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Parle 1
Parle 1
BISCUITS
LTD
By-KOMAL
Roll no. 40
PTMBA-FIN DIV A
NMIMS
Introduction-Parle
• India's largest manufacturer of biscuits
and confectionery, for almost 80 years.
- Nutritious Products
Social
• ↑ in per capita
consumption Technological
• India is 3rd largest • Innovation
producer of biscuit
• Age • R&D
• Lifestyle
• Perception
Porter's Five Forces Analysis In
Threat from
-Capital intensive du
New Entrants AT str
manufacturing, TR O y
Low AC utl
advertising and TI ook
distribution system. VE :
!
Opportunity
1. Estimated annual growth of 20%
2. The 220 B$ food industry is Threats
expected to grow to 300 B$ by 2015. 1. Hike in cost of production due to
3. Low Per capital consumption of Hike in prices of raw materials and
Biscuits (1.8 KG) as against 5.5 KG in increase in transportation plus
South East Asian countries. distribution cost due to high wedges
4. Increasing demand for Sugar free and oil prices
cream crackers & diet biscuits 2. Entry of ITC (having very good
5. Current penetration levels distribution channels) into biscuit
Urban Market : 75% to 85% industry
Rural Market : 50% to 65%
6. Growth in southern and east India
SWOT Recommendations
S–O W–O
1. Heavy promotional campaigns in
1. Increase penetration in southern
rural areas , southern & eastern
India and eastern India
India to increase brand awareness
2. Expand in rural market
to boost ‘top of the mind recall’
3. Cater to new diet conscious segment
sales.
4. Advertising of Parle products using
2. Advertise and promote Parle’s
celebrities such as sport person
nutritious brands other than Parle-
(Cricketer – very popular game in
G in educated urban market
India)
looking for healthy product
W–T
S–T 1. Capture more market share of
1. Shift towards products (SKUs) Other biscuit segments using
That are highly appreciated in Distribution channels by associating
urban market (heath conscious Individual products with a
promotion.
mothers) and price sensitive
Example – the stylish cream biscuit
rural market rather than just is promoted by bollywood star,
increasing no of SKUs Marie products are branded as
family snacks product etc.
Pricing Strategy of Parle
Golden question…….
Golden question…….
L
O
Economy Penetration
w
P
R
I
C
E
H Skimming Premium
I
G
H
• Investment in R & D