A

PROJECT REPORT
On

“MARKETING STRATEGY OF PARLE G”

Submitted towards Partial Fulfillment of
BACHELOR OF BUSINESS ADMINISTRATION
(AFFILIATED TO C.C.S. UNIVERSITY, MEERUT)
(2020-2023)

UNDER THE GUIDANCE OF

Submitted to: Submitted By:
Mr. DEEPAK SHARMA VERNIKA
Faculty of Management . Roll No. 200986105104
BBA- V SEM

DEWAN INSTITUTE OF
MANAGEMENT STUDIES, MEERUT

1
 STUDENT DECLARATION

I am VERNIKA student of B.B.A. – V Sem, DIMS, Meerut here by declares that

the project report titled “MARKETING STRATEGY OF PARLE G” is completed

and submitted under the guidance of “Mr. DEEPENDRA GAUTAM Faculty of

BBA Department DIMS, Meerut” is my original work.

The imperial finding in this report is based on the data collected by me. This project
has been submitted to CCS, University , Meerut or not any other university for the
purpose of compliance of any requirement of any examination or degree.

VERNIKA

Roll No. 200986105104

BBA- V SEM

2
 ACKNOWLEDGEMENT

I take this as an opportunity to thank with bottom of my hear all those without whom

the journey of doing my project would not have been as pleasant as it has been to me.

Working on my project was a constant learning experience with all sweat and tear

which was its due but not without being richly stimulating experience of life time.

I am very thankful to Mr. Geetika Shukla, H.O.D of BBA Department DIMS,

Meerut for giving me their valuable advice and guidance towards fulfillment of the

project

For any project to be a success, it is very important to get the right guidance and

support which I got from my Teacher “Mr. DEEPENDRA GAUTAM Faculty of

BBA Department DIMS, Meerut. I express my gratitude to my faculty guide for

inspiring me throughout the project.

I want to express my deep gratitude to our institution DIMS Meerut , for giving me

the opportunity to undertake this project and enhance my knowledge.

Finally I would like to convey my heartiest thanks to all my well wishers for their

blessing and co-operation throughout my study. They boosted me up every day to

work with a new and high spirit.

VERNIKA

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 EXECUTIVE SUMMARY

The report is an earnest endeavour made to understand the present market scenario in
biscuits captured by the Parle and the other competitor‘s brand viz., Britannia,
Priyagold , and ITC. We are required to see the coverage by the Parle Product Pvt.
Ltd., and bring out the potential and loyal retailers so that the company could maintain
the market leadership in the existing business scenario in the biscuit and the
confectionaries. The study encompasses the penetration of the existing Parle Products
(Biscuits and Confectionaries) and the market potential for the new product like
Golden Arch, Nimkin, Monaco Funion, Melody Softee, Mazelo. Their motives were to
study the working of the distributors in Mumbai market. They have mentioned the
problems and the loop holes in the Parle‘s distribution system and the promotional
tools, which they have found during the course of study and recommended various
corrective measures for it. I also studied the behaviour of consumer about their
preferences for Biscuits, Candies, and their overall buying behaviour with the help of
questionnaire.

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 TABLE OF CONTENT
Part I:
I. Certificate from Organization
II. Certification from Institution
III. Declarations
IV. Acknowledgement
V. Executive Summary
VI. Index/ Table of Content
Topic Page Number
Part II: Study of Organization
 Introduction of Organization 7-10
 Business Overview 11-12
 Mission, Vision & Objectives 13-14
 Board of Director 15-16
 Company History 17-19
 Achievements 20-23
 Products & Services 24-37
 Sales & Financial Performance 38-45
 SWOT Analysis 46-48
Part III: Research Work
 Objective 50-51
 Theory & Models related with Problem/ Literature Review 52-78
 Research Methodology 79-84
 Data Analysis and Interpretation 85-99
 Data Findings 100-101
 Limitations 102-103
 Suggestions & Recommendations 104-105
 Conclusion 106-107
 Bibliography 108-109
Part IV: Annexure
1. Questionnaire 110-112

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 Part II:

Study of Organization

6
Introduction of Organization

7
ABOUT COMPANY: PARLE

Explicit Trading & Marketing a unit of Parle Agro Pvt. Ltd. is India based which

manufacture juice products. The industry is an India based multinational company

which produce juice and also interfere in the fields of food (snacks). When India left

the ban from the international Juice manufactures fruit Juice Company was the fist

company who joined Indian market with there two flavour i.e. Fruit juice (Mango),

fruit juice (Apple). That time company has competition with other company. As Parle

starts to dominate the mango products. In 1993 Parle entered the Indian market. Now

parle up are the owned brand of fruity juice. They have joined Indian market with

fruity juicy (Mango) and fruity juicy (orange). At present there is a great competition

in the field of Juice industry and advertising war is continue between Fruity juicy &

Tropicana. Both companies want to dominate each other in advertising world. Parle is

one step ahead the Tropicana.

They are the global sponsors of cricket world cup 1999 while the coke was the

official cold drink of wills world cup 1996. but FRUITY prepare a prepare a

brilliant aid with slogan ― Nothing official about it‖ and gain a great advantages.

This competition is very god Juice industry and consumer as well. At present

Fruity have balanced market share in Indian market.

Fruity also brought in celebrities which further emphasized their business all over

India. The most effective was with the T.V. advertisement. Further, fruity is used

to sponsoring various corporate and cultural events all over India, which help to

create brand awareness among to user groups.

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 Parle Products has been India's largest manufacturer of biscuits and
confectionery for almost 80 years. Makers of the world's largest selling biscuit, Parle-
G, and a host of other very popular brands, the Parle name symbolizes quality,
nutrition and great taste. With a reach spanning even to the remotest villages of India,
the company has definitely come a very long way since its inception.

Many of the Parle products - biscuits or confectioneries, are market

leaders in their category and have won acclaim at the Monde Selection, since 1971.
With a 40% share of the total biscuit market and a 15% share of the total
confectionary market in India, Parle has grown to become a multi-million dollar
company. While to the consumers it's a beacon of faith and trust, competitors look
upon Parle as an example of marketing brilliance.Over the years Parle has grown to
become a multimillion-dollar company with many of the products as market leaders in
their category. 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.

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 PARLE Glucose and Parle Monaco were the first brands of biscuits to
be introduced, which later went onto become leading brand names itself for great taste
and quality.Today, the great strength of Parle Products is the extremely widespread
distribution network. Even at the remotest places, you can buy Parle biscuits and
sweets from the local grocer. It has taken years to create this extensive network.
Parle‘s sales force started with one salesman in Bombay and some agents in few other
cities. Gradually, Parle Products expanded. Soon sweets and biscuits were being sent
by rail to Calcutta, Delhi, Karachi, Madras and other major cities.

As production increased, distribution was amplified. Full time

salesmen were appointed in different areas. Currently, Parle Products has over 33,
00,000 distribution outlets.Hygiene is the precursor to every process at Parle. From
husking the wheat and melting the sugar to delivering the final products to
supermarkets and store shelves nationwide, care is taken at every step to ensure the
best product of long-lasting freshness.

Every batch of biscuits, confectioneries & snacks are thoroughly

checked by expert staff, using the most modern equipment. This ensures consistent
and perfect quality across the nation and abroad.Concentrating on consumer tastes and
preferences, the Parle brand has grown from strength to strength ever since its
inception. The factories at Bahadurgarh, Haryana and Neemrana,

Rajasthan are the largest biscuit and confectionery plants in the

country. The factory in Mumbai was the first to be set up, followed soon by the one in
Bangalore, Karnataka. Parle also has 10 manufacturing units for biscuits and 75
manufacturing units for confectioneries on contract.

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 Business Overview
rle Agro, a pioneer in the Indian beverage industry, has been creating innovative
products and iconic brands since 1985.

Headquartered in Mumbai, with over 4000 employees, Parle Agro is the largest
Indian beverage company.

Our strength lies in establishing new categories, building brands and capturing market
share within those categories.

Our bevy of brands include

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Being the fastest-growing beverage company, we continue to aggressively adopt new
strategies and innovative initiatives in order to connect with our consumers. A large
part of our growth strategy is driven by sales and distribution and our manufacturing
capabilities.

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Mission, Vision & Objectives

13
 ―We will be the leaders in our business by
maintaining high quality, introducing new and
innovative products, reaching every part of
India, remaining customer-centric, constantly
upgrading our knowledge and skills. To provide
consumers superior, wholesome agro based
food and drink brands through which parle can
build a profitable; growth oriented organization‖

To be the leaders in our business. We will stand

apart from the competition by being the first inthe
market to innovate.

we believe that sustainability can make a positive

contribution to our company's long-term business
success. As India's largest beverage company our
focus is on new and innovative solutions to
address issues that will limit impact on natural
resources, eliminate waste and reduce carbon
footprint.

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Board of Directors

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 NAME DESIGNATION

Ashish Kankani Independent Director

Manish Kumar Vyas Co. Secretary & Compl. Officer

Manish Patel CFO & COO

Manisha Patel Executive Director

Narendra C Purohit Independent Director

Unnatti Jain Independent Woman Director

V I Garg CEO

Vimal J Maharajwala Chief Executive Officer

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Company History

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 A long time ago, when the British ruled India, a small factory was set
up by Mohanlal Dayal Chauhan 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.The original Parle company was
split into three separate companies, owned by the different factions of the original
Chauhan family:Parle Products, led by Vijay, Sharad and Anup Chauhan (owner of
the brands Parle-G, Melody, Mango Bite, Poppins, Monaco and KrackJack)Parle
Agro, led by Prakash Chauhan and his daughters Schauna, Alisha and Nadia (owner
of the brands such as Frooti and Appy)

All three companies continue to use the family trademark name

"Parle". The original PARLE Group was amicably segregated into three non-
competing businesses. But a dispute over the use of "Parle" brand arose, when Parle
Agro diversified into the confectionary business, thus becoming a competitor to Parle
Products. In February 2008, Parle Products sued Parle Agro for using the brand Parle
for competing confectionary products.

Later, Parle Agro launched its confectionery products under a new

design which did not include the Parle brand name In 2009, the Bombay High Court
ruled that Parle Agro can sell its confectionery brands under the brand name "Parle"
or "Parle Confi" on condition that it clearly specifies that its products belong to a
separate company, which has no relationship with Parle Products.

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19
ACHIEVEMENTS

20
AWARD

21
QUALITY CERTIFICATE

22
APPRECIATION AWARD

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Products & Services

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 BISCUITS SWEETS SNACKS
Parle-G Londonderry Parle‘s wafers
Monaco Melody Namkeen
Golden Arcs Mango Bite Fulltoss
Parle Actifit Digestive Kaccha Mango Bite Munchies
marie
Parle Marie Chox Cheeslings
Hide & Seek Poppins
Hide & Seek Fab Mazelo
Hide & Seek Bourbon 2 in 1
Festo 2 in 1 Éclair
Happy Happy Kismi
Milano Kismi Toffee Bar
Nimkin Fruit Drops
Coconut
20 – 20 cookies
Jam In
Gold Star
Kreams
Top
Magix
Coconut

These products are discussed below in short about that featurs , pricing etc.

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 BISCUITS

PARLE-G

Every nation dreams of a better tomorrow. And every nation's tomorrow lies in the
hands of its children; the young stars who shape the future of the nation. So, it's
important to nourish these young stars, after all it's a question of the nation's future.

Filled with the goodness of milk and wheat, Parle-G is a source of all round
nourishment. Treat yourself to a pack of yummy Parle-G biscuits to experience what
has nurtured and strengthened millions of people for over 70 years. A meal substitute
for some and a tasty and healthy snack for many others. Consumed by some for the
value it offers, and many others for its taste.

Whatever the occasion, it has always been around as an Instant source of

nourishment. Little wonder that it's the largest selling biscuit brand in the world.

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PARLE FUTURE GENIUS

There‘s no school like childhood. And there‘s no teacher like curiosity.

At Parle, we believe that every child has the potential to become a genius if allowed
to follow their curious minds and explore without limitations. That‘s why we made
the futuregenius.com website. A tool for both parents and children to help identify
the spark of genius in a child, nurture it and give it a platform to be showcased
on.

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MONACO

Life namkeen banaiye!

Crispy Light Salty Snack

When life hits a dull patch, just pull out a Parle Monaco to make it
exciting. The light, crispy biscuit sprinkled with salt, is the perfect namkeen twist you
can add to your ordinary boring moments. Go ahead, Life namkeen banaiye,
anywhere, anytime with Parle Monaco.

To spice up your life further, try the variant of Parle Monaco - The
Zabardast Jeera. This salted, crispy biscuit delicately seasoned with jeera, has a
unique taste that makes those namkeen moments even more exciting.

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HIDE N SEEK

Play a game of hide and seek with your taste buds. Indulge in the
mouth-watering delight of India‘s best moulded chocolate chip biscuits, Hide & Seek.
All it takes is one bite, and you are transported to chocolate Heaven. Packed with a
bounty of chocolate chips, once you try Hide & Seek, you will never want any other
biscuit again. A treat for the mouth, and the heart.

HIDE N SEEK BOURBONE

The moment you take a bite

your tongue starts playing hide n
seek with the rich chocolaty
cream resting between two
lovely sugar-coated biscuits. The
melting chocolate cream will
feel rich and luscious in your
mouth. It‘s a complete treat for
your taste buds. Moreover, it's
like falling in love at first bite.

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GOLDEN ARCS

Introducing irresistible Golden Arcs, filled with rich Strawberry,

Apple, Orange & Choco Fillings. They are best described as 'melt-in-your-mouth',

soft shelled fruit rolls and crunchy choco fills which are perfect for an anytime
snack.Do bite into one of our 4 Delicious flavours.

TOP

It is the ultimate crispy cracker with the finest taste of butter, especially made to
mesmerize you with its smoothness. The unspoken dream or the wildest imagination
gets real, with the smooth texture of butter. So take a bite and escape into your own
world where it will be just about you and everything else fades into oblivion. Let no
one come between you and

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PARLE ACTIFIT DIGESTIVE MARIE

Now say 'goodbye' or at least 'see-you-later‘ to the couch, the video

games, the computer and the TV. And enter the Actifit world where you say 'Hi.
Hello, Good morning' to the gym, the roads, the pool. And to help you stay this active,
you need Actifit Digestive Marie. It's a biscuit that's packed with 5x more fibre (than
other Marie biscuits) and 67% less fat. And it's a biscuit that will help you commit to
a healthier you.

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SWEETS

Londonderry

Get a taste of the rich English-Irish culture, right here in India. With
Londonderry, an exquisite hard-boiled candy made from Milk and Caramel. With a

name inspired by an actual town in Ireland, the creamy, exotic taste of this delicious
candy will make you discover the glories of the majestic English-Irish culture. Just
pop-in a Londonderry candy and experience

Melody

„Melody itni chocolaty kyon hai?'

Caramel meets chocolate to yield an

outcome nothing less than delectable.
Parle Melody comes with an
irresistible layer of caramel on the
outside and a delightful chocolate
filling within. Pop it in your mouth and
relish the unique experience. It won‘t be too long before you find yourself asking the
age old question

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Kaccha Mango Bite

The mastiful flavour of summer now comes in a candy. Just pop a Kaccha Mango
Bite and experience the natural tangy sweetness of a real raw mango. It's the only
candy that is a real kacche aam ka zerox. So when you're craving for the tantalizing
khatta-meetha taste of raw mango just reach out for a Kaccha Mango Bite and enjoy
real kacche aam ki masti, anytime, anywhere.

2 in 1 Éclairs

It‘s a creamy, delicious bargain! Savour the

delicious cream filling overflowing from a
golden caramel shell. Delight your taste
buds with rich taste of cream and caramel.
It‘s Eclairs 2 in 1, a sweet delight to double
your pleasure and treble the fun! And
remember, two‘s always better than one.

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Kismi Chocolate

Now the yummy toffee and elaichi taste of Kismi Toffee comes specially packaged in
its maha- avatar. Now when you study or play, bring your appetites and more for this

fantastically big bite of Kismi Toffee Bar. Making it one of the most popular toffee
bars in India. After all everyone knows, when it comes to toffee, big is best.

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SNACKS

MUNCHIES & JEFFS

Crunchy, salted biscuits flavoured with cumin seed (Zeera) for that extra boost of
flavour. The perfect snack for just about anywhere – Jeffs.

SIXER

Think Square is boring? Then what you need is a Sixer. This six-sided, salted delight
cuts out the boring from a biscuit. A unique shape coupled with an equally unique
crunchy, munchy, salty taste that leaves you asking for more!

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CHEESELINGS

For the love of cheese and only cheese! Parle pulls out
‗Cheeselings‘ from its pool of innovative products. It‘s a
baked snack, light on tongue and high on its Cheesecious
taste. Its fluffy form makes it very crunchy yet it actually
melts in your mouth, leaving behind the lingering flavor of
cheese. Each bite opens the doors to that nostalgic feel
everyone would love to savor. Once tried, we bet you will
become a fan of Cheeselings. So, what are you waiting for?
Come, join the ever- increasing Cheeseling Fan Club and
Parle will make sure your favorite snack reaches you most
conveniently.

PARLE‟S WAFERS

Presenting Parle's Wafers. Made with the choicest of handpicked potatoes, it's lip -
smackingly delicious, delightfully crunchy and comes in four exciting flavours –

Masala Masti, Red Chilli Achaar, Classic Salted, Aloo Chaat, Cream and Onion, and
Tangy Tomato. Grab one. Or grab‘em all. Whenever you want, wherever you please.
We're sure you'll enjoy it from the very first chip till the very last.

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FULLTOSS

"Imagine you are playing for Indian

cricket team; we need 6 runs from the
last ball. An attempted Yorker turns out
to be a full toss. You lift your bat, swing
it hard and the ball disappears in the
crowd. It‘s a six!!! Felt the joy? This is
how you would feel after each bite of
Parle‘s FullToss. What adds more
excitement in any tale are its twists,
hence its shape is powered packed with
masaledar Karare twists. Just open a
pack of this lip smacking –scrumptious snack and add some spice in your day to day
moments. It‘s perfect for every occasion and each craving.

Available in exciting flavours - Masala Munch, Masala Kachori, Jhalmuri Kolkata

Bhel, Green Mango Chatni, Tangy Pickle, and now you can try the new Tomato
flavour.

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Sales & Financial Performance

38
 Parle Agro‘s online sales grow 300% in a month, beverage segment
expected to lead revenue. In a conversation with BestMediaInfo.com, Nadia Chauhan,
JMD and CMO, Parle Agro, talks about the growth strategy of the company and how
lockdown and the Covid 19 pandemic have thrown all projections out of the window

Though e-commerce has always been a part of Parle Agro‘s sales

channels, it did not offer significant growth opportunities for the company until now.
In a conversation with BestMediaInfo.com, Nadia Chauhan, JMD and CMO, Parle
Agro, said the company has seen its e-commerce sales jumping by 300%.

―Online retail has emerged as the next best and effective mode of
business. Our online sales through e-commerce grew by 300% compared to the same
last month. It has definitely provided business agility.‖

Financial performance of parle

BALANCE SHEET OF MAR MAR MAR MAR MAR

PARLE INDUSTRIES (in Rs. 20 19 18 17 16
Cr.)

12 12 12 12 12
months months months months months

EQUITIES AND LIABILITIES

SHAREHOLDER'S FUNDS

Equity Share Capital 14.00 14.00 14.00 14.00 14.00

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TOTAL SHARE CAPITAL 14.00 14.00 14.00 14.00 14.00

Reserves and Surplus 6.76 6.71 5.76 5.75 5.71

TOTAL RESERVES AND 6.76 6.71 5.76 5.75 5.71

SURPLUS

TOTAL SHAREHOLDERS 20.76 20.71 19.76 19.75 19.71

FUNDS

NON-CURRENT
LIABILITIES

Long Term Borrowings 0.00 0.00 0.00 0.00 0.00

Deferred Tax Liabilities [Net] 0.08 0.00 0.00 0.00 0.00

Other Long Term Liabilities 0.03 0.03 0.00 0.00 0.00

Long Term Provisions 0.00 0.00 0.00 0.00 0.00

TOTAL NON-CURRENT 0.10 0.03 0.00 0.00 0.00

LIABILITIES

CURRENT LIABILITIES

40
Short Term Borrowings 0.00 3.00 0.00 0.00 0.00

Trade Payables 2.46 0.94 0.07 0.00 0.04

Other Current Liabilities 4.67 0.75 0.06 0.09 0.00

Short Term Provisions 0.00 0.00 0.00 0.00 0.03

TOTAL CURRENT 7.13 4.69 0.13 0.09 0.07

LIABILITIES

TOTAL CAPITAL AND 28.00 25.43 19.89 19.85 19.78

LIABILITIES

ASSETS

NON-CURRENT ASSETS

Tangible Assets 3.46 2.81 2.53 0.03 0.05

Intangible Assets 0.00 0.00 0.00 0.00 0.00

Capital Work-In-Progress 0.00 0.00 0.00 0.00 0.00

Other Assets 0.00 0.00 0.00 0.00 0.00

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FIXED ASSETS 3.46 2.81 2.53 0.03 0.05

Non-Current Investments 0.00 0.00 0.00 0.00 0.00

Deferred Tax Assets [Net] 0.00 0.02 0.03 0.04 0.04

Long Term Loans And Advances 0.03 0.03 0.00 0.00 17.23

Other Non-Current Assets 0.00 0.00 0.00 0.65 0.65

TOTAL NON-CURRENT 3.49 2.86 2.56 0.72 17.97

ASSETS

CURRENT ASSETS

Current Investments 0.00 0.00 0.00 0.00 0.00

Inventories 18.18 17.97 17.23 17.23 0.00

Trade Receivables 2.51 2.51 0.07 0.05 0.06

Cash And Cash Equivalents 0.67 0.02 0.02 0.26 0.23

Short Term Loans And Advances 0.00 0.00 0.00 0.00 1.52

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OtherCurrentAssets 3.14 2.05 0.01 1.58 0.00

TOTAL CURRENT ASSETS 24.50 22.56 17.33 19.13 1.81

TOTAL ASSETS 28.00 25.43 19.89 19.85 19.78

OTHER ADDITIONAL
INFORMATION

CONTINGENT LIABILITIES,
COMMITMENTS

Contingent Liabilities 0.00 0.00 0.00 0.00 0.00

CIF VALUE OF IMPORTS

Raw Materials 0.00 0.00 0.00 0.00 0.00

Stores, Spares And Loose Tools 0.00 0.00 0.00 0.00 0.00

Trade/Other Goods 0.00 0.00 0.00 0.00 0.00

Capital Goods 0.00 0.00 0.00 0.00 0.00

EXPENDITURE IN FOREIGN

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EXCHANGE

Expenditure In Foreign Currency 0.00 0.00 0.00 0.00 0.00

REMITTANCES IN FOREIGN
CURRENCIES FOR
DIVIDENDS

Dividend Remittance In Foreign -- -- -- -- --

Currency

EARNINGS IN FOREIGN
EXCHANGE

FOB Value Of Goods -- -- -- -- --

Other Earnings -- -- -- -- --

BONUS DETAILS

Bonus Equity Share Capital -- 10.50 10.50 10.50 10.50

NON-CURRENT
INVESTMENTS

Non-Current Investments Quoted -- -- -- -- --

44
Market Value

Non-Current Investments -- -- -- -- --
Unquoted Book Value

CURRENT INVESTMENTS

Current Investments Quoted -- -- -- -- --

Market Value

Current Investments Unquoted -- -- -- -- --

Book Value

45
SWOT Analysis

46
SWOT analysis is the procedure by which a firm can identify its internal Strengths
(S), Weaknesses (W), Opportunities (O) and Threats (T).

Strength , Weakness , Opportunity , and Threat are the four tools for a individual
or group or organisation to grow , improve and polish it‘s skill. Parle Product Ltd.
Has been highlighted below which covers all the criticality of the project :

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Strengths:

 Parle Brand
 Diversified Product range
 Extensive distribution network
 Low and mid price range
 Catering to mass
 Better understanding of consumer psyche

Weakness:

 Dependence on retailers & grocery Stores for displaying diversified Parle

Products on shelf, induce impulsive buy

Opportunities:

 Estimated annual growth of 20%

 Low per capita consumption
 Changing consumer preference
 Increasing demand for sugar free
 Diet biscuit

Threats:

 Hike in cost of production due to hike in raw material cost.

 Increase distribution cost.
 Local bakery product.
 Entry of various new entrant

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 PART - III:

RESEARCH WORK

49
OBJECTIVE

50
To study marketing strategy of parle in detail.

To understand the concept of marketing clearly by means of Parle

biscuit demand analysis.

To find out the marketing strategy used by the Parle.

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Theory & Models related with
Problem/ Marketing Mix

52
MARKETING MIX OF PARLE PRODUCTS
Marketing professionals and specialist use many tactics to attract and retain their
customers. These activities comprise of different concepts, the most important one
being the marketing mix. There are two concepts for marketing mix: 4P and 7P. It is
essential to balance the 4Ps or the 7Ps of the marketing mix. The concept of 4Ps has
been long used for the product industry while the latter has emerged as a successful
proposition for the services industry.

The 7Ps of the marketing mix can be discussed as:

Product - It must provide value to a customer but does not have to be tangible at the
same time. Basically, it involves introducing new products or improvising the existing
products.

Price - Pricing must be competitive and must entail profit. The pricing strategy can
comprise discounts, offers and the like.

Place - It refers to the place where the customers can buy the product and how the
product reaches out to that place. This is done through different channels, like
Internet, wholesalers and retailers.

Promotion - It includes the various ways of communicating to the customers of what

the company has to offer. It is about communicating about the benefits of using a
particular product or service rather than just talking about its features. The company
has not yet started using much of its advertising budget of Rs 5-10 crore for each
brand and will launch above-the-line advertising campaigns shortly.

People - People refer to the customers, employees, management and everybody else
involved in it. It is essential for everyone to realize that the reputation of the brand
that you are involved with is in the people‘s hands.

Process - It refers to the methods and process of providing a service and is hence
essential to have a thorough knowledge on whether the services are helpful to the

53
customers, if they are provided in time, if the customers are informed in hand about
the services and many such things.

Physical (evidence) - It refers to the experience of using a product or service. When a

service goes out to the customer, it is essential that you help him see what he is
buying or not. For example- brochures, pamphlets etc serve this purpose.

54
PROCESS LAYOUT OF PARLE PRODUCTS LTD.

PARLE G is made at parle products ltd. at vile parle. First of all the parle products
buys RAW MATERIAL from the various suppliers and stored into the store room.
This raw material is then sent to laboratory for testing and after testing only it is used
for manufacturing. The raw material consist of Wheat flour, Sugar, Partially
hydrogenated edible vegetable oils, Invert syrup, Leavening agents (503 Baking
powder) Milk, solids Salt Emulsifiers (E 322 or E 471 or E 481) and Dough
conditioners (E 223).

Such a mixture of raw material is taken and mixed into STEPHAN MIXTURE, which
is high power mixture machine. Specially made for mixture of dough, from which the
mixture is passed to molder called ROTARY MOULDER. Through that molder
approximately 10,000 come out in a minute. Molder had 260 cups fitted in it which
gives shape to the biscuits and an impression embossed on it of parle-g.

From rotary molder the dough is passed through a 260 feet long OVEN which is
approximately 340* c. In oven there are three stages to be followed –

 Removal of moisture.

 Building the structure of biscuits.

 Colorings of biscuits take place.

55
From oven the hot biscuits are placed on the COOLING CONVYOR, which is 260
feet long and the biscuits continues to run on it for 5 to 7 minutes so that the biscuits
become cool and all the moisture that biscuits contain gets evaporated. And because
of the above reason the factory has ―S FLOW LAYOUT‖ in the factory.

The conveyor continues to move to COUNTING UNIT where biscuits are counted
and seen that it is going on properly or not. The conveyor continues till the biscuits
reach the STALKING TABLE at which the biscuits are packed in very orderly
manner.

From cooling conveyor sum biscuits are diverted through AUTO FEEDING
MACHINE to another stalking machine where packing is done. From stalking table
the biscuits are moved on conveyor to MULTI PACK WRAPPING MACHINE were
16 biscuits are packed into a regular PARLE G wrapper so that the weight of 16
biscuits comes up to 100 grams.

Then 24 packets of PARLE G biscuits are packed into a POLY BAG. And after
packing it into poly bag it is sent to SEALING MACHINE where it is sealed, Then it
is sent to CORRUGATE BOX SECTION in which 6 poly bags are placed and then
the boxes are kept on conveyor and sent to DISPATCH SECTION from where the
biscuits are sent to various places in India and all over the world.

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. Every
batch of biscuits & confectioneries are thoroughly checked by expert staff, using the
most modern equipment.

INVENTORY

The inventory of the company that is the raw material is of a week. They store such
inventory in store room and then are sent for testing in laboratory and after testing it is
sent for production.

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SHIFTS

There is nearly 10,000 employees working in the company and are working in three
shifts.35,000 tons of biscuits are manufactured in a day of one particular product, and
there are such nine product manufactured in the factory.

WASTAGES

There are two type of wastage in factory. First is the waste materials fallen on ground.
Such waste material is of 1% which is marginal and acceptable which goes into total
waste. Second types of waste are the biscuit collected in tray of the multi-pack
wrapping machine, since these biscuit are broken they are not packed and sold to the
customer but collected in other tray and sold as broken pieces and sold for less price
for cattle feeding.

LOOSE BISCUIT

On the stalking table one to two rows of baked biscuits are kept aside for selling it as
loose biscuits. They are normally assumed to be damaged biscuits but they are not
damaged or broken but company keep such loose packets of biscuits to sell it to the
local people for marginal rate of 33 Rs / kg.

FOLLWING ARE THE MACHINERY USED IN MANUFACTURING

STEPHEN MIXER

The Stephan TK Mixer is an ideal component to fully automatically feed the down-
stream make- up equipment for biscuits, bread, rolls, buns, cake, sweet goods, cookies
and crackers.

ROTARY MOULD

 structure in corrosion-proof; anodized aluminium and Aisi 304 stainless steel

 satin stainless steel paneling

 swivel wheels and support feet

 trays loader with automatic chain feed

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  feeder roller anodized aluminum

 1.00 kW speed validator

COOLING CONVEYOR

The biscuit coming from stripping conveyor is directed on to the cooling conveyor to
transfer the heat in the biscuit to atmospheric air as it is passing on it. The total travel
of the cooling conveyor is 1.5 times the oven length. As per need specifications it
need the travel of 150 ft.

LAMINATOR

Laminators are generally used for production of all kinds of hard biscuits, crackers
and cocktail snacks. With laminator it is possible to create a puffy pastry-like
structure, which is of decisive importance for the quality level and consequently for
the sales success. Laminating of Dough band improves the weight/volume ratio
considerably.

58
BISCUIT BAKING OVEN

The oven body consists of steel steam tight tunnel with equally divided zones of the
radiators. Stainless steel expansion joints are provided between these zones in order to
eliminate the expansion of the oven section. The inspection doors are provided for
inspection of the baking goods during the process.

Baking System:

The baking in the heating chamber takes place by radiators located under and above
the wire mesh band which distribute heat for uniform baking. The recirculation
heating gases of these radiators can be controlled for each zone separately. The closed
recirculation system is having slight vacuum so that combustion gases cannot enter
into the baking chamber. The ventilating fan is for circulation of the heating gases
through the recirculation system and thermostatically controlled burners provide the
set temperature of the heating gases.

ROTARY CUTTER

The single head rotary cutter prints fine design on a continuously fed dough sheet and
also cuts out the individual dough piece. The unit powered by 1.5KW helical geared
motor and speed controlled by AC frequency controller. Drive is given to cutting
roller only to accommodate different sizes of dies in this machine.

COUNTING UNIT

The counting unit counts and see that the biscuit making process is going fine or not,
i.e. as per the program set in the machine, program is set as per the grams required.
Generally 16 biscuits are taken by the counting unit so that it leads to 100 grams.

MULTIPACK WRAPPING MACHINE

This machine helps in wrapping the biscuits on the particular wrapper fixed on the
roller of the machine. The wrapper is feed into the machine and the sealing of the
wrapper is done by four heater roller, which is fitted on the machine. This heater

59
roller heat up the plastic and seals the packet. And at the same time the jaw cutter cut
the packet on the cutting edge marked i.e. as per the grams of the packet which is feed
in the automatic machine (100 – 120, 120 – 150, 150 -170, 170 - 190). The packets
coming out from the wrapping machine in a minute is programmed in computer and
can be changed as per the need.

POLY BAGS

Poly bags contain 24 packets of PARLE G biscuits in one poly bag. There are 4
workers employed on this section who take care of the work by putting 24 packets of
biscuits in the bag and forwarding it to sealing machine section.

SEALING MACHINE

The sealing machine has heater rod for sealing the poly bag in which 24 packet of
biscuit are placed, and it have a conveyer belt on other side so that when the poly bag
passes through the heater and get sealed then it is passed to the tapping machine.

TAPPING MACHINE

Six such poly bags are placed in one such corrugated box and the box is passed
through the tapping machine where are tapped and then sent through a long diversion
conveyer belt. This belt helps to transfer the box to the dispatch section directly. 36
boxes are arranged on pallet in the dispatch section, from where they are transferred
to the various dealers all over the India and worldwide.

Brand

The Parle Biscuit brands, such as, Parle-G, Monaco and Krack jack 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.

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Product Strategy

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. 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

Parle as a company has reached the maturity stage in its products life cycle; since
products such as parle-G, parle Monaco, parle Krack jack 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.

Parle hide and seek was introduced in 1998 with flavors 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

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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.

Packaging:

 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-G etc. Due to
increasing competition PARLE G now uses plastic wrappers for its
packaging. Parle- G comes in 8 different sizes: 25gms, 44gms,93.5 gms,
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.
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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.

PRICING MIX

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

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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.

Distribution 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.

Parle has a multi-channel marketing system since it uses more than two marketing
channels to reach all its customer segments.

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PROMOTION MIX

The marketing mix tools used by Parle are Sales promotion, Advertising, and Public
relations.

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 give away prizes.

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.
In1989, 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, are as 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.

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.

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Just a few months back a reminder TV commercial was launched for Parle-G where
the product is being called ‗hindustan ki takat‘ . 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.

Public Relations

Parle has done the following for enhancing public relations:

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 amajor
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.

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CONSUMER BEHAVIOUR

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 behaviour includes the knowledge about the consumer, his buying
motives & buying habits. 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.

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.

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.

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PERSONAL FACTORS

The factors whose intensity differs from person to person are together termed as
personal factors. They are as follows: -

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.

OCCUPATION - The buying behaviour 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 68abourer. 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 a bourer
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.

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

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.

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

Reference groups- parle hide & seek is targeted at the youth. So for this product
consumers are influenced by their friends and siblings.

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.

MAJOR COMPETITORS OF PARLE PRODUCTS LTD

The major competitors of parle products is Britannia, Sunfeast, Priya Gold, cadbury,
and others local brand.

Britannia

The company was established in 1892, with an investment of Rs.295. Initially,

biscuits were manufactured in a small house in central Kolkata. Later, the enterprise
was acquired by the Gupta brothers mainly Nalin Chandra Gupta, a renowned
attorney, and operated under the name of "V.S. Brothers." In 1918, C.H. Holmes, an
English businessman in Kolkata, was taken on as a partner and The Britannia Biscuit
Company Limited (BBCo) was launched. The Mumbai factory was set up in 1924 and
Peek Freans UK, acquired a controlling interest in BBCo. Biscuits were in big
demand during World War II, which gave a boost to the company‘s sales. The
company name finally was changed to the current "Britannia Industries Limited" in
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1979. In 1982 the American company Nabisco Brands, Inc. became a major foreign
shareholder.

Biscuits

The company's factories have an annual capacity of 433,000 tonnes. The brand names
of biscuits include VitaMarieGold, Tiger, Nutrichoice Junior,Good day, 50 50, Treat,
Pure Magic, Milk Bikis, Good Morning, Bourbon, Thin Arrowroot, Nice, Little
Hearts and many more.Tiger, the mass market brand, realised $150.75 million in sales
including exports to countries including the U.S. and Australia, or 20% of Britannia
revenues in 2006.

In a separate dispute from the shareholder matters, the company alleged in 2006 that
Danone had violated its intellectual property rights in the Tiger brand by registering
and using Tiger in several countries without its consent. Britannia claimed the
company found out that Danone had launched the Tiger brand in Indonesia in 1998,
and later in Malaysia, Singapore, Pakistan and Egypt, when it attempted to register
the Tiger trademark in some of these countries in 2004. Whilst it was initially
reported in December 2006 that agreement had been reached, it was reported in
September 2007 that a solution remained elusiv. In the meantime since Danone's
biscuit business has been taken over by Kraft, the Tiger brand of biscuits in Malaysia
was renamed Kraft Tiger Biscuits in September 2008.

Britannia initiated legal action against Danone in Singapore in September 2007. The
dispute was resolved in 2009 with Britannia securing rights to the Tiger brand
worldwide, and Danone paying Rs220 million to utilise the brand.

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 ITC

In July 2003, ITC forayed into the Biscuits market with the Sunfeast range of
Glucose, Marie and Cream Biscuits. Sunfeast's brand essence connotes happiness,
contentment, satisfaction and pleasure. In a span of 9 years, Sunfeast has well-
established presence in almost all categories of biscuits and is also a key player in the
pasta and instant noodles segments.

Sunfeast Biscuits straddle all segments of the market led by Dark Fantasy at the
premium end. High quality married with exciting innovations has helped drive this
category. Dark Fantasy Choco Fills has wowed the Indian consumer with its
innovative centre-filled format and high- quality packaging.

In addition, the launch of the Dream Cream range of biscuits in two exciting and
innovative dual cream formats further reinforces ITCs commitment to continuously
delight the consumer.

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 Priya Gold

Surya Food & Agro Ltd. was incorporated in November 1992 and commenced its
commercial operations of manufacturing & selling of biscuits under brand
―Priyagold‖ in October 1993. Over a period, we have established strong
manufacturing capabilities and have invested substantially in developing consumer
preference for our products. trademarks / brands ―Haq Se Maango‖ & ―Priyagold‖
have emerged as one of the most powerful brands in the FMCG sector. They are
committed to invest in brands, manufacturing capabilities, deliverables and
distribution strength.

They have three plants located in Greater Noida, Lucknow & Surat. & also outsource
some of our requirements to another plant located in Hyderabad. capacities have
reached 1,50,000 MT p.a., which along with strong brand building and distribution
capabilities have enabled us to command a sizable market share in the biscuit market
despite competition from well-established players in the industry.

After establishing foothold in biscuit industry, they continued to adopt strategy to

identify and commercialize profitable growth opportunities by leveraging established
brand and distribution network. Following this strategy, they diversified into
manufacturing of ―fruit juices‖ through wholly owned subsidiary ―Surya Fresh Foods
Ltd.‖ in January 2006. The manufacturing facility is located at Greater Noida, U.P.
We have consciously invested in creating markets for fruit juices and have established
brands such as ―Fresh Gold‖ & ―Treat‖.

strategy of strengthening the brands especially the umbrella brand ―Priyagold‖ has
resulted in creating immense brand recall value. They are continuing with our effort
of strengthening the brand with a scientific approach, which will result in growth of
customer base, price premium, consumer loyalty which is expected to result in
increased earning and ultimately enhancing enterprise value of company.

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POSITIONING STRATEGY OF PARLE

The relevance and importance of conventional marketing, especially in the fast

moving consumer goods category, has slid down to give way for more aggressive
market savvy solutions that can revolutionise the way products sell these days.

While dealer productivity and market penetration are still important in the overall
marketing activity, the brand has to evolve and revolve in a different orbit "" it has to
reposition itself if it really wants to make a difference in the highly competitive
market.

Positioning a product firmly in the consumer's mindset has been one of the major
marketing challenges that has enamoured many a marketing guru.

As organisations are re-engineering themselves to be more productive, products also

need to reposition themselves if they want to stay ahead in the marketing war game.

Consequent to the changing parameters, both tangible and intangible, if the products
do not respond and reorient themselves to the new environment, they run the risk of
becoming obscure.

The point here is that however much financial wizardry an organisation might deploy,
however much R&D they get into, however much technology they enjoy, unless
brand building takes the front seat with clear-cut strategies that predispose the product
behaviour, the chances of creating a winner is quite remote.

The name of the marketing game is therefore repositioning your brand and thereby,
the competition. When the stakes are high and when you are not able to take the
competition head- on, the only way to survive and build on an equity is through
repositioning.

The success of Shaktiman from Parle-G again has tremendous scope in retailing,
merchandising and event marketing. May be this was a deliberate strategy from Parle
to reposition its biscuits with a shakti(power) aura against the much hyped biscuit
brands. Parle-G eventually might use the Shaktiman umbrella strategy to replicate the
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success for its other brands in these markets. Small wonder then, that Parle-G, with its
mass market appeal and distribution in over 4.25 lakh retail outlets, is today the
number one biscuit brand in the world.

PARLE AGRO

Parle Agro is an Indian private limited company that owns several popular brands
including Frooti, Appy, LMN, Hippo and Bailley.Several Parle soda brands including
Citra, Thums Up, Limca, Gold Spot and Maaza were sold to Coca Cola in 1993 for a
reported $40 million. At the time of sale, the Parle brands together had a 60% market
share in the industry. The brand was strong in South India. Citra was phased out by
2000 to make way for Coke's international brand, Sprite.

Parle Agro commenced operations in 1984. It started with beverages, and later
diversified into bottled water (1993), plastic packaging (1996) and confectionary
(2007). Frooti, the first product rolled out of Parle Agro in 1985, became the largest
selling mango drink in India.The original PARLE Group was amicably segregated
into three non-competing businesses. But a dispute over the use of "Parle" brand
arose, when Parle Agro diversified into the confectionary business, thus becoming a
competitor to Parle Products. In February 2008, Parle Products sued Parle Agro for
using the brand Parle for competing confectionary products. Later, Parle Agro
launched its confectionery products under a new design which did not include the
Parle brand name. In 2009, the Bombay High Court ruled that Parle Agro can sell its
confectionery brands under the brand name "Parle" or "Parle Confi" on condition that
it clearly specifies that its products belong to a separate company, which has no
relationship with Parle Products.

PARLE AGRO is a trusted name in the Indian beverage industry and has been
refreshing India since more than two decades with leading brands like Frooti, Apply
Classic, Apply Fizz, Bailley, Saint Juice, LMN & recently launched Grappo Fizz.
Parle Agro Pvt., Ltd. manufactures, distributes, sells, and exports fruit drinks in India
and internationally. The company offers fruit and milk drinks, packaged water, and
apple and mango drinks in polyethylene terepthalate (PET) bottles and containers,
74
and tetra packs. The company also operates a health and fitness studio for woman.
The company distributes its products through franchisees. Parle Agro Pvt., Ltd. Was
founded in 1985 and is based in Mumbai, India.

Parle Agro has been a trusted name in the beverage industry providing wholesome
and healthy agro-based drink brands. It has successfully launched some of India's
leading beverages like Frooti, Appy etc.

FUNCTIONAL AREA :-

Administration, Market, Purchasing, Production and Quality Department.

SIZE OF THE ORGANIZATION :-

MANPOWER :- PARLE Group has a manpower strength of over 2500 employees,

including over 400 professionals.

TURNOVER :- The PARLE Group turnover is over 950 crore in 200.

MARKETING STRATEGY OF FROOTI

For those who have seen it

carefully, the new brand
campaign for Frooti reveals
a subtle shift. It shows the
newly signed brand
ambassador Shahrukh Khan
glugging the mango drink
from a PET bottle, rather
than a tetra pack, which is
no longer as respected as it
used to be and which also made Frooti most instantly identifiable when it was
launched for the first time.

75
The Rs 1500 crore brand is ready to move to its next phase of growth, in a world
filled with competitors like Coca-Cola's Maaza and PepsiCo's Slice on the one hand
and carbonated beverages on the other. For instance getting on board one of the most
recognised faces is being touted as the game changer for the 27-year old homegrown
brand considering it has never resorted to getting a celebrity endorser before.

Feels marketing consultant Harish Bijoor, "Frooti's big strength is the fact that it has
been around for donkey's years. It has become generic to the category altogether."
This is a strength and a weakness as well, in his view, which the brand has to manage
swiftly and carefully.

Nadia Chauhan Kurup, MD and CMO, Parle Agro agrees that the biggest challenge
has been to get the magic back for a brand as old as Frooti. It's trying to combat some
part of that challenge by getting the recognised face of Shahrukh Khan onboard.
Frooti seems to be the last in the race to join the celeb-band wagon: the other players
in the mango beverage space already have their ambassadors: Maaza features the
pranks of Imran Khan and Parineeti Chopra while Slice has Katrina Kaif 's sensuous
Aam Sutra moves.

The recent commercial shows a bunch of kids in a football field watching Shahrukh
Khan gulping Frooti. He looks around when he is done and what he sees is a bunch of
young adults whose longing for Frooti apparently has them lapse into a childlike state
of wonder. He simply asks them 'what?' which snaps their reverie.

Shares Sajan Raj Kurup, founder and creative chairman, Creativeland Asia, "One of
the key tasks in the brief was to capture the feel of relishing a bottle of Frooti and up
the appetite quotient for the beverage." Even as the initial thoughts read more like 'oh
no not again', Kurup wanted to create drool value purely through human emotions,
reactions and expressions. Prakash Varma of Nirvana Films has directed the film. The
team was very clear on how to use the celeb power of Khan without letting the brand
get ambushed.

76
Shares Nadia Chauhan Kurup, "The campaign is breaking not just the category clutter
or the advertising clutter, but it is even breaking the celebrity endorsement clutter." It
is not often that SRK has been used in such a way where the only dialogue he gets to
mouth is 'what?'" she says. When asked if he charged any lesser because he was made
to talk less, she grins and shares how she wishes that it worked like that in which case
"we would have just kept him silent." According to Satbir Singh, managing partner &
chief creative officer, Havas Worldwide, "The usually talkative SRK quietly polishing
off a bottle of Frooti makes it stick. Most agency and marketing teams would have
him mouth a hundred words in praise of the brand."

Studies have shown that culturally, kids and women prefer mango drinks just as the
7
9
core audience for cola/ caffeine drinks (Mountain Dew, Red Bull etc) is men. Alpana
Parida, president, DY Works feels that this campaign reaches out to all ages and
appeals to the child in men, to kids themselves and certainly the mothers who are both
shoppers and consumers.

It lifts the humble Frooti from a kiddie realm and will probably do more for the brand
than all its past campaigns put together. According to Jitender Dabas, head of
strategic planning, McCann Worldgroup, "A mango drink is about the pleasure of
consuming mango and with this campaign Frooti seems to be coming back to its
core." But is this the new positioning or just a commercial, is what he would like to
know.

77
Along with the brand film, the marketing plan includes outdoors, BTL, mall
activation, visibility at retail outlets (POP) and strong digital presence. Interestingly
the first leg of this campaign was launched on the social media and as per Kurup in
less than a week, its total timeline deliveries amounted to 52 million. It managed to
garner over 8 million twitter handles and a whopping count of 80,000 tweets. Frooti's
YouTube channel views increased by 2.5 million and subscribers increased by 600%.

Even as the brand spends 40% more on it's marketing this year compared to the last, it
8
will have to quickly address one of its biggest weak spots — its relatively feeble
1
presence in the returnable glass bottle (RGB) space. The returnable glass bottle is at
the top in the pecking order of the caste system of packaging of soft drinks followed
by the PET bottle and then the tetra pack at the bottom-rung, shares Bijoor.

This has been a pain-point that the brand is trying to tackle on a war-footing. Agrees
and shares Nadia Chauhan Kurup, "Currently there are only four manufacturing plants
for RGB which would eventually go up to 20 plants. The bottle form is one of the
highest penetrated packing formats and there is a huge market for it." The glass bottle
format has been launched in a phased way in some markets and would be increased
soon as manufacturing capacity increases.

78
RESEARCH METHODOLOGY

79
“Research methodology” is the specific procedures or techniques used to identify,
select, process, and analyze information about a topic. In a research paper, the
methodology section allows the reader to critically evaluate a study‘s overall validity
and reliability. The methodology section answers two main questions: How was the
data collected or generated? How was it analyzed?

―Marketing Research‖ is a key to evaluation of successful marketing strategy and

programmes‖. It is an important tool to study buyer behavior, changes in consumer
life style and consumption patterns brand loyalty and analysis the competitors
products positioning M.R. is also useful to help create and enhance equity.

Research Design:

The research design refers to the overall strategy that you choose to integrate the
different components of the study in a coherent and logical way, thereby, ensuring
you will effectively address the research problem; it constitutes the blueprint for the
collection, measurement, and analysis of data. Note that your research problem
determines the type of design you can use, not the other way around!

The essentials of action research design follow a characteristic cycle whereby initially
an exploratory stance is adopted, where an understanding of a problem is developed
and plans are made for some form of interventionary strategy. Then the intervention is
carried out (the action in Action Research) during which time, pertinent observations
are collected in various forms. The new interventional strategies are carried out, and
the cyclic process repeats, continuing until a sufficient understanding of (or
implement able solution for) the problem is achieved. The protocol is iterative or
cyclical in nature and is intended to foster deeper understanding of a given situation,
starting with conceptualizing and particularizing the problem and moving through
several interventions and evaluations.

80
TYPES OF RESEARCH

EXPLORATORY RESEARCH :

Exploratory research is done to know why & how certain phenomenon occurs,
how consumer evaluate quality, tangible features, replacement policy warranty.

DESCRIPTIVE RESEARCH :

Descriptive research is carried out to describe a market characteristics ex. To

understand the consumer buyer behavior.

CAUSATIVE :

Causative research is done to establish cause and effect relationship. ex. The
influence of income and life style on purchase decision.

I have done exploratory research during my summer internship project at Parle

company.

Sources of Data Collection:

There are two sources of data collection.

Primary sources: The data are collected directly from the universe by conducting
interviews, etc. these are the original sources from which the researcher directly
gathers data which are not previously referred.

Secondary sources: The data are collected from the secondary sources such as
magazines, journals, etc. These sources consist of already variable data in the form of
statements, and reports, which may include sensory reports, financial statements of
the company, reports of governments departments, etc.

81
Sampling Plan:

It includes all the information about universe, sample size, sample unit, sampling
method, sampling procedure, and contact method, sampling frame, data processing
and place of information.

 Sampling Method: Convenience Sampling

 Sample Size: 100

 Sampling Area: Modinagar

Data Collection Method:

There are several methods of data collection. In this primary data and secondary data
both has been used as method.

The primary sources of data collection are done through –

 Observation
 Interviewing
 Questionnaire

Observation is a mode of primary data collection through which we directly get the
data from a universe and based on that data one can carry on the research.

Interviewing is another mode of direct data collection, which provides complete

information about the universe.

Questionnaire is the method of data collection, which is very much popular,

particularly in big cities.

Data collection is an elaborate process in which the researches makes a planned

research for all relevant data. Data is the foundation of all market research 100.
Data are facts may be obtained from several sources. The sample size of this
method is Data can be classified as:

82
  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 100 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 to collected from different wholesale & retail outlets of biscuit
namely

 Shop
 Confectioners
 Kirana and general stores.
 Consumers

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

83
of collection of primary data, In this project, researcher had to undergo a lot of
Field Work.

For the purpose researcher has 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.

Data Collection Tool: Convenience Sampling

Data Analysis Tools:

1.) Size of products

2.) Packing Cartons (No. of Carton required)
3.) MRP per/unit
4.) Landing cost per/unit
5.) Bar Graph

84
DATA ANALYSIS AND
INTERPRETATION

85
 For Retailer

1. What are the brands of biscuit can you recall in your shop?

5
0

4
5

4
0

3
5

3
0

2 Parle ITC Priya Gold

Interpretation:

Parle 45%

ITC 35%

Priya Gold 20%

In this survey 45% consumer recall parle biscuit and 35 % for ITC and 20 % for Priya
Gold

86
 2. What is frequency of Parle biscuit you take from the distributer?

60

50

40

30

20

10

0
once ia a week twice in a week thrice in a week

Interpretation:

Once in a week 40

Twice in a week 50

Thrice in a week 10

In this survey frequency of consumer take thrice in a week.

87
 3. What is the quality of Parle biscuit you think?

80

70

60

50

40

30

20

10

0
Very Good Good Average

Interpretation:

In this survey the most of the consumer think about quality is very good.

88
 4. What attribute do PARLE G belonged?

60

50

40

30

20

10

0 Taste Glucose Cheap

Interpretation:

As per this survey the Glucose attribute is most suitable for PARLE G.

89
 5. Which age group mostly prefer Parle biscuit?

70

60

50

40

30

20

10

0
above 45 year 12-30 year 4-10 year

Interpretation:

As per this survey there are all age groups preferred Parle biscuit. Such as above 45
year 65% , 12-30 year20% and 4-10 year 15%.

90
 6. Have you any complaint about biscuit?

100

90

80

70

60

50

40

30

20

10

0
YES NO

Interpretation:

Yes 8%

No 92%

In this survey 92% of the consumer says they have no any complaint and 8 %
consumer have complaint relating with pricing , quantitiy of biscuits.

91
 For Customer

Que 1:- Are you a customer of Parle?

YES NO

75 25

NO

YES

0 10 20 30 40 50 60 70 80

Interpretation:

By the Bar graph we can analysis that 75% of the people in the society are the
customer of Parle.

92
Que2:- Do you like the price of the products of Parle?

YES NO

60 40

NO

YES

0 10 20 30 40 50 60 70

Interpretation:

By the Bar graph we can analysis that 60% of the customers of Parle are satisfied by
the price of the products.

93
Que3:- How do you feel about the advertisement of parle‟s?

EFFECTIVE INEFFECTIVE

80 20

Ineffective

Effective

0 10 20 30 40 50 60 70 80 90

Interpretation:

By the feedback of the customers of Parle they are satisfied with the advertisement
and the promotional activities.

94
Que4:- Do you think a snacks of Parle delivers the value of money?

YES NO

70 30

NO

YES

0 10 20 30 40 50 60 70 80

Interpretation:

70% of the customers of parle are satisfied that product of Parle delivers the value of
money, but 30% of the customers are not satisfied by the product quality as compared
to price.

95
Que5:- Are the products of Parle easily available in the market?

YES NO

90 10

NO

YES

0 10 20 30 40 50 60 70 80 90 100

Interpretation:

By the data we can analysis that the products of Parle are easily available in the
market.

96
Que6:- What do you feel about the taste of the products of Parle?

EXCELLENT GOOD SATISFACTORY

60 30 10

SATISFACTORY

GOOD

EXCELLENT

0 10 20 30 40 50 60 70

Interpretation:

By the response of the customers of Parle 30% of them rate the taste as Good, 60% of
the customers rate the product as excellent and only 20% of them rate the product as
satisfactory.

97
Que7:- Do you feel the products placed in the market to be qualitative enough?

YES NO

80 20

NO

YES

0 10 20 30 40 50 60 70 80 90

Interpretation:

By the Bar graph we make it out that around 80% of the customers feel that the
quality offered by Parle is good.

98
Que8:- Have you ever come through any promotional offers by Parle?

YES NO

25 25

NO

YES

0 10 20 30 40 50 60

99
DATA FINDINGS

100
 In this survey 45% consumer recall parle biscuit and 35 % for ITC and 20 %
for Priya Gold.
 In this survey frequency of consumer take thrice in a week.
 In this survey the most of the consumer found about quality is very good.
 As per this survey the Glucose attribute is most suitable for PARLE G.
 As per this survey there are all age groups preferred Parle biscuit. Such as
above 45 year 65%, 12-30 year20% and 4-10 year 15%.
 In this survey 92% of the consumer says they have no any complaint and 8 %
consumer have complaint relating with pricing, quantitiy of biscuits.
 By the Bar graph we can analysis that 75% of the people in the society are the
customer of Parle.
 By the Bar graph we can analysis that 60% of the customers of Parle are
satisfied by the price of the products.
 By the feedback of the customers of Parle they are satisfied with the
advertisement and the promotional activities.
 70% of the customers of parle are satisfied that product of Parle delivers the
value of money, but 30% of the customers are not satisfied by the product
quality as compared to price.
 By the data we can analysis that the products of Parle are easily available in
the market.
 By the response of the customers of Parle 30% of them rate the taste as Good,
60% of the customers rate the product as excellent and only 20% of them rate
the product as satisfactory.
 By the Bar graph we make it out that around 80% of the customers feel that
the quality offered by Parle is good.

101
LIMITATIONS

102
 We considered at Indore region only because of limited time duration.
 Due to this, our sample size is only 100, which is not very large.
 Less use of internet.
 Respondent may give biased answer due to some lack of information about
other brands.
 Finding of the study are based on the assumption that the respondents have
given correct information.
 All the respondents could not fill their questionnaire on their own due
problem of time and lack of positive behaviour.
 The actual information was not disclosed.

103
SUGGESTIONS

104
 Company should start a program for the loyal retailers and wholesalers to reduce
their complaints by providing timely supply and replacement. This will help in
increasing their sales.
 Salesmen should be properly dressed and should have good communication
skills to effectively promote the new products recently launched, by making sure
that the product reaches each and every retailer and also increase the visibility of
the products by arranging the product clearly on the shelf or rack and show its
prominence.
 To increase the number of stock keeping units {SKU} available in the retailers
store. Each salesman should stress the retailers to keep the maximum SKUs and
to maintain these SKUs throughout. With this, the replacement of the damaged
and expired biscuits should be prompt and without any hassles, so that retailer
can be saved from the loss of the expired and damaged goods.
 Company should adopt innovative packaging techniques, as they have their own
packaging unit as consumers are highly attracted towards new packaging.
 The company should take proper measures that the schemes and offers are not
gulped by the middlemen, and that it benefits the retailers and customers.

105
CONCLUSION

106
 It was concluded that Parle is the good preference of both the customers and
retailers (Organized and unorganized both) because of its price and brand
image.
 Even in today‘s times when multinationals are beefing up their operations and
trying to change the dynamics of the market, Parle ‘s hide & seek and sticks
numerous unoposition is unchallenged. Parle wafers is going from strength to
strength. Trust, relevance, affordability are its hallmarks, which have
withstood pressures from the hyper-competitive marketplace.
 The Parle confectionery brands, such as, Melody, Poppins, Mangobite enjoy a
strong imagery and appeal amongst consumers across the world. . This can be
seen from the success of its new brands such as pickles etc.

 Parle Products Pvt Ltd., is now lagging in services to retailers because of

improper supply and distribution in some areas and competitors taking
advantage of these points.

107
BIBLIOGRAPHY

108
 Principal and practices if personnel management of C.B. Memoria.

 Human resource and personal management – Aswathappa K.

 Robbins P. Stephens, Organizational Behavior, Prentice Hall, 7th

Edition, Chapter 16, pages 636-641.

 Koontz Harold & Weihrich Heinz, Essentials of Management, Mc

Graw Hill, 5th Edition, Chapter 11, pages 217-245.

 Decenzo A. David & Robbins P. Stephen, Personnel/HR

Management, Prentice Hall, 3rd Edition, Chapters 6,7 & 8, pages 117-

209.

Journals

 Ravi Kiran – House Journal of parle group

Websites:

Google search: (www.google.com)

wikipedia search: (www.wikipedia.com)

Parle Website:-www.parleproducts.com

109
ANNEXURE

110
QUESTIONNAIRE

For Retailers

NAME:-…………………………………………..............................................
AGE:-…………….
GENDER:-………………………………………….
Email.ID:-………………………………………….............................................

1. What are the brands of biscuit can you recall in your shop?
a) Parle b) ITC c) Priya gold

2. What is frequency of Parle biscuit you take from the distributer?

a) Once in a week b) Twice in a week c) Thrice in a week

3. What is the quality of Parle biscuit you think?

a) Very good b) Good c) Average

4. What attribute do PARLE G belonged?

a) Taste b) Glucose c) Cheap

5. What attribute do PARLE G belonged?

a) Above 45 years b) 12-30 years c) 4-10 years

6. What attribute do PARLE G belonged?

a) Yes b) No

111
 For Consumers

NAME:-…………………………………………..............................................
AGE:-…………….
GENDER:-………………………………………….
Email.ID:-………………………………………….............................................

1.) Are you a customer of Parle?

a) Yes b) No

2.) Do you like the price of the products of Parle?

a) Yes b) No

3.) How do you feel about the advertisement of parle‘s?

a) Effective b) Ineffective

4.) Do you think a snacks of Parle delivers the value of money?

a) Yes b) No

5.) Are the snacks of Parle easily available in the market?

a) Yes b) No

6.) What do you feel about the taste of the snacks of parle?

a) Excellent b) Good c) Satisfactory

7.) Do you feel the products placed in the market to be qualitative enough?

a) Yes b) No

8.) Have you ever come through any promotional offers Parle? If so please share you
experience?

…………………………………………………………………………………………..

112