Parle G
Indian Biscuit Industry
India - 3rd largest producer of biscuits
Organized sector produces 1.7 million tons of biscuits/year valued at INR 110 billion in 2008
Glucose biscuits represent 42% of the market
Sector growing at 15 % annually
60% of the market is owned by organized sector
Company Background
World’s largest producer of selling biscuits brand by tonnage
40% share of total biscuit market in India
Produced 650,000 tons of biscuits/pa. Parle-G comprised of 500,000 tons
Sales INR 35 billion( 68% contributed by Parle G )
Parle products are perceived as “Good value for money”
4 P’s
• Parle G • Hide n Seek • Monaco • Krack Jack • Price setter in Market • Seen as value for money
Product
Price
Place
• 95% sales in Indian Market • 8000 Distributors
Promotion
• Television Ads
Market Segmentation
Retail and Institutional
Income Groups Socio Economics Classes
Age Groups Biscuit Types
Target Customers
Children are both users and influencers( 5 – 14 age group)
Children formed 60% of the target audience
Middle class were the largest consumers
Institutional consumers – hospitals, factories, railway station, schools, government offices Increasing Income level of household
Competitors
Britania • Tiger • Good Day • Sunfeast Glucose • Sunfeast Dream cream
ITC
Surya
• Priya Gold • Marie lite
Anmol
Product Hierarchy
Parle G – Rs. 4/- SKU Glucose Biscuits Biscuits Ready To Eat/Packaged Food Items Food Items Hunger
The Problem
Input cost of raw materials (sugar and wheat flour), which comprised 55% of the manufacturing costs, is increasing Margin of Parle-G decreased from 15% of revenue to less than 10%
Since introduction, the biscuit is strongly associated with the offering “Value for money” In 2004 first attempt to increase price of 100gms Parle-G pack from INR 4.0 to 4.5 resulted in 40% decline in sales within 6 months
How to over come value for money perception and increase price?
India - 3rd largest producer of biscuits
Organized sector produces 1.7 million tons of biscuits/year valued at INR 110 billion in 2008
Glucose biscuits represent 42% of the market
Sector growing at 15 % annually
60% of the market is owned by organized sector
Company Background
World’s largest producer of selling biscuits brand by tonnage
40% share of total biscuit market in India
Produced 650,000 tons of biscuits/pa. Parle-G comprised of 500,000 tons
Sales INR 35 billion( 68% contributed by Parle G )
Parle products are perceived as “Good value for money”
4 P’s
• Parle G • Hide n Seek • Monaco • Krack Jack • Price setter in Market • Seen as value for money
Product
Price
Place
• 95% sales in Indian Market • 8000 Distributors
Promotion
• Television Ads
Market Segmentation
Retail and Institutional
Income Groups Socio Economics Classes
Age Groups Biscuit Types
Target Customers
Children are both users and influencers( 5 – 14 age group)
Children formed 60% of the target audience
Middle class were the largest consumers
Institutional consumers – hospitals, factories, railway station, schools, government offices Increasing Income level of household
Competitors
Britania • Tiger • Good Day • Sunfeast Glucose • Sunfeast Dream cream
ITC
Surya
• Priya Gold • Marie lite
Anmol
Product Hierarchy
Parle G – Rs. 4/- SKU Glucose Biscuits Biscuits Ready To Eat/Packaged Food Items Food Items Hunger
The Problem
Input cost of raw materials (sugar and wheat flour), which comprised 55% of the manufacturing costs, is increasing Margin of Parle-G decreased from 15% of revenue to less than 10%
Since introduction, the biscuit is strongly associated with the offering “Value for money” In 2004 first attempt to increase price of 100gms Parle-G pack from INR 4.0 to 4.5 resulted in 40% decline in sales within 6 months
How to over come value for money perception and increase price?