rotary Mould to freeze itself in the atmospheric pressure, the conveyer belt is

ideally 150ft long.

4. Laminator: Laminator helps to produce hard biscuits such as Krack-Jack, Laminator

helps to create a puffy pastry-like structure, which is important for the products

structure and its sales success

5. Biscuit Baking Oven: A biscuit baking oven is ideally made of stainless still with a

steam tight oven divided with equal radiators. This also has an inspection door which

checks for the minute particles present in the biscuit, if any such particle is found, the

conveyer belt automatically stops and doesn’t resume until the particle is removed.

6. Rotary Cutter: This part of the production process is not available at all the production

factories as an integrated Rotary Cutter is already attached with the Rotary Mould.

Rotary Cutter is generally used to print fine designs on the product.

7. Counting Unit: The counting unit generally checks whether the process of producing

a biscuit is going fine or not, it checks whether the biscuits have the specified weight

or not, it checks 100 grams for 16 Biscuits.

8. Multipack Wrapping Machine: A multipack wrapping machine has a fixed plastic

role attached to a roller, this wrapper is fixed in machine and the wrapping is done by

a four heater roller which is fixed in the machine, the machine heats up the roller so that

the plastic is wrapped properly over the product. During this process a jaw cutter weighs

the biscuits and cuts of the plastic at the marked edge to get the perfect packing of

specified weight i.e. 100gms, 150gms, 200gms, etc…

9. Polybags: Polybags contain specified amount of Parle products in one plastic bag. This

process is done by the workers who forward the Polybag to a sealing machine.

10. Sealing Machine: A sealing machine has a heater rod which seals the packet on the

conveyer belt itself.

11. Tapping Machine: Six Polybags are placed in one corrugated box which is passed

through the tapping machine, where the boxes are packed and then sent through a long

diversion conveyer belt, this diversion conveyer belt ends at the dispatch section where

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36 such boxes are arranged on one pallet, from where they are sent to

DistributorsDealers all over India and the world.

2.5 PLANT LAYOUT OF THE COMPANY

Parle has set an essential needed requirements for setting up a plant, which if not fulfilled it

discontinues the production contract, following is the essential plant layout for manufacturing

Parle products or having a production contract with Parle:

2.7 HUMAN RESOURCE MANAGEMENT OF THE COMPANY

The company always focused on the development of the employees through their various

development methods. The turnover of the company is also very less. Apart from their total

turnover of ₹4000/- crore the company does not compromise in the terms of employee

engagement and other such activities.

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There are some HR techniques which are adopted by the company namely 5S, Kaizen, SQC,

TQM, Poka-Yoke. The abbreviation of the 5s is

1. Seiri (Segregation)

2. Serton (Neatness)

3. Seiso (Cleaning)

4. Seiketsu (Standardization)

5. Shitsuke (Discipline)

Whereas Kaizen means continuous improvement or change to become good, TQM is a business

related strategy aiming at betterment in the product through best quality in the market in all the

chains which it performs until the product reaches the consumer and the last Poka-Yoke means

the company focuses on the development of the product which is error free.

The workers working in the company agree to these techniques are more than 60% as they

believe this are good techniques for any company to follow. Even though there has been the

techniques which are very useful the workers had some issue with the machines as they did not

provide excellent items due to wastage of the product. Apart from this problem the company

has very well collaborated with the workers working in the premises and all of them are well

aware about the production technique.

2.9 RESEARCH & DEVELOPMENT DEPARTMENT OF THE

COMPANY

The company has served the demand of the nation’s consumers to a great extent but when the

question of research and development arises Parle does not compromise with the same. Parle

often comes up with a new product till it completes one decade or even less than that. Parle

industries are very well aware about the importance of the research and they knew their demand

would still increase in the near future.

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CHAPTER 3

AN INDUSTRIAL REPORT ON

CONFECTIONARY INDUSTRY

WITH FOCUS ON PARLE AS CASE

STUDY

3.1 INTRODUCTION:

The market of Confectionery industries in India is very large. Parle Products Private Limited

dominate this confectionery industries. Parle Products came into existence in 1907. In 1880,

Late Mohanlal Dayal came in Mumbai for work from his village Pardi, in district of Surat.

Parle Products has been India's largest manufacturer of confectionery items. Parle Products has

been serving for more than 85 years. Parle Products is the maker of the world’s largest selling

biscuit, Parle-G. Parle holds 40% share of total biscuit market in India and 15% share of

confectionery biscuits in India.

3.2 PARLE AND ITS CHALLENGES:

Parle is very sensitive product in matter of price. The sales of Parle had seen high decline due

to increase in its price of just 50 paisa. The sales of Parle has suffered by its fake products like

Parle Jee and many more. This fake products tries to extract the market of Parle. The serious

competitor of Parle-G is Tiger biscuit made by Britannia.

3.3 INFRASTRUCTURE:

Parle has many manufacturing units in India. First Plant of Parle Products was in Mumbai. The

plant of Parle Products in Kutch is the largest Parle Product plant in India. Other than this Parle

Products has various plant like Neemrana in Rajasthan, Bangalore in Karnataka, Khopoli in

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Maharashtra and Bahadurgarh in Haryana. Parle also has various manufacturing units on

contract basis like Sweety Industries.

3.4 AVAILABILITY:

Outside India, Parle Products are also available in United States of America, United

Kingdom, Europe, Singapore, Canada and many other countries. The parle products of 80

grams is sold at lowest price at 15 cents at Indian stores and at 40 cents at other retailers.

3.5 MARKET:

According to a report released in 2011, Parle-G is the largest selling biscuit in world. Parle-G

contributes about 70 % market share in glucose biscuit category in India. It is followed by

Britannia Tiger up to 18% and ITC’s Sunfeast up to 9%. Parle-G is estimated to be worth over

20 Billion Indian Rupees (2,000 Crores Indian Rupees). Parle-G contributes more than 50% of

company’s turnover.

3.6 AWARDS:

Parle Products is the winner of 111 Gold awards, 26 Silver awards, and 4 Bronze awards at the

Monde Selection Awards, the global standard for quality in Food category.

3.7 PUBLIC RELATION:

Parle has done many enhancing public relations. Some of them are as follows:

In 1997, Parle-G sponsored the tale serial of Indian Superhero, named Shaktimaan that went

on huge success and became very popular especially among children.

In 2002, a national level promo was made by Parle called ‘Parle-G Mera Sapna Sach Hoga’

which talks about fulfilling the dreams of children. This promo was run for a period of 6

months.

Parle Saraswati Vandana, is an inter-school contest based on the Saraswati Puma celebrations.

It was started in the year 2002. Since it started in 2002, the number of students participating

each year had increased.

Reason of Parle-G Maintaining It’s Price of Rs.4.00 for the Last 25 Years?

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• Low profit margin.

• Decrease in weight per biscuit.

• Bulk purchase of raw material.

• Reduced wastage - 1% of the 115 tons

• Increased productivity.

• Availability in remote places.

• Avoid sophisticated packing

• 100g pack costing Rs 4 has net weight of 93.5g from Jan 2008

• Parle-G has seen the variation in sales due to increase in price.

3.8 SWOT ANALYSIS:-

STRENGTHS:

(1) Low price as compared to competitors:

In the case of price, its known to everyone that parle has the lowest and the best affordable

price, in comparison to any other biscuit. The parle is giving competition to the other companies

through this best feature of it that is price.

(2) An experienced team of sales and marketing executives:

Parle selects the best executives for sales and marketing .The person possessing right

qualifications gets the right job. And the parle is one of the oldest company so has a lot

experience in the field of it and so it has the best experienced team of sales and marketing.

(3) Largest distribution system:

The extensive distribution network, built over the years, is a major strength for Parle-G.

Parle-G is available to consumers, even in the most remote of places. 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 and retailers. Additionally, there are 31

Depots and C&F agents supplying goods to a wide distribution network.

(4) Wide coverage area of manufacturing units:

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Parle Products have been demanded very frequently and so there is a wide coverage area of

manufacturing units as to meet up the supply. One of the major manufacturing unit in Gujarat

is in nadiad.

WEAKNESS:

(1) Breakage of biscuits while delivering to retailers:

Sometimes while delivering biscuits to the retailers there is damage of biscuits, this also

happens due to poor roads of villages sometimes .this decreases the goodwill of the Parle. But

nowadays this is improving and this problem is getting sorted out.

(2) No proper replacement system for broken biscuits to retailers:

There is no proper replacement system for broken biscuits to retailers. Company should start a

program for the loyal retailers and wholesalers to reduce their complaints by providing

Timely supply and replacement. This will help in increasing their sales.

(3) Improper and irregular supply:

There is improper supply of products to retailers and distributors. The replacement of the

damaged and expired biscuits should be prompt and without any hassles, so that retailer can be

saved from the loss of the expired and damaged goods.

(4) Poor packaging in family pack of glucose biscuits:

One of the major problem with parle is its packaging, it is said the packaging of the product

gives the first impression of the product and the company. Also the layer of packaging is very

thin so it’s preferable to have a double layer packaging. But on this issue also company has

improved a lot. The company has an attractive packaging in the recently launched products.

OPPORTUNITIES:

(1) Rising demand for innovative packaging in packaged foods:

Parle should adopt new innovative packaging techniques. Due to proper packaging the

Quality of the biscuits will also be retained well and the product damaging chances get reduced.

(2) Retaining loyal retailers or wholesalers:

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Parle can motivate retailers and wholesalers with good incentives and programs. The Parle

Company should maintain the loyal retailers and wholesalers since one of the most important

Strengths of the company is its wide spread distribution network

(3) New innovative promotion techniques:

Parle is weak in Eastern India and Tamil Nadu. To cover up this loop hole, they are giving

Scholarships to children in these states to cover up the corporate equity which is less than

Britannia in these states. Also this is a part of CSR and due to this the company’s brand value

goes higher and higher.

(4) Innovation and Rural Market:

Innovating new products, especially non-glucose type biscuits, and its test marketing in the

Rural market with its existing distribution channel would help them establish a new market in

Rural India. This would be also helping to have development in the rural sector of India.

THREATS:

(1) Highly advertised brands such as Britannia:

One of the major competitor of the Parle Company is Britannia. Though parle has one of the

best biscuit in the market but as said earlier the packaging and advertising reflects your brand.

And in this case the Britannia is further than Parle.

(2) Ever increasing competition from multinationals and local companies:

Due to other company’s strong marketing skill giving a strong competition to Parle. Other

multinational new companies are entering the market and grabbing attention as they are coming

up with brand ambassadors such as Shah Rukh Khan, Hritik Roshan, and Rahul Dravid.

(3) Increase in sale of cheap local bakery products:

There are local retailers who have increased their sale and distribution system giving

competition to Parle. Also their products are comparatively cheaper than Parle products so this

is a threat to the company.

(4) Emerging substitutes like wafers, snacks and toast:

Earlier it was just the biscuit which was available as snacks item. Now there are many other

Products like wafers and toast. Thus company is facing threat due to the new substitute

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Products. Also people prefer more wafers, chips, nachos etc. Thus it is threat for the Parle

biscuit product. Parle has also started to go with new trends and has launched Parle wafers.

Full Toss, namkeens etc.

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CHAPTER 4

RESEARCH METHODOLOGY

OBJECTIVES OF THE STUDY

1) To gain more knowledge about confectionery industries.

2) To know the market share of confectionery industries.

3) To find out the consumer preferences in confectionery industries.

4) To find out the major competitor of PARLE.

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

6) To make recommendations to improve the services given by PARLE.

7) To know opportunities in confectionery market.

8) To know which company focus more on health issues.

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4.1 RESEARCH DESIGN

Our research design is prescriptive which will provide you the most information which most

of you may have not been familiar with. From our research you will come to know that Parle

Company is not just a simple biscuit company. It has a lot more.

4.2 SOURCES OF DATA

Like everyone even we had obtained data from two methods:

1. Primary Data Collection Method

2. Secondary Data Collection Method

PRIMARY DATA COLLECTION METHOD:

Our primary data was mainly collected by visiting the Sweety Industries Pvt. Ltd. An

operational manufacturing unit at Nadiad and by getting the questionnaire prepared by being

filled by the people who consume confectionery products at regular basis.

SECONDARY DATA COLLECTION METHOD

Our secondary data was collected from various websites hosted on the internet as well as from

printed materials such as Advertisements, Newspapers, Magazines etc…

4.3 DATA COLLECTION METHOD

We have used convenient data collection method in simple words in this type of data collection

method where the first available primary source of data will be used for the survey and

additional requirements. There is no prior inclusion for identifying the subjects. It’s one of the

best method of data collection.

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A basic simple example of this method can be stopping random persons from the street and

asking questionnaire questions. But nowadays most of the persons are connected through

internet so the best way for the survey is online questionnaire .So we have made a survey

through passing on the online form.

4.4 SAMPLING METHOD

Simple Random sampling method: this method is the most pure and the most widely used

sampling method. In random sampling each member of population is equally like to be chosen

as a part of sample. All gets equal chance for the survey. We have used this method but not

personally for each member but taking help of the social network we have passed survey forms

to many random peoples and conducted the survey.

4.5 SAMPLING FRAME

It is a list of items or people forming the population from which a sample is taken.

Our list for the survey was approximate 250 persons.

4.6 Data collection Instrument

Our data collection instrument was Google Forms, which enabled us to get it filled not only

from the people of India and its various stated but it also enabled us to get in touch with the

people in foreign countries and get an idea about their thinking of the Indian Confectionery

Industry.

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4.7 BENEFICIARIES OF THE STUDY

The persons who were the part of the survey came to know about the company more

and more.

By doing research we were also beneficial as our knowledge about the company has

increased.

Parle Company is getting beneficial as more and more persons came to know about its

actual profile.

4.8 LIMITATIONS OF THE STUDY

As we all know the research study takes a long time and there has to be many data

collected so one of the major limitation was time constraint.

Identifying the proper authentic source of the data was actually a big problem.

May be sometimes we receive improper and irrelevant answers in the questionnaire

survey.

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CHAPTER 5

DATA ANALYSIS AND

INTERPRETATION As stated in the previous chapter we used Convenience sampling for our research on the

Confectionery Industry by the means of Google Forms and the following were the results which

we found but before we give our interpretation we have also mentioned the questions which

we had asked:

5.1 QUESTIONAAIRE

1. Which state do you live in?

2. What is your age group?

3. How often do you purchase confectionery items?

4. Which company from the below options would you prefer while purchasing a confectionery

item?

5. On what scale would you prefer health while purchasing a confectionery product?

6. What are your preferred confectionery products?

7. What type of Biscuit do you prefer?

8. What factor affects your choice while buying a Biscuit?

9. Do the price of a product affect your purchase option?

10. Does the packaging of a product affect your purchase option?

11. Which pack do you prefer the most while purchasing Biscuits?

12. Which of the following Parle product attracts you the most?

13. Do Parle products satisfy your hunger?

14. While purchasing Parle biscuits what do you have in mind?

15. At what time do you prefer to have Parle biscuits?

16. How much will you spend if you want to buy a Parle product?

17. How will you eat Parle biscuits?

18. How much will you rate Parle Products?

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5.2 ANALYSIS AND INTERPRETATION

Q1. WHICH STATE DO YOU LIVE IN?

Here is a detailed analysis from which places people have answered to the questionnaire

(the place here refers to the states). Most of the people have filled the questionnaire from

the state of Gujarat i.e. approximately more than 50 people, while there are some other

people from the states like Andhra Pradesh, Karnataka, Madhya Pradesh and other. The

simple conclusion from his data shows that Parle products or the confectionery products

are consumed everywhere in the world.

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Q2. WHAT IS YOUR AGE GROUP?

In this piechart, there are more of young people who are consuming the confectionery products.

The confectionery products are such items which are even purchased by a small kid and even

by an old man. Majority of the confectionery products are consumed by the young age group.

Here in this chart as well the percentage of young people that is 13 to 23 years is more than

any other age group. It can be concluded from this data that the confectionery product is

consumed by all age groups of people.

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Q3. HOW OFTEN DO YOU PURCHASE CONFECTIONERY ITEMS?

As shown in the above chart you can understand that when we asked people that how often do

the purchase confectionery items during a week, more than 40% people voted that they

purchase confetionery items thrice a week, thus we can assume that the per capita consumption

is more in the case of confectionery items. While almost 25% people have voted that they

consume confectionery items 4 times a week while combining 15% people purchase twice,

10% consume once as well as 5 times during a week.

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Q4. WHICH COMPANY FROM THE BELOW OPTIONS WOULD YOU

PREFER WHILE PURCHASING A CONFECTIONERY ITEM?

As it is clearly seen from the chart that more people are eager to buy parle products than

they prefer to go to any other brands of biscuits. It is seen that from the questionnaire

prepared, 42.6% of the people will purchase the Parle product including biscuits, toffees

and other items. From the above chart we can assume that the closest competitor of Parle

canbe Nestle and Britania but Sunfeast is not even near to the market capture of Parle.

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Q5. ON WHAT SCALE WOULD YOU PREFER HEALTH WHILE

PURCHASING A CONFECTIONERY PRODUCT?

Here as you can see, people prefer health to some extent while some people give much

importance to health while they are consuming any confectionery item. The scale shown

here is from 1-5 i.e. there are 10 people who believe that according to them the health does

not affect much and so they gave it the scale from 1-2, whereas there are some people who

think that health affects to some extent while consuming any confectionery product. More

than 30 people admit to more health when they purchase a confectionery product. In short

more people think that health affects much if any confectionery product is to be purchased

and consumed.

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Q6. WHAT ARE YOUR PREFERRED CONFECTIONERY PRODUCTS?

According to the survey done, people (consumers) are more interested in buying chocolates

among all other confectionery items and products. The next importance is given to the

biscuits which includes sugar-added, sugar-free and others. Among these type of biscuits

the selling of sugar-added biscuits is more than sugar-free biscuits because people like the

taste of sugar-added more than that of sugar-free.

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Q7. WHAT TYPE OF BISCUIT DO YOU PREFER?

According to our survey and the responses we got from our questionaaire we have came to

an conclusion that people prefer more biscuits which are of cookie type such as Hide &

Seek acquiring almost 44.3% of the market on which parle is focusing more right now. The

second best consumed biscuits are creamy such as Bourbon which occupy 23% of the

market, the other biscuits such as Sweet, Salty and Glucose have a market share of 10.7%,

9.8% and 12.3& respectively.

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Q8. WHAT FACTOR AFFECTS YOUR CHOICE WHILE BUYING A BISCUIT?

From our survey we found that almost 67% of the people buy a biscuit while having the

quality of the biscuit in their mind, the second most preferred choice while buying a biscuit

is its Flavour itself. From our survey we found that less people care about the availability,

quantity, and price of a product.

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Q9. DO THE PRICE OF A PRODUCT AFFECT YOUR PURCHASE OPTION?

People don’t consider the price of the biscuit while purchasing it, but when the question is

of a particular brand then they will obviously compare the prices of various brands. Nearly

40% of the people thought that they may affect by the price of the biscuit. It is most possible

that people do not refer to the price of the biscuits which are available to them at cheap

prices, but they will definitely check for the same if the price increases.

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Q10. DOES THE PACKAGING OF A PRODUCT AFFECT YOUR PURCHASE

OPTION?

Mainly consumer are eager about the quality of the biscuit they are going to purchase but

in some cases the packaging of the product also becomes important. Here as well majority

of the people that is more than 40% are interested in how the packaging of the product is

done. They are also interested in knowing how the finishing of the product is done. Some

people are not interested in knowing these things and so they just buy the product for the

quality and quantity it serves.

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Q11. WHICH PACK DO YOU PREFER THE MOST WHILE PURCHASING

BISCUITS?

From our survey we have found that almost 88% of the people buy a medium pack which

we can say that captures most of the markets attention due to the number of biscuits

available in the pack and the quality served in it while a small number of people buy a

medium and a small pack.

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Q12. WHICH OF THE FOLLOWING PARLE PRODUCT ATTRACTS YOU THE

MOST?

As we all know ParleG is the most selling biscuit in the world, the trend has changed people

are more moving towards the cookies which are manufactured by the Parle company. In

today’s world consumer are more interested in buying Hide & Seek than any other parle

product. As shown here 61.5% of consumers are willing to buy Hide & Seek and no other

Parle products.

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Q13. DO PARLE PRODUCTS SATISFY YOUR HUNGER?

So, the thirteenth question which we asked in our questionnaire was whether the parle

products satisfy you hunger? We found no surprise that 82% of the people voted that yes

parle products do satisfy our hunger.

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Q14. WHILE PURCHASING PARLE BISCUITS WHAT DO YOU HAVE IN

MIND?

Parle products are known for their taste and nutrition especially their biscuits. Biscuits are

such a product that they are more purchased for their taste than other things, next maybe

the nutrition which would be obtained from the biscuit. Almost 50% of the people are

purchasing the parle product because of the taste and rest of the people are purchasing for

other things such as nutrition, flavour or the reputation of the brand.

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Q15. AT WHAT TIME DO YOU PREFER TO HAVE PARLE BISCUITS?

From our survey we found that almost 50% of the people prefer to consume Parle biscuits

randomly while 27.9% people prefer to have as evening snacks and 21.3% people prefer to

have it in the morning while having their breakfast while only 1.6% people prefer to have parle

biscuits while having lunch.

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Q16. HOW MUCH WILL YOU SPEND IF YOU WANT TO BUY A PARLE

PRODUCT?

From our survey we found that almoost 39% people are ready to spend ₹16-20 to buy a parle

product while 37% people are ready to spend ₹11-15 to buy a parle product, while 23.8%

people are ready to spend ₹6-10 to purchase a parle product only 0.8% people are ready to

spend ₹1-5.

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Q17. HOW WILL YOU EAT PARLE BISCUITS?

Biscuits are such a product which can be eaten with anything. Parle products are also such

a kind of. Many people are eating Parle biscuits with milk early in the morning because of

the great taste that mixes with the milk and gives a good result. Almost half of the people

from the survey take it with milk.

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Q18. HOW MUCH WILL YOU RATE PARLE PRODUCTS?

Consumer in the market have rated the Parle biscuit in majority from 4 to 5 points. More

than 60 consumers are giving parle products good score. They are happy with what the

company is giving to the people in the market and is not more expecting much changes for

the same.

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CHAPTER 6

FINDINGS So what did we learn from our Industrial Visit programme and the Questionnaire we got filled

from the people?

1. Confectionery Industry of India is the 25th largest industry in the world.

2. The people from Age group 13-23 consume more confectionery products than other

age groups.

3. More than 40% of people purchase confectionery items thrice a week.

4. Parle has the biggest market share of consumption of confectionary items of 42.6%

market share.

5. People prefer health to some extent while some people give much importance to health

while they are consuming any confectionery item.

6. Chocolates are the most preferred confectionery item while sugar-added biscuits are the

second most consumed confectionery product.

7. Most preferred biscuits are cookie type biscuits.

8. Almost 67% of the people buy a biscuit while having the quality of the biscuit in their

mind.

9. People don’t consider the price of the biscuit while purchasing it, but when the question

is of a particular brand then they will obviously compare the prices of various brands.

10. Almost 88% of the people buy a medium pack.

11. In today’s world consumer are more interested in buying Hide & Seek than any other

parle product.

12. Almost 50% of the people are purchasing the parle product because of the taste and rest

of the people are purchasing for other things such as nutrition, flavour or the reputation

of the brand.

13. Almost 50% of the people prefer to consume Parle biscuits randomly.

14. Almost half of the people from the survey take it with milk.

15. Consumer in the market have rated the Parle biscuit in majority from 4 to 5 points

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CHAPTER 7

CONCLUSION

Like every company Parle also has the 4P’s of Marketing Product; Price; Promotion; Place.

These are all important aspects of marketing strategy. Marketing is not possible without these

4 Aspects. The way a product is marketed is known as Marketing Strategy. Sellers, retailers,

buyers, and wholesalers play an important role in these marketing mix. Hence, there is lot of

scope in marketing strategy. Parle Company had made huge profit by marketing their products

in India and in foreign countries.

It was concluded that Parle is the first preference of both the customers and retailers (Organized

and unorganized both) because of its price and brand image.

Amongst consumers across the world the Parle Biscuit brands, such as, Parle-G, Monaco,

Krack-jack, Marie, Hide & Seek enjoy a strong imagery and appeal. Which has resulted into

Parle-G being the “world’s largest selling biscuit".

Quality, health and great taste is symbolized by Parle. Constantly innovating and catering to

new tastes PARLE-G has built its reputation.

Parle Products Pvt. Ltd. is now lagging in services to retailers because of improper supply and

distribution in some areas and competitors taking advantage of these points. Parle Company

should take into consideration the opportunities and threats as discussed above.

This will help the company to maintain its brand image for long time.

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