2. 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
Indian Biscuit Industry
3. 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”
Company Background
4. 4 P’s
•Television Ads•95% sales in
Indian Market
•8000 Distributors
•Price setter in
Market
•Seen as value for
money
•Parle G
•Hide n Seek
•Monaco
• Krack Jack
Product Price
PromotionPlace
6. 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
Target Customers
8. Product Hierarchy
Parle G –
Rs. 4/- SKUGlucose
Biscuits
Biscuits
Ready To Eat/Packaged Food
Items
Food Items
Hunger
9. 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
10. How to over come
value for money
perception and
increase price?
What is the
marketing strategy
to be adopted?
Should Parle
launch new SKUs
and new price
points?
Should Parle tinker
with grammage?
Cannibalization of
Parle-G with new
and similar
products
11. Launch premium versions of the product, eg. Parle G - Premium , Parle G
Nutri.
Concentrate more on premium segments for future growth
Tinker with the weight of the product and concentrate on the Rs. 5
price point.
Cut down on advertisements expenditure for Parle G
Cost reduction by backward integration
Suggestions
