market research paper on mass and niche distribution

8/6/2019 Market research paper on Mass and niche distribution

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A PROJECT REPORT ON

A Comparative study of mass and niche

Distribution strategy of the size the company portfolio of the product

A Project report submitted for the partial fulfillment for the award of PGDM

BY

Vijay Shankar Chand

Registration no- R-09-01-19

Examination Roll no-019

Under the supervision of

Prof. Krishanu Maitra

Asst. Prof. (Marketing), Jyotirmoy School Of Business

Jyotirmoy Knowledge Park, Kalikapur Sonarpur, Kolkata – 743330

Phone: 03218260077/74/75 Fax: 03218260067 www.jsb.org.in



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Contents

1. Introduction of distribution………………………………………..32. Distribution channel as competitive strategy……………………..4

3. Channel management………………………………………………5

4. Introduction of mass distribution………………………………….5

History

Types

Strength

Drawback

Solution

5.Introduction of Niche distribution………………………………….7History

Types

Strength

6.Mass and Niche Distribution with parle G and Hide & seek ……….9

7.parle-G evolution……………………………………………………..11

8.market strength……………………………………………………….12

9.Market mix of Parle-G………………………………………………1410.Consumer behavior…………………………………………………..19

For Parle-G

For Hide and seek

11. References



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Introduction of Distribution

Distribution channel is the primary delivery path the product or service travels from the

producer to the intended receiver.

The delivery path itself is divisible into three fundamental elements: the production end,

the throughput process, and the receiver end. How well these three get integrated – that is, the

degree to which they work in sympathy with one another – can make all the difference in the

world for delivering value fulfillment.

What do I mean by working in sympathy? Take for instance a food server at a

restaurant. Some might characterize the server as part of the product or service, and they of

course would be right in making that assertion.

At the same time, one could also say the server is responsible for the throughput process

between the production end and the receiver end. If a diner requests something special during

the food preparation process, then the server must convey that information to the cook prior to

preparation, and also make sure the cook carried it out before delivering the plate to the table.

A mishap anywhere along that path can tarnish the customer experience. Say, for

instance, the food was prepared as normal despite the special request, and then it was delivered

to the customer like that. In this case, it would be a distribution channel flaw that resulted in a

product/service problem. And that, in a nutshell, is why the three elements of the distribution

channel must be designed to work in sympathy with one another.

An even more vivid example of this can be shown with technology. Think of a television

show. There’s the production process, any of several throughput processes, and any of several

viewing options. The throughput could be local broadcast TV, cable, satellite, or internet. In this

case, the throughput is independent of the production end and the receiving end, but all three

must work in sympathy with one another for any given distribution channel to work properly.



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Distribution channels as competitive strategy

The distribution channels can also play a prominent role in the competitive strategy

realm.

A recent post about the competition in the video rental industry between big name

providers like Blockbuster, Red box and Netflix illustrates the difference a distribution channel

strategy can make within the context of the value chain.

Each started out with distinctly different distribution channel strategies. Blockbuster was

first out of the gate, followed by Netflix and then Red box.

Netflix and Red box each chose distribution channel strategies that were designed to

differentiate their value propositions from what already existed. No two designs among the three

looked exactly alike, and that mix among them ignited a competitive fervor that is currently

unfolding.

Multi-channel distribution strategies

Another important point to recognize is that a business may have more than one

distribution channel operating at the same time. Each dissimilar pathway indicates the presenceof another separate channel.

For instance, what if the above restaurant also offered home delivery? Would that not

require another set of distribution channel design considerations?

The video rental industry also provides a relevant example. Blockbuster, who started off

by solely relying on a bricks-and-mortar store model for distribution, is not only in process of

adopting the distribution channels used by Netflix and Red box, but also possibly abandoningtheir original strategy due to the comparatively high costs (and non-competitive nature) of it.

Red box, in the mean time, is looking to embrace some facsimile of the Netflix internet

strategy.



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If all three eventually end up perfecting the same distribution channel strategies, it could

very well negate the differential advantage any of them might have once gotten from their

distribution channel strategy.

This example illustrates how a distribution channel strategy can be used to either gain a

strategic advantage or diffuse one.

Distribution channel design

A distribution channel can be just as important to the overall customer experience as any

other part of the value chain. In future posts, we’ll look at some design considerations and

concerns in greater detail.

Channel management

The channel is the essential supply chain in Western Australia, by which technology

manufacturers move products from the factory to end-users. It includes any business along this

chain such as: distributors, wholesalers, integration partners, resellers, retailers and even call

centers’ and training consultants. The technology channel moves it's products and services tomarket with the greatest efficiency through the power of strategic partnerships, to influence the

customer to buy.

Process by which a producer or supplier directs marketing activity by involving

and motivating the entities comprising its channel of distribution

Distribution channels Strategy is…A conscious selection of Distribution Channels to

move products from the manufacturer to end-user. The choice of distribution channel varies



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according to products. Industrial and engineered products require a much different channel than a

standardized product. Direct, manufacturer representatives, and distributors sell through the

various distribution channels

Introduction of Mass Distribution strategy

The term mass market refers to a large, undifferentiated market of consumers with

widely varied backgrounds. Products and services needed by almost every member of

society are suited for the mass market. Such items as electric and gas utilities, soap, paper

towels and gasoline, for example, can be advertised and sold to almost anyone, making

them mass market goods.

History

Throughout the history of the world, businesses have traditionally served very

small geographic markets .The size of a business's target markets were generally limited

to the range of the entrepreneur's personal mode of travel. In the late 1800s and early

1900s, advances in transportation such as railways and automobiles opened up the door

for mass distribution. In the 1920s, radio broadcasts made it possible for companies to

send advertising messages to large, undifferentiated audiences at once, giving birth to the

mass market concept and the first mass marketing techniques.

Types

Businesses can reach the mass market with advertising messages through a variety of

media. Radio, as mentioned above, is the oldest mass market medium. Television quickly took a

dominant role as the mass medium of choice of a large number of businesses. Television

remained the most effective means of reaching mass market audiences until innovations in

technology and the Internet began to change the game around the turn of the 21st century.

Newspapers are also a traditional mass market medium, although not as effective as radio or

television due to the regional or biased nature of individual publications.

Strength Of Mass Distribution Marketing



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The main advantages of advertising to and serving the mass market are the scope

and cost-efficiency of doing business on such a large scale. Advertising messages

broadcast over mass media can reach millions of viewers in a single showing, and

economies of scale make mass distribution cheaper than regional deliveries.

Drawback of Mass Distribution Marketing Strategy

Despite their strength, mass markets feature a significant weakness. Advertising or

distributing niche products for unique market segments in the mass market can be extremely

expensive compared to the impact achieved. Running an advertisement for investment banking

services on a major television network, for example, could be an enormous waste of money,

since the vast majority of network viewers are not business owners looking to incorporate their

companies.

Solution

Market segmentation is the solution to mass marketing's inherent weakness.

Media such as magazines, websites and billboards allow marketers to target specific

demographics and geographic regions at a lower cost than mass market media. Markets

can be segmented according to a number of factors, including psychology, buying

behavior, demographics, income and region.

Introduction of Niche Distribution Marketing

A niche distribution is a focused, targetable portion of a market.



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By definition, then, a business that focuses on a niche market is addressing a need for a

product or service that is not being addressed by mainstream providers. You can think of a niche

market as a narrowly defined group of potential customers.

For instance, instead of offering cleaning services, a business might establish a niche

market by specializing in blind cleaning services.

Why should you bother to establish a niche market? Because of the great advantage of

being alone there; other small businesses may not be aware of your particular niche market, and

large businesses won't want to bother with it.

The trick to capitalizing on a niche market is to find or develop a market niche that has

customers who are accessible, that is growing fast enough, and that is not owned by one

established vendor already. See How to Find and Master a Niche Market for more information

Strength Of Niche Distribution Marketing

There are so many reasons today to try out niche marketing, but before you can decide if

it is for you, it is best to know just what it means. A definition of niche marketing is the same as a

specialized market. A specialized market is when a producer tailors a limited range of products to

be sold to a very specific group of consumers. The advantages to niche marketing are clear. One

true benefit is when you focus your business through niche marketing; you will make your work

more enjoyable. Working seems more like playing when you focus on something you love doing

for people you enjoy working for. If you would almost be willing to do the work you are

marketing for free, then you have truly found a worthy niche.

Having a true niche will also build your confidence, both in your marketing strategies

and in your business in general. If you love doing the work, it is probably something you have

been educated or trained to do. Finding that niche will help you to perfect your skills. With those

perfected skills, you will be able to sell yourself and your services in a positive way to your

prospective customers through niche marketing. Marketing to a particular niche will also make

you more credible to prospective clients. If you are a small business, those hiring you for your

services would rather have someone who is a specialist in their field as opposed to a "generalist".



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Even though customers go looking for someone who is affordable, they are also looking for

someone who can do an excellent job for their money. Okay doesn't cut it...so focusing on a

specific niche will help you find customers. Once you have found a niche, your name will

circulate around to prospective clients more quickly, as well. If you focus your marketing on a

specific clientele, those customers will be more likely to remember you and your products and

services. If you hook them in and get their initial business (and do a credible job) , repeat

customers and referrals may start coming your way.

Another big benefit to niche marketing comes when you look at your "bottom line". When you

market to a particular niche, you will inevitably reduce your marketing costs. You will be

targeting a specific group when you market your goods and services, so you won't have to have

big, generalized ads that can cost you a fortune. This means a higher income for you when you

work with niche marketing. Not only will your marketing strategies find those persons who

could use what you are selling, but you can also ask for higher fees since you are a "specialist" in

your field. You will be worth that cost when you complete your clients' tasks quickly, efficiently

and with professionalism. The last benefits to finding a niche and marketing to it is that you

become a distinctive service, which may cut down on the competition of other companies doing

the same services as you. Others may try to follow in your business idea, but you can always

state that you were the original. Plus, if it was your niche first, you will probably have a

significant part of the market using your services already! Also, by cutting down on the

competition, other companies doing other specialized services may refer business to you! So, as

you can see, there are many advantages to niche marketing. Find a specialized skill and tailor

your whole business around it.

Mass And Niche distribution with Parle-G

(Parle-G and Hide seek)

About the Company

A cream colored yellow stripped wrapper with a cute baby photo containing 10 – 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. Yes, the size of



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their packing has definitely changed but for the consumers good as these are money savers pack.

The 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.

Initially 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 the first brands

of biscuits to be introduced, which later went on to become leading names for great taste and

quality.

For around 75 years, Parle have been manufacturing quality biscuits and confectionery

products. Over the years Parle has grown to become a multi million- dollar company with many

of the products as market leaders in their category. The recent introduction of Hide & Seek

chocolate chip biscuits is a product of innovation and caters to a new taste, being India’s firstever chocolate-chip biscuits.

All Parle products are manufactured under most hygienic conditions. Great care is

exercised in the selection and quality control of raw material and standards ensured at every

stage of the manufacturing process.

Parle Products has 4 manufacturing units for biscuits and confectionaries at Mumbai,

Haryana, Rajasthan and Karnataka. It also has 14 manufacturing units for biscuits & 5manufacturing units for confectioneries, on contract.

All these factories are located at strategic locations, so as to ensure a constant output &

easy distribution. Today, Parle enjoys a 40% share of the total biscuit market and a 15% share of



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the total confectionary market, in India. The marketing mix of Parle for this project has been

studied from the point of view of Parle biscuits; mainly Parle-G and Parle hide & seek.

PARLE G - THE EVOLUTION !!!

Parle-G has been a strong household name across India. The great taste, high nutrition,

and the international quality, makes Parle-G a winner. No wonder, it's the undisputed leader in

the biscuit category for decades. Parle-G is consumed by people of all ages, from the rich to the

poor, living in cities & in villages. While some have it for breakfast, for others it is a complete

wholesome meal. For some it's the best accompaniment for chai, while for some it's a way of

getting charged whenever they are low on energy. Because of this, Parle-G is the world's largest

selling brand of biscuits.

Launched in the year 1939, it was one of the first brands of Parle Products. It was called

Parle Glucose Biscuits mainly to cue that it was a glucose biscuit. It was manufactured at the

Mumbai factory, Vile Parle and sold in units of half and quarter pound packs. The incredible

demand led Parle to introduce the brand in special branded packs and in larger festive tin packs.

By the year 1949, Parle Glucose biscuits were available not just in Mumbai but also across the

state. It was also sold in parts of North India. The early 50s produced over

150 tones of biscuits produced in the Mumbai factory. Looking at the success of Parle-G, a lot of

other me-too brands were introduced in the market. And these brands had names that were

similar to Parle Glucose Biscuits so that if not by anything else, the consumer would err in

picking the brand. This forced Parle to change the name from Parle Glucose Biscuits to Parle-G.

Originally packed in the wax paper pack, today it is available in a

contemporary, premium BOPP pack with attractive side fins. The new airtight pack helps to keepthe biscuits fresh and tastier for a longer period. Parle-G was the only biscuit brand that was

always in short supply. It was heading towards becoming an all-time great brand of biscuit.

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. In 1989, Parle-G

released its Dadaji commercial, which went on to become one of the most popular commercials



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for Parle-G. The commercial was run for a period of 6 years. Parle-G grew bigger by the minute.

Be it the packs sold, the areas covered or the number of consumers. It became a part of the daily

lives of many Indians. It wasn't a biscuit any more. It had become an icon. The next level of

communication associated the brand with the positive values of life like honesty, sharing and

caring. 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 and Shaktimaan.

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 endeavor 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.

Marketing Mix of Parle Products Limited

Product Strategy

Product level

1) Core benefit- the core benefit of biscuits is to satisfy hunger of the consumer

2) Basic product- in the second level, the basic product is biscuits.



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3) Expected product- the consumers expect the product to have a good taste and

also give nutrition.

4) Augmented product- parle biscuits increase a person’s energy levels. This is not always

expected by the consumers and hence exceeds customer’s expectations.

5) Potential product- in the future parle could come up with different products such as a snack

which could be a combo of chocolate and biscuit.

Classification of products

1) Based on tangibility- Parle biscuits are tangible, i.e. one can see and touch them.

2) Based on functional life- Parle biscuits are consumables since biscuits form a

part of food and have a short life.

3) 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.

4) Based on utility- Parle biscuits are convenience goods. They are staples since they are bought

by consumers regularly. Also they are partly impulse products.

Brand

The Parle Biscuit brands, such as, Parle-G, Monaco and Krackjack enjoy a

strong imagery and appeal amongst consumers. Be it a big city or a remote

village of India, the Parle name symbolizes quality, health and great taste. And

yet, this reputation has been built, by constantly innovating and catering to new

tastes. This can be seen by the success of new brands, such as, Hide & Seek and

Hide & Seek Milano.

Brand

name strategy Parle follows company brand name strategy, since all its products are named

using the company’s name as a prefix such as Parle-G, Parle- Monaco, Parle hide&seek, Parle

digestive Marie, etc.



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Brand strategy decision:

Old New

Parle follows both line extension and brand extension for its products. For a product like

Parle-G it followed line extension with the introduction of Parle-G milk Shakti and Parle-G

magix which has 2 flavors- choco and cashew. For Parle Monaco too it followed line extension

when a new favor Monaco jeera was introduced. Similarly when it introduces any new product in

the biscuit category, it follows line extension. Initially Parle used to produce only

confectionaries. Parle followed brand extension with the introduction of products in the biscuits



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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.

Product Life Cycle

For parle

Parle as a company has reached the maturity stage in its products life cycle; since products such

as parle-G, parle Monaco, parle Krackjack which form a major part of parle products’ sales have

captured most of 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.

For parle hide and seek:

Parle hide and seek was introduced in 1998 with favors such as mint, orange and

chocolate. But it did not really succeed in capturing the consumer’s attention. Soafter a few years



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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.

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.

For Parle G: Parle G was initially recognized by its iconic white and yellow stripped wax paperwrapper 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-G etc. Due to increasing competition Parle G now uses plastic wrappers for its packaging.

Parle-G comes in 8 different sizes: 25gms, 44gms,n 93.5gms, 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



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biscuits in the back pocket of his jeans emphasizing on the small size of the product. Parlehide & seek Milano: This product of Parle has a flashy purple colored 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.

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 thecountry.

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.

Channel dynamics:

Parle has a multi-channel marketing system since it uses more than two marketing channels toreach all its customer segments.

Promotion Mix

The marketing mix tools used by Parle are Advertising, Sales promotion and Public relations.

AdvertisingParle-G started being advertised in the 80's. It was advertised mainly through press ads. The

communication spoke about the basic benefits of energy and nutrition. In 1989, Parle-G releasedits Dadaji commercial which went on to become one of the most popular commercials for Parle



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G. The commercial was run for a period of 6 years. Parle-G grew bigger by the minute. Be it thepacks sold, the areas covered or the number of consumers. It became a part of the daily lives of

many Indians. It wasn't a biscuit any more. It had become an icon. The next level of communication associated the brand with the positive values of life like honesty,

sharing and caring. The year 2002 went down as a special year in Parle-G's advertising history.

A year that saw the birth of G-Man - a new ambassador for Parle-G. Not just a hero butalso 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 acompletely 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 Terrolenelaunched this campaign. It was also supported by print medium through posters and streamers

put up at the retail outlets. Another campaign that was launched by Parle for Parle-G was - ’G’mane ’GENIUS’’. For this a series of ads were shown in which a little kid eats Parle G and tricks

the wise and experienced people. Just a few months back a reminder TV commercial waslaunched 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 consumeremotion. 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 areportraying actor Hrithik Roshan. This tells us that the product is being promoted by celebrity

endorsement to increase awareness of this product and help capture the consumers’ attention.

Sales 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 organized for the employees of Parle and their

families; where Parle products are giveaway prizes.

Public Relations

Parle has done the following for enhancing public relations: In the year 1997, Parle-G sponsoredthe 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 thisassociation 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 bringthe 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 thedreams of children. There were over 5 lakhs 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 theAustralian 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 friendsand relatives are invited to witness the same. Through a detailed research, Parle found that due to



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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 GoluGalata contest, in 2006 Parle Products Pvt. Ltd took the contest to Chennai, Madurai, Trichy, &

Kumbakonam. (Golu means Doll & Galata means Dhammal.)

Consumer behavior

For Parle-G:

In India it is a habit to have biscuits along with chai or tea - Parle G is referred to as

"biscuit" in rural areas - thus when asked for biscuit to a shopkeeper it simply means Parle-G

biscuit in rural areas. Understanding consumer behavior is tough. The study of consumer

behavior includes the knowledge about the consumer, his buying motives & buying habits.

Keeping all this in mind, the factors influencing the buying behavior of consumers are 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

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,



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continue this practice even after growing up. They continue their consumption of Parle-G evenafter they grow up.

2) Occupation

The buying behavior of the consumer is influenced also by the occupation he or she belongs

to. In case of Parle-G, the purpose for buying the product varies from a person with a high post

in a M.N.C. to a poor laborer. For the executive employee, he may or may not buy the product.

He may buy a more expensive or an imported biscuit brand because he can afford it. Also he

may buy it only to be one of the many snacks available to him. On the other hand, a poor laborer

would buy a packet of Parle-G simply to satisfy his hunger. For him, it is not matter of choice or

luxury, but a necessity because it’s the easiest & the cheapest he can get.

3) Income

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.

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:



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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.

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..

Market Segmentation

Level of market segmentation

Parle-G is consumed by people of all ages, from the rich to the poor, living in cities & in

villages. While some have it for breakfast, for others it is a complete wholesome meal. For some

it's the best accompaniment for tea, while for some it's a way of getting charged whenever they



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are low on energy. Parle Company practices mass marketing for Parle- G which appeals to

masses. It is a product liked by everyone and does not cater only to a specific group or part of the

whole market. Thus it is mass production, mass distribution and mass

promotion of Parle- G for all buyers. However, Parle follows Niche marketing for Hide & Seek.

It is a premium product since it is priced at a high price and also with its chocolate flavor it is

accepted by most chocolate lovers. When hide & seek was first launched, there were no other

biscuits of its kind in the market.

Market segmentation

Geographic segmentation:

Parle-G is consumed by people staying in urban, semi urban and rural areas. Hide & Seek however, being a premium product having a high price is consumed only in urban and semi

urban areas

Demographic segmentation:

Age-Hide n Seek is mainly for youth and children. Parle-G is however consumed

by everyone.

Income-Hide n Seek being highly priced is consumed only by high income group.

Whereas Parle-G is consumed by all income groups, but is mostly consumed by the lower

and middle income groups.

THE STRENGTH OF THE BRAND

Over the years, Parle has grown to become a multi-million US Dollar company. Many of the

Parle products - biscuits or confectionaries, are market leaders in their category and have wonacclaim at the Monde Selection, since 1971.

Today, Parle enjoys a 40% share of the total biscuit market and a 15% share of the total

confectionary market, in India. The Parle Biscuit brands, such as, Parle-G, Monaco and



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Krackjack and confectionery brands, such as, Melody, Poppins, Mangobite and Kismi, 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, we know that 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,

or the single twist wrapping of Mango bite.

In this way, by concentrating on consumer tastes and preferences and emphasizing

Research & Development, the Parle brand grows from strength to strength.

Reference:

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Class notes

market research paper on mass and niche distribution

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