A Report On MARKETING STUDY OF PARLE SUBMITTED BY: MISS. PAYAL SHANKAR AWERE TYBMS Sem (V) PROJECT GUIDE : PROF. PRAJNA SHETTY SUBMITTED TO: UNIVERSITY OF MUMBAI Rajasthani Sammelan’s Ghanshyamdas Saraf College of Arts & Commerce Affiliated to University of Mumbai Reaccredited by NAAC with ‘A’ Grade 1
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A Report On
MARKETING STUDY OF PARLE
SUBMITTED BY:
MISS. PAYAL SHANKAR AWERE
TYBMS Sem (V)
PROJECT GUIDE :
PROF. PRAJNA SHETTY
SUBMITTED TO:
UNIVERSITY OF MUMBAI
Rajasthani Sammelan’s
Ghanshyamdas Saraf
College of Arts & Commerce
Affiliated to University of Mumbai
Reaccredited by NAAC with ‘A’ Grade
R. S. Campus, S. V. Road,
Malad (West), Mumbai – 400064
A. Y. 2013 - 2014
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Rajasthani Sammelan’s
Ghanshyamdas Saraf
College of Arts & Commerce
Affiliated to University of Mumbai
Reaccredited by NAAC with ‘A’ Grade
R. S. Campus, S. V. Road,
Malad (West), Mumbai – 400064
CERTIFICATE
I, Prof. Prajna Shetty hereby certify that Miss. Payal Shankar Awere, a student
of Ghanshyamdas Saraf college has completed project on “MARKETING
STUDY OF PARLE” in the Academic Year 2013 – 2014.
Thus information submitted is true and original to the best of my
knowledge.
External Examiner: Principal:
Date:
Project co – ordinator: College Seal:
Date:
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ACKNOWLEDGEMENT
I take this opportunity to thank the UNIVERSITY OF MUMBAI for giving me a chance to
do this project.
I express my sincere gratitude to Principal Mrs. Sujata Karmarkar, Course Coordinator
Mr. Rohan Korgaonkar, Guide Prof. Prajjna Shetty and our librarian and other teachers for
their constant support and helping for completing the project.
I am also grateful to my friends for giving support in my project. Lastly, I would like to thank
each and every person who helped me in completing the project especially MY PARENTS.
SIGNATRUE
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EXECUTIVE SUMMARY
The report is an earnest endeavour made to understand the present market scenario in
biscuits captured by the Parle and the other competitor’s brand viz., Britannia, Priyagold ,
and ITC. We are required to see the coverage by the Parle Product Pvt. Ltd., and bring out
the potential and loyal retailers so that the company could maintain the market leadership
in the existing business scenario in the biscuit and the confectionaries. The study
encompasses the penetration of the existing Parle Products (Biscuits and Confectionaries)
and the market potential for the new product like Golden Arch, Nimkin, Monaco Funion,
Melody Softee, Mazelo. Their motives were to study the working of the distributors in
Mumbai market. They have mentioned the problems and the loop holes in the Parle’s
distribution system and the promotional tools, which they have found during the course of
study and recommended various corrective measures for it. I also studied the behaviour of
consumer about their preferences for Biscuits, Candies, and their overall buying behaviour
with the help of questionnaire.
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OBJECTIVES OF THE STUDY
PRIME OBJECTIVES
To study marketing in detail.
To know importance of marketing.
To understand the concept of marketing clearly by means of Parle biscuit
demand analysis.
To find out the marketing strategy used by the Parle & Parle Agro.
OTHER OBJECTIVES
To find out the competitive activity and merchandising through retailer of
PARLE G BISCUIT.
To find out the consumer preference according to retailer view.
To find out the satisfaction levels towards service provide by PARLE G.
To find out the major competitor of PARLE G BISCUIT.
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RESEARCH METHODOLOGY
DATA COLLECTION METHOD
Data collection is an elaborate process in which the researches makes a planned
research for all relevant data. Data is the foundation of all market research. Data are
facts may be obtained from several sources. Data can be classified as:
PRIMARY DATA
SECONDARY DATA
PRIMARY DATA
It is gathered for the first time by the researchers. If the secondary data is found
to be inadequate or unavailable, the researcher goes for primary data.
COLLECTION OF PRIMARY DATA
The researcher was assigned to do a comparative study on PARLE G BISCUIT.
In order to accomplish the job, the researcher adopted the two-way strategy to
collect the primary data. Secondly to complete the job in a more genuine way,
retailer survey was conducted sample of 20 rational retailers were taken and they
were supplied with a structured non-disguised questionnaire. The idea was to seek
out the market position of Parle G biscuit.
The data collected was to collected from different wholesale & retail outlets of
biscuit namely
Shop
Confectioners
Kirana and general stores.
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SECONDARY DATA
Secondary data is the data borrowed from secondary sources by the researcher.
Secondary data can be internal or external i.e., internal records of the company or
information available from library and other statistical organization. In a market
Research Project Field Work Has a very vital role to play. As a matter of fact,
it’s the back bone of any Market Research Project Field work basically consists of
collection of primary data, In this project, researcher had to undergo a lot of Field
Work.
For the purpose researcher has visit various cinema halls , public attractive places,
colleges & school canteens etc. The whole area which was to be surveyed was
divided into different segments randomly. Simultaneously survey of both retailers and
consumers was carried out. The researcher worked in the field for a span of one
& half months. Later on whole data which was collected from field was well
scrutinized & tabulated for analysis. Its interpretation has been provided in most
easy to understand manner with the help of suitable diagram & charts.
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CHAPTER 1
INTRODUCTION
Parle Products 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, the Parle name symbolizes quality, nutrition and great taste. With a reach
spanning even to the remotest villages of India, the company has definitely come a very long
way since its inception.
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 confectionary market in India, Parle has grown to
become a multi-million dollar company. While to the consumers it's a beacon of faith and
trust, competitors look upon Parle as an example of marketing brilliance.
Over the years Parle has grown to become a multimillion-dollar company with many of the
products as market leaders in their category. Parle Products began manufacturing biscuits, in
addition to sweets and toffees. Having already established a reputation for quality, the Parle
brand name grew in strength with this diversification. Parle Glucose and Parle Monaco were
the first brands of biscuits to be introduced, which later went onto become leading brand
names itself for great taste and quality.
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Today, the great strength of Parle Products is the extremely widespread distribution network.
Even at the remotest places, you can buy Parle biscuits and sweets from the local grocer. It
has taken years to create this extensive network. Parle’s 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 production increased, distribution was amplified. Full time salesmen were
appointed in different areas. Currently, Parle Products has over 33, 00,000 distribution
outlets.
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.
All Parle products are manufactured under the most hygienic conditions. Great care is
exercised in the selection & quality control of raw materials, packaging materials & rigid
quality standards are ensured at every stage of the manufacturing process. Every batch of
biscuits & confectioneries are thoroughly checked by expert staff, using the most modern
equipment.
The Care is taken at every step to ensure the best product of long-lasting freshness. Every
batch of Biscuits, Confectionaries & Snacks are thoroughly checked by expert staff using the
most modern equipment. This ensures consistent and perfect quality across the nation and
abroad.
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CHAPTER 2
ABOUT THE COMPANY
A long time ago, when the British ruled India, a small factory was set up by Mohanlal Dayal
Chauhan in the suburbs of Mumbai city, to manufacture sweets and toffees. The year was
1929 and the market was dominated by famous international brands that were imported
freely. Despite the odds and unequal competition, this company called Parle Products,
survived and succeeded, by adhering to high quality and improvising from time to time.
A decade later, in 1939, Parle Products began manufacturing biscuits, in addition to sweets
and toffees. Having already established a reputation for quality, the Parle brand name grew in
strength with this diversification. Parle Glucose and Parle Monaco were the first brands of
biscuits to be introduced, which later went on to become leading names for great taste and
quality.
The original Parle company was split into three separate companies, owned by the different
factions of the original Chauhan family:
Parle Products, led by Vijay, Sharad and Anup Chauhan (owner of the brands Parle-G,
Melody, Mango Bite, Poppins, 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)
All three companies continue to use the family trademark name "Parle". The original Parle
group was amicably segregated into three non-competing businesses. But a dispute over the
use of "Parle" brand arose, when Parle Agro diversified into the confectionary business, thus
becoming a competitor to Parle Products. In February 2008, Parle Products sued Parle Agro
for using the brand Parle for competing confectionary products. Later, Parle Agro launched
its confectionery products under a new design which did not include the Parle brand 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 it clearly specifies that its products
belong to a separate company, which has no relationship with Parle Products.
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2.1 BOARD OF DIRECTORS
NAME OF MEMBERS DESIGNATION
Vijay K Chauhan Chairman & Managing Director
Sharad P Chauhan Managing Director
Raj K Chauhan Managing Director
Ajay V Chauhan Executive Director
Anup S Chauhan Executive Director
Samar S Chauhan Executive Director
2.2 PRODUCTS OF PARLE
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BUSCUITS SWEETS SNACKS
Parle-G Londonderry Parle’s wafers
Monaco Melody Namkeen
Golden Arcs Mango Bite fulltoss
Parle Actifit Digestive
marie
Kaccha Mango Bite Munchies
Parle Marie Chox Cheeslings
Hide & Seek Poppins
Hide & Seek Fab Mazelo
Hide & Seek Bourbon 2 in 1
Festo 2 in 1 Eclair
Happy Happy Kismi
Milano Kismi Toffee Bar
Nimkin Fruit Drops
Coconut
20 – 20 cookies
Jam In
Gold Star
Kreams
Top
Magix
Coconut
These products are discussed below in short about that featurs , pricing etc.
BUSCUITS
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PARLE G
Every nation dreams of a better tomorrow. And every nation's tomorrow lies in the hands of
its children; the young stars who shape the future of the nation. So, it's important to nourish
these young stars, after all it's a question of the nation's future.
Filled with the goodness of milk and wheat, Parle-G is a source of all round nourishment.
Treat yourself to a pack of yummy Parle-G biscuits to experience what has nurtured and
strengthened millions of people for over 70 years. A meal substitute for some and a
tasty and healthy snack for many others. Consumed by some for the value it offers, and many
others for its taste. Whatever the occasion, it has always been around as an I nstant
source of nourishment. Little wonder that it's the largest selling biscuit brand in the
world.
PARLE FUTURE GENIUS
There’s no school like childhood. And there’s no teacher like curiosity. At Parle, we believe
that every child has the potential to become a genius if allowed to follow their curious minds
and explore without limitations. That’s why we made the futuregenius.com website. A tool
for both parents and children to help identify the spark of genius in a child, nurture
it and give it a platform to be showcased on.
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BACHPANSE BADA KOI SCHOOL NAHI
CURIOSITY SE BADI KOI TEACHER NAHI
MONACO
Life namkeen banaiye!
When life hits a dull patch, just pull out a Parle Monaco to make it exciting. The light, crispy
biscuit sprinkled with salt, is the perfect namkeen twist you can add to your ordinary boring
moments. Go ahead, Life namkeen banaiye, anywhere, anytime with Parle Monaco.
To spice up your life further, try the variant of Parle Monaco - The Zabardast Jeera. This
salted, crispy biscuit delicately seasoned with jeera, has a unique taste that makes those
Play a game of hide and seek with your taste buds. Indulge in the mouth-watering delight of
India’s best moulded chocolate chip biscuits, Hide & Seek. All it takes is one bite, and you
are transported to chocolate Heaven. Packed with a bounty of chocolate chips, once you try
Hide & Seek, you will never want any other biscuit again. A treat for the mouth, and the
heart, khate hi dil aa jaye!
Rs. 5, Rs. 10, Rs. 20, Rs. 30, and Rs. 50
HIDE N SEEK BOURBONE
The name itself suggests everything.
The moment you take a bite your tongue starts playing hide n seek with the rich chocolaty
cream resting between two lovely sugar-coated biscuits. The melting chocolate cream will
feel rich and luscious in your mouth. It’s a complete treat for your taste buds. Moreover, it's
like falling in love at first bite.
Rs. 5, Rs. 12 and Rs. 24
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GOLDEN ARCS
Introducing irresistible Golden Arcs, filled with rich Strawberry, Apple, Orange & Choco
Fillings. They are best described as 'melt-in-your-mouth', soft shelled fruit rolls and crunchy
choco fills which are perfect for an anytime snack.Do bite into one of our 4 Delicious
flavours.
Rs. 20 and Rs. 35
TOP
It is the ultimate crispy cracker with the finest taste of butter, especially made to mesmerize
you with its smoothness. The unspoken dream or the wildest imagination gets real, with the
smooth texture of butter. So take a bite and escape into your own world where it will be just
about you and everything else fades into oblivion. Let no one come between you and
"Buttery Taste & Buttery Dreams".
Rs. 5, Rs. 10 and Rs. 20
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PARLE ACTIFIT DIGESTIVE MARIE
Now say 'goodbye' or at least 'see-you-later’ to the couch, the video games, the computer
and the TV. And enter the Actifit world where you say 'Hi. Hello, Good morning' to the
gym, the roads, the pool. And to help you stay this active, you need Actifit Digestive Marie.
It's a biscuit that's packed with 5x more fibre (than other Marie biscuits) and 67% less fat.
And it's a biscuit that will help you commit to a healthier you.
Rs. 5, Rs. 15 and Rs. 25
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SWEETS
Londonderry
Get a taste of the rich English-Irish culture, right here in India. With Londonderry, an
exquisite hard-boiled candy made from Milk and Caramel. With a name inspired by an actual
town in Ireland, the creamy, exotic taste of this delicious candy will make you discover the
glories of the majestic English-Irish culture. Just pop-in a Londonderry candy and experience
The magical world of Londonderry.
Rs. 50 paise
Melody
Caramel meets chocolate to yield an outcome nothing less than delectable. Parle Melody
comes with an irresistible layer of caramel on the outside and a delightful chocolate filling
within. Pop it in your mouth and relish the unique experience. It won’t be too long before you
find yourself asking the age old question ‘Melody itni chocolaty kyon hai?'
Rs. 1
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Kaccha Mango Bite
The mastiful flavour of summer now comes in a candy. Just pop a Kaccha Mango Bite and
experience the natural tangy sweetness of a real raw mango. It's the only candy that is a real
kacche aam ka zerox. So when you're craving for the tantalizing khatta-meetha taste of raw
mango just reach out for a Kaccha Mango Bite and enjoy real kacche aam ki masti, anytime,
anywhere.
Rs. 50 paise
2 in 1 Éclair
It’s a creamy, delicious bargain! Savour the delicious cream filling overflowing from a
golden caramel shell. Delight your taste buds with rich taste of cream and caramel. It’s
Eclairs 2 in 1, a sweet delight to double your pleasure and treble the fun! And remember,
two’s always better than one.
Rs. 50 Paise
Kismi
Now the yummy toffee and elaichi taste of Kismi Toffee comes specially packaged in its maha-avatar. Now when you study or play, bring your appetites and more for this fantastically big bite of Kismi Toffee Bar. Making it one of the most popular toffee bars in India. After all everyone knows, when it comes to toffee, big is best.
Rs. 2
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SNAKS
MUNCHIES
JEFFSCrunchy, salted biscuits flavoured with cumin seed (Zeera) for that extra boost of flavour. The perfect snack for just about anywhere – Jeffs.
SIXERThink Square is boring? Then what you need is a Sixer. This six-sided, salted delight cuts out the boring from a biscuit. A unique shape coupled with an equally unique crunchy, munchy, salty taste that leaves you asking for more!
Jeffs : 4.5 kg tin - Rs. 655Sixer : 200 gm jar - Rs. 45 5 kg tin - Rs. 635
CHEESELINGS
For the love of cheese and only cheese! Parle pulls out ‘Cheeselings’ from its pool of innovative products. It’s a baked snack, light on tongue and high on its Cheesecious taste. Its fluffy form makes it very crunchy yet it actually melts in your mouth, leaving behind the lingering flavor of cheese. Each bite opens the doors to that nostalgic feel everyone would love to savor. Once tried, we bet you will become a fan of Cheeselings. So, what are you waiting for? Come, join the ever-increasing Cheeseling Fan Club and Parle will make sure your favorite snack reaches you most conveniently.
160 gm - Rs. 40 320 gm - Rs. 80 3.5 kg tin - Rs. 550
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PARLE’S WAFERS
Presenting Parle's Wafers. Made with the choicest of handpicked potatoes, it's lip -smackingly delicious, delightfully crunchy and comes in four exciting flavours - Masala Masti, Red Chilli Achaar, Classic Salted, Aloo Chaat, Cream and Onion, and Tangy Tomato. Grab one. Or grab’em all. Whenever you want, wherever you please. We're sure you'll enjoy it from the very first chip till the very last.
Rs. 5, Rs. 10 and Rs. 20
FULLTOSS
"Imagine you are playing for Indian cricket team; we need 6 runs from the last ball. An attempted Yorker turns out to be a full toss. You lift your bat, swing it hard and the ball disappears in the crowd. It’s a six!!! Felt the joy? This is how you would feel after each bite of Parle’s FullToss. What adds more excitement in any tale are its twists, hence its shape is powered packed with masaledar Karare twists. Just open a pack of this lip smacking –scrumptious snack and add some spice in your day to day moments. It’s perfect for every occasion and each craving.Available in exciting flavours - Masala Munch, Masala Kachori, Jhalmuri Kolkata Bhel, Green Mango Chatni, Tangy Pickle, and now you can try the new Tomato flavour.
Rs. 5, Rs. 10 and Rs. 20.
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CHAPTER 3
THE MARKETING 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 most remote places
and in the smallest of villages with a population of just 500.
Parle 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.
The Parle marketing philosophy emphasizes catering to the masses. They constantly
endeavour at designing products that provide nutrition & fun to the common man. Most Parle
offerings are in the low & 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.
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3.1 SWOT ANALYSIS
SWOT analysis is the firm should identify its internal Strengths (S) and Weeknesses (W)
and also examine external Opportunities (O) and Threats (T).
Strength , Weakness , Opportunity , and Therat are the four tools for a individual or
group or organisation to grow , improve and polish it’s skill. Parle Product Ltd. Has
been highlighted below which covers all the criticality of the project :
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Strengths
Parle Brand,
Diversified product range,
Extensive distribution network.
Low and mid price range
Catering to mass,
Better understanding of consumer psyche
Weakness
Dependence on retailers & grocery Stores for displaying diversified Parle Products
on shelf, induce impulsive buy.
Opportunities
Estimated annual growth of 20%
Low per capita consumption,
Changing consumer preference,
Increasing demand for sugar free,
Diet biscuit,
Threats
Hike in cost of production due to hike in raw material cost.
Increase distribution cost.
Local bakery product.
Entry of various new entrant.
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3.2 BCG MATRIX
The Boston consulting Group’s portfolio matrix allows a firm to visually display
information about each of its. The BCG matrix has as its axes the market growth rate
(Broken into high and low growth) and the relative market share as compared to the largest
competitors (high and low relative market share).
The BCG matrix method is based on product life cycle theory that determine the product
portfolio of a unit which contains both high growth product & low growth product having 2
Dimensions: Market share & Market growth.
BCG MATRIX CONSISTS OF 4 CATEGORIES:
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1. STARS:
(High growth & High market share)
Stars are market leaders and growing fast. Stars have large reported profits but require a lot of
cash to finance the rapid growth. As per the company’s survey, Parle G is touching the peek
of success & therefore comes under the STAR category thereby the Co. can invest a large
sum for its upliftment .
2. CASH COWS
(Low growth, High market share)
A cash cow usually generates more cash than is required to maintain its market share. It is in
low-growth market but has a dominant market share. Profits & cash generation should be
high due to its Low growth, the investment needed to be Low to keep Profits High
The products like krackjack, parle Marie, hide & seek comes under this category.
3. QUESTION MARK:
(High growth, Low Market share)
It has worst cash characteristics because of High demands & Low returns due to Low market
share makes the Co. to sell off & deliver cash.Products like CHOX, NIMKIN KREAMS
GOLD, PARLE 20-20, MONACO JEERA comes under this.
4. DOGS:
(Low growth, Low market share)
The products like SIXER,JEFFS, MUST BITES,MUST STIX &MUST CHIPS Conclude
with DOGS as they need to be Divested because they are doing no good for the Co. & have
remained as an liability.
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CHAPTER 4
MARKETING MIX OF PARLE PRODUCTS
The term marketing mix refers to unique blend of Product, Place, Promotion & Pricing
strategies designed to produce mutually satisfying exchanges with a target market.
Marketers have to make many decisions in developing a marketing mix that will satisfy
their target customers. However, all of the variables that make up the marketing mix
can be reduced to four basic categories.
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4.1 PRODUCT MIX
PRODUCT LEVELS
Core benefit- the core benefit of biscuits 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. This is not
always expected by the consumers and hence exceeds customer’s expectations.
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.
Classification of products
Based on tangibility- Parle biscuits are tangible, i.e. one can see and touch them.
Based on functional life- Parle biscuits are consumables since biscuits form apart of food
and have a short life.
Based on price and quality- most of Parle biscuits such as Parle-G, Monaco, Krack jack
are mass products but a few Parle biscuits such as Parle hide and seek and Milano are
premium or prestige products.
Based on utility- Parle biscuits are convenience goods. They are staples since they are
bought by consumers regularly. Also they are partly impulse products.
Consistency
The product consistency generally depends on 3 parameters.
1) Production
2) Distribution
3) Consumer end-user
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The production process of every parle biscuit follows some basic ingredients like wheat flour,
vegetable oil, inverted syrups, skimmed milk powder ,etc. then depending upon the product,
extra ingredients are added for e.g. in Monaco there might be an extra amount of salt put in
to give it that prominent salt taste, to hide & seek, chocolate chips are added. Etc.
Parle uses the same distribution channels for selling all its products under the biscuit category
i.e. 1st , 2nd & the 3rd level of the distribution channels.
The basic end use of all parle products remains the same – eating it’s imply to satisfy hunger.
Products like parle-g may also be consumed for the intake of high glucose levels for
immediate strength & energy.
RAW MATERIAL USED
Wheat flour
Sugar
Partially hydrogenated edible vegetable oils
Invert syrup
Leavening agents (503 Baking powder)
Milk solids
Salt
Emulsifiers (E 322 or E 471 or E 481)
Dough conditioners (E 223) and contains added flavors.
PROCESS LAYOUT OF PARLE PRODUCTS LTD.
PARLE G is made at parle products ltd. at vile parle.
First of all the parle products buys RAW MATERIAL from the various suppliers and stored
into the store room. This raw material is then sent to laboratory for testing and after testing
only it is used for manufacturing. The raw material consist of Wheat flour, Sugar, Partially
Milk, solids Salt Emulsifiers (E 322 or E 471 or E 481) and Dough conditioners (E 223).
Such a mixture of raw material is taken and mixed into STEPHAN MIXTURE, which is high
power mixture machine. Specially made for mixture of dough, from which the mixture is
passed to molder called ROTARY MOULDER. Through that molder approximately 10,000
29
come out in a minute. Molder had 260 cups fitted in it which gives shape to the biscuits and
an impression embossed on it of parle-g.
From rotary molder the dough is passed through a 260 feet long OVEN which is
approximately 340* c. In oven there are three stages to be followed -
1. Removal of moisture.
2. Building the structure of biscuits.
3. Colorings of biscuits take place.
From oven the hot biscuits are placed on the COOLING CONVYOR, which is 260 feet long and the biscuits continues to run on it for 5 to 7 minutes so that the biscuits become cool and all the moisture that biscuits contain gets evaporated. And because of the above reason the factory has “S FLOW LAYOUT” in the factory.
The conveyor continues to move to COUNTING UNIT where biscuits are counted and seen
that it is going on properly or not. The conveyor continues till the biscuits reach the
STALKING TABLE at which the biscuits are packed in very orderly manner.
From cooling conveyor sum biscuits are diverted through AUTO FEEDING MACHINE to
another stalking machine where packing is done. From stalking table the biscuits are moved
on conveyor to MULTI PACK WRAPPING MACHINE were 16 biscuits are packed into a
regular parle g wrapper so that the weight of 16 biscuits comes up to 100 grams.
Then 24 packets of parle g biscuits are packed into a POLY BAG. And after packing it into
poly bag it is sent to SEALING MACHINE where it is sealed, Then it is sent to
CORRUGATE BOX SECTION in which 6 poly bags are placed and then the boxes are kept
on conveyor and sent to DISPATCH SECTION from where the biscuits are sent to various
places in India and all over the world.
All Parle products are manufactured under the most hygienic conditions. Great care is
exercised in the selection & quality control of raw materials, packaging materials & rigid
quality standards are ensured at every stage of the manufacturing process. Every batch of
biscuits & confectioneries are thoroughly checked by expert staff, using the most modern
equipment.
INVENTORY
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The inventory of the company that is the raw material is of a week. They store such inventory
in store room and then are sent for testing in laboratory and after testing it is sent for
production.
SHIFTS
There is nearly 10,000 employees working in the company and are working in three
shifts.35,000 tons of biscuits are manufactured in a day of one particular product, and there
are such nine product manufactured in the factory.
WASTAGES
There are two type of wastage in factory. First is the waste materials fallen on ground. Such
waste material is of 1% which is marginal and acceptable which goes into total waste. Second
types of waste are the biscuit collected in tray of the multi-pack wrapping machine, since
these biscuit are broken they are not packed and sold to the customer but collected in other
tray and sold as broken pieces and sold for less price for cattle feeding.
LOOSE BISCUIT
On the stalking table one to two rows of baked biscuits are kept aside for selling it as loose
biscuits. They are normally assumed to be damaged biscuits but they are not damaged or
broken but company keep such loose packets of biscuits to sell it to the local people for
marginal rate of 33 Rs / kg.
FOLLWING ARE THE MACHINERY USED IN MANUFACTURING
STEPHEN MIXER
The Stephan TK Mixer is an ideal component to fully automatically feed the down-stream
make-up equipment for biscuits, bread, rolls, buns, cake, sweet goods, cookies and crackers.
ROTARY MOULD
· structure in corrosion-proof; anodized aluminumand Aisi 304 stainless steel
· satin stainless steel paneling
· swivel wheels and support feet
· trays loader with automatic chain feed
· feeder roller anodizedaluminum
· 1.00 kW speed validator
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COOLING CONVEYOR
The biscuit coming from stripping conveyor is directed on to the cooling conveyor to transfer
the heat in the biscuit to atmospheric air as it is passing on it. The total travel of the cooling
conveyor is 1.5 times the oven length. As per need specifications it need the travel of 150 ft.
LAMINATOR
Laminators are generally used for production of all kinds of hard biscuits, crackers and
cocktail snacks. With laminator it is possible to create a puffy pastry-like structure, which is
of decisive importance for the quality level and consequently for the sales success.
Laminating of Dough band improves the weight/volume ratio considerably.
BISCUIT BAKING OVEN
The oven body consists of steel steam tight tunnel with equally divided zones of the radiators.
Stainless steel expansion joints are provided between these zones in order to eliminate the
expansion of the oven section. The inspection doors are provided for inspection of the baking
goods during the process.
Baking System:
The baking in the heating chamber takes place by radiators located under and above the wire
mesh band which distribute heat for uniform baking. The recirculation heating gases of these
radiators can be controlled for each zone separately. The closed recirculation system is
having slight vacuum so that combustion gases cannot enter into the baking chamber. The
ventilating fan is for circulation of the heating gases through the recirculation system and
thermostatically controlled burners provide the set temperature of the heating gases.
ROTARY CUTTER
The single head rotary cutter prints fine design on a continuously fed dough sheet and also
cuts out the individual dough piece. The unit powered by 1.5KW helical geared motor and
speed controlled by AC frequency controller. Drive is given to cutting roller only to
accommodate different sizes of dies in this machine.
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COUNTING UNIT
The counting unit counts and see that the biscuit making process is going fine or not, i.e. as
per the program set in the machine, program is set as per the grams required. Generally 16
biscuits are taken by the counting unit so that it leads to 100 grams.
MULTIPACK WRAPPING MACHINE
This machine helps in wrapping the biscuits on the particular wrapper fixed on the roller of
the machine. The wrapper is feed into the machine and the sealing of the wrapper is done by
four heater roller, which is fitted on the machine. This heater roller heat up the plastic and
seals the packet. And at the same time the jaw cutter cut the packet on the cutting edge
marked i.e. as per the grams of the packet which is feed in the automatic machine (100 – 120,
120 – 150, 150 -170, 170 - 190). The packets coming out from the wrapping machine in a
minute is programmed in computer and can be changed as per the need.
POLY BAGS
Poly bags contain 24 packets of parle g biscuits in one poly bag. There are 4 workers
employed on this section who take care of the work by putting 24 packets of biscuits in the
bag and forwarding it to sealing machine section.
SEALING MACHINE
The sealing machine has heater rod for sealing the poly bag in which 24 packet of biscuit are
placed, and it have a conveyer belt on other side so that when the poly bag passes through the
heater and get sealed then it is passed to the tapping machine.
TAPPING MACHINE
Six such poly bags are placed in one such corrugated box and the box is passed through the
tapping machine where are tapped and then sent through a long diversion conveyer belt. This
belt helps to transfer the box to the dispatch section directly. 36 boxes are arranged on pallet
in the dispatch section, from where they are transferred to the various dealers all over the
India and worldwide.
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Brand
The Parle Biscuit brands, such as, Parle-G, Monaco and Krack jack 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.
Product Strategy
New Old
New
Brand Name
Old
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.
Initially Parle used to produce only confectionaries. Parle followed brand extension with the
introduction of products in the biscuits and snacks category.
In this way, by concentrating on consumer tastes and preferences and emphasizing Research
& Development, the Parle brand grows from strength to strength .
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Line Extension Brand Extenstion
Multi Brand New Brand
Product Life Cycle
Parle as a company has reached the maturity stage in its products life cycle; since products
such as parle-G, parle Monaco, parle Krack jack which form a major part of parle products’
sales have captured most of India’s market.
But for its premium biscuits parle hide and seek and parle hide and seek Milano the products
are in the growth and introduction stages respectively.
Parle hide and seek was introduced in 1998 with flavors such as mint, orange and chocolate.
But it did not really succeed in capturing the consumer’s attention. So after a few years it was
re launched with just one flavor i.e. chocolate flavor with new packaging. After the re-launch
it has started gaining attention of its potential buyers and hence is in the growth stage of its
life cycle. It has to fight for its stand in the market since it faces competition from Britannia’s
good-day choco nuts.
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Packaging and Labeling
Packaging: The time spent by a customer for picking up a product from a retail outlet is a few
seconds; therefore a package should appeal to a customer within such a small interval of time.
In this, both packaging & labeling play an important role in attracting customers both visually
& psychologically.
Packaging:
For Parle G: Parle G was initially recognized by its iconic white and yellow
stripped wax paper wrapper with the baby face on it. Many competitors have tried to sell their
lower quality products by copying the packaging, trying to sell their biscuits as Parel-G;
Parle-Jee etc. Due to increasing competition Parle G now uses plastic wrappers for its
packaging. Parle-G comes in 8 different sizes: 25gms, 44gms,93.5 gms, 231gms, 340.5gms,
462gms, 577.5gms and a 1kg pack just for Rs.30 which is not usually offered by other
brands.
Parle Hide & Seek: It initially came out with 3 variants: Mint, Orange &
Chocolate which wasn’t accepted by the masses. However, the production of Mint & orange
flavors was stopped. Chocolate is the only flavor that is running successfully since it is
India’s first chocolate chip biscuit. . Hide & seek biscuit's current packaging has been
modified along with lower prices & better affordability rates. Thus there is a change in size of
the product which is prevalent in the ads. One of the advertisements shows movie actor,
Hrithik Roshan walking with a pack of hide& seek biscuits in the back pocket of his jeans
emphasizing on the small size of the product.
Parle hide & seek Milano: This product of Parle has a flashy purple coloured packing
which attracts customers with the whole look of Italian chocolate chip cookies.
Labeling : Consumers are becoming increasingly health conscious. So it is essential
to display the contents of every product. Every packet of Parle G, Parle hide & seek,
Parle hide& seek Milano has information about the ingredients used, nutrition facts,
mailing& emailing addresses asking for feedback, phone number, packaging date etc.
All this along with the brand name and directions are printed in Hindi too.
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4.2 PRICING MIX
The Parle marketing philosophy emphasizes catering to the masses. It constantly endeavors at
designing products that provide nutrition & fun to the common man. Most Parle offerings are
in the low & mid-range price segments. This is based on its cultivated understanding of the
Indian consumer psyche. The value-for-money positioning helps generate large sales volumes
for the products.
Parle G has adopted the Market Penetration strategy i.e. 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. This benefits Parle G by having a
competitive edge in terms of large market share which is around 40%: both rural and urban
presently.
For setting the price of Parle hide & seek biscuit, a survey was taken in the urban &semi-
urban markets; on the basis of which hide & seek was introduced. It was found that the
potential consumers were ready to pay a premium price for an innovative product like
chocolate chip biscuits. Thus, Parle adopted market skimming where the product is high
priced and also of high quality. It includes the cost of chocolates, packaging & other
processing cost. All these show customer status, which is also one of the reasons for
parle hide & seek’s high price.
A separate example for explaining the pricing strategy of Parle is its product Parle Creams
For this product Parle uses going rate method only as a reference rate. In this case, Parle
Creams were introduced after Britannia’s Cream Treats with similar variants but at Rs.5 per
packet of biscuit and not Rs.10 like that of Britannia’s cream treats.
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4.3 PLACE MIX
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 most remote places
and in the smallest of villages with a population of just 500.
Distribution Channel levels:
Parle 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 it’s an FMCG product this channel exists for customers scattered throughout
the country.
Level 3 - Mass consumption & suitable for national & 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.
Parle has a multi-channel marketing system since it uses more than two marketing
channels to reach all its customer segments.
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4.4 PROMOTION MIX
The marketing mix tools used by Parle are Sales promotion, Advertising, and Public
relations.
Sales Promotion
Parle 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 organised for the employees of Parle and
their families; where Parle products are give away prizes.
Advertising
Parle-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, are as 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 -Animation. 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’ maane’GENIUS’’. For
this a series of ads were shown in which a little kid eats Parle G and tricks the wise
and experienced people.
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Just a few months back 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 biscuit’s 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.
Public Relations
Parle has done the following for enhancing public relations:
In the year 1997, Parle-G sponsored the tele-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 amajor
consumer. A national level promo - `Parle-G Mera Sapna Sach Hoga' was run for a period
of 6 months. The promo was all about fulfilling the dreams of children. There were over 5
lakh responses and of that, over 300 dreams were fulfilled. Dreams that were fulfilled ranged
from trips to Disneyland at Paris &Singapore; meeting their favorite film star Hrithik Roshan;
free ride on a chartered plane; 20 scholarships worth Rs 50,000; a special cricket coaching
camp with the Australian cricketer - Ricky Ponting; etc.
Golu Galata contest - In Tamil Nadu, traditionally, women decorate various dolls made of
clay during Navaratri celebrations by setting up 7-9 steps. This display is well decorated and
friends and relatives are invited to witness the same. Through a detailed research, Parle found
that due to time pressures, this tradition is slowly dying and is getting restricted to a select
few households. Thus, to revive the fading event, Parle had introduced the novel promotion
called Parle Golu Galata contest in 2005. After the encouraging response and resounding
success of the 2005 Golu Galata contest, in 2006 Parle Products Pvt. Ltd took the contest to
Chennai, Madurai, Trichy, & Kumbakonam. (Golu means Doll & Galata means Dhammal.)
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CHAPTER 5
CONSUMER BEHAVIOUR
For Parle-G:
In 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 behaviour
includes the knowledge about the consumer, his buying motives & buying habits. Keeping all
this in mind, the factors influencing the buying behaviour of consumers are:
Parle-G being a consumable product is not influenced by factors like cultural factors. As
shown above, social factors are further sub divided into 3 parts namely reference groups,
family & social role & status.
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 it’s 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 the family for tea will form a
similar habit or the later will be offered the same biscuit.
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PERSONAL FACTORS
The 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 . O C C U P A T I O N
The buying behaviour 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 it’s the easiest & the cheapest he can get.
3 . I N C O M E
Income of a person decides its core expenditure segment. If a laborer earns a fixed 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.4 on anything else .But since Parle-G is a low-priced, value for money
product a person’s income does not really play a role in influencing the purchase of the
product. Consumers of all income groups do buy the product.
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PSYCHOLOGICAL FACTORS
1. 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.
For Parle hide & seek:
SOCIAL FACTORS
1) Reference groups- parle hide & seek is targeted at the youth. So for this product consumers
are influenced by their friends and siblings.
2) Status- Parle hide & seek is a high priced product. So consumers in the higher income
groups would prefer to buy the product over other brands since it would be a matter of higher
status.
PERSONAL FACTORS
1) AGE
The advertisements of this product are such that people in the age group from 15 to 28 are
likely to be influenced to buy this product. But at the same time, since this product has been
endorsed by a celebrity (Hrithik Roshan) and since it is made of chocolate chips, children are
also likely to be major consumers.
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2) OCCUPATION
Major Consumers for Parle hide & seek are students.
3) INCOME
Since it is a high-priced product; the potential consumers for this product are high income
earners. A person who is earning more is more likely to buy this product than a person
who earns comparatively lower income.
PSYCHOLOGICAL FACTOR
Perception
Consumers perceive this brand as ’tasty and crispy’ ...chocolate not very sugary. It is
perceived as a brand leader in this segment and some firmly believe that there is no
competitor while mostly people regarded ’Britannia bourbon’ as its main competitor ; very
few consumers know that ’good day- choco nuts’ is its competitor..
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CHAPTER 6
MAJOR COMPETITORS OF PARLE PRODUCTS LTD
The major competitors of parle products is Britaniya , Sunfeast, Priya Gold, cadburry, and others local brand.
6.1 Britaniya
The company was established in 1892, with an investment of Rs.295. Initially, biscuits were
manufactured in a small house in central Kolkata. Later, the enterprise was acquired by the
Gupta brothers mainly Nalin Chandra Gupta, a renowned attorney, and operated under the
name of "V.S. Brothers." In 1918, C.H. Holmes, an English businessman in Kolkata, was
taken on as a partner and The Britannia Biscuit Company Limited (BBCo) was launched. The
Mumbai factory was set up in 1924 and Peek Freans UK, acquired a controlling interest in
BBCo. Biscuits were in big demand during World War II, which gave a boost to the
company’s sales. The company name finally was changed to the current "Britannia Industries
Limited" in 1979. In 1982 the American company Nabisco Brands, Inc. became a major
foreign shareholder.
Biscuits
The company's factories have an annual capacity of 433,000 tonnes. The brand names of
biscuits include VitaMarieGold, Tiger, Nutrichoice Junior,Good day, 50 50, Treat, Pure
Magic, Milk Bikis, Good Morning, Bourbon, Thin Arrowroot, Nice, Little Hearts and many
more.
Tiger, the mass market brand, realised $150.75 million in sales including exports to countries
including the U.S. and Australia, or 20% of Britannia revenues in 2006.
In a separate dispute from the shareholder matters, the company alleged in 2006 that Danone
had violated its intellectual property rights in the Tiger brand by registering and
using Tiger in several countries without its consent. Britannia claimed the company found out
that Danone had launched the Tiger brand in Indonesia in 1998, and later in Malaysia,
Singapore, Pakistan and Egypt, when it attempted to register the Tiger trademark in some of
these countries in 2004. Whilst it was initially reported in December 2006 that agreement had
been reached, it was reported in September 2007 that a solution remained elusiv. In the
meantime since Danone's biscuit business has been taken over by Kraft, the Tiger brand of
biscuits in Malaysia was renamed Kraft Tiger Biscuits in September 2008.