Parle G Report Transcript
HISTORY 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. The company knew that it wouldn’t be an easy task, but they decided to take the brave step. A small factory was set up in the suburbs of Mumbai, to manufacture sweets and toffees. A decade later it was upgraded to manufacture biscuits as well. Since then, the Parle name has grown in all directions, won international fame and has been sweetening people's lives all over India and abroad.Apart from the factories in Mumbai and Bangalore Parle also have factories in Bahadurgarh in Haryana and Neemrana in Rajasthan, which are the largest biscuit and confectionery plants in the country. Additionally,
Parle Products also has 14 manufacturing units for biscuits and 5 manufacturing units for confectioneries, on contract. Parle Products with its wide platter of offering of biscuits and sweets like Parle-G, Krackjack, Monaco, Melody, Mango bite and many others since 1929 is also actively engaged to change & uplift the social face of India. As a part of Corporate Social Responsibility Policy Parle is keenly involved in the overall development of younger generation with focused endeavor to built New Face of India and spread happiness & joy all over. Parle Centre of Excellence as an institution is dedicated to enrich the lives of people through conducting various cultural programs across all region to facilitate the all round development of the children. Every year, Parle organises Saraswati Vandana in the state of West Bengal during the festival of Saraswati Puja, inviting schools from all across the state to participate. The event is one of much fanfare and celebration, keeping alive the culture and traditions of ages. Our involvement in cultural activities has seen the inception of “Golu Galata” in Tamil Nadu, held during Navratri.
Its gives a platform to all the members of a household to showcase their creativity and being judged by immanent personalities. Thousands of families participate and celebrate the occasion on a grand scale. These events give us a chance to interact with children on a one-to-one basis, and promote our belief of fun and health for the whole family. 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 the remotest villages of India, the company has definitely come a very long way since its inception. 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. While to consumers it's a beacon of faith and trust, competitors look upon Parle as an example of marketing brilliance. 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. While to consumers it's a beacon of faith and trust, competitors look upon Parle as an example of marketing brilliance. PRODUCTS For the second, Parle Products Private Ltd has withdrawn the variants of its chocolate-chip cookie brand, Hide & Seek. Having extended the Hide & Seek franchise early last year to two new flavours - butter and cashew badaam -
the biscuit major has now restricted it to chocolate-chip cookie. It has decided to bring them under the Parle franchise and re-named the same as Parle Cookies. The brand is currently being test marketed in the south. Explaining the rationale behind withdrawing the variants, Mr Mayank Shah, Product Manager, Parle Products Private Ltd, said: "Hide & Seek has a strong association with chocolate. It has always been accepted as a chocolate chip cookie brand and people were not ready to accept the butter and cashew variants. We have now de-linked the variants and re-introduced them as Parle Cookies. The products will soon be re-launched nationally." Early last year,
Parle Products had pitted its Hide & Seek variants against Britannia's Good Day Cookies at the premium end of the biscuit market. However, this was not the first time that Parle was introducing variants under its Hide & Seek brand. Pioneering the chocolate-chip cookie category with its Hide & Seek brand in 1998, Parle had subsequently extended the brand into three variants - orange, coffee and mint. However, poor offtake led the company to discontinue these products while the Hide & Seek chocolate-chip cookies continued to be successful.
Meanwhile, Parle has pegged its growth rate between 12-13 per cent this year. With no intentions of dropping prices for any of its brands, the company expects to drive further penetration for its flagship glucose brand, Parle G, along with brands such as Monaco and Krack Jack. "We still have a long way to go in biscuits. It is not availability but acceptability which is an issue with consumers," says Mr Shah. In the confectionery category, Parle Products has pegged its growth rates at 15 per cent for its brands such as Poppins, Melody and Mango Bite. "We have to maintain our prices for our confectionary brands to protect our bottom line since even with a 50 paise increase in price the volumes go down by more than 100 per cent," says Mr Shah. Get your biscuit goodies: Grab your sweets:
Parle - G Melody Krackjack Mango Bite Krackjack Crispy Creams Kaccha Mango Bite Monaco Poppins Kreams Kismi Toffee Hide and Seek Kismi Gold Hide & Seek Milano Orange Candy Digestive Marie XHale Parle Marie Munch on snacks! Milk Shakti Musst Bites Mayfair Cookies Monaco Bites Cheeslings Nimkin Sixer PRODUCT QUALITY Hygiene is the precursor to every process at Parle. From husking the wheat and melting the sugar to delivering the final products to the supermarkets and store shelves nationwide, care is taken at every step to ensure the best product of long-lasting freshness. Every batch of biscuits and confectioneries are thoroughly checked by expert staff, using the most modern equipment hence ensuring the same 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 in Haryana and Neemrana in 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 Products also has 14 manufacturing units for biscuits and 5 manufacturing units for confectioneries, on contract. EXPORT EXPORT _ IMPORT Parle Products Pvt. Ltd. Is a US $ 450 million conglomerate started in India in 1929. We are in the business of manufacturing and marketing biscuits and confectionaries.
We have State-of-the-art machinery with automatic printing and packaging facilities. Our biscuit baking oven is the largest of its type in Asia. Over the decades the efforts of our Research & Development wing have made the repertoire of our products grow manifold. In biscuits we have Glucose, Milk, sweet and salted cream, wafer crème, cumin seed and cheese categories. In confectionery, we have a range of toffees and hard-boiled candies available in chocolate, mint, cola, and tropical fruit flavors. Some of these are double layered toffees and center filled candies packed in rolls or pillow packs, or have single or double twist wrapping. Almost all of our products are market leaders in their category and as recognition of their quality, have won Gold, Silver and Bronze Monde Selection medals since 1971. Parle enjoys a 40% share of the total biscuit market and a 15% share of the total confectionary market, in India. Benchmark Survey: B-to-B Voice of the Customer Voice of the Customer is all of the activites and processes related to gathering, understanding, and applying feedback, opinions, and perceptions of customers.
MarketingProfs and The Phelon Group conducted this survey in early 2006 of 1,240 MarketingProfs members about what they did, how often and how well they did it, and what effects the findings had on their companies. The results are clear: Voice of the Customer in B-to-B is extremely important to a vast majority of those responding, but their Voice of the Customer activities are mostly "ad hoc." Discover more insights from this survey by becoming an annual Premium member of MarketingProfs today. When you sign up for Annual Premium Membership, you can access our Benchmark Survey: B-to-B Voice of the Customer, plus all of our surveys and other benefits of Premium membership.
Unlike most surveys that only report summaries of data, MarketingProfs Benchmark Surveys give you access to the raw (aggregate) data, which makes it easy for you to interpret the data in meaningful ways for your own research. Current News Being the largest selling glucose biscuit brand has not made Parle complacent. The Mumbai-based low-profile biscuits major believes there is still scope in the category, and that it's time it built more `social' equity for its largest selling brand, Parle G. Through yet another image-building exercise, it is giving scholarships to the children of West Bengal and Tamil Nadu."Our corporate equity has been weak in these States compared to Britannia. With academics being a priority in these States, we have decided to strengthen the equity of our corporate brand in these parts," says Pravin Kulkarni, Marketing Manager, Parle Products. "Parle G is all about all-round development and we owe children a lot for having built equity for the brand all these years.
It is our way of paying them back," states Mayank Shah, Product Manager, Parle Products Pvt Ltd. At the same time, Parle also recognises the growing threat of more glucose brands entering its arena, especially domestic brands from ITC (Sunfeast) and Hindustan Lever (Modern). There was a time when the biscuit maker was threatened, when Britannia's Tiger made an entry into the glucose segment a couple of years ago. Today, in spite of bigger FMCG majors such as ITC and HLL muscling their way into the category, Parle is not exactly on shaky ground. Besides, the category is fast expanding and its growth in the sluggish FMCG industry has helped the company hold on to its dominant position. For instance, the recent aggression on the part of ITC's Sunfeast brand does not immediately bother Parle's marketers. "ITC may have a good distribution network for cigarettes but it lacks experience in servicing the general and kirana stores. But it is learning quickly, and with its deep pockets, it is a threat old players like us should watch out for," says Shah. Adds Kulkarni: "We are recognising the presence of these players and are already trying to plug in the gaps needed. For instance, there are distribution gaps in the eastern and southern markets (compared to the North and the West), and we are enhancing our distribution in these parts.'' Observes A. Sundara Rajan, Chief Executive, Market Search, a research firm: "Parle's equity extends into the heartland of India. At the same time, the company realises that if it does not do anything, its equity will get eroded. Over the years Parle has been enhancing its packaging and communication and luckily the market has also been expanding." Thus, new players have not really poached on Parle's territory and lack of penetration has helped all the players grow. Protecting the turf of its largest-selling glucose brand, Parle has also decided to restrict its line extensions to avoid diluting its equity.
While it has extended Parle G to a more premium variant (Magix) in three flavours, it has deleted the Parle G tag for its Milk Shakti brand and brought it under the generic Parle name. It has also reacted to competition when the need has so dictated. Early this year, it took on Britannia's brand of Good Day cookies. Parle Products introduced two new cookie variants under its chocolate chip cookie brand — Hide & Seek. Sporting flavours such as Butter and Cashew Badam, Hide & Seek is pitted against Britannia's existing Good Day cookies that come in similar flavours. Hide & Seek till then existed as a single chocolate chip cookie brand at the premium end of the market.
However, this is not the first time that Parle has introduced variants under its Hide & Seek brand. Pioneering the chocolate chip cookie category with its Hide & Seek brand in 1998, Parle stretched it to three variants — orange, coffee and mint. However, poor offtake led the company to discontinue the products. Claims Sundara Rajan,"For the first time, Good Day will have a challenger brand at the national level. All this time Good Day had competition in the cookie market mainly from the regional players." In fact, cookies, which generally have high butter content, are manufactured by a host of regional players (mainly the local bakeries) and the big national players will have to fight for their share in this segment from the unorganised local players. Explaining the reasons for the earlier failure of the Hide & Seek variants,
Lakshmi Goyal, Business Director, O&M, the advertising agency handing the account, says, "The chocolate variant had a broader appeal and this led to the other variants falling by the wayside." The `exotic' nature of the variants did not help acceptance in the market, and so, this time around, Parle has decided to include variants which Indian consumers are more familiar with. The variants are pegged at a slightly lower price compared to the chocolate chip cookie (Rs 12 for 75 gm). Hide & Seek Cashew Badam is priced Rs 12 for 100 gm while its Butter variant is priced at Rs 10 for 100 gm. Adds Sundara Rajan, "Chocolate is an expensive ingredient and is expected to be costlier the other variants." With the intention of launching a new campaign for Hide & Seek variants, Goyal says, "Essentially we intend keeping intact Hide & Seek's brand values based on indulgence." Meanwhile, within the biscuit category, the cookie segment is growing rapidly. Observes Sundara Rajan:
"Today there is a gradual shift upwards in terms of taste. Cookies having higher butter content are expected to be tastier." Considering the biscuits category has been growing rapidly at near 8 per cent, Parle has decided not to focus on its confectionery brands. "There is no big thrust on confectionery since the kind of volumes we do are not enough to support the advertising spends," says Kulkarni. In spite of having certain strong confectionery brands such as Poppins, Mango Bite, Melody and Kismi, Parle realises that it cannot get the margins in this category compared to its biscuits. The company wants to continue having that strong emotional connect with consumers and doing social deeds such as offering scholarships is part of its corporate social responsibility initiatives, which should keep the biscuit major on its pedestal.
Smart cookis Although Britannia has more biscuit brands under its umbrella, has more in the urban sector, it is Parle which steals the thunder. Thanks mainly to its leading brand, Parle G, it retains, almost half the market share for biscuits in India. The Glucose brand that enjoyed a monopoly in the market for decades surpassed the expectations of its makers, in popularity.
The brand recently achieved the distinction of being the highest selling Glucose biscuit in the world. Parle-G’s image as an affordable wholesome meal that could be used as a charger when low on energy as well as a tasty accompaniment with chai helped it to consolidate and retain its position as the number one biscuit brand for decades. ORG figures show Parle-G enjoys a 69 percent share in the Glucose biscuit market, pegged at close to 2.7 lakh tones a year. This is a sharp lead over closest competitor Britannia Tiger, which has a 24 percent market share. The original Glucose brand, Parle-G is on coupled with other glucose brands such as Parle-G Magix and Parle-G Milk Shakti. These brands contribute more than 50 percent to Parle Products Pvt. Ltd’s turnover. The other brand in its stable are: Monaco, Krackjack, Marie, Hide n’ Seek, Chesslings,
Jeffs, Sixer and Fun Centre. Parle biscuits are even sold abroad in markets such as the US, Australia, and the company is consolidating its position in places such as Abu Dhabi, Africa, Dubai, South, America and Sri Lanka. Lately the biscuit market has been seen buoyant growth. According to AC Nielsen Indian Retail Store Audit Data of 2003, the biscuit industry in India grew by 11.7 percent last year, the highest in the Rs. 47,800 crore FMGC sector. The biscuit market accounts for seven percent of the FMGC market sales in India.
However, Parle’s leadership position is not going to be easy. Competition is hungry for a larger share in the pie. Britannia is eyeing the Glucose brand and aims to overtake Parle’s within three years’ time. Britannia will also outsource its production and plans to invest Rs. 4 crore in the biscuit segment. It will launch a slew of products around Tiger, its leading Glucose brand. The entry of big players in the field could mean more competition for old hands in the game. Last year, Hindustan Lever Ltd (HLL) entered the market with its Kissan Greedy Biskits in three flavours. It also tried to re-launch modern as a Glucose brand. ITC’s food arm entered the market with its Sunfeast range of biscuits with offerings in Glucose,
Marie and cream segments. It wants to complete keenly with Parle and Britannia. A big threat to legitimate biscuit makers comes from the duplicate market. Counterfeit biscuits are not only available cheap but they dent the brand equity of legitimate brands. Besides smaller players are also entering the fray. According to the union food processing ministry the production of biscuits in the organized and unorganized sectors is estimated at about 11 lakh tonnes. Only 35 percent of this is made by the organized sector. Recent strides by such small players as Surya Foods, which makes Priya Gold biscuits, are also unnerving existing players.
They could prove to be surprise future leaders. Hide n’ Seek’ comes from the house of Parle. What distracts me are the chocolate chips hidden in the biscuits. Hide n’ Seek are square shaped biscuits with diagonal ridges and small grooves filled with chocolate chips. To ads to this chocolate is also blended well with the biscuit preserving the crispiness of the biscuits at the same time. To be very honest, these chocolate chips are the ones I love these biscuits for. Though it cannot win my love for the yummy Bourbons, it still stands a third in runnerup as compared to the classic taste of the yummy ‘Bourbon’ & ‘Pure Magic’. Now where these two win over Hide n’ Seek. Simple, these contain a little bit of more chocolate than Hide n’ Seek. But Parle‘s Hide n’ Seek ha a different game to play. Here’s the classic cream from traditional cream biscuits is replaced by solid chocolate chips. Thus the work of two biscuits to press the chocolate cream in between is done by a single piece of biscuit, thus giving the quantity of biscuits in a pack some more room for advantage over the other two. Core Values An in-depth understanding of the Indian consumer psyche has helped Parle evolve a marketing philosophy that reflects the needs of the Indian masses. With products designed keeping both health and taste in mind,
Parle appeals to both health conscious mothers and fun loving kids. The great tradition of taste and nutrition is consistent in every pack on the store shelves, even today. The value-for-money positioning allows people from all classes and age groups to enjoy Parle products to the fullest. Awards Parle products have been shining with the golds and silvers consistently at the Monde Selection ever since they were first entered in 1971. Monde Selection is an international institute for assessing the quality of foods and is currently the oldest and most representative organization in the field of selecting quality foods worldwide. Biscuits Parle biscuits are linked with factors of power and wisdom providing nutrition and strength. Parle biscuits are indeed much more than a tea- time snack, they are considered by many to be an important part of their daily food. Parle can treat you with a basket of biscuits which are not only satisfying but are also of good and reliable quality. Parle biscuits cater to all tastes from kids to senior citizens.
They have found their way into the Indian hearts and homes. Get Your Biscuits: Parle - G Hide & Seek Milano Krackjack Digestive Marie Krackjack Crispy Creams Parle Marie Monaco Milk Shakti Kreams Mayfair Cookies Hide and Seek Nimkin Dedicated to enriching the lives of people across India, the Parle Centre of Excellence has been keenly involved with promoting programmes to facilitate the all-round development of children. Parle Saraswati Vandana, one of its initiatives, is an inter-school contest based on the Saraswati Puja celebrations. It gives the children an opportunity to exhibit their creative skills and makes the celebrations even more special in the process. Started in the year 2002 in Kolkatta, it has seen a tremendous increase in the number of schools participating each year, with entries coming from schools of West Bengal. Every year a grand programme is organized by Parle in Kolkotta to felicitate the winners. Here eminent personalities from the field of literature, education, art, films, media and politics grace the occasion. Performances by popular artistes make it a night to remember for every invitee present there. The awards and adulation makes it unforgettable for the winners. Competitors Anaalysis PARLE KRACKJACK - AN ANALYSIS AND FIRST HAND COMMENTARY Like the legendary quote by Samuel Johnson, which stated , He who does not mind his belly will hardly will hardly mind anything else. , I am a person minding my belly a lot and it definitely shows. I am a non-stop eater when it comes to snacks, as I am a major snacks fan. I devour a lot of them. One may wonder if I am a glutton, when I eat snacks.
For once, they are right. I am a glutton when it comes to snacks. Some snacks are so tasty and addictive that you remember the taste when you think of the name itself. One such item is ’’krackjack’’. The name brings back memories of childhood and the carefree days. <