PARLE

a. Introduction to the firm and product ranges

a. Parle Products was founded in 1929 in British India.
b. Owned by the Chauhan family of Vile Parle, Mumbai
c. The original Parle Company was split into three separate companies
owned by the different factions of the original Chauhan family.

Parleoducts

ParleAgo aPrleBis

b. Parle Products
History: - In 1929 a small company by the name of Parle products
emerged in British dominated India.
The goal 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
confectionery products.
First brand that they introduced was Parle Glucose and Parle
Monaco.
Mission: - Concentrate on the consumers taste and preferences, The
Parle brand has grown from strength to strength
ever since its inception.
Vision: - "Hindustan Ki Taakat."For over 80 years, Parle G has been a
part of the lives of every Indian. From the snow capped mountains in
the north to the sultry towns in the south, from frenetic cities to laid
back villages, Parle G has nourished strengthened and delighted
millions.
Market Share:- 38% of total biscuit market.
c. Parle Latest News
a. 13-September-2014:- Parle Products launches the new
range of 'Simply Good' Digestive Cookies.
i. 3 Varieties: - Classic Digestive, Honey & Oats and Apple &
Cinnamon.

ii. Biscuits are high in nutritional value consisting of fibres , oats,

pure honey and multi grains.
iii. Brand message 'Unveiling Simple Goodness'.
iv. Two packs sizes, the 250 gms at Rs. 50/- and the 100 gms at Rs.
20/-.
b. 01-October-2014:- Parle goes for expansion of premium segment
c. 05-October-2014:- Parle Products launches the 'Litter Free' campaign at
the biggest Dandiya Event, this Navratri!
d. Industry Analysis
a. Biscuit industry in India in the organized sector produces around 60%
of the total production, The balance 40% being contributed by the
unorganized bakery.
b. The Major brands are Britania, Parle, ITC Bakeman, Priya Gold, Elite,
Cremica, Dukes and Horlics.
c. Biscuit Industry contribute Rs 8000 crore to FMCG industry.
d. Maharastra & West Bengal hold maximum amount of business
consumption.
e. Category wise category
i. Glucose 44%
ii. Marie 13%
iii. Cream 10%
iv. Crackers 13%
v. Milk 12%
vi. Others 8%.
Sn
o
1
2
3
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Category

Parle Product

Glucose
Marie
Cream
Crackers
Milk
Digestive
Others

Parle G
Parle Marie
Kreams/Kreams Gold
Krack & Jack
Milk Shakti
Actfit

Porters Five Force Model

Threat of
Substitute
Competitive Rivalry
Within industry

Bargaining Power
of Suppliers

Threat of New
Entrant

Bargaining Power
of Customer

High
Competition
among
existing
players.

Suppli
ers:-

Cu
sto
me
r

:-HIGH

Substi
tute

:-LOW

New
Entrant
s

e. Competitor Analysis
a. Major Market share holders Organized Sector

Market Share (By Volume)

Rest; 6%
ITC; 10%

Parley; 38%

Priya Gold; 20%

Britania; 26%

i. Parley, in fact, is the market leader by volume, but still trails

Britania in terms of value.
ii. Mover the last couple of years, Britania which was once
considered a generic name of biscuit has seen its share of the Rs
4500 Crore per annum market fall from 48% to 40% in terms of
Revenue.
iii. Smaller players like Bisk Farm, Priya Gold, Anmol, Marico and
Duke space to carve out regional Satrapies all over the country.
iv. In Year 2003 ITC entered the market with its Sunfeast brand and
grabbed 8-10% market share.
v. Gulucose Biscuit accounts for 57% of the Indian biscuit market
and PARLE G commands a 50% share of this segment.
vi. Parle sells 4,000 tones per annum, is the World largest by
tonnage.
b. Strategic mapping of Parle and competitors on following ground:i. Price and Distribution

HIGH

marico
PRICE

sunfeast
priyagold

britania

parle
LOW
LOW

HIGH

DISTIBUTION

ii. Nutritional Content and brand

HIGH

parle

NUTRITIONAL CONTENT

britania
sunfeast
priyagold

marico

LOW
LOW

BRAND

HIGH

iii. Innovation and Technology

parle

HIGH

britania

INNOVATION

priyagold

sunfeast

marico

iv. Pakaging
LOW
LOW

HIGH

TECHNOLOGY

parle
sunfeast

priyagold

britania
marico

LOW

f.

PAKAGING

HIGH

Segmentation and Target strategy of Parle

a. Segmentation Targeting
i. If we divide the whole market on basis of their preferences foe sweetness and
saltiness in the biscuits then the possible
outcome would be
that the preferences are clustered near some
tastes i.e. the
consumers would not like to have something
really vague like
50%salty, 25%sweet and25%creamy.That is why
the
preferences are clustered and not diffused
wherein the preferences have to be very extreme
and
vague.
ii. Parle as a company makes use of this clustered
preferences and manufactures biscuits for each
and every cluster. For e.g. Monaco for entirely salty biscuits and its latest product
Krack jack is for sweet and salty taste.
b. Target Market Strategy of Parle

i. Parle as a whole inculcates Selective Market Specialization

strategy.
1. Product

LOW

TECHNOLOGY

HIGH

a. P1 Parle -G
b. P2 Hide & Seek
c. P3 Other
2. Market Segment
a. M1 High income
b. M2 Mid income
c. M3 Low income