MKT601 - Parle-G Biscuit: Comprehensive Contemporary Marketing Report

This contemporary marketing report provides an in-depth analysis of Parle-G biscuits, a leading brand in India. It examines the macro and micro environments, including political, economic, social, technological, legal, and environmental factors, as well as customers, competitors, suppliers, and the public. A SWOT analysis highlights Parle-G's strengths, weaknesses, opportunities, and threats, with a focus on its low price, brand loyalty, and the impact of GST. The report also details the target market segmentation based on geographic, demographic, psychographic, and product/benefit variables. Parle-G's positioning as a value-based brand is discussed, along with its current marketing mix (7Ps). The report concludes with recommendations for future growth and sustainability. Desklib provides access to this report and other solved assignments for students.

Running Head: PARLE-G BISCUITS 0
Contemporary Marketing

PARLE-G BISCUITS 1
Executive Summary
This is a contemporary marketing report of one of the bestselling brand of biscuits in
the India i.e. Parle. The selected product is Parle G biscuit which has been around for 80
years in India and gains 80% of market share in its product category.
The macro and microenvironment analysis of Parle G is also underlined where it can
be found that there is some sort of threat in both political and economic aspect. In addition,
the company is also launching various campaigns to connect with the people under the social
factors. In the same way, the company also aim to fulfil environmental responsibility by
undertaking various initiatives such as “Parle My Green Planet” campaign. On the other
hand, the microenvironment analysis of Parle G includes their list of customers, suppliers,
competitors and public. For instance, it is stated there three main Parle G competitors include
Britannia Tiger, Horlicks Biscuits and local glucose biscuits.
Afterwards, the company and its product SWOT analysis are being focused on where
it is identified that major strength of Parle biscuit is their low price and brand loyalty.
However, there are some weakness too such as less variant in this product and catering to
economic segment mainly and thus lack balance. They have also various opportunities with
the increased tendency for snacking amongst Indians. Considering threat, India new
government such as GST is proved to be one of the major threat for the company and their
product portfolio.
The target market of Parle G biscuits is also analyzed representing geographic,
demographic, psychographic and product/benefit variables segment. For instance, in
demographic targeting, Parle G biscuits are available to all age groups and family whether
Child, Young, Marriage or older. Parle G biscuit has positioned itself as a value-based brand
product having Indian origin and known for creating memories.
In next part of the report, current marketing mix of Parle is presented including its
7Ps. Then, some relevant recommendations are being suggested for the future growth and
sustainability of the product and brand.

PARLE-G BISCUITS 2
Table of Contents
Background to the company.......................................................................................................3
Situational Analysis...................................................................................................................4
Macro environment of Parle-G Biscuits................................................................................4
Microenvironment of Parle-G Biscuits..................................................................................6
SWOT Analysis.........................................................................................................................7
Target Market and Positioning...................................................................................................7
Marketing Mix Analysis..........................................................................................................10
Recommendations....................................................................................................................13
References................................................................................................................................14

PARLE-G BISCUITS 3
Background to the company
Parle-G or Parle Glucose biscuits, manufactured by Parle Product Pvt. Ltd, are one of
the best popular biscuits in India. It is one of the largest selling brands of biscuits in India and
has also attained strong household name across India. Nearly 80 years after it was introduced
in India, this brand dominates the country biscuit market even after coming of so many
brands biscuits (Gupta, 2017). Industry sources said Parle-G sells the most as it is the low-
priced biscuit in the branded group. Unlike Britannia, most Parle offerings are mass brands in
the low and mid-range price sections. The customer also loyal towards the brand due to its
long presence in India i.e. for over 80 years.
Figure 1: Parle – G Biscuit
Parle Biscuits Private Ltd has reported a 7 per cent revenue growth at 8,487 crore₹
during the financial year 2017-18 (thehindubusinessline.com, 2018).

PARLE-G BISCUITS 4
Situational Analysis
It includes both key macro and micro environmental factor of Parle-G biscuits. The
key macro environmental factors are evaluated below with the help of Pestle tool influencing
the industry or company.
Macro environment of Parle-G Biscuits
 Political Factors – Political factors are most favourable in case of Parle-G biscuit as
this product is essentially intended for poor category of individuals as, since its
incorporation, the biscuit is sold for Rs. 5 (Indian Currency) which is also reasonable
to any class of population. However, with recent changes in tax structure of India and
to cope with a revised 18% tax on the product, Parle Products Private Ltd is planning
to shrink the packet as well as raise price (outlookindia.com, 2018).
 Economic Factors – Parle-G has attain economies of scale and at this price point, it
will be challenging to contend in the group. Products of Parle stated the value for
money plank has been vital in increasing Parle-G at over 15 per cent total annual
growth rate in the previous five years. Parle-G prospective to keep its growth rate and
to become the nation first Rs 10,000-crore FMCG company especially as of the rising
attractiveness of cream biscuits and cookies which are obtainable at alike price points
as glucose biscuits (economictimes.indiatimes.com, 2013).
 Social Factors – Considering social factors, Parle-G initiated a new marketing
campaign to stay connected with the young generation. It was named as ‘Kal Ke
Genius’; the drive developed by Ogilvy was received well and build waves in the
social media platforms (Krishnamurthy, 2013). The company also introduce Parle-G
Gold, a quality glucose biscuit that is heftier and has a richer formulation than Parle-
G. This will help the brand to reconnect to society with the new perception.

PARLE-G BISCUITS 5
Source: (Krishnamurthy, 2013)
 Technological factors – It is important for Parle-G biscuit to adopt latest technology
to lower the cost of production and also reorganize its supply chain so as to fetch out
more elasticity to meet both consumer requirements and cost arrangements. It also
influences the supply chain associates. For instance, technology has shortened the
PLC and allow supplier to develop new products (Jayal et al, 2010). This has put
burden on Parle Biscuits marketing division to make the suppliers happy by
encouraging wide extent of products.
 Legal Factors – There are various laws in India having direct or indirect impact on
the parle’s business. Some of the laws include Consumer Protection Act.1986.(CPA),
Environment Protection Act. 1986, SEBI, The Monopolies and Restrictive Trade
Practices Act. 1969 (Fernando, 2012). In addition, there are legal protection of
intellectual property, copyrights, patents and other IPR rights in India and this may
impact Parle Biscuits if there is not enough protection (Fernando, 2012).
 Environmental Factors – Pertaining practices in relation to environment variables
will help Parle-G biscuits to meet customer expectations in the international business
region. The company do undertake various campaigns and practices in light of their
CSR activities. For instance, the company launches the campaign by reaching out to
over 5000 schools nationwide; aim to raise ecological responsibility among kids. One
of such initiatives was their launch of “Parle My Green Planet” (business-
standard.com, 2013).
Microenvironment of Parle-G Biscuits
Customers – Parle-G is consumed by individuals of all ages and income level from the rich
to the poor, living in both urban and rural areas.

PARLE-G BISCUITS 6
Competitors – The three main Parle G competitors include Britannia Tiger, Horlicks
Biscuits and local glucose biscuits. In addition, the major brand competitor of Parle includes
Britannia Ltd, Anmol, Priya Gold Biscuits, Sunfeast and Horlics. However, Parle G enjoys 80
per cent market share in the glucose biscuit industry with valuation over Rs 2,000 crores.
Suppliers - Parle products including Parle G biscuits purchase raw materials from the several
suppliers and stored into the storeroom. This raw material then transported to test center for
testing and afterwards used for manufacturing. From last several years, India has developed
as one of the key exporters of Parle G Biscuits and the value of its total of export of Parle G
Biscuits has progressively improved and in 2016 estimated to be around USD 7559529.43
Public – Over a long period, Parle G endures to dominate India biscuit market and these
biscuits are stacked by health and thus is something most Indians have grown up eating
(Narula, Taneja & Tyagi, 2016). In India, this biscuit is used with much-loved chai staple and
even today in many houses there, many people across the nation wake up to a cup of tea and
Parle-G every morning.

PARLE-G BISCUITS 7
SWOT Analysis
Strengths – The major forte of Parle G biscuit is their low-cost price and visibility
attracting all sorts of individuals. The company believe in high advertising and thus they also
endorse celebrities as brand ambassadors. For instance, Parle ropes in Twinkle Khanna (was
an Indian film actress) to endorse its product. Other than this, high brand loyalty also
possesses its strength.
Weakness – The brand has not provided nothing-new variant in this biscuit segment in
form of varieties or uniqueness. As brand always caters to economy segment, it is challenging
Parle to make out balance between economy and premium segments.
Opportunities – One of the key opportunity is with the increased tendency for snacking
amongst Indians, as they prefer snacks and biscuits due breakfast and teatime and this raises
the scope for introducing more snacks into their product portfolio. The company can also tie-
up with schools, corporates and hotel chains as a part of meals so as to increase their sales.
Threats – The Company is facing threat as similar business categories such as Britannia
Tiger, Horlicks Biscuits and local glucose biscuits. Other than this, there is a threat to
government policy. For instance, implementation of new taxation system i.e. GST in India
escalated the average cost of the company (Kumari 2018). Thus, such practices and policies
of the government in future may affect the brand profitability.
Target Market and Positioning
Target Market - On the basis of Geographic, demographic, psychographic
and product/benefit variables segment
Parle G biscuit is one of the longest running product of Parle and currently available
all over India. The company have a long-lasting distribution network make its presence in
both rural and urban areas. For instance, in rural it is available in 50-65% of the location and
on the other hand, 75-85% is available in urban areas.

PARLE-G BISCUITS 8
Considering demographic variable, Parle G biscuits are available to all age groups and
family whether Child, Young, Marriage or older. In terms of Gender also, both male and
female can consumer this biscuit easily as well as this product of Parle is for all income
groups individuals due to its low price and visibility.
In psychographic segmentation, the company targets people possessing lifestyle of
sports-oriented and outdoor-oriented as Parle g biscuits signify glucose in it that make it
beneficial for these kinds of people. Considering personality, all individuals’ i.e. common
man, middle class and upper-class people are included by the company for the sale of the
product. This extensive range and diversity help the company in its growth and sales all over
the business life cycle (Sirmon et al, 2011). The product's benefits represent behavioral
targeting where Parle G product offer benefits in terms of both quality and economy. Being a
pioneer brand, the company ensure its product quality and make it easy for the customer to
fulfil its economic needs. In below table, all respective segmentation is specified –
Geographic
Region All over India
Rural and Urban areas Rural 50-65% and Urban 75-85%
Demographic
Age All groups of age.
Family Children, Young, Married and Older
Income All income groups
Gender Female, Male
Psychographic
Lifestyle Outdoor Oriented and Sports - Oriented
Personality Upper class, Common man, Middle class
and
Behavioural
Occasions Consistent
Benefits Quality, Economy

PARLE-G BISCUITS 9
Usage Rate Medium – Heavy
Loyalty Status Strong
Readiness Stage Intending to Buy, interested
Attitude Towards Product Positive
Positioning
Parle G biscuit has positioned itself as a value-based brand product having Indian
origin and recognized for building memories. As the brand is associated with positive value
of life such as honesty, sharing and caring, their products become a part of daily lives if many
Indians. The point of difference can easily be seen in their market share also depicting 70% in
comparison to Britannia Tiger which is only 17%.
From past few years, Parle-G was intensely positioned as a staple as it is connected
with nutrition and health (Chandrasekhar, 2012). Though, now it is considered beyond a
staple and is now an emotion and bond connecting people. Considering consumer purchase,
Parle G biscuit is not an impulsive or spontaneous buy but a planned one.

PARLE-G BISCUITS 10
Marketing Mix Analysis
Product
Parle G biscuits consist of high nutritional value having amazing taste exercised in high
hygienic standards. In 2002, Parle brand also introduces its premium version named as Parle
G Magix, however, it was not that much successful (Chatterjee, 2012). In General, the
product Parle G is a low cost product directed towards the general population. One of the
major characteristics of this product is that it can be consumed at any point of time and cater
all segments needs universally. All this give insight of product mix of Parle.
Price
Over a long period of time, Parle G biscuit is set up as a low-cost strategy which helps the
product to gain larger market share i.e. 70%. This low price strategic in align with the pledge
of high quality help the brand to compete their rivals. The major reason for this low-cost
strategy is their production in higher volume. In India, it starts with minimum 5 RS INR and
then the price changes according to the volume of packet. The company also offer higher
volume in comparison with other business category that helps the brand to reach to larger
target audience.
Parle-G Glucose Biscuits 70 Gm 5Rs

PARLE-G BISCUITS 11
Place
In India, across all the geographies, Parle G biscuit is available and with having strong
distribution network, the company able to successfully reach over 6 million retailers all over
India. The company also cater over 1500 wholesalers with having 23 manufacturing units
(Thakkar, Kanda and Deshmukh, 2012). This is one of the reasons that the brand products are
available at all small shops or grocery stores to larger retail chains and stores. Availability of
Parle G biscuits everywhere is also one of the reasons for customer preference of biscuit over
other brands. Their strong distribution network can also be understood with the help of
examples such as, during 26th July, when India was sunk due to rains, Parle G was the biscuit
which was being circulated freely to all individuals exhausted from rains.
Promotion
In extent with this element, the company uses all sorts of media including TV, internet, social
media as their marketing strategy. In addition, the company also uses television character
such as Shaktimaan where the company started giving out merchandise for the same. One of
the key element of their promotion is the logo of a young girl that is also become the brand
ambassador of the brand. The company also undertake various innovative marketing
campaigns such as recently introduced campaign (‘you are my Parle-G’) is an honest effort to
re-establish the significance and meaning that Parle G has had in everybody’s lives over the
years.
Physical Evidence
One of the key physical
evidence of Parle G is their
packaging and the logo of
that girl. The packaging
reflects a sort of emotional
connection large extent of people to the brand. The packaging of the Parle G biscuit has not
been changed from many years as the company wants to retain the old charm as it reminds

PARLE-G BISCUITS 12
some things still are the same and this proved the statement wrong that every category or
things requires some sort of innovations on periodic basis. Other than the packaging, the logo
of girl on the packet also proves as the physical evidence of the product. The name of that girl
is Neeru Deshpandey and she was 4 years 3 months old when the picture was taken. Till now,
the company has not changed that image from the packet as that makes a strong bond with
the public.
Process
There is 23 manufacturing units of Parle at various locations where the raw materials are
sourced and then processed as finished goods at Parle Depots. Their products then transported
to more than 1500 wholesalers and distributors who then transported to the next level i.e.
retail stores. These above 1500 wholesalers are catering to 425000 retail outlets indirectly or
directly. Parle has level 1, level 2 and level 3 delivery channel levels.
People
In any organisation, people are the most important element for any service or experience.
They cannot be imitated by any organisation while achieving competitive edge in the
industry. There are 10000 plus employees working in Parle India and it was founded that
company have a flexible sort of culture offer employees to participate in the decision making.
These employees are also responsible to raise customer satisfaction in the competitive
environment.

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Recommendations
Parle-G has a good trick of tapping the consumers from a long period offering so
many features both tangible and intangible. There is no such promotion needed to the
company for its products due to their ongoing demand. However, in order to keep its hold
over biscuit market, Parle-G is required to do more inventions without changing its popular
old taste and quality of product. This requires along with more marketing attempt to gain not
only opportunities in urban cities but also in more rural markets.
The company also need to provide various sort of varieties in the same category, as
there are numbers of other brands such as Britannia and Patanjali offering larger number of
varieties and tastes in their products.
In addition, the company can also provide extra goodies with the product such as
coupon so as to make their product more competitive. Concerning this, Parle can also expand
this product into other countries such as eastern countries where the market is currently
untapped.
Hence, all these practices will help Parle in achieving economy of scale and
sustainability.

PARLE-G BISCUITS 14
References
business-standard.com. (2013). Parle Products launches "Parle My Green Planet" campaign.
Retrieved from https://www.business-standard.com/article/press-releases/parle-
products-launches-parle-my-green-planet-campaign-109100600119_1.html
Chandrasekhar, B. V. N. G. (2012). Consumer buying behaviour and brand loyalty in rural
markets: FMCG. IOSR Journal of Business and Management, 3(2), 50-67.
Chatterjee, P. (2012). Parle-G takes the movement route to create 'Kal ke genius'. Retrieved
from
https://www.thehindubusinessline.com/2002/08/13/stories/2002081301180600.htm
economictimes.indiatimes.com. (2013). 73-year-old biscuit pioneer, Parle-G becomes
India’s first homegrown Rs 5K crore FMCG brand. Retrieved from
https://economictimes.indiatimes.com/industry/cons-products/fmcg/73-year-old-
biscuit-pioneer-parle-g-becomes-indias-first-homegrown-rs-5k-crore-fmcg-brand/
articleshow/18473679.cms
Fernando, A. C. (2012). Corporate Governance: Principles, Polices and Practices, 2/e.
Pearson Education India.
Gupta, S. (2017). 80 years on, Parle-G continues to dominate biscuit market. Retrieved from
https://www.livemint.com/Companies/TdvnbHiNpTKA4KnTVeM2yM/80-years-on-
ParleG-continues-to-dominate-biscuit-market.html
Gupta, S. (2017). 80 years on, Parle-G continues to dominate biscuit market. Retrieved from
https://www.livemint.com/Companies/TdvnbHiNpTKA4KnTVeM2yM/80-years-on-
ParleG-continues-to-dominate-biscuit-market.html
Jayal, A. D., Badurdeen, F., Dillon Jr, O. W., & Jawahir, I. S. (2010). Sustainable
manufacturing: Modeling and optimization challenges at the product, process and
system levels. CIRP Journal of Manufacturing Science and Technology, 2(3), 144-
152.
Krishnamurthy, J. (2013). Parle-G takes the movement route to create 'Kal ke genius'.
Retrieved from https://www.campaignindia.in/video/parle-g-takes-the-movement-
route-to-create-kal-ke-genius/417871

PARLE-G BISCUITS 15
Kumari, U. (2018). Impacts Of Goods And Service Tax (GST): An Overview of Five Key
Sectors Of India's Economy. Frontiers of Inclusive Growth, 1(1), 112-119.
Narula, A., Taneja, S., & Tyagi, A. (2016). The changing trends in biscuit consumption
pattern: a study of McVities digestive biscuits in Jaipur. Abhigyan, 34(2), 26-42.
outlookindia.com. (2018). To Cope With GST Rate Hike, Parle G Will Eat Into Your Biscuit
Pack. Retrieved from https://www.outlookindia.com/website/story/to-cope-with-gst-
rate-hike-parle-g-will-eat-into-your-biscuit-pack/308807
Sirmon, D. G., Hitt, M. A., Ireland, R. D., & Gilbert, B. A. (2011). Resource orchestration to
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from https://www.thehindubusinessline.com/companies/parle-aims-rs-100-150-crore-
turnover-from-nurtricrunch-in-2-years/article26486166.ece