DULICHAND PARLE G

8/4/2019 DULICHAND PARLE G

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NAME:

DULI CHAND PAWECHA

NAHEED

BHAVYA


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Introduction

Parle Products fame and familiarity is undeniable. Considering its extensive

reach, the brand Parle is known and recognized by everyone.

Over the years, Parles sweets and biscuits have become a household name. From

kids to adults, everyone loves and cherishes these treats.

It gives us great pleasure to see our consumers enjoy and embrace Parle products

on daily basis.

In 1929 a small company by the name of Parle products emerged in

British dominated India. The goal was to spread joy and cheer to children andadults alike, all over the country with its sweets and candies.


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A small factory was set up in the suburbs of Mumbai to manufacture confectionery

products.

A decade later this factory was upgraded to manufacture biscuits as well.

Since then, the Parle name has spread in all directions and has won international

fame.

A decade later this factory was upgraded to manufacture biscuits as well. Since then,

the Parle name has spread in all directions and has won international fame.

Parle has been sweetening the lives of people all over India and abroad. Apart from

the factories in Mumbai and Bangalore, Parle also has factories in Bahadurgarh,

Haryana and Neemrana, Rajasthan. These are the largest biscuit and confectioneryplants in the country. Additionally, Parle Products also has 10 manufacturing units and

75 manufacturing units on contract.


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History

In the 1950s the undivided Chauhan family manufactured beverages, water,confectionery, biscuits, etc. under its registered brand name Parle.

Over the years, the group split into three different companiesParle Agro, Parle Bisleri

and Parle Products. Currently, all three are separate companies with separate ownership and

management.

They also have different products manufactured under them. All three companies continue

to use the family trademark nameParle under which the current companies are named.

Parle Agro commenced operations in 1984. Starting with only beverages and diversifying

to include bottled water in 1993 and confectionery in 2007.

Frooti was the first product that was rolled out of Parle Agro in 1985. It went on tobecome Indias favourite mango drink. It still has a leading market share.


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BRANDS

Parle Agro Pvt. Ltd operates under three business verticals: Beverages fruit drinks,

nectars, 100% Juice, sparkling drinks Water Packaged Drinking Water Foods

confectionery, snacks

BEVERAGES

Frooti: Launched in 1985 as a mango drink, Frooti is the first beverage to be launched in

tetra packaging in India. Frooti is Indias favorite Mango drink and is ranked amongst themost trusted brands in numerous national surveys.

Apply Classic: Launched in 1986 as an apple nectar and originally available in a white tetra

pack with an apple and leaf graphic, today it comes in black tetra packaging. Appy remains

the first apple nectar to be launched in India.

Parle agro has the core business activity that is production in four different states such as

BHOPAL, CHENNAI, GAZYIABAD and PHATHALAGN and fifth to be established in

HYDRABAD.And parle agro has 12 franchises currently all over India .


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Frooti is available in 65ml and 200ml TetraPak, 250ml, 500ml, 1Ltr. and 1.5 Ltr. PET, and

200ml and 2Ltr PET (in select markets).

PRODUCT MIX:

Appy Classic is available in 200ml TetraPak

Appy Fizz is available in 300ml, 500ml and 1 Ltr. PET


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Quality control systems

The quality control systems at Parle are undertaken according to the standard operating

procedures under the aegis of the quality assurance manager.

In the bottle washer compartment the various parameters such as the gas volume,

dilution levels, sweetness levels and required temperature levels have to be monitored. Theentire monitoring system is automated and any discrepancies from the stipulations are

taken care of by alarms in place. Yet unforeseen contingencies have to be taken care of so

that adequate level of quality is maintained.

The taking over of the brands by Coca Cola India Ltd., has made Parle beverages plantto adopt methods guaranteeing precision in processes.


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In the beverage manufacturing process very stringent quality control systems are in

place. Starting from the characteristics of the water used proper quality control systems

are in place at Parle.

The sample of the ready syrup undergoes stiff tests - it is checked for proper dilution

levels, sweetness, flavor and color. Only the rigidly verified sample is further processed.

Manufacturing process Harvesting/collection

`Oranges are harvested from large groves. Some citrus growers are members of

cooperative packing and marketing associations, while others are independent growers.

When the mature fruit is ready to pick, a crew of pickers is sent in to pull the fruit off thetrees. The collected fruit is sent to packing centers where it is boxed for sale as whole

fruit, or sent to plants for juice processing. The oranges are generally shipped via truck to

juice extraction facilities, where they are unloaded by a gravity feed onto a conveyor belt

that transports the fruit to a storage bin.


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Cleaning/Grading

The fruit must be inspected and graded before it can be used. An inspector takes a 39.7 lb(18 kg) sample to analyze in order to make sure the fruit meets maturity requirements for

processing. The certified fruit is then transported along a conveyor belt where it is washed

with a detergent as it passes over roller brushes. This process removes debris and dirt and

reduces the number of microbes. The fruit is rinsed and dried. Graders remove bad fruit as it

passes over the rollers and the remaining quality pieces are automatically segregated by size

prior to extraction. Proper size is critical for the extraction process.

Extraction

Proper juice extraction is important to optimize the efficiency of the juice productionprocess as well as the quality of the finished drink.


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MARKETINGSTRATEGY FOR PARLE G

Cost leadership:

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

Parle respectively. The company has undertaken modernization program in order to improve

productivity. To focus resources, rationalization of brands and packs has been undertaken and

the existing brands have been clustered into more cost efficient portfolio through a process of

brand concentration.

Economies of scale:

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

It has the advantage of being able to source raw materials and even packaging at cheap rates

because of large scale of operations.


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Parle G is a star BCG as shown below:-

SUPPLY CHAIN OF PARLESupply chain Describes a longer channel stretching from Raw materials to

components to final Products that are carried to final Buyers.

Parle G Supply Chain include Authorized wholesaler, Superstockists, RPDs, UPDsand Retailers. The Raw Materials are converted into finished goods in the Production

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

Depots or the Mother Depots. From here the stock reaches the Warehouse for

distribution to the Authorized Wholesaler. From Warehouse or Depots the Stock either

reaches the Superstockists or the Authorized Wholesalers. From Superstockists the

stock goes to either UPDs (Universal Printer Driver) or RPDs (Radiation Protectiondosimetry) from where it finally reaches to the markets of Rural India. The Authorized

Wholesaler buy goods from Company and from them the Stock goes to the Retailers.

Retailers sell Company Products to the End Consumers


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

the Sale of the Stock from Authorized Wholesaler to Wholesaler constitute Secondary Sale.

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

(Rural preferred Dealers) and UPDs (Urban preferred Dealers) under them. These UPDs are

the dealers of very small regions only which are considered rural only and are not completely

urban.

Sales Promotion

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

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

particular products or services by consumers or the trade."

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

of the promotional mix are advertising, personal selling, and publicity/public relations.) Sales

promotions are non-personal promotional efforts that are designed to have an immediate

impact on sales. Sales promotion is media and non-media marketing communications

employed for a pre-determined, limited time to increase consumer demand, stimulate market

demand or improve product availability. Examples include


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coupons

discounts and sales

contests point of purchase displays

rebates

free samples (in the case of food items)

gifts and incentive items

WEAKNESSES

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

of the authorized wholesalers; this !eads to demonization.

Warehousing norms are not followed, which accounts for high breakage .


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

Tiger Anytime being a member of this category is perceived as a tow quality product; this

may liquidate Parle G 's brand equity in the mass market.

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

health consciousness in the mass market is low, which means that the brand is under-

positioned, since the market doesn't consider "health1 as an important benefit in biscuits.

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

approaching a saturation point .

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

the mass market, the best strategy would be to concentrate on these segments of the mass

market, which will account for volume sales and require minimum investment .

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

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


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OPPORTUNITIES

Mass market is growing with established preference for biscuits.

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

brands .

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

company will have a volume advantage.

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

some extent .

There is low differentiation in the mass market brands .

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

variety in the mass market.


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THREATS

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

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

A characteristic feature of premium market consumer is that this segment is not brand

loyal; therefore there is a chance of the consumers to shift to other brands in the

near/distant future .

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

established segment .

Mass-market venture may account for this cannibalization .

A large number of competitors each having respective bold in different markets of the

company's pillar brands will account for high contribution.


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Documents

DULICHAND PARLE G