Report Shrink

8/8/2019 Report Shrink

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MARKETING PLAN:ShrinkBISCUITS

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EXECUTIVE SUMMARY

This report is an earnest endeavor made to understand the present market scenario in

biscuits captured by the Parle and to suggest a new product or a new segment altogether

and then decide its marketing strategy and analyze the market feasibility.

We suggested a new product in the biscuit segment to Parle. The products name being

Shrink is basically a weight reduction biscuit unlike the other weight maintain biscuits

which are currently available in the market. The main purpose of the biscuits is:

1) Weight Reduction

2) Digestion

3) Cleansing

Based upon these purposes, the ingredients will be put. Although these biscuits are weight

reducing, for the criteria of taste they will be available in three flavors. It is a low fat, low

calorie and high fiber product. This product will be aiming mostly atA, A+ market which will

include the health conscious people and the niche audience. The target audience is the

consumers varying from an age group of 15 50 years.

The purpose of selecting this product is basically to fulfill the desire ofhealth conscious

people and providing them light diet with good taste and a variety of flavors. Today, most of

the people mainly in the A class and upper middle class, irrespective to whether fat or thinhave the desire to lose weight and turn more slimmer.

The product is also packed keeping in mind the convenience factor for the consumers. The

market strategy will include the promotion of the product by TV commercials and visual

displays at food joints as well as placing hoardings at strategic locations and providing free

samples and discount coupons to approach the correct target audience. The product will

initially be launched in the metropolitans and based on the success, the manufacturing

units shall expand. It will follow the well established Parle channel for distribution.


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CONTENTS

S.NO TOPIC PAGE NO.

1. CURRENT MARKETING SITUATIONy Current Market Situationy Competitor Analysis

2. S.W.O.T. ANALYSISy Strenthy Weaknessy Opportunitiesy Threats

3. MARKETING STRATEGYy Product Developmenty Distribution Networky Market Segmentationy Costingy Marketing Mix

4. ACTION PROGRAM

5.

BUDGET

6. CONTROL AND MEASURES


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CURRENT MARKETING SITUATION

BISCUIT INDUSTRY IN INDIA:

PRODUCT LINE:

Parle Products has been India's largest manufacturer of biscuits and confectionery, for

almost 80 years. With a 40% share of the total biscuit market and a 15% share of the total

confectionary market in India, Parle also provides snacks and it has become multi-million

dollar company. While to consumers it's a beacon of faith and trust, competitors look upon

Parle as an example of marketing brilliance.

COMPETITORS:

The main competitors of Parle include: -

y Britannia:y Sunfeasty Priya Goldy Anmol

The total biscuit production in India is

estimated to be around 30 lakh MT, organized

sector accounts for 65% and the unorganized

sector accounts for 35% of the total industry

volume.

y The organized sector is valued at above Rs8000 crores.

y The biscuit industry is estimated to grow over15-17% in the next few years.

y The biscuit industry employs almost 3.5 lakhpeople directly and 30 lakh indirectly.

y Consumer Pattern across Various Regions is as

40%


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SWOT ANALYSIS

STRENGTH

WEAKNESS

OPPORTUNITY

THREAT

1. Weight reduction biscuit under the Parle brand2. It has three main purposes-1) weight reduction, 2)digestion and 3)cleansing.3. Different sizes of packets are available.4. An experienced team of sales and marketing executives.5. Available in three flavours.6. Largest distribution system.

7. Developed under a strong R&D team.

1. Not much target audience in the age group below 15 years.

2. No surity of acceptance by all segments of society.3. Cost slightly more as compared to other weight maintain biscuits.4. Does not show the weight reducing effect if not consumed according to the instructions.

1. Can serve as a healthy diet for the health conscious people.2. Opportunity of changing consumer preference.3. Will increase the biscuit industry market.

1. Competition from the weight maintain biscuits and Kellogs providing K special.2. Ever increasing competition from multinationals and local companies.3. Increase in sale of cheap local bakery products.4. Emerging substitutes like wafers, snacks and toast.5. Hard to replace common breakfast options.


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MARKETING STRATEGY

It presents the broad marketing approach that will be used to achieve the plans objectives.

A marketing strategy combines product development, promotion,distribution, market

segmentation, pricing and other elements identifying the firm's marketing goals within a

stated timeframe.

PRODUCT DEVELOPMENT:

Most Parle offerings are in the low and the mid range price segments and with the

introduction of the suggested weight reducing biscuits they would target a niche market, a

segment it has never targeted.

Product is to be consumed as breakfast as well as an evening snack.

PORTERS GAME PLAN

Product concentrates on achieving performance in an important customer benefit area

valued by a part of the market. Business is targeting a niche market with focus on quality in

the weight reduction technique market.

Therefore Parles Shrink follows 3rd

game plan i.e. focus with quality differentiation.

DISTRIBUTION NETWORK:

The extensive distribution network, built over the years, is a majorstrength for Parle Products. Parle biscuits & sweets are available to

consumers, even in the most remote places and in the smallest of villageswith a population of just 500.

Parle has nearly 1,500 wholesalers, catering to 4,25,000 retail outletsdirectly 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.

MARKETING SEGMEN TATION:

SEGMENTATION VARIABLES DATA

GEOGRAPHIC

Country India

Cities 5 metropolitans

Density Urban

Climate Store in cool dry places


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DEMOGRAPHIC

Age 15-50 years

Gender Male, female

Occupation All occupation

Education Schools, colleges, spas, salons, hospitals

PSYCHOGRAPHICSocial class A, A+ class

Lifestyle Believers, health conscious people

BEHAVIOURAL

Occasions No special occasion can be consumed any

time

Benefits Weight reduction, digestion and cleansing

effect

Loyalty status Moderate

COSTING:

INGREDIENTS QUANTITY COST

Wheat flour 24.5g Rs 0.2

Whole wheat flour 10.5g Rs 0.2

Ragi 7g Rs 0.07

Edible oil 4.2g Rs 0.26

Oats 7g Rs 0.69

Sugar 2.8g Rs 0.08Jowar 5.6g Rs 0.033

Wheat bran 2.1g Rs 0.031

Fruit essence 2.8g Rs 0.7

Isabgul 2.8g Rs 0.35

Ephedra 0.7g Rs 0.63

Total 70g Rs 3.25

Packet cost = Rs 0.60

70g packet cost = Rs (3.25 + 0.60)

= Rs 3.85

Overhead variable cost= Rs 0.60

Transportation cost = 4% =Rs 4.08


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Packet cost = Rs 4.45

Own profit = 15% = Rs 0.667

Profit margin to distributor = 4% = Rs 0.178

Profit margin to retailer = 12% = Rs 0.534

Cost Price = Rs 102(for 14 days)

70g packet cost = Rs 9.28

490g packet cost = Rs 65(for 7 days)

980g packet cost = Rs 130 (for 14 days)

MARKETING MIX: The four Ps to achieve the marketing objectives in the target market:

PRODUCT:

Name -Shrink Tagline : Something more than special Flavours Orange , Mango , Elaichi Design long cuboidal biscuits Features Weight reduction, digestion and cleansing Inner Packaging :

The packets will be available in 490 gm (for 7 days) and 980 gm (for 14 days) .

PRICE:

Maximum retail price available to customers:

490gm for Rs 65

980gm for Rs 130

PLACE

Initially launching in the A, A+ stores in the four metropolitans - Mumbai, Delhi,

Bangaluru and Kolkata.


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PROMOTION

Sales Promotion In house store promotion , Cross category ( complimentary packs 0f 50 gm with horlicks) For 490g (10% discount ) and for 980g (20% discount) on Talwarkar gym

membership.

Contests will be held among students in the colleges for a span of one week to showthe shrink biscuits impact.

Free samples of 35g would be distributed in gyms, beauty salons, spas and outsidehospitals.

Provide incentive 2 big bazaar to keep the product

Advertising Instore broadcast of the product for 15-20 secs in big stores like Hypercity. Free samples along with movie tickets in A class theatre to target the niche market. Outer Packaging Cardboard box covered by a metallic sheet. Packaging Sizes :It will be available in 70 G, (70x7) 490G , (70x14) 980 G It will be available in 490g (for 7 days) and 980g (for 14 days).It will be provided in

such a quantity so that the fat reducing effect can be seen.

The 70 gm packages are only for promotion purpose.


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CONTROL MEASURES

Plan B

If the above action plan fail for some reason and the marketing strategyis not

implemented as desired then for controlling the market situation some measures can be

taken up by the company.

Some of these are:

Creating tie-ups with health drinks like Horlicks, Complain etc. Decreasing promotional activities. Taking back the product and re-launching it. Adding one more flavour to boost up sales.

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