kls gogte institute of technology department of management studies and research belgaum -590006 2014 Academic Live Project For MBA Second Semester Parle Products Pvt Ltd By: b.b. shiggatti USN: 2GI13MBA08 Guided by: Prof. S. N. KHANAI udyambag, Belgaum - 590006 Parle products pvt ltd KLS Gogte Institute of Technology, MBA-2014
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kls gogte institute of technologydepartment of management studies and research belgaum -590006
2014
Academic Live ProjectFor MBA Second Semester
Parle ProductsPvt Ltd
By: b.b. shiggattiUSN: 2GI13MBA08
Guided by:Prof. S. N. KHANAI
u d y a m b a g , B e l g a u m - 5 9 0 0 0 6
Parle products pvt ltd
KLS Gogte Institute of Technology, MBA-2014
Parle products pvt ltd
KLS Gogte Institute of Technology, MBA-2014
Table of contentsIntroduction to Company
Industry Analysis
History of company
Vision, Mission and objectives of the company
PEST analysis
Marketing Management
a. Segmentation, Targeting and Positioning
b. Product and services offered by company
c. Pricing strategies
d. Promotion strategies.
e. Distribution strategies
f. Customer relationship management
Human resource Management
a. Recruitment, selection and training strategies.
b. compensation management
c. Performance management
d. Career Planning
e. Organization Structure
Financial management
a. Capital decisions
b. Ratio Analysis.
c. Working capital management.
SWOT analysis
Corporate Social responsibility
Parle products pvt ltd
Introduction to PARLE – G
A cream colored yellow stripped wrapper with a cute baby photo containing10 – 12
biscuits with the company’s name printed in Red and you know these are ‘Parle G’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 sellingbrand of
biscuits in India. Parle-G or Parle Glucose is a brand of Biscuits manufactured by Parle
products in India.
Parle name conjures up fond memories across the length and breadth of the
country. After all, since 1929, the people of India have been growing up on Parle biscuits
& sweets. For around 75 years, Parle have been manufacturing quality biscuits and
• Appeal to all income groups : The product is appealing to the consumers as the target
audience is basically kids. This product is suitable to all Income group.
• Low and mid range price Segments: The pricing of the product is of low and mid range
so as it suits every ones pocket
• Value for money: Value for money allows all age group to enjoy parle products at fullest
• Strict cost control at every point in supply Chain: It reaches 2.5 million outlets,
including villages with a population of 500 people
Penetration Strategy: keeping high quality and maintains low price.
Previously sets its price as per the geography, freight cost for reaching remote
places is quite high.
As per the G’dsouza, 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 the INDIA.
Alternatives to Increasing Price
Reducing product size, using less expensive materials, unbundling the product
Buyer reactions to price changes must be considered
KLS Gogte Institute of Technology, MBA-2014
Parle products pvt ltd
MARKETING STRATEGY OF PARLE .
LATEST STRATEGY:
As part of its marketing initiative, Parle Products has recently adopted a major pricing
strategy whereby a 5 kg ‘Parle-G’ Atta will be available to consumers and, along with
‘Parle-G’ biscuit pack for free at Rs 90. However, competitors, ‘Pillsbury’ atta are priced at
Rs 104, and, ‘Kissan Annapurna’ at Rs 102, in similar capacity.
AVAILABILTY
Parle-G is available in Europe, UK, USA, Canada, etc. In Canada, it is sold by Zehrs, Food
Basics, Loblaw’s, etc for only 99 cents for a 418 gram pack. Parle-G or Parle Glucose
biscuits, manufactured by Parle Products Pvt Ltd, are one of the most popular biscuits in
India. Parle-G is one of the oldest brand names as well as the largest selling brand of
biscuits in India. For decades, the product was instantly recognized by its iconic white and
yellow wax paper wrapper with the depiction of a young girl on the front. Counterfeit
companies have attempted to recreate and sell lower quality products of similar names
with virtually identical package and design
.
MARKET SHARE:
It has 70% market share in India in the glucose biscuit category followed by Britannia,
Tiger (17-18%) and ITC's Sunfeast (8-9%). The brand is estimated to be worth over Rs
2,000 crore (Rs 20 billion), and contributes more than 50 per cent of the company's
turnover (Parle Products is an unlisted company and its executives are not comfortable
disclosing exact numbers). Last fiscal, Parle had sales of Rs 3,500 crore (Rs 35 billion). It
also is popular across the world and is starting to sell in Western Europe
KLS Gogte Institute of Technology, MBA-2014
Parle products pvt ltd
MARKETING MIX
Product Strategy
Core benefit- the core benefit of biscuit is to satisfy hunger of the consumer.
Basic product- in the second level, the basic product is biscuits.
Expected product- the consumers expect the product to have a good taste and also give
nutrition.
Augmented product- Parle biscuits increase a person’s energy levels. o Potential
product- in the future Parle could come up with different products.
MARKET STRENGTH:
The extensive distribution network, built over the years, is a major strength for Parle
products. Parle biscuits & sweets are available to consumers, even in the e most remote
places and in the smallest retail outlets. Parle has nearly 1,500 wholesalers, careering to
4,25,000 retail outlets directly or indirectly. A two hundred strong dedicated field force
services there wholesalers and retailers. Additionally, there are 31 depots and C&F agents
supplying goods to the wide distribution network. Parle constantly endeavor at designing
products that provide nutrition and fun t o the common man. Most Parle offerings are in the
low and mid-range price segments. This is based on their understanding of the Indian
consumer psyche. The Value for money positioning helps generate large sales volumes
for the products. However, Parle Products also manufactures a variety of premium
products for the up-market, urban consumers. And in this way, caters a range of products
to a variety of consumers
KLS Gogte Institute of Technology, MBA-2014
Parle products pvt ltd
DISTRIBUTION STRATEGY
Intensive Distribution
Parle uses Intensive Distribution for Parle G. This is the ideal strategy for the market
leader as intensive distribution has the following advantages:
Increases coverage and sales
Increases product availability
Encourages retailers to compete aggressive. Higher competition leads to narrower
margins for the retails hence, increases the ultimate margin for the manufacturer.
The Channel Members of the Distribution Network of Parle
The Parle distribution network for biscuits has essentially four levels as enlisted below:
Parle Depots
Wholesalers and Distributers
Carry Forward Agents (if required)
Retailers
The Channel Members and Logistics
Parle has nearly 1500 wholesalers, catering to 425000 retail outlets directly or indirectly.
A two hundredstrong dedicated field force services these wholesalers and retailers.
Additionally, there are 31 depotsand Carry and Forward agents supplying goods to the
wide distribution network.Parle has level 1, level 2, level 3 distribution channels levels.
Level 1:
Availability of Parle G biscuits at all departmental stores across the length and breadth of
the country.
Level 2:
Since it's an FMCG product this channel exists for customers scattered throughout the
country.
Level 3:
KLS Gogte Institute of Technology, MBA-2014
Parle products pvt ltd
Mass consumption and suitable for National and International coverage. For e.g. Parle's
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.
Channel Dynamics
Parle has a multi-channel marketing system since it uses more than two marketing
channels to reach all its customer segments.
The Parle Distribution Network Logistics
Selection of Channel Members for Parle
Parle takes into consideration a host of factors while selecting the channel members. This
is because it believes that selection of channel members is a long run decision and the
rest of the decision regarding the supply chain depends upon the efficiency and coverage
by the channel members. The following are the host of factors considered by the company
in selecting the channel members:
Authentication is required by the regarding the identity of the channel members, which
includes the name and address, photograph of the location.
Proof of solvency which requires name and address of the channel members bankers
Safety of the inventory, which means that the distributor/ dealer should get the stock of
the company insured.
Inventory or the perishable goods kept by the distributor/ dealer should be in good
condition which means a detail of storage space and Refrigeration facility is to be
provided.
Details of the delivery vehicle, which includes the following:
Light Commercial Vehicles,
Matador,
3 Wheeler Van,
Tricycle Van and Hand/Push cart.
KLS Gogte Institute of Technology, MBA-2014
Parle products pvt ltd
The number and model of each of the vehicle needs to be furnished to the
company.
Company acknowledges the fact that it needs to be sensitive to the market
demands. For this it requires that a number of salesmen needs to be present on the
field.
The salesmen too are divided into various categories like
The Field salesmen
Counter salesmen
The details of Clerical Staff and labor are to be provided. The technical competence
of the salesmen needs to be mentioned.
Details of the various products of other companies that the channel member keeps
have to be provided. The following also need to be furnished with the above:
The annual sales of these products have to be mentioned.
Details of complementary products and product lines need to be mentioned.
Dealers of the company must carry a good reputation. This is due to the fact that
Parle believes that the reputation of the dealer affects the clientele in the long run.
Market coverage by the distributors needs to be defined which includes details of
Geographic coverage and Outlets per market area.
The company also requires the dealers to furnish any Advertising and Sales
initiative undertaken by them on behalf of the company.
KLS Gogte Institute of Technology, MBA-2014
Parle products pvt ltd
THE WORK OF THE HUMAN RESOURCES DEPARTMENT
We all know that recruitment and selection is one of the tasks that the HR
department fulfills. The other tasks will be discussed below:
Recruitment and selection: Involves selecting and attracting the best workers.
Wages and salaries: Must be enough to motivate or attract workers.
Industrial relations: There must be effective communication between
departments.
Training programs: Must meet the training needs of employees and accomplish
business objectives.
Health and safety: Must do things according to the law.
Redundancy and dismissal: Must obey all laws when firing workers.
Recruitment and selection
Workers are needed when a business starts up, expands or an existing employee
leaves. Businesses use the recruitment process to successfully employ the right
people. This process is usually undertaken by the HR department, but in small
business, HR departments do not exist since the businesses employ too little workers
for it to be of much use. Here is a diagram summarizing the recruitment process.
KLS Gogte Institute of Technology, MBA-2014
Parle products pvt ltd
Vacancy arises.
A job analysis is done, which identifies the responsibilities and tasks of the job.
A job description lists that responsibilities and tasks to the candidates who apply for
the position.
A job specification outlines the required qualifications, expertise and experience a
candidate needs so that they can be accepted.
The job is advertised in the appropriate media. (e.g. newspapers)
Candidates fill out application forms, which are short-listed so that only the best
candidates remain.
Interviews are held with remaining candidates, and the ones suitable for the job
are selected.
.
The recruitment process
Job analysis and description:.
When a new employee is needed, a job analysis needs to be taken to identify the tasks and responsibilities of the position. This should be easy for a job that needs replacement, but not so much for a job that has just been created.
Once all the details of the job has been gathered, a job description needs to be drawn up. This job description has several functions:
Given to candidates so they will know what the job will involve.
Allows a job specification to be drawn up which will state the requirements for the job.
Shows whether an employee carries out the job effectively or not. It helps solve disputes between employees and employers about wages, working hours, etc.
The job description for any business will usually contain:
KLS Gogte Institute of Technology, MBA-2014
Parle products pvt ltd
The title of the job.
The department one will work in.
Who will be in charge of the job-holder.
Who the job-holder will be in charge for.
The purpose of the job (job summary).
The main duties of the job.
Job description sometimes contains information about:
The conditions of employment – working hours, wages, pension schemes.
Training that will be offered.
Opportunities of promotion.
Job specification
After the job description has been drawn up, the qualifications for the job can be identified. They usually include:
The level of educational qualifications.
The amount and type of experience.
Special skills, talents or knowledge.
Personal characteristics. (e.g. type of personality)
Advertising the vacancy
The next stage is on how to get people to know that you have a job to be filled.
Internal recruitment
The vacancy can be filled by an employee already in the business. It might be suitable for employees seeking promotion.
KLS Gogte Institute of Technology, MBA-2014
Parle products pvt ltd
Pros of internal recruitment:
Saves time and money.The candidates' reliability, ability and potential are already known.
The candidates know the expectations and rules of the company.
Motivates other employees to work harder to get promoted too.
Cons of internal recruitment
No new ideas or experience come into the business.
May create jealousy and rivalry between existing employees.
External recruitment
Most vacancies are filled with external recruitment, which always involves advertising the vacancy. Here are some suitable media of advertising:
Local newspaper: Usually for office and manual workers. These people are plenty since the job does not require too much skill.
National newspaper: Used to find workers for senior positions that requires a lot of skills. It can be read by people anywhere in the country or overseas.
Specialist magazines: Used for particular technical specialists such as physicists. Can be used to hire people in the home country or abroad.
Recruitment agencies: Keeps details of qualified people, and will send the suitable applicants to interviews when a business asks for a worker. Many businesses prefer to use recruitment agencies to find them workers because it is easier. However, it is expensive since their fee is based on a percentage of the workers pay.
Government job centers: Place where businesses can advertise their vacancies. These vacancies are usually for unskilled or semi-skilled workers.
Possible effects of government legislation on the recruitment process
Many governments pass laws to create equal employeeopportunities. They state that all employees should be treated equally in the work place and receive the same salary for doing the same job. People of any sex and people with
KLS Gogte Institute of Technology, MBA-2014
Parle products pvt ltd
disabilities are treated equally. Therefore, businesses need to be careful when advertising and treating their employees because they could be prosecuted and fined.
Job advertisement
This is what a business needs to decide when drawing up an advertisement:
What should be included.
Job description
Job specification
Where the ad will be placed. (depends on job)
Advertising budget. (depends on job)
Applications forms and CVs/résumés
When a person applies for a job, he will have to fill out an application form, or write an application letter with a CV enclosed. CVs are descriptions about one's qualifications and skills in a set format.
Businesses will use application forms and CVs to see whether an applicant match the job specifications or not. The closest matching applicants are invited to interviews in the selection stage. A short-list is drawn up.
Interviews
Applicants who are invited to interviews will have provided the names and addresses of their references. These people can give their opinions on the reliability, honesty and skills of the applicants and they will be likely to tell the truth because the applicants will not know what they have said.
Interviews are the most popular form of selection. However, interviews are not always the most reliable process of selection. They aim to find out these things:
The applicant's ability to do the job.
Personal qualities that are advantageous and disadvantageous.
General characteristics – whether they can "fit in"?
KLS Gogte Institute of Technology, MBA-2014
Parle products pvt ltd
PERFORMANCE MANAGEMENT
Performance Management includes activities which ensure that goals are consistently
being met in an effective and efficient manner. Performance management can focus on
the performance of an organization, a department, employee, or even the processes to
build a product of service, as well as many other areas.
PM is also known as a process by which organizations align their resources, systems and
employees to strategic objectives and priorities.
Performance management originated as a broad term coined by Dr. Aubrey Daniels in the
late 1970s to describe a technology (i.e. science imbedded in applications methods) for
managing both behavior and results, two critical elements of what is known as
performance.[2] A formal definition of performance management, according to Daniels' is "a
scientifically based, data-oriented management system. It consists of three primary
elements-measurement, feedback and positive reinforcement.
CAREER PLANNING
Join us and you'll not only become part of one of the largest Indian brands, but a
constantly evolving organization that offers a culture of flexibility, opportunity, equality and
diversity. You just need to come and have a look at what we have to offer.
We believe that work is more than a place you go every day. It should be a place of
exploration, creativity, professional growth and interpersonal relationships. It's about being
inspired and motivated to achieve extraordinary things. We want our people to take pride
in their work and in building brands others love.
Just to give a preview to what one can look forward to: Group lunches and outstation
team-building exercises, discussion forums and training programs, yoga trainings, health
check-up camps are just a few among the exciting things we do…