Parle G Brand Equity 6

PROJECT REPORT ONBRAND EQUITY OF PARLE-G

SUBMITTED TOTHE UNIVERSITY OF MUMBAIFOR THE AWARD OF THE DEGREE OFBACHELOR OF MANAGEMENT STUDIES (V SEMESTER)

BYPRATIK GOWDAUNDER THE GUIDANCEProf. SHRAMIKA KATHEETH

BAL - BHARATISM.J.P COLLEGE OF COMMERCEMUMBAIACADEMIC YEAR2014-15

DECLARATIONI Pratik Gowda student of university of Mumbai B.M.S Course of Bal-Bharatis M.J.P college of Commerce hereby submit my project entitled as Brand Equity of Parle G in the academic year 2014-15.The subject matter is contained in this project is research and the work carried out is original and is under the guidance of Prof. Shramika Katheeth However, this material has been developed to enhance the clarity of the hypothesis and has been used for academic purpose only Also on part this may be used and reproduce by other, either accidentally or commercially without consent if author and his/her guide.

Yours sincerelyDatePlace

Signature of the student

AcknowledgmentIt is with a sage sense of gratitude, I acknowledge the efforts of whole hosts of well-wishers who have in some way or other contributed in their own special ways to the success and completion of this project.I would like to express my gratitude towards the following without whom this dissertation would have not been possible.Firstly I thank my college for providing facilities (library computer lab) I would like thank Co-coordinator Mrs. Monika Chandiwala Bal-Bharati MJP College of commerce . Would like to thank my project guide Ms. Shramika Katheeth for helping me completing this project on Brand equity of Parle-G. I thank her for her guidance and support and encouragement. I would be failing in my duty if I dont express my profound gratitude to the entire respondent who has spent their valuable time to answer the questionnaire.Last but not the least; I would also like to expand my thanks to all faculty members of MJP Bal-Bharati College who have helped a lot during the course of my project.Finally, I sincerely express my thanks to all my friends, family members.

Executive SummaryThe bread and biscuits constitutes the largest segments of consumer foods in India. Both Biscuits and Bread are items of mass consumption in our Country. Almost 2 million tons of biscuits are produced in India each year and consumption is growing at 10-12 per cent annually. The per capita consumption of biscuits in the country is about 1.52 kg annually. Contrary to popular belief that biscuits are consumed by the middle and high income groups, it is actually the only nutritious and hygienic food product for children, lower income groups and the rural population. Nearly 50 per cent of biscuits produced are consumed in rural areas and 30 per cent by income groups earning below Rs 750 per month. Every 100 gm. of glucose biscuits roughly provides 20 per cent of energy, protein and calcium required by an average adult. So as to explore the opportunities in these sectors, a large no. of companies is trying to increase their consumer base in these areas. For this they are offering various promotional schemes in order to make their brand familiar to consumers and to have a Competitive edgeParle G Industries has made a rapid progress in the variety, quality and quantity of biscuits and baked foods and has become Indias biggest brands and the preeminent food brand of the country. It is equally recognized for its innovative approach to products and marketing. The companys offerings are spread across the spectrum with products ranging from the healthy and economical.Table of ContentChp.noContentPage no

1Introduction 1.1Purpose 1.2 What does brand means 1.3 What is Equity 1.4 Brand Elements 1.5 Types of Brand 1.6 Types of Branding 1.7 Construction of Branding 1.8 Objectives of study7

2Methodology24

3 Company Profile 3.1 Highlights of the Company 3.2 Evolution of Parle G 3.3 Consumer value- Parle-g26

4Industry Profile42

5Biscuit Industry in India - Current Scenario 5.1 Competitors Profile47

6Literature Review54

7 Data Analysis 7.1 Survey Analysis of Parle-G57

8Findings75

9Recommendation77

10Conclusion79

11Bibliography80

12Annexure81

List of Figures

Sr.NoParticularsPage No.

1Market size of FMCG industry in India46

2Segment of Indian FMCG industry46

3Age distribution58

4Manufacturer trust among people59

5Preference of people60

6Trust Among people 61

7Buying preference62

8Consumption pattern63

9Satisfaction towards Parle-G64

10Sufficienency65

11Quality of Parle-G66

12Quality deviation of Parle-G67

13Complaint by consumer 68

14Parle-g Preference on Regular basis69

15Consumer Preference when Parle G is not available70

16Effectiveness of Advertisement71

17Advertisement preferred by consumer72

18Improvements for Parle-G73

19Associated by Consumer74

Chapter 1Introduction

Brand equity is a phrase used in the marketing industry which describes the value of having a well-known brand name, based on the idea that the owner of a well-known brand name can generate more money from products with that brand name than from products with a less well-known name, as consumers believe that a product with a well-known name is better than products with less well-known names. Some marketing researchers have concluded that brands are one of the most valuable assets a company has, as brand equity is one of the factors which can increase the financial value of a brand to the brand owner, although not the only one. Elements that can be included in the valuation of brand equity include (but not limited to): changing market share, profit margins, consumer recognition of logos and other visual elements, brand language associations made by consumers, consumers' perceptions of quality and other relevant brand values. Consumers' knowledge about a brand also governs how manufacturers and advertisers market the brand. Brand equity is created through strategic investments in communication channels and market education and appreciates through economic growth in profit margins, market share, prestige value, and critical associations. Generally, these strategic investments appreciate over time to deliver a return on investment. This is directly related to marketing ROI. Brand equity can also appreciate without strategic direction. A Stockholm University study in 2011 documents the case of Jerusalem's city brand. The city organically developed a brand, which experienced tremendous brand equity appreciation over the course of centuries through non-strategic activities . A booming tourism industry in Jerusalem has been the most evident indicator of a strong ROI.Brand equity is strategically crucial, but famously difficult to Many experts have developed tools to analyze this asset, but there is no universally accepted way to measure it. As one of the serial challenges that marketing professionals and academics find with the concept of brand equity, the disconnect between quantitative and qualitative equity values is difficult to reconcile. Quantitative brand equity includes numerical values such as profit margins and market share, but fails to capture qualitative elements such as prestige and associations of interest.

1.1 PurposeThe purpose of brand equity metrics is to measure the value of a brand. A brand encompasses the name, logo, image, and perceptions that identify a product, service, or provider in the minds of customers. It takes shape in advertising, packaging, and other marketing communications, and becomes a focus of the relationship with consumers. In time, a brand comes to embody a promiseabout the goods it identifiesa promise about quality, performance, or other dimensions of value, which can influence consumers' choices among competing products. When consumers trust a brand and find it relevant, they may select the offerings associated with that brand over those of competitors, even at a premium price. When a brand's promise extends beyond a particular product, its owner may leverage it to enter new markets. For all these reasons, a brand can hold tremendous value, which is known as brand equity.The greater a company's brand equity, the greater the probability that the company will use a family branding strategy rather than an individual branding strategy. This is because family branding allows them to leverage the equity accumulated in the core brand Aspects of brand equity include: brand loyalty,awareness, association and perception of quality.Brand Equity is best managed with the development of Brand Equity Goals, which are then used to track progress and performance.Brands with high levels of awareness and strong, favorable and unique associations are high equity brands.Consumers may look on branding as an aspect of products or services, as it often serves to denote a certain attractive quality or characteristic From the perspective of brand owners, branded products or services also command higher prices. Where two products resemble each other, but one of the products has no associated branding (such as a generic, store- branded product), , people may often select the more expensive branded product on the basis of the quality of the brand or the reputation of the brand owner.A brand can also be used to attract customers by a company, if the brand of a company is well established and has goodwill. The recognition and perception of a brand is highly influenced by its visual presentation. A brands visual identity is the overall look of its communications. Effective visual brand identity is achieved by the consistent use of particular visual elements to create distinction, such as specific fonts, colors, and graphic elements. At thecore of every brand identity is a brand mark, or logo. In India , brand identity and logo design naturally grew out of the Modernist movement in the 1990s and greatly drew on the principles of that movement simplicity and geometric abstraction. These principles can be observed in the work of the pioneers of the practice ofvisual brand identity design,Color is a particularly important element of visual brand identity and color mapping provides an effective way of ensuring color contributes to differentiation in a visually cluttered marketplace Iconic brands are defined as having aspects that contribute to consumer's self-expression and personal identity. Brands whose value to consumers comes primarily from having identity value are said to be"identity brands". Some of these brands have such a strong identity that they become more or less cultural icons which makes them "iconic brands". Examples are: Apple, Nike and Harley Davidson. Many iconic brands include almost ritual-like behaviour in purchasing or consuming the products.

1.2 What does a Brand Means?Brand as a tool in the field of mass-marketing originated in the 19th century with the advent of packaged goods. Industrialization moved the production of many household items, such as soap, from local communities to centralized factories. When shipping their items , the factories would literally brand their logo or insignia on the barrels used, extending the meaning of "brand" to that of a trademark.Manufacturers quickly learned to build their brands' identity and personality such as youthfulness, fun or luxury. This began the practice we now know as "branding" today, where the consumers buy "thebrand" instead of the product. This trend continued to the 1980s, and is now quantified in concepts such as brand value and brand equity. A brand which is widely known is said to have brand recognition. When brand recognition builds up to a point where a brand enjoys a critical mass of positive sentiment in the marketplace, it is said to have achieved brand franchise.Brand recognition is most successful when people canstate a brand without being explicitly exposed to the company's name, but rather through visual signifiers like logos, slogans, and colors.A brand encompasses the name, logo, image, and perceptions that identify a product, service, or provider in the minds of customers. It takes shape in advertising, packaging, and other marketing communications, and becomes a focus of the relationship withconsumers. In time, a brand comes to embody a promise about the goods it identifiesa promise about quality, performance, or otherdimensions of value, which can influence consumers' choices among competing products. When consumers trust a brand and find it relevant, they may select the offerings associated with that brand over those of competitors, even at a premium price. When a brand's promise extends beyond a particular product, its owner may leverage it to enter new markets. For all these reasons, a brand can hold tremendous value, which is known as brand equity.

1.3 What is Equity?In accounting and finance, equity is the residual value or interest of the most junior class of investors in assets, after all liabilities are paid; if liability exceeds assets, negative equity exists. At the very start of a business, owners put some funding into the business to finance operations. This creates a liability on the business in the shape of capital as the business is a separate entity from its owners.Businesses can be considered, for accounting purposes, sums of liabilities and assets; this is the accounting equation. After liabilities have been accounted for, the positive remainder is deemed the owners' interest in the business.The assets of an entity includes both tangible and intangible items, such as brand names and reputation or goodwill. The types of accounts and their description that comprise the owner's equity depend on the nature of the entity and mayinclude.In deciding the value of a company, it is important to know of how much value its customer base is in terms of future revenues. The greater the customer equity , themore future revenue in the lifetime of its clients; this means that a company with a higher customer equity can get more money from it customers on average than another company that is identical in all other characteristics. As a result a company with higher customer equity is more valuable than one without it. It includes customers' goodwill and extrapolates it over the lifetime of the customers.There are three drivers to customer equity, all of whichrefer to three sides of the same thing:1. Value equity: What the customer assesses the value ofthe product or service provided by the company to be;2. Brand equity: What the customer assesses the value ofthe brand is, above its objective value;3. Retention equity: The tendency of the customer tostick with the brand even whenit is priced higher than anotherwise equal product;

1.4 Brand elementsBrands typically are made up of various elements, such as:Name: The word or words used to identify a company,product, service, or concept.Logo: The visual trademark that identifies the brand. Tagline or Catchphrase: "The Quicker Picker Upper" isassociated with Bounty paper towels.Graphics: The dynamic ribbon is a trademarked part of Coca-Cola's brand. Shapes: The distinctive shapes of the Coca-Cola bottle and of the Volkswagen Beetle are trademarked elements of those brands.Colors: Owens-Corning is the only brand of fiberglass insulation that can be pink. Sounds: A unique tune or set of notes can denote a brand. NBC's chimes are a famous example.Scents: The rose-jasmine-musk scent of Chanel No. 5 istrademarked. Tastes: Kentucky Fried Chicken has trademarked its specialrecipe of eleven herbs and spices for fried chicken. Movements: Lamborghini has trademarked the upwardmotion of its car doors. C

1.5 Types of brandDerived brands:In this case the supplier of a key component, used by a number of suppliers of the end- product, may wish to guarantee its own position by promoting that component as a brand in its own right. The most frequently quoted example is Intel, which positions itself in the PC market with the slogan (and sticker) "Intel Inside". Individual and organizational brands there are kinds of branding that treat individuals and organizations as the products to be branded. Personal branding treats persons and their careers as brands. The term is thought to have been first used in a 1997 article by Tom Peters. Faith branding treats religious figures and organizations as brands. Religious media expert Phil Cooke has written that faith branding handles the question of how to express faith in a media-dominated culture.[29] Nation branding works with the perception and reputation of countries as brands.Social media brands:In 'The Better Mousetrap: Brand Invention in a MediaDemocracy' (2012) author and brand strategist Simon Pontposits that social media brands may be the most evolved version of the brand form, because they focus not on themselves but on their users.In so doing, social media brands are arguably more charismatic,in that consumers are compelled to spend time withthem, because the time spent is in the meeting of fundamentalthemselves but on their users.

Multi-brands:Alternatively, in a market that is fragmented amongst a number of brands a supplier can choose deliberately to launch totally new brands in apparent competition with its own existing strong brand (and often with identical product characteristics); simply to soak up some of the share of the market which will in any case go to minor brands. The rationale is that having 3 out of 12 brands in such a market willgive a greater overall share than having 1 out of 10 (even if much of the share of these new brands Is taken from the existing one). In its most extreme manifestation, a supplier pioneering a new market which it believes will beparticularly attractive may choose immediately to launch a second brand .

1.6 Types of Branding

Crowd sourcing brandingThese are brands that are created by "the public" for the business, which is opposite to the traditional method where the business create a brand.Private labelsPrivate label brands, also called own brands, or store brands have become popular. Where the retailer has a particularly strong identity (such as Marks & Spencer in the UK clothing sector) this "own brand" may be able to compete against even the strongest brand leaders, and may outper form those products that are nototherwise strongly branded.Nation branding (place branding and public diplomacy)Nation branding is a field of theory and practice which aims to measure, build and manage the reputation of countries (closely related to place branding). Some approaches applied, such as an increasing importance on the symbolic value of products, have led countries to emphasise their distinctive characteristics. The branding and image of a nation-state "and the successful transference of this image to its exports is just as important as what they actually produce and sell."Place brandingPlace branding (including place marketing and place promotion) is a new umbrella term encompassing nation branding, region branding and city branding. Place branding is the process of image communication to a target market. It is invariably related to the notion that placescompete with other places for people, resources, and business; the global competition of cities is estimated to host 2.7 million small cities/towns, 3,000 large cities, and 455 metropolisesCity BrandingCity branding refers to all the activities that are undergone with the purpose of turning a City from a location into a destination. "Successful branding", says Robert Jones, consultant director at international brand consultancy Wolff Olins, "can turn a city into a place where people want to live, work and visit".City branding is often confused with City marketing. The difference comes from the fact that marketing uses consumer wishes and needs as its guiding principle for the operations of an organization, whereas in the case of branding a chosen vision.1.7 Construction of Brand EquityBrand Equity is best managed with the development of BrandEquity Goals, which are then used to track progress and performanceFirm Level:. Firm level approaches measure the brand as a financial asset. In short, a calculation is made regardinghow much the brand is worth as an intangible asset. For example, if you were to take the value of the firm, as derived by its market capitalizationand then subtract tangible assets and "measurable" intangible assets the residual would be the brand equity.One high- profile firm level approach is by the consulting firm interbrand. To do its calculation, Interbrand estimates brand value on thebasis of projected profits discounted to a present value. The discount rate is a subjective rate determined by Interbrand and Wall Street equityspecialists and reflects the risk profile, market leadership, stability and global reach of the brand.

Product Level: The classic product level brand measurement example is to compare the price of a no-name or private label product to an"equivalent" branded product. The difference in price, assuming all things equal, is due to the brand. More recently a revenue premium approach has been advocated.Marketing mix modeling can isolate "base" and "incremental" sales, and it is sometimes argued that base sales approximate to a measure of brand equity. More sophisticated marketing mix models have a floating base that can capture changes in underlying bran

Consumer Level: This approach seeks to map the mind of theconsumer to find out what associations with the brand the consumer has. This approach seeks to measure the awareness and brand image(the overall associations that the brand has). Free associationtests and projective techniques are commonly used to uncoverthe tangible and intangible attributes, attitudes, and intentions about a brand. Brands with high levels of awareness and strong, favorable and unique associations

1.8 How to Build Brand EquityThe emotional attachment that links consumers to your product, as opposed to any other,translates into steady cash flow and a fantastic public image, two key ingredients that solidify your companys position as a market leader. While most advertisers would agree there are certain basic principles of product branding, each advertiser takes a slightlydifferent approach when it comes to launching a marketing campaign. What follows here are the most widely used steps to build brand equity.1. Target your audience. The surest road to product failure is to try to be Althings to all people. Decide who are the most likely users of your product and develop marketing materials that speak exclusively to thatgroup.2. Get the consumers attention. Heres where a sound advertising strategy comes into play. Your goal is to create public awareness and then build on that brand. You do this by getting consumers to notice that your product stands out from the rest.Design an advertisement in the form of a mailer oran e-mailer. Alternatively, send out samples of a new product to a target group. Which ever form you choose, make sure youre making a great first impression.3. Make the public remember your brand. Your objective is to make consumers feel an emotional attachment to the brand.Plan your marketing campaign around the most distinctive feature of your product, such as its authenticity, high cost or reliability.Design marketing materials that help consumers link to the brand by making them perceive special benefits in your product that they cannot find in others.For example,advertisements for costly designer handbags createthe impression that consumers who purchase them will look like Hollywood socialites. Consumers who view these advertisementsaccept that the distinctive feature of the handbags- high cost-crea4. Build a solid brand image. Once again, consider your products special feature. Add to that the character of your company. Combine these two factors to reinforce an image of the product that reflects favorably on itsmanufacturer or provider.Pick one or two characteristics of your company and emphasizethose in every advertisement. Distinctive characteristics include excellent customer service, company executives who are renowned experts in afield or a commitment to social responsibility.5. Reinforce the brand image within the company. Make sure employees at every level of your organization work and behave in a way that reinforces your brand image.Design orientation programs that introduce new hires to your companys brand image. Emphasize your brandimage in all employee communications, such as brochures, employee manuals, a company intranet and corporate newsletters. Create incentives for employees at all levels who successfully communicate your brandimage to the public.

1.9 Methodologies Related to Brand EquityDavid Aaker, a marketing professor and brand consultant, highlights ten attributes of a brand that can be used to assess its strength. Theseinclude Differentiation, Satisfaction or Loyalty, Perceived Quality, Leadership or Popularity, Perceived Value, Brand Personality, Organizational Associations, Brand Awareness, Market Share,and Market Price and Distribution Coverage. Aaker doesn't weight the attributes or combine them in an overall score, as he believes any weighting would be arbitrary and would vary among brands and categories. Rather he recommends tracking each attribute separately.Aaker ModelThe Aaker Model, created by David A. Aaker , a marketing professor at the University of California-Berkeley and a management consultant atProphet, is a marketing model which views brand equity as a combination of brand awareness, brand loyalty and brand awareness, brand loyalty and brand associations, which add up to give the value provided by a product or service.For Aaker, brand management starts with developing a brand identity, which is a unique set of brand associationsrepresenting what the brand stands for and offers to customers an aspiring brand image.Aaker primarily sees brand identity as consisting of 8-12 elements which fall under four perspectives: Brand as Product - consists of product scope, product attributes, quality or value of the product, uses, users and country of origin. Brand as Organization - consists of organizational attributes, local workings versus global activities. Brand as Person - consists of brand personality and consumer brand relationships. Brand as Symbol - consists of audio and visual imagery, metaphorical symbols and brand heritage.

The purpose of the Aaker Model is to help in creating a brand strategy consisting of different brand elements or patterns, so as to clarify, enrich and differentiate a brand from its competitors. An organization carefully employs several of these elements to communicate to the consumers what their brand stands for.Brand Equity Index (Moran) :Effective Market Share is a weighted average. It represents the sum of a brand's market shares in all segments in which it competes, weightedby each segment's proportion of that brand's total sales.Relative Price is a ratio. It represents the price of goods sold under a given brand, divided by the average price of comparable goods in theMarket.Durability is a measure of customer retention or loyalty. It represents the percentage of a brand's customers who will continue to buy goods under that brand in the following year.Conjoint Analysis :Marketers use conjoint analysis to measure consumers' preference for various attributes of a product, service, or provider, such as features,design, price, or location. By including brand and price as two of the attributes under consideration, they can gain insight into consumers' valuation of a brandthat is, their willingness to pay a premium for it.

Other AspectsSome people distinguish the psychological aspect, brand associations like thoughts, feelings, perceptions, images, experiences, beliefs, attitudes,And so on that become linked to the brand, of a brand from the experiential aspect. The experiential aspect consists of the sum of all points of contact with the brand and is known as the brand experience. The brand experience is a brand's action perceived by a person.

The psychological aspect, sometimes referred to as thebrand image, is a symbolic construct created within the minds of people, consisting of all the information and expectations associated with aproduct, service or the company(ies) providing them.

People engaged in branding seek to develop or align the expectations behind the brand experience, creating the impression that a brand associated with a product or service has certain qualities or characteristics that make it special or unique. A brand is therefore one of the mostvaluable elements in an advertising theme, as it demonstrates what the brand owner is able to offer in the marketplace. The art of creating and maintaining a brand is called brand management. Orientation of the whole organization towards its brand is called brand orientation. The brand orientation is developed in responsiveness to market intelligence.A brand which is widely known is said to have brand recognition. When brand recognition builds up to a pointwhere a brand enjoys a critical mass of positive sentiment in the marketplace, it is said to have achieved brand franchise.Brand recognition is most successful when people canstate a brand without being explicitly exposed to the company's name, but rather through visual signifiers like logos, slogans, and colors.Consumers may look on branding as an aspect ofproducts or services, as it often serves to denote a certainattractive quality or characteristic . From the perspective of brand owners, branded products or services also command higher prices. Wheretwo products resemble each other, but one of the productshas no associated branding , people may often select the more expensive branded product on the basis of the quality of the brand or the reputation of the brand owner.Brand Availability and SKU AvailabilityBrand availability also plays a vital role and helps the company to increase the sales. Brand availability helps the company in the following:Brand Availability in the store creates a positive impact to the company Facilitates a more predictable income stream. Increases cash flow by increasing market share, reducing promotional costs, and allowing premium pricing.The existing customer will be loyal and in case if the same brand is not available, there is a chance that the customer will switch the brand.A strong brand increases the consumer's attitude strength toward theproduct associated with the brand. Attitude strength is builtby experience with a product. This importance of actual experience by the customer implies that trial samples are more effective than advertising in the early stages of building a strong brand. The consumer'sawareness and associations lead to perceived quality, inferred attributes, and eventually, brand loyalty.The brand availability also shows the distribution efficiency of the company adding value through the distribution channel. The marketing mix should focus on building and protecting brand equity. For example, if the brand is positioned as a premium product, the product qualityshould be consistent with what consumers expect of the brand, low sale prices should not be used compete, the distribution channels should be consistent with what is expected of apremium brand, and the promotional campaign should build consistent associations. Stock keeping UnitIn the field of inventory management, a stock keeping unit or SKU is a distinct item, such as a product or service, as it is offered for sale that embodies all attributes associated with the item and that distinguish it from all other items. For a product, these attributes include, but are not limited to, manufacturer, product description, material, size, color, packaging, and warranty terms. When a business takes an inventory, it counts the quantity of each stock keeping unit. SKU can also refer to a unique identifier or code that refers to the particular stockkeeping unit.SKUs are not always physical objects. Anything that can be sold separately from anything else has a stock keeping unit, such as extended warranties, delivery fees, installation fees, and licenses.A stock-keeping unit (SKU) is a unique number which is used to identify a billable item in a company's inventory. Using SKU numbers, companies can keep track of the quantities they have in inventory, and they can manage inventory effectively with the use of computerized systems, rather than having to keep track of everything by hand. SKUs are usually unique to the companies which are to the companies where they are used. This means that an identical product can have different SKUs and sold by different companies. Because to meet the customer wants, different stores are also willing to keep different SKUs of that product. If the stock stock of the products is available in the store then definitely the store can meet different customer wants. Thats why now a days every company give special type of focus on SKU for how to avail in all stores. keep track of the quantit to the companies

1.10 Objectives of StudyAll companies are having their own planning and business strategies but the company who is having the best, is the most successful company among its competitors. So the company can get success within its competitors by applying best and effective marketing strategiesClarify Brand Equity Brand equity can be viewed from several different perspectives. The hard-line perspective is that of financial outcomes which examine price premium. That is, how much more will a consumer pay for a product or service that is branded over a product or service that is generic? A softer perspective is that of brand extension where consideration is given to the value that a brand lends to the introduction of other products, or considers the reverse dynamic of the impact of a new product or service on the existing brand. This following steps address a third perspective - customer-basedDetermine Brand Equity Goals Brand equity market research falls into one of three camps: Tracking, exploring change, and/or extending brand power. Market research that focuses on tracking makes comparison among competitive brands or products against a benchmark. When exploring change is the research goal, customer brand attitude is tapped regarding branding decisions that might result in repositioning or renaming products or servicesUnderstand Customer Brand Attitude A customer-based perspective in the measurement of brand equity focuses on the experiences that consumers have with a brand. The stronger the brand, the stronger the customer's attitude toward the products or services associated with the brandIdentify Brand Equity Components to Measure Brand awareness, brand reach, and brand image association are aspects of brand equity that may not be closely associated with consumer experience. These measures of brand equity may reflect the impact of traditional advertising campaigns, and the influence of social or interactive media.Qualitative and Quantitative Approaches to Brand Equity Data Ideally, brand equity measurement will include both qualitative and quantitative approaches. Focus groups can provide a good forum for exploring customer perceptions and motivation. Conjoint analysis can reveal key consumer decision-making processes.

To understand the product of the company and develop new market To build successful relationship between consumer and organization through effective services. To ensure that product has availability, visibility and freshness To create and understand a channel plan To ensure customers are satisfied with the product and its attributes To understand customer behavior towards various price changes in a given time period. To ensure customers are satisfied with the product and its attributes

Chapter 2METHODOLOGYMany companies that invent new products set high initial value to the products and similar to the practice in the industry and these rates are typically decided on the basis of products positioning, demand, competition, inflation and other factors. Even small differences in prices create product differences. Many direct marketers monitor inventories, costs and demand at any given moment and adjust prices instantly. Throughout most of history, prices were set by negotiations between buyers and sellers.Formulate the problem:The first valuable function of any marketing research is to define the problem, that needed to be solved and the most important part is to specify the objective.The projects' main objective is to undertsand the brand equity of Parle G among people.Determine the research design The sources of information and research design, depends on how much is known about the problem. As per the study descriptive research design is selected and the questionnaire is prepare to meet the canteen owner.Sources of data collectionThis project depends upon the primary as well as secondary sources which are as follows. Primary Source: Questionnaire Observation Interaction with customers as well as canteen owner during the projectSecondary Source: Management of Parle Agro. Various magazines. Internet.

Sample DesignProbability sampling method has been used in this study and all the units of population had equal chances of being included in the sample size. Under probability sampling, Simple random sampling technique was undertaken since there was a definite sampling frame and prior information on the objects or sampling units were available before the sampling process Simple random sample was undertaken because the population from which the sample is to be chosen is homogenous. The data was collected through questionnaire and the research was designed to employ appropriate statistical tools.SAMPLE DESIGNIn designing a sample there must be three steps Sampling frame: Sampling frame is the least f the population elements from which the sample will be drawn. As per the study my target respondents are people from all the age group which also includes, school going kids , workers , employees etc. Sample selection process: It requires specifications as whether it as a probability or non-probability sample. The study is conducted on the basis of simple random sampling method. because in these sampling method each population element has a known, non-zero chance of being included in the sample. Sample size:A subset of the population intended to be representative of the population and the information obtained about the sample was used to make inferences about the population. The sample size was 50 for the project activity.Collection of primary data:- As per the survey I have designed the sample as follows:- The units selected for my survey were people from age group. The sample size is 50. The method used for collecting data was simple random sampling.

Chapter 3COMPANY PROFILEParle based in Mumbai, India 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. Its reach spans even to the remotest villages of India. 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 confectionery market in India, Parle has grown to become a multi-million dollar company. Parle Agro is a food and beverage company based in Mumbai, India. Parle is a leading Indian Food and Beverage Company, the only Indian transnational giant with the past experience of having successfully launched leading soft drink brands like Frooti, Appy, Saint Juice, N-Joi and Bailley. Today its brand portfolio consists of No. 1 brands like Frooti along with Appy, Saint Juice, N-Joi and Bailley. Parle agro was the first to identify the dormant mango segment in India and launch Indias first national Mango drink - Frooti Mango. Today Frooti has an 25% market in the Fruit Drink segment. Today, the Parle Group turnover is over Rs.600 crore with group strength of over 1000 employees, including over 400 professionals.

HISTORY:In 1929 a small company by the name of Parle products emerged in British dominated India. The intent was to spread joy and cheer to children and adults alike, all over the country with its sweets and candies. The company knew that it wouldn't be an easy task, but they decided to take the brave step. A small factory was set up in the suburbs of Mumbai, to manufacture sweets and toffees. Apart from the factories in Mumbai and Bangalore Parle also has factories in Bangalore Parle also has factories in Bahadurgarh in Haryana and Neemrana in Rajasthan, which are the largest biscuit and confectionary plants in the country. Additionally, Parle products also have 7 manufacturing units and 51 manufacturing units on contract.Parle Products company was founded in 1929 in British India. It was owned by the Chauhan family of Vile Parle, Mumbai. Parle began manufacturing biscuits in 1939. In 1947, when India became independent, the company launched an ad campaign, showcasing its Glucobiscuits as an Indian alternative to the British biscuits.The Parle brand became well known India following the success of products such as their Parle-G biscuits and the Thums Up soft drink.The year was 1929 and the market was dominated by famous international brands that were imported freely.Despite the odds and unequal competition the company survived and succeeded,by adhering to high quality and improvising from time to time.A decade later, in 1939 Parle began manufacturing biscuits, inaddition to sweets and toffees Having already established a reputation for quality,the Parle brand name grew in strength with this diversification. Parle Glucose andParle Monaco were the first brands of biscuits to be introduced, which later went onto become leading names for great taste and qualityFor around 75 years, Parle have been manufacturing quality biscuits and confectionery products.Over the years Parle has grown to become a multi million-dollar company with many of the products as market leaders in their category. The recent introduction of Hide & Seek chocolate chip biscuits is a product of innovation and caters to a new taste, being Indias first ever chocolate-chipbiscuits.The original Parle company was split into three separate companies, owned by the different factions of the original Chauhan familyParle Products, led by Vijay, Sharad and Raj Chauhan (owner of the brands Parle-G, Melody, Mango Bite, Poppins, Kismi toffee bar, Monaco and KrackJack)Parle Agro, led by Prakash Chauhan and his daughters Schauna, Alisha and Nadia (owner of the brands such as Frooti and Appy)Parle Bisleri, led by Ramesh ChauhanAll three companies continue to use the family trademark name "Parle". The original Parle group was amicably segregated into three non-competingbusinesses. But a dispute over the use of "Parle" brand arose,when Parle Agro diversified into the confectionary business, thus becoming a competitor toParle Products. In February 2008, Parle Products sued ParleAgro for using the brand Parle for competing confectionary products. Later, Parle Agrolaunched its confectionery products under a new design which did not include the Parlebrand 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 itclearly specifies that its products belong to a separate company, which has norelationship with ParleProducts.

InfrastructureParle has 10 mother units in India and more than 50 CMUs (Contract Manufacturing Units). Parle is the company in world which runs on its own capital. All production is done in their own plants. They have their own machines for manufacturing of packaging and printing material.Apart from the original factory in Mumbai, Parle has manufacturing facilities at Neemrana (Rajasthan),Bangalore (Karnataka), Kutch (Gujarat), Khopoli (Maharashtra) and Bahadurgarh (Haryana). It also has several manufacturing units on contractWith the upcoming unit, Parle's biscuit manufacturing facilities on contract extends to over 15.Parle has manufacturing facilities at Neemrana (Rajasthan), Bangalore and Bahadurgarh (Haryana). Further, it has 14 manufacturing units for biscuits and five units for confectioneries on contract.The plant coming up at Kappalurindustrial estate would cater tothe Parle depot set up at MaduraiParle would supply the raw materials, fix the targets and pay the agreed cost ofconversion. OBJECTIVE: To build successful channel relationships (vendor to partner) To assess the critical success factors when selling through distributors To outline terms and conditions for establishing partnerships To integrate sales and marketing objectives To create and understand a channel plan To ensure that products has availability, visibility and freshness

NATURE OF ORGANIZATION:"PARLE AGRO is a trusted name in the Indian beverage industry and hasbeen refreshing India since more than two decades with leading brands like Frooti, Apply Classic, Apply Fizz, Bailley, Saint Juice, and LMN & recently launched Grappo Fizz. Parle Agro Pvt., Ltd. manufactures, distributes, sells, and exports fruit drinks in India and internationally. The company offers fruit and milk drinks, packaged water, and apple and mango drinks in polyethylene terephthalate (PET) bottles, containers and tetra packs. The company also operates a health and fitness studio for woman. The company distributes its products through franchisees. Parle Agro Pvt., Ltd. was founded in 1985 and is based in Mumbai, India.

Parle Agro has been a trusted name in the beverage industry providing wholesome and healthy agro-based drink brands. It has successfully launched some of India's leading beverages like Frooti, Appy and N-Joi, and packaged drinking water, Bailley, over the last two decades. In a country where health consciousness is growing at a rapid pace, Parle Agro, with its numerous fruit-based drinks, has struck a chord with the masses. It brings to the consumers the magic of premium quality fresh fruit drinks conveniently packed and available all through the year. Fruit beverages are wholesome, easy to digest, highly refreshing with natural nutritional values as compared to synthetic and aerated drinks. Parle Agro's Frooti is India's first national mango drink. The mango segment is 95% of the Indian fruit drink market and Frooti has 40% market share in the tetra pack segment. Made from fresh and premium Indian mangoes, Frooti has grown to be one of India's top 50 most trusted brands. When Parle Agro launched N-Joi with real fruits and fresh milk, it not only launched a new healthy beverage, but also created a whole new category in India. The milk shake claims to contain no preservatives and is full of nutritional goodness. Its delicious filler and apt quick refreshing nourishment for today's hectic stressful life.ORGANIZATIONAL STRUCTURE :An organizational structure is a mainly hierarchical concept of subordination of entities that collaborate and contribute to serve one common aim. Organizations are a variant of clustered entities. An organization can be structured in many different ways and styles, depending on their objectives and ambience. The structure of an organization will determine the modes in which it operates and performs. Organizational structure allows the expressed allocation of responsibilities for different functions and processes to different entities such as the branch, department, workgroup and individual. Individuals in an organizational structure are normally hired under time-limited work contracts or work orders, or under permanent employment contracts or program orders.

VISIONThe main vision of Parle is to concentrate on consumers taste and preferences. The Parle brand has grown from strength to strength ever since its inception. For fulfilling its vision they do every batch of biscuits and confectionaries are thoroughly checked by experts staff, using the most modern equipment hence ensuring the same perfect quality across the nation and abroad.

MISSIONFor over 65 years, Parle G has been a part of the lives of every Indian. From the snow capped mountains in the north to the sultry towns in the south, from frenetic cities to laid back villages, Parle G has nourished, strengthened and delighted millions. Various people have various reasons to consume it, some consume it for the value it offers while others consume it for sheer taste, For some it is a meal substitute for others it is a tasty healthy nourishing snack. Patronized by by millions for all this qualities, it is much more than just a biscuit brand. Little wonder than why is it the Largest selling Biscuit brand in the World.Today Parle is a multimillion$ company and is the market leader in many categories of biscuits and confectionaries. Today Parle enjoys a 40% share of the total biscuit market and a 15% share of the total confectionary market in India.

MARKETING STRATEGIES Intiatives taken by parle for parle -g as a marketing strategies includes targeting young generation, i.e. school going children, Associate with various Government initiative like, Primary Education scheme,As an intiative taken by National Rural health mission centres , Mid-day meals are being serve in primary school, this will help in brand registration for Parle in rural areas. Thus rural masses are most likely to associate Parle G as health food with and complete nutrition package.Parle G has adopted the Market Penetration strategy i.e. low price along with capturing of a large market Also they focus on providing good quality products at the same time, which means it uses the value pricing method.The value-for-money positioning helps generate large sales volumes for the products. Parle G is available in Re 1,Rs 2, Rs 4 to Rs 25 packet Profit margin for distributors is 4% and for retailers is 10- 12% Parle-G maintained its price of Rs.4.00 for the last 12 yrs & has seen the variation in its sales due to increase in price by mere 50p.As per the Gdsouza Coordinator of Parle products, variation of the price of Parle-G from Rs.4-5 in different states. But due to factories at strategic locations Parle-G is moving towards Uniform Pricing all over India.

AdvertisingParle-G started being advertised in the 80's. It was advertised mainly through press ads. The communication spoke about the basic benefits of energy and nutrition. In1989 Parle-G released its Dadaji commercial , which went on to become one of the most popular commercials for Parle-G. The commercial was run for a period of 6 years.Parle-G grew bigger by the minute. Be it the packs sold, the areas covered or the number of consumers. It became a part of the daily lives of many Indians. It wasn't a biscuit any more. It had become an icon .The next level of communication associated the brand with the positive values of life like honesty ,sharing and caring.The year 2002 went down as a special year in Parle-G's advertising history. A year that saw the birth of G-Man - a new ambassador for Parle-G. Not just a hero but also a super-hero that saves the entire world,especially children from all the evil forces. A campaign that was not just new to the audiences but one that involved a completely new way of execution that was loved by children all over the world . A TV commercial that showed G-Man saving the children from the evil force called Terrolene launched this campaign. It was also supported by print medium through posters and streamers put up at the retail outlets. Another campaign that was launched by Parle for Parle-G was - G mane GENIUS. For this a series of ads were shown in which a little kid eats Parle G and tricks the wise and experienced people. Within few months a reminder TV commercial was launched for Parle-G where the product is being called hindustan ki takat.Most of the Parle-G TV commercials tell us that brand awareness is being done by capturing consumer emotion.Heavy promotion plays a major role in creating brand awareness. Such is the case of Parle hide & seek biscuits television advertisements. The ads of Parle hide and seek are portraying actor Hrithik Roshan. This tells us that the product is being promoted by celebrity endorsement to increase awareness of this product and help capture the consumers attention.Sales PromotionParle uses the Sales force promotion tool for all its employees. Every year it holds day fairs at branded venues where games and fun events are organized for the employees of Parle and their families; where Parle products are give away prize.Price differentiation: Different Price in Malls & Local Grocery ShopsReason 1:People go to malls & supermarkets when they require to stock food & grocery items. So when they visit a supermarket, they buy in large quantities From our local grocery shops, we buy food & grocery items as & when required. We do not buy in bulk quantities from local grocery shops.Reason 2: The products purchased by malls & supermarkets are on wholesale basis & in very large quantities. So they can afford to give a discount to their customers The products purchased by a grocer are also on wholesale basis but not in very large quantities as compared to the malls. So they generally quote the MRP There is a difference in the price of all products that are available in malls & at our local grocery shop.

Distribution decisionThe extensive distribution network, built over the years, is a major strength for Parle Products.Parle G biscuits are available to consumers, even in the most remote places and in the smallest of villages with a population of just 1500.Parle has nearly 1,500 wholesalers, catering to 4,25,000 retail outlets directly or indirectly. A two hundred strong dedicated field force services its huge wholesalers & retailers network.Additionally, there are 31 depots and C&F agents supplying goods to the wide distribution networksFactories at strategic locations & Establishment of manufacturing units in rural areasParle 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 &retailers. Additionally, there are 31 depots and C&F agents supplying goods to the wide distribution network.So it is seen that Parle has 1 level, 2 level & 3 level distribution channels levels. Level 1 - availability to all departmental stores. Level 2- Since its an FMCG product this channel exists for customers scattered throughout the country. Level 3- Mass consumption & suitable for national & international coverage. e.g. Parles international operations consist of serving markets in the Middle East, Africa, South America, Sri Lanka, Australia and North America for which the 3 level distribution channel exists.3.1 Highlights of the companyEstablished in 1929 its first brands were Parle Glucose and Parle Monaco. Which eventually made Parle a market leader in many products markets . Parle has 14 manufacturing units for biscuits & 5 manufacturing units for confectioneries Parle has largest such manufacturing units in India. With Annual turnover 2000 crores It has provided its products to the mass with the affordable range.Involved in the overall development of younger generation with focused endeavor to built New Face of India and spread happiness & joy all over. As an institution it is dedicated to enrich the lives of people through conducting various cultural programs across all region to facilitate the all round development of the children. Every year, Parle organises Saraswati Vandana in the state of West Bengal during the festival of Saraswati Puja, inviting schools from all across the state to participate. The event is one of much fanfare and celebration, keeping alive the culture and traditions of ages.Its gives a platform to all the members of a household to showcase their creativity and being judged by immanent personalities. Thousands of families participate and celebrate the occasion on a grand scale. These events give Parle a chance to interact with children on a one-to-one basis, and promote their belief of fun and health for the whole family.Today, the great strength of Parle Products is defined by the extremely widespread distribution network . Even at the remotest places, you can buy Parle biscuits and sweets from the local grocer. Parles 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 distribution was amplified . Full time salesmen were appointed in different areas. Quality: 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.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. With products created bearing in mind both health and taste, Parle products equally appeal to fun loving kids & youth. Even today, the great tradition of taste and nutrition is consistent in every pack on the store shelves. The value-for- money positioning allows people from all classes and age groups to enjoy Parle products to the fullest.Product :A cream colored yellow stripped wrapper with a kid photo containing10 12 biscuits with the companys name printed in Red and you know these are Parle G biscuits. Times changed, variety of biscuits did come and go but nothinghas changed with these biscuits. The size of their packing has definitely changed but for the consumers good as these are money savers pack.Public relation: In the year 1997 Parle-G sponsored the tale-serial of the Indian superhero Shaktimaan that went on to become a huge success. The personality of the superhero matched the overall superb benefits of the brand. Parle extended this association with Shaktimaan and gave away a lot of merchandise of Shaktimaan. The children just could not get enough of Parle-G and Shaktimaan. In the year 2002 It was decided to bring the brand closer to the child who is a major consumer. A national level promo Parle-G Mera Sapna Hoga' Was run for a period of 6 month.CSR: As a part of Corporate Social Responsibility Policy Parle is keenly involved in the overall development of younger generation with focused endeavor to built New Face of India and spread happiness & joy all over. Parle Centre of Excellence as an institution is dedicated to enrich the lives of people through conducting various cultural programs across all region to facilitate the all round development of the children Parle Saraswati Vandhana Parle Golu Galata My Green Planet Distribution of stationery to students Sponsors for six mentally retarded children Tree plantation drive for students Empowering women by teaching them new skills.AWARDS: Since the first entry at the Monde Selection in 1971, Parle Products have been shining with golds and silvers consistently. Monde Selection is an international institute for assessing the quality of foods.Currently , it is the oldest and most respected organization in the field of selecting quality foods worldwide.

3.2 Evolution of Parle - GParle Products was established in the Vile Parle suburb of Mumbai,in 1929. It began manufacturing biscuits in 1939. In 1947, when India became independent, the company launched an ad campaign, showcasing its Gluco brand of biscuits as an Indian alternative to the British biscuits.Times changed, variety of biscuits did come and go but nothing has changed with these biscuits. Parle-G is one of the oldest brand names as well as the largest selling brand of biscuits in India. Parle-G has been a strong household name across India.The great taste, high nutrition, and the international quality,makes Parle-G a winner.No wonder, it's the undisputed leader in the biscuit category for decades.Parle-G is consumed by people of all ages, from the rich to the poor, living incities & in villages.While some have it for breakfast,for others it is acomplete wholesome meal. For some it's the best accompaniment for chai, while for some it's a way of getting charged whenever they are low on energy.Because of this,Parle-G is the world's largest selling brand of biscuits Parle-G biscuits were earlier called 'Parle Gluco' Biscuits until 1980s. The "G" in the name Parle-G originally stood for "Glucose", though a later brand slogan also stated "G means Genius".Consumer behaviorIn India it is a habit to have biscuits along with chai or tea - Parle G is referred to as "biskut" in rural areas - thus when asked for biskut to a shopkeeper it simply means Parle-G biscuit in rural areas. Understanding consumer behavior is tough. The study of consumer behavior includes the knowledge about the consumer, his buying motives & buying habits Keeping all this in mind, the factors influencing the buying behavior of consumers are:1. Reference Group :People, especially kids are always influenced by the people around them. They are influenced by friends, relatives, family members specially elder siblings,etc. so if they see anyone around them having parle-G biscuit, they too want to eat it.2. Family: In his case also, if its a usual habit of the family members to have pale-G with tea or coffee, the kids in the growing stage or any new member joining thefamily for tea will form a similar habit or the later will be offered the same biscuit.

Personal FactorsThe factors whose intensity differs from person to person are together termed as personal factors. They are as follows: -1) Age: Parle-g is consumed maximum by the kids in the age group of 5-10 years i.e. the growing age group. Kids, who have formed the habit of having Parle-G in their early stages of life, continue this practice even after growing up. They continue their consumption of Parle-G even after they grow up.2) Occupation: The buying behavior of the consumer is influenced also by the occupation he or she belongs to. In case of Parle-G, the purpose for buying the product varies from a person with a high post in a M.N.C. to a poor laborer For the executive employee, he may or may not buy the product He may buy a more expensive or an imported biscuit brand because he can afford it. Also he may buy it only to be one of the many snacks available to him. On the other hand, a poor laborer would buy a packet of Parle-G simply to satisfy his hunger. For him, it is not matter of choice or luxury, but a necessity because its the easiest & the cheapest he can get3) Income: Income of a person decides its core expenditure segment. If a laborer earns affixed amount & if a biscuit like parle-g which for sure ensures high level glucose content & immediate energy regained, he would defiantly opt to buy a parle biscuit packet & not spend even that minimal amount of Rs.5 on anything else.But since Parle-G is a low-priced, value for money product a persons income does not really play a role in influencing the purchase of the product. Consumers of all income groups do buy the productPsychological Factors1. Motivation: For Parle-G the main & the basic motivation which pulls consumers towards buying it is simply hunger. This is what pulls the consumers towards the purchase of Parle-G. Also, since biscuits are perceived as snacks, when a consumer is drinking tea he or she is motivated to buy Parle-G at that time.2. Perception: Consumers believe Parle-G to be a good quality product which is cheap too. They also perceive it to be a great snack with tea

3.3 CONSUMER VALUE of Parle-GParle-G has been a strong household name across India since so many years. The great taste, high nutrition, international quality makes Parle-g the winner amongst the consumer. Number of brands did come & go but nothing has changed with this biscuit and its loyal consumers. Parle-G is consumed by people of all ages, from the rich to the poor, living in cities & in villages.Parle- G means a lot than just a biscuitpacket to its consumers & population of this country. While some have it for breakfast, for others it is a complete wholesome meal. For some it's the best accompaniment for chai. While for some it's a way of getting charged whenever they are low on energy.The early 50s produced over150 tones of biscuits produced in the Mumbai factory.Parle-G was the only biscuit brand that was always in short supply. It was heading towards becoming an all-time great brand of biscuit. Looking at the success of Parle glucose biscuits, a lot of other me-too brands were introduced in the market. And these brands had names that were similar to Parle Glucose Biscuits so that if not by anything else, the consumer would make mistake in picking the brand. This forced Parle to change the name from Parle Glucose Biscuits to PARLE G biscuits. Parle-G Has a market share of 60% in the glucose biscuits category, worth about Rs2, 000 crore.It is the flagship brand and sells over 25 crore packs every month. This kind of facts & instances just gives us the glimpse of what Parle G means to its consumers because it is the consumer who makes BRAND PARLE G not the marketer. Positive values of life like honesty, sharing and caring as well as symbolism of healthy, tasty, and nutritious helps Parle-g to enhance its consumer value to the new heights. From its first ad campaign in 80s till date Parle-G has emphasized on its core values which are mentioned above.Since its inception Parle-G has successfully delivered what it had promised to its consumers. High quality product, excellent pricing, great taste, building loyalty through various ways, availability across India.These are the major factors that helped Parle-g to create a strong consumer value.The brand trust report ranked Parle in the 58th place as the most trusted brand in India according to Nielsen.

PRICING If we do the SWOT analysis of Parle-G.The first strength we can consider with full confidence is the Pricing.Parle company practices mass marketing for Parle- G which appeals to masses. It is a product liked by everyone and does not cater only to a specific group or part of the whole market. Thus it is mass production, mass distribution and mass promotion of Parle- G for all buyers. The Parle-Gs marketing philosophy emphasizes catering to the masses thus we can say that Parle G has adopted the Market Penetration strategy. Parle-Gs objective is- low price along with capturing of a large market. Also they focus on low prices and provide good quality products at the same time, which means it uses the value pricing method. In an interview Pravin Kulkarni, General Manager (Marketing),Parle Products says We want to cater to the masses and have consciously tried not to increase the price. Parle-G is available for Rs 50 a kg. There are very few food items that are available for Rs 50-60 a kg,This benefits Parle G by having a competitive edge in terms of large market share which is around 40%: both rural and urban presently. The value- for-money positioning helps generate large sales volumes for the product. Parle G is available in Re 1,Rs 2, Rs 4 to Rs 25 packet. Profit margin for distributors is 4% and for retailers is 10-12%. Parle-G maintained its price of Rs.4.00 for the last 12 yrs & has seen the variation in its sales due to increase in price by mere 50p. Increasing prices of basic Raw material like, Sugar, Wheat, Milk powder. This triggered to increase in manufacturing cost of the biscuits. Parle G is a very price sensitive product. Small increase in price (by 50 paise) in past had seen high decline in sales. But now Parle has learnt to keep the price consistent since last few years. Parle-G is the only brand that has held its price line at Rs 4 for 25 years now the price was last raised in 1994 by 25 paise So, its not for nothing that Parle-G is the worlds largest- selling biscuit by volumes.As we all now due to various factors in economy its very difficult to keep the price same for a very long time but the previous only 50paise hike and drastic decline in volume gave an idea to Parle that for Parle-G how much the pricing is sensitive & it really matters. But Parle- G solved this problem very smartly they opted for reducing the weight of the biscuit than increasing the price ,first from 100 gm to 92.5 gm in January 2008, and then to 88 gm in January later this year , in line with other biscuit-makers and FMCG players. In an interview given to Business standard Nirmalaya Kumar, professor of marketing at London Business School, feels its a very smart strategy. At this price point, price becomes more important than the weight of the biscuit. Its very interesting and similar to the dollar stores in the US BRANDINGThe Parle Biscuits enjoy a strong imagery and appeal amongst consumers. Be it a big city or a remote village of India, the Parle name symbolizes quality, health and great taste. And yet, this reputation has been built, by constantly innovating and catering to new tastes. This can be seen by the success of new brands, such as, Hide & Seek and Hide & Seek Milano.Brand name strategy Parle followsCompany brand name strategy - since all its products are named using the companys name as a prefix such as Parle-G, Parle- Monaco, Parle hide&seek, Parle digestive Marie, etc.Brand strategy decision: Parle follows both line extension and brand extension for its products. For a product like Parle-G it followed line extension with the introduction of Parle-G milk Shakti and Parle-G magix which has 2 flavors- choco and cashew. For Parle Monaco too it followed line extension when a new favor Monaco jeera was introduced. Similarly when it introduces any new product in the biscuit category, it follows line extension.Following are the major characteristic that Parle uses for creating the brand Parle-G.Since its inception Parle-G was positioned in the market by keeping in mind the following. Brand Positioning Positive values of life like honesty, sharing and caring. Synonymous to energy & nutrition. symbolizes quality, health and great taste.

PRODUCT MIXThe number of products carried by a company at a given point of time is called its Product Mix.The Product is a bundle of satisfaction that a customer buys. It represents a solution to a customers problem. It includes:- Physical Products Services Persons Places ,Organizations IdeasProduct Mix is a companys assortment of product lines and individual offerings.1. Product Mix Width - The number of product lines offered.2. Product Line Length - The number of different products a firm sells under a product line .3. Product Line Depth - Total number of items under each brand in the line in terms of variants, shades, models, pack sizes etc.4. Product Consistency - The uniformity of product.In reference with Parle PARLE Product Length: PARLE has 43 different products in its product line. PARLE Product Depth: Parle product depth is defined by various categories such as Parle Sweets and Parle Sweets. PARLE Product Consistency: The consistency of Parle is that the whole product mix consists of Food products only.Aspects of Product mix1. Core benefit - The core benefit of biscuits is to satisfy hunger of the consumer2. Basic product - In the second level, the basic product is biscuits.3. Expected product - The consumers expect the product to have a good taste and also give nutrition.4. Augmented product - Parle biscuits increase a persons energy levels. This is not always expected by the consumers and hence exceeds customers expectations.5. Potential product - In the future Parle could come up with different products such as a snack which could be a combo of chocolate and biscuit.

PLC OF PARLEParle as a company has reached the maturity stage in its products life cycle; since products such as Parle-G, Parle Monaco, Parle Krackjack which form a major part of Parle products sales have captured most of Indias market.But for its premium biscuits Parle hide and seek and Parle hide and seek Milanothel products are in the growth and introduction stages respectively.Rural Market of Parle - GParle 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. Parle G is increasing awareness to know parle G as brand Target young generation, i.e. school going children Parle G is a market leader in glucose biscuit category in rural marketing.Positioning of parle -g in rural market Parle-G the company has used channel and image differentiation tools in rural market Parle G by far has the most intensive distribution coverage as compared to any other biscuit company in Indian rural market . Also the name PARLE has an image that generates respect and a belief of good quality in the minds of the buyers The value-for-money positioning helps to generate large sales volumes for the parle-g. Positioning parle -g firmly in the consumer mindset was easy because of healty and nutrious quality biscuits.The success of Shaktiman from Parle-G again has tremendous scope in retailing, merchandising and event marketing. May be this was a deliberate strategy from Parle to reposition its biscuits with a shakti (power) aura against the much hyped biscuit brands. Parle-G eventually might use the Shaktiman umbrella strategy to replicate the success for its other brands in these markets.

Chapter 4Industry Profile

The new name of the game in the world of fast moving consumer goods is branded upon different segments. Different company lays special emphasis on sales and distribution and merely the day to day need of the people. While the product were at high speed and given that demand is growing and the supply side is ready to go, infrastructure could found a robust foundation for building the trajectory for the return to high growth. The potential gains are enormous in Britannia and sustain to p potential gains are enormous in Britannia and sustain to pave its feet to gain new height in foreign countries.

Performance tracking lets you step back and evaluate your competitiveness in the market by taking a critical look at your products and the important metrics associated with them .The products are used to satisfythe customers within a stipulated period of time with low cost and earning high profits. In this industry, there is distribution part which wide open for other retailers to maintain special products which are more likely to move in the market. For a start up, cash is the most critical element in FMCG industry and keep operating smoothly. The cash flows for the distribution process could be positive.

GENERAL VIEWProducts which have a quick turnover, and relatively low cost are known as Fast Moving Consumer Goods (FMCG).

FMCG products are those that get replaced within a year, examples of FMCG generally include a wide range of frequently purchased consumer products such as toiletries, soap, cosmetics, and tooth cleaning products, shaving products and detergents, as well as other non-durables such as glassware, bulbs, batteries, paper products, and plastic goodsFMCG may also include pharmaceuticals, consumer electronics, packaged food products, soft drinks, tissue paper, and chocolate bars.The volume of money circulated in the economy against FMCG products is very high. Number of products the consumer use is very high, competition in the FMCG sector is very high resulting in high pressure on marginsFMCG companies maintain intense distribution network, companies spend a large portion of their budget on maintaining distribution networksNew entrants who wish to bring their products in the national level need to invest huge sums of money on promoting brands.

Manufacturing can be outsourced. A recent phenomenon in the sector was entry of multinationals and cheaper imports, also the market is more pressurized with presence of local players in rural areas and state brands.

Scope of FMCG industry:-

The term FMCG refers to those retail goods that are generally replaced or fully used up over a short period of days, weeks, or months, and within one year. This contrasts with durable goods or major appliances such as kitchen appliances, which are generally replaced over a period of several years. FMCGs have a short shelf life, either as a result of high consumer demand or because the product deteriorates rapidly

FMCG industry in Indian perspective Indias FMCG sector is the fourth largest sector in the economy and creates employment for more than three million people in downstream activities. Its principal constituents are Household Care, Personal Care and Food & Beverages. The total FMCG market is in excess of a high growth. It is currently growing at double digit growth rate and is expected to maintain a high growth rate. FMCG Industry is characterized by a well-established distribution network, low penetration levels, low operating cost, lower per capita consumption and intense competition between the organized and unorganized segments. Market share movements indicate that companies such as Marico Ltd and Nestle India Ltd, with domination in their key categories, have improved their market shares and outperformed peers in the FMCG sector. r. This has been also aided by the lack of competition in the respective categories. Single product leaders such as Colgate Palmolive India Ltd and Britannia Industries Ltd have also witnessed strength in their respective categories, aided by innovations and strong distribution. Strong players in the economy segment like Godrej Consumer Products Ltd in soaps and Dabur in toothpastes have also posted market share improvement, with revived growth in semi-urban and rural markets.Overview Indian FMCG Sector FMCG Industry is expected to have a market of 40,000 crore by 2020 according to ministry of food. Fourth largest sector in the economy with a total market size in excess of US$ 13.1 billion. Strong MNC presence and is characterized by a well-established distribution network, intense competition between the organized and unorganized segments and low operational cost. Availability of key raw materials, cheaper labor costs and presence across the entire value chain gives India a competitive advantage. The FMCG market is set to treble from US$ 11.6 billion in 2003 to US$ 33.4 billion in 2015. Penetration level as well as per capita consumption in most product categories like jams, toothpaste, skin care, hair wash etc. in India is low indicating the untapped market potential. Burgeoning Indian population, particularly the middle class and the rural segments, presents an opportunity to makers of branded products to convert consumers to branded products. Growth is also likely to come from consumer 'upgrading' in the matured product categories. With 200 million people expected to shift to processed and packaged food by 2010, India needs around US$ 28 billion of investment in the food-processing industry. Factors affecting Indian FMCG industry:Large domestic market India is one of the largest emerging markets, with a population of over one billion. India is one of the largest economies in the world in terms of purchasing power and has a strong middle class base of 300 million.Rural and urban potential Around 70 per cent of the total households in India (188 million) reside in the rural areas. The total number of rural households is expected to rise from 135 million in 2001-02 to 153 million in 2011-12. The Indian rural market with its vast size and demand base offers a huge opportunity for investment. Rural India has a large consuming class with 41 per cent of Indias middle-class and 58 per cent of the total disposable income. With population in the rural areas estimated to have risen to 153 million households by 2009-10 and with higher saturation in the urban markets, future growth in the FMCG sector will come from increased rural and small town penetration. Technological advances such as the Internet and e-commerce will aid in better logistics and distribution in these areas.Critical operating rules in Indian FMCG sector: Heavy launch costs on new products on launch advertisements, free samples and product promotions. Majority of the product classes require very low investment in fixed assets Existence of contract manufacturing Marketing assumes a significant place in the brand building process Extensive distribution networks and logistics are key to achieving a high level of penetration in both the urban and rural markets Factors like low entry barriers in terms of low capital investment, fiscal incentives from government and low brand awareness in rural areas have led to the mushrooming of the unorganised sector Providing good price points is the key to successMarket size of FMCG industry in India:Fast moving consumer goods (FMCG) sector in India is one of the largest sectors in the economy with estimated total market size of around Rs 120,000 crore in 2012. After sluggish growth for couple of years through 2002-2004, the segment has picked up the speed again and has been clocking substantial growth numbers during last 5-6 years. The sector also continued to do reasonably well following the global financial crisis as the rural India, which has become the new demand heaven for the industry, remained largely aloof from the slowdown. With the Indian economy now back on the high growth trajectory, the industry has massive potential to grow further, particularly in rural Indian and the high end products as expected size will be around Rs. 180 crore in 2015. FMCGs growth story started the deregulation of Indian economy in early 1990s which saw dismantling of the license raj, resulting in a spurt in new companies and entry of a number of foreign brands. With relatively lesser capital and technological requirements, a number of new brands emerged domestically as well while the relaxed FDI conditions led to induction of many global players in the segment. Both these factors resulted in leading to rapid development of the FMCG market in India.

Segment of Indian FMCG industryIndian FMCG sector is characterized by strong presence of multinational companies. The segment of Indian FMCG industry has various segments like personal care, household, food products etc. Compared to other manufacturing sectors, FMCG is relatively much less capital-intensive. But the sector demands high expenditure on branding and distribution. Most companies in the sector create value through product differentiation, package innovation, and differential pricing and highlighting the functional aspect of their products.

Here we can see in the above pie chart it shows that the other segment occupied 43% whereas hare care, over the counter (i.e. drug), household, food products, personal care, baby care, fabric care occupied 8%, 4%, 4%, 5%, 22%, 2%, 12% respectively.Chapter 5Biscuit Industry in India - Current ScenarioBiscuit industry in India in the organized sector produces around 60% of the total production, the balance 40% being contributed by the unorganized bakeries. The industry consists of two large scale manufacturers, around 50 medium scale brands and small scale units ranging up to 2500 units in the country, as at 2000-01. The unorganized sector is estimated to have approximately 30,000 small & tiny bakeries across the country. In terms of volume biscuit production by the organized segment in 2001-02 is estimated at 1.30 million tonnes. The major Brands of biscuits are - Brittania, Parle , Bakeman, Priya Gold,Elite,Cremica, Dukes, Anupam, Horlicks, Craze, Nezone,The annual production of biscuit in the organized sector, continues to be predominantly in the small and medium sale sector before and after de- reservation. The annual production was around 7.4 Lakh tonnes in 1997-98 In the next five years, biscuit production witnessed an annual growth of 10% to 12%, up to 1999-00.The annual Growth showed a decline of 3.5% in 2000-01, mainly due to 100% hike in Central Excise Duty (from 9% to 16%). Production in the year 2001-02 increased very marginally by 2.75% where in 2002-03 the growth is around 3%.The Indian biscuit industry has a yearly production of almost INR 3 thousand crores and is the biggest among all the food based industries operating in the country. The Indian subcontinent on the whole is regarded to be one of the top producers of biscuits in the world along with countries like the US.The industry can be classed into two separate sectors organized and unorganized. Biscuits and breads are the major components of the Indian bakery industry and together these two account for almost 80 percent of the aggregate production. The biscuit industry is said to have a better production and value level than the bread.Nowadays the biscuit industry contributes approximately 33 percent of the total production of the bakery industry. 70 percent of the biscuits in India are produced by the small scale sector that is made up of both the non factory and factory workers.These smaller entities have also prevented leading companies like Cadbury, Brooke Bond, and Nestle from entering the biscuit market. The Federation of Biscuit Manufacturers of India (FBMI),set up by the Union Government in 1953, has stated that in the coming years the industry will see an approximate yearly growth of 15 percent and the exports will also successfully reach the global markets. Per capita consumption of biscuits in India has been estimated at 2 kilos. India is also one of the leading producers of biscuits in the world along with the US and China. Approximately 17 percent of the biscuits produced in India is exported to locations such as Haiti, Gahana, Angola, UAE &The US. It has also been calculated that the biscuit imports do not form a significant part of the production, which has been estimated at INR 4350 crores. A huge appetite for Indian biscuits is being created abroad as the World Food Programme (WFP) supplies cartons of 100 gm packs of fortified glucose biscuits carrying the slogan "Gift of the Govt. and People of India" to feed Pakistani and Iraqi kids.Biscuit is a comparatively low margin food product in the PMCG (Packaged Mass Consumption Goods ) sector. The commodity is also price sensitive, as a consequence of which, even when the Excise Duty was doubled on biscuits in 2000-01 biscuit manufacturers, including the major brands, were not able hike MRPs to the extend of the steep increase in the Duty.Growth rate of the Indian biscuits market.The Indian biscuit industry is the largest among all the food industries and has a turnover of around Rs80bn and it is growing at the rate of 12-15% pa. Biscuit Biscuit industry in India in the organized sector produces around 70% of the total production, the balance 30% being contributed by the unorganized bakeries. The unorganized share is shrinking over a period of time.The Union Budget for 2003-04 granted 50% reduction in the rate of Excise Duty on Biscuit i.e. from 16% to 8%. The Federation's estimate for the current year indicates a growth of approximately 8% to 9%.Challenges faced by the industryBiscuit is a nutritious snack food hygienically processed & packaged and being a highly price sensitive and low margin industry, it is being threatened by VAT by the State Government @ 12.5% on biscuits, compared to VAT @ 4% or 0% on other similar food products. The imposition of Value-Added Tax (VAT) at the highest rate of 12.5% on biscuits is resulting in low demand pick-up and subsequent losses to the biscuit industry.Besides lack of technology upgradation in manufacturing, packaging etc has also been a factor affecting our industry, along with inadequate financial credit and support particularly for the medium and small scale biscuit units. Industries such as Biscuit are also languishing as they are not able to achieve their potentials for higher production, in the absence of the concrete food Processing Industry Policy. FBMI in close coordination with other organizations and apex Chambers, initiated to urge the Govt of India to formulate a comprehensive Policy Document, for smooth growth and harmonious development of the industry. The Food Processing Industry Policy, which has been evolved as a result of various workshops, deliberations and representations by a large cross section of food processing industries, is yet