Parle-G

1Rural Market of PARLE-G

A Project On

RURAL MARKETTING OF PARLE-G

Submitted to

University of Mumbai

In the partial fulfillment of BMS/BMM Degree

By

GROUP MEMBERS ROLL NUMBERSSoheb Salim Patel 39Rameeza Merchant 35

Afsha SayedVinayak 43

Joshua Dsouza 07

Class: SYBMS Semester: IV Div: A

Studying at

Rizvi Education Society’s

Rizvi College of Arts Science &Commerce

Bandra (west), Mumbai-400050.

Academic Year: 2011-2012


DECLARATION

We Soheb, Rameeza, Afsha, Vinayak, Joshua Students of Class: SYBMS, Semester: IV, Div: A, Roll No:39, 35, 07, . Academic year: 2011-2012, studying at Rizvi College of Arts, Science & Commerce, hereby Declare that the work done on the project entitled RURAL MARKETING OF PARLE - G is true and any reference used in the project is duly acknowledged.

Date: Names & Signature of Students

Soheb

Rameeza

Afsha

Vinayak

Joshua


Parle-G or Parle Glucose is a brand of biscuits manufactured by Parle Products Pvt. Ltd. in India. As of 2011, it is the largest selling brand of biscuits in the world according to Nielsen. Primarily eaten as a tea-time snack, Parle-G is one of the oldest brand names in India. For decades, the product was instantly recognized by its iconic white and yellow wax paper wrapper with the depiction of a young girl on the front. Counterfeit companies have attempted to recreate and sell lower quality products of similar names with virtually identical package design. The "Parle" in Parle-G, is derived from the name of the suburb Vile Parle (originally a village called Parle), where the first Parle production factory was based. The "G" in the name Parle-G originally stood for "Glucose", though a later brand slogan also stated "G means Genius".

In 1929, while India was under British rule, a small company by the name of Parle Products emerged. A small factory was set up in Vile Parle (east) the suburb of Mumbai to manufacture sweets and toffees i.e. confectionery products (e.g. Melody, kachaa mango bite etc). A decade later it was upgraded to manufacture biscuits as well. Parle has been producing its flagship product Parle-G since the 1940s. Parle-G biscuits were earlier called 'Parle Glucose' Biscuits until 1980s.

The goal was to manufacture and sell sweets and candies. Since then, the Parle name has spread in all directions and has won international fame. Apart from the factories in Mumbai and Bangalore, Parle also has factories in Bahadurgarh, Haryana and Neemrana, Rajasthan. These are the largest biscuit and confectionery plants in the country. Additionally, Parle Products also has 10 manufacturing units and 75 manufacturing units on contract.

About the CompanyA cream colored yellow stripped wrapper with a cute baby photo containing 10 – 12 biscuits with the company’s name printed in Red and you know these are Parle-G biscuits. Times changed, variety of biscuits did come and go but nothing has changed with these biscuits. Yes, the size of their packing has definitely changed but for the consumers good as these are money savers pack. The Parle name conjures up fond memories across the length and breadth of the country. After all, since 1929, the people of India have been growing up on Parle biscuits & sweets. Initially a small factory was set up in the suburbs of Mumbai city, to manufacture sweets and toffees. The year was 1929 and the market was dominated by famous international brands that were imported freely. Despite the odds and unequal competition, this company called Parle Products, survived and succeeded, by adhering to high quality and improvising from time to time. A decade later, in 1939, Parle Products began manufacturing biscuits, in addition to sweets and toffees. Having already established a reputation for quality, the Parle brand name grew in strength with this diversification. Parle Glucose and Parle Monaco were the first brands of biscuits to be introduced, which later went onto become leading names for great taste and quality. For around 75 years, Parle have been manufacturing quality biscuits and

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

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

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

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

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

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

http://en.wikipedia.org/w/index.php?title=Parle_Products&action=edit&redlink=1

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


confectionery products. Over the years Parle has grown to become a multimillion-dollar company with many of the products as market leaders in their category. The recent introduction of Hide & Seek chocolate chip biscuits is a product of innovation and caters to a new taste, being India’s first ever chocolate-chip biscuits.

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

PARLE G - THE EVOLUTION!!! Parle-G has been a strong household name across India. The great taste, high nutrition, and the international quality, makes Parle-G a winner. No wonder, it's the undisputed leader in the biscuit category for decades. Parle-G is consumed by people of all ages, from the rich to the poor, living in cities & in villages. While some have it for breakfast, for others it is a complete wholesome meal. For some it's the best accompaniment for chai, while for some it's a way of getting charged whenever they are low on energy. Because of this, Parle-G is the world's largest selling brand of biscuits. Launched in the year 1939, it was one of the first brands of Parle Products. It was called Parle Glucose Biscuits mainly to cue that it was a glucose biscuit. It was manufactured at the Mumbai factory, Vile Parle and sold in units of half and quarter pound packs. The incredible demand led Parle to introduce the brand in special branded packs and in larger festive tin packs. By the year 1949, Parle Glucose biscuits were available not just in Mumbai but also across the state. It was also sold in parts of North India. The early 50s produced over150 tones of biscuits produced in the Mumbai factory. Looking at the success of Parle-G, a lot of other me-too brands were introduced in the market. And these brands had names that were


similar to Parle Glucose Biscuits so that if not by anything else, the consumer would err in picking the brand. This forced Parle to change the name from Parle Glucose Biscuits to Parle-G. Originally packed in the wax paper pack, today it is available in a contemporary, premium BOPP pack with attractive side fins. The new airtight pack helps to keep the biscuits fresh and tastier for a longer period. Parle-G was the only biscuit brand that was always in short supply. It was heading towards becoming an all-time great brand of biscuit. Parle-G started being advertised in the 80's. It was advertised mainly through press ads. The communication spoke about the basic benefits of energy and nutrition. In 1989, Parle-G released its Dadaji commercial, which went on to become one of the most popular commercials for Parle-G. The commercial was run for a period of 6 years. Parle-G grew bigger by the minute. Be it the packs sold, the areas covered or the number of consumers. It became a part of the daily lives of many Indians. It wasn't a biscuit any more. It had become an icon. The next level of communication associated the brand with the positive values of lifelike honesty, sharing and caring. In the year 1997, Parle-G sponsored the tele-serial of the Indian superhero, Shaktimaan that went on to become a huge success. The personality of the superhero matched the overall superb benefits of the brand. Parle extended this association with Shaktimaan and gave away a lot of merchandise of Shaktimaan, which was supported by POS and press communication. The children just could not get enough of Parle-G and Shaktimaan. In the year 2002, it was decided to bring the brand closer to the child who is a major consumer. A national level promo - `Parle-G Mera Sapna Sach Hoga' was run for a period of 6 months. The promo was all about fulfilling the dreams of children. There were over 5 lakh responses and of that, over 300 dreams were fulfilled. Dreams that were fulfilled ranged from trips to Disneyland at Paris & Singapore; free ride on a chartered plane; 20 scholarships worth Rs 50,000; a special cricket coaching etc. The year 2002 will go down as a special year in Parle-G's advertising history. A year that saw the birth of G-Man - a new ambassador for Parle-G. Not just a hero but also a super-hero that saves the entire world, especially children from all the evil forces. A campaign that is not just new to the audiences but one that involves a completely new way of execution that is loved by children all over the world – AnimationTo make the brand much more interesting and exciting with children, it was decided to launch a premium version of Parle-G called Parle-G Magix in the year 2002. Parle-G Magix is available in two exciting tastes - ‘Coco ’ and ‘ Cashew ’ . The year 2002 also witnessed the launch of Parle-G Milk Shakti, which has the nourishing combination of milk and honey, especially launched for the southern market.

THE MARKETING STRENGTH


The extensive distribution network, built over the years, is a major strength for Parle Products. Parle biscuits & sweets are available to consumers, even in the most remote places and in the smallest of villages with a population of just 500. Parle has nearly 1,500 wholesalers, catering to 4,25,000 retail outlets directly or indirectly. A two hundred strong dedicated field force services these wholesalers & retailers. Additionally, there are 31 depots and C&F agents supplying goods to the wide distribution network. The Parle marketing philosophy emphasizes catering to the masses. They constantly endeavor at designing products that provide nutrition & fun to the common man. Most Parle offerings are in the low & mid-range price segments. This is based on their understanding of the Indian consumer psyche. The value-for-money positioning helps generate large sales volumes for the products. However, Parle Products also manufactures a variety of premium products for the up-market, urban consumers. And in this way, caters arrange of products to a variety of consumers.

Marketing Mix of Parle Products Limited Product strategy Product Levels

1) Core benefit- The core benefit of biscuits is to satisfy hunger of the consumer2) Basic product- In the second level, the basic product is biscuits.3) Expected product- The consumers expect the product to have a good taste and also give nutrition.4) Augmented product- Parle biscuits increase a person’s energy levels. This is notalways expected by the consumers and hence exceeds customer’s expectations.5) Potential product- In the future parle could come up with different products suchas a snack which could be a combo of chocolate and biscuit.

Classification of products1) Based on tangibility- Parle biscuits are tangible, i.e. one can see and touch them.2) Based on functional life- Parle biscuits are consumables since biscuits form apart of food and have a short life.3) Based on price and quality- most of Parle biscuits such as Parle-G, Monaco, Krackjack are mass products but a few Parle biscuits such as Parle hide and seek and Milano are premium or prestige products.4) Based on utility- Parle biscuits are convenience goods. They are staples since they are bought by consumers regularly. Also they are partly impulse products.


Product mix

Consumer end-use The production process of every parle biscuit follows some basic ingredients like wheat flour, vegetable oil, inverted syrups, skimmed milk powder, etc. then depending upon the product, extra ingredients are added for e.g. in Monaco there might be an extra amount of salt put in to give it that prominent salt taste, to hide & seek, chocolate chips are added. Etc. Parle uses the same distribution channels for selling all its products under the biscuit category i.e. 1st, 2nd& the 3rd level of the distribution channels. The basic end use of all parle products remains the same – eating it simply to satisfy hunger. Products like parle-g may also be consumed for the intake of high glucose levels for immediate strength & energy.

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. For Parle G: Parle G was initially recognized by its iconic white and yellow stripped wax paper wrapper with the baby face on it. Many competitors have tried to sell their lower quality products by copying the packaging, trying to sell their biscuits as Parel-G; Parle-Jee etc. Due to increasing competition Parle G now uses plastic wrappers for its packaging. Parle-G comes in 8 different sizes: 25gms, 44gms, 93.5gms, 231gms, 340.5gms, 462gms, 577.5gms and a 1kg pack just for Rs.30 which is not usually offered by other brands

Price Mix Pricing Strategies 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.


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.

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 customer’s scattered throughout the country.

Level 3:- Mass consumption & suitable for national & international coverage. For e.g. Parle’s international operations consist of serving markets in the Middle East, Africa, South America, Sri Lanka, Australia and North America for which the 3 level distribution channel exists.

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

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

AdvertisingParle-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 (link for the ad: http://www.youtube.com/watch?v=5D4PBN0OzuE), which went on to become one of the most popular commercials for Parle-G. The commercial was run for a period of 6years. Parle-G grew bigger by the minute. Be it the packs sold, the areas covered or the number of consumers. It became a part of the daily lives of many Indians. It wasn't a biscuit any more. It had become an icon. The next level of communication associated the brand with the positive values of life like honesty Sharing and caring.


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’ mane ’GENIUS’’. For this a series of ads were shown in which a little kid eats Parle G and tricks the wise and experienced people. Just a few months back a reminder TV commercial was launched for Parle-G where the product is being called‘Hindustan ki takat’ (link for the ad: http://www.youtube.com/watch?v=Kxb4bLq35mg). Most of the Parle-G TV commercials tell us that brand awareness is being done by capturing consumer motion. Heavy promotion plays a major role in creating brand awareness. Such is the case of Parle hide & seek biscuit’s television advertisements. The ads of parle hide and seek are portraying actor Hrithik Roshan. This tells us that the product is being promoted by celebrity endorsement to increase awareness of this product and help capture the consumers’ attention.

Sales PromotionParle 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 organized for the employees of Parle and their families; where Parle products are giveaway prizes.

Public RelationsParle 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 a major consumer. A national level promo - `Parle-G Mera Sapna Sach Hoga' was run for a period of 6 months. The promo was all about fulfilling the dreams of children. There were over 5 lakh responses and of that, over 300 dreams were fulfilled. Dreams that were fulfilled ranged from trips to Disneyland at Paris &Singapore; meeting their favorite film star Hrithik Roshan; free ride on a chartered plane; 20 scholarships worth Rs 50,000; a special cricket coaching camp with the Australian cricketer - Ricky Ponting; etc.

Consumer behavior for Parle-G:


In India it is a habit to have biscuits along with tea - Parle G is referred to as "biskut" in rural areas - thus when asked for biskut to a shopkeeper it simply means Parle-G biscuit in rural areas. Understanding consumer behavior is tough. The study of consumer behavior includes the knowledge about the consumer, his buying motives & buying habit Parle-G being a consumable product is not influenced by factors like cultural factors. As shown above, social factors are further sub divided into 3 parts namely reference groups, family & social role & status.1) Reference Group People, especially kids are always influenced by the people around them. They are influenced by friends, relatives, family members specially elder siblings, etc. so if they see anyone around them having parle-G biscuit, they too want to eatit.2) Family In his case also, if it’s a usual habit of the family members to have pale-G with tea or coffee, the kids in the growing stage or any new member joining the family for tea will form a similar habit or the later will be offered the same biscuit. Personal Factors


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

1) Age: Parle-g is consumed maximum by the kids in the age group of 5-10 years i.e. the growing age group. Kids, who have formed the habit of having Parle-G in their early stages of life, continue this practice even after growing up. They continue their consumption of Parle-G even after they grow up.

2) Occupation: The buying behavior of the consumer is influenced also by the occupation he or she belongs to. In case of Parle-G, the purpose for buying the product varies from a person with a high post in a M.N.C. to a poor laborer. For the executive employee, he may or may not buy the product. He may buy a more expensive or an imported biscuit brand because he can afford it. Also he may buy it only to be one of the many snacks available to him. On the other hand, a poor laborer would buy a packet of Parle-G simply to satisfy his hunger. For him, it is not matter of choice or luxury, but a necessity because it’s the easiest & the cheapest he can get.

3) Income: Income of a person decides its core expenditure segment. If a laborer earns a fixed amount & if a biscuit like parle-g which for sure ensures high level glucose content & immediate energy regained, he would defiantly opt to buy a parle biscuit packet & not spend even that minimal amount of Rs.4 on anything else. But since Parle-G is a low-priced, value for money


product a person’s income does not really play a role in influencing the purchase of the product. Consumers of all income groups do buy the product. Psychological Factors

1) Motivation- For Parle-G the main & the basic motivation which pulls consumers towards buying it is simply hunger. This is what pulls the consumers towards the purchase of Parle-G. Also, since biscuits are perceived as snacks, when a consumer is drinking tea he or she is motivated to buy Parle-G at that time.

2) Perception- consumers believe Parle-G to be a good quality product which is cheap too. They also perceive it to be a great snack with tea

Market Segmentation

Level of market segmentationParle-G is consumed by people of all ages, from the rich to the poor, living in cities & in villages. While some have it for breakfast, for others it is a complete wholesome meal. For some it's the best accompaniment for tea, while for some it's a way of getting charged whenever they are low on energy. Parle company practices mass marketing for Parle- G which appeals to masses. It is a product liked by everyone and does not cater only to a specific group or part of the whole market. Thus it is mass production, mass distribution and mass promotion of Parle- G for all buyers.

Geographic segmentation:Parle-G is consumed by people staying in urban, semi urban and Rural areas.

Demographic segmentation:• Parle-G is however consumed by everyone.• Parle-G is consumed by all income groups, but is mostly consumed by the lower and middle income groups•Social class: Parle-G is consumed only by lower n middle class consumers because rich class can afford more expensive biscuits.

Behavioral segmentation:•Benefit sought-The benefit sought in Parle-G is mainly replenishing energy.


Positioning strategyParle-G is positioned in the minds of people as a value for price product and also as a low-priced product. Whereas hide & seek has tapped a new market.

Differentiation strategyFor Parle-G the company has used channel and image differentiation tools. Parle-G by far has the most intensive distribution coverage as compared to any other biscuit company in India. Also the name PARLE has an image that generates respect and a belief of good quality in the minds of the buyers.

PackingAs in all other biscuits, packing plays an important role in Parle-G too. The basic small packs are packed mechanically using automated machines and are sealed using the Polly bag sealing machine. These small packs are then manually packed into small boxes and are sent through the conveyor belt to be packed in large cartons. 160 packets are packed per minute. And in one big box there are 160 Parle-G packets packed. Before, they used to bring the packaging material from outside the company but now it is produced in the factory premises itself. For export purpose the packets have different languages print on them depending upon the geographical location& demand of the people. Each factory has state-of-the-art machinery with automatic printing & packaging facilities.

THE STRENGTH OF THE BRAND Over the years, Parle has grown to become a multi-million US Dollar company. Many of the Parle products - biscuits or confectionaries, are market leaders in their category and have won acclaim at the Monde Selection, since 1971. Today, Parle enjoys a 40% share of the total biscuit market and a 15%share of the total confectionary market, in India. The Parle Biscuit brands, such as, Parle-G, Monaco and Krackjack and confectionery brands, such as Melody, Poppins, Mangobite and Kismi, enjoy a strong imagery and appeal amongst consumers. Be it a big city or a remote village of India, the Parle name symbolizes quality, health and great taste! And yet, we know that this reputation has been built, by constantly innovating and catering to new tastes. This can be seen by the success of new brands, such as, Hide & Seek, or the single twist wrapping of Mango bite. In this way, by concentrating on consumer tastes and preferences and emphasizing Research & Development, the Parle brand grows from strength to strength


PRODUCT: Parle-GParle-G or Parle Glucose biscuits are one of the most popular confectionary biscuits in India. Parle-G is one of the oldest brand names in India and is the largest selling brand of biscuits in India. For decades, the product was instantly recognized by its iconic white and yellow wax paper wrapper with the depiction of a young girl covering the front. Many counterfeit companies have attempted to recreate and sell lower quality products of similar names and virtually identical package design.

Ingredients:

Wheat Flour,Sugar,Partially Hydrogenated Edible Vegetable Oils,Invert Syrup,Leavening Agents [ 503 ( Ii ), 500 ( Ii ) ],Salt, Milk Solids, Emulsifiers [ 322 or 471 & 481 ( i ) ]Dough Conditioners [223].Contains Permitted Natural Color [Artificial]

Pack Size & Price:For 19grams:Rs.1/-For 44grams:Rs.2/-For 93.5grams:Rs.5/-For 231.5grams:Rs.12/-

Place:It is available in mostly every retail shop.

Promotion:It is relish a delectable experience as they melt in your mouth. PARLE-G’s tag line is:“Hindustan Ki Taaka” Marketing Analysis of PARLE-G is also most famous tag line and they make advertising through TV advertising and signboards


BRANDING IN RURAL INDIA

The concept of branding entered in Indian rural markets. Consumers have graduated & aware about to branded products as they are also having better income opportunities with increased affordability since last few years. A brand is recognized in the rural market with the help of colors, visual effect or any other identification rather than name which facilitates easy brand recall like: WO KALA WALA MANJAN DENA, WO NEELA WALA KAPDE DHONE KA SABUN DENA etc. But some brands are known by their names, for example, Nirma and Pan Parag also.

The challenges in creating a brand identity in rural involve the need to relate the brand with the rural lifestyle & behavior, with appropriate status symbols, or with the rural environment. As most brands are introduced in urban markets and then move to rural, creating a brand identity in rural markets is really a tough job.

As none of the biscuits industry can easily break the image of Parle-G especially in rural market as even a child can easily identify that.

Documents

Parle-G