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PARLE
MIT School of Telecom 1
A Mini-Project Report
On
TO STUDY THE VARIOUS STRATEGIES ADOPTED BY
PARLE TO SUCCEED IN MARKET
SUBJECT: - STRATEGIC MANAGEMENT
(Semester III)
Taught by: - Prof. Rajashri Kadam
Submitted to
MAEERS
MIT SCHOOL OF TELECOM MANAGEMENT
BYSWAPNIL DILIP KHARCHE
Roll no. 092060
2009-2011
MAEERS MIT SCHOOL OF TELECOM MANAGEMENT
(MITSOT), PUNE
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INDEX
Contents Page no
1. History of Parle.2. History of Parle products .3. Company Profile ..4. Market Strengthen of Parle..5. Product life cycle (GROWTH phase).6. PRODUCT: Parle-G 7. PRODUCT: Hide N Seek8. PRODUCT: Melody.9. PRODUCT: Poppins.10. PRODUCT: Pineapple..11. PRODUCT: Mango..12. PRODUCT: Monaco 13. STP Analysis.14. Target Market Strategy.15. Positioning market Strategy..16. BCG Matrix..
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History of Parle
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 wouldnt 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. A decade later it was upgraded to
manufacture biscuits as well. Since then, the Parle name has grown in all directions, won
international fame and has been sweetening peoples lives all over India and abroad.Apart from the factories in Mumbai and Bangalore Parle also has factories in
Bahadurgarh in Haryana and Neemrana in Rajasthan, which are the largest biscuit and
Confectionery plants in the country. Additionally, Parle Products also has 7
manufacturing units and 51 manufacturing units on contract. 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 wouldnt 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. A decade later it was upgraded to manufacture biscuits as well. Since then,
the Parle name has grown in all directions, won international fame and has been
sweetening peoples lives all over India and abroad.
Apart from the factories in Mumbai and Bangalore Parle also has factories in
Bahadurgarh in Haryana and Neemrana in Rajasthan, which are the largest biscuit and
Confectionery plants in the country. Additionally, Parle Products also has 7
manufacturing units and 51 manufacturing units on contract.
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, which was supported by
POS and press communication. The children just could not get enough of Parle-G andShaktimaan.
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 Sach Hoga' was run for a
period of 6 months. The promo was all about fulfilling the dreams of children. There
were over 5 lac responses and of that, over 300 dreams were fulfilled.
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Dreams that were fulfilled ranged from trips to Disneyland at Paris & Singapore;
free ride on a chartered plane; 20 scholarships worth Rs 50,000; a special cricketcoaching etc
The year 2002 will go 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 is not just new to the audiences but one that involves a
completely new way of execution that is loved by children all over the world Animation
To make the brand much more interesting and exciting with children, it was decided to
launch a premium version of Parle-G called Parle-G Magic in the year 2002. Parle-GMagic is available in two exciting tastes -Cocoh andCashew. The year 2002 also
witnessed the launch of Parle-G Milk Shakti, which has the nourishing combination of
milk and honey, especially launched for the southern market.
ABOUT PARLE
Parle-G or Parle Glucose biscuits are one of the most popular confectionary biscuits in
India. Parle-G is one of the oldest brand names in India and is the largest selling brand ofbiscuits 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, Sonam (calgary)
covering the front.
The company's slogan is popular among the Indian consumer population, reading G
means Genius. The name, "Parle-G", is derived from the name of the Indian rail station,
Vile Parle, where the Parle production factory is based.
"Parle-G" boasts of being the largest selling biscuit in the world. It enjoys 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 Productsis 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).
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HISTORY OF PARLE PRODUCTS
Parle-G is a one of the famous business groups of India. It has a large quantity of food
products. Parle-G products are very familiar to Indian kids. No Indian grown without
feed of Parle-G product. It is fact. A long time ago, when the British ruled India, a small
factory was set up 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 thefirst brands of biscuits to be introduced, which later went on to become leading names for
great taste and quality.
PARLE CORE VALUES
An in-depth understanding of the Indian consumer psyche has helped Parle evolve a
marketing philosophy that reflects the needs of the Indian masses. With products
designed keeping both health and taste in mind, Parle appeals to both health conscious
mothers and fun loving kids. The great tradition of taste and nutrition is consistent in
every pack on the store shelves, even today. The value-for-money positioning allowspeople from all classes and age groups to enjoy Parle products to the fullest.
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COMPANY PROFILE
FOUNDER: - Mr. MOHANLAL DAYALJI
SON: - Mr. NAROTTAM CHAUHAN
CMD: - Mr. KANTILAL CHAUHAN
STARTED: - 1928 AT Vile Parle
HEAD OFFICE: - Vile Parle
9 MOTHER UNITS:-
Vile Parle Bahadurgarh (Delhi)
Bhuj (Gujarat)
Banglore (2001)
Neemrana (Rajasthan)
Rudrapur (Uttaranchal)
Khanpoli (Maharashtra 2007)
Nashik (Maharashtra)
Sintargunj (Uttarkhand)
ABOUT PARLE-BANGLORE
Started in 2001
First started manufacturing KRACKJACK.
After 2 years they started
3 Biscuits i.e. Parle G, Hide & Seek and Krackjack
2 Confectionaries i.e. Melody and Chox
Having HACCP certificate (HACCP certificate = Quality Assured)
And also by DNV (Det Norsive Veritas) which is an Indian body.
ORGANISATIONAL STRUCTURE
It follows LINE AUTHORITY.
Decision is taken by the top level management
The raw material are inserted at the beginning and comes out after the products are
formed.
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40+ manufacturing units are CONTARCT MANUFACTURING UNITS.
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 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 to 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 volumesfor 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.
MARKETING MIX OF PARLE PRODUCTS LIMITED
Product strategy:
y Core benefit- the core benefit of biscuit is to satisfy hunger of the consumer.y Basic product- in the second level, the basic product is biscuits.y Expected product- the consumers expect the product to have a good taste and also
give nutrition.
y Augmented product- Parle biscuits increase a persons energy levels.y Potential product- in the future Parle could come up with different products.
Brand:-
The Parle Biscuit brands, such as, Parle-G, Monaco and Krack Jack enjoy a strong
imagery and appeal amongst consumers. Be it a city or a remote village of India, the
Parle name symbolizes quality, health and great taste. And yet, this reputation has beenbuilt, by constantly innovating and catering to new tastes.
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y Brand name strategy: -Parle follows company brand name strategy, since all itsproducts are named using the company name as a prefix such as Parle- Monaco,
Hide n Seek, Marie etc.
y Brand strategy decisions: - Parle follows both line extension and brand extensionfor its products. For a product like Parle-G it followed line extension with the
introduction if Parle-G milk Shakti and Parle-G Magic which has 2 flavors-Choc
and cashew. Similarly when it introduced any new product in the biscuit category,
it follows line extension.
Parle followed brand extension with the introduction of products in the biscuits and
snacks category. In this way by concentrating on consumers tastes and preferences and
emphasizing Research & Development, the Parle brand grows form strength to strength.
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PRODUCT LIFE CYCLE
GROWTH PHASE:-
Total Market 4000 Crores Total Market Growth 10 to 12 % per annum Parle holds 40% Market share Large unorganized sector Indians eat 0.48 KG and Americans 4kg Biscuits Growth phase
Parle-G Largest brand in world 65 % of Glucose Market 50 % to Turnover Large consumption in rural market 12 to 15 % Growth Low Margin High Volume
40
37
7
16
% Market Share
Parle
Britania
ITC
Others 1600
1420
280
640
Total Market(Crores)
Parle
Britania
ITC
Others
65
28
7
Glucose Market
Parle
Britania
others
50%
35%
15%
Turn over %
Parle G
Other Bis.
Confec.
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Parle G market leader in Glucose sector Britania leader in terms of value & in Mid & High Sec ITC fastest growing brand (7 %) Others: Priya gold, Bakeman, Nesle and Kwality.
Increased penetration level from comp. Increased Advert. Variants and new Innovative products High segment variants Celebrity Brand ambassadors
Glucose (L) Marie(M) Cream(H)
Parle Parle G Marie Dig. Hide & Sick
Britania Tiger Marie Gold Good Day
ITC Sunfeast.gl. Sunfeast M Butter Cream
Surya Priya Snacs Priya Gold Badam pista
0
1000
2000
Parl ITC
Advertising
Turnover
Advert.
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Now we will see some of the products in details
PRODUCT: Parle-G
Parle-G or Parle Glucose biscuits are one of the most popular confectionary biscuits in
India. Parle-G is one of the oldest brand namesin India and is 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 covering the front.
Many counterfeit companies have attempted to recreate and sell lower quality products of
similar names and virtually identical package design.
Ingredients:
Wheat Flour,
Sugar, Partially Hydrogenated Edible Vegetable Oils,
Invert Syrup,
Leavening Agents [ 503 ( Ii ), 500 ( Ii ) ],
Salt, Milk Solids, Emulsifiers [ 322 or 471 & 481 ( i ) ]
Dough Conditioners [223].
Contains Permitted Natural Color [Artificial]
Pack Size & Price:
For 19grams:Rs.1/-, For 44grams:Rs.2/-, For 93.5grams:Rs.5/-, For 231.5grams:Rs.12/-
Place: It is available in mostly every retail shop.
Promotion: It is relish a delectable experience as they melt in your mouth. PARLE-Gstag line is:
Hindustan Ki Taakat
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PRODUCT: Hide & seek
A choco biscuit hatflirts with your taste buds.Seek out the chocolate chips that aren'treally hidden. And relish a delectable experience as they melt in your mouth.
Product contains:
Ingredients:
Wheat Flour,
Cocoa Solids,
Sugar,
Partially Hydrogenated Edible Vegetable Oils,
Invert Syrup,
Leavening Agents [ 503 ( Ii ), 500 ( Ii ) ],
Salt, Emulsifiers [ 322 or 471 & 481 ( i ) ] and
Dough Conditioners [223].
Contains Permitted Natural Colour [150 b]
Added Flavor (Artificial).
Pack Size & Price:
For 25 grams: Rs.5/-
For 50 grams: Rs.8/-
For 100 grams: Rs.14/-
Place: - It is available in mostly every retail shop.
Promotion: - It is relish a delectable experience as they melt in your mouth.
Hide seek tag line is:
TASTY ITANA, KI DIL AAJAYEE.
It is also most famous tag line and it they make advertising through TV advertising and
signboards
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Product: - Melody
Caramel meets chocolate to yield an outcome nothing less than delectable. ParleMelody comes with an irresistible layer of caramel on the outside and a delightful
chocolate filling within. Product contains:
Ingredients:
Sugar,
Liquid Glucose,
Cocoa Solids, Partially Hydrogenated Edible Vegetable Oils,
Milk Solids, Starch,
Salt and Emulsifier (322).
Contains Added Flavors (Artificial).
Packaging: Melodys packaging is very attractive because of itschoco cream.
Price: - Rs.1/-
Place: - It is available in mostly every retail shop.
Promotion: - Tag line of MELODY is in every mouth of the people:
That is,
Melody Khao, Khud Jaan Jaao
Advertising: - Melodys advertisement is very famous. It helps to increase the sale ofproduct and make it popular. It is also helpful to make mark set leader at time of new
entrance.
Public Relation:Public relation of Parle Company is good as well as good attachment of people
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Product: - POPPINS
Give the orange to a friend and the mango to a stranger. Or try the lemon for aneighbor and the strawberry for a teacher. Give the black currant to the school bus driver
and the pineapple to anyone else you please. With so many flavors in each pack of
Poppins, you will have only one thing to say to everyone you meet; "Doon Kya".
Ingredients:
Sugar,
Liquid Glucose,
Acidulates [296] & Starch.
Contains Permitted Synthetic Food Colors
[E 110, E 102, E 133, E 122, E 124, E 127]
Added Flavors [Artificial]
Price: -Rs.2/-, Rs.5/-
Place: - It is available in mostly every retail shop.
Promotion: - Tag line of POPPINS is in every mouth of the people
"Doon Kya".
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Products: Pineapple
Ingredient list:
Wheat Flour,
Sugar,
Partially Hydrogenated Edible Vegetable Oils, Invert Syrup,
Milk Solids,Salt,
Leavening Agents [ 503 ( ii ), 500 ( ii ) ],Emulsifiers [ 322] or 471 & 481 ( i ),
Dough Conditioners (223),
Contains Permitted Synthetic Food Colour(102) and Added Flavours (Artificial).
Pack Size: - 90 G, 180 G
Price: - Rs.5/- & Rs.10/-
Place: - It is available in mostly every retail shop.
Promotion: - Tag line of Pineapple is in every mouth of the people:That is,
Treat yourself all year around!
Pineapples advertisement is very famous. It helps to increase the sale of product and
make it popular. It is also helpful to make mark set leader at time of new entrance
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Products:Mango
Ingredients:
Wheat Flour,
Sugar,
Partially Hydrogenated Edible Vegetable Oils, Invert Syrup,
Milk Solids Salt, Starch,
Leavening Agents [ 503 ( Ii ), 500 ( Ii ) ], Emulsifiers, Dough Conditioners [ 223 ]
Acid Regulators [296]
Pack Size: - 90 G, 180 G
Price: -Rs.5/- & Rs.10/-
Place: It is available in mostly every retail shop.
Promotion: Tag line of Mango is in every mouth of the people:That is,
Treat yourself all year around!
Now you dont have to wait for summer to enjoy delectable mangoes. Parle Mango
Cream biscuits bring the magical flavor of mango to you
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It is also most famous tag line and it they make advertising through TV advertising
and signboards.
Public relations
Monaco is all time favorite of consumers. So Parle has good relation with people.This product wins the trust of the consumer.
Monaco is largest selling packaged salted biscuits in India. Monaco is selling more than 8 countries
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STP (Segmentation, Target, Positioning)ANALYSIS
Segmentation variables Data
Geographic
Country Indian
City In all Gujarat
Density Urban
Climate Hot and dry
Demographic
Age Every age person
Gender Male and femaleFamily size 1-2,3-4,5+
Family life cycle Married, unmarried
Income All income
Occupation Every
Education Students, colleges, universities
Religion All
Race Asain
Nationality Indian
Psychographic
Social class Every classLife style Actualizes, fulfilled, believers, achievers
Experience makers and strugglers
Behavioral
Occasions Parties, birthday, sports etc.
Benefits Quality and taste
Loyal status Moderate
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Target Market Strategy of PARLE
PARLE Company as a whole inculcates SELECTIVE MARKET SPECIALIZATION
strategy.
Target Marketing: Segmentation reveals only the firms opportunities. The firm now has to
Evaluate the various segments and decide how many and which segments it can best serve.
Evaluating Market Segments: A firm must look at three factors to evaluate market
segments: segment size and growth; segment structural attractiveness; and company
objectives and resources. The company must first collect and analyze data on currentsegment sales, growth rates, and expected profitability for various segments. It will be
interested in segments that have the right size and growth characteristics. But right size
and growth is a relative matter. There are several structural characteristics that affect long-
run segment attractiveness.
Marketing Analysis of PARLE
1. The segment is less attractive if there are several strong, aggressive competitors.
2. The existence of many actual or potential substitute products may limit prices and theprofits that can be earned.
3. The relative power of buyers also affects segment attractiveness.
4. A segment may be less attractive if it contains powerful suppliers who can control prices
or reduce the quality or quantity of ordered goods and services. The company must take
into account its own objectives and resources in relation to the segment. If a segment does
not mesh with the companys long-run objectives, it can be dismissed.
Selecting Target Market Segments
A target market consists of a set of buyers who share common needs or characteristics that
the company decides to serve.
Target marketing can be carried out at several different levels. Companies can target very
broadly, through undifferentiated marketing; very narrowly, in micromarketing; or
somewhere in between, which is differentiated or concentrated marketing.
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Positioning Strategy of PARLEPositioning strategy: - Parle is positioned in the minds of people as a value for price
product and also as a low-priced product.
Differentiation strategy: - For Parle-G the company has used channel and image
differentiation tools. Parle-G by far has the most intensive distribution coverage as
compared to any other biscuit company in India. Also the name PARLE has an image
that generates respect and a belief of good quality in the minds of the buyers.
A products position is the way the product is defined by the consumers on important
attributes; it is the place the product occupies in consumers minds relative to competing
products. It involves implanting the brands unique benefits and differentiation in
customers minds.
To simplify the buying process, consumers organize products, services and companies into
categories and position them in their minds. A products position is a complex set of
perceptions, impressions, and feelings that consumers have for the product compared with
competing products.
Packing of PARLE
As in all other biscuits, packing plays an important role in Parle-G.too. The basic small
packs are packed mechanically using automated machines and are sealed using the Polly
bag sealing machine. These small packs are then manually packed into small boxes and are
sent through the conveyor belt to be packed in large cartons. 160 packets are packed per
minute. And in one big box there are 160 Parle-G packets packed.
Before, they used to bring the packaging material from outside the company but now it is produced in the factory premises itself. For export purpose the packets have different
languages print on them depending upon the geographical location & demand of the
people. Each factory has state-of-the-art machinery with automatic printing & packaging
facilities.
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BCG MATRIX
How the matrix is applied for PARLE products
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We can say that.
PLC analysis very IMP tool in the hands of marketer. Better understanding in managing profitable products & eliminating unprofitable
one.
As products moves from one stage to another in PLC- Marketer evaluate andadjust strategies for promoting ,pricing & distribution of the product.