PARLE-G

MARKETING STRATEGY OF PARLE-G

A Project Report

Submitted in the partial fulfillment of the requirement for the award of the

Degree of Bachelor of Business Administration

2007-2010

Submitted By: Under the Guidance

of:

Gagan Deep Kaur Mr. Anoop Pandey

BHARATI VIDYAPEETH UNIVERSITY

INSTITUTE OF MANAGEMENT & RESEARCH, NEW DELHI

An ISO 9001:2000 Certified Institute

“A” Grade Accreditation by NA

Student Undertaking

1

This is to certify that I have completed the Industrial Exposure

“(MARKETING STRATEGY OF PARLE-G DELHI

AND)“(BVIMR)” under the guidance of “(Ms Bhawna Dhawan)” in the

partial fulfillment of the requirement for the award of Bachelor of

Business Administration of Bharati Vidyapeeth University, Pune. This is

an original piece of work & I have not submitted it earlier elsewhere.

Gagan Deep Kaur

2

Certificate

This is to certify that the Industrial exposure project titled

“MARKETING STRATEGY OF PARLE-G)”is an academic work

done by “Gagan Deep Kaur” submitted in the partial fulfillment of the

requirement for the award of the Degree of “Bachelor of Business

Administration” from “Bharati Vidyapeeth University, Pune” under

my guidance & direction. To the best of my knowledge and belief the

data & information presented by him/her in the project has not been

submitted earlier.

Ms. Bhawna Dhawan

3

Certificate

This is to certify that the summer project titled “MARKETING

STRATEGY OF PARLE-G)” is an academic work done by “(Gagan

Deep Kaur)” submitted in the partial fulfillment of the requirement for the

award of the Degree of “Bachelor of Business Administration” from

“Bharati Vidyapeeth University, Pune”.

Dr. Sachin. S. Vernekar

(Director)

4

TABLE OF CONTENTS

Chapter.No TOPIC Page. No

1. INTRODUCTION

INDUSTRY PROFILE

6-7

8-10

2. COMPANY PROFILE 11-31

MARKETING STRATEGY FOR PARLE G 32-40

3. RESEARCH METHODOLOGY 41-43

4.

5.

DATA PRESENTATION AND ANALYSIS

CONCLUSION & RECOMMENDATION

44- 56

57-59

6.BIBLIOGRAPHY

60

7. ANNEXURE 61-63

5

CHAPTER 1

INTRODUCTION

BISCUIT INDUSTRY IN INDIA

Biscuit industry in India in the organized sector produces around 60% of the total

production, the balance 40% being contributed by the unorganized bakeries. The

industry consists of two large scale manufacturers, around 50 medium scale

brands and small scale units ranging up to 2500 units in the country, as at 2000-

01. The unorganized sector is estimated to have approximately 30,000 small &

tiny bakeries across the country.

The annual turnover of the organized sector of the biscuit manufacturers (as at

2007-08) is Rs. 4,350 crores.

In terms of volume biscuit production by the organized segment in 2007-08 is

estimated at 1.30 million tonnes. The major Brands of biscuits are - Britannia,

Parle Bakeman, Parle G, Elite, Cremica, Dukes, Anupam, Craze, Nezone,

besides various regional/State brands.

Biscuit industry which was till then reserved in the SSI (Small Scale Industry)

Sector, was unreserved in 1997-98, in accordance with the Govt Policy, based on

the recommendations of the Abid Hussain Committee.

The annual production of biscuit in the organized sector, continues to be

predominantly in the small and medium sale sector before and after de-

reservation. The annual production was around 7.4 Lakh tonnes in 1997-98 In the

next five years, biscuit production witnessed an annual growth of 10% to 12%, up

to 1999-00.

The annual Growth showed a decline of 3.5% in 2000-01, mainly due to 100%

hike in Central Excise Duty (from 9% to 16%). Production in the year 2001-02

increased very marginally by 2.75% where in 2002-03 the growth is around 3%.

6

The Union Budget for 2005-06 granted 50% reduction in the rate of Excise Duty

on Biscuit i.e. from 16% to 8%. The Federation's estimate for the current year

indicates a growth of approximately 8% to 9%.

However the average utilization of installed capacity by biscuit manufacturers in

the country has been a dismal 60% over the last decade up to 2006-07.

Though dereservation resulted in a few MNCs, i.e. Sara Lee, Kellogs SmithKline

Beecham, Heinz etc entering the biscuit industry in India, most of them, with the

exception of SmithKline Beecham (Horlicks Biscuits), have ceased production in

the country.

On the other hand, import of biscuits, specially in the high price segment has

started from 2000-01, but however, the quantum of imports has not so far

increased alarmingly and has remained at around 3.75% of the consumption of

biscuits in the country in the year 2001-02. However, recent imports from china

industries cheaper verities of biscuit, needs to be examined with cautions,

especially in the context of the price as the low margin based domestic industry,

which is operating at 60 % of the total installed capital. Exports of biscuits from

India has been to the extent of 5.5% of the total production. Export are expected

to grow only in the year 2006-07 and beyond.

Biscuit is a hygienically packaged nutritious snack food available at very

competitive prices, volumes and different tastes. According to the

NCAER(National Council Of Applied Economic Research) Study, biscuit is

predominantly consumed by people from the lower strata of society, particularly

children in both rural and urban areas with an average monthly income of

Rs. 750.00.

Biscuit can he broadly categorized into the following segments:

(Based on productions of 2007-08)

Glucose

Marie

Cream

Crackers

7

INDUSTRY PROFILE

The word 'Biscuit' is derived from the Latin words 'Bis' (meaning 'twice') and

'Coctus' (meaning cooked or baked). The word 'Biscotti' is also the generic term

for cookies in Italian. Back then, biscuits were unleavened, hard and thin wafers

which, because of their low water content, were ideal food to store.

As people started to explore the globe, biscuits became the ideal travelling food

since they stayed fresh for long periods. The seafaring age, thus, witnessed the

boom of biscuits when these were sealed in airtight containers to last for months

at a time. Hard track biscuits (earliest version of the biscotti and present-day

crackers) were part of the staple diet of English and American sailors for many

centuries. In fact, the countries which led this seafaring charge, such as those in

Western Europe, are the ones where biscuits are most popular even today. Biscotti

is said to have been a favourite of Christopher Columbus who discovered

America!

Making good biscuits is quite an art, and history bears testimony to that. During

the 17th and 18th Centuries in Europe, baking was a carefully controlled

profession, managed through a series of 'guilds' or professional associations. To

become a baker, one had to complete years of apprenticeship - working through

the ranks of apprentice, journeyman, and finally master baker. Not only this, the

amount and quality of biscuits baked were also carefully monitored.

The English, Scotch and Dutch immigrants originally brought the first cookies to

the United States and they were called teacakes. They were often flavoured with

nothing more than the finest butter, sometimes with the addition of a few drops of

rose water. Cookies in America were also called by such names as "jumbles",

"plunkets" and "cry babies".

8

As technology improved during the Industrial Revolution in the 19th century, the

price of sugar and flour dropped. Chemical leavening agents, such as baking soda,

became available and a profusion of cookie recipes occurred. This led to the

development of manufactured cookies.

Interestingly, as time has passed and despite more varieties becoming available,

the essential ingredients of biscuits haven't changed - like 'soft' wheat flour (which

contains less protein than the flour used to bake bread) sugar, and fats, such as

butter and oil. Today, though they are known by different names the world over,

people agree on one thing - nothing beats the biscuit!

Some interesting facts on the origin of other forms of biscuits:

The recipe for oval shaped cookies (that are also known as boudoir biscuits,

sponge biscuits, sponge fingers, Naples biscuits and Savoy biscuits) has changed

little in 900 years and dates back to the house of Savoy in the 11th century

France. Peter the Great of Russia seems to have enjoyed an oval-shaped cookie

called "lady fingers" when visiting Louis XV of France.

The macaroon - a small round cookie with crisp crust and a soft interior - seems to

have originated in an Italian monastery in 1892 during the French Revolution.

SPRING-UHR-LEE, have been traditional Christmas cookies in Austria and

Bavaria for centuries. They are made from a simple egg, flour and sugar dough

and are usually rectangular in shape. These cookies are made with a leavening

agent called ammonium carbonate and baking ammonia.

The inspiration for fortune cookies dates back to the 15th and 17th Centuries,

when Chinese soldiers slipped rice paper messages into moon cakes to help co-

ordinate their defence against Mongolian invaders.

NutriChoice SugarOut

Sounds like yesterday when people commented that healthy foods meant

"compromising on the taste." NutriChoice SugarOut is the most novel product

range to have been introduced in the market. The product is not just sweet but

tastes great, and yet contains no added sugar.

9

Central Excise Duty on Biscuits

In the Union Budget 2007-08, the Finance Minister who had imposed a 100% increase

in the rate of Excise Duty on biscuit from 8% as a part of the rationalisation of

CENVAT and introduction of single rate of Duty did not offer any concesison on the

Budget for 2001-02. On the other hand the 50% exemption to small packs was

withdrawn. During these years and in 2006, the Federation submitted strong

representations to the Union Finance

Minister seeking relief in the Excise Duty on biscuits, giving biscuit special treatment

that it deserves on account of the exceptional nature and sensitivity to price increase.

The Federation submitted its Pre- Budget Memorandum for 2009 demanding at least

50% Excise Relief.

It is a matter of great satisfaction that the Govt. has, after 3 years, acceded to our

demand and grated reduction in Excise Duty (from 16% to 18%) in the Union

Budget for 2007-2008.

10

CHAPTER 2

COMPANY PROFILE

A long time ago, when the British ruled India, a small factory was set up in the

suburbs of 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 1959, 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.

How Parle fought to make biscuits affordable to all.

Biscuits were very much a luxury food in India, when Parle began production in 1959.

Apart from Glucose and Monaco biscuits, Parle did offer a wide variety of brands.

However, during the Second World War, all domestic biscuit production was diverted

to assist the Indian soldiers in India and the Far East. Apart from this, the shortage of

wheat in those days, made Parle decide to concentrate on the more popular brands, so

that people could enjoy the price benefits.

Thankfully today, there's no dearth of ingredients and the demand for more premium

brands is on the rise. That's why, we now have a wide range of biscuits and

mouthwatering confectionaries to offer.

11

The strength of the Parle 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.

The Quality Commitment

Parle Products has one factory at Mumbai that manufactures biscuits &

confectioneries while another factory at Bahadurgarh, in Haryana manufactures

biscuits. Apart from this, Parle has manufacturing facilities at Neemrana, in Rajasthan

and at Bangalore in Karnataka. The factories at Bahadurgarh and Neemrana are the

largest such manufacturing facilites in India. Parle Products 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. Each factory has state-of-the-art machinery with automatic

printing & packaging facilities.

12

All Parle products are manufactured under the most hygienic conditions. Great care is

exercised in the selection & quality control of raw materials, packaging materials &

rigid quality standards are ensured at every stage of the manufacturing process.

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. We constantly

endeavour 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 our

cultivated 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.

The Customer Confidence

The Parle name conjures up fond memories across the length and breadth of the

country. After all, since 1959, the people of India have been growing up on Parle

biscuits & sweets.

Today, the Parle brands have found their way into the hearts and homes of people all

over India & abroad. Parle Biscuits and confectioneries, continue to spread happiness

& joy among people of all ages.

13

The consumer is the focus of all activities at Parle. Maximizing value to consumers

and forging enduring customer relationships are the core endeavours at Parle.

Awards - Monde Selection

Year Products Rank

1959 (Brussels)Cheeslings

Monaco

Gold

Gold

1962 (Geneva) Gluco Silver

1973 (Paris)

Monaco

Gluco

Cheeslings

Gold

Silver

Silver

1974 (Bruxelles)

Cheeslings

Monaco

Gluco

Silver

Gold

Silver

1975 (Amsterdam)

Cheeslings

Monaco

Gluco

Monaco

Gold

Gold

Silver

Trophy Of The International High Quality

1976 (Britain-London)

Monaco

Cheeslings

Gluco

Krackjack

Gold

Gold

Silver

Silver

1977 (Luxembourg) Monaco

Cheeslings

Krackjack

Gold

Gold

Gold

14

Gluco Silver

1978 (Geneva)

Gluco

Monaco

Cheeslings

Krackjack

Gold

Gold

Gold

Gold

1979 (Paris)

Krackjack

Monaco

Cheeslings

Gluco

Gold

Gold

Gold

Silver

1980 (Vienne)

Krackjack

Cheeslings

Monaco

Gluco

Gold

Gold

Gold

Silver

1981 (Amsterdam)

Cheeslings

Monaco

Gluco

Krackjack

Palmes(Gold)

Gold

Gold

Gold

1982 (London)

Cheeslings

Monaco

Krackjack

Gluco

Gold

Gold

Gold

Gold

1983 (Rome)

Cheeslings

Monaco

Krackjack

Gluco

Gold

Gold

Gold

Silver

1984 (Madrid) Gluco

Monaco

Gold

Gold

15

Krackjack

Cheeslings

Gold

Palmes(Gold)

1985 (Lisbon-Portugal)

Gluco

Monaco

Mini Cheeslings

Recipe 57

Krackjack

Gold

Gold

Gold

Gold

Silver

1986 (Geneva)

Gluco

Monaco

Mini Cheeslings

Recipe 57

Krackjack

Marylong

Gold

Gold

Gold

Gold

Silver

Silver

1987 (Bruxelles)

Gluco

Krackjack

Monaco

Mini Cheeslings

Marylong

Gold

Gold

Gold

Gold

Gold

1988 (Athens)

Monaco

Cheeslings

Marylong

Gluco

Krackjack

Gold

Gold

Gold

Silver

Bronze

1989 (Luxembourg) Gluco

Krackjack

Monaco

Marylong

Gold

Gold

Gold with Palm leaves

Silver

16

Cheeslings

Melody

Fudgy

Gold

Gold

Gold

1990 (Luxembourg)

Cheeslings

Rol-A-Cola

Krackjack

Monaco

Gluco

Poppins

Melody

Grand Gold

Twist wrap Gold

Gold

Gold

Silver

Silver

Bronze

1991 (Barcelona)

Melody

Kismi Toffee Bar

Mango Bite

Rol-A-Cola

Gluco

Krackjack

Monaco

Cheeslings

Silver

Bronze

Gold

Gold

Gold

Silver

Gold

Gold

1993 (Amsterdam)

Gluco

Krackjack

Monaco

Cheeslings

Nimkin

Gold

Gold

Gold

Gold

Gold

1996 (Brussels)

Gluco

Krackjack

Monaco

Cheeslings

Gold

Gold

Gold

Gold

17

1998 (Paris)

Gluco

Monaco

Krackjack

Supermilk

Cheeslings

Gold

Gold

Gold

Silver

Grand Gold

1999 (Roma-Italy)

Gluco

Monaco

Krackjack

Supermilk

Cheeslings

Silver

Grand Gold

Gold

Gold

Gold

2000 (Lisboa)

Gluco

Monaco

Krackjack

Supermilk

Cheeslings

Bronze

Grand Gold

Gold

Gold

Gold

2002 (Brussels)

Gluco

Monaco

Krackjack

Supermilk

Cheeslings

Gold

Gold

Gold

Grand Gold

Gold

2004 (Brussels)

Gluco

Monaco

Krackjack

Cheeslings

Sixer

Jeffs

Gold

Gold

Gold

Gold

Gold

Silver

2006 (Brussels) Gluco Gold

18

Krackjack

Monaco

Sixer

Jeffs

Cheeslings

Gold

Gold

Gold

Gold

Gold

2007 (Brussels)

Parle-G

Krackjack

Monaco

Hide & Seek

Gold

Gold

Gold & International High Quality Trophy

Silver

2008 (Brussels)

Parle-G

Krackjack

Monaco

Hide & Seek

Marie Choice

Gold

Gold

Gold

Silver

Gold

19

The major products offered by Parle-G industries are the following:

1. Brand Name: GoodDay and Marrie from Parle Gare stable and are the most

established brand in biscuit segment being equated for biscuits for long time.

Now the brand has taken a dent though among the present generation with

competitors coming up with more powerful advertising campaigns and offering

more variety.

2. Styling & Packaging: Parle Gofferings have the innovative designs and

packaging as compared to what is offered by the competitors. As it's a variety

seeking product the styling and packaging helps in getting more customers.

3. Quality: Parle Gname is associated with quality. The offerings from Parle

Gare of best quality when it comes to taste and hygiene. Under it's mission

statement "eat healthy think better"

20

Product mix

Parle-G

There are always some kids who seem smarter than the rest. Ever wonder how they

got to be that way? If you had to think real hard for the answer, then probably you've

never eaten Parle-G. Parle-G is the new generation's official power supply. Providing

kids with the vital vitamins and minerals necessary for all round mental and physical

development.

Apart from being the world's largest selling biscuit, Parle - G is the winner of 8 Gold

and 11 Silver awards at the Monde Selection Awards – the global standard

for quality in Food category.

Parle-G Magix

What is the power of taste? Can it get government officers to get your papers through

faster? Probably! Can it help you make friends and influence people? It's worth a shot!

Can it land you a lead role in a blockbuster movie, even if you can't act?

Fact is, people will do anything for a taste of Parle-G Magix. But the real question is,

will you be willing to share your packet of Parle-G Magix to find out exactly how

much power you can exert? With two delicious tastes - Choco & Cashew, Parle-G

Magix has put great power in your hands. Go ahead & wield them wisely.

Parle-G Milk Shakti

What have you heard about Parle-G Milk Shakti? Think hard. Ok, now eat a biscuit.

Got it? Yes, you're absolutely right. It aids mental stimulation. And energises the

body too. Now try and memorise this - it is the only milk biscuit with the goodness of

honey.Should be unforgettable, once you bite into one of these power-packed biscuits.

21

Krackjack

A little sweet - A little salty… That's what makes Krackjack very, very delicious!

This delightful biscuit is acclaimed in India and across the world for its

controversial sweet and salty taste. Krackjack has won 11 Gold, 3 Silver and 1 Bronze

award at the 'Monde Selection'. You can enjoy Krackjack any time plain or with a

host of beverages like tea, coffee or milkshakes.

Monaco Zabardast Zeera

To add some spice to life, have the exciting variant of Monaco - The Zabardast

Zeera Flavour. The same light salted biscuits that lift your spirits now comes

delicately seasoned with Zeera. Relish this unique taste at all times of the day.

Marie Choice

More and more people are now discovering the pleasures of a cup of hot steaming tea.

Or so it seems. In reality they are actually using (misusing) tea as a ready excuse to

indulge in another packet of Parle Marie Choice. Whatever the reason, Parle Marie

Choice has fast become a preferred teatime accompaniment. Find out for yourself over

a cup of tea. After all , chai toh hai bahana.

22

Hide & Seek

Let your taste buds indulge in the sinful pleasure of a delightful game. Seek out the

chocolate chips that aren't really hidden. And relish a delectable experience called

Hide-&-seek - tasty itna, ki dil aajayee.

As you crunch into it, these chips melt in your mouth. Try as you might, you

just can't hide from the sheer delight of munching a mouthful

Fun Centre

There might have been times when you were unsatisfied with the amount of cream in

the middle of cream biscuits. With Parle Fun Centre, you'll have no such problems.

A delicious biscuit filled with cream till the edges, ensuring that it has the highest

cream content in its category. Available in a variety of mouthwatering, lip-smacking

flavours like chocolate, butterscotch, strawberry and milk cream, these irresistible

cream biscuits whet your appetite for more, and also make for a perfect dessert.

NutriChoice SugarOut

This is because NutriChoice SugarOut is sweetened with "Sucralose," derived from

sugar, which provides the same sweetness as any other biscuit, without the added

calories of sugar.

This range is available in 3 delicious variants namely Litetime, Chocolate cream, and

Orange cream, targeted towards all health sensitive people. It is also relevant for

consumers with sugar related ailments.

We are sure that you will be pleasantly delighted with its great taste and equally

surprised to know that it has no added sugar.

Don't be taken for a ride when you read "Sugar Free" label on many biscuit packs

marketed in India or abroad. Even with 100% no-added sugar, wheat-cereals in

biscuits have their own natural sugar content. Parle Ghas chosen to represent these

biscuits with "No Added Sugar" claim, as there is no added sugar in the processing of

NutriChoice SugarOut.

23

Nutri Choice Digestive Biscuit

Nothing can be more difficult than making small efforts in our daily life towards

healthy and active living. 24/7 we are engrossed in our busy schedules; skipping

meals, missing walks, along with inadequate sleep and frequently eating-out, all

take a heavy toll on our health.

At least with the new and improved NutriChoice Digestive Biscuit, we have one

less thing to worry about. Made with 50% whole-wheat and packed with added

fibre (10% of our daily dietary needs), these delightfully tasty biscuits are

amongst your healthiest bites of the day.

In your next visit to a shop just look out for its Golden-green international carton

pack.

Try one and you'll know that you've made one smart choice - NutriChoice.

Treat Fruit Rollz

24

So go on and treat yourself to the lip-smacking snack!

New Parle-G Milk Bikis

Milk Bikis, the favorite growth partner of Kids, now brings greater value and

delight to all with its new product and pack design. Recently re-launched in its

existing Southern & Eastern markets, and extended across India, the new Milk

Bikis is all set to add excitement and appeal to ‘nutritious’ food. Whoever said

that ‘good food’ needs to look ‘dull and boring’, will just have to take a look at

Milk Bikis.

With a unique and attractive honeycomb design and an enhanced product

experience, the new biscuit prompts the ‘Kid’s will love it’ reaction amongst

mothers. The milk goodness in the recipe is now enhanced with SMART

NUTRIENTS – 4 vital vitamins, iron and iodine, proven to aid mental and

physical development in growing kids. The premium packaging, besides

appealing to kids, also ensures that the biscuits remain fresh and crisp.

So, whether its breakfast time or snack time at school, rest assured that kids will

look forward to munching these crunchy, milky biscuits which even helps in their

development. And yes, adults won’t be far behind in reaching out for a pack!

Parle-G 50-50 Pepper Chakkar

The launch of the latest 50-50 variant left everybody guessing "What it is?" From

TV ads, radio, outdoor and in-store display materials to events, a website and

SMS and email blasts, traditional and new media were blended synergistically to

create excitement and curiosity about the unique taste of the biscuit. The tangy

and distinctive pepper flavoured biscuit, that's thin and crispy and more like a

snack, caught the imagination of a younger audience craving something to nibble

on. The 50-50 Pepper Chakkar launch is truly a case of leveraging the marketing

mix to best advantage.

Parle-G profits up 125 % in Q2; growth momentum continues

Mumbai, October 23rd, 2007: Parle-G Industries Ltd. (PARLE G ), one of India’s

leading food Companies, reported sales of Rs. 6,588 MM for the quarter ended

25

30th September 2008, reflecting 20% growth over the corresponding quarter last

year. Net Profit for the quarter at Rs. 485 MM was more than double for the

corresponding quarter last year of Rs 212 MM.

For the half year ended 30th September 07, revenue grew 19.6% to Rs. 12,356

MM, while net profit at Rs 846 MM was 64.6% higher than last year.

Commenting on the performance, Ms. Vinita Bali, Managing Director, said,

“We continue to build on the growth momentum of last year. We have added 340

basis points to our margin through higher price realization as well as innovation.

The increase in profit has been achieved despite the continuing and unprecedented

increase in prices of key commodities like flour, oils & dairy products.”

During the quarter, the Company launched ‘Treat Choco Gelo’, an extension of

the Treat franchise with ‘double masti’ of chocolate & caramel and also

introduced a range of premium indulgence cookies under ‘Pure Magic’ brand.

Investment in Advertising and Sales Promotion has been increased by 50% to fuel

the innovation led growth.

26

MEASURES UNDERTAKEN BY GOVERNMENT

The Food Processing Industry have been experiencing the adverse affect of

multiplicity of various Acts/ Rules and Regulations for food standards under the

Prevention of Food Adulteration Act Standards of Weights & Measures Act, Food

Products Order, the Meat Products Order, the Bureau of Indian Standards & MMPO

(Milk & Milk Product Order), etc. affected the Food & Food Processing Sectors. They

need to be modernized & converged.

As a consequence of various representations of industry, the Govt. of India has

decided to set up a Group of Ministers (GOM) to propose legislation and other

changes for preparing a Modem Integrated Food Law and related regulations. The

Ministry of State for Food Processing Industries is the Nodal Ministry to coordinate

the Parle G l.

Our federation submitted its recommendations and suggested to placed before the

Group of Ministers, covering the broad frame work required for the food legislation as

well as specific issues such as:

The main objectives of the new Integrated Food Laws & its structure

Methodology of development of Standards

Provisions of Labelling

Acceptance of a basic list of additives

Matters relating to GMP(Good Manufacturing Practice), GHP(Gud Health Plan)

Issues related to Codex

Procedure for sampling& launching of Prosecutin

Grading of violations according to the nature of discrepancy.

Recent Changes / Amendments

Prevention of Food Adulteration Rules The Ministry of Health & Family Welfare,

Govt. of India vide its Notification No. GSR 908 (E) Dt. 20.12.2008 has provided for

printing of statutory symbol on all products containing vegetarian ingredients. The

notification came into effect from 20 June 2008. As members may be aware the Govt.

has earlier amended PFA Rules vide notification No. 245(E) Dt.4.4.2001 provided for

27

statutory printing of the symbols of food packages containing non vegetarian

ingredients. This notification has already come into effect from 4 October 2008.

Our Federation along with apex organizations such as CII(Confederation Of Indian

Industry) & CIFTI (Confederation Of Indian Food Trade & Industry)have represented

to Hon'ble Union Minister for Health and Family Welfare seeking extension of a

minimum period of 6 months for implementation of the notification, particularly on

account of hardships in printing vegetarian symbol in advertisements. A delegation

from the industry met the Secretary, Ministry of Health and Family Welfare and

apprised him of the hardships faced by industry. Further follow up is in hand.

Prevention of Food Adulteration Act / Rules

Members reported various instances where the PFA authorities in the States are

adopting penal action, even in cases of very minor offences / errors under the PFA

Rules. FBMI (Federation Of Biscuit Manufacturer Of India) suggested that such minor

errors etc should be compounded, avoiding prosecution, harassment and resultant

losses to biscuit units. This issue has also been referred to CII (Confederation Of

Indian Industry) & CIFTI (Confederation Of Indian Food Trade & Industry) for

further follow up.

Introduction of HACCP/GMP/GHP

The Govt. of India (Ministry of Health), has formulated proposals to introduce the

concepts of Hazard Analysis Control Convention Procedures (HACCP), Good

Manufacturing Practices (GMP) and Good Hygienic Practices (GHP), as a step

towards eventual adoption in the various states in accordance with the International

Codex Alumnus, in the context of trade terms and regulatory, measures under the

WTO regime.

After discussions with FBMI and other organizations, the Dept of Health constituted

Sectoral Groups on various categories of food processing industries. The Sectoral

Group on Bakery Products consisted of FBMI ((Hazard Analysis Critical Control

28

Point) Federation Of Biscuit Manufacturer Of India), as Convener and FBMI and SIB

as members. After detailed deliberations, the Federation submitted our comments and

suggestions, highlighting the hardships that the biscuit units would face in the event of

statutory enforcement of HACCP/GMP/GHP.

The Federation suggested that the concepts of HACCP etc should be made voluntary

in the first two/three years, keeping in view the ground realities in the bakery sector

and due to the fact that the implementation of HACCP/GMP/GHP may be beyond he

financial and technical capabilqities of majority of the biscuit manufacturers and

compulsory introduction of these regulations would adversely impact the via Parle G

ity and may lead to closure of a large number of bakeries in the country. FBMI, after

detailed deliberations by the Executive Committee, suggested to the Govt. of India

that, in the first instance projects for imparting training to the Managers/Executives

and workforce in the bakery industries should be organized so as to create awareness

and knowledge on these complex regulatory aspects and educate the personnel in the

industry on various aspects of HACCP etc.

Unified Food Laws – Need for

As members are aware, the food processing industries, including Biscuit / Bakery

segment, are subjected to and administered by a large number of statues i.e. PFA Act /

Rules, Weights & Measures Act, Packaged Commodities Rules, MMPO(Milk & Milk

Product Orders) under Essential Commodities’ Act / Rules, Agmark, BIS etc. There

are much multiplicity of implementing / enforcing Agencies / Departments for watch

one of these Acts and Rules, both at Central and State levels. Unfortunately, many a

time there are instances of overlapping and even contradictions between such

Agencies / Departments. PFA Act / Rules are recipe based, and focus on prosecution /

penal action, even for minor / technical errors etc. which are also different in the

States.

Similarly, in the Standards of Weight & Measures Act and PC Rules, there have been

plethoras of amendment, and proposals for more restrictions on the food processing

29

industries including Biscuit and this has resulted in unavoidable hindrances in the

development and growth of the industries.

It is in this context that our Federation in close coordination with CIFTI, CII, FICCI,

PHDCCI urged he Government to evolve a single Integrated Food Law, encompassing

the existing legislation’s mentioned above, with main focus on development and

promotion of the Food Processing, Agro Based industries in the country, paving way

for creation of large employment generation, consumption of varied types of safe food

products of good quality, at reasonable prices benefiting consumers particularly those

in the lower and middle segments of the society. Exports and better capacity

utilization also need to be encouraged in the proposed Integrated law, which would

also result in higher productivity and better revenue for the Central and State

Governments.

As a result of such concerted efforts and presentations by organizations of industry,

including AIMBA the Government constituted the Justice Venkatachalam Committee

to review the entire gamut of the existing Food Laws and to recommend the ways ad

means and basis for unifying these Acts / Rules and regulations into an Integrated

Food Law (Act). After due consideration of all aspects and by inviting suggestions

from Govt., Industry and Commerce as well as consumers and other important

sections of the community at large, the Committee submitted its report containing

detailed suggestions / recommendations on the imperative need for integrating the

existing multiple food laws.

30

Accordingly, the Govt. formed a Group of Ministers with the Ministry of Food

Processing Industries as the nodal point and this comprehensive exercise has resulted

in the Draft Food Parle G l 2002 presented to the Group of Ministers. The said Draft

Food Parle G l 2002 has been formulated to “provide for the production, manufacture,

processing and sale of safe and suitable food systematic and scientific development of

food industry, introducing new technologies, imparting new inputs of market

dynamics, and to create an enabling environment for innovation and value additions,

ensuring high degree of objectivity and transparency and to provide for the

establishment of a Food Development an Regulatory Authority of India an the Council

for Food Standards and for matters connected therewith or incidental thereto.

31

MARKETING STRATEGY FOR PARLE G

Cost leadership:

It is a cost leader in its industry except in cheese and glucose biscuits where it lags

behind Parle respectively. The company has undertaken modernization program

in order to improve productivity. To focus resources, rationalization of brands and

packs has been undertaken and the existing brands have been clustered into more

cost efficient portfolio through a process of brand concentration.

Economies of scale:

Parle G is adding capacity at regular intervals depending upon the economic

environment It has the advantage of being able to source raw materials and even

packaging at cheap rates because of large scale of operations.

Parle G is a star BCG as shown below:

The BCG growth-share matrix shows that Parle G is a STAR BCG, being a

market leader in a high growth market

32

* PARLE G

HIGH

MARKET GROWTHRATE

LOW RELATIVE MARKET SHARE HIGH

FIVE FORCE MODEL FOR PARLE G

33

COMPETITOR’S FORCE

(Major MNCs likely to diversify and get into related business of

Parle G

SUPPLIER’S FORCE

(Very large number less of bargaining power

PARLE G PARLE BAKEMAN’SREGIONAL

BUYER’S FORCES

(more quality suppliers, so conscious and price sensitive

SUBSTITUTE’S FORCES

Household snacks Bakery biscuits Fast food

PARLE G SUPPLY CHAIN

Supply chain Describes a longer channel stretching from Raw materials to

components to final Products that are carried to final Buyers.

Parle G Supply Chain include Authorized wholesaler, Superstockists, RPDs,

UPDs and Retailers. The Raw Materials are converted into finished goods in the

Production Units or Factories. From factories the finished goods are then sent to

the Regional Depots or the Mother Depots. From here the stock reaches the

Warehouse for distribution to the Authorized Wholesaler. From Warehouse or

Depots the Stock either reaches the Superstockists or the Authorized Wholesalers.

From Superstockists the stock goes to either UPDs (Universal Printer Driver) or

34

RPDs (Radiation Protection dosimetry) from where it finally reaches to the

markets of Rural India. The Authorized Wholesaler buy goods from Company

and from them the Stock goes to the Retailers. Retailers sell Company Products to

the End Consumers.

The Sale of the Stock from Depots to Authorized Wholesaler constitutes Primary

Sale while the Sale of the Stock from Authorized Wholesaler to Wholesaler

constitute Secondary Sale.

Different rural markets have different set of Superstockists (SS) which further

have RPD’s (Rural preferred Dealers) and UPD’s (Urban preferred Dealers) under

them. These UPD’s are the dealers of very small regions only which are

considered rural only and are not completely urban.

Sales Promotion

Sales promotion, a key ingredient in marketing campaigns, consists of a diverse

collection of incentive tools, mostly short term, designed to stimulate quicker or

greater purchase of particular products or services by consumers or the trade."

In marketing, sales promotion is one of the four aspects of promotion. (The other

three parts of the promotional mix are advertising, personal selling, and

publicity/public relations.) Sales promotions are non-personal promotional efforts

that are designed to have an immediate impact on sales. Sales promotion is media

and non-media marketing communications employed for a pre-determined,

limited time to increase consumer demand, stimulate market demand or improve

product availability. Examples include:

· coupons

· discounts and sales

· contests

· point of purchase displays

· rebates

· free samples (in the case of food items)

· gifts and incentive items

35

· free travel, such as free flights Sales promotions can be directed at either the

customer, sales staff, or distribution channel members (such as retailers). Sales

promotions targeted at the consumer are called consumer sales promotions.

Sales promotions targeted at retailers and wholesale are called trade sales

promotions.

Purpose of sales promotion.

Sales-promotion tools vary in their specific objectives. A free sample stimulates

consumer trial, whereas a free management-advisory service aims at cementing a

long-term relationship with a retailer.

Sellers use incentive type promotions is to attract new triers, to reward loyal

customers, and to increase the repurchase rates of occasional users. Sales

promotions often attract brand switchers, who are primarily looking for low price,

good value, or premi-urns. Sales promotions are unlikely to turn them into loyal

users. Sales promotions used in markets of high brand similarity produce a high

sales response in the short run but tittle permanent gain in market share. In

markets of high brand dissimilarity, sales promotions can alter market shares

permanently.

MAJOR CONSUMER PROMOTIONAL TOOLS

Samples: Offer of a free amount of a product or service delivered door to

door, sent in the mail, picked up in a store, attached to another product, or

featured in an advertising offer.

Coupons: Certificates entitling the bearer to a stated saving on the

purchase of a specific product: mailed, enclosed in other products or

attached to them, or inserted in magazine and newspaper ads.

Cash Refund Offers (rebates): Provide a price reduction after purchase

rather than at the retail shop: consumer sends a specified "proof of

36

http://en.wikipedia.org/wiki/Wholesalers

http://en.wikipedia.org/wiki/Consumer

http://en.wikipedia.org/wiki/Retailer

http://en.wikipedia.org/wiki/Distribution_(business)

http://en.wikipedia.org/wiki/Customer

purchase" to the manufacturer who "refunds* part of the purchase price by

mail.

To promote products to consumer, company devises some scheme like discount on

MRP, giving freebies with product etc.

How Consumer promotional offer products differ from normal product without offer ?

The product is marketed under some scheme.

The packaging is different from normal product.

The freebies procurement & logistics planning is additional activity.

The production centers may be different from regular production centers.

The distribution strategy may be different from regular one.

Parle G Industries Ltd. Planned to launch six promotional offers in the month of May

and June 2008.

Complexities involved were promotional offers limited to some region of our country

and rest of country was on normal product.The promotional offers were limited to

Uttar Pradesh and Rajasthan.

Objectives :-

To deliver right SKU (Stock Keeping Unit) & Gift item to right place in right

time.

To achieve internal customer satisfaction level to 95%.

And to increase the consumer base for newly launched product.

Marketing Department decides to run promotional offers on brands with following

objectives.

To penetrate market with greater share of business.

To leverage Parle-G brand by having association with some other known

brand.

To counterattack competitor’s strategy.

The consumer promotional offers are based on the principle of elasticity of demand.

Following consumer promotional offers were conceptualized for May and June 2006.

37

PROMOTION IN RURAL MARKET

MERA RPD MAHAN CONTEST

Mera RPD (Radiation Protection Dosimetry) Mahan contest was a dealer

incentive contest which was designed for the dealers of the Rural market. This

contest was designed to motivate the RPDs (Radiation Protection Dosimetry) and

UPDs (Urban preferred Dealers) to reach their Sales target of 35,000 and 50,000

respectively. This contest was held in the month of May and June.

The details of this contest are as follows:

Period May- Jun'06

Scope RPDs (Radiation Protection Dosimetry) in all SURE Territories

Criteria Sales target achievement for the incentive period

Targets for the period to be set by the SO/ ASM in

consultation with the RSM Minimum swing of 40% in

May and June'06 MA sales over Jan-Mar'06 MA sales

To qualify the RPD must have minimum current sales

of Rs.30000 PM or the Target sales should be a

minimum of Rs.30000 PM.

Mechanics

1 Top RPD to be selected as the "Mera RPD (Radiation Protection Dosimetry)

Mahaan" per RPD PSM PJP.

This RPD to get a gift article worth Rs. 3000/- (Nokia MoParle G e Phone

Proposed

All other RPDs to get a gift article worth Rs. 500/- or cash if preferred

38

WEAKNESSES

The Company takes a lot of time in handling the UCA (Supply Chain

Company) claims of the authorized wholesalers; this !eads to demotivation

Warehousing norms are not followed, which accounts for high breakage

The semi-sweet category accounts for the maximum turnover in the mass

market- the Tiger Anytime being a member of this category is perceived as a tow

quality product; this may liquidate Parle G 's brand equity in the mass market

Parle G has positioned it's Tiger range on health and taste, but my findings

show that health consciousness in the mass market is low, which means that the

brand is under-positioned, since the market doesn't consider "health1 as an

important benefit in biscuits

Parle G 's strength is in mid, premium mid super-premium category; this

market is approaching a saturation point

Parle G 's mass market is not segmented properly; Parle G cannot afford to go

all out in the mass market, the best strategy would be to concentrate on these

segments of the mass market, which will account for volume sales and require

minimum investment

Performance-based incentive to motivate the sates staff is not existing in the

Company

Yearly incentives don't motivate the dealers of mass market brands

OPPORTUNITIES

Mass market is growing with established preference for biscuits

Growing middle class in India can provide more opportunities for Parle G 's

pillar brands

Credit given to dealers will help Parle G in expanding the width of reach, by

which the company will have a volume advantage

Taste plays an important role in mass market which can take care of price

39

sensitivity to some extent

There is low differentiation in the mass market brands

There is a fairly good market for a high count salty cracker variety and a cream

cracker variety in the mass market

THREATS

De-reservation of the biscuit industry may attract foreign players who initially

will try to attack the premium segment, which is already established for Parle G

A characteristic feature of premium market consumer is that this segment is

not brand loyal; therefore there is a chance of the consumers to shift to other

brands in the near/distant future

Too much concentration in the mass market may affect the companies market

in this established segment

Mass-market venture may account for this cannibalization

A large number of competitors each having respective bold in different

markets of the company's pillar brands will account for high contribution/orrir

40

CHAPTER 3

RESEARCH METHODOLOGY

OBJECTIVE OF THE STUDY

PRIME OBJECTIVE

To find out the competitive activity and merchandising through retailer of PARLE G

BUISCUIT in south Delhi.

OTHER OBJECTIVE

To find out the consumer preference according to retailer view.

To find out the satisfaction levels towards service provide by PARLE G.

To find out the major competitor of PARLE G BISCUIT.

SCOPE OF THE STUDY

FMCG Sector is a growing sector in India at high pace. Biscuit manufacturing

industries has lot of scope in the Indian economy. Company manufactures according to

the consumer’s interest. There is a high competition in biscuit manufacturing

industry’s such as Parle-G, Sunfeast, Priya gold, etc. consumer prefers to take that

product which not only satisfy him but also his colleagues, family, natives. This study

helps in determining right choice for them.

41

DATA COLLECTION METHOD

Data collection is an elaborate process in which the researchers make a planned

research for all relevant data. Data is the foundation of all market research. Data are

facts may be obtained from several sources. Data can be classified as:

Primary data

Secondary data

PRIMARY DATA

It is gathered for the first time by the researchers. If the secondary data is found to be

inadequate or unavailable, the researcher goes for primary data.

COLLECTION OF PRIMARY DATA

The researcher was assigned to do a comparative study on PARLE G BISCUIT. In

order to accomplish the job, the researcher adopted the two-way strategy to collect the

primary data.

Secondly to complete the job in a more genuine way, retailer survey was conducted

sample of 30 rational retailers were taken and they were supplied with a structured

non-disguised questionnaire. The idea was to seek out the market position of PARLE

G BISCUIT.

The data collected was collected from different retail outlets of biscuit namely:

Shops

Confectioners

Kirana and general stores

42

SECONDARY DATA

Secondary data is the data borrowed from secondary sources by the researcher.

Secondary data can be internal or external i.e, internal records of the company or

information available from library and other statistical organization.

In a Market Research Project Field Work has a very vital role to play. As a matter of

fact, it’s the back bone of any Market Research Project. Field work basically consists

of collection of primary data. In this project, researcher had to undergo a lot of Field

Work. For the purpose researcher has a visit various cinema halls, public attractive

places, colleges & school canteens etc.

The whole area which was to be surveyed was divided into different segments

randomly. Simultaneously survey of both retailers and consumers was carried out. The

researcher worked in the field for a span of one & half months.

Later on whole data which was collected from field was well scrutinized & tabulated

for analysis. Its interpretation has been provided in most easy to understand manner

with the help of suitable diagram & charts.

.

43

CHAPTER 4

DATA PRESENTATION AND ANALYSIS

The Sale of 6 SKUs (Stock Keeping Unit) in 4 Regions namely Western UP, Eastern

UP, Central UP and Rajasthan was analyzed for a Period of three months from April

to June. In April, there were no Promotions on these SKUs (Stock Keeping Unit)

while in the Month of May and June these SKUs were offered with Promotions. The

total Sale of these SKUs (Stock Keeping Unit) without Promotion i.e. in the month of

April was compared with the total Sale of these SKUs with Promotions in the month

of May and June. The total Percentage increase in Sales from April to May and then

subsequently from May to June was analyzed. The Effect of these Promotions on the

total Sales was calculated.

These promotions are launched especially for the rural marketsand therefore their

effectiveness is to be tested in the rural market only. These has been introduced to

increase the sale of these biscuits in rural market.

The RPD’s and the UPD’s of each and every Superstockist was tracked. It was

tracked that whether the RPD’s have meet their sales target of 35,000 and UPD’s

of 50,000 or not. If they have not met their targets by when are they going to meet

their targets and what is the reason they have not yet met their sales target.

Thereafter the monthly reports of April, May and June were compared and the

Percentage increase in Sale was calculated.

For all the three months the Overall Sale as well as the RPD and UPD Sale was

Calculated for all the four Regions. In Addition to this the the total Percentage of

Stock reaching the Rural market and the Urban market was also calculated. At

each and every step the Percentage increase in Sale of euery region was

calculated.

44

The Analysis and Finding of this Projects are as follows:

SALES ANALYSIS OF CONSUMER PROMOTION

TOTAL SALES (in Ttonnes)

MATERIAL APRIL MAY JUNE

50:50 150G 10 13 44

TIGER KESAR KULFI 100G 1 3 4

TIGER ROSE MILK 100G 2 3 7

TIGER ORANGE CREAM 100G 10 15 22

TIGER ELAICHI CREAM 100G 1 1 7

TIMEPASS CLASSIC S.150G 1 3 5

It is clearly depicted from the above Graph that there has been a tremendous

increase in total Sales of all the SKUs (Stock Keeping Unit) from April to June

due to the Promotional Schemes offered with these SKUs during this Period. The

maximum swing in the total Sale was observed for 50:50 150gm which is about

44 tonnes in June as compared to only 10 tonnes in April.Also in this region, there

has been a noticeable increase in the total Sale of the Tiger Orange Cream 100

gm. The sale was increased from 10 tonnes in April to 22 tonnes in June. The

Percentage increase in the total Sale of this SKU (Stock Keeping Unit) from April

to June was 120%.

The Total Sale of all the rest of the SKUs (Stock Keeping Unit) has also increased

Marginally during this time Period.

45

EASTERN UP

35

1 1

61

2 3

56

1 0

62

4 7

109

7 6

70

8

27

0

20

40

60

80

100

120

91340 50:50150G

91344 TIGERKESAR KULFI

100G

91345 TIGERROSE MILK

100G

91346 TIGERORANGE

CREAM 100G

91347 TIGERELAICHI

CREAM 100G

91350 TIMEPASSCLASSICS.150G

TO

TA

L S

AL

ES

(in

To

nn

es

)

APRIL

MAY

JUNE

It is clearly seen from the bar Diagram that in this region, the maximum

Percentage increase in total Sales was for 50:50 150gm and Timepass Classics

150gm. There has been a tremendous increase (212% for 50:50 150gm and 800%

for Timepass Classics 150 gm)in sale for these SKUs (Stock Keeping Unit) due to

promotional Schemes offered with these SKUs (Stock Keeping Unit).

There has been a Marginal increase in the Sale of rest of the SKUs (Stock

Keeping Unit).

TOTAL SALES (in Tonnes)


50:50 150G 35 56 109







46


50:50 150G 8 12 88






CENTRAL UP

8 6 4

13

3 3

128 5 4 4

88

6 6

18

9

27

14

0

10

20

30

40

50

60

70

80

90

100

91340 50:50 150G 91344 TIGERKESAR KULFI

100G


100G

91346 TIGERORANGE

CREAM 100G

91347 TIGERELAICHI

CREAM 100G

91350 TIMEPASS

CLASSIC S.150G

TO

TA

L S

AL

ES

(in

To

nn

es

)

APRIL

MAY

JUNE

In this region also, the Maximum increase in Percentage total Sales was Observed

for 50:50 150 gm and Timepass Classics 150 gm. The Percentage increase in

Total Sales of 50:50 150 gm from April to June due to Promotions was 1000%

and for Timepass Classics 150 gm was 800%.

An unusual trend in increase in sale was Observed in case of Tiger Kesar Kulfi

100 gm. There has been a increase in sale of this SKU (Stock Keeping Unit) from

April to May but there has been a Drop in the Sale from May to June. This is

because of the non availability of this SKU (Stock Keeping Unit) in this Region.

47



50:50 150G 36 41 70






RAJASTHAN

36

8 7

16

62

41

10 713

713

70

11 13

32

4

19

0

10

20

30

40

50

60

70

80

91340 50:50150G

91344 TIGERKESAR KULFI

100G


100G

91346 TIGERORANGE

CREAM 100G

91347 TIGERELAICHI

CREAM 100G

91350 TIMEP ASSCLASSIC

S.150G

TO

TA

L S

AL

E(i

n T

on

ne

s)

APRIL

MAY

JUNE

As it can be seen in the above chart sale of 50:50 due to promotion shoot up like

anything in month of June that is a increase of around 89%. Also other SKUs

(Stock Keeping Unit) like TIGER ORANGE and TIGER ELAICHI showed a

decreasing trend due to unavaiParle G ity of stock of the given product.

48

EASTERN UP

50

60

0

57

42.1

32.3

50

40

0

43

57.9

67.7

0

10

20

30

40

50

60

70

80

91340 50:50 91344 TIGERKESARKULFI

91345 TIGER ROSE

MILK

91346 TIGER

ORANGE

91347 TIGER

ELAICHI

91350 TIMEPASSCLASSIC

PE

RC

EN

TA

GE

%Rural Sale

% Urban

The affect of promotion is clearly seen in the Eastern UP. The target rural sale

according to superstockists contribution should be 61%. Only TIGER KESER

KULFI and TIGER ORANGE are close to the target whose Rural Sales

Percentage are 60% and 57% respectively. For all the rest of the SKUs (Stock

Keeping Unit) the Percentage Rural Sale is very less than the targeted in this

month.

The SKU named TIGER ROSE MILK does not show any sale neither Rural nor

Urban in this region. This is due to non availaParle G ity of this SKU (Stock

Keeping Unit) in this region during the month of May.

aterial

%Rural

Sale

% Urban

Sale

50:50 6.7 93.3

TIGER KESAR KULFI 18.5 81.5

TIGER ROSE MILK 5.4 94.6

TIGER ORANGE 28.7 71.3

TIGER ELAICHI 16.3 83.7

49

TIMEPASS CLASSIC 20 80

CENTRAL UP

6.718.5

5.4

28.7

16.3 20

93.381.5

94.6

71.3

83.7 80

0102030405060708090

100


91345 TIGER

ROSE MILK

91346 TIGER

ORANGE

91347 TIGER

ELAICHI


PE

RC

EN

TA

GE

%Rural Sale

% Urban

The target rural percentage sale should be at least 34% according to

Superstockists contribution in this area. TIGER ROSE MILK has done the least

sale among all the SKUs(Stock Keeping Unit) . There should be slight increase in

sales of TIGER ORANGE i.e. up to 5% so as to reach the targeted rural sale

Percentage. None of the SKUs (Stock Keeping Unit) has reached the targeted

Sales Percentage in the month of May.

Material

%Rural

Sale

% Urban

Sale

50:50 38.3 61.7

TIGER KESAR KULFI 50 50

TIGER ROSE MILK 50 50

TIGER ORANGE 40 60

TIGER ELAICHI 28.3 71.7

TIMEPASS CLASSIC 43.6 56.4

50

RAJASTHAN

38.3

50 50

40

28.3

43.6

61.7

50 50

60

71.7

56.4

0

10

20

30

40

50

60

70

80


91345 TIGER ROSE

MILK

91346 TIGER

ORANGE

91347 TIGER

ELAICHI


PE

RC

EN

TA

GE

%Rural Sale

% Urban

The target rural percentage sale should be at least 48% according to

Superstockists contribution in this area. TIGER KESAR KULFI and TIGER

ROSE MILK has reached their target Rural Sale Percentage. Rest all the SKUs

are below the target sale Percentage. TIGER ORANGE and TIMEPASS

CLASSIC are close to the targeted Sale and need slightly more efforts to reach to

the targeted Percentage in the next month.

PERCENTAGE RURAL AND URBAN SALE SKU (Stock

Keeping Unit) WISE IN MONTH JUNE

Material

%Rural

Sale

%

Urban

Sale

50:50 10 90



TIGER ORANGE 12 88

TIGER ELAICHI 17 83

51


WESTERN UP

10 10 6 12 17

45

90 90 94 88 83

55

0

20

40

60

80

100

91340 50:50

91344 TIGERKESARKULFI

91345 TIGER

ROSE MILK

91346 TIGER

ORANGE

91347 TIGER

ELAICHI


PE

RC

EN

TA

GE

%Rural Sale

% Urban

The target rural percentage sale should be atleast 16.8% according to

Superstockists contribution in this area.Only TIMEPASS is doing

exceptionally good but rest SKUs (Stock Keeping Unit) i.e. 50:50 (12.3%) and

TIGER Cream(Aggregate 14.6%) are less than the target percentage.

QUESTIONNAIRE ANALYSIS

Material

%Rural

Sale

%

Urban

Sale

50:50 47 53



TIGER ORANGE 60 40

TIGER ELAICHI 50 50


52

1. Write down the first brand name that comes in your mind regarding biscuits?

According to retailers survey,customer like changes and in need to taste new consumable products. If he/she is a consumer of parle-g biscuits than not for all the time he will stick to that. If company manufactures according to consumers interest then he will definitely be satisfied. Various variants of Parle-G such as krackjack , Krack Jack crispy cream ,Monaco ,Hide & Seek ,Digestive Marie , etc

2.What others brands of biscuits can you recall?

0

2

4

6

8

10

12

14

16

1 2

Parle-G

sunfeast

Cremica

Elite

Craze

Nezone

Dukes

Britannia

Parle-G 14sunfeast 3Cremica 2Elite 1Craze 6Nezone 1Dukes 1Britannia 2

In this survey, 14% of the consumers have keen interest in Parle-G

products. Rest go to other brands out of 30%

3.What is the frequency of biscuits you take?

53

0

2

4

6

8

10

Once ina Week

Tw ice ina Week

thrice ina Week

AnyOthers

Series2

Series1

Once in a week 5Twicw in a week 8Thrice in a week 9Any others 8

Frequency of biscuits that consumer’s take is Thrice-A-Day.

1. What brand do you have on occasions?

0

2

4

6

8

10

12

14

16

Parle-G Sun Feast Priyagold Britannia

Series2

Series1

Parle-G 14Sun Feast 5Priyagold 6Britannia 5

Most of the times Consumers prefer Parle-G biscuits rather than Sunfeast

,Priyagold ,etc

54

4.Which biscuits gets you best freshness?

0

2

4

6

8

10

Mariegold 50-50 Good Day Krack jack

Series2

Series1

Mariegold 750-50 9Good Day 6Krack jack 8

50-50 biscuits are preferred for freshness which is also light

and crunchy as compare to other brands.

5.Have you any complain about the biscuits?

0123456789

Dirty

wrappe

rs

Price

too

high

Non A

vaila

bility

Shorta

ge

Bad q

uality

Oth

ers

Series2

Series1

Dirty wrappers 2Price too high 6Non Availability 2Shortage 8Bad quality 7Others 5

8% Consumers deal with shortage problem rest deals with Dirty

wrappers ,price to high ,etc

55

6.Which brand do you prefer mostly?

0

2

4

6

8

10

12

14

16

Parle-G Sun Feast Priyagold Britannia

Series2

Series1

Parle-G 14Sun Feast 5Priyagold 6Britannia 5

14% people go for parle-g for every time of occasions.

7.Can you change your mind for others brand, if the brand is not

available in shop

02

46

810

1214

1618

Yes No

Series1

Yes 17No 13

Definetly consumers mind are flexible ,If Britannia is not

available to particular retailer customer would like to taste

something new and accordingly he can shift his taste to like

parle-g biscuits.

56

CHAPTER 5

CONCLUSION & RECOMMENDATIONS

Sales Promotional Offers helps the company to increase the over sales of the

product under promotion because consumers tend to buy in ample amount due to

small duration of the promotion and feel value for their money.

But through these promotional schemes company earns less margin.

It also helps in widening their consumer base i.e. it attracts new triers.

It creates the brand awareness among the consumers about the newly launched

product like Tiger cream.

Products which are less popular among the consumers like Pepper Checker are

also get Promoted.

It helps to increase the repurchase rate of the occasional buyers

Since the promotions were designed for rural market and rural market

contributes to 70% of the total market hence attracting more consumers. And turn

them to loyal users

It enhances brand image

Since attractive promotion attracts consumers hence retailers push products

under promotion rather than competitors products of same kind.

Sales promotion also attracts brand switchers who are primarily looking for

low price good value of premiums.

57

Learnings through Trade Promotions:

to persuade the RPDs and UPDs to carry the brand because they are more

concentrated in making sales of the given company product so as to get

maximum incentives.

to persuade the RPDs and UPDs to carry more units than the normal

amount as they have to reach the target sale under Mera RPD Mahaan Scheme.

to induce RPDs and UPDs to promote the brand by featuring, display, and

price reductions so as to attract more consumers.

to stimulate RPDs and UPDs and their sales clerks to push the product than

competitors products otherwise they wont be able to reach their sales target.

Also Attract more RPDs and UPDs to take participate in the contest because

of the incentives.

Problems

Stock out:

It was observed that most of the Promotional SKUs (Stock Keeping Unit) were

out of stock at most of the depots during the Promotional Period which has

effected the total sales of these SKUs in these four regions tremendously.

Non availaParle G ity of Freebies:

It was observed that sometime during the Promotional Period the Freebies

which has to be given with the main Product were not available. Due to their

unavailaParle G ity the Promotion for that Particular SKU (Stock Keeping

Unit) was not carried for that Period of Promotion.

Allocation Problem:

The allocation was the most prominent problem during this Promotion. The

stocks were not allocated in the Rural and Urban markets according to their

Percentage area contribution. In some areas the stock was supplied more which

was not in accordance with the Percentage area contribution of that region

while in some very less stock was supplied as compared to their Percentage

58

area contribution. Due to this most of the time major part of the stock was

dispatched in the Urban markets which has seriously affected the Rural sales.

Dispatch Problem:

There was no proper schedule for dispatching & receiving of orders generated.

Generally the Stocks are Dispatched late by about a week from the depots due

to which the stock reaches late to the wholesalers and during that week the

wholesalers face the problem of non availability and are left with very less or

no stock to sell.

Poor sale promotion skills:

According to observations, sale was not promoted skillfully in most of the

Regions. The retailers in these regions have not taken appropriate efforts so as

to promote the promotional products skillfully.

59

RecommendationsAs already discussed above, there are certain issues and flaws associated with

Sales Promotion, so in order to implement it effectively and efficiently we would

like to suggest certain recommendations to the company:

Production department should make efforts to make available all of the product

varieties in the depot norm wise. So that each and every variety should be

available according to the generated order so as to meet the stock out problem.

I recommend strong coordination between production and the sales department.

So that a proper production forecast for each variety can be maintained by the

production department.

Proper allocation of the stock from the depot according to the Superstockists

contribution so that neither there is excess stock in one region nor stock outs in

other.

I also recommend to increase average number of lines so that all the SKUs (Stock

Keeping Unit) are available in the market.

Apart from setting overall target for all the SKUs (Stock Keeping Unit), there

should also be individual SKU wise target so that RPDs and UPDs are able to

make sales of unfamiliar products also.

To increase the sales margin the price value of the main brand should be relatively

higher i.e. around thrice of the Freebie for example instead of Rs10 pack of 50:50

150G Freebie Pepper Checker should be given with Rs15 pack of 50:50.

There should be a system from where different distributors can see the stock

position of company and as well of other distributors. It will help the distributor in

a way that if some distributors who wants the same.

Contests like MERA RPD MAHAAN should be held every quarter.

60

CHAPTER 6

BIBLIOGRAPHY

Effective Planning in Marketing and Development Leslie Rae

World Class Marketing Kaye Thorne

Marketing in Practice Blackwell

Human Resource Management C.B.Gupta

Human Resource Management T.N.Chabra

Human Capital Journal

61

CHAPTER 7

ANNEXURE

a. Questionnaire

1. Write down the first brand name that comes in your mind regarding biscuits?

……………………………………….

2.What others brands of biscuits can you recall?

a) ………………….. e)

……………………

b) ………………….. f).

……………………

c) ………………….. g).

…………………….

d) ………………….. h)

…………………….

3.What is the frequency of biscuits you take?

(Tick you prefer).

e) ………Once in a week b) ………Twice in a week

f) ………Thrice in a week d) ……….Any others

4.What brand do you have on occasions?

(Tick you prefer).

a) ………Parle G b) ………Parle

c) ………Sun feast d) ………Parle G

5.Which biscuits gets you best freshness?

(Tick your choice).

g) ………Mari Gold c) ………….. 50-50

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h) ……….Good Day d) …………… Krack Jack

6.Have you any complain about the biscuits?

(Just tick).

i) ……. Price to highd)…Non-availaParle G ity near by

j) ……. Dirty Rappers e) ………Shortage

k) ……. Bad quality f) ………Others reason

7.Which brand do you prefer mostly?

(Just tick).

a) ………Parle G b) ………Parle

c) ………Sun feast d) ………Parle G

8.Can you change your mind for others brand, if the brand is not

available in shop

which you prefer? (Just tick choice).

a) …….Yes

b) …….No

Classification Data

1. Name: - ………………………………………………………

2. Sex:- ……………Male ……………Female

3. Age: - ………………..

4. Occupation: - ………………………….

5. Income Group:-

…………5,000-10,000 ………….10,000-15,000

………..15,000-20,000. …………Above 20,000

63

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