Executive Summary

Strong brand equity has become a very important factor that influences
consumer’s perceptions of a brand. Success in brand management arises
from understanding and managing brand equity correctly to produce strong
attributes that will influence consumers when making their choices.

This thesis focuses on the importance of these dimensions (brand

awareness, brand loyalty, brand image and perceived quality) of customer-
based brand equity on consumer’s perceptions of a brand. This is based on
the assumption that all these dimensions of customer based-brand equity
will have influence on consumer’s perceptions of brand. However, this
thesis aims to find out which among these three dimensions (brand image,
brand loyalty and perceived quality) appear to have the least brand equity
in both restaurants and to find out if customer based-brand equity differ
between the two restaurants with respect to each attribute of brand
awareness, brand image, perceived quality and brand loyalty. Brand
awareness was treated separately from other dimensions because of the
difference in scale.

A structured questionnaire was constructed to provide answers to our

research question. In this study, one hundred questionnaires were
distributed, but only sixty four useable questionnaires were realized. The
study surveyed four dimensions of consumer’s based-brand equity namely
brand awareness, brand image, perceived quality and brand loyalty. Among
the three dimensions, brand loyalty appears to have the least brand equity
rating by consumers than the other dimensions. Although, the four
dimension appear to have influence on consumer perceptions of brand.
A strong brand allows customers to have a better perception of the
intangible product and services. Also they lessen customer’s perceived
monetary, safety and social risk in purchasing services which are hard to
ascertain before purchase. Strong brands offer a lot of advantages such as
reduced competition, larger brand loyalty and increase response to price
adjustment by customers, larger profit and brand extensions to a service
firm than brands that are not strong.

Conclusively, the best way to build brand value and stop product and service
commoditization is through continuous attempt to build brand equity. Strong
brands are established by creating an emotional attachment with customers,
seeking differentiation in communication and performing the service.
Branding makes clear a restaurant’s reason for existence and inspires its
employees to get used to the brand thereby building it for customers.

PROBLEM STATEMENT

Due to the fast change in the global market and increase competition,
management of brand has become of importance.

Building of strong brand equity is the top most priority of many fast food
restaurants, but attaining this objective is not always an easy task due to
the fact that the products and services of many fast food restaurants are
similar and their means of distributions are alike. Price in the form of
discount and brand equity is the only possible means by which customers
can differentiate one brand from another. Indeed, price promotion has been
one of the most important marketing strategy relied upon by most fast food
restaurant firms and this has lead to constant war price that have reduced
revenue and weaken customers loyalty.
When reading through literatures, we found limited researches regarding
customer based-brand equity in service industry and most of them focus on
the relationship between brand equity and firm performance using brand
awareness and image as moderating effect. surveyed these four dimensions
of customer based-brand equity (brand awareness, perceived quality, brand
loyalty and brand image) have suggested that they all have influence on
consumer.

Therefore, we have chosen to carry out a research to indicate the

importance of these four dimensions of brand equity (brand awareness,
brand loyalty brand image, perceived quality) on consumer perceptions of a
brand and to find out which among them those not really have much
influence on consumer perceptions of a brand.

Two Sectors of Biscuit Industry

INTRODUCTION
In the whole research my job was to know the consumer behaviour and the
brand positioning of PARLE products.

Industry Trend

The biscuit industry is been experiencing steady growth of 14-15% annually.

In 2008, the growth exceeded 16% mark on account of exemption from
Central Excise Duty on biscuits.

Annual Growth Rate of Biscuit Indusrty in India

1) OBJECTIVES : - In any research there are always two types of

objectives which differ with type of management. These two research
objectives arefollow……….
 a) Management objective

b) Research objectives
research objectives are always of two types i.e. primary
research objectives and secondary research objectives.

MANAGEMENT OBJECTIVE:-
Here the ultimate and sole objective of the management is to satisfy the
consumer with increased sales and for that they want to know that what are
the specific qualities and attributes of the products which are critical for any
consumer.

RESEARCH OBJECTIVES:-
Primary research objective for any research team is always single and is
always based on the management objective. Here the primary research
objective for the research team is
“ To determine the effective attributes of products which
affects the consumer buying behaviour “
Secondary research objectives are the descriptive form of primary research
objective or we can say that in this step primary research objectives are
broken down into secondary research objectives. Here secondary research
could be as follow…
a) Brand choice

b) Dealer choice

c) Purchase timing

d) Purchase quantity

Based on all these objectives a researcher can explore consumer

preference he can also illustrate the factors affecting secondary
objectives.
 Brand choice shows that based on what factor a consumer makes his
brand choice. These factors could be qualities of products etc.

Dealer choice of a consumer explores that based on what factors a

consumer makes his dealer choice. Here regular availability could be
one of the important basis .

Purchase timing and purchase quantity explores that how much product
should be available to the dealer shop at a particular time.

Collectively the objectives for this research are….

a) To know the consumer taste and preference.

b) To know likes and dislikes of consumer.

c) To know the relative positioning of Parle products in the consumer’s

mind.

d) To explore the positioning of competitors.

e) To determine the factor affecting consumer buying behaviour.

f) To know post buying behaviour of consumer.

DATA DATA
SAMPLE
RESEARCH
RESEARCHANALYSIS
SELECTION
COLLECTION
RESEARCH
APPROACH- - SURVEY
STRATEGY-
METHOD
PURPOSE- -INTERVIEW
QUANTITATIVE
-
PERCEPTUAL
RANDOMLY
DESCRIPTIVE
FROM
MAPPING
Pune
2) RESEARCH METHODOLOGY :-
3) COVERAGE :-

In the research all areas of PARLE products retail outlets in Pune was
covered and for the primary data collection I took personal interview of
housewives.

4) SAMPLE SELECTION : -

Random sample selection from Pune.

5) TIME PERIOD :-

Duration of research project was 1 month and 27 days. It was started on

30th April and it was finished on 27th June.

6) LIMITATION :-

a) Marketing research is the study of human behaviour therefore it can not

be 100 % accurate.
b) Biasness of respondent could be there and it may lead to wrong
information
c) Language also create problem in the research during data collection and it
may also lead to wrong data collection.
d) Small sample size may also lead to wrong interpretation.

7) SAMPLE SIZE :-

Size of the sample for this Dealer Outlet research was 150.

8) APPLICATION OF RESEARCH FINDINGS:-

With the help of the results company can efficiently satisfy the needs of the
potential customers. It helps in knowing that what are the important
attributes of the products which affects consumer buying behaviour so that
company can improve these attributes in the products.
It also helps company to deal with competition.

SECONDARY DATA AND PRIMARY DATA COLLECTION

In every research there are two type of data are used.

a) primary data
b) secondary data

Source of secondary data in this research was Parle head office, magazine
and old research papers.

Primary data was collected through personal interview with the help of
Questionnaire.
In any survey research data collection is systematic collection of information
directly from the respondent.

In survey research there are four way or mean of data collection…

a) Telephone interview
b) Mail interview

a) Personal interview

b) Computer interview

For any fast moving perishable consumer product telephone, mail and
computer interviews are not feasible because they can not provide sufficient
information to the respondent and also can not guide the respondent during
the data collection therefore we have selected personal interview method for
data collection.
Personal interview involve collection of information in a face to face
situation.
In the personal interviews, the interviewer ask the question in the face to
face situation. The interview may take place at the respondent’s home or at
a central location or retail outlet like Reliance Fresh.

PLACE OF DATA COLLECTION :-

Place of data collection that we have decided was reliance fresh outlets in
Pune.

SAMPLE SIZE :-

Size of the sample for this consumer research was 250.

Company Profile

About Parle
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
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 consumers it's a beacon of faith and trust,
competitors look upon Parle as an example of marketing brilliance.

History of the company

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 wouldn’t 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 people's 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.
Quality of the products

Hygiene is the precursor to every process at Parle. From husking the wheat
and melting the sugar to delivering the final products to the supermarkets
and store shelves nationwide, care is taken at every step to ensure the best
product of long-lasting freshness. Every batch of biscuits and confectioneries
are thoroughly checked by expert staff, using the most modern equipment
hence ensuring the same 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 in Haryana and Neemrana in 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
Products also has 14 manufacturing units for biscuits and 5 manufacturing
units for confectioneries, on contract.

Core Value

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 allows people from all classes and
age groups to enjoy Parle products to the fullest.

Awards
Parle products have been shining with the golds and silvers consistently at
the Monde Selection ever since they were first entered in 1971. Monde
Selection is an international institute for assessing the quality of foods and is
currently the oldest and most representative organization in the field of
selecting quality foods worldwide.

Annual Production:
The organized biscuit manufacturing industry‘s annual production figures
show YOY growth indicating rising consumption pattern in India.

Annual Production Figures in Million Metric Tonnes

Brands
Parle Biscuits

Parle biscuits are linked with factors of power and wisdom providing nutrition
and strength. Parle biscuits are indeed much more than a tea- time snack,
they are considered by many to be an important part of their daily food.
Parle can treat you with a basket of biscuits which are not only satisfying but
are also of good and reliable quality. Parle biscuits cater to all tastes from
kids to senior citizens. They have found their way into the Indian hearts and
homes.

Every nation dreams of a better tomorrow. And every nation’s tomorrow lies
in the hands of its children; children who make the nation proud in every
aspect; the young geniuses who shape the future of the nation. So it’s
important to nourish these young minds, for 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 strength
for both body and mind. Treat yourself to a packet of Parle-G to experience
what has nurtured and strengthened the minds of millions of genius Indians
for over 65 years. It’s more than just a biscuit. A meal substitute for some, a
tasty and healthy snack for many others. Consumed by some for the value it
offers, and many others for it’s taste. Little wonder that it’s the Largest
selling Biscuit Brand in the world.

Industry Players

Other Players
• HLL,
• Bisk Farm,
• Anmol,
• Elite,
• Cremica,
• Dukes,
• Anupam,
• Craze,
• Nezone

Major Market Share Holders Organized Sector

PEST

biscuit goodies:
Parle - G Hide and Seek
 Krackjack Hide & Seek Milano
Magix Digestive Marie
Monaco Parle Marie
Kreams Milk Shakti
Parle 20-20 Cookies Goldenarcs
Nimkin Kreams Gold
Chox Monaco Jeera
Sweets:
Melody Kismi Gold
Mango Bite Orange Candy
Kaccha Mango Bite Xhale
Poppins 2 in 1 Eclair
Kismi Toffee Golgappa
Kisme Toffee Bar Melody Softee
Mazelo Parle Lites

Snacks:
Musst Bites Jeffs
Cheeslings Musst Stix & Musst Chips
Sixer Sixer Zeera

Parle Social Responsibility

Parle Products with its wide platter of offering of biscuits and

sweets like Parle-G, Krackjack, Monaco, Melody, Mango bite and
many others since 1929 is also actively engaged to change & uplift
the social face of India. As a part of Corporate Social Responsibility
Policy Parle is keenly involved in the overall development of
younger generation with focused endeavor to built New Face of
India and spread happiness & joy all over.

Parle Centre of Excellence as an institution is dedicated to enrich

the lives of people through conducting various cultural programs
across all region to facilitate the all round development of the
children. Every year, Parle organises Saraswati Vandana in the
state of West Bengal during the festival of Saraswati Puja, inviting
schools from all across the state to participate. The event is one of
much fanfare and celebration, keeping alive the culture and
traditions of ages. Our involvement in cultural activities has seen
the inception of Golu Galata in Tamil Nadu, held during Navratri.
Its gives a platform to all the members of a household to
showcase their creativity and being judged by immanent
personalities. Thousands of families participate and celebrate the
occasion on a grand scale.

These events give us a chance to interact with children on a one-

to-one basis, and promote our belief of fun and health for the
whole family

THE CHANNEL NETWORK

Distribution channel

GCMMF Manufacturing
Head office

First leg (from manufacturing units)

WD…1 Retail...n
WD…n
Depot...1 Depot...n

Second leg

Third leg

Retail…1

Downstream
Procurement flow
Channel

SELECTION, MOTIVATION & EVALUATION OF CHANNEL MEMBERS

Selection:

The company takes into consideration a host of factors while selecting the
channel members. This is because it believes that selection of channel
members is a long run decision & the rest of the decision regarding the
supply chain depends upon the efficiency & coverage by the channel
members. The following are the host of factors considered by the company
in selecting the channel members:

• Authentication is required by the regarding the identity of the channel

members, which includes the name & address, photograph of the
location.
• Proof of solvency which requires name & address of the channel
member’s bankers

• Safety of the inventory, which means that the distributor/ dealer should
get the stock of the company insured.

• Inventory or the perishable goods kept by the distributor/ dealer should

be in good condition which means a detail of storage space &
Refrigeration facility is to be provided.

• Details of the delivery vehicle, which includes Light Commercial Vehicles,

Matador, 3 Wheeler Van, Tricycle Van & Hand/Push cart. The number &
model of each of the vehicle needs to be furnished to the company.

• Company acknowledges the fact that it needs to be sensitive to the

market demands. For this it requires that a number of salesmen needs to
be present on the field. The salesmen too are divided into various
categories like the Field salesmen & Counter salesmen. Also the details of
Clerical Staff & Mazdoors are to be provided. The technical competence of
the salesmen needs to be mentioned

• Details of the product kept of other companies have to be provided. The

annual sales of these products too have to be mentioned. Also details of
complementary products & product lines need to be mentioned.

• Dealers of the company must carry a good reputation. This is due to the
fact that the company believes reputation of the dealer affects the
clientele.
• Market coverage by the distributors needs to be defined which includes
details of Geographic coverage & Outlets per market area.

• The company also requires the dealers to furnish any Advertising & Sales
initiative undertaken by them on behalf of the company.

Motivation of Channel Members

Company strongly believes in maintaining a good relationship with the

channel members so that they are genuinely motivated to work for the
company. Also if the channel members are motivated, they can also initiate
advertising & sales promotion schemes on behalf of the company. However
to keep the channel members motivated to work, the company has to incur
certain costs but the benefits of it are felt in the long run. The following are
the motivation programs run by the company:

Distributors

• One of the main factors, which keep the distributors motivated, is the
margin. Usually the margins offered by the company are 8% & it is raised
to 8.5%. Volume wise this comes out to be a big figure since Parle’s
product has a good demand in the market. However compared to the
other companies the margins are still lower since the new players in the
market offer a much higher margin. But the very fact that Parle’s
products have good demand in the market motivates the distributors to
stock it.

• Parle Products being a cooperative cannot afford to give heavy monetary

incentives. Parle’ s products are considered to be value for money since
 the company does not believe in charging high margins. In fact all
monetary incentives are just the short run means to promote the
company’s product. In order to keep the Channel members motivated in
the long run, Parle builds on the concept of “Trade Marketing” which
makes the dealers & the distributors believe that the company’s products
are worthy of being pushed in the market.

• The company is organizing various Total Quality Management initiatives &

workshops. Here various counseling measures are undertaken by the
company to improve the overall working of the distribution network.

• Vision and mission statement: the company cascades down the vision
to the various channel members, this is done through various events
organized by the company at different locations where the values of the
company are made clear and enforced to the channel members. Also the
fact that Parle being a cooperative society cannot afford to spend
exorbitantly on such events therefore it has a very traditional way of
organizing these get together which leaves an impact on the members.

The Retailers

• Trade schemes: these are undertaken by the company only for the hard
selling items e.g. Busicts and Snacks etc. for these the company raises
the margins by 2%, also schemes like good packaging incase of butter
 and cheese is undertaken by the company. However this is only a short-
term initiative to push the products of the company.

• Glow boards: the company puts up glow boards at the retailer and pays
the major portion of the cost.

• Schedule of the salesmen: they provide the retails with this schedule
so the retailers can pre estimate the quantities of the various products
needed.

• Infrastructure facilitation: the company facilitates the retailers to buy

beautiful stalls by formulating an easy payment program and a
commitment to buy back the equipment at a reasonable price when the
value of the equipment has depreciated.

Evaluation of channel members

• Beat plan: this plan is generated for the various product categories. A
weekly schedule is prepared for various markets and the retailers the
turnover for each of the product is calculated for the wholesale
dealers.

• Cumulative performance: the performance of the dealers is

averaged out over a period of three years where a comparison is made
of the present performance vis-à-vis the previous ones.

• Target versus achievement: the performance and the targets are

compared and therefore the gaps are identified which help in
 evaluating the WD and planning for the next year as well. This is done
for each of the product category.

• Other criterion

○ Details of the bank guaranty

○ Photographs of the offices
○ Details of the WD salesmen and the product lines he deals
in
○ The computerization facility available
○ The storage space
○ Stall facility with photograph
○ Details of the delivery vehicle with photograph
○ Summary of the monthly potential sales of markets
○ Summary of the product wise monthly sales potential of
institutions

CONFLICTS AND CO-OPERATION AMONG CHANNEL MEMBERS

Conflicts
 • Ownership of assets: Previously the company used to give the
products on lease to the retailers, when the company wanted the stuff
back; the retailer disagreed to comply and created issues of
ownership.

• Stocking issues: The company doesn’t want the retailers to stock the
competing brand in the company leased stall, which at times s hard to
manage as retailers tend to do it often.

• Replacement of products: The deterioration in the product calls for

fail in replacement by the company this major issue of vertical conflict.

• Credit policy: Compared to the market, the company’s credit period

is less that specially incase of institutional sales is very important.

• Packaging: The channel members for easy storing demand a better

quality of packaging.

• Replenishment: The replenishment of the stocks is not prompt in

case of Parle cheese Biscuit and all hard selling items.

• Margins: The Company provides least margins to all the channel

members. For e.g. The retailer’s margin in case of butter is 8%
as compared to Britannia’s 12%

Co-operation among channel members

• Parle quality circles: The members of the local channel meet

together every month to share issues and the achievements of the
channel members. This is an ongoing activity facilitated by the
 company offices in different locations; this enables the channel
members to learn together and reduces the horizontal conflicts among
the WDs.

• Pilot salesmen scheme: To reduce the financial burden of the

distributors this scheme is run whereby half the cost of the salesmen is
born by the company and the rest half by the distributor

• Scheduling of sales: The WD’s provides Schedule of the distributor’s

sales men to the retailers so that the retailers can plan out and place
the orders in advance.

• Agreement defining rights: The company makes the distributors

sign an agreement where the areas of operation for each of the
distributors are defined, therefore avoiding any conflict amongst the
distributors regarding their areas of operation.
 OBSERVATION

• The company’s strength is in its procurement and not the distribution

even they know this, as this is the industry’s main problem. Other
companies fail to replenish demand due to lack in procurement of raw
material.

• Parle has loyal cooperatives that provide products only to them, over
time the relationship of trust has built up with these people that Parle
leverages now.

• Transport channel is another strength as the transporters have grown

with the company overtime the bonding with them enables the
company to give least margins when it comes to the distributors in the
industry, lowering the costs.

• The company believes that there is an ongoing demand in the market

and therefore no promotions are needed to increase the sales, also the
fact this would affect the cost of the product the company doesn’t
undertake many promotion schemes.

• The not being a profit driven organization, is able to provide products

at the least price in the industry, and is able to give least channel
margins as the channel members earn through volumes and not
through high margins.

• The company is enabled to push its new products into the market by
hooking them onto the fast moving products like Parle butter bite ;
they force the channel members to carry the new products as well.
Comments and Suggestion:

• Parle should go in for exclusive outlets in at least all the shopping

malls coming up these days and any location where footfalls are large
in number. The advantages of this channel will be:

i. Full range display

ii.Easier to promote new products
iii.Easy to push impulse purchase products
iv.Brand building will be facilitated

• Pushcarts should be increased in number in order to increase the

market reach this can provide with e very effective channel

• Trade promotion should be formulated for newly launched products

instead of just tagging them onto best sellers.

• The company should start a home delivery where a particular

household will order full range of products required by it over a period
of time. For this the company could provide a deliveryman with cycle
to reach the different houses.

• In order to motivate the channel members it is also very essential for

the company to increase the margins for the hard selling items

• In order to remain sensitive to market demand, it is essential for the

company to place additional salesmen on the field since the brand
as such commands a high demand in the market but fails to match it
with the supply.
 Recommendations

To get benefits of growing biscuit- industry, I have following 3

recommendations to Parle.

Recommendation-1

• Promotion of Parle brand

a. Promote Parle brand through schemes such as “Parle Gramin
Swastha Yojana” (a network of ambulance van visiting rural areas
giving basic medical treatments educating people on nutrition
deficiency problems and promoting Parle nutritious products)

b. Promote Parle brand through T. V. shows such as “Parle Sakhi”

(“Parle - Friend of Women”). The weekly T. V. show will cater to health
issues of women and children and will explain long term benefits of
healthy diet) Results Expected – Improved sales through “Top of mind
recall”.

• Reduced competition for ‘visible shelf space’ in small grocery and retail
stores.

• Brand Loyalty.

• Communicating Parle value of ‘Nutrition Product’.

Recommendation-2

• Study revenue and cost of each of the SKUs (products) of Parle ITC’s
entry into the biscuit industry will pose challenges to the number one
position Parle has held over decades. Before further diversifying into
producing more products to cater to market niche, I recommend Parle
to carry out detail study of each SKU. This is to avoid adding more
complexity to existing production & distribution process with addition
of SKU eventually leading to lowered net income.

Results Expected – The study should help Parle forecast and plan
future launches, stop producing unprofitable products and focus on
emerging / highly demanded products.
 • The study will also help Parle utilize its deep distribution channels
effectively and efficiently as per consumer demand.

Recommendation-3

Advertise products segment wise as follows

a. Nutritious/Glucose biscuits Advertisement by doctors/dieticians to explain

the benefits to heath conscious consumers Advertisement by cricketers
(Cricket is a very popular game in India) to attract youth

b. Cream biscuits To be endorsed by bollywood (film) starts

c. Marie To be advertised as a family tea time snack

Results expected – Increased penetration in rural, southern and eastern
market.

Attracting health & diet conscious people.