Strategic ManagementParle Agro Pvt. Ltd

By

ANILAL.R.S

MGT 1305007

INSTITUTE OF MANAGEMENT KERALA

Overview – Parle Agro Pvt. Ltd.

• Food, Beverages Fast Moving Consumer Goods (FMCG)

• Started in India in 1929. A Rs.5,000 cr. family owned business house.

• Enjoys 40% market share of the total biscuit market in India.

• Owns Parle-G, which is largest selling biscuit in the world with 70% market share in the glucose biscuit category in India.

• Has 12 manufacturing units for biscuits and 75 manufacturing units for confectioneries.

• Parle group has a manpower strength of over 2500 employees, including over 400 professionals.

Core Value, CSR, Vision, Mission…

• Marketing philosophy that reflects the needs of the Indian masses with value-for-money positioning.

• Parle Saraswati Vandana, one of its initiatives gives the children an opportunity to exhibit their creative skills and develop their personalities.

• Vision: To be the leaders in their business domain.

• Mission: Maintaining high quality, introducing new and innovative products, reaching every part of India, remaining customer-centric, constantly upgrading our knowledge and skills.

Powerful Brands & Products…..

Consumer Psyche towards Parle

• Parle 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.

Market Share…..

85%

40%

22%

14%

Frooti Biscuits Bailley Confectionary

Marketing Strategy

Rural-urban penetration of Biscuit :

Urban Market : 75% to 85%

Rural Market : 50% to 65%

Per capita consumption of Biscuits :

INDIA 1.8 kg,

South East Asian Countries 2.5 kg to 5.5 kg

USA 7.5 kg

Price Strategy

• Parle - G and Price mix:• Parle G has adopted the Market Penetration strategy i.e. low price along with

capturing of a large market

• Also they focus on providing good quality products at the same time, which means it uses the value pricing method.

• The value-for-money positioning helps generate large sales volumes for the products.

• Parle G is available in Re 1,Rs 2, Rs 4 to Rs 25 packet

• Profit margin for distributors is 4% and for retailers is 10-12%

Promotion Strategy

• Advertising - It was advertised mainly through press ads.

• Communication spoke about the basic benefits of energy and nutrition.

• In 1989 Parle-G released its “Dadaji” commercial which was a huge success and was aired over a period of 6 years. The communication spoke about the basic benefits of energy and nutrition.

• The next level of communication associated the brand with the positive values of life like honesty, sharing and caring. E.g.; ‘hindustan ki takat’.

• Parle has started the use of celebrity in their advertisements.

• Sales promotion - 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.

Promotion Strategy Contd….

• Public relations - Parle has done the following for enhancing public.

In the year 1997, Parle-G sponsored the tele-serial of the Indian superhero, Shaktimaan that went on to become a huge success.

In the year 2002, 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.

Parle Saraswati Vandana, one of its initiatives, is an inter-school contest based on the Saraswati Puja celebrations. Since it started in 2002 it has seen a tremendous increase in participating each year, with entries coming from schools of West Bengal.

Parle had introduced the novel promotion called Parle Golu Galata contest in 2005. (Golu means Doll & Galata means Dhammal.)

NOW…..

Currant strategies

Brand communication

The original tagline “Mango Frooty, Fresh And Juicy” is converted to “Juice Up Your Life”

Still in bottle packs the tagline is same with a small change “ Fresh N Juicy Mango”

Still the jingles used in the ad camping is same from 1990

Present ad theme “Why Grow Up”

• Packaging

• Always Innovative In Packaging.

• In India First Company To Introduce Tetra Packs.

• They Initially Introduces Pet Bottles, Also They Are The First In India.

• 2003 They Introduces Triangle Pack For Penetration Price.

• Frooty Logo

• Frooty Logo Is Changed By Making Some Attractiveness Towards The Classical One

• Use Of Emotion Icons

• Mango Emotions Called As “Magoticons” Is Used In The Pet Bottles

Public Relation Practices

Basics Of Future Strategic Plan

• Great Brand Experience

• Clear And Consistent Positioning

• Sense Of Dynamism

• Sense Of Authenticity

• Strong Corporate Culture

SWOT Analysis – Parle Agro

Opportunities

Estimated annual growth o 20%.

Changing consumer preference.

Increasing demand for sugar free, diet biscuits.

Strengths

Parle Brand.Diversified Product Range.Ext. Distribution Network.Catering to Masses.Low & Mid Pricing Strag.

Weakness

Dependence on retailers & stores.

Dependence on Parle-G brand/product.

ThreatsHike in cost of raw material affecting cost of production.Increasing distribution cost.Competitive Local bakery products.Entry of various new entrant, ITC etc.

Parle Agro – Product Life Cycle

3

5

9

4

0

1

2

3

4

5

6

7

8

9

10

Introductory (Bread Cake)

Growth (Frooti) Maturity (Parle-G) Decline (Appy, Hide&Seek)

LIFE

PRODUCT

Product BCG Matrix

Reference

• Parle agro company website

• Frooty website and frooty foundation

• Scribid.com

• Slide share.com

THANK YOU