A MINOR PROJECT REPORT

ON
A STUDY ON MARKETING STRATEGIES OF PARLE

SUBMITTED IN PARTIAL FULFILMENT OF REQUIREMENT OF

BACHELOR OF BUSINESS ADMINISTRATIVE

BBA-II (EVENING)
BATCH 2021-2024
SUBMITTEDTO: SUBMITTED BY:
MS. REKHA PRASAD ABHIJEET SINGH

DESIGNATION ENROLLMENT NO
ASSISTANT PROFESSOR 03324501721

JAGANNATH INERNATIONAL MANAGEMENT SCHOOL, KALKAJI

1
 ACKNOWLEDGEMENT

Any accomplishment requires the effort of many people and this work is no
different. Racing against time and fast approaching deadlines, the fact that I was
able to complete this project on time would not have been possible without the
help and support of many people. I thank all of them whose patience and
support were very instrumental.

I also thank them for making me learn the ethics and culture of corporate world.
The kind of value addition that I have done to my existing knowledge base is
exceptional and I will cherish all these moments throughout my life.

It gives me immense pleasure in mention in name of my project guide Ms.

Rekha Prasad who’s helping hand led to the completion of my project.

I would also like to thank my family and friends for providing me with monetary
as well as non-monetary support, as and when required. Their trust patience is
now coming out in form of this.

Last but not the least; I would like to thank all of them who directly or indirectly
helped me in completing this project that will go a long way in my career, the
project is really knowledgeable and worth cherishing.

2
 STUDENT UNDERTAKING

I, ABHIJEET SINGH, a student of commerce from JIMS, Kalkaji hereby declare

that I have completed MINOR PROJECT REPORT on “A Study on marketing
strategies of Parle “as a part of the course requirement.

I further declare that the information presented in this project is true

and original to the best of my knowledge.

ABHIJEET SINGH

3
 CERTIFICATE

This is to certify that the study conducted by Abhijeet Singh entitled: “A study on
market strategies of Parle” being submitted in the partial fulfilment of BBA 2021-
2024, GURU GOBIND SINGH INDRAPRASTHA UNIVERSITY, is
faithfulrecordoftheBonresearchworkcarriedoutbyhimundermysupervision and
guidance. This minor project report is his original work and has not been submitted
to this or any other university/institution for the award of any other degree or
diploma.

4
 CONTENTS

Particulars Page No

Acknowledgement 2

Student undertaking 3

Certificate 4

List of tables 6

List of figures 7

Executive Summary 8-10

Introduction 11-15

Objectives 16-17

Literature review 18-50

Industry profile 51-60

Research methodology 61-63

Limitations 64-65

Analysis & interpretation 66-70

Conclusion & recommendation 71-72

Bibliography 73-74

5
 LIST OF TABLES

S.NO Table Title Page

NO.
1. Table.1 22
2. Table.2 23

6
 List of Figures

S.NO Figure Title Page

NO
1. Fig.1 19
2. Fig.2 24
3. Fig.3 25
4. Fig.4, fig.5 26
5. Fig.6, fig.7 27
6. Fig.8 28
7. Fig.9, Fig.10 29
8. Fig.11, fig.12 30
9. Fig.13 31
10. Fig.14, Fig.15 32
11. Fig.16, Fig.17 33
12. Fig.18 35
13. Fig.19 37
14. Fig.20 39

7
EXECUTIVE
SUMMARY

8
 EXECUTIVE SUMMARY

The Indian food industry is poised for huge growth, increasing its contribution to
world food trade every year. In India, the food sector has emerged as a high-growth
and high-profit sector due to its immense potential for value addition, particularly
within the food processing industry.

Accounting for about 32 per cent of the country’s total food market, The
Government of India has been instrumental in the growth and development of
the food processing industry. The government through the Ministry of Food
Processing Industries (MoFPI) is making all efforts to encourage investments
in the business. It has approved proposals for joint ventures (JV), foreign
collaborations, industrial licenses, and 100 per cent export-oriented units.

Market Size

The Indian food and grocery market is the world’s sixth largest, with retail
contributing 70 per cent of the sales. The Indian food processing industry
accounts for 32 per cent of the country’s total food market, one of the largest
industries in India and is ranked fifth in terms of production, consumption,
export and expected growth. It contributes around 8.80 and 8.39 per cent of
Gross Value Added (GVA) in Manufacturing and Agriculture respectively, 13
per cent of India’s exports and six per cent of total industrial investment. The
Indian gourmet food market is currently valued at US$ 1.3 billion and is
growing at a Compound Annual Growth Rate (CAGR) of 20 per cent. India's
organic food market is expected to increase by three times by 2020

The online food ordering business in India is in its nascent stage, but
witnessing exponential growth. With online food delivery players like
FoodPanda, Zomato, TinyOwl and Swiggy building scale through
partnerships, the organised food business has a huge potential and a
promising future. The online food delivery industry grew at 150 per cent year-
on-year with an estimated Gross Merchandise Value (GMV) of US$ 300
million in 2016.

9
Investments

According to the data provided by the Department of Industrial Policies and

Promotion (DIPP), the food processing sector in India has received around
US$ 7.54 billion worth of Foreign Direct Investment (FDI) during the period
April 2000-March 2017. The Confederation of Indian Industry (CII) estimates
that the food processing sectors have the potential to attract as much as US$
33 billion of investment over the next 10 years and also to generate
employment of nine million person-days.

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INTRODUCTION

11
 INTRODUCTION
Parle is an Indian confectionary and food products company. It is the owner of
the famous biscuit brand Parle-G, which is also known as the perfect tea-
companion for Indians. The Parle name symbolizes quality, nutrition and
superior taste.

They have grown to become India’s leading manufacturer of confectionery

and biscuits and the largest selling biscuit brand in the world as per Nielsen
ratings.

The company “Parle Products Private Limited” was established in British India
in 1929 by the members of the Chauhan family from Vile Parle, Mumbai. They
started manufacturing biscuits in 1939. After independence, advertisements
were launched to project Parle G as an alternative to biscuits made by the
British companies.

As the makers of the world’s largest selling biscuit, Parle-G has an in-depth
understanding of the Indian consumer psychology. They have made it a
tradition to deliver both health and taste, with value-for-money that allows
people from all classes and age groups to enjoy Parle products to the fullest.
They have developed a marketing philosophy that reflects the needs of the
Indian masses.

Parle company was established in the year 1929 and the company started the
manufacturing of biscuits in the year 1939. After the success of products, the
Parle-G biscuits and the Frooti soft drink, the Parle brand became well known
in India.

The original Parle company was divided into 3 separate companies, owned by
the different people of the original Chauhan family, with a majority of it owned
by ParleAgro products. The 3 companies continue to use the family trademark
name “Parle”. The original Parle group was segregated into three non-
competing businesses.

12
They participated in food competition of Monde Selection in 1971, since then
brands have received consistently gold and silver Quality Awards at the World
Quality Selections.

Parle brand is one of the most well-known biscuit manufacturing brands in

India. Parle G is most famous product though, Parle products offer different
options in other categories. It promotes many other products like 20-20,
Magix, Krack Jack, Monaco, Golden Arcs, Parle Marie, Milk Shakti, Parle Hide
& Seek Bourbon, Parle Hide & Seek Fab, Top, Parle Gold Star, Happy Happy,
simply good, Namkeen coconut, Cheeselings, and Parle-G Gold.

It offers products like Melody, Mango Bite, Londonderry, Poppins, 2 in 1

Eclairs, Mazelo, Kismi Toffee Bar, Kaccha Mango Bite in the Sweet
confectionery section. In the Snacks section, it provides products like Mexitos
Nachos, Parle’s Wafers, Fulltoss, Parle Namkeens, Parle rusk, Parle Cake.

This gives an insight of the Parle marketing strategies. Hence, all the products
of Parle are convenient and can be consumed at any point of time by any
person. In fact, the biscuits offered cater to all kinds of segment be it lower or
upper middle class and are available in different product sizes. Their appeal
has been universal in the confectionery segment.

Parle has adopted a low-cost strategy in order to chase and establish a

market leader position. This is the major pricing strategy of the Parle brand as
a part of its branding. The low price of the Parle products with the promise of
high quality depress the competition.

Quality is the main focus of parle, and still has been able to maintain low cost
due to the high demand. The starting range of base pack is Rs 2 for biscuits
whereas the chocolates range from 1 to 2 rupees.

The pricing strategy of Parle has enabled it to retain its position as a market
leader despite several new confectionary brands coming in the market as its

13
competitors. Due to its high volume production, its prices are slightly lower
which helps to retain customers and reach maximum audience.

Parle products are available widely across all states in India. Due to its very
strong distribution network, Parle has been able to reach over 6 million
retailers all over India. Parle has over 23 manufacturing units which serve to
over 1500 wholesalers.

Apart from that, there are depot agents which further help in expantion of the
distribution network. This is the reason Parle products are present in every bit
and corner, be it large retail stores/chain or small shops or grocery stores.

Restaurants, hotels and even small size restaurant prefer to keep Parle as the
biscuit to be served along with tea or coffee. The wide distribution and easy
availability of the brand ensures that people keep Parle as their first choice of
biscuit over other brands.

Parle brand promotes through all medium like print, TVC, online ads etc. as a
part of its promotion and marketing strategy. Parle brand has always
incorporated qualities like sharing and caring positive emotions. By
sponsoring shows like Shaktimaan where Parle started giving out
merchandise for the same, Parle was able to connect with the children very
easily. Parle has been active when it comes to TV advertisements or
promotions.

Parle G was a prime product that the company promoted using the logo of a
young girl. All the products have distinct and attractive packaging which
attracts the target group. Apart from Parle G, all other products of the
company are also promoted extensively with innovative marketing campaigns.
Parley has practively been involved in press and print media. Hence, this
concludes the Parle marketing mix.

14
Pallavi Chakravarti, the Executive Creative Director, responsible for the new
campaign said, “Parle-G is a staple. Quite like our rice and pulses. It is like
that one person everyone has in their life who has always been there, albeit
on the side-lines.

This campaign is a celebration of relationships that we seldom acknowledge

but without which life isn’t quite the same. It’s a message that only a brand as
iconic as Parle-G can give. Because come to think of it, everyone has eaten
one and everyone has a human equivalent, if they just take the time out to
think of it.”

Parle-G’s campaign portrait celebrates relationships. It’s a message that only

a brand as sensitive as Parle-G can give. The idea is based on the people’s
tendency to take the familiar for granted. This campaign uses this tendency to
point out how valuable the familiar in our lives is while making a compelling
connection with the brand Parle-G.

15
OBJECTIVES

16
 Objectives of the study

 To study marketing in details

 To know importance of marketing
 To understand the concept of marketing clearly by means of parle
biscuit demand analysis
 To find out the marketing strategy used by the parle & parle Agro.
 To find out the major competitor of parle g biscuit

17
LITERATURE
REVIEW

18
 Introduction
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 to the remotest
villages of India, the company has definitely come a very long way since its
inception.

Fig.1

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

19
dollar company. While to the consumers it's a beacon of faith and trust,
competitors look upon Parle as an example of marketing brilliance. Over the
years Parle has grown to become a multimillion-dollar company with many of
the products as market leaders in their category. 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 onto become leading brand
names itself for great taste and quality. Today, the great strength of Parle
Products is the extremely widespread distribution network. Even at the
remotest places, you can buy Parle biscuits and sweets from the local grocer.
It has taken years to create this extensive network. Parle's sales force started
with one salesman in Bombay and some agents in few other cities. Gradually.
Parle Products expanded. Soon sweets and biscuits were being sent by rail to
Calcutta, Delhi, Karachi, Madras and other major cities. As production
increased, distribution was amplified. Full time salesmen were appointed in
different areas. Currently, Parle Products has over 33, 00,000 distribution
outlets. 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
bon contract. All Parle products are manufactured under the most hygiente
conditions Great care is exercised in the selection & quality control of raw
materials, packaging materials & rigid quality standards are ensured at every
stage of the manufacturing process. Every batch of biscuits & confectioneries

20
are thoroughly checked by expert staff, using the most modem equipment.
The Care is taken at every step to ensure the best product of long-lasting
freshness. Every batch of Biscuits, Confectionaries & Snacks are thoroughly
checked by expert staff using the most modern equipment. This ensures
consistent and perfect quality across the nation and abroad.

About the company

 A long time ago, when the British ruled India, a small factory was set
up by Mohanlal DayalChauhan in the suburbs of Mumbai city, to
manufacture sweets and toffees. The year was1929 and the market
was dominated by famous international brands that were
importedfreely. 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
sweetsand toffees. Having already established a reputation for qNality,
the Parle brand name grew instrength with this diversification. Parle
Glucose and Parle Monaco were the first brands ofbiscuits to be
introduced, which later went on to become leading names for great
taste andquality.The original Parle company was split into three
separate companies, owned by the differentfactions of the original
Chauhan family:
 Parle Products, led by Vijay, Sharad and Anup Chauhan (owner of the
brands Parle-G, Melody, Mango Bite, Poppins, Monaco and
KrackJack)
 ParleAgro, led by Prakash Chauhan and his daughters Schauna,
Alisha and Nadia (owner of the brands such as Frooti and Appy)

All three companies continue to use the family trademark name - The original
Parle group was amicably segregated into three non-competing businesses.
But a dispute over the use of "Parle" brand arose, when ParleAgro diversified
into the confectionary business, thus becoming a competitor to Parle
Products. In February 2008, Parle Products sued ParleAgro for using the

21
brand Parle for competing confectionary products. Later, ParleAgro launched
its confectionery products under a new design which did not include the Parle
brand name In 2009, the Bombay High Court ruled that ParleAgro can sell its
confectionery brands under the brand name "Parle" Or "ParleConfi" on
condition that it clearly specifies that its products belong to a separate
company, which has no relationship with Parle Products.

BOARDS OF DIRECTOR

NAME OF MEMBER DESIGNATION

VIJAY K CHAUHAN CHAIRMAN & MANAGING

DIRECTOR
SHARAD P CHAUHAN MANAGING DIRECTOR

RAJ K CHAUHAN MANAGING DIRECTOR

AJAY V CHAUHAN EXECUTIVE DIRECTOR

22
ANUP S CHAUHAN EXECUTIVE DIRECTOR

SAMAR S CHAUHAN EXECUTIVE DIRECTOR

Table.1

PRODUCT OF PARLE

BISCUITS SWEETS SNACKS

PARLE-G LONDONDERRY PARLE’S WAFERS
MONANCO MELODY NAMKEEN
GOLDEN ACRES MANGO BITE FULLTOSS
PARLE ACTIFIT KACHA MANGO BITE MUNCHIES
DIGESTIVE MARIE
PARLE MARIE CHOX CHEESLINGS

23
 HIDE & SEEK POPPINS
HIDE & SEEK FAB MAZELO
HIDE & SEEK 2 IN 1
BOURBON
FESTO 2 IN 1 ECLAIRS
HAPPY HAPPY KISMI
MILANO KISMI TOFFEE BAR
NIMKIN FRUITS DROPS
COCONUT
20-20 COOKIES
JAM IN
GOLD STAR
KREAMS
Table.2

These products are discussed below in short about that featurs , pricing etc.

24
BISCUIT

PARLE G

Fig.2

Every nation dreams of a better tomorrow. And every nation's tomorrow lies in
the hands of its children; the young stars who shape the future of the nation.
So, it's important to nourish these young stars, 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 all round nourishment. Treat yourself to a pack of yummy Parle-G

25
biscuits tf 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. Consumed by some for the value it offers, and many others
for its taste. Whatever the occasion, it has always been around as an Instant
source of nourishment. Little wonder that it's the largest selling biscuit brand in
the world.

PARLE FUTURE GENIUS

There's no school like childhood. And there's no teacher like curiosity. At

Parle, we believe that every child has the potential to become a genius if
allowed to follow their curious minds and explore without limitations. That's
why we made the futuregenius.com website. A tool for both parents and
children to help identify the spark of genius in a child, nurture it and give it a
platform to be showcased on

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. Go ahead, Life namkeen banaiye,
anywhere, anytime with Parle Monaco. To spice up your life further, try the
variant of Parle Monaco - The Zabardast Jeera. This salted, crispy biscuit
delicately seasoned with jeera, has a unique taste that makes those namkeen
moments even more exciting.

26
Fig.3

Monaco Classic Salted - Rs. 5 Rs. 10 R$. 15 (New SKU) Rs. 25 Monaco
Zeera - Rs. 10

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. Picked
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!

Fig.4

Rs. 5. Rs. 10, Rs. 20, Rs. 30, and Rs.50

HIDE N SEEK BOURBON

The name itself suggests everything.

27
The moment you take a bite your tongue starts playing hide n seek with the
rich chocolaty cream resting between two lovely sugar-coated biscuits. The
melting chocolate cream will feel rich and luscious in your mouth. It's a
complete treat for your taste buds. Moreover, it's like falling in love at first bite.

Fig.5

Rs. 5, Rs. 12 and Rs. 24

GOLDEN ARCS

Introducing uresistible Golden Arcs, filled with rich Strawbemy, Apple, Orange
& Choco Fillings. They are best described as 'melt-in-ypur-mouth', soft shelled
fruit rolls and crunchy choco fills which are perfect for an anytime snack.Do
bite into one of our 4 Delicious flavours.

28
Fig.6

Rs. 20 and Rs. 35

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".

Fig.7

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. And it's a biscuit that
will help you commit to a healthier you.

29
Fig.8

SWEETS

LONDONDERRY

Get a taste of the rich English-Irish culture, right here in India. With
Londonderry, an exquisite hard-boiled candy made from Milk and Caramel.
With a name inspired by an actual town in Ireland, the creamy, exotic taste of
this delicious candy will make you discover the glories of the majestic English-
Irish culture. Just pop-in a Londonderry candy and experience The magical
world of Londonderry.

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Fig.9

MELODY

Caramel meets chocolate to yield an outcome nothing less than delectable.

Parle Melody comes with an irresistible layer of caramel on the outside and a
delightful chocolate filling within. Pop it in your mouth and relish the unique
experience. It won't be too long before you find yourself asking the age old
question *Melody itni chocolaty kyonhai?

Fig.10

KACHA MANGO BITE

31
The mastiful flavour of summer now comes in a candy. Just pop a Kaccha
Mango Bite and experience the natural tangy sweetness of a real raw mango.
It's the only candy that is a real kaccheaam a zerox. So when you're craving
for the tantalizing khatta-meetha taste of raw mango just reach out for a
Kaccha Mango Bite and enjoy real kaccheaamki mast, anytime, anywhere.

Fig.11

2 IN 1 ECLAIRS

It's a creamy, delicious bargain! Savour the delicious cream filling overflowing
from a golden caramel shell. Delight your taste buds with rich taste of cream
and caramel. It's Eclairs 2 in 1, a sweet delight to double your pleasure and
treble the fun! And remember, two's always better than one.

32
Fig.12

KISMI

Now the yummy toffee and elaichi taste of Kismi Toffee comes specially
packaged in its maha-avatar. Now when you study or play. bring your
appetites and more for this fantastically big bite of Kismi Toffee Bar. Making it
one of the most popular toffee bars in India. After all everyone knows, when
ircomes to toffee, big is best.

Fig.13

SNACKS

MUNCHIES

33
JEFFS

Crunchy, salted biscuits flavoured with cumin seed (Zeera) for that extra boost
of flavour. The perfect snack for just about anywhere- Jeffs

SIXER

Think Square is boring? THen what you need is a Sixer. This six-sided, salted
delight cuts out the boring from a biscuit. A unique shape coupled with an
equally unique crunchy, munchy, salty taste that leaves you asking for more!

Fig.14

CHEESELINGS

For the love of cheese and only cheese! Parle pulls out *Cheeselings? from
its pool of innovative products. It's a baked snack, light on tongue and high on
its Cheesecious taste. Its fluffy form makes it very crunchy yet it actually melts
in your mouth, leaving behind the lingering flavor of cheese. Each bite opens
the doors to that nostalgic feel everyone would love to savor. Once tried, we
bet you will become a fan of Cheeselings. So, what are you waiting for?
Come, join the ever-increasing Cheeseling Fan Club and Parle will make sure
your favorite snack reaches you most conveniently.

34
Fig.15

PARLE’ S WAFERS

Presenting Parle's Wafers. Made with the choicest of handpicked potatoes,

it's lip smackingly delicious, delightfully crunchy and comes in four exciting
flavours – Masala Masti, Red Chilli Achaar, Class& Salted, Aloo Chaat,
Cream and Onion, and Tangy Tomato. Grab one. Or grab'em all. Whenever
you want, wherever you please. We're sure you'll enjoy it from the very first
chip till the very last.

Fig.16

35
FULLTOSS

Fig.17

"Imagine you are playing for Indian cricket team; we need 6 runs from the last
ball. An attempted Yorker turns out to be a full toss. You lift your bat, swing it
hard and the ball disappears in the crowd. It's a six!!! Felt the joy? This is how
you would feel after each bite of Parle'sFullToss. What adds more excitement
in any tale are its twists, hence its shape is powered packed with masaledan.
Karare twists. Just open a pack of this lip smacking scrumptious snack and
add some spice in your day to day moments. It's perfect for every occasion
and each craving. Available in exciting flavours - Masala Munch, Masala
Kachori, Jhalmuri Kolkata Bhel, Green Mango Chatni, Tangy Pickle, and now
you can try the new Tomato flavour

36
 THE MARKETING STRENGTH
The extensive distribution network, built over the years, isa major strength for
ParleProducts. Parle biscuits &sweets are available to consumers, even in the
most remote placesand 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 endeavour 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.

MARKETING MIX OF PARLE PRODUCTS

37
 Fig.20

The term marketing mix refers to unique blend of Product, Place,

Promotion & Pricing strategies designed to produce mutually satisfying
exchanges with a target market. Marketers have to make many decisions
in developing a marketing mix that will satisfy their target customers.
However, all of the variables that make up the marketing mix can be
reduced to four basic categories.

PRODUCT MIX

PRODUCT LEVELS

 Core benefit- the core benefit of biscuits is to satisfy hunger of the

consumer.
 Basic product- in the second level, the basic product is biscuits.
 Expected product- the consumers expect the product to have a good
taste and also give nutrition
 Augmented product - parle biscuits increase a person's energy levels.
This is not always expected by the consumers and hence exceeds
customer's expectations

38
  Potential product- in the future parle could come up with different
products such as a snack which could be a combo of chocolate and
Biscuit.

Classification of products

 Based on tangibility- Parle biscuits are tangible, i.e. one can see
and touch them
 Based on functional life- Parle biscuits are consumables since
biscuits form apart of food and have a short life.
 Based on price and quality- most of Parle biscuits such as Parle-G,
Monaco, Krack jack are mass products but a few Parle biscuits
such as Parle hide and seek and Milano are premium or prestige
products.
 Based on utility- Parle biscuits are convenience goods. They are
staples since they are bought by consumers regularly. Also they are
partly impulse products.

Consistency

The product consistency generally depends on 3 parameters.

1) Production
2) Distribution
3) Consumer end-user

The production process of every parle biscuit follows some basic

ingredients like wheat flour, vegetable oil, inverted syrups, skimmed
milk powder ,etc. then depending upon the product, extra
ingredients are added for e.g. in Monaco there might be an extra
amount of salt put in to give it that prominent salt taste, to hide &
seek chocolate chips are added. Etc. Parle uses the same
distribution channels for selling all its products under the biscuit
category i.e. 1$ 2nd & the 3rd level of the distribution channels. The
basic end use of all parle products remains the same
- eating it's implied to satisfy hunger.

39
 Products like parle-g may also be consumed for the intake of high
glucose levels for
immediate strength & energy.

RAW MATERIAL USED

 Wheat flour
 Sugar
 Partially hydrogenated edible vegetable oils
 Invert Syrup
 Leavening agents (503 Baking powder)
 Milk solds
 Salt
 Emulsifiers (E 322 or E 471 or E 481)
 Dough conditioners (E 223) and contains added flavors.

PROCESS LAYOUT OF PARLE PRODUCTS LTD.

PARLE G is made at parle products Id. at vile parle. First of all the parle
products buys RAW MATERIAL from the various suppliers and stored into the
store room. This raw material is then sent to laboratory for testing and after
testing only it is used for manufacturing. The raw material consist of Wheat
flour, Sugar, Partially hydrogenated edible vegetable oils, Invert syrup.
Leavening agents (503 Baking powder) Milk, solids Salt Emulsifiers (E 322 or
E 471 or E 481) and Dough conditioners (E 223). Such a mixture of raw
material is taken and mixed into STEPHAN MIXTURE, which is high power
mixture machine. Specially made for mixture of dough, from which the mixture
ispassed to molder called ROTARY MOULDER. Through that molder
approximately 10,000come out in a minute. Molder had 260 cups fitted in it
which gives shape to the biscuits andan impression embossed on it of parle-
g.From rotary molder the dough is passed through a

260 feet long OVEN which isapproximately 340* c. In oven there are three
stages to be followed

1. Removal of moisture.

40
2. Building the structure of biscuits.

3. Colorings of biscuits take place.

From oven the hot biscuits are placed on the COOLING CONVYOR, which is
260 feet longand the biscuits continues to run on it for 5 to 7 minutes so that
the biscuits become cool andall the moisture that biscuits contain gets
evaporated. And because of the above reason thefactory has "S FLOW
LAYOUT in the factory.The conveyor continues to move to COUNTING UNIT
where biscuits are counted and seen The conveyor continues to move to
COUNTING UNIT where biscuits are counted and seen that it is going on
properly or not. The conveyor continues till the biscuits reach the STALKING
TABLE at which the biscuits are packed in very orderly manner. From cooling
conveyor sum biscuits are diverted through AUTO FEEDING MACHINE to
another stalking machine where packing is done. From stalking table the
biscuits are moved on conveyor to MULTI PACK WRAPPING MACHINE were
16 biscuits are packed into a regular parle g wrapper so that the weight of 16
biscuits comes up to 100 grams. Then 24 packets of parle g biscuits are
packed into a POLY BAG. And after packing it into poly bag it is sent to
SEALING MACHINE where it is sealed, Then it is sent to CORRUGATE BOX
SECTION in which 6 poly bags are placed and then the boxes are kept on
conveyor and sent to DISPATCH SECTION from where the biscuits are sent
to various places in India and all over the world. All Parle products are
manufactured under the most hygienic conditions. Great care is exercised in
the selection & quality control of raw materials, packaging materials & rigid
quality standards are ensured at every stage of the manufacturing process.
Every batch of biscuits & confectioneries are thoroughly checked by expert
staff, using the most modern equipment.

INVENTORY

The inventory of the company that is the raw material is of a week. They store
such inventory in store room and then are sent for testing in laboratory and
after testing it is sent for

production.

41
SHIFTS

There is nearly 10,000 employees working in the company and are working in
three shifts.35,000 tons of biscuits are manufactured in a day of one particular
product, and there are such nine product manufactured in the factory.

WASTAGES

There are two type of wastage in factory. First is the waste materials fallen on
ground. Such waste material is of 1% which is marginal and acceptable which
goes into total waste. Second types of waste are the biscuit collected in tray of
the multi-pack wrapping machine, since these biscuit are broken they are not
packed and sold to the customer but collected in other tray and sold as
broken pieces and sold price for cattle feeding.

LOOSE BISCUIT

On the stalking table one to two rows of baked biscuits are kept aside for
selling it as loose biscuits. They are normally assumed to be damaged
biscuits but they are not damaged or broken but company keep such loose
packets of biscuits to sell it to the local people for marginal rate of 33 Rs/kg.

FOLLWING ARE THE MACHINERY USED IN MANUFACTURING

STEPHEN MIXER

The Stephan K Mixer is an ideal component to fully automatically feed the

down-stream make-up equipment for biscuits, bread, rolls, buns, cake, sweet
goods, cookies and crackers.

ROTARY MOULD

structure in corrosion-proof; anodized aluminumandAisi 304 stainless steel

satin stainless steel panelling swivel wheels and support feet trays loader with
automatic chain feed feeder roller anodizedaluminum 1.00 kW speed validator

COOLING CONVEYOR

The biscuit coming from stripping conveyor is directed on to the cooling

conveyor to transfer the heat in the biscuit to atmospheric air as it is passing

42
on it. The total travel of the cooling conveyor is 1.5 times the oven length. As
per need specifications it need the travel of 150 ft.

LAMINATOR

Laminators are generally used for production of all kinds of hard biscuits,
crackers and cocktail snacks. With laminator it is possible to create a puffy
pastry-like structure, which is of decisive importance for the quality level and
consequently for the sales success.Laminating of Dough band improves the
weight/volume ratio considerably.

BISCUIT BAKING OVEN

The oven body consists of steel steam tight tunnel with equally divided zones
of the radiators. Stainless steel expansion ioints are provided between these
zones in order to eliminate the

BISCUIT BAKING OVEN

The oven body consists of steel steam tight tunnel with equally divided zones
of the radiators. Stainless steel expansion joints are provided between these
zones in order to eliminate the expansion of the oven section. The inspection
doors are provided for inspection of the baking goods during the process.

Baking Svstem:

The baking in the heating chamber takes place by radiators located under and
above the wire mesh band which distribute heat for uniform baking. The
recirculation heating gases of these radiators can be controlled for each zone
separately. The closed recirculation system is having slight vacuum so that
combustion gases cannot enter into the baking chamber. The ventilating fan is
for circulation of the heating gases through the recirculation system and
thermostatically controlled burners the set temperature of the heating gases.

ROTARY CUTTER

43
The single head rotary cutter prints fine design on a continuously fed dough
sheet and also cuts out the individual dough piece. The unit powered by
1.5KW helical geared motor and speed controlled by AC frequency controller.
Drive is given to cutting roller only to accommodate different sizes of dies in
this machine.

COUNTING UNIT

The counting unit counts and see that the biscuit making process is going fine
or not, i.e. as per the program set in the machine, program is set as per the
grams required. Generally 16 biscuits are taken by the counting unit so that it
leads to 100 grams.

MULTIPACK WRAPPING MACHINE

This machine helps in wrapping the biscuits on the particular wrapper fixed on
the roller of the machine. The wrapper is feed into the machine and the
sealing of the wrapper is done by four heater roller, which is fitted on the
machine. This heater roller heat up the plastic and seals the packet. And at
the same time the jaw cutter cut the packet on the cutting edge marked i.e. as
per the grams of the packet which is feedin the automatic machine (100 - 120,

120 - 150, 150 -170, 170 - 190). The packets coming out from the wrapping
machine in a minute is programmed in computer and can be changed as per
the need.

POLY BAGS

Poly bags contain 24 packets of parle g biscuits in one poly bag. There are 4
workers employed on this section who take care of the work by putting 24
packets of biscuits in the bag and forwarding it to sealing machine section.

SEALING MACHINE

The sealing machine has heater rod for sealing the poly bag in which 24
packet of biscuit are placed, and it have a conveyer belt on other side so that
when the poly bag passes through the heater and get sealed then it is passed
to the tapping machine.

44
TAPPING MACHINE

Six such poly bags are placed in one such corrugated box and the box is
passed through the TAPPING MACHINE Six such poly bags are placed in
one such corrugated box and the box is passed through the tapping machine
where are tapped and then sent through a long diversion conveyer belt. This
belt helps to transfer the box to the dispatch section directly. 36 boxes are
arranged on pallet in the dispatch section, from where they are transferred to
the various dealers all over the India and worldwide.

Packaging and Labeling

Packaging: The time spent by a customer for picking up a product from a

retail outlet is a fewseconds; therefore a package should appeal to a customer
within such a small interval of time.In this, both packaging &labeling play an
important role in attracting customers both visually& psychologically.

Packaging:

For Parle G: Parle G was initially recognized by its iconic white and
yellowstripped wax paper wrapper with the baby face on it. Many competitors
have tried to sell their Alower quality products by copying the packaging,
trying to sell their biscuits as Parel-G;Parle-Jee etc. Due to increasing
competition Parle G now uses plastic wrappers for itspackaging. Parle-G
comes in 8 different sizes: 25gms, 44gms, 93.5 gms, 231 gms, 340.5
gms,462gms, 577.5gms and a 1kg pack just for Rs.30 which is not usually
offered by otherParle Hide & Seek: It initially came out with 3 variants: Mint,
Orange &Chocolate which wasn't accepted by the masses. However, the
production of Mint & orangeflavours was stopped. Chocolate is the only
flavour that is running successfully since it isIndia's first chocolate chip biscuit.
Hide & seek biscuit's current packaging has been modified along with lower
prices & better affordability rates. Thus there is a change in size ofthe product
which is prevalent in the ads. One of the advertisements shows movie
actor,Hrithik Roshan walking with a pack of hide& seek biscuits in the back

45
pocket of his jeans emphasizing on the small size of the product.Parle hide &
seek Milano: This product of Parle has a flashy purple coloured packing which
attracts customers with the whole look of Italian chocolate chip
cookies.Labelling: Consumers are becom36 of 63 teasingly health conscious.
So, it is essential to display the contents of every product. Every packet of
Parle G, Parle hide & seek,Parle hide& seek Milano has information about the
ingredients used, nutrition facts,mailing& emailing addresses asking for
feedback, phone number, packaging date etc.All this along with the brand
name and directions are printed in Hindi too.

PRICING MIX
The Parle marketing philosophy emphasizes catering to the masses. It
constantly endeavors atdesigning products that provide nutrition & fun to the
common man. Most Parle offerings arein the low & mid-range price segments.
This is based on its cultivated understanding of theIndian consumer psyche.
The value-for-money positioning helps generate large sales volumesfor the
products.Parle G has adopted the Market Penetration strategy i.e. low price
along with capturing of alarge market Also they focus on low prices and
provide good quality products at the same time, which means it uses the
value pricing method.This benefits Parle G by having a competitive edge in
terms of large market share which is around 40%: both rural and
urbanpresently.For setting the price of Parle hide & seek biscuit, a survey was
taken in the urban &semi-urban markets: on the basis of which hide & seek
was introduced. It was found that the potential consumers were ready to pay a
premium pricefor an innovative product like chocolate chip biscuits. Thus,
Parle adopted market skimming where the product is high priced and also of
high quality. It includes the cost of chocolates, packaging & other processing
cost. All these show customer status, which is also one of the reasons for
parle hide & seeks high price.A separate example for explaining the pricing
strategy of Parle is its product Parle Creams For this product Parle uses going
rate method only as" a reference rate. In this case, Parle Creams were
introduced after Britannia's Cream Treats with similar variants but at Rs.5
perpacket of biscuit and not Rs.10 like that of Britannia's cream treats.

46
PLACE MIX

The extensive distribution network, built over the years, is 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.

Distribution Channel levels:

Parle has nearly 1,500 wholesalers, catering to 4, 25,000 retail outlets directly
or indirectly. 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. So it is seen that Parle has 1
level, 2 level & 3 level distribution channels levels.

Level 1- availability to all departmental stores.

Level 2- Since it's an FMCG product thig of exists for customers scattered
throughout

Level 2- Since it's an FMCG product this channel exists for customers
scattered throughout

the country.

Level 3 - Mass consumption & suitable for national & international coverage.
For e.g. Parle's international operations consist of serving markets in the
Middle East, Africa, South

America, Sri Lanka, Australia and North America for which the 3 level
distribution channel

exists.

Parle has a multi-channel marketing system since it uses more than two
marketing channels to reach all its customer segments.

PROMOTION MIX

47
The marketing mix tools used by Parle are Sales promotion, Advertising, and
Public relations.

Sales Promotion

Parle uses the Sales force promotion tool for all its employees. Every year it
holds day fairsat branded venues where games and fun events are organised
for the employees of Parle and their families; where Parle products are give
away prizes.

Advertising

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, went on to

become one of the most popular Advertising 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. In1989,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, are as
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 an icon. The next
level of communication associated the brand with the positive values of lifelike
honesty, sharing and caring. The year 2002 went down as a special year in
Parle-G's advertising history. A year that saw the birth of G-Mana new
ambassador for Parle-G. No “just a hero but also a super-hero that saves the
entire world, especially children from all the evil forces. A campaign that was
not just new to the audiences but one that involved a completely new way of
execution that was loved by children all over the world -Animation. A TV
commercial that showed G-Man The year 2002 went 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 was
not just new to the audiences but one that involved a completely new way of

48
execution that was loved by children all over the world -Animation. A TV
commercial that showed G-Man saving the children from the evil force called
Terylene launched this campaign. It was also supported by print medium
through posters and streamers put up at the retail outlets. Another campaign
that was launched by Parle for Parle-G was*G' mane "GENIUS". Fortis a
series of ads were shown in which a little kid eats Parle G and tricks the wise
and experienced people. Just a few months back a reminder TV commercial
was launched for Parle-G where the product is being called Hindustan
kitakat'Most of the Parle-G TV commercials tell us that brand awareness is
being done by capturing consumer emotion. Heavy promotion plays a major
role in creating brand awareness. Such is the case of Parle hide & seek
biscuit's television advertisements. The ads of parle hide and seek are
portrayingactor Hrithik Roshan.

This tells us that the product is being promoted by celebrity endorsement to

increase awareness of this product and help capture the consumers"
attention.

Public Relations

Parle has done the following for enhancing public relations:

In the year 1997, Parle-G sponsored the tele-serial of the Indian superhero,
Shaktimaanthat went on to become a huge success. A of eersonality of the
superhero matched the overall

Parle has done the following for enhancing public relations:

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. The children just could not get enough of Parle-G
andShaktimaan.In the year 2002, it was decided to bring the brand closer to
the child who is amajor consumer. A national level promo -"Parle-G Mera

49
Sapna SachHoga' 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 fulf…Golu Galata contest - In Tamil Nadu. traditionally,
women decorate various dolls made of clay during Navaratri celebrations by
setting up 7-9 steps. This display is well decorated and friends and relatives
are invited to witness the same. Through a detailed research, Parle found that
due to time pressures, this tradition is slowly dying and is getting restricted to
a select few households. Thus, to revive the fading event, Parle had
introduced the novel promotion called ParleGolu Galata contest in 2005. After
the encouraging response and resounding success of the 2005 Golu Galata
contest, in 2006 Parle Products Pvt. Ltd took the contest to Chennai, Madurai,
Trichy, &Kumbakonam. (Golu means Doll & Galata means Dhammal.)

50
 INDUSTRY
PROFILE

INDUSTRY PROFILE

Food production encompasses a diverse range of activities and products, and

most companies within the food industry focus on just one or a few of the
many specialties. Major segments of the industry include:

 meats
 dairy products
 canned, dried, and frozen foods

51
 baked goods
 candy and confectionery
 edible oils and margarine
 beverages

Because fresh foods like fruits and vegetables require little or no processing
before sale to the public, they are often not included in discussions of the food
industry. However, a few of the largest fresh fruit and vegetable companies
also participate heavily in processed food manufacturing.

In the late 1990s food manufacturing in the United States was worth more
than $490 billion in sales each year, employed some 1.5 million people, and
involved tens of thousands of companies. By sales value, meat packing is
the United States' largest food segment, accounting for nearly a quarter of all
manufactured food sales.

While some factors influence food consumption, demand for most foods is
fairly stable in the United States and usually rises just slightly ahead of the
rate of population growth. In the 1990s, after factoring out inflation, the real
growth rate of manufactured food sales hovered around 1 percent each year.
Fads or social change, such as a trend toward eating low-fat foods, may
influence the relative popularity of certain foods. Likewise, general economic
prosperity often leads to somewhat higher per-capita consumption rates.
Overall, though, the United States is a mature market for food, meaning that
in order to boost sales manufacturers usually must convince a consumer to
purchase one product instead of another.

As a result of these tight market conditions at home, many large

manufacturers have sought expansion overseas. They do so either by
exporting products made in the United States to foreign countries or by
establishing operations in another country and producing locally. U.S. exports
of manufactured food totaled an estimated $32 billion in 1998, while imports
trailed at about $29 billion. The value of U.S.-company food operations
abroad, however, was much greater, at more than $100 billion.

52
History of the Industry

Food manufacturing's history is as varied as the foods the industry produces.

Many of the innovations that led to the modern industry occurred in the
second half of the nineteenth century. During this period emerged such
common mass-production techniques as canning, meat packing, large-scale
baking, and soft drink bottling. Before such technologies were born,
comparable foods were purchased from small-scale local producers, made at
home, or, in the case of soft drinks, unavailable.

Many of the early forms of food mass production were greeted with mistrust
from consumers. Some people, for example, feared that food in tin cans could
be spoiled. Similarly, since meat preparation was historically grounded on
strict principles of sanitation and immediate use or curing, many consumers
hesitated to buy packaged meats.

Advances in refrigeration, both for home and industrial use, thus had a
significant impact on the industry. Refrigerated railcars meant that foods
prone to spoilage, particularly fresh meats, fruits, and vegetables, could be
distributed greater distances from their point of origin. It also prolonged the
useful life of these foods, and made consumers more willing to purchase
items that weren't produced locally—a necessary step toward establishing
national brands—because refrigeration lessened their fears of buying unsafe
foods. Moreover, mechanical refrigeration eventually gave rise to completely
new genres of manufactured food, such as precooked frozen vegetables and
prepared frozen foods.

New forms of packaging represented a second key development in the history

of food manufacture. Tin cans and glass bottles were first used in canning in
the early nineteenth century, and their use became commonplace by the latter

53
half of the century. Canning significantly increased the useful life of many
foods, especially fish, vegetables, and fruits. As glass and metal packaging
grew more reliable and easier to produce, a canning industry began to form.
The U.S. Civil War (1861-65) helped spur demand for canned foods, which
were used to feed the soldiers. Refinements in bottling late in the nineteenth
century made possible the distribution of soft drinks such as Coca-Cola, a
beverage sold at first only from soda fountains.

In the twentieth century numerous enhancements in packaging helped

improve the distribution process and the cost efficiency of producing many
foods, as well as extending the shelf life of processed foods. Most significant
among twentieth-century developments was that of plastics in food packaging.
Plastics came to be used in everything from simple bread wrappers to
structural cartons to highly engineered coatings on metal surfaces and foils.
Air- and moisture-proof plastic packaging helped protect foods from
deterioration or contamination and provided for cheaper, more efficient
production.

Significant Events Affecting the Industry

While overall food consumption is fairly stable for a given-sized population

over time, the specific kinds of foods preferred by large segments of society
may grad-ually—and, sometimes, very quickly—change. Since the 1960s the
most significant changes in U.S. food consumption have been the rise of
health-conscious eating habits and demand for foods that are fast to prepare
and eat. Secondary trends have included a shift away from traditional
"American" cuisine and toward foods with ethnic or exotic themes, in
particular, Mexican- and Asian-inspired items.

Healthy eating has been a boon to poultry companies, as U.S. per-capita

chicken consumption has nearly doubled since the mid-1970s. Consumers
sought chicken because of its lower fat content than most other meats, and

54
consequently per-capita consumption of beef and pork by the mid-1990s was
down from the historic highs of the 1960s and 1970s. Nutritious, low-fat food
demand also led to the introduction of numerous product lines directed at
health-conscious consumers. In the 1990s these included the Healthy Choice
and SnackWell's lines of diverse food offerings from cereals to frozen entrees
to yogurt to crackers. Interest in health foods also helped fuel sales of new
fruit juices and bottled water in the 1990s.

Demand for convenience has also reshaped the food industry. In the 1980s
many companies rolled out microwave-ready foods to coincide with the
popularity of fast-cooked meals, and a number of companies continued to
develop easy-to-prepare meal kits into the late 1990s. Convenience has also
driven fast sales growth and product-line extensions of ready-to-eat snack
foods like tortilla and potato chips.

By the late 1990s one of the faster growing convenience trends was that of
buying freshly cooked, hot en-trees from grocery stores or restaurants for in-
home consumption, a practice known in the industry as home meal
replacement. This represented both an opportunity and a challenge to food
manufacturers because at that stage the food was usually not branded as the
manufacturer's product, but as the store's. In order to participate in the
emerging market, which could potentially erode sales of their traditional
brands, manufacturers needed to market their products as ingredients for
store-prepared meals or to establish co-branding deals in which both their
products and their brand names were associated with such meals.

KEY COMPETITORS

55
Each segment of the food industry typically has many competitors, and the
industry as a whole boasts over 70 U.S. companies with annual sales above
the $1-billion mark. Listed below are a few of the largest and best known.

Philip Morris Companies Inc. Philip Morris is the United States' largest
foodmaker, principally through its well-known subsidiaries, Kraft Foods, Inc.
and the Miller Brewing Company. Combined food and beverage sales
accounted for 44 percent, or $31.9 billion, of Philip Morris's $72.0 billion in
1997 sales. Tobacco accounted for almost all of the rest. The company, which
traces its origins to a London tobacco store in the mid-nineteenth century,
began acquiring food businesses in the 1970s to insulate its sales from the
maturing and increasingly contentious tobacco business. By the 1980s it
stepped up its pace and bought out two of the United States' largest food
companies, General Foods Corporation and Kraft. The two were later merged.
Among Philip Morris's many food brands are Oscar Mayer, Post, Jell-O, Kool-
Aid, Maxwell House, Breyers, Louis Rich, and Stove Top. These and many
other labels place Philip Morris as a major contender among makers of dairy
products, lunch meats, coffee, beer, cereal, light beverages, prepared frozen
meals (especially pizza), and food condiment and sauce mixes. In 1997 the
company employed 152,000 workers around the world, and held major shares
of various food segments in parts of Europe as well.

ConAgra, Inc. Originally known as Nebraska Consolidated Mills, ConAgra's

expansion to its present status as a leading diversified food producer began in
earnest with its development of the Duncan Hines brand cake mix in the
1950s. The company, which is still based in Omaha, Nebraska, became a
multifaceted food provider in the 1960s and 1970s, establishing a number of
poultry processing plants to complement their growing flour mill business. In
1971 the company changed its name to ConAgra and continued its expansion
into a variety of manufacturing industries. The company's acquisitions have
included United Agri Products (1978), Banquet Frozen Foods Corp. (1980),

56
Armour Food Company (1983), and Beatrice (1990), as well as a number of
other businesses. Regarded as the number two U.S. food company, ConAgra
offers over 50 brands, including Hunt's, Wesson, Armour, and Butterball, and
operates more than 200 retail outlets. It also owns the Healthy Choice label,
which it also licenses to other companies for use on their products. ConAgra's
product line includes meats, canned goods, oils, and a variety of frozen
prepared vegetables, fish, and entrees. The company also has a thriving food
ingredients business that sells to other manufacturers. Its sales for the fiscal
year ended May 1998 totaled $23.8 billion, and that year it employed over
82,000 people.

The Coca-Cola Company Founded in 1892 (although an early soda fountain

version of its product dates back to 1886), the Atlanta-based Coca-Cola
Company is the world's largest soft drink maker, claiming an estimated 50
percent of the world market. Its flagship brand is sold in virtually every nation
on earth. Coca-Cola distributes its products mostly via independently owned
bottling franchises, usually by geographic region, that purchase their
ingredients from Coca-Cola. The company's other soft drink labels include
Sprite, Tab, and Diet Coke; it also produces drinks under the Minute Maid,
Fruitopia, and Hi-C trademarks. In 1997 the company, which employed a
labor force of 29,500, brought in $18.9 billion from all of its operations.

Mars, Inc. Mars possesses one of the largest U.S. candy businesses by
marketing the likes of Snickers, Mars, M&M's, and 3 Musketeers candies. It
competes head on with Hershey Foods Corporation and Nestle of Switzerland
for leadership of the U.S. sweets market. Its Snickers bars were the top-
selling U.S. candy in the mid-1990s. The McLean, Virginia-based private
company also makes pet food. The company doesn't release its sales figures
to the public, but its 1997 sales were estimated at $15 billion. That year the
company employed an estimated 28,500 persons.RJR Nabisco Holdings

57
Corp. Another tobacco-food conglomerate, RJR Nabisco combines the
tobacco business of the number two U.S. tobacco concern, R.J. Reynolds
Company, with the food operations of the United States' top cookie and
cracker baker, Nabisco Holdings Corp. The two were united in 1985.
Originally the National Biscuit Company, formed by an 1898 merger of two
leading bakeries, Nabisco markets such well-known brands as Fig Newtons,
Chips Ahoy! and Oreo cookies, Ritz crackers, and the SnackWell's line for the
health conscious. The Nabisco Holdings Corp. food business trades
separately from the parent company's stock, although RJR Nabisco still owns
about 80 percent of it. With $8.7 billion in 1997 sales, Nabisco faced slowing
sales in the 1990s that prompted investor attempts to spin Nabisco off fully
from R.J. Reynolds. These efforts failed; however, Nabisco began to
undertake a reorganization to cut its costs and revive sales.

Global Presence

The U.S. industry has a large and expanding presence in foreign markets. In
each year since 1989, the value of U.S. manufactured food exports (which
exclude raw agricultural products) has surpassed the value of imports. In
1998 this trade surplus was estimated at $3.26 billion. A much greater source
of international revenue, though, comes from U.S. manufacturers' operations
in foreign countries, which contribute 3 to 4 times as much in annual sales as
do exports shipped from the United States. This type of transplant operation is
described by economists as "foreign direct investment," and is achieved either
by buying stakes in existing foreign companies or by setting up or acquiring
manufacturing facilities in which to produce new products. In the mid-1990s
revenues from U.S. foreign food holdings surpassed $100 billion, and these
businesses were among the fastest growing for U.S. manufacturers.

Employment

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With over 1.52 million people on its U.S. payroll, the food products industry is
one of the country's largest employers. The size of the U.S. work force crept
up gradually between the early and mid-1990s, but entering the 2000s it was
expected to stall and possibly decline as large U.S. companies continued to
focus on boosting domestic efficiency and expanding overseas. Nearly three-
quarters of the industry's labor force are production workers, or non-
management employees. The entire industry's payroll exceeds $40 billion
annually, which amounts to an average annual compensation of around
$27,000 per employee, which is somewhat lower than the average wage for
manufacturing employment.

Industry Projections

In the tight U.S. food market, even the largest of companies must approach
the market aggressively in order to maintain their sales volume. ConAgra
provides a good example. Though highly diversified across different food
segments, ConAgra in the late 1990s obtained the vast majority of its sales
from the United States. When prices on commodity items like beef began to
slide due to high capacity, ConAgra began to see its net sales lose ground as
well. After peaking in 1996, the company's sales declined in 1997 and were
expected to drop both in 1998 and 1999 in addition—barring acquisition of
another company to pad its coffers. Sales were expected to rebound only in
2000 given market conditions as of 1998. While not all companies faced
ConAgra's plight, a number of the leading companies used to more rapid
sales growth found themselves in stagnant waters in the late 1990s.

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60
RESEARCH
METHODLOGY

RESEARCH METHODOLOGY

research methodology data collection method data collection is an elaborate

process in which the researches makes a planned research for all relevant

61
data. data is the foundation of all market research. data are facts may be
obtained from several sources. data can be classified as:

 PRIMARY DATA

 SECONDARY DATA

PRIMARY DATA

It is gathered for the first time by the researchers. If the secondary data is
found to be inadequate or unavailable, the researcher goes for primary data.

COLLECTION OF PRIMARY DATA

The researcher was assigned to do a comparative study on PARLE G

BISCUIT. In order to accomplish the job, the researcher adopted the two-way
strategy topolect the primary data. Secondly to complete the job in a more
genuine way, retailer survey was conducted sample of 20 rational retailers
were taken and they were supplied with a structured non-disguised
questionnaire. The idea was to seek out the market position of Parle G biscuit.

The data collected was to collected from different wholesale & retail outlets of
biscuit namely Shop Confectioners Kirana and general stores.

SECONDARY DATA

Secondary data is the data borrowed from secondary sources by the

researcher. Secondary data can be internal or external i.e., internal records of
the company or information available from library and other statistical
organization. in a market Research Project Fieldwork Has a very vital role to
play.As a matter of fact,it's the back bone of any Market Research Project
Field work basically consists of collection of primary data, in this project,
researcher had to undergo a lot of Fieldwork.

62
For the purpose researcher has visit various cinema halls, public attractive
places, colleges & school canteens etc. The whole area which was to be
surveyed was divided into different segments randomly. Simultaneously
survey of both retailers and consumers was carried out. The researcher
worked in the field for a span ofone& half months. Eater on whole data which
was collected from field was well scrutinized & tabulated for analysis. Its
interpretation has been provided in most easy to understand manner with the
help of suitable diagram & charts.

Primary data and Secondary data have been used for the purpose of
completing this project.

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LIMITATIONS

LIMITATIONS OF THE STUDY

Many constraints were involved in doing this study.

Some of them are as follows:

64
 The sources from which secondary data is collected
may not be accurate so there is a scope of
inaccuracy.
 Primary data does not help in forming any analysis or
deductions unless and until it is refined through
statistical methods.
 There sponsors received maybe inaccurate because
of inherent bias by the respondents.
 Documents may lack authenticity– parts of the
document might be missing because of age, and we
might not even be to verify who actually wrote the
document, meaning we cannot check whether its
biased or not.
 The present study relied on supervisory judgments
form sure soft ask and contextual performance.
Although it is presumed that supervisory judgments
are good measures of performance there is always
potential for ideas in perpetual processes. Therefore,
future research might address the issue by including
both supervisors and peer ratings in their studies or
using more objective performance measures if
available.

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 ANALYSIS and
INTERPRETATION

Analysis & interpretation

SWOT ANALYSIS

66
SWOT analysis is the firm should identify its intemal Strengths (S) and
Weeknesses (W) and also examine external Opportunities (O) and Threats
(T)

Fig.18

Strength , Weakness , Opportunity WA and Threat are the four tools for a
individual or group or organisation to grow I improve and polish it's skill. Parle
Product Ltd. Has been highlighted below which covers all the criticality of the
project

Strengths

 Parle Brand.
 Diversified product range,
 Extensive distribution network
 Low and mid pricerange
 Catering to mass,
 Better understanding of consumer psyche

Weakness

67
  Dependence on retailers & grocery Stores for displaying diversified
Parle Products shelf, induce impulsive buy.

Opportunities

 Estimated annual growth of 20%

 Low per capita consumption,
 Changing consumer preference.
 Increasing demand for sugar free,
 Diet biscuit

Threats

 Hike in cost of production due to hike in raw material cost.

 Increase distribution cost.
 Local bakery product.
 Entry of various new entrant.

BCG MATRIX

68
The Boston consulting Group's portfolio matrix allows A firm to visually
display information about each of its. The BCG matrix has as its axes the
market growth rate (Broken into high and low growth) and the relative
market share as compared to the largest competitors (high and low
relative market share). The BCG matrix method is based on product life
cycle theory that determine the product portfolio of a unit which contains
both high growth product & low growth product having 2 Dimensions:
Market share & Market growth.

CG MATRIX CONSISTS OF 4 CATEGORIES:

fig.19

1. STARS:

(High growth & High market share)

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Stars are market leaders and growing fast. Stars have large reported
profits but require a lot ofcash to finance the rapid growth. As per the
company's survey, Parle G is touching the peekof success & therefore
comes under the STAR category thereby the Co. can invest a largesumfor
its upliftment

2. CASH COWS

(Low growth, High market share)

A cash cow usually generates more cash than is required to maintain its
market share. It is inlow-growth market but has a dominant market share.
Profits & cash generation should behigh due to its Low growth, the
investment needed to be Low to keep Profits High

The products like krackjack, parle Marie, hide & seek comes under this
category.

3. QUESTION MARK:

(High growth, Low Market share)

It has worst cash characteristics because of High demands & Low returns
due to Low market share makes the Co. to sell off & deliver cash.Products
like CHOX, NIMKIN KREAMS

GOLD. PARLE 20-20. MONACO JEERA comes under this.

4. DOGS:

(Low growth, Low market share)

The products like SIXER,JEFFS, MUST BITES,MUST STIX &MUST

CHIPS Conclude with DOGS as they need to be Divested because they
are doing no good for the Co. & have remained as an liability

70
CONCLUSION

71
 CONCLUSION

This case study of Parle talks about how successful the brand is. The
consumers have immense trust in the brand therefore it is one of the leading
brands of India. Instead of selling the same old products, the brand should
introduce new products and variants in the market. The company is mainly
dependent on one goodwill revenue generated from the Parle-G biscuit. The
popularity of Parle products has remained unchanged for many years.

Recommendation
PPL. is a large scale unit having very wide market in India and other foreign countries like
Geneva, Paris, Brussels, Amsterdam, London, Lisburn. Athens the Marcelina. Is the first
company who has started manufacturing biscuits and confectioneries Parle should start Lie
selling of its products not only in the above-mentioned countries, but also all over the world.

72
BIBILIOGRAPHY

73
BIBILIOGRAPHY

BOOKS
Marketing management- Philip Kotlar
Element of marketing management-Pradeep Kumar
Research methodology- C.R. kothari
Public Relation- Dewakar Sharma

REFERENCES
 www.wikipedia.com,as on 14™ march 2015
 www.businessdictionary.com. as on 28t march 2015
 www.parleproducts.com. as on 31* march 2015
 www.parleproducts.comas on 154 march 2015
 Fayol, H. (1949). General and Industrial Management. (C. Stors,
Trans.). London: Sir Isaac
 Pitman & Sons LTD. (Original work published 1918)
 Gulick I. H. (1936). Notes on the Theory of Organization. I. Gulick & L.
Urwick (Eds.).
 Papers on the Science of Administration (pp. 3-35). New York: Institute
of Public Administration
 Henry. N- (197$). Paradigms of Public Administration Public
Administration Review 35
 (4). pp. 376-386

74
  Martin. D. W. (1987). Deja Vu: French Antecedents of American Public
Administration.
 Public Administration Review 47(4). pp. 297-303

Fayol, H. (1949). General

and Industrial Management.
(C. Storrs, Trans.). London:
Sir Isaac
Pitman & Sons, LTD.
(Original work published
1918

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