parle g case answers
Case Parle-G
By performing the SWOT analysis of Parle-G we can sort out several factors which can help us in devising a future strategy for the Parle-G biscuits i.e the pricing and marketing aspects etc.
Strengths
a. Parle-G offered Value For Money (VFM) to consumers, hence humungous sales in 2002.
b. It is a market leader in low priced biscuits .Internationally very few food items were available for US$1.00 per kg.
c. It has an extensive distribution network, diverse manufacturing base.
d. Positioned rightly as a combination of energy and taste. Target audience “Mothers and Children” in Exhibit 8 seemed to work well
Weaknesses
a. Huge dependence on Parle-G’s best selling SKU which is a 100-g pack.
b. Consumers perception is rooted so strongly in Parle-G’s low price that it undermines other product attributes like quality and taste.
c. Lesser penetration in retail outlets. Out of 15 million retail outlets in india Parle-G was sold in 2.5 million.
d. VFM is the only value dimension which the consumers seem to be plugged into with Parle-G .
Opportunities
a. If Parle-G targets the Aspirer and the seekers section consumer category especially there children these children can become potential customers for the future.
b. The rural households (R2+R3+R4) which are slightly low income groups prefer Parle-G more. Thus efforts could be put to reduce costs of the distribution channel in the rural region.
Threats
a. There was an increase in the price of production due to the increase in the basic raw material. The cost of raw materials will keep on increasing. So price could not be maintained constant.
b. Major competitor BIL was targeting its Tiger brand of glucose biscuits almost exclusively at children. Which could greatly affect the Parle-G consumer segment in the age group of 5-14?
(1) My rationale for the pricing decision is that the price should be gradually increased with time in the long
By performing the SWOT analysis of Parle-G we can sort out several factors which can help us in devising a future strategy for the Parle-G biscuits i.e the pricing and marketing aspects etc.
Strengths
a. Parle-G offered Value For Money (VFM) to consumers, hence humungous sales in 2002.
b. It is a market leader in low priced biscuits .Internationally very few food items were available for US$1.00 per kg.
c. It has an extensive distribution network, diverse manufacturing base.
d. Positioned rightly as a combination of energy and taste. Target audience “Mothers and Children” in Exhibit 8 seemed to work well
Weaknesses
a. Huge dependence on Parle-G’s best selling SKU which is a 100-g pack.
b. Consumers perception is rooted so strongly in Parle-G’s low price that it undermines other product attributes like quality and taste.
c. Lesser penetration in retail outlets. Out of 15 million retail outlets in india Parle-G was sold in 2.5 million.
d. VFM is the only value dimension which the consumers seem to be plugged into with Parle-G .
Opportunities
a. If Parle-G targets the Aspirer and the seekers section consumer category especially there children these children can become potential customers for the future.
b. The rural households (R2+R3+R4) which are slightly low income groups prefer Parle-G more. Thus efforts could be put to reduce costs of the distribution channel in the rural region.
Threats
a. There was an increase in the price of production due to the increase in the basic raw material. The cost of raw materials will keep on increasing. So price could not be maintained constant.
b. Major competitor BIL was targeting its Tiger brand of glucose biscuits almost exclusively at children. Which could greatly affect the Parle-G consumer segment in the age group of 5-14?
(1) My rationale for the pricing decision is that the price should be gradually increased with time in the long