PARLE

Anup Mulay (4)

Hazel Sequeira (20)
Kenneth Mathews (24)
Ravesh George (40)
Tressen Dsouza (121)
 ABOUT THE COMPANY
• In 1929 a small company by the name of Parle products emerged in
British dominated India.
• The intent was to spread joy and cheer to children and adults alike,
all over the country with its sweets and candies.
• A small factory was set up in the suburbs of Mumbai to
manufacture sweets and toffees.
• Apart from the factories in Mumbai and Bangalore Parle also has
factories in Bahadurgarh in Haryana and Neemrana in Rajasthan,
which are the largest biscuit and confectionery plants in the
country.
• Parle Products also has 7 manufacturing units and 51
manufacturing units on contract.
 ABOUT THE COMPANY
• 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.
• Many of the Parle products - biscuits or confectioneries, are market
leaders in their category and have won acclaim at the Monde
Selection, since 1971.
• With a 40% share of the total biscuit market and a 15% share of the
total confectionary market in India , Parle has grown to become a
multi-million dollar company.
 QUESTIONAIRE
• Parle-G, Cheeselings and Mango bite.
• Constant leadership for a long time since inception.
• Importance is given to Parle-G, Monaco, Krackjack,
Mango bite, Milano and Hide n Seek.
• Ads done by O&M, Gray World and Everest Brand
Solutions.
• Marketing research firms are IMRC and Neilson.
• Britannia and Sunfeast would be the major
competitors.
• Parle-G is the flagship brand also older brands have
been more successful than the new ones.
 PORTER’S FIVE FORCE ANALYSIS
THREAT OF SUBSTITUTES
• High
Substitutes are:
– Traditional Indian snacks
– Package snacks
– Bakery Products
THREAT OF NEW ENTRANTS

• The market is already filled with many players and

the threat from a new player does not look on the
cards.
• They will have to incur excess costs in order to
advertise and also to set up its distribution network.
• Parle already has a brand name and a foothold in the
market and this would be its major advantage over
any new entrant.
BARGAINING POWER OF SUPPLIERS
• Since the ingredients are Basic commodities like
wheat, sugar etc and also the increasing prices of
these commodities reduce the bargaining power of
suppliers
 
BARGAINING POWER OF CUSTOMERS
• The bargaining power of buyers is high.
• This is due to availability of many biscuits from low to
moderate prices. Also many players in the market
coming up with the similar or new products.
• Availability of biscuits from non- organized sector
COMPETITIVE RIVALRY WITHIN THE INDUSTRY
• Competitive Rivalry is high within the industry as the
existing players have a foothold in the market and
are trying to increase their market share.
 SWOT ANALYSIS

STRENGTHS

•Strong Brand name of Parle

•Diversified Product range- biscuits,
•Confectioneries and snacks
•Extensive Distribution Network
•Low & Mid price range catering to mass market
•Better understanding of the consumer psyche
 OPPORTUNITY

• Estimated annual growth of 20%

• Food industry is growing in leaps and bounds
• Low per capita consumption of biscuits
• Increase demand for sugar free biscuits
• Penetration levels in rural markets are not as high as
those in urban markets.
• More markets can be explored in the southern and
eastern India which can lead to growth in southern
and Eastern market
 WEAKNESS

• Dependence on retailers & grocery Stores for

displaying diversified Parle products on shelf, induce
impulsive buy

• Dependence on Parle G (Glucose biscuit) under Parle

umbrella
 THREATS

• Increase in production cost due to increase in cost of

raw materials and transportation.

• Entry of ITC, a well established player into biscuit

industry.
 TOWS
S-O Strategy:
Strengths/ O1 O2 O3 O4 O5 O6
Opportuni
ties

S1 0 0 0 0 + 0
S2 + 0 + + 0 0
S3 0 0 0 + + 0
S4 0 0 0 0 0 0
S5 0 0 0 0 0 0
• The growth in the food industry can be captured by
the diversified products range of Parle. (S2, O1)
• Since Parle has a strong brand name and a strong
distribution network, it would help them to increase
penetration in southern and Eastern India (S1, S3, 05)
• Since they have strong distribution channel they can
explore new markets and build on existing markets
especially the rural market where the penetration
levels are only around 50-65%. (S3, O4)
• Since per capita consumption is low and there is an
increased demand for sugar free biscuits which can
be catered to by the various products of Parle. (S2,
O3, O4)
WO STRATEGY (MINI MAX STRATEGY)
Opportunities/Weakness W1 W2

O1 0 +
O2 0 +
O3 0 0
O4 + 0
O5 + 0
O6 0 0

• Heavy promotional campaigns in rural areas, Southern and Eastern India to

increase brand awareness to boost brand recall (W1, 04, 05)

• Advertise and promote Parle’s nutritious brands other than Parle G since
the per capita consumption of biscuits is low so there is scope to create
awareness about the other parle brands. (W2, O1, O2)
ST STRATEGY (STRENGHTS AND THREATS STRATEGY)

Strengths/Threats T1 T2
S1 0 0
S2 0 +
S3 0 +
S4 0 0
S5 0 0

• Entry of ITC, a well established player in to biscuit industry

can be countered by the diversified product range and
extensive distribution network. (S2, S3, T2)
WT STRATEGY (WEAKNESS AND THREATS)

Weakness/Threats T1 T2

W1 0 0

W2 0 +

• Dependence only on Parle-G biscuit would increase the

threat of a prominent brand like ITC. The company should try
and increase the sales of other brands in order to retain
their market share and be protected from new entrants.
(W2, T2)
 
 PEST ANALYSIS
POLITICAL
• The company has to pay taxes to the government. This is the normal
corporate tax which all companies have to pay..
• The company has to incur production and distribution expenses.

ECONOMICAL
• Increase in Per capita income is an advantage for Parle as they can
introduce more products and consumers will purchase more due to
increase in disposable incomes.
• India’s GDP growth is also increasing which would lead to benefits to
the company.
 
SOCIAL
• Increase in per capita consumption of consumers
• India is the 3rd largest biscuit producer
• People have a very varied lifestyle and are more willing to try
out new and different products.
• Consumers have a favourable perception of the brand parle
with parle G as their main brand.
• Parle has many CSR activities:
1. Parle center of excellence as an institution conducts cultural
programs across all regions for development of children.
2. Parle Saraswati Vandana- development activities for children
concentrating on eastern India
 
TECHNOLOGICAL
• Innovation and differentiation is the main thing which
companies focus on in order to gain an advantage in the
market. So the company can focus on Innovation.
 VALUE CHAIN ANLAYSIS
PRIMARY ACTIVITIES

• INBOUND LOGISTICS: The company has to Import chocolate

chips, glucose chips and other raw materials for the
manufacture of their various brands of snacks, biscuits and
confectioneries. Sugar is ordered from Dhampur Sugar Mills in
Delhi which is the biggest sugar supplier in India for sugars.
Wheat flour is ordered from Palghar Flour firm. Glucose Syrup
is manufactured in the Parle Umbargaon franchisee Plant.

• OPERATION: The raw material then goes through the stages

of Baking, Melting, and various Assembly lines for Tasting,
Packaging etc.

• OUTBOUND LOGISTICS: The end products Biscuits, cookies

etc are then transported after packing to distributors. Printing
on packaging is done by filtrate packers.
• MARKETING AND SALES: The marketing for Parle is carried
out by Mudra. They take care of the communications.
• SALES: Kapil (Kandivali) and Joshi(Thane) Transporters and
Distributors are the transporters and distributors of Parle
products in Maharashtra. They transport the products to the
various retailers.
• SERVICES: Commissions and trade discounts are offered to
distributors and retailers.
• TECHNOLOGY MANAGEMENT: Printing Technology is used for
printing of an collateral and also on the packaging.
• INFRASTRUCTURE: Mould oven is needed as part of the
baking process and is required as infrastructure by the
company. Regular maintenance is also required.
SUPPORT ACTIVITIES
• PROCUREMENT is a supporting activity. This is done mainly
with the consent of the finance department and as per
requirements. It can be procurement of raw materials as well
as procurement of machinery.
• HRM: Performance appraisal is conducted through 360
degree feedback approach.
 FINDINGS
• On the basis of PEST Analysis we have found out that the
Research & Development of Parle is weak.
• On the basis of the questionnaire we have found out that Grey
India and O&M handles all the marketing activities of Parle
including the communications and advertising. Also TV
Advertising is the major part of promotion using Amir Khan and
Hrithik Roshan as brand ambassadors. Sales promotion is done
on a lesser basis.
• Parle does not have region specific Products.
• Distribution is done through Hub and Spoke model. Kapil
(Kandivali) and Joshi (Thane) Transporters and Distributors are
the transporters and distributors of Parle products in
Maharashtra. They transport the products to the various
retailers.This is found out from the questionnaire and the value
chain analysis.
• From the SWOT analysis we found that Parle G is the flagship
brand which keep the company as no.1
 RECOMMENDATIONS
• Research & Development must be improved in order to come
up with innovative products to keep ahead of the
competition. It can be done once in five years.S
• Some of the Marketing activities should be done by the
company itself.
• Region specific products(flavors) should be developed.
• The company should reduce its dependence on Parle G and
try to develop their other existing brands.
THANK YOU