A Project Report on Parle-g, A Brand Success

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A PROJECT REPORT

ON

PARLE-G,

A BRAND SUCCESS

SUBMITTED BY: SUBMITTED TO:

ROHIT REHAN (216) PROF. VIJENDRA DHYANI

SACHIN YADAV (218) FACULTY:

SAMREEN JABBAR (221) MARKETING

MANAGEMENT

SATYAM SIDDHARTH (223) (IMS GHAZIABAD)

SAURABH KHETWAL (226)

SHANTANU PANDEY (231)

INSTITUTE OF MANAGEMENT STUDIESC-238, BULANDSHAHR ROAD, LAL QUAN

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GHAZIABAD – 201009

INDEX

S.NO. CONTENTS PAGE NO.

1 Acknowledgement 3

2 Introduction 4 - 5

3 About The Company 6

4 Board Of Directors 7

5 Products Of Parle 8

6 Quality Of Parle 9

7 Marketing Strategy Of Parle 10

8 Marketing Mix Of Parle Products Limited 11 - 12

9 Major Competitors Of Parle Products Ltd 13 - 15

10 Questionnaire 16 – 23

11 Bibliography 24

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ACKNOWLEDGEMENT

Project work is never the work of an individual. It is more a combination of views and ideas,

suggestions and contribution and work. This project also bears the imprint of many people. Thus

one of the most pleasant parts of writing this report is the opportunity to thank those who have

contributed towards it.

Nothing concrete can be achieved without an optimal combination of inspiration and

perspiration. No work can be accomplished without taking the guidance of the experts. It is only

the views and advice from ingenious intellectual that help in the transformation of a product into

a quality product.

I gratefully thanks to Prof. VIJENDRA DHYANI (Project Guide) who has given us the

opportunity to learn at deep level to prepare this project.

Last but not the least, no acknowledgement will be complete without mentioning our parents &

friends. They have also supported us throughout the development of our project.

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INTRODUCTION

Parle Products has been India's largest manufacturer of biscuits and confectionery for almost 80

years. Makers of the world's largest selling biscuit, Parle-G, and a host of other very popular

brands, the Parle name symbolizes quality, nutrition and great taste. With a reach spanning even

to the remotest villages of India, the company has definitely come a very long way since its

inception.

Many of the Parle products - biscuits or confectioneries, are market leaders in their category and

have won acclaim at the Monde Selection, since 1971. With a 40% share of the total biscuit

market and a 15% share of the total confectionary market in India, Parle has grown to become a

multi-million dollar company. While to the consumers it's a beacon of faith and trust,

competitors look upon Parle as an example of marketing brilliance.

Over the years Parle has grown to become a multimillion-dollar company with many of the

products as market leaders in their category. 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 onto become leading brand names itself

for great taste and quality.

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Today, the great strength of Parle Products is the extremely widespread distribution network.

Even at the remotest places, you can buy Parle biscuits and sweets from the local grocer. It has

taken years to create this extensive network. Parle’s sales force started with one salesman in

Bombay and some agents in few other cities. Gradually, Parle Products expanded. Soon sweets

and biscuits were being sent by rail to Calcutta, Delhi, Karachi, Madras and other major cities.

As production increased, distribution was amplified. Full time salesmen were appointed in

different areas. Currently, Parle Products has over 33, 00,000 distribution outlets.

Hygiene is the precursor to every process at Parle. From husking the wheat and melting the sugar

to delivering the final products to supermarkets and store shelves nationwide, care is taken at

every step to ensure the best product of long-lasting freshness. Every batch of biscuits,

confectioneries & snacks are thoroughly checked by expert staff, using the most modern

equipment. This ensures consistent and perfect quality across the nation and abroad.

Concentrating on consumer tastes and preferences, the Parle brand has grown from strength to

strength ever since its inception. The factories at Bahadurgarh, Haryana and Neemrana,

Rajasthan are the largest biscuit and confectionery plants in the country. The factory in Mumbai

was the first to be set up, followed soon by the one in Bangalore, Karnataka. Parle also has 10

manufacturing units for biscuits and 75 manufacturing units for confectioneries on contract. 

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. Every batch of biscuits &

confectioneries are thoroughly checked by expert staff, using the most modern equipment.

The Care is taken at every step to ensure the best product   of long-lasting freshness. Every batch

of Biscuits, Confectionaries & Snacks are thoroughly checked by expert staff using the most

modern equipment. This ensures consistent and perfect quality across the nation and abroad.

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ABOUT THE COMPANY

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

Chauhan in the suburbs 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 1939, 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.

The original Parle Company was split into three separate companies, owned by the different

factions of the original Chauhan family:

Parle Products, led by Vijay, Sharad and Anup Chauhan (owner of the brands Parle-G,

Melody, Mango Bite, Poppins, Monaco and Krack Jack)

Parle Agro, led by Prakash Chauhan and his daughters Schauna, Alisha and Nadia (owner of

the brands such as Frooti and Appy)

All three companies continue to use the family trademark name "Parle". The original Parle group

was amicably segregated into three non-competing businesses. But a dispute over the use of

"Parle" brand arose, when Parle Agro diversified into the confectionary business, thus becoming

a competitor to Parle Products. In February 2008, Parle Products sued Parle Agro for using the

brand Parle for competing confectionary products. Later, Parle Agro launched its confectionery

products under a new design which did not include the Parle brand name In 2009, the Bombay

High Court ruled that Parle Agro can sell its confectionery brands under the brand name "Parle"

or "Parle Confi" on condition that it clearly specifies that its products belong to a separate

company, which has no relationship with Parle Products.

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BOARD OF DIRECTORS

NAME OF MEMBERS DESIGNATION

Vijay K Chauhan Chairman & Managing Director

Sharad P Chauhan Managing Director

Raj K Chauhan Managing Director

Ajay V Chauhan Executive Director

Anup S Chauhan Executive Director

Samar S Chauhan Executive Director

PRODUCTS OF PARLE

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BUSCUITS SWEETS SNACKS

Parle-G Londonderry Parle’s wafers

Monaco Melody Namkeen

Golden Arcs Mango Bite Fulltoss

Parle Actifit Digestive

marie

Kaccha Mango Bite Munchies

Parle Marie Chox Cheeslings

Hide & Seek Poppins

Hide & Seek Fab Mazelo

Hide & Seek Bourbon 2 in 1

Festo 2 in 1 Éclair

Happy Happy Kismi

Milano Kismi Toffee Bar

Nimkin Fruit Drops

Coconut

20 – 20 cookies

Jam In

Gold Star

Kreams

Top

Magix

Coconut

QUALITY OF PARLE

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Parle Quality:-

Hygiene is the precursor to every process at Parle. From husking the wheat and melting the sugar

to delivering the final products to the supermarkets and store shelves nationwide, care is taken at

every step to ensure the best product of long-lasting freshness. Every batch of biscuits and

confectioneries are thoroughly checked by expert staff, using the most modern equipment hence

ensuring the same perfect quality across the nation and abroad.

Concentrating on consumer tastes and preferences, the Parle brand has grown from strength to

strength ever since its inception. The factories at Bahadurgarh in Haryana and Neemrana in

Rajasthan are the largest biscuit and confectionery plants in the country. The factory in Mumbai

was the first to be set up, followed soon by the one in Bangalore, Karnataka. Parle Products also

has 14 manufacturing units for biscuits and 5 manufacturing units for confectioneries, on

contract.

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 facilities 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. Every batch of biscuit & confectioneries

are thoroughly checked by expert staff, using the most modern equipment.

MARKETING STRATEGY OF PARLE

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LATEST STRATEGY:

As part of its marketing initiative, Parle Products has recently adopted a major pricing strategy

whereby a 5 kg ‘Parle-G’ Atta will be available to consumers and, along with ‘Parle-G’ biscuit

pack for free at Rs 90. However, competitors, ‘Pillsbury’ atta are priced at Rs 104, and, ‘Kissan

Annapurna’ at Rs 102, in similar capacity.

AVAILABILTY:

Parle-G is available in Europe, UK, USA, Canada, etc. In Canada, it is sold by Zehrs, Food

Basics, Loblaw’s, etc for only 99 cents for a 418 gram pack. Parle-G or Parle Glucose biscuits,

manufactured by Parle Products Pvt. Ltd, are one of the most popular biscuits in India. Parle-G is

one of the oldest brand names as well as the largest selling brand of biscuits in India. For

decades, the product was instantly recognized by its iconic white and yellow wax paper wrapper

with the depiction of a young girl on the front. Counterfeit companies have attempted to recreate

and sell lower quality products of similar names with virtually identical package design.

MARKET SHARE: 

It has 70% market share in India in the glucose biscuit category followed by Britannia, Tiger

(17-18%) and ITC's Sunfeast (8-9%). The brand is estimated to be worth over Rs 2,000 crore (Rs

20 billion), and contributes more than 50 per cent of the company's turnover (Parle Products is an

unlisted company and its executives are not comfortable disclosing exact numbers). Last fiscal,

Parle had sales of Rs 3,500 crore (Rs 35 billion). It also is popular across the world and is

starting to sell in Western Europe .

MARKETING MIX OF PARLE PRODUCTS LIMITED

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PRODUCT STRATEGY:

Core benefit- the core benefit of biscuit is to satisfy hunger of the consumer. 

Basic product- in the second level, the basic product is biscuits. 

Expected product- the consumers expect the product to have a good taste and also give nutrition. 

Augmented product- Parle biscuits increase a person’s energy levels. o Potential product- in the

future Parle could come up with different products.

MARKET STRENGTH:

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 e most remote places and in the

smallest retail outlets. Parle has nearly 1,500 wholesalers, careering to 4,25,000 retail outlets

directly or indirectly. A two hundred strong dedicated field force services there wholesalers and

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

distribution network. Parle constantly endeavor at designing products that provide nutrition and

fun t o the common man. Most Parle offerings are in the low and mid-range price segments.

This is based on their 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.

REASON OF PARLE-G MAINTAINING ITS PRICE OF RS.4.00 FROM LAST 25

YEARS?

Low profit margin.

Decrease in weight per biscuit.

Bulk purchase of raw material.

Reduced wastage- 1% of the 115 TONES.

Increased productivity.

Availability in remote places.

Avoid sophisticated packing.

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

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Parle-G has seen the variation in sales due to increase in price. By mere 50 paise in 1995.

PRICING STRATEGY OF PARLE-G:

Appeal to all income groups : The product is appealing to the consumers as the target

audience is basically kids. This product is suitable to all Income group.

Low and mid range price Segments: The pricing of the product is of low and mid range so as

it suits every ones pocket.

Value for money:

Value for money allows all age group to enjoy parle products at fullest.

Strict cost control at every point in supply Chain:

It reaches 2.5 million outlets, including villages with a population of 500 people.

AWARDS

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. Providing kids with the vital vitamins and minerals

necessary for all round mental and physical development.

MAJOR COMPETITORS OF PARLE PRODUCTS LTD

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The major competitors of parle products is Britaniya, Sunfeast, Priya Gold, cadburry, and

others local brand.

Britannia

The company was established in 1892, with an investment of Rs.295. Initially, biscuits were

manufactured in a small house in central Kolkata. Later, the enterprise was acquired by the

Gupta brothers mainly Nalin Chandra Gupta, a renowned attorney, and operated under the name

of "V.S. Brothers." In 1918, C.H. Holmes, an English businessman in Kolkata, was taken on as a

partner and The Britannia Biscuit Company Limited (BBCo) was launched. The Mumbai factory

was set up in 1924 and Peek Freans UK, acquired a controlling interest in BBCo. Biscuits were

in big demand during World War II, which gave a boost to the company’s sales. The company

name finally was changed to the current "Britannia Industries Limited" in 1979. In 1982 the

American company Nabisco Brands, Inc. became a major foreign shareholder.

Biscuits

The company's factories have an annual capacity of 433,000 tonnes. The brand names of biscuits

include VitaMarieGold, Tiger, Nutrichoice Junior,Good day, 50 50, Treat, Pure Magic, Milk

Bikis, Good Morning, Bourbon, Thin Arrowroot, Nice, Little Hearts and many more.

Tiger, the mass market brand, realised $150.75 million in sales including exports to countries

including the U.S. and Australia, or 20% of Britannia revenues in 2006.

In a separate dispute from the shareholder matters, the company alleged in 2006 that Danone had

violated its intellectual property rights in the Tiger brand by registering and using Tiger in

several countries without its consent. Britannia claimed the company found out that Danone had

launched the Tiger brand in Indonesia in 1998, and later in Malaysia, Singapore, Pakistan and

Egypt, when it attempted to register the Tiger trademark in some of these countries in

2004. Whilst it was initially reported in December 2006 that agreement had been reached, it was

reported in September 2007 that a solution remained elusiv. In the meantime since Danone's

biscuit business has been taken over by Kraft, the Tiger brand of biscuits in Malaysia was

renamed Kraft Tiger Biscuits in September 2008.

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Britannia initiated legal action against Danone in Singapore in September 2007. The dispute was

resolved in 2009 with Britannia securing rights to the Tiger brand worldwide, and Danone

paying Rs220 million to utilise the brand.

ITC

In July 2003, ITC forayed into the Biscuits market with the Sunfeast range of Glucose, Marie

and Cream Biscuits. Sunfeast's brand essence connotes happiness, contentment, satisfaction and

pleasure. In a span of 9 years, Sunfeast has well-established presence in almost all categories of

biscuits and is also a key player in the pasta and instant noodles segments.

Sunfeast Biscuits straddle all segments of the market led by Dark Fantasy at the premium end.

High quality married with exciting innovations has helped drive this category. Dark Fantasy

Choco Fills has wowed the Indian consumer with its innovative centre-filled format and high-

quality packaging.

In addition, the launch of the Dream Cream range of biscuits in two exciting and innovative dual

cream formats further reinforces ITCs commitment to continuously delight the consumer.

Priya Gold

Surya Food & Agro Ltd. was incorporated in November 1992 and commenced its commercial

operations of manufacturing & selling of biscuits under brand “Priyagold” in October 1993. Over

a period, we have established strong manufacturing capabilities and have invested substantially

in developing consumer preference for our products. trademarks / brands “Haq Se Maango” &

“Priyagold” have emerged as one of the most powerful brands in the FMCG sector. They are

committed to invest in brands, manufacturing capabilities, deliverables and distribution strength.

They have three plants located in Greater Noida, Lucknow & Surat. & also outsource some of

our requirements to another plant located in Hyderabad.

Capacities have reached 1,50,000 MT p.a., which along with strong brand building and

distribution capabilities have enabled us to command a sizable market share in the biscuit market

despite competition from well-established players in the industry.

After establishing foothold in biscuit industry, they continued to adopt strategy to identify and

commercialize profitable growth opportunities by leveraging established brand and distribution

network.

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Following this strategy, they diversified into manufacturing of “fruit juices” through wholly

owned subsidiary “Surya Fresh Foods Ltd.” in January 2006. The manufacturing facility is

located at Greater Noida, U.P. We have consciously invested in creating markets for fruit juices

and have established brands such as “Fresh Gold” & “Treat”.

Strategy of strengthening the brands especially the umbrella brand “Priyagold” has resulted in

creating immense brand recall value. They are continuing with our effort of strengthening the

brand with a scientific approach, which will result in growth of customer base, price premium,

consumer loyalty which is expected to result in increased earning and ultimately enhancing

enterprise value of company.

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QUESTIONNAIRE

1. Is Parle G your budget biscuit?

a. Yes

b. No

90%

10%

BUDGETYES NO

Interface: From the above chart we can analyze that 90% of the people say Parle g is their

budget biscuit and only 10% of the people disagree to it. So we can conclude that Parle g is a

budget biscuit for most of the people.

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2. How often do you have Parle G biscuit?

a. Weekly

b. Monthly

40%

60%

CONSUMPTIONWeekly Monthly

Interface: From the above chart we can analyze that 60% of the people say that they consume

Parle g biscuit on monthly basis and only 40% of the people consume it weekly.

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3. How do you rate the quality of Parle G?

a. Very Good

b. Bad

c. Average

40%

10%

50%

RATINGVery Good Bad Average

Interface: From the above chart we can analyze that 50% of the people say Parle g is a average

quality biscuit, 10% of the people say its bad and rest 40% agree that it’s a very good quality

biscuit.

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4. Have you ever faced change in the quality of Parle G?

a. Never

b. Often

50%50%

Change In QualityNever Often

Interface: From the above chart we can analyze that 50% of the people say that they never faced

change in the quality of Parle g biscuit and rest of the people say they often faced change in the

quality .

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5. Why do you prefer Parle G?

a. Taste

b. Healthy

c. Cheap

20%

30%

50%

PREFERENCETASTE HEALTHY CHEAP

Interface: From the above chart we can analyze that 20% of the people say that they prefer

Parle g because of the taste, 30% of the people prefer because its healthy and rest 50% prefer it

because it’s cheap.

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6. Does the advertisement of Parle G persuade you to buy it?

a. Yes

b. No

40%

60%

PROMOTIONYES NO

Interface: From the above chart we can analyze that 60% of the people say that promotion of the

Parle g don’t persuade them to buy it and rest of 40% of people agree to buy it because of

promotions.

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7. Do you think that the company should change the packaging and colour of cover?

a. Yes

b. No

30%

70%

PACKAGINGYES NO

Interface: From the above chart we can analyze that 70% of the people say that Parle g should

not change the packaging and only 30% of the people disagree to it.

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8. What future improvement do you want in Parle G?

a. Taste

b. Freshness

c. Availability

d. Quantity

20%

20%

30%

30%

IMPROVEMENTTASTE FRESHNESS AVAILABILITY QUANTITY

Interface : From the above chart we can analyze that 30% of the people say that Parle g should

improve its taste and the same percentage of people feel that there should be availability of the

product should improve. 20% of the people feel that there should be improvement in freshness of

the product and the same percentage of people feel that there should be improvement in terms of

the quantity of the product.

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BIBLIOGRAPHY

WEBSITE & SEARCH ENGINE:-

http://www.citehr.com

http://www.parleproducts.com

http://www.teamcomputers.com

http://www.studymode.com