Parle g Project

About the Company A cream colored yellow stripped wrapper with a cute baby photo containing 10 – 12 biscuits with the company’s name printed in Red and you know these are Parle G biscuits. Times changed, variety of biscuits did come and go but nothing has changed with these biscuits. Yes, the size of their packing has definitely changed but for the consumers good as these are money savers pack. The Parle name conjures up fond memories across the length and breadth of the country. After all, since 1929, the people of India have been growing up on Parle biscuits & sweets. Initially a small factory was set up in the suburbs of Mumbai city, to manufacture sweets and toffees. The year was 1929 and the market was dominated by famous international brands that were imported freely. 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 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 on to become leading names for great taste and quality. For around 75 years, Parle have been manufacturing quality biscuits and confectionery products. Over the years Parle has grown to become a multi milliondollar company with many of the products as market leaders in their category. The recent introduction of Hide & Seek chocolate chip biscuits is a product of innovation and caters to a new taste, being India’s first ever chocolate-chip biscuits.

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All Parle products are manufactured under most hygienic conditions. Great care is exercised in the selection and quality control of raw material and standards ensured at every stage of the manufacturing process. Parle Products has 4 manufacturing units for biscuits and confectionaries at Mumbai, Haryana, Rajasthan and Karnataka. It also has 14 manufacturing units for biscuits & 5 manufacturing units for confectioneries, on contract. All these factories are located at strategic locations, so as to ensure a constant output & easy distribution. Today, Parle enjoys a 40% share of the total biscuit market and a 15% share of the total confectionary market, in India. The marketing mix of Parle for this project has been studied from the point of view of Parle biscuits; mainly Parle-G and Parle hide & seek.

PARLE G - THE EVOLUTION !!!

Parle-G has been a strong household name across India. The great taste, high nutrition, and the international quality, makes Parle-G a winner. No wonder, it's the undisputed leader in the biscuit category for decades. Parle-G is consumed by people of all ages, from the rich to the poor, living in cities & in villages. While some have it for breakfast, for others it is a complete wholesome meal. For some it's the best accompaniment for chai, while for some it's a way of getting charged whenever they are low on energy. Because of this, Parle-G is the world's largest selling brand of biscuits. Launched in the year 1939, it was one of the first brands of Parle Products. It was called Parle Glucose Biscuits mainly to cue that it was a glucose biscuit. It was manufactured at the Mumbai factory, Vile Parle and sold in units of half and quarter pound packs. 2

The incredible demand led Parle to introduce the brand in special branded packs and in larger festive tin packs. By the year 1949, Parle Glucose biscuits were available not just in Mumbai but also across the state. It was also sold in parts of North India. The early 50s produced over 150 tones of biscuits produced in the Mumbai factory. Looking at the success of Parle-G, a lot of other me-too brands were introduced in the market. And these brands had names that were similar to Parle Glucose Biscuits so that if not by anything else, the consumer would err in picking the brand. This forced Parle to change the name from Parle Glucose Biscuits to Parle-G. Originally packed in the wax paper pack, today it is available in a contemporary, premium BOPP pack with attractive side fins. The new airtight pack helps to keep the biscuits fresh and tastier for a longer period. Parle-G was the only biscuit brand that was always in short supply. It was heading towards becoming an all-time great brand of biscuit. 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, 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, the areas 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 life like honesty, sharing and caring. 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, which was supported by POS and press communication. The children just could not get enough of Parle-G and Shaktimaan. In the year 2002, it was decided to bring the brand closer to the child 3

who is a major consumer. A national level promo - `Parle-G Mera Sapna Sach Hoga' 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 fulfilled. Dreams that were fulfilled ranged from trips to Disneyland at Paris & Singapore; free ride on a chartered plane; 20 scholarships worth Rs 50,000; a special cricket coaching etc. The year 2002 will go 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 is not just new to the audiences but one that involves a completely new way of execution that is loved by children all over the world – Animation To make the brand much more interesting and exciting with children, it was decided to launch a premium version of Parle-G called Parle-G Magix in the year 2002. Parle-G Magix is available in two exciting tastes - ‘Cocoh’ and ‘Cashew’. The year 2002 also witnessed the launch of Parle-G Milk Shakti, which has the nourishing combination of milk and honey, especially launched for the southern market. PARLE GOLU GALATA CONTEST – 2007 India's favourite biscuits & confectionery maker turns India's corporate partner. As part of its corporate social responsibility to give back to the very country that built it, Parle Products introduced the now famed Golu Galata contest in 2005. First a little bit about the practice. An old tradition from the households of Tamil Nadu, the kolu is the essence of Navaratri celebrations. It is also followed in many Asian countries, especially Sri Lanka and Japan. The Japanese version is known as Hina Masturi. In Tamil Nadu, on the Amavasya day, women first finish the ritual 4

'tarpana' - keep the Kalash filled with rice, toor dal haldi sticks, betel leaves and nuts or mango leaves with a coconut on it. The right muhurtam is chosen before placing the Kalash and the dolls for worship, with which the Kollu festival begins. The dolls are given to the girl from her parents during her marriage and are called "Marapachi Bommai" (wooden dolls). From this day she starts collecting dolls and observes the ceremony annually. The household women also decorate clay dolls (gods and goddesses painted in bright colours) and display them on the specially prepared kolupadis or steps made of wood and covered with a thick cloth. The number of steps was always an odd number - three, five, seven or nine. The more the steps, the merrier! Often a variety of dolls are displayed artistically and arranged beautifully on the steps. A well decorated tableau, often this display is enjoyed by friends and relatives. However a recent study found that due to hectic schedules, this tradition is slowly getting restricted to a select few households. Thus, to revive a grand tradition, Parle created a novel promotion called Parle Golu Galata contest. Golu means Doll & Galata means Dhammal. In 2005, 5000 households participated and in 2006, it was 10,000 households who participated. This year we hope to see over 10,000 households, across 7 cities join in this joyous occasion. At the end of the celebration, the winners will be felicitated at a gala prize distribution ceremony.

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THE MARKETING STRENGTH The extensive distribution network, built over the years, is a 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. 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 endeavor 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.

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Marketing Mix of Parle Products Limited Product strategy Product Levels 1) Core benefit- the core benefit of biscuits is to satisfy hunger of the consumer 2) Basic product- in the second level, the basic product is biscuits. 3) Expected product- the consumers expect the product to have a good taste and also give nutrition. 4) Augmented product- parle biscuits increase a person’s energy levels. This is not always expected by the consumers and hence exceeds customer’s expectations. 5) 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 1) Based on tangibility- Parle biscuits are tangible, i.e. one can see and touch them. 2) Based on functional life- Parle biscuits are consumables since biscuits form a part of food and have a short life. 3) Based on price and quality- most of Parle biscuits such as Parle-G, Monaco, Krackjack are mass products but a few Parle biscuits such as Parle hide and seek and Milano are premium or prestige products. 4) Based on utility- Parle biscuits are convenience goods. They are staples since they are bought by consumers regularly. Also they are partly impulse products. Product mix •

Width- Parle produces biscuits, snacks and confectionaries. So the width is 3.

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Length- the length of Parle products is as below:

Biscuits

Snacks

Confectionaries Parle-G

Jeffs

Melody

Milk Shakti

Sixer

Poppins

Magix- choco and cashew

Musst bytes-tangy tomato

Mango byte 7

Krackjack

and garden green

Kismi toffee

bar Monaco

Rol-a-cola

Marie Choice

Orange

candy Hide and seek

Chox

Fun centre- chocolate, butterscotch, strawberry, milk cream Nimkin Parle cream- mango, orange, elaichi, pineapple, bourbon Digestive Marie Krackjack cream Mayfair •

Depth -

For Parle-G:

Parle-G comes in 8 different sizes: 25gms, 44gms, 93.5gms, 231gms, 340.5gms, 462gms, 577.5gms and 1000gms. Hence the depth of parle-G is 8. - For variants of Parle-G: Parle-G magix has 2 flavors- choco and cashew and comes only in one size i.e. 75gms. Hence its depth is 2. Parle milk shakti has no favors and comes in just one size i.e. 150gms. So the depth of Parle-G is 8+2+1= 11 -

For Parle hide & seek and Milano:

Parle hide & seek comes in 2 sizes- 25gms and 100gms. Hence its depth is 2. Parle hide & seek Milano has no flavors and comes only in one size i.e. 100gms. So the depth of Parle hide & seek is 2+1= 3 •

Consistency

The product consistency generally depends on 3 parameters 1. Production 2. Distribution 8

3. Consumer end-use 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. 1st, 2nd & the 3rd level of the distribution channels. The basic end use of all parle products remains the same – eating it simply to satisfy hunger. Products like parle-g may also be consumed for the intake of high glucose levels for immediate strength & energy. Brand The Parle Biscuit brands, such as, Parle-G, Monaco and Krackjack enjoy a strong imagery and appeal amongst consumers. Be it a big city or a remote village of India, the Parle name symbolizes quality, health and great taste. And yet, this reputation has been built, by constantly innovating and catering to new tastes. This can be seen by the success of new brands, such as, Hide & Seek and Hide & Seek Milano. •

Brand name strategy

Parle follows company brand name strategy, since all its products are named using the company’s name as a prefix such as Parle-G, Parle- Monaco, Parle hide&seek, Parle digestive Marie, etc.

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Brand strategy decision:

Product category

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Old

New

Old

Line Extension

Brand extension

Brand name

New

Multi- brand

New brand

Parle follows both line extension and brand extension for its products. For a product like Parle-G it followed line extension with the introduction of Parle-G milk Shakti and Parle-G magix which has 2 flavors- choco and cashew. For Parle Monaco too it followed line extension when a new favor Monaco jeera was introduced. Similarly when it introduces any new product in the biscuit category, it follows line extension. Initially Parle used to produce only confectionaries. Parle followed brand extension with the introduction of products in the biscuits and snacks category. In this way, by concentrating on consumer tastes and preferences and emphasizing Research & Development, the Parle brand grows from strength to strength.

Product Life Cycle For Parle:

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Maturity Decline Growth Introductio n

Sale s

Profits

Parle as a company has reached the maturity stage in its products life cycle; since products such as parle-G, parle Monaco, parle Krackjack which form a major part of parle products’ sales have captured most of India’s market. But for its premium biscuits parle hide and seek and parle hide and seek Milano the products are in the growth and introduction stages respectively. For parle hide and seek:

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Maturity Growth Introductio n

Decline

Sale

Profits

Parle hide and seek was introduced in 1998 with favors such as mint, orange and chocolate. But it did not really succeed in capturing the consumer’s attention. So after a few years it was re launched with just one flavor i.e. chocolate flavor with new packaging. After the re-launch it has started gaining attention of its potential buyers and hence is in the growth stage of its life cycle. It has to fight for its stand in the market since it faces competition from Britannia’s good-day choco nuts. Packaging and Labeling  Packaging: The time spent by a customer for picking up a product from a retail outlet is a few seconds; 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. 12

For Parle G: Parle G was initially recognized by its iconic white and yellow stripped wax paper wrapper with the baby face on it. Many competitors have tried to sell their lower 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 its packaging. Parle-G comes in 8 different sizes: 25gms, 44gms, 93.5gms, 231gms, 340.5gms, 462gms, 577.5gms and a 1kg pack just for Rs.30 which is not usually offered by other brands. Parle Hide & Seek: It initially came out with 3 variants: Mint, Orange & Chocolate which wasn’t accepted by the masses. However, the production of Mint & orange flavors was stopped. Chocolate is the only flavor that is running successfully since it is India’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 of the 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 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.  Labeling: Consumers are becoming increasingly 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. Price Mix Pricing Strategies 13

The Parle marketing philosophy emphasizes catering to the masses. It constantly endeavors 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 its cultivated understanding of the Indian consumer psyche. The value-for-money positioning helps generate large sales volumes for the products. Parle G has adopted the Market Penetration strategy i.e. low price along with capturing of a large 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 urban presently. 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 price for 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 & seek’s 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 per packet of biscuit and not Rs.10 like that of Britannia’s cream treats. Place Mix The extensive distribution network, built over the years, is a 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.

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Channel levels: 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. 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 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. Channel dynamics: Parle has a multi-channel marketing system since it uses more than two marketing channels to reach all its customer segments. Promotion Mix The marketing mix tools used by Parle are Advertising, Sales promotion and Public relations. 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 (link for the ad: http://www.youtube.com/watch?v=5D4PBN0OzuE), 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, the areas 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 life like honesty, 15

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-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 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 Terrolene 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’ maane ’GENIUS’’. For this 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 ki takat’ ( link for the ad: http://www.youtube.com/watch?v=Kxb4bLq35mg ). 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 portraying actor 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. Sales Promotion Parle uses the Sales force promotion tool for all its employees. Every year it holds day fairs at branded venues where games and fun events are organised for the employees of Parle and their families; where Parle products are giveaway prizes. Public Relations Parle has done the following for enhancing public relations:

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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 and Shaktimaan. In the year 2002, it was decided to bring the brand closer to the child who is a major consumer. A national level promo - `Parle-G Mera Sapna Sach Hoga' 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 fulfilled. Dreams that were fulfilled ranged from trips to Disneyland at Paris & Singapore; meeting their favorite film star Hrithik Roshan; free ride on a chartered plane; 20 scholarships worth Rs 50,000; a special cricket coaching camp with the Australian cricketer - Ricky Ponting; etc. 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 Parle Golu 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.) Consumer behavior For Parle-G: In India it is a habit to have biscuits along with chai or tea - Parle G is referred to as "biskut" in rural areas - thus when asked for biskut to a shopkeeper it simply means Parle-G biscuit in rural areas. Understanding consumer behavior is tough. The study of consumer behavior includes the knowledge about the consumer, his buying motives & buying habits. 17

Keeping all this in mind, the factors influencing the buying behaviour of consumers are:

Parle-G being a consumable product is not influenced by factors like cultural factors. As shown above, social factors are further sub divided into 3 parts namely reference groups, family & social role & status. 1) Reference Group People, especially kids are always influenced by the people around them. They are influenced by friends, relatives, family members specially elder siblings, etc. so if they see anyone around them having parle-G biscuit, they too want to eat it. 2) Family In his case also, if it’s a usual habit of the family members to have pale-G with tea or coffee, the kids in the growing stage or any new member joining the family for tea will form a similar habit or the later will be offered the same biscuit. Personal Factors 18

The factors whose intensity differs from person to person are together termed as personal factors. They are as follows: 1) Age Parle-g is consumed maximum by the kids in the age group of 5-10 years i.e. the growing age group. Kids, who have formed the habit of having Parle-G in their early stages of life, continue this practice even after growing up. They continue their consumption of Parle-G even after they grow up. 2) Occupation The buying behavior of the consumer is influenced also by the occupation he or she belongs to. In case of Parle-G, the purpose for buying the product varies from a person with a high post in a M.N.C. to a poor laborer. For the executive employee, he may or may not buy the product. He may buy a more expensive or an imported biscuit brand because he can afford it. Also he may buy it only to be one of the many snacks available to him. On the other hand, a poor laborer would buy a packet of Parle-G simply to satisfy his hunger. For him, it is not matter of choice or luxury, but a necessity because it’s the easiest & the cheapest he can get. 3) Income Income of a person decides its core expenditure segment. If a laborer earns a fixed amount & if a biscuit like parle-g which for sure ensures high level glucose content & immediate energy regained, he would defiantly opt to buy a parle biscuit packet & not spend even that minimal amount of Rs.4 on anything else. But since Parle-G is a low-priced, value for money product a person’s income does not really play a role in influencing the purchase of the product. Consumers of all income groups do buy the product. Psychological Factors 1) Motivation For Parle-G the main & the basic motivation which pulls consumers towards buying it is simply hunger. This is what pulls the consumers towards the

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purchase of Parle-G. Also, since biscuits are perceived as snacks, when a consumer is drinking tea he or she is motivated to buy Parle-G at that time. 2) Perception- consumers believe Parle-G to be a good quality product which is cheap too. They also perceive it to be a great snack with tea For Parle hide & seek: Social factors 1) Reference groups- parle hide & seek is targeted at the youth. So for this product consumers are influenced by their friends and siblings. 2) Status- Parle hide & seek is a high priced product. So consumers in the higher income groups would prefer to buy the product over other brands since it would be a matter of higher status. Personal factors 1) Age- the advertisements of this product are such that people in the age group from 15 to 28 are likely to be influenced to buy this product. But at the same time, since this product has been endorsed by a celebrity (Hrithik Roshan) and since it is made of chocolate chips, children are also likely to be major consumers. 2) Occupation- Major Consumers for Parle hide & seek are students. 3) Income- since it is a high-priced product; the potential consumers for this product are high income earners. A person who is earning more is more likely to buy this product than a person who earns comparatively lower income. Psychological factor PerceptionConsumers perceive this brand as ’tasty and crispy’ ...chocolate not very sugary. It is perceived as a brand leader in this segment and some firmly believe that there is no competitor while mostly people regarded ’Britannia bourbon’ as its main competitor ; very few consumers know that ’good day- choco nuts’ is its competitor..

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Market Segmentation  Level of market segmentation Parle-G is consumed by people of all ages, from the rich to the poor, living in cities & in villages. While some have it for breakfast, for others it is a complete wholesome meal. For some it's the best accompaniment for tea, while for some it's a way of getting charged whenever they are low on energy. Parle company practices mass marketing for Parle- G which appeals to masses. It is a product liked by everyone and does not cater only to a specific group or part of the whole market. Thus it is mass production, mass distribution and mass promotion of Parle- G for all buyers. However, Parle follows Niche marketing for Hide & Seek. It is a premium product since it is priced at a high price and also with its chocolate flavor it is accepted by most chocolate lovers. When hide & seek was first launched, there were no other biscuits of its kind in the market.  market segmentation Geographic segmentation: Parle-G is consumed by people staying in urban, semi urban and rural areas. Hide & Seek however, being a premium product having a high price is consumed only in urban and semi urban areas Demographic segmentation: •

Age-Hide n Seek is mainly for youth and children. Parle-G is however consumed by everyone.

•

Income-Hide n Seek being highly priced is consumed only by high income group. Whereas Parle-G is consumed by all income groups, but is mostly consumed by the lower and middle income groups.

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•

Social class-Hide & Seek is meant for middle class and rich class families. However one can also say that Parle-G is consumed only by lower n middle class consumers because rich class can afford more expensive biscuits.

Behavioral segmentation: •

Benefit sought-The benefit sought in Parle-G is mainly replenishing energy and for Hide & Seek it is good taste.

 Pattern of market segmentation Preference: Clustered 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 and 25%creamy.That is why the preferences are clustered and not diffused wherein the preferences have to be very extreme and vague. 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 Krackjack-cream is for sweet and salty taste.  Target market strategies M1

M2

P1 P2 22 P3

PARLE Company as a whole inculcates SELECTIVE MARKET SPECIALIZATION strategy. In the above diagram we can say blue colour represents the extent of Parle-G i.e. it is 1 product for all the 3 markets and the green colour is for Hide & Seek where it is a product only for 1 market and the orange is for Krackjack biscuits where the product is targeted for 2 markets.  Positioning strategy Parle-G is positioned in the minds of people as a value for price product and also as a low-priced product. Whereas hide & seek has tapped a new market.  Differentiation strategy For Parle-G the company has used channel and image differentiation tools. Parle-G by far has the most intensive distribution coverage as compared to any other biscuit company in India. Also the name PARLE has an image that generates respect and a belief of good quality in the minds of the buyers. Packing As in all other biscuits, packing plays an important role in Parle-G too. The basic small packs are packed mechanically using automated machines and are sealed using the pollybag sealing machine. These small packs are then manually packed into small boxes and are sent through the conveyor belt to be packed in large cartons. 160 packets are packed per minute. And in 23

one big box there are 160 Parle-G packets packed. Before, they used to bring the packaging material from outside the company but now it is produced in the factory premises itself. For export purpose the packets have different languages print on them depending upon the geographical location & demand of the people. Each factory has state-of-the-art machinery with automatic printing & packaging facilities.

THE STRENGTH OF THE BRAND Over the years, Parle has grown to become a multi-million US Dollar company. Many of the Parle products - biscuits or confectionaries, are market leaders in their category and have won acclaim at the Monde Selection, since 1971.

Today, Parle enjoys a 40% share of the total biscuit market and a 15% share of the total confectionary market, in India. The Parle Biscuit brands, such as, Parle-G, Monaco and Krackjack and confectionery brands, such as, Melody, Poppins, Mangobite and Kismi, enjoy a strong imagery and appeal amongst consumers. Be it a big city or a remote village of India, the Parle name symbolizes quality, health and great taste! And yet, we know that this reputation has been built, by constantly innovating and catering to new tastes. This can be seen by the success of new brands, such as, Hide & Seek, or the single twist wrapping of Mango bite. In this way, by concentrating on consumer tastes and preferences and emphasizing Research & Development, the Parle brand grows from strength to strength.

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