Marketing Strategy

Topics: Marketing, Strategic management, Biscuit Pages: 11 (1961 words) Published: December 12, 2009
Marketing Strategy Group - 6

• Overview of Biscuit Industry in India • Porter’s Model • About Parle • Parle Products • Parle SWOT analysis • About Parle G Biscuit • Parle G - Future Challenges • Our Suggestions

Introduction on Biscuit Industry
•Biscuits market in India : Rs 9,000-crore (Rs 90-billion) • Annual growth rate of Biscuit Industry as follows: % Growth 18 16 14 12 10 8 6 4 2 0 2003-04 2004-05 2005-06 % Growth 2006-07 2007-08

Yr. 2008….exemption 14 – 15 % annually… Steady growth of from Central Excise Duty…

Annual production Biscuit Industry

Annual Production of Biscuit in India

18 16 14 12 10 8 6 4 2 0 2003-04 2004-05 2005-06 2006-07 Lakh MT

YoY growth shows rising consumption in India…

Biscuit Industry profile

Two Sectors of Biscuit Industry

Un Organised Sector 40%

Organised Sector 60%

Organised : Unorganised :: 40 : 60

Introduction on Biscuit Industry

• Rural-urban penetration of Biscuit : •Urban Market : 75% to 85% •Rural Market : 50% to 65% • Per capita consumption of Biscuits : •INDIA 1.8 kg, •South East Asian Countries 2.5 kg to 5.5 kg •USA 7.5 kg

Biscuit Industry major players

Porter’s Five Force model

Threat of Substitute

Threat of New Entrants

Bargaining power Of suppliers

Competitive Rivalry Within industry

Bargaining power Of Customer

Porter’s Five Force model


•Traditional Indian •homemade snacks, • Bread, • Package Snacks •Bakery product.

•New Entrants

•Capital Sensitive: •Manufacturing, •Advertising, •Distribution network,


•Basic commodities : • Wheat, Sugar. •Increasing price

High competition Among existing players

• Many biscuit from low to moderate Range, • Like of bakery product




Biscuit Industry major players

Major Mkt Share ( Organised Sector)

Others 10% Priyagold 15% Parle G 35%

Sunfeast 9% Britania 31%

         

Established in 1929 1st brands – Parle Glucose and Parle Monaco Market leader in many products Won acclaim at the Monde selection since 1970 35% share of the total biscuit market 15% share of the total confectionery market 14 manufacturing units for biscuits & 5 manufacturing units for confectioneries Parle has largest such manufacturing units in India Annual turnover 2000 crores It has provided its products to the mass with the affordable range.

Parle Products…… Biscuit.

Parle Products…… Confectionaries.

Parle Products…… Snacks.

SWOT Analysis of Parle

SWOT Analysis of Parle

• 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 • Dependence on Parle G •(flagship brand)

• 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, •Increasing distribution cost, •Local bakery products, •Entry of various new entrant, ITC etc.

About Parle – G Biscuit
• Parle –G has been a strong household name across India. • A 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. • The great taste, high nutrition, and the international quality, makes ParleG a winner. • Times changed, variety of biscuits did come and go but nothing has changed with these biscuits. • It has been the undisputed leader in the biscuit category for decades.

Parle G - Target base
• 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...
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