Parle g

India - 3rd largest producer of biscuits

Organized sector produces 1.7 million tons of biscuits/year valued at INR 110 billion in 2008

Glucose biscuits represent 42% of the market

Sector growing at 15 % annually

60% of the market is owned by organized sector

Indian Biscuit Industry

World’s largest producer of selling biscuits brand by tonnage

40% share of total biscuit market in India

Produced 650,000 tons of biscuits/pa. Parle-G comprised of 500,000 tons

Sales INR 35 billion( 68% contributed by Parle G )

Parle products are perceived as “Good value for money”

Company Background

4 P’s

• Television Ads• 95% sales in Indian Market

• 8000 Distributors

• Price setter in Market

• Seen as value for money

• Parle G• Hide n Seek• Monaco• Krack Jack

Product

PricePromotio

n

Place

Market Segmentation

Retail and Institutional

Income Groups

Socio Economics Classes

Age Groups

Biscuit Types

Children are both users and influencers( 5 – 14 age group)

Children formed 60% of the target audience

Middle class were the largest consumers

Institutional consumers – hospitals, factories, railway station, schools, government offices

Increasing Income level of household

Target Customers

Competitors

Britania• Tiger• Good Day

ITC

• Sunfeast Glucose

• Sunfeast Dream cream

Surya• Priya Gold• Marie lite

Anmol

Product Hierarchy

Parle G – Rs. 4/- SKU

Glucose Biscuits

Biscuits

Ready To Eat/Packaged Food Items

Food Items

Hunger

The ProblemInput cost of raw materials (sugar and wheat flour), which comprised 55% of the manufacturing costs, is increasing

Margin of Parle-G decreased from 15% of revenue to less than 10%

Since introduction, the biscuit is strongly associated with the offering “Value for money”

In 2004 first attempt to increase price of 100gms Parle-G pack from INR 4.0 to 4.5 resulted in 40% decline in sales within 6 months

How to over come value for money perception and increase price?

What is the marketing

strategy to be adopted?

Should Parle launch new

SKUs and new price points?

Should Parle tinker with grammage?

Cannibalization of Parle-G with new and similar

products

Launch premium versions of the product, eg. Parle G - Premium , Parle G Nutri.

Concentrate more on premium segments for future growth

Tinker with the weight of the product and concentrate on the Rs. 5 price point.

Cut down on advertisements expenditure for Parle G

Cost reduction by backward integration

Suggestions

THANK YOU