Business Value of Extranet

As business continue to use open Internet technologies (extranets) to improve communication

with customers and partners, they can gain many competitive advantages along the way – in
product development, cost savings, marketing, distribution and leveraging their partnerships.

Extranets are network links that use Internet technologies to interconnect the intranet of a
business with the intranets of its customers, suppliers or other business partners.

Companies can establish direct private network links between themselves, or create private
secure Internet links between them called virtual private network.

Or company can use the unsecured Internet as the extranet link between its extranet and
consumers and others, but rely on encryption of sensitive data and its own fire wall system to
provide adequate security.

Thus extranets enable customer, suppliers, consultants, subcontractors, business prospects,

and others to access selected intranets websites and other company database.

The business value of extranets is derived from several factors.

First, the Web browser technology of extranets makes customer and supplier access of intranet
resources a lot easier and faster than previous business methods.

Second, extranets enable a company to offer new kinds of interactive Web-enabled services to
their business partners. Thus extranets are another way that a business can build and
strengthen strategic relationship with its customers and suppliers.

Also, extranets can enable and improve collaboration by a business with its costumers and
other business partners.

Extranet facilitate an online, interactive product development, marketing, and customer focused
process that can bring better designed products to market faster.
The Role of Extranets – The primary role of extranets is to link the intranet resources of a
company to the intranets of its customers, suppliers, and other business partners .Extranets can
also provide access to operational company databases and legacy systems to business
partners. Thus, extranets provide significant business value by facilitating and strengthening the
business relationships of a company with customers and suppliers, improving collaboration with
its business partners, and enabling the development of new kinds of Web-based service for its
customers, suppliers, and others.

THE ROLE OF EXTRANETS

Extranets are network links that use Internet technologies to interconnect the Intranet of a
business with the Intranets of its customers, suppliers, or other business partners.Companies
can:
•Establish direct private network links between themselves, or create private secure Internet
links between them called virtual private networks.
•Use the unsecured Internet as the extranet link between its Intranet and consumers and
others, but rely on encryption of sensitive data and its own firewall systems to provide adequate
security.
Business Value of Extranets:
The business value of extranets is derived from several factors:
•The web browser technology of extranets makes customer and supplier access of intranet
resources a lot easier and faster than previous business methods
•Extranets enable a company to offer new kinds of interactive Web-enabled services to their
business partners.
Thus, extranets are another way that a business can build and strengthen strategic relationships
with its customers and suppliers.
•Extranets enable and improve collaboration by a business with its customers and other
business partners.
•Extranets facilitate an online, interactive product development, marketing, and customer-
focused process that can bring better designed products to market faster
PARLE G

Status: Has a market share of 60% in the glucose biscuits category, worth about Rs2,000 crore
Brand story: In the hit Bollywood movie Welcome, actor Nana Patekar, in a passing reference
to Parle-G, notes that even biscuits command respect and have to be addressed with a ji (a
term of respect in Hindi). His remark, while made in jest, is not far off the mark.

It is a heritage brand. We sell over 25 crore packets every month. That should reflect the stature
of the brand,” says Praveen Kulkarni, marketing head at Parle Products Pvt. Ltd.

Parle’s mantra has always been about repositioning the brand without tweaking the look and
feel of the product. “The brand is clearly an Indian brand and it straddles all economic strata.
The fact that it is a staple for everyone in the house keeps it going,” says Nirvik Singh, chairman
and president, Grey Global Group, South and South-East Asia, the agency that handles the
Parle-G account.

There was a time when Parle-G’s dominance was threatened by rival brands, especially the
Tiger brand from Britannia. “We found out that Tiger was getting stronger in the kids segment,
and we decided to change our positioning,” says Kulkarni. Later, when the company sponsored
the television show Shaktimaan on Doordarshan, it literally rescued Parle-G.

The brand also had some innovative commercials involving young children with a new
punchline, G means Genius, which was an instant hit.While rivals have signed on celebrities,
Parle-G has managed to retain its leadership position with just a simple white-and-yellow striped
wrapper with a picture of a baby on it. “We don’t need celebrities as the brand equity is so
strong,” says Kulkarni.

The biggest concern is that the brand shouldn’t become outdated as it is a historic brand. The
brand has managed to retain its leadership position because it has evolved its campaign with
every consumption trend,” says Singh.

The last campaign, Hindustan ki Takat, (the strength of India) is a huge position which no other
brand can take so effortlessly.”

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 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 first ever chocolate-chip
biscuits.

All Parle products are manufactured under most hygienic conditions. Greatcare is

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

stage of the manufacturing process.

Parle Products has 4 manufacturing units for biscuits and confectionaries atMumbai,

Haryana, Rajasthan and Karnataka. It also has 14 manufacturing unitsfor biscuits & 5

manufacturing 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 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, makesParle-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 keep the 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 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 anicon. 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.

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 lakh responses and of

that, over 300 dreams were fulfilled.

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 cricket coaching 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

 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.

HISTORY

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

Parle 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.

Dispute

pronouncing judgement in a legal battle between two groups of the decades-old Parle company,
the Bombay High Court has ruled that ‘Parle’ is a family name and that both groups have equal
right to use the trademark brand name.

The HC, however, ruled that products manufactured by Parle Agro must clearly specify that they
are produced by the Jayantilal Group that has no relationship with Parle Products which is run
by Kantilal and Pitambar. All three are sons of Mohanlal Dayal Chauhan, who set up the initial
business in 1929 under the name of Parle Products Manufacturing Company.

The dispute arose in 2007 when Parle Agro expanded and diversified into the confectionery
business. It manufactured toffees and marketed them with the words ‘Parle’ or ‘Parle Confi’.

The objection was raised by Parle Products which said that ‘Parle’ was a registered trademark
to market biscuits and confectioneries manufactured by them.

Agreeing with Parle Agro’s arguments, that the term ‘Parle’ is basically a family name, the court
has now directed the company to market their confectionery products under the label of
“Manufactured by Parle Agro Pvt. Ltd”, followed by the words “Jayantilal Group” in a little larger
font and “having no relationship whatsoever with Parle Products Private Limited”.

The judgment further says that there was a division of labour between the brothers: Kantilal and
Pitambar who looked after the business of beverages. Hence, Parle Products was looked after
essentially by Kantilal and Pitamber, while Parle Bottling Company Limited was looked after by
Jayantilal.

Subsequently, Jayantilal and his family ‘exited’ from Parle Products and Kantilal and Pitamber
and their families ‘exited’ from Parle Bottling, but both firms continued to use the word ‘Parle’ as
a part of their corporate name as well as trademark on the products manufactured and
marketed by them.

While granting conditional permission to Parle Agro to go ahead with the ‘family name’, the court
did not fully agreed to Parle Product’s case.

“There is no agreement between the parties, by which either of the groups is restrained from
carrying on business of the other groups for any period of time or within any place upon the
brothers ‘exiting’ for any of the businesses of the family,” the court observed.
There is no agreement between the parties, by which either of the groups is restrained
from carrying on business of the other groups for any period of time or within any place
upon the brothers ‘exiting’ for any of the businesses of the family - High Court