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Fmcg Parle

Oct 16, 2015

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FMCG PARLEparle g

AGENDAFMCGPARLEPARLE GRECENT LAUNCHES OF PARLE VISIT TO THE COMPANY PARLEWhat is FMCGFast-Moving Consumer Goods (FMCG) or Consumer Packaged Goods (CPG) are products that are sold quickly and at relatively low cost

Indias FMCG sector is 4th largest Sector in the economy

FMCG Industry is characterized by a well established distribution network, low penetration levels, low operating cost, lower per capital consumption and intense competition

They spent 10% of their revenues on advertising

Growth ProspectsLarge MarketIndia has a population of 1.150 billion which is just behind chinaAccording to estimate, by 2030 india population will be around 1.1450 billion and will surpass china to become the world largest in terms of populationFMCG industry which is directly related to the population is expected to maintain a robust growth rate

Strong growth in FMCG sectorFMCG sector generated revenues worth USD 36.8 Billion in 2012, a 5.7% rise compared to the previous year

The strong growth in 2012 should come as no surprise given the impressive performance of the sector over the year

Over 2006-12 the sector revenue posted a CAGR of 15.2%Segments

Future of FMCGLarge Market:-India has a population of more than 1.150 Billions which is just behind China

According to the estimates, by 2030 India population will be around 1.450 Billion and will surpass China to become the World largest in terms of population

FMCG Industry which is directly related to the population is expected to maintain a robust growth rate.

Challenges for FMCG SectorRapid new product innovationIntegration of various data sourcesEvaluation of various scenariosImproving sales and marketing effectivenessNotable Trends in FMCG Focus on Rural MarketProduct InnovationBrand ConsciousnessExpanding Distribution NetworkRising importance of smaller-sized packsFocus on enhancing presence in AfricaReducing carbon footprint and eco-friendly productsTOP 3 FMCG COMPANIES

Recent News for FMCGFMCG has reported 13% increase in second quarter net profit at Rs 914 croreThe company registered 5% growth in volume and managed to deliver good results despite pressure on margins in FMCG sectorLot of Investment expected from beverage giants

COMPANY SELECTED

CORE VALUES

An in-depth understanding of the Indian consumer psyche has helped Parle develop a marketing philosophy that reflects the needs of the Indian masses

products created bearing in mind both health and taste

Hygiene is the precursor to every process at Parle

Care is taken at every step to ensure the best product of long-lasting freshnessOVERVIEW Parle has been India's largest manufacturer of biscuits for almost 80 yearsReach spanning even to the remotest villages of India, the company has come a long way since its inceptionCurrently, Parle Products has over 33, 00,000 distribution outlets14 manufacturing units for biscuits and 5 units for confectioneries

BrandsParleKrackjackMonacoMonaco FunionKreamsHide and Seek Hide and Seek MilanoBourbonParle MarieParle 20-20 CookiesNimkin

Comparison of Biscuit Brands

SWOT AnalysisSales and TurnoverLast year Parle products sold Rs 5010 crore worth of its biscuits at retail priceThis meant sales of more than 100 crore packets across sizes every month or 14600 crore biscuits in entire yearAnnual Turnover is 5000 crores

Marketing Strategies75 85% of budget spent on advertising

Television and Print Media Dedicated facebook page for Parle G, also running genius campaignFuturegeneius.comwebsite - child psychology expert Jeevan D CunhaCompany has initiated Genius and Bond with Ruskin campaignsPromotion of other brands Hide & seek, poppins and krackJack

23Advertisement In Rural MarketTelevisionRadio CommercialsWall PaintingsBannersShop displaysNewspaperAccepting Industrial visits for Students Parle v/s BritanniaBattle for market share continuesParle products play the low price game at all varieties of biscuits from glucose to creamParle plays a high volume, low margin game, But Britannia look at a two-pronged strategyBritannia dominated the premium segment of biscuits and parle dominated the mass ,low premium biscuits ContdDescription ParleBritanniaEstablished 19291826Nature of businessFamily run businessPublic ltdNo of manufacturing units8 own units ,60 CMU5 own ,40CMUMarket share ( value)68.73%32.8%Ads Major methodsCelebrities endorsementCricket events and playersNew areas of promotionHealth and wellnessEnvironmentIMPORTANT BRANDS PITCHED AGAINST EACH OTHERCategoryBritanniaParleLeaderGlucoseTigerParle -GParle-G

Marie GoldParle MarieMarie GoldMarie GoldSalty snacks50-50Krack JackKrack Jack

Choco chipsGood dayHide n seekGood dayMilkMilk bikisMilk sakhtiMilk bikisBourbonBourbonHide n SeekBourbonNiceNice------Britannia NiceMulti grainNutri choice-----Nutri choiceCreamCream TreatKreamsCream treatsCookieGood day20-20Good dayRECOMMENDATIONSParle has to take on traditional snack giants such as Haldiram, which controls over 45 per cent share of the market Balaji which has a close to 19 per cent shareDistribution of Advertising Expenditure Brand Chosen

Parle GParle G has strong household name across IndiaGreat taste, high nutrition and international quality makes Parle G a winnerUndisputed leader in biscuit category for decadesConsumed by people of all agesIt is Mass production, Mass distribution and Mass promotion for all buyersProfit Margin for distributors is 4% and for retailers is 10-12%

Few FactsQuality ConsciousCost LeadershipEconomies of ScaleIts a Star in BCG MatrixOne of the Largest Manufacturing UnitThey work on Reduced wastageAvoid sophisticated packing100g pack costing Rs 4 has net weight of 93.5gParle - G is the winner of 8 Gold and 11 Silver awards at the Monde Selection Awards

Business StrategyAn in-depth understanding of the Indian consumer psyche has helped Parle evolve a marketing philosophy that reflects the needs of the Indian masses

With products designed keeping both health and taste in mind, Parle appeals to both health conscious mothers and fun loving kids

Intensive DistributionMarketing StrategySales PromotionPromotional tools Samples, coupons, rebatesPromotion in rural marketAssociate with various Government initiative like, Primary Education scheme, NRHM centers , Mid-day meals being serve in primary school

Parle G on Product Life Cycle

4 Ps of Parle GSWOT ANALYSISSTP AnalysisMarket Share of Parle G

Parle Gs SUCCESS MILESTONES

RURAL MARKET OF PARLE-GParle G is concentrating heavily on rural marketing to have high growth rate in rural areas

Rural market penetration is 50 65%

Parle G market reach very high due to distribution network Consumer psyche: Recognize Not as Parle G but as .. biscuit ka puda

ChallengesIncreasing prices of basic raw materialsThis leads to increase in manufacturing cost of biscuitsParle G is very price sensitive productSmall increase in price in past has seen high decline in salesSerious competition from brands like Tiger by BritanniaNew launchES of Parle Parle - G Gold

Parle re-enters in cola marketTwo decades after it hived off its carbonated soft drinks portfolio,ParleAgro announced its re-entry into the Rs 15,000-crorecola marketearly next year with the launch Cafe Cuba, a coffee-flavoured carbonated drink

Tea time crunchParle Products has launched Rusk They are flavored with cardamom A pack of 200 gm is priced Rs.25Available across IndiaThe packaging has a contemporary look, giving look, giving it a distinctive and a attractive place on every shelf

Happy Happy Cream Biscuits Parle Products launches Happy Happy Cream Biscuits in 60g & 120g packs

The latest variant in its Happy series (after Parle Happy Happy Choco Cookies)

The sandwich biscuit segment has not seen any significant launch recently, thus making it a good time to introduce Parle Happy Happy Cream Biscuit

VISIT TO PARLE COMPANY

Discussion on The strategy behind lowing the price of Parle G from Rs 5 to Rs 4

CONCLUSIONLargest Selling brandKnows the trick of tapping CustomersHealthy IngredientsConsumed by all age groupsGood distribution channelsExcellent Marketing and Promotions Strategy

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