PARLE PRODUCTS

Presented By:Group 1Mohd. Wasi(91091)Ankit Mishra(91123)Ankur Gupta(91124)Gaurav Seth(91132)Kunal Gupta(91139)Mohit Jain(91143)

SOME QUICK FACTS Company was started in 1929 In subsequent years company broke

into Parle Agro, Parle Products and Parle Bisleri

Apart from the factories in Mumbai and Bangalore Parle Products 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

P a r l e P r o d u c t sBiscuits Confectionary Snacks

Parle - G Krackjack Magix Monaco Kreams Parle 20-20 Cookies Nimkin Chox Hide and Seek Hide & Seek Milano Digestive Marie Parle Marie Milk Shakti Golden Arcs Kreams Gold Monaco Jeera

Melody Mango Bite Kaccha Mango Bite Poppins Kismi Toffee Kisme Toffee Bar Kismi Gold Orange Candy Xhale 2 in 1 Eclair Golgappa Melody Softee Parle Lites

Musst Bites Jeffs Cheeslings Musst Stix & Musst Chips Sixer Sixer Zeera Monaco Smart Chips

FLAGSHIP PRODUCT

INDUSTRY The total production of biscuits in India is estimated to

be around 30 lakh MT, the organized sector accounts for 65% and the unorganized sector accounts for 35% of the total industry volume.

The organized sector is valued at above Rs 8000 crores. The biscuit industry is estimated to grow over 15-17% in

the next few years. The per capita consumption of biscuits in India is 2.0 kg. India is ranked 3rd after US and China amongst the

global biscuits producers.

The export of biscuits is approximately 17% of the annual production, the export of sweet biscuits for year 2007-08 was Rs 145.93 Cr and for year 2008-09(April-Dec) was Rs 280 Cr, the major exporting regions were Haiti, Angola, USA, Ghana, UAE.

The imports are not significant amount as compared to the total consumption.

The penetration of biscuits in urban and rural market is 85% and 55% respectively.

The Biscuit industry employs almost 3.5 lakh people directly and 30 lakh people indirectly.

INDUSTRY PROFILE

COMPETITORS

INTERMEDIARIES AND THEIR ROLE IN THE DISTRIBUTION NETWORK

C&FAs

Distributors

Institutional Distributors

Wholesalers

Retailers

RETAIL CUSTOMER PERCEPTION Tried ascertaining the perception of the

retail customer based on a set of parameters which are:

Visibility in the shelf space Delivery of the final good in the best

possible shape to the customer Handling of customer complaints at the

retailer’s end Presence of promotional boards/signage

at the retail outlets

TERRITORY DESIGN IN NCR

ASM(4)

SO

D1 D2

SO

D3 D4

DESIGN CONTD… Parle distributors are divided in two

categories and soon it will be three. A- these distributors have all smaller

packs like 5, 10 , 15 B- these distributors have all family packs

and certain different brands C- these distributors will soon come up for

chips segment: smart chips and musst stix.

MARGINS AT EACH LEVELLevel Margin Parle- G (Rs)CFA CommissionDistributor 4% + incentives +

claims615(Landing cost)

Retailers 9.5 % +2-3% 650, 635Wholesalers 624Institutional Distributor

4% + incentives + claims

590

Institutional wholesalers

615

COVERAGE PLAN FOLLOWED BY DISTRIBUTORS

Each Sales Officer handles 2-3 distributors

Each Distributor covers 12 markets on an avg.

They have around 6-8 salesmen 2 salesmen together cover 2 markets in

a day A market usually has 50-60 shops A large market is divided into 2

Salesmen go around and take orders during the day

Every salesman has a Daily Stock Register The Product Lines Dates Opening , Closing and Lunch times

Billing is done in the evening Next day, a tempo leaves for the

market with supplies Shop visits are scheduled according

to opening, lunch and closing times Order of the shop visit is reversed

after every 2 weeks Payment is collected at the same

time Any replacement products are also

picked up

INFRASTRUCTURE REQUIRED BY DISTRIBUTORS

Warehouse 3-4 tempos or vikrams 1-2 Hand rickshaws Salesmen bikes or cycles Computer Printer Internet connection

SUPPORT PROVIDED TO DISTRIBUTORS

Sales Officer Visits Merchandize

Parle is lagging on following: No Central Software No Palm Top or Hand – Held devices for

field officers No Stock Registers for distributors

PAYMENT/ CREDIT TERMS GIVEN TO DISTRIBUTORS BY COMPANY

Advanced payment model and no credit Distributor has to submit a DD in advance

Bonus is forwarded to the distributor on achievement of requisite targets

Very strict norms are put in place for replacements Distributors usually have to wait for 2-3 months

PAYMENT/CREDIT TERMS GIVEN BY DISTRIBUTORS IN MARKET

Distributor relaxes credit terms to a minimal level for wholesalers and bulk orders

But for small orders for retailers no

credit is allowed

In case of replacement distributors adjust for the same in subsequent orders

LOGISTICS NETWORK

Company

Consumers

CFA

Wholesalers

Super Markets

(Big Bazaar)

Institutional

Distributor

Institutional

WholesalersRetaile

rs Caterers

Railways

Distributors

Consumers

Office Cantee

ns

PROBLEMS FACED IN THE DISTRIBUTION SYSTEM

Unfulfilled commitments Improper Supply Despite of standard markets the target were not met.

Reasons: Shortage of prime products like Monaco, Parle-G, cream All shops were not covered in a particular distributor’s market The delivery van left between 12-1 pm (lunch time).

CONFLICTS AND CO-OPERATION AMONG CHANNEL MEMBERS

CO-OPERATION AMONG CHANNEL MEMBERS

Parle quality circles Pilot salesmen scheme Scheduling of sales Agreement defining rights

CHANNEL CONFLICTS

Ownership of assets Stocking issues Replacement of products Credit policy

CONTD….

Packaging Replenishment Territory Conflict Margins

Strength

Parle has a wide distribution network due to which their presence is stronger than its nearest competitor BIL.

Parle as a brand needs no introduction, their famous Parle-G is World famous and automatically lifts up their sale. Parle G is world’s largest selling biscuit.

SWOT

Weakness Shortage of stock in company Lack of advertisement Lack of shopkeeper incentive schemes

. Opportunity Cake is the most lucrative product line where only

Britannia has the monopoly, if Parle enters in this segment surely Britannia’s stronghold will be loosened.

Railways is one of the biggest market, Parle still has not tapped it effectively as there are no separate distributors for that

Threat

ITC’s sunfeast is the biggest threat as it is quickly eating up the Parle’s and BIL’s market share.

Lack of product awareness, consumers are aware only of its famous brands like Parle-G, Monaco, Hide & Seek.

Distributor

Sales Officer

ASM

Core committee

of Parle

RECOMMENDATIONS•Rotation policy•Inventory policy

• Should go for market visit•Co-ordination between different groups

• Keep the track of inventory of CFA•Market visit•Incentives for salesman•Advertising for 20-20 and other products

Thank You