PRODUCT LIFE CYCLEPARLE-G

GROUP # 3

MANISH 77MANOJ 78SACHINSREEJARATISH

PRODUCT LIFE CYCLE PARLE –G

Points:

IntroductionHistory & Product rangeBasics of PLCApplication of PLC concept to PARLE –G Introduction Phase of PARLE-GGrowth Phase of PARLE-G (Turnover,Finance

Details,Competition & Challenges.)Conclusion

Inroduction –PARLE G

Largest Selling Brand in world.Identified with baby on pack,

affectionately called as Parle-G babyWinner of 8 gold and 11 silver ‘monde

selection awardsLiked by all age and income groups40% share of biscuit market and a

15% share of confectionary

HIDUSTAN KI TAKAT - PARLE G

Largest manufacturer of biscuits since 80 years

Quality, nutrition and great taste.More than 1500 Wholesalers an 1.3

Million retail outlets Faith and trustExample of marketing brilliance for

Competitors65 % of Glucose Biscuit market.

Product Range

Biscuits Parle – G Milk Shakti Parle - Magix Krackjack Monaco Digestive Marie Hide & Sick Mayfair Cookies

ConfectionaryMelodyMango bitePoppinsKismi ToffeeOrange CandyMust BitesSixer

Product Life-Cycle Strategies

PLC StagesPLC Stages

Product development

IntroductionGrowthMaturityDecline

•Begins when the Begins when the company develops company develops a new-product a new-product ideaidea

•Sales are zeroSales are zero

•Investment costs Investment costs are highare high

•Profits are Profits are negativenegative

PLC - Introduction

basic productUse cost-plus basisSelective

distributionAwareness among

early adoptersHeavy expenditures

Low salesHigh cost per

customer acquiredNegative profits Innovators are

targetedLittle competition

PLC – Growth Stage

Product ExtensionsPenetration Pricing Intensive Distribut.Build AwarenessAdvertising is highReduce expenditure

on sales

Rapidly rising salesAverage cost per

customerRising profitsEarly adopters are

targetedGrowing

Competition

PLC – Maturity Stage

Diversify brand and models

Price match to beat competition

Intensive distribution

Encourage brand switching

Sales peakLow cost per

customerHigh profitsMiddle majority are

targetedCompetition begins

to decline

PLC – Decline Stage

Phase out weak itemsCut priceSelective distributionPhase out

unprofitable outletsReduce to levelReduce to minimal

level

Declining salesLow cost per

customerDeclining profitsLaggards are

targetedDeclining

competition

Introduction Phase - Parle

Founded in 1929 as a Confectionary Comp Decade later Introduced BiscuitsImported Biscuits shipped by British Introduced better glucose biscuitsInitially sold only in Suburbs of MumbaiWax wrappers for packaging

Growth phase PARLE

% Market Share

40

37

7

16

ParleBritaniaITCOthers

Total Market(Crores)

1600

1420

280

640

ParleBritaniaITCOthers

Total Market – 4000 Crores

Total Market Growth 10 to 12 % per annum

Parle holds 40% Market share

Large unorganized sector

Indians eat 0.48 KG and Americans 4kg Biscuits

Growth phase

*Source ORG-MARG

Growth Phase - Parle Cont.

Glucose Market

65

28

7Parle

Britania

others

Turn over %

50%

35%

15%

Parle G

Other Bis.

Confec.

Parle-G Largest brand in world

65 % of Glucose Market 50 % to Turnover Large consumption in

rural market 12 to 15 % Growth Low Margin High Volume

*Source ORG - MARG

Growth Phase - Parle cont.

High Penetration in Market low price ,low margin and high volume gameBrand Repositioning Addition of taste Variants (Magix ,Milk shakti) Addition of weight variants (25 gm to 1kg)

0

500000

1000000

1500000

2001 2007

Increase In Retailoutlets

RetailOutlet

Product S %

Parle G, Milk Shakti L HMarie, Monaco , Krack Jack M MHide n Seek ,Cheeslings H L

*Source ORG-MARG

Growth Phase – Competition

Parle G market leader in Glucose sector Britania leader in terms of value & in Mid & High Sec ITC fastest growing brand (7 %) Others: Priya gold, Bakeman, Nesle and Kwality.

Glucose (L) Marie(M) Cream(H)

Parle Parle G Marie Dig. Hide & Sick

Britania Tiger Marie Gold Good Day

ITC Sunfeast.gl. Sunfeast M Butter Cream

Surya Priya Snacs Priya Gold Badam pista

*Source ORG-MARG

Growth Phase – Challenges

Retailoutlets (Millions)

1.33.3

1.8

ParleBritaniaITC

0

1000

2000

Parl ITC

Advertising

TurnoverAdvert.

Increased penetration level from comp.

Increased Advert. Variants and new

Innovative products High segment variants Celebrity Brand

ambassadors

*AC Nielsen retail sales audit

Conclusion

PLC analysis – very IMP tool in the hands of marketer.

Better understanding in managing profitable products & eliminating unprofitable one.

As products moves from one stage to another in PLC- Marketer evaluate and adjust strategies for promoting ,pricing & distribution of the product.

Bibliography

www.parleproducts.com

www.indiainfoline.com

www.managementparadise.com

Wikipedia

Parle products-(Brand Manager-MrMayank. )

Marketing Management-Philip Kotler