Parle Products Limited1

Parle Products Limited

Sameer Alve –Section A

PART A

EXTERNAL INDUSTRY ANALYSIS

Industry Trend• The biscuit industry is been experiencing

steady growth of 14-15% annually. • In 2008, the growth exceeded 16% mark on

account of exemption from • Central Excise Duty on biscuits.

Two Sectors of Biscuit Industry

Annual Production:

• The organized biscuit manufacturing industry‘s annual production figures show YOY growth indicating rising consumption pattern in India.

Industry Players

Other Players• HLL, • Bisk Farm, • Anmol, • Elite, • Cremica, • Dukes, • Anupam, • Craze, • Nezone

Major Market Share Holders –Organized Sector

PEST

Opportunities & Threats

Strategic Maps

Strategic Maps

Strategic Maps

Strategic Maps

KSFs & Threshold Factors

Matrix –Put market share as last row

PART B

• INTERNAL ANALYSIS

Parle -Company Background

• • India's largest manufacturer of biscuits for • almost 80 years.• • With a reach spanning even the remotest • villages of India.• • 35% share of the total biscuit market in

India.

Parle Values

• “The great tradition of taste and nutrition is • consistent in every pack on the store shelves, • even today. The value-for-money positioning • allows people from all classes and age groups • to enjoy Parle products to the fullest”

• Parle Products –Biscuits• • Parle –G• • Krackjack• • Monaco• • Kreams• • Hide & See• • Marie• • Milk Shakti

Parle Production Factories

Competency Ladder

Strategic Competencies

Value Proposition

SWOT

Recommendations

• To get benefits of growing biscuit industry, I have following 3 recommendations to

Parle.

Recommendation-1• Promotion of Parle brand• a. Promote Parle brand through schemes such as “Parle Gramin Swastha• Yojana” (a network of ambulance van visiting rural areas giving basic • medical treatments educating people on nutrition deficiency problems • and promoting Parle nutritious products)• b. Promote Parle brand through T. V. shows such as “Parle Sakhi” (“Parle -• Friend of Women”). The weekly T. V. show will cater to health issues of • women and children and will explain long term benefits of healthy diet)• Results Expected – Improved sales through “Top of mind recall”.• Reduced competition for ‘visible shelf space’ in small grocery • and retail stores.• Brand Loyalty.• Communicating Parle value of ‘Nutrition Product’.

Recommendation-2• Study revenue and cost of each of the SKUs (products) of Parle• ITC’s entry into the biscuit industry will pose challenges to the number one

position • Parle has held over decades. Before further diversifying into producing more • products to cater to market niche, I recommend Parle to carry out detail study of • each SKU. • This is to avoid adding more complexity to existing production & distribution • process with addition of SKU eventually leading to lowered net income.• Results Expected –The study should help Parle forecast and plan future launches, • stop producing unprofitable products and focus on emerging / • highly demanded products.• The study will also help Parle utilize its deep distribution • channels effectively and efficiently as per consumer demand.

Recommendation-3• Advertise products segment wise as follows• a. Nutritious/Glucose biscuits • Advertisement by doctors/dieticians to explain the benefits to heath • conscious consumers• Advertisement by cricketers (Cricket is a very popular game in India) to • attract youth• b. Cream biscuits• To be endorsed by bollywood(film) starts• c. Marie • To be advertised as a family tea time snack• Results expected – Increased penetration in rural, • southern and eastern market.• Attracting health & diet conscious people.

INDUSTRY Framework

How the industry success factors will change over next 8-10 years?

Biscuit industry going forward

• With GDP growing at average of 8% and • government’s spending on infrastructure • projects, many local distributors will evolve • and existing players will have penetrated deep • inside urban and rural markets.

Thus, Distribution will no longer be a KSF

Promotion & Alliances will emerge as new KSFs

• Promotion –Industry’s ability to connect to large • population through various promotional events (such as • school’s industry visits to plant, talk & TV shows, rural • programs) to target different age segment will decide the • market share.• Alliances –The biscuit manufactures able to maintain • good relations with distributors, whole sale suppliers and • regional institutions (through CSR and other community • oriented activities) will have greater market share due to • BUZZ (mouth publicity) and media attention.

Will Price be still a success factor?

• Yes, very much.• The industry players will try to lower the • procurement, production and distribution costs • through programs such as JIT, JITD, TQM, Per

SKU • cost/Revenue analysis and will pass on these

benefits • to end consumers in terms of lowered prices.

What will the new value proposition be for Parle?