Company Analysis Report 2018 - 20

Comparative analysis of FMCG product- Parle-G

Submitted by:
Name of Faculty Guide: Prof. Yogita Rawat Name of the Student: Subha Chakraborty
Designation: Asst. Professor Roll No.: PGDM-182011526
Program: PGDM(Marketing)
Batch :2018-2020

Institute for Technology and Management

Plot No. 25 / 26, Institutional Area,
Sector – 4, Kharghar, Navi Mumbai
 CERTIFICATE FROM THE FACULTY GUIDE

This is to certify that the Project Work titled Comparative analysis of FMCG product-
Parle-G is a bona fide work carried out by Mr. Subha Chakraborty
Roll No. PGDM182011526, a student of PGDM program 2018 – 2020 of the Institute for
Technology & Management, Kharghar, Navi Mumbai under my guidance and direction.

Signature of Guide : __________________________

Name of Guide : Prof. Yogita Rawat

Designation : Assistant Professor

Date: _____________ Place: Kharghar

1
 Contents

1.1 INTRODUCTION OF THE SECTOR................................................................................. 4

1.2 OVERVIEW OF THE SECTOR .......................................................................................... 4
1.3 CONTRIBUTION TO GDP .................................................................................................. 5
1.4 COMPETITION OF THE FMCG SECTOR IN INDIA ...................................................... 5
1.5 FUTURE OF INDIAN FMCG SECTOR .............................................................................. 6
1.6 GOVERNMENT POLICIES AND REGULATIONS .......................................................... 6
1.7 EMERGING PLAYERS BOTH AT NATIONAL AND INTERNATIONAL LEVEL ...... 6
1.8 INDUSTRY TRENDS........................................................................................................... 7
1.9 STRATEGIC ANALYSIS ..................................................................................................... 9
1.10 PRODUCT ANALYSIS ..................................................................................................... 10
1.11 CUSTOMERS .................................................................................................................... 10
1.12 FUTURE ........................................................................................................................... 10
1.13 ABSTRACT ....................................................................................................................... 11
1.14 INTRODUCTION.............................................................................................................. 11
Chapter-2 ....................................................................................................................................... 18
2.1 LITERATURE REVIEW .................................................................................................... 18
2.2 OBJECTIVE OF THE STUDY ........................................................................................... 24
Chapter-3 ....................................................................................................................................... 25
3.1 RESEARCH METHODOLOGY ........................................................................................ 25
3.2 DATA SOURCE .................................................................................................................. 26
REFERENCES .............................................................................................................................. 27

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 Table of Figures

Fig.1 : Revenue in Billion ( U.S Dollars) …………………………………………….5

Fig 2 : Market Share of FMCG (in Crores) …………………………………………7
Fig 3 : Sales Turnover( Billion US Dollars) …………………………………………8
Fig 4 : Net Profit of FMCG (in Crores) ……………………………………………..8
Fig 5: Different FMCG Sectors ……………………………………………………...10

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 Chapter-1

1.1 INTRODUCTION OF THE SECTOR

Fast-moving consumer goods (FMCG) sector is the 4th largest sector in the Indian
economy with Household and Personal Care accounting for 50 per cent of FMCG sales
in India. Growing awareness, easier access and changing lifestyles have been the key
growth drivers for the sector. The urban segment (accounts for a revenue share of
around 55 per cent) is the largest contributor to the overall revenue generated by the
FMCG sector in India However, in the last few years, the FMCG market has grown at
a faster pace in rural India compared with urban India. Semi-urban and rural segments
are growing at a rapid pace and FMCG products account for 50 per cent of total rural
spending.

1.2 OVERVIEW OF THE SECTOR

Rural consumption has increased, led by a combination of increasing incomes and

higher aspiration levels; there is an increased demand for branded products in rural
India. The rural FMCG market in India is expected to grow to US$ 220 billion by 2025
from US$ 23.6 billion in FY18. In FY18, FMCG’s rural segment contributed an
estimated 10 per cent of the total income and it is forecasted to contribute 15-16 per
cent in FY 19. ^ FMCG sector is forecasted to grow at 12-13 per cent between
September–December 2018.

On the other hand, with the share of unorganised market in the FMCG sector falling,
the organised sector growth is expected to rise with increased level of brand
consciousness, also augmented by the growth in modern retail.

Another major factor propelling the demand for food services in India is the growing
youth population, primarily in the country’s urban regions. India has a large base of
young consumers who form the majority of the workforce and, due to time constraints,
barely get time for cooking.

Online portals are expected to play a key role for companies trying to enter the
hinterlands. The Internet has contributed in a big way, facilitating a cheaper and more
convenient means to increase a company’s reach. It is estimated that 40 per cent of all
FMCG consumption in India will be online by 2020. The online FMCG market is
forecasted to reach US$ 45 billion in 2020 from US$ 20 billion in 2017.

It is estimated that India will gain US$ 15 billion a year by implementing the Goods
and Services Tax. GST and demonetisation are expected to drive demand, both in the
rural and urban areas, and economic growth in a structured manner in the long term and
improve performance of companies within the sector.

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1.3 CONTRIBUTION TO GDP

In the year 2017, India’s GDP was to the tune of 2,597,491 million USD of which 574
million USD was the contribution of FMCG sector. This statistic shows the revenue of
a fast-moving consumer goods market (FMCG) in India from 2007 to 2020. In 2015,
India's FMCG market generated revenue of about 47.3 billion U.S. dollars, with
revenue forecast to reach 103.7 billion U. S. dollars in 2020.

Fig.1 : Revenue in Billion ( U.S Dollars) Source : ibef.org

1.4 COMPETITION OF THE FMCG SECTOR IN INDIA

India's huge population has always been a significant factor for the growth of FMCG
sector in the country. Between 1950 and 1980, the consumption of FMCG products
were relatively low due to the low per capita income. The post-liberalization era in India
has witnessed a massive growth in the selling of products in the domestic market. The
Indian market also imported loads of products from overseas markets which made
increased the competition between the organized and the unorganized sector.

The easing of the trade barriers encouraged the MNCs to invest in the Indian market to
cater to the needs of the consumers. The living standards rose in the urban sector due
to high disposable income along with the rise in the purchasing power of the rural
families which increased the sales volume of various manufacturers of the FMCG
products in India. The large-scale companies such as HLL, Godrej Consumer, Marico,
Henkel, Reckitt Benckiser and Colgate have targeted the rural consumers and have also
expanded their retail chain in the mid-sized towns and villages. On the contrary to this,
Nestle has always targeted the market of urban India and focuses largely upon the value
added products for the elite class or upper middle class population.

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1.5 FUTURE OF INDIAN FMCG SECTOR

The consumers today are endowed with a wide range of options to make their pick in
FMCG products. There is a lot of competition in the FMCG sector as a number of
factors are to be considered while selling the products. This precisely denotes that only
the innovators can survive this tough competition. The investors must be very proactive
to the market needs and also build strong and powerful distribution channels.

1.6 GOVERNMENT POLICIES AND REGULATIONS

Yes, the sector is regulated. The respective regulatory body and its functions are: -

SL No. Regulatory Body Name Functions

1. Food Safety and Authority of India Protecting and promoting
(FSSAI) public health through the
regulation of food and safety.
2. The Federation of Indian Chambers of Economic Research and
Commerce and Industry (FICCI) Scientific Research.
3. Telecom Regulatory Authority of Orderly growth of the telecom
India (TRAI) sector while protecting the
interests of both telecom
service providers and
consumers.

1.7 EMERGING PLAYERS BOTH AT NATIONAL AND

INTERNATIONAL LEVEL

The emergent players of this sectors at International Level are three fasts growing
FMCG companies – Brazilian JBS (18% growth rate), AB InBev and Tyson Foods,
the latter two both just missing out on double-digit growth.
Fit & Glow, which is focused on holistic wellness and organic personal care products,
recently crossed Rs 50 crore in revenues and is looking for its next phase of growth,
including expansion in the global markets. And rightly so. It has become one of the
“challenger brands” on Amazon.in and started exporting its products to the US. In fact,
Fit & Glow's WOW is the number one brand in the shampoo category on the e-
commerce site.
Challenger brands are those that are looking to take on incumbent brand leaders in their
space, in Fit & Glow's case FMCG giants like Procter & Gamble, ITC and Unilever,
which dominate the skincare business. Cavin Care, Marico and Emami also have a large
presence in the skincare business. But it's the food segment which makes up nearly 45
percent of the overall FMCG market and the traditional big brands ruling the space are
ITC, Unilever, Dabur, Patanjali and Britannia.

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1.8 INDUSTRY TRENDS

CAGR over the past 5 years

The FMCG sector in India generated revenues worth US$ 49 billion in 2016. Over 2007-
16F, the sector is expected to post CAGR of 11.9 per cent in revenues in 2016-17, revenues
for FMCG sector have reached US$ 49 billion and is expected to grow at 9-9.5 per cent in
FY18. In the long run, with the system becoming more transparent and easily compliable,
demonetisation is expected to benefit organised players in the FMCG industry.
Market share, sales turnover and net profit of top ten companies in the sector at
national level.
Market Share Sales Turnover (Billion Net Profit
(Crores) US Dollars) (Crores)

1. Hindustan Unilever 127144 4 5216

Limited (HUL)
2. Colgate-Palmolive 18329 17.08 685.03
3. ITC Limited 256759 7 11891
4. Nestle 49768 87 395.03
5. Parley Agro 4200 1 2800
6. Britannia Industries 32266.99 0.73 947.89
Limited
7. Marico Limited 13137 61 718.23
8. Procter & Gamble 9555 83 374.59
9. Godrej 49768 4 277.09
10. Amul 80,000 2.15 20730

Market Share (Crores)

10

Amul 80,000
Godrej 49768
9

Procter & Gamble 9555

8

Marico Limited 13137

7

Britannia Industries Limited 32266.99

6

Parley Agro 4200

5

Nestle 49768
4

ITC Limited 256759

3

Colgate-Palmolive 18329
2

Hindustan Unilever Limited (HUL) 127144

1

0 50000 100000 150000 200000 250000 300000

Market Share (Crores)

Fig 2 : Market Share of FMCG (in Crores) Source :equitymaster.com

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 Sales Turnover (Billion US Dollars)

10 Amul 2.15
Godrej 4
9

Procter & Gamble 83

8

Marico Limited 61
7

Britannia Industries Limited 0.73

6

Parley Agro 1
5

Nestle 87
4

ITC Limited 7
3

Colgate-Palmolive 17.08
2

Hindustan Unilever Limited (HUL) 4

1

0 10 20 30 40 50 60 70 80 90 100

Sales Turnover (Billion US Dollars)

Fig 3 : Sales Turnover( Billion US Dollars) Source :equitymaster.com

Net Profit (Crores)

10

Amul
Godrej
9

Procter & Gamble

8

Marico Limited
7

Britannia Industries Limited

6

Parley Agro
5

Nestle
4

ITC Limited
3

Colgate-Palmolive
2

Hindustan Unilever Limited (HUL)

1

0 5000 10000 15000 20000 25000

Net Profit (Crores)

Fig 4 : Net Profit of FMCG (in Crores) Source :equitymaster.com

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1.9 STRATEGIC ANALYSIS

The challenges and opportunities for the sector

The FMCG sector is a monster with market size touching about Rs. 1.7 lakh crore in
India and basic trends has not changed apart from some real innovative products coming
in the picture. Still, smaller stores play the biggest role in the business. 98% of the
market is still dominated by the small stores despite the Big (Bazaars/Baskets) around
promoting with superstars. But while the sales and distribution trends are same,
consumer trends are changing. In US consumers use more than 80 brands in their
household, but in India it is just about 15 brands. This figure will go up to 30 brands in
each household by 2021. So, it will not be wronged in saying that in a country having
a population of more than a billion consumers, we could be one of the 15 remaining
brands. Having talked about the opportunity here, let us point out the single biggest
challenge for any FMCG brand. Sales and Distribution. The sales and distribution
require huge team to grow. Let me put it this way, to make a 500 Cr. a brand needs to
spend north of 100 Cr. in sales and distribution. This is the massive growth capital
required. The time it takes to increase the territory is another thing to be pointed out. It
must go from region to region making-breaking distributors, looking at sales team
attrition and then working on the sales figure month on month. This is the pulling up
the sleeves exercise and cumbersome. Many brands fail at this after developing a
product market fit product. Another issue is key differentiator, yet it can be somehow
avoided by branding the products in a way. Take example of Paper Boat, its unique
packaging and branding got it to the forefront. Products are usually the same.

The strategies that can be followed by this sector:

1. Promotions and offers: FMCG companies are trying to influence consumers with
intelligent deals firms like ITC offers combo deals to the consumers. For example,
in the case of soaps and cosmetics; 4 soap cases are offered at the price of 3, selling
the range of deodorants for men and women at a discounted price

2. Research Online Purchase Online: The internet enables consumers to make their
own research on the kind of products or commodities they want to purchase. 1 in 3
FMCG shoppers goes online 1st and then to the stores. Almost half of the
automobile consumers follow Research Online Purchase Offline (ROPO) method

3. Production Innovation: Indian consumers have become choosy and are less likely
to stay loyal to a brand. Dabur has launched its sugar free variant for Chacareras in
India. As of March 2017, ITC, which ventured in coffee and chocolates segment
under the Fabelle and Sunbean brands is planning to launch another premium range
of items. By doing so, the company is planning to compete with brands like Nestle
and Cadburys

4. Customisation: Product Flanking: Introduction of different combinations of

products at different prices, to cover as many market segments as possible. Emami,
has decided to rework on its overseas strategy by planning manufacturing and
acquisitions in overseas markets. The company plans to re-work on its product
portfolio by getting into new categories with higher buying preference and revamp
its distribution networks

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1.10 PRODUCT ANALYSIS

Fig 5: Different FMCG Sectors Source : Economic Times

1.11 CUSTOMERS

The customers of the FMCG sector includes all the sections of the people as the products
(mentioned above) has a wide range of variety and the usage of the products is diversified
from the basic need products to the niche products. It spreads to the interiors of the rural areas
to the elite areas of the city.

1.12 FUTURE

The prospects of the sector include:

• Untouched rural market, Untapped opportunities, changing life style 122
• Rising income levels and higher disposable income, resulting in increase in
purchasing power of consumers
• Large domestic market with more population of age group between 20 and 30.
• High expenditure on daily used consumer goods.
• India is the largest milk producer in the world, yet the percentage of processed milk
is very low around 15 per cent. The organized liquid milk business is in its early stage
and possesses the potential of long-term growth. Even there is huge investment
opportunities in value-added products like desserts, puddings etc

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1.13 ABSTRACT

Bread and biscuits constitute the largest segment of consumer food in India. Both Biscuits and
Bread are items of mass consumption in our Country. Almost 2 million tons of biscuits are
produced in India each year and consumption is growing at 10-12 per cent annually. Parle-G
or Parle Glucose biscuits are one of the most popular confectionary biscuits in India. For
decades, the product was instantly recognized by its iconic white and yellow wax paper
wrapper with the depiction of a young girl covering the front. The Objective of the case study
is to find out the reasons for the preference of people in Glucose biscuit also to know why
Parle-G is no.1 in glucose biscuit market. Further, it also brings to focus the infrastructure
available to the company which helps it to maintain supply and the awards it has won over the
years. This case study also looks back into the history of this brand and highlights the ideals
on which it was formed. Their strategies in terms of public relations and advertisements which
resulted in its huge market share have also been touched upon. Moreover, the availability of
the product in India and its Exports has also been mentioned. Parle-G is an established company
globally, but it currently faces a huge problem. This is caused due to the increase in prices of
raw materials, resulting in falling profit margins. It is a market leader for the established
product Parle-G. It also has the largest distribution network. Nevertheless, Parle-G has no
staunch brand loyalty. It is a very price sensitive market owing to the Value for Money (VFM).
Parle-G has been strongly associated with offering the Value for Money, a marketplace
perception that had remained unfaltering for more than 60 years. The market share is highest
with Parle-G because of the Value for Money it awards to its consumers. Based on the SWOT
analysis, which has been done in detail, we can deduce the issues and constraints affecting the
product and its Target base.

1.14 INTRODUCTION

Parle Items has been India's biggest maker of bread rolls and candy store for just about 85
years. Producers of the world's biggest moving scone, Parle-G, and a large group of other
extremely prevalent brands, the Parle name symbolizes quality, nourishment and extraordinary
taste. With a compass spreading over even to the remotest towns of India, the organization has
certainly come an exceptionally long route since its beginning. Huge numbers of the Parle
items - bread rolls or candy parlors, are advertise pioneers in their class and have won
recognition at the Monde Choice, since 1971. With a 40% offer of the all out bread showcase
and a 15% offer of the all out confectionary advertise in India, Parle has developed to wind up
a multi-million dollar organization. While to the purchasers it's a guide of confidence and trust,
contenders view Parle for instance of promoting brightness. A portion of our best propensities,
as we state, are likewise our most seasoned. Huge numbers of them go back to the most recent
decade of the nineteenth century. It was in the 1880's that the late Mohanlal Dayal came to
Bombay from his town Pardi, in the locale of Surat, to fill in as a tidying kid at a silk merchant's.
What far that splendid young man came! To begin with, the hard apprenticeship and the
graduation to Ace Shaper, at that point the world class fitting foundation that in the end formed
into a discount business to at last, the new business in confectionaries and bread rolls.
Continuously, the emphasize was on independence. Mohanlal Dayal was not only a dynamic
and shrewd agent. He never yielded to the feeling of impassion that frequently accompanies
the business viewpoint. Parle-G or Parle Glucose is a brand of rolls fabricated by Parle Items
in India. Starting at 2011, it is the biggest moving brand of rolls on the planet as per Nielsen.

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Expanding costs of essential Crude materials like, sugar, wheat, drain, and drain powder. This
prompting increment in assembling cost of the bread rolls.

PARLE-G AND IT’S CHALLENGES

Increasing prices of basic Raw materials like, sugar, wheat, milk, and milk powder. This
leading to increase in manufacturing cost of the biscuits. Parle G is a very price sensitive
product. Small increase in price (by 50 paisa) in past had seen high decline in sales. Even
though the Parle is market leader in the segment, others are also trying to capture the chunk of
market share. Fake brands like Parle G, Parle Jee tried to extract market share. However only
serious competition faced by Parle G is from Britannia Tiger biscuit.
INFRASTRUCTURE
Apart from the original factory in Mumbai, Parle has manufacturing facilities at Neemrana
(Rajasthan), Bangalore and Bahadurgarh (Haryana). It also has several manufacturing units on
contract.

AVAILABILITY
Outside India, Parle-G is available in Europe, UK, USA, Canada, Singapore, etc. In Canada, it
is sold by Zehrs, Food Basics, Loblaws, etc. for only 99 cents for a 418 gram pack. A more
common 80 gram "snack pack" is sold for as low as 15 cents at Indian grocers, and 40 cents at
major retailers. It is also popular across the world and is starting to sell in Western Europe and
USA.

QUALITY
Hygiene is the precursor to every process at Parle. From husking the wheat and melting the
sugar to delivering the final products to supermarkets and store shelves nationwide, care is
taken at every step to ensure the best product of long-lasting freshness. Every batch of biscuits,
confectioneries & snacks are thoroughly checked by expert staff, using the most modern
equipment. This ensures consistent and 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, Haryana and Neemrana,
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 also has 10
manufacturing units for biscuits and 75 manufacturing units for confectioneries on contract.

EXPORTS
The immense popularity of Parle products in India was always a challenge to their production
capacity. Now, using more modern techniques for capacity expansion, they have begun
spreading their wings and are going global. Parle biscuits and confectionaries are fast gaining
acceptance in international markets, such as, Abu Dhabi, Africa, Dubai, South America and Sri
Lanka. Even the more sophisticated markets like USA & Australia, now relish Parle products.
As part of the efforts towards a larger share of the global market, Parle has initiated the process

12
of getting ISO 9000 certification. Many Parle Products have also won Gold, silver and bronze
medals at the Monde Selection.

MARKET
According to a Nielsen report released in 2011, Parle-G is the largest selling biscuit in the
world. It has 70% market share in India in the glucose biscuit category followed by Britannia,
Tiger (17-18%) and ITC's Sunfeast (8-9%). The brand is estimated to be worth over Rs 2,000
crore (Rs 20 billion) and contributes more than 50 per cent of the company's turnover (Parle
Products is an unlisted company and its executives are not comfortable disclosing exact
numbers). Last fiscal, Parle had sales of Rs 3,500 crore (Rs 35 billion). It also is popular across
the world and is starting to sell in Western Europe and USA.

AWARDS
Parle is the winner of 111 Gold and 26 Silver and 4 bronze awards at the Monde Selection
Awards, the global standard for quality in Food category.

LATEST STRATEGY
As part of its marketing initiative, Parle Products has recently adopted a major pricing strategy
whereby a 5 kg ‘Parle-G’ Atta will be available to consumers and, along with ‘ParleG’ biscuit
pack for free at Rs 90. However, competitors, ‘Pillsbury’ Atta are priced at Rs 104, and, ‘Kissan
Annapurna’ at Rs 102, in similar capacity

BISCUITS MANUFACTURED BY PARLE

• Parle G
• Nutricrunch Lite Crackers
• Parle-G Gold
• 20-20 Cashew cookies
• 20-20 butter Jeera cookies
• 20-20 Nice
• Milano
• Magix
• Parle coconut biscuits
• Hide and Seek
• Parle Bakesmith Marie

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• Krackjack
• Monaco
• Fab Range
• Bourbon
• Parle Top Spin
• Happy Happy
• Parle Bakesmith Arovita

HIGH MARKET PENETRATED BISCUITS

PARLE G

Treat yourself to a pack of yummy Parle-G biscuits to experience what has nurtured and
strengthened millions of people for over 70 years. A meal substitute for some and a tasty and
healthy snack for many others.

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MONACO

Life namkeen banaiye!

When life hits a dull patch, just pull out a Parle Monaco to make it exciting. The light, crispy

biscuit sprinkled with salt, is the perfect namkeen twist you can add to your ordinary boring
moments.

HIDE N SEEK

Play a game of hide and seek with your taste buds. Indulge in the mouth-watering delight of
India‘s best moulded chocolate chip biscuits, Hide & Seek. All it takes is one bite, and you are
transported to chocolate Heaven. Packed with a bounty of chocolate chips, once you try Hide
& Seek, you will never want any other biscuit again. A treat for the mouth, and the heart.
khate hi dil aa jaye!

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GOLDEN ARCS

Introducing irresistible Golden Arcs, filled with rich Strawberry, Apple, Orange & Choco
Fillings. They are best described as 'melt-in-your-mouth', soft shelled fruit rolls and crunchy
choco fills which are perfect for an anytime snack.

PARLE TOP

It is the ultimate crispy cracker with the finest taste of butter, especially made to mesmerize
you with its smoothness. The unspoken dream or the wildest imagination gets real, with the
smooth texture of butter. So take a bite and escape into your own world where it will be just
about you and everything else fades into oblivion. Let no one come between you and "Buttery
Taste & Buttery Dreams".

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PARLE ACTIFIT DIGESTIVE MARIE

Now say 'goodbye' or at least 'see-you-later‘ to the couch, the video games, the computer
and the TV. And enter the Actifit world where you say 'Hi. Hello, Good morning' to the gym,
the roads, the pool. And to help you stay this active, you need Actifit Digestive Marie. It's a
biscuit that's packed with 5x more fibre (than other Marie biscuits) and 67% less fat.

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 Chapter-2

2.1 LITERATURE REVIEW

According to (Gomes, 2010)in Research Proposal for Parle-G, we can find comparative
study of different biscuits and why Parle-G being emergent player in customer satisfaction
whenever Glucose biscuit is considered. The significance of the research was why Parle-G was
preferred over other glucose biscuits in India. The study is intended for people seeking an
option of Glucose biscuits. The data was provided from primary sources and the data provided
insight to the likings of the customers. The data was collected reviewing the demographic
dimensions and it was Questioner based where the questions were closed ended. The study
was easier owing to definite answers to the questions.
According to (Raman, 2010), in Case study of an indigenous brand -Parle-G , focuses on
customer satisfaction and how people had enacted in making Parle-G as one of the biggest
selling products over the years. The price mix, competitive analysis portrays a clear picture of
Goodwill of Parle as a brand and Parle-G as its product. 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 Rs.2,Rs.5, Rs. 10, Rs. 20 and Rs.40 packets. Profit margin for
distributors is 4% and for retailers is 10-12%. Parle-G maintained its price of Rs.4.00 for the
last 25 years& has seen the variation in its sales due to increase in price by mere 50p. An in-
depth understanding of the Indian consumer psyche has helped Parle develop a marketing
philosophy that reflects the needs of the Indian masses. With products created bearing in mind
both health and taste, Parle products equally appeal to fun loving kids & youth. Even today,
the great tradition of taste and nutrition is consistent in every pack on the store shelves. The
value-for-money positioning allows people from all classes and age groups to enjoy Parle
products to the fullest. "We want to cater to the masses and have consciously tried not to
increase the price. Parle-G is available for Rs 50 a kg. There are very few food items that are
available for Rs 50-60 a kg," says Pravin Kulkarni, general manager (marketing), Parle
Products. Parle is, of course, not doing it for charity. Soaring input prices meant it opted for
reducing the weight of the biscuit than increasing the price -- first from 100 gm. to 92.5 gm. in
January 2008, and then to 88 gm. in January 2012 - in line with other biscuit-makers and FMCG
players. Regular customers would have noticed the number of biscuits in a pack come down
from 16 to 15 even as each biscuit became lighter, but they seemed to understand the cost
pressures on the firm. The gamble paid off: Parle was able to sustain its volumes. Strict cost
control at every point in its supply chain also helped -- Parle entered into forward contracts
with suppliers, outsourced production, increased the number of manufacturing locations to 60
and consolidated buying.

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According to (Nielsen, 2011), printed in Economic Times , India has been world’s largest
manufacturer of biscuits followed by US and Mexico. The world’s largest selling biscuit has
been Parle-G , the packets costing 4 & 5 has been the biggest market taker over the years.
With universal acceptance, affordable packs and wide distribution, the category has been
attracting players ranging from cola and snacks maker PepsiCo, to cooking oils firm Marico,
to milk foods drinks maker GlaxoSmithKline.
Parle-G, the glucose biscuit brand from the country's largest biscuit maker Parle Products, has
consolidated its position as the world's largest selling biscuit brand, says a new report by market
researcher Nielsen. The study, for last year, says Parle-G has topped brands like Kraft's Oreo,
Wal-Mart's private labels and Mexico's Gamesa in volume sales to lead the Rs 11,295-crore
Indian biscuits category. The Nielsen study adds India is the world's leading market for biscuits,
ahead of the US, Mexico, China, Argentina, France, Italy, Germany, Turkey and Spain. While
India showed a volume market share of 22%, the second slot was occupied by the US at 13%.
The top three countries -- India, US and Mexico -- contribute over 40% of the total biscuits 10
largest markets for biscuits in volumes sales. Going by the data for the year 2009-10, the
volume sales of Parle-G is bigger than the fourth largest biscuit consuming country - China.
Industry analysts say the Rs 5,000-crore Parle's focus on the volumes segment and competitive
pricing backed by strong distribution, especially in rural markets has led the rise. Of the overall
40 brands across biscuits, chips and confectionery that Parle Products makes, Parle-G
contributes 50% to the firm's top line, Parle Products group product manager Mayank Shah
said. The brand is exported to SAARC countries, the US, Europe and parts of Africa. With
universal acceptance, affordable packs and wide distribution, the category has been attracting
players ranging from cola and snacks maker PepsiCo, to cooking oils firm Marico, to milk
foods drinks maker GlaxoSmithKline. The category has been a traditional stronghold of Parle
and Britannia, followed by ITC, Cremica and Priya gold. UK's United Biscuits launched
McVities .

(Shephali, 2013) Parle- G has a long history of becoming just a Glucose biscuit , of the British
era to being one of the largest selling biscuit across the world. The story rotates how the
positioning of the Company changed from years and the story of the Girl on the wrapper. Even
there were rumours of the Girl characterised on the wrapper of different identity , the makers
clarified on it sooner.

(Sagar, 2015)It says that the 85-year old company, the market leader in the largest category of
biscuits and owner of Parle G, India's biggest food brand, had a 29% share in the biscuit
category during the year with sales of over `5,000 crore. Parle products topped the charts among
food companies in India during 2014-15, with sales exceeding Rs8,300 crore, according to a
recent Nielsen report sourced from industry executives. The 85-year old company, the market
leader in the largest category of biscuits and owner of Parle G, India's biggest food brand, had
a 29% share in the biscuits category during the year with sales of over `5,000 crore. Britannia,
India's second-largest biscuit maker, and chocolate giant Mondelez shared the second spot with
revenues of ` 6,800 crore. In the non-food segment, HUL led the pack with sales of Rs 25,400
crore, nearly thrice of its nearest rival, P&G, which clocked sales of `8,600 crore. RSPL, the
maker of Ghari detergent.

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(Unknown, 2017) Almost 80 years after it was presented in India, Parle-G keeps on
commanding the nation's roll advertise even as the business pushes toward increasingly
premium items. Parle-G, with its famous yellow striped pack demonstrating the 'Parle young
lady', keeps on holding 20% offer of the Rs25,000 crore bread advertise by esteem, Mayank
Shah, class head at Parle Items Pvt. Ltd said in an interview.It is presently worth Rs5,000 crore,
as per statistical surveying firm Nielsen, in a market commanded by Britannia Enterprises Ltd
that to a great extent moves premium cream rolls like Treat and treats like Great Day.

The key to Parle G's prosperity? Adhering to its situation as a glucose roll implied for the
majority. In the decades since Parle-G's dispatch in 1939, Parle Items has kept the brand's costs
at the section level, presented just a single premium variety, and even kept the vintage Parle
young lady fastened on bundles.

Parle-G with chai, or with drain for children, or with an espresso," he stated, looking at its
striking nature in an Indian home to that of atta, dal and different staples. In this way, Parle-G
keeps on standing its ground in the scone showcase commanded by Britannia and the higher-
end rolls offered by ITC Ltd's. Sunfeast and Australian premium participant Unibic. Since
1990, Parle-G has figured out how to retain.75-80% of the glucose bread rolls showcase, while
premium scones are worth just Rs5,000 crore in the absolute scones advertise, as per leaders
of a few best scone creators in India.

Britannia has just acquainted a few updates with its Parle-G rival, Tiger rolls. There are 7
variations to Tiger glucose bread rolls contrasted with Parle's single variation Parle Gold-
alongside an exceptional children version marked as Chota Bheem, and most are cream scones
a class sold at a noteworthy premium to glucose ones. The organization had acquainted the
Parle young lady at first with request to youngsters essential purchasers of bread rolls even
today-even as grown-ups now swing to specific scones, for example, stomach related treats,
Shah said. This is the reason Parle-G is reliably positioned among the most persisting brands
in India. In a yearly report titled Brand

Impression Report 2016, statistical surveying firm IMRB Kantar has positioned Parle as the
most picked quick moving buyer merchandise or FMCG mark since 2014, in front of adversary
Britannia, last positioned number 4.The significance of the brand reflects in Parle Items'
financials. Parle-G remains its leader and number 1 mark, Shah stated, despite the fact that a
lot of incomes has tumbled from 66% in its prime to almost 33% today. Be that as it may, this
mirrors a long tail of new classifications the organization is presently profiting from-chocolates
and confectionaries, chips and exquisite bites, and even bundled dry staples like heartbeats that
the organization propelled around two months prior. In spite of illustration a lump of income
from the mass market mark, Parle Items' best line and edges have developed relentlessly in the
last few fiscals, information from organization filings appears. According to the most recent
filings, Parle Items earned Rs9,331.42 crore in income from tasks in FY16, up 2.57% year-on-
year while its benefit after expense was about Rs500 crore, up 15.17% year-on-year. The
organization declined to share the most recent financials.

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In 2013, statistical surveying firm Nielsen confirmed Parle-G as the world's biggest bread mark
with Rs5,000 crore deals, in front of global goliaths, for example, Mondelez Universal Inc.
(that moves Oreo in India) and Joined Rolls, among the best brands in the UK, which is one of
the world's biggest markets for scones.

(Raman, 2013)
When Parle Products launched Parle-G in 1939 during the British rule, the firm considered it a
responsibility to sell affordable biscuits to Indians. Today, the same value plank has helped the
glucose biscuit brand become the first Indian FMCG brand to cross the Rs 5,000-crore mark in
retail sales in a year.
In 2012, Parle Products sold Rs 5,010 crore worth of its flagship glucose biscuit brand at retail
price, besting the entire domestic sales of Dabur or Godrej products and selling three times
more than Maggi noodles. This meant sales of more than 100 crore packets across sizes every
month, or 14,600 crore biscuits in the entire year, that is, 121 biscuits each for the 1.2 billion
Indians.
Mayank Shah, group product manager at Parle Products, said the company's realisation was
around 60-65 per cent of the retail sale.
While Parle-G, with less than $1 billion in annual sales, is nowhere near the world's top-selling
brands such as Coca-Cola and Gillette, it has a healthy lead over its closest Indian rivals such
as Hindustan Unilever's Wheel and Rohit Surfactants' Ghari Detergent.
VALUE PLANK PAYS OFF
Started by Mohanlal Dayal Chauhan way back in 1929 at Vile-Parle, a Mumbai suburb, Parle
Products first launched an orange candy and then other confectionaries before entering the
biscuits segment 10 years later. "Launching Parle-G in 1939 was not just a business decision
but also a responsibility to sell affordable biscuits to Indians (during British rule) at a time the
market was flooded with costly imports," said Ajay Chauhan, executive director at the Rs
8,000-crore Parle Products and a member of the founder's fourth generation clan.
"Even after 70 years, we haven't digressed from that philosophy and the pricing has helped the
brand become a staple today," Chauhan added. This affordability proposition is exactly what
has been paying off for Parle-G despite rivals such as ITC and Britannia entering the space.
There was a time when Parle-G's dominance was threatened by rival brands, especially
Britannia's Tiger, which targeted kids. But when Parle-G sponsored children's television show
Shaktimaan on Doordarshan, it literally rescued the brand. The company also managed to keep
prices unchanged for over a decade - between 1996 and 2006 - even as the prices of raw
materials such as wheat, sugar and milk escalated up to 150 per cent.
Parle-G increased its share from 67 per cent in 2002 to 79 per cent in 2012 while the share of
Britannia's Tiger fell to 9 per cent from 26 per cent during the same period. ITC's Sunfeast
brand too had over 9 per cent share in the glucose segment last year.
Analysts said that Parle's relentless focus on top line has driven its rivals to shift strategy from
glucose to other sub-segments such as cream and cookies.
"Historical analysis of the biscuits category reinforces that even a single margin disruptive
player can impact the margin profile of the entire category," Anand Mour of ICICI Securities
said in a recent note. Between FY06 and FY11, Parle Biscuits' EBITDA margin declined by

21
720 bps to 2.9 per cent in FY11 and Britannia's EBITDA margin declined by 550 bps to 5.5
per cent. "This is despite Parle seeing the highest revenue CAGR of 32 per cent during the
period, the highest among FMCG companies," Mour said. Even rivals agree that it's tough to
match Parle-G in pricing.
"Parle-G has sheer economies of scale which we can't match without impacting our margins,"
a senior official at ITC Foods said. "At that price point, it is difficult to compete in the category
and we would rather focus and invest on our strength and earn profit on products such as cream
biscuits," added the official, who didn't wish to be identified. Parle Products said the value-for-
money plank has been crucial in growing Parle-G at over 15 per cent compounded annual
growth rate in the past five years. Parle's 10 own manufacturing units and around 75 contract
manufacturing plants across the country helped it beat rivals in distribution efficiency and cost.
While rivals have signed on celebrities, Parle-G has managed to grow its sales with just a
simple white-and-yellow striped wrapper with a picture of a baby on it.
KAL KE GENIUS, REALLY?
Yet, there are question marks over Parle-G's potential to keep its growth rate and to become
the country's first Rs 10,000-crore FMCG brand mainly because of the increasing popularity
of cookies and cream biscuits, which are available at similar price points as glucose biscuits.
Another concern is the ability of the 73-year-old Parle-G brand to stay relevant to the next
generation of customers. But the company is confident about the brand's future.
"We saw consumers upgrade to the cookie and cream segment as companies, including Parle,
introduced lower priced products in the past three years, which impacted the glucose category
initially. However, Parle-G grew 10 per cent last year despite such a high base," Parle's Shah
said. Experts agree. Alpana Parida, president at brand firm DY Works, said that Parle-G is to
India what Coca-Cola is to America, "Many of us have grown up with Parle-G and tea at
various points of time in our lives. It has an emotional connect to Indians. "She said that Parle-
G might not grow as fast as the overall biscuit market as cross-category competition increases.
"However, it will still be the default biscuit in every house and if the company leverages the
brand into other options such as hi-fibre biscuits or other value-added segments, the penetration
of the brand will go up," Parida added.
Share of Parle-G in the firm's overall sales has declined to about 50 per cent now from more
than 70 per cent a decade ago.
To stay connected to the new generation, Parle-G last month launched a new advertisement
campaign after 10 years. Titled 'Kal Ke Genius', the campaign created by Ogilvy was received
well and made waves in the social media platform.
Parle also last year launched Parle-G Gold, a premium glucose biscuit that is heavier and has a
richer formulation than Parle-G. The biscuit market in India is estimated at Rs 21,000 crore
with the glucose segment accounting for 30 per cent of it.

(Pednekar, 2011)Customer satisfaction is important for the company to build the sales and
value of the brand. The objectives and the purpose of the study were explained to the
respondents. Both primary and secondary data were collected to realize the objectives of the
study. Due to limitation of time, only 100 respondents were selected from Mhapsa area on the
basis of convenient sampling. In order to make an in-depth study, secondary data has been
collected from journals ,publications, news, internet, and magazines. Necessary statistical tools

22
have been used and the collected data were then consolidated, tabulated and analysed. The
results and discussions have been presented under various head. The products covered under
the study are Toothpaste, Soap, Shampoo ,Detergents, Utensil cleaner, Face cream, Milk, Soft
drink, Coffee, Edible Oil, Noodle, Spices, Talcum powder, Hair oil, Deo’s, Tea Powder,
Biscuits, Pickles, Chips, Chocolates, Ice cream and Ketchup. The study concludes that most of
the products are purchased on the basis of quality, price, brand status, identity, services,
packaging, credibility and self esteem. They get attracted to the many variables related to the
utility and the price value. This in the case of Parle-G has attracted Indians to buy it at a
relatively cheaper price , and the ideology of this study is based on the customer perception
and Attribution theory.

(Anandkumar, 2009) The accomplishment of a brand depends on the degree to which it

separates itself from the heap of contenders. As brands try to end up, mark identity is seen as a
practical illustration for understanding shoppers' view of brands and for creating an
extraordinary personality in their brains. Estimation and the executives of brand identity winds
up noteworthy in such manner. A large portion of the current brand identity scales are either
intended to quantify the brand identity develop when all is said in done or to gauge specific
classes of brands. There is an absence of a scale which estimates the identity of item marks all
things considered. The exploration endeavours to fill this lacuna by making another item mark
identity scale joining different headways in the field of brand identity estimation. This
examination utilizes a blended strategy approach and the vital stages incorporate build
definition, thing age, measure filtration, appraisal of unwavering quality and legitimacy, and
advancement of a short form of the scale. Discoveries of this exploration reconfirm the
purchasers' propensity to ascribe identity attributes to brands. It likewise recognizes seven
components of item mark identity with 26 things.

(Bhushan, 2012) Glucose bread rolls - for long the most prevalent scone section in India-has
out of the blue fallen behind the two treats and cream scones as organizations, for example,
Parle, ITC and Britannia obscured value focuses and others like Cadbury and GSK Shoppers
entered the top-notch fragment. Amid April-September, glucose classification had 19.3% offer
in the scone showcase in esteem deals while treats had 26.2% offer and cream 22.2%, industry
authorities said citing Nielsen information. Only two years sooner, in the primary portion of
2010-11, glucose represented 26.5% of the market with treats and cream following with 23.8%
and 16.6% offer, individually. (see realistic beneath) "While Parle G glucose still remains our
biggest image, we presented a few creams and treat brands at comparative value focuses over
most recent two years prior
Hence, these companies have been defocusing on core glucose segment," Nitin Mathur,
consumer research analyst at Espirito Santo Securities, said.
Companies agree. "We are focusing more on the cookies and cream segments following
consumer demand trends. The segment also gives better realisations and margins," Chittranjan
Dar, chief executive of ITC Foods, said. Under its Sunfeast umbrella, ITC sells a range of
premium sub-brands such as Dream Cream and Dark Fantasy. Newer players such as Cadbury,
which has brought Kraft Food's Oreo to the country, and GSK Consumers, which has extended
its Horlicks brand into cookies, too have added to the growth of premium category. The UK's
United Biscuits is another new player, with significant presence in the high-value health
segment. Also, increasing competition from Parle, which controls a third of the glucose market,
is forcing many small player store-thinks their glucose portfolio strategy. Chandigarh-based

23
Cremica Group, one of the oldest makers of biscuits in the country, for example, plans to exit
the segment next year. "Glucose is a diminishing segment because consumers are looking for
value and health benefits, which other segments like cookies and health-based products offer.
Plus, the price difference between glucose and value-added products isn't much," Anup Bector,
MD of Cremica's owner Mrs Bector Food Specialities, said. For the Delhi-based Surya Foods
& Agro, which markets its biscuits under the PriyaGold brand, the contribution of glucose has
slipped to just 1%. "The category is evolving. If consumers have the option of buying value-
added cookies at almost the same price as glucose biscuits at least in the sub- 10 segments, they
will naturally prefer the latter," Surya Foods &Agro MD BP Agarwal said. Does all this mean
glucose as a segment will lose its relevance in the coming years? No. Top companies are still
upbeat on the segment. "While last year we saw some de-growth in the glucose segment
because of aggressive launches of cookie brands, glucose grew 6% this year despite high base.
So the opportunity is still there," Rao of Parle said. Its glucose biscuit Parle G accounts for
60% of the firm's revenues and it launched premium Parle G Gold in May this year. Britannia's
glucose brand Tiger is the firm's largest brand, accounting for 15-20% of its revenues while
Sunfeast glucose biscuits account for over 20% of ITC Foods' revenues, industry insiders said.
While premium segments help companies earn higher margins, glucose products help gain a
clout in raw-material buying and sourcing as the segment generates economies of scale.

2.2 OBJECTIVE OF THE STUDY

Primary Objectives :-
1. To understand the comparative analysis of Parle-G with other biscuit manufacturing
brands and their demand analysis
2. To find out the marketing strategy used by Parle and Parle -Agro.

Other Objectives :-
1. To find out the competitive activity and merchandising through retailers of Parle-G
biscuits.
2. To find out the consumer preference
3. To find out the satisfaction level towards service provide by Parle-G
4. To find out the major competitors of Parle-G

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 Chapter-3

3.1 RESEARCH METHODOLOGY

Research methodology is a way to systematically solve the research problem, as to how

research is done scientifically. It consists of the different methods that generally adopted by
researcher to study his research problem along with logic behind them. It is necessary for the
researcher to develop certain tests.
Marketing research specifies the information required to address these issues; designs the
method for collection information, manages and implements the data collection process;
analyse the results and communicate the findings and their implication.

RESEARCH DESIGN
“Research design is the plan, structure and strategy of investigation conceived so as to
obtain answer to research question and to control variance.” - BY Kerlinger
After choosing the subject, company and the area to conduct the research, it was decided
by me to establish the theme or the important factor upon which the entire project is to
base.
At the outset, the objectives of the project were identified. Thereupon, the conclusive
research was undertaken upon consideration, the Research design was chosen by me as per
the suitability of the project’s requirements. This method was warranted as it was decided
by me to embark upon a survey, and the analysis & interpretation of the findings of the
surveys can only be done properly only if I opt for the Research design.

RESEARCH PROBLEM
• Seek the general perception of consumer towards Parle products
• To know how consumer takes Parle as a brand
• Impact of other companies effecting sales of Parle biscuits

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3.2 DATA SOURCE

The sources of data collection methods are as follows:

Primary Data
• The primary data is that in which we collect data for the first time from the
market and used first time in the research. We also say that the information is
first time in the research decision.
• To collect the primary data a questionnaire was prepared & was floated among
several people. Structured, non-disguise questionnaire was prepared.

Secondary Data
• Secondary data are those data which are already collected by someone for some
purpose and are available for the present study; secondary data are already
collected by the company’s records and other library’s books.
• Secondary data are collected through different Magazines, Newspapers,
Websites, Books, e-Journals.
Here in this research researcher have included only Secondary data. Researcher will make a
questionnaire with Likert’s scale where respondents (100 sample size is chosen) will answer
questions related to objectives and will analyse the data using SPSS. We will analyse on Co-
relation coefficient and Chi-Square test.

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1. www.warc.com
2. www.proquest.com
3. Philip Kotler and Kevin lane Keller; (12 editions 2006); Marketing Management;
Pearson Education, Inc. and Dorling Kindersley Publishing Inc.
4. S. A. Chunawalla; (2nd revised edition 2005); “Commentary on Consumer Behaviour”
Himalaya Publishing House, Bombay.
5. S. A. Chunawalla; S. A. Chunawalla; (reprint edition 2002); “Advertising, Sales and
Promotion Management” Himalaya Publishing House, Bombay.
6. www.journalindia.com
7. C.N Sontakki; (I Edition, 1992); Marketing Management, Kalyani Publishers Noida.
8. ‘’Kegees Journal of Social Science ‘published By Dr. M.E.Kuriakose, Kuriakose
Gregorios. College, Pampady, Kottayam, Kerala, India, July 1. 2012. Vol 4. No. 2
9. http://www.scribd.com/doc/34139759/Customer-Satisfaction-of-Mother-Dairy-New
722 Journal of Commerce and Management Thought 6 - 4
10. http:www.mandmgloble.com/community/blog/12-4-27/TheFMCG-landscape-
aninfographic.
aspx contents article/8-fast moving consumer goods
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goods

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