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Name : Arhat Hiteshkumar Shah

Roll No. 207780592016

Today, in this analysis of Product Life Cycle , we are


considering Parle G.

Parle G is a name which is identified by everyone including


the rich and poor , from a child to till the aged man.

 Introductory/Development Stage:-

 Parle-G was introduced in the year 1939 even before


independence when the market was dominated by
famous international brands that were imported freely
and no Indian brands.
 Parle-G followed the price skimming strategy, thus
keeping the price of the product low and thus gained
larger market share and lots of attention of the masses.
 In the introductory stage the paper media was mainly
used for advertising but the distribution channel was not
that strong as the company’s manufacturing facility was
located in Vile-Parle, Mumbai so it was not able to cover
larger geographical area but Parle-G performed well in
the area covered by it and attracted masses.

 Growth Stage:-
 Parle-G’s growth stage continued from 1949 to 1997.

 By the year 1949, Parle Gluco biscuits were available not

just in Mumbai but also across the state.


 It was also sold in parts of North India. By the early 50s,
over 150 tonnes of biscuits were 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
Gluco 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 Gluco Biscuits to
Parle-G.
 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. In this stage also the price of the Parle-
G biscuits were kept low following the sell brands not
price motto. The company however used differentiated
pricing strategy as per the geography as the freight cost
for reaching remote areas was high.
 The company did not face much of the competition and
challenges in this stage.

 Maturity Stage:-
 The maturity stage for Parle-G started in the year 1997

and continued till 2006.


 In this period Parle-G faced stiff competition due to the

entry of 3 more glucose biscuits brands, however, the


company was not much affected by the entry of the
other brands due to the customer confidence and
loyality to the brand and also thru its vast advertising
regime.
 Through out its maturity phase Parle-G wider reach

through different medium-education, hospital, army,


railway & bus, donations, sports, NGOs. Its brand value
compelled suppliers to sell Parle-G at low commission.
 Decline Stage:-
 In this stage the sales begin to decline as the maket

became saturated, the product became technologically


obsolete. The  declining production volume and
eventually no more profits can be made.
 The decline stage of Parle-G started in 2006 and

continues till date. The reason of the decline of the so


preferred brand is the .50 paise price hike by the firm.
Parle-G was sold at Rs.4 for 100gms. and Rs. 2 for 50
gms for almost 12 years. But in the year 2004 Parle-G
increased its price to Rs. 4.50 for 100gms. and Rs. 2.50
for 50 gms packs. This didn’t affect the company initially
but slowly the company started loosing its shares and
the actual decline started in the year 2006 when the
company’s market share dropped from 42.2 (2005) to
38.4 (2006) %. By this time Parle hold 52% share in the
global market but in Indian market in terms of value,
Britannia leads the market with 37% share, followed by
Parle’s 31.3 % and ITC’s 6.3 %.

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