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Price penetration policy Penetration pricing is a strategy employed by businesses introducing new goods or services into the marketplace. With this policy, the initial price of the good or service is set relatively low in hopes of "penetrating" into the marketplace quickly and securing significant market share
Established in 1929 1st brands - Parle Glucose and Parle Monaco Market leader in many products 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.
PRICING STRATEGY
Appeal
to all income
groups Low and mid range price segments Value for money Strict cost control at every point in supply chain
profit margin. Decrease in weight per biscuit. Bulk purchase of raw material. Reduced wastage- 1% of the 115 tones. Increased productivity. Availability in remote places. Avoid sophisticated packing. Parle-G has seen the variation in sales due to increase in price. By mere 50 paise in 1995.
CONCUSION
This shows that products even at low prices can earn substantially considerable profits. Importance of Parle G in comparison with its competitors, local and imitation brands. The views of the consumers on the Parle G biscuits also put light on its vitality. To sum up in general, the Indian rural market has grown in recent years in size, range and sophistication. The company wants to continue having that strong emotional connect with consumers and doing social deeds such as offering scholarships is part of its corporate social responsibility initiatives, which should keep the biscuit major on its pedestal. Successful rural marketing calls for a review of the nature and profile of rural consumers, designing the rural products to appeal to them, and adopting suitable media as well as appropriate strategies for communication and distribution.
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