ADVERTISING AND SALES PROMOTION ASSIGNMENT ON PARLE-G BISCUITS

Submitted to : Ms. Aparna Goyal

Submitted by : Vishal Sain MBA-M&S-2013 D-36

Introduction
Parle Products is an Indian private limited company. It owns the famous biscuit brand Parle-G. As of 2012, it had a 35% dominant share of the Indian biscuit market. Parle Products Company was founded in 1929 in British India. It was owned by the Chauhan family of Vile Parle, Mumbai. Parle began manufacturing biscuits in 1939. In 1947, when India became independent, the company launched an ad campaign, showcasing its Glucose biscuits as an Indian alternative to the British biscuits The Parle brand became well known in India following the success of products such as the Parle-G biscuits and the Thums Up soft drink. The original Parle Company was split into three separate companies, owned by the different factions of the original Chauhan family

Parle Products, led by Vijay, Sharad and Anup Chauhan (owner of the brands Parle-G, Melody, Mango Bite, Poppins, Monaco and KrackJack)

Parle Agro, led by Prakash Chauhan and his daughters Schauna, Alisha and Nadia (owner of the brands such as Frooti and Appy)

Parle Bisleri, led by Ramesh Chauhan

All three companies continue to use the family trademark name "Parle". The original Parle group was amicably segregated into three non-competing businesses. But a dispute over the use of "Parle" brand arose, when Parle Agro diversified into the confectionary business, thus becoming a competitor to Parle Products. In February 2008, Parle Products sued Parle Agro for using the brand Parle for competing confectionary products. Later, Parle Agro launched its confectionery products under a new design which did not include the Parle brand name.[4] In 2009, the Bombay High Court ruled that Parle Agro can sell its confectionery brands under the brand name "Parle" or "Parle Confi" on condition that it clearly specifies that its products belong to a separate company, which has no relationship with Parle Products.

BRANDS

Biscuits: Parle-G, KrackJack, Monaco, Kreams, Hide & Seek, Parle Marie, Milk Shakti Sweet confectionery Melody, Mango Bite, Poppins Snacks Monaco Smart Chips, Parle's Wafers, Fulltoss.

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 Parle-G 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.

HIDUSTAN KI TAKAT PARLE-G

Largest manufacturer of biscuits since 80 years Quality, nutrition and great taste. More than 1500 Wholesalers an 1.3 Million retail outlets Faith and trust Example of marketing brilliance for Competitors 65 % of Glucose Biscuit market.

SWOT ANALYSIS

Strengths Parle Brand, Diversified product range, Extensive distribution network. Low and mid price range Catering to mass, Better understanding of consumer psyche Market leader in glucose biscuit

Weaknesses Dependence on retailers & grocery Stores for displaying diversified Parle Products on shelf, induce impulsive buy. Britannia capturing market slowly (e.g.- tiger biscuit ) Dependence on Parle G (flagship brand)

Opportunities Estimated annual growth of 20% Low per capita consumption, Changing consumer preference, Increasing demand for sugar free, Using advertising aggressively

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. Britannia capturing market slowly (eg- tiger biscuit )

STP MARKET SEGMENTATION:-

LEVEL OF MARKET SEGMENTATION:

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 wholesome meal. For some it's the best accompaniment for tea, while for some it's a way of getting charged whenever they are low on energy. Parle Company practices mass marketing for Parle-G which appeals to masses. It is a product liked by everyone and does not cater only to a specific group or part of the whole market. Thus it is mass production, mass distribution and mass promotion of Parle-G for all buyers.

GEOGRAPHIC SEGMENTATION: Parle-G is consumed by people staying in urban, semi urban and rural areas. People staying in the semi-urban & rural area are more using Parle G than people from urban area because of its price and people living in those areas prefer more quality in less cost. Parle-G is the largest selling biscuit in the world. It has a 70% market share in India in the glucose biscuit category followed by Britannia, Tiger (17-18%) and ITC's Sun feast (8-9%). The brand is estimated to be worth over Rs 2,000 crore (Rs20 billion), and contributes more than 50 per cent of the company's turnover.

DEMOGRAPHIC SEGMENTATION: The factors whose intensity differs from person to personare together termed as demographic segmentation. They are as follows: -

1) Age: Parle-g is consumed maximum by the kids in the age group of 5-10 years i.e. the growing age group. Kids, who have formed the habit of having Parle-G in their early stages of life, continue

this practice even after growing up. They continue their consumption of Parle-G even after they grow up. 2) Occupation: The buying behavior of the consumer is influenced also by the occupation he or she belongs to. In case of Parle-G, the purpose for buying the product varies from a person with a high post in a M.N.C. to a poor laborer. For the executive employee, he may or may not buy the product. He may buy a more expensive or an imported biscuit brand because he can afford it. Also he may buy it only to be one of the many snacks available to him. On the other hand, a poor laborer would buy a packet of Parle-G simply to satisfy his hunger. For him, it is not matter of choice or luxury, but a necessity because its the easiest & the cheapest he can get.

3) Income: Income of a person decides its core expenditure segment. If a laborer earns a fixed amount & if a biscuit like parle-g which for sure ensures high level glucose content & immediate energy regained, he would defiantly opt to buy a parle biscuit packet & not spend even that minimal amount of Rs.4 on anything else. But since Parle-G is a low-priced, value for money product a persons income does not really play a role in influencing the purchase of the product. Consumers of all income groups do buy the product.

PSYCHOLOGICAL SEGMENTATION: Psychographic is the science of using psychology and demographic to better understand consumers

1) Motivation: For Parle-G the main & the basic motivation which pulls consumers towards buying it is simply hunger. This is what pulls the consumers towards the purchase of Parle-G. Also, since biscuits are perceived as snacks, when a consumer is drinking tea he or she is motivated to buy Parle-G at that time.

2) Perception: Consumers believe Parle-G to be a good quality product which is cheap too. They also perceive it to be a great snack with tea.

TARGETING 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 wholesome meal. For some it's the best accompaniment for tea, While for some it's a way of getting charged whenever they are low on energy.

Parle Company practices mass marketing for Parle- G which appeals to masses. It is a product liked by everyone and does not cater only to a specific group or part of the whole market. Thus it is mass production, mass distribution and mass promotion of Parle- G for all buyers.

POSITIONING STRATGEY Parle-G is positioned in the minds of people as a value for price product and also as a lowpriced product.

DIFFERENTIATION STRATGEY:For Parle-G the company has used channel and image differentiation tools. Parle-G by far has the most intensive distribution coverage as compared to any other biscuit company in India. Also the name PARLE has an image that generates respect and a belief of good quality in the minds of the buyers.

PACKAGING:As in all other biscuits, packing plays an important role in Parle-G too. The basic small packs are packed mechanically using automated machines and are sealed using the Polly bag sealing machine. These small packs are then manually packed into small boxes and are sent through the

conveyor belt to be packed in large cartons. 160 packets are packed per minute. And in one big box there are 160 Parle-G packets packed. Before, they used to bring the packaging material from outside the company but now it is produced in the factory premises itself. For export purpose the packets have different languages print on them depending upon the geographical location & demand of the people. Each factory has state-of-the-art machinery with automatic printing & packaging facilities.

CONSUMER BEHAVIOR:-

For Parle-G:In India it is a habit to have biscuits along with chai or tea - Parle G is referred to as "biskut" in rural areas - thus when asked for biskut to a shopkeeper it simply means Parle-G biscuit in rural areas. Understanding consumer behavior is tough. The study of consumer behavior includes the knowledge about the consumer, his buying motives & buying habits. Keeping all this in mind, the factors influencing the buying behavior of consumers are: Parle-G being a consumable product is not influenced by factors like cultural factors. As shown above, social factors are further sub divided into three parts namely reference groups, family & social role & status.

1) Reference Group People, especially kids are always influenced by the people around them. They are influenced by friends, relatives, family members especially elder siblings, etc. so if they see anyone around them having Parle-G biscuit, they too want to eat it.

2) Family In his case also, if its a usual habit of the family members to have Parle-G with tea or coffee, the kids in the growing stage or any new member joining the family for tea will form a similar habit or the later will be offered the same biscuit.

3) Personal Factors The factors whose intensity differs from person to person are together termed as Personal factors. They are as follows: -

A ) Age It is consumed maximum by the kids in the age group of 5-10 years i.e. the growing age group. Kids, who have formed the habit of having Parle-G in their early stages of life, continue this practice even after growing up. They continue their consumption of Parle-G even after they grow up.

B ) Occupation The buying behavior of the consumer is influenced also by the occupation he or she belongs to. In case of Parle-G, the purpose for buying the product varies from a person with a high post in a M.N.C. to a poor laborer. For the executive employee, he may or may not buy the product. He may buy a more expensive or an imported biscuit brand because he can afford it. Also he may buy it only to be one of the many snacks available to him. On the other hand, a poor laborer would buy a packet of Parle-G simply to satisfy his hunger. For him, it is not matter of choice or luxury, but a necessity because its the easiest & the cheapest he can get.

C ) Income Income of a person decides its core expenditure segment. If a laborer earns a fixed amount & if a biscuit like parle-g which for sure ensures high level glucose content & immediate energy regained, he would defiantly opt to buy a parle biscuit packet & not spend even that minimal amount of Rs.4 on anything else. But since Parle-G is a low-priced, value for money product a persons income does not really play a role in influencing the purchase of the product. Consumers of all income groups do buy the product.

Marketing Mix (4 Ps)

Product:

Parle-G Parle-G or Parle Glucose biscuits are one of the most popular confectionary biscuits in India. Parle-G is one of the oldest brand names in India and is the largest selling brand of biscuits in India. For decades, the product was instantly recognized by its iconic white and yellow wax paper wrapper with the depiction of a young girl covering the front. Many counterfeit companies have attempted to recreate and sell over quality products of similar names and virtually identical package design. Pack Size & Price: For 19grams:Rs.1/For 44grams:Rs.2/For 93.5grams:Rs.5/For 231.5grams:Rs.12/-

Place: It is available in mostly every retail shop. Promotion: It is relish a delectable experience as they melt in your mouth.

PARLE-Gs tag line is: Hindustan Ki Taakat It is also most famous tag line and it they make advertising through TV advertising and signboards The marketing mix tools used by Parle are Advertising, Sales promotion and Public relations.

Advertising Parle-G started being advertised in the 80's. It was advertised mainly through press ads. The communication spoke about the basic benefits of energy and nutrition. In1989, Parle-G released its Dada ji commercial (link for the ad: http://www.youtube.com/watch?v=5D4PBN0OzuE), which went on to become one of the most popular commercials for Parle-G. The commercial was run for a period of 6years. Parle-G grew bigger by the minute. Be it the packs sold, the areas covered or the number of consumers. It became a part of the daily lives of many Indians. It wasn't a biscuit any more. It had become an icon. The next level of communication associated the brand with the positive values of life like honesty, sharing and caring.

The year 2002 went down as a special year in Parle-G's advertising history. A year that saw the birth of G-Man - a new ambassador for Parle-G. Not just a hero but also a super-hero that saves the entire world, especially children from all the evil forces. A campaign that was not just new to the audiences but one that involved a completely new way of execution that was loved by

children all over the world -Animation. A TV commercial that showed G-Man saving the children from the evil force called Terrolene launched this campaign. It was also supported by print medium through posters and streamers put up at the retail outlets. Another campaign that was launched by Parle for Parle-G was - G maane GENIUS. For this a series of ads were shown in which a little kid eats Parle G and tricks the wise and experienced people. Just a few months back a reminder TV commercial was launched for Parle-G where the product is being called hindustan ki takat (link for the ad: http://www.youtube.com/watch?v=Kxb4bLq35mg). Most of the Parle-G TV commercials tell us that brand awareness is being done by capturing consumer emotion. Heavy promotion plays a major role in creating brand awareness.

Sales Promotion Parle uses the Sales force promotion tool for all its employees. Every year it holds day fairs at branded venues where games and fun events are organized for the employees of Parle and their families; where Parle products are giveaway prizes. Public Relations Parle has done the following for enhancing public relations: In the year 1997, Parle-G sponsored the tele-serial of the Indian superhero, Shaktimaan that went on to become a huge success. The personality of the superhero matched the overall superb benefits of the brand. Parle extended this association with Shaktimaan and gave away a lot of merchandise of Shaktimaan. The children just could not get enough of Parle-G and Shaktimaan.

Parle-Gs Business strategy was one of the best this country has ever seen. Shaktimaan stickers with the Rs.3/- Parle-G packs was a business blockbuster, then Children reportedly jumped off from the terrace expecting a saviour in Shaktimaan.

In the year 2002, it was decided to bring the brand closer to the child who is a major consumer. A national level promo - `Parle-G Mera Sapna Sach Hoga' was run for a period of 6 months. The promo was all about fulfilling the dreams of children. There were over 5 lakh responses and of that, over 300 dreams were fulfilled. Dreams that were fulfilled ranged from trips to Disneyland at Paris &Singapore; meeting their favorite film star Hrithik Roshan; free ride on a chartered plane; 20 scholarships worth Rs 50,000; a special cricket coaching camp with the Australian cricketer - Ricky Ponting; etc.

Golu Galata contest

In Tamil Nadu, traditionally, women decorate various dolls made of clay during Navaratri celebrations by setting up 7-9 steps. This display is well decorated and friends and relatives are invited to witness the same. Through a detailed research, Parle found that due to time pressures, this tradition is slowly dying and is getting restricted to a select few households. Thus, to revive the fading event, Parle had introduced the novel promotion called Parle Golu Galata contest in 2005. After the encouraging response and resounding success of the 2005 Golu Galata contest, in 2006 Parle Products Pvt. Ltd took thecontest to Chennai, Madurai, Trichy, & Kumbakonam. (Golu means Doll & Galatameans Dhammal.)

Brand Yatra: Parle-G Genesis of a genius

Going back in time - Brand History Born way back in 1939, Parle-G is a good case study in volume players as it has been able to play on the trust, relevance and affordability plank well, thus blunting every hyper active competition. Brand Parle-G dominates the volume-dominated biscuit market. Even at a time when multinationals are beefing up their operations and trying to change the dynamics of the market, Parle-Gs numero uno position is unchallenged. Its competitors have roped in superstars like King Khan and Sachin Tendulkar, but Parle-G has only gone from strength to strength. The first agency, which handled the account was Everest Brand Solutions. Grey pitched for the Parle-G account in mid-2006 and has been handling the account since 2007.

Where it stands today - Brand Positioning G for Genius has been Parle-Gs positioning line since 2004. In 2006-07, the line was changed to Hindustan ki Taakat, to assume a bigger platform as the biscuit that stands for strength (taakat) in and for India. But in early 2008, Parle-G reverted to its G for Genius line with a little twist Do Genius.

Gee, its Genius - Agencys take on Brand Parle-G Mithun Roy, AVP Director Client Servicing, Grey, said, The ad was conceptualised on the fact that Parle-G has always been about fortified nourishment that nurtures an overall development of mind and body and enables mental and/or physical agility. It is about genius kids who demonstrate their genius power by achieving a difficult task or by way of being able to overcome a difficult/ tricky situation. It is typically a combination of physical and mental energy the mental smartness to come up with a plan and the physical energy to execute it. The energy could be in various dimensions like intangible and implied, physical and quantified, instant, etc. The situation/ outcome is usually humorous. In the same way, for the Supermarket ad, Darsheel Safary and Aamir Khan are the protagonists, who plan themselves out of a sticky situation by using their geniusness, thanks to Parle-G. Roy further said, The core positioning has always been G for Genius. Its the snack/ biscuit that gives kids and adults alike nutrition and energy, thereby giving them the power to win/ achieve. On the association of Aamir Khan with Brand ParleG, Roy said, Aamir is known as the intellectual actor in the film industry. His intellect is reflected in his movies, endorsements and also the

social work that he does, thereby making him an apt endorser for Parle-G. Aamirs Supermarket commercial has in essence the G for Genius positioning with a twist Do Genius Ek Taakat, which basically means that every Parle-G kid and adult is a Genius in their own way. In this commercial, both Aamir and Darsheel are the geniuses, who have one common factor of strength Parle-G. He added, The one quality that makes the ad so endearing is the chemistry and fun that both Aamir and Darsheel share in the ad, and the fact that even though it is humorous, it is not poking fun at anyone. A dip thats become a habit - An Onlookers Perspective Prathap Suthan, NCD, Cheil Communications, commented, I sort of remember their advertising over the years, that it used to be the trusted snack/biscuit of everyone, from grandfather to grandson, and everyone in between. I also think that was the foundation on which, albeit generic, that the brand has snowballed into the worlds largest selling biscuit brand. I mean, when a country of a billion people mindlessly prefer to dip a particular brand of biscuit into their chai, it will roll on to become the biggest biscuit in the world. Somehow, I think, while I understand the need to get a mental advantage into the mindless act of dipping biscuit into chai, and to consolidate their position with the vulnerable palettes of children, the advertising has, I think, traipsed along from merely being a snack, to full of taste and full of health (Swaad se bhara, swasthya se bhara) to creating their own superman (G-Man) to eventually defining the G in the name to Genius. Personally, Parle-G is a brand that has done terrifically well for itself, despite what advertising could have done to it. I think the success of the brand, lies in its universally likeable taste, and it is pricing more than anything else. I cannot think of any other product/ brand that has held its price line for as long as Parle-G has. It has been clever holding on to

the price and an even cleverer in reducing of the weight that has delivered the numbers, he added. Suthan further said, On the current advertising front, Genius is not a very upcountry friendly expression. But I know that kids will have gravitated towards it. (Anything to do with upstaging adults always work with kiddos). And I also know that millions of gullible parents across India have been led into believing that Parle-G can work wonders for their children. Of course, credit goes to the brand for not overtly saying that a combination of glucose, iron, calcium, milk, wheat flour, sugar, edible vegetable oils, etc., works magically to influence my cranium. But implication has been enough. He continued, A boost of glucose does give you energy, but not intelligence. But I suspect one day, when someone throws a stone at this house, the Genius glass might crack. But Indias little bundles of energy stuck on Parle-Gs taste should take it ahead, even further. To me, that is where the brand has its truthful place. The biscuit has a sheer unadulterated taste. We are slaves to its taste. Not that it will make our children little Alberts. A nibble that you get hooked to, and a dip thats become a habit. Aamir does bring in his radiance to the brand. Though I am not sure enough people saw the ad, or whether it has added an extra layer to Parle-G. Roughly, it has been in the genius area for a while now with predictability creeping in. My gut says that the brands way ahead is to anchor itself in taste and energy. It is certainly not in investing in thinking up stuff like Hindustan Ki Taakat. While rural upcountry India may find favour in the thought, the rest of aspirational India may not jiggle with it. I mean, if the country doesnt eat Parle-G, is India going to be reduced to a weakling? Is our Army going to get jelly-kneed and get soft-hearted? Just how does a pack of biscuits become the spine of a nation? At the end of the day, it is a little biscuit. And it needs to endear to us with its unforgettable littleness and its innocent tastiness that plays in our everyday lives, concluded Suthan.

Parle G launches Parle G Gold

The biscuit promises to give its consumers a richer and a better formulation along with a bigger biscuit and a better bite.

Hoping to take glucose biscuits beyond the masses, Parle has come up with Parle G Gold, a brand extension for Parle G, the leader in the glucose biscuit segment. Maintaining a fine balance between the old world charm to keep old consumers happy, and the volumes that the masses drive with Parle G Gold, it hopes to attract new consumers to the glucose segment with the new offering.

Primarily targeted at urban markets, and consumers who are willing to pay more, Parle G Gold comes with a richer formulation. Over the years, the consumers buying pattern has been constantly changing. They are opting for premium products across biscuit categories and Parle G Gold will offer them a rich formulation and a better bite, says Mayank Shah, Group Product Manager, Parle Products. While Parle G is priced at Rs. 5 for a 84.6 grams pack, Parle G Gold would be available for at a retail price of Rs.10 for a 100 grams pack. As per Neilsen, in terms of volume, Parle G accounts for 78 per cent share (FY 2011-2012) in the glucose biscuit segment. While introduction of Parle G Gold would certainly add volumes to the segment, it will also help increase the value.

Mayank Shah, Group Product Manager, Parle Products The product that has currently been launched in Mumbai only and would be extended to other parts of the country, would be available in all kirana and modern trade stores of the metro. While roping in a new set of consumers, does Parle expect Parle G consumers to upgrade to the new offering? Shah shares, At this point of time, the target groups are different for both the products. However, in the last few years, consumers have started looking for options in the premium biscuits across categories and Parle G Gold provides them a premium option. On of the oldest, the glucose segment contributes close to 43 per cent in volume to the entire Indian biscuit category, and is growing at a rate of 15 per cent YOY. With Parle G Gold, we are expanding our consumer base and not replacing it. Both the products will remain in the market, says Shah.

Pravin Kulkarnii, General Manager, Parle Products While Parle G evokes nostalgia for the older generation, the Gen X has latched on to premium offerings. It is clear that while Parle wants to retain the loyalists, it hopes to bring into fold the youth too. The thought comes across the new packing, which has a hazy BOPP material in a mix of royal colours of red and gold representing the premium quality of the biscuit. The Parle baby still dons the pack, wooing both the old and new consumers. Consumers have an emotional attachment with Parle G, like the baby on the Parle G pack. We cannot remove the baby from the pack as almost 90 per cent of our consumers will move away from the brand if we do. The challenge is to modernise the brand and get new consumers as well as retain the old consumers, says Pravin Kulkarnii, General Manager, Parle Products. Parle G alone contributes to about 60 per cent of the companys biscuit volumes.

Agency Details
The First agency, which handled the account was Everest Brand Solutions, Grey pitched for the Parle-G account in mid-2006 and has been handling the account since 2007. However, Everest Brand Solution still holds accounts for 80% of Parle Brands.

Everest Brand Solutions Founded in 1946, Everest Integrated Communications as of 2006 have been rechristened Everest Brand Solutions. The agency is 64 years old, and Is a member of the WPP Group, with Offices in Mumbai and Delhi.

Grey Global Group Type Industry Founded Headquarters Key people Services Subsidiary, WPP Group Advertising, Marketing 1917 (1917) New York, NY, U.S. James R. Heekin III, Chairman & CEO Brand management, Marketing strategy, Creative development, Direct Marketing, Public Relations, Public affairs, Digital Marketing, Production 1.307 billion USD (2003) 6,500 WPP Group Grey, G2, GHG, GCI Group, Mediacom Worldwide, Alliance, G WHIZ, WINGLATINO www.grey.com

Revenue Employees Parent Subsidiaries Website

Appeals Recommended
Humorous Appeal This is because the product is a low involvement product and is getting old now. So to remain top of mind brand and defend its market share Parle G has to rely on humorous appeal to keep reminding of the brand. Image differentiation Through campaigns as G = Genius, mein takat hun and Public Relation Campaigns like Sponsorship of Shaktiman, a TV serial.

Designing Communication
Source The Brand Itself has enough: Credibility Attractiveness Power Still for keeping up with competition a celebrity should be used to increase Attractiveness as it is a low involvement product category. Message Encoding The message encoded (using humorous appeal) should speak about the: Nutrition and Energy associated with consuming the product. Health Compatibility with beverages. Sharing, & Taste Channel Selection Non-personal channels Print Media Broadcast Media Public Relation Campaigns for Word of Mouth

 Feed Back Feed back shall be taken from: Participations at PR events Increase in Sales, both volume and number.

Source, Message and Channel Factors Source Parle G is one of the most popular Brands. So the Brand can speak for itself and the message will be delivered. However, due to competition and use of celebrities by competitors to attract customers, use of celebrities like Amir Khan as source is a great move.

Message Message revolves around the positioning catering to the following: Positive values of life like honesty, sharing and caring. Synonymous to energy & nutrition. Symbolize quality, health and great taste.

Channel Non-personal channels are preferred as the Brand caters to mass market