PRESENTED TO

PRESENTED BY

Prof. R.Iyer

Aditi Kaushal Awanish Kumar Bhanuteja V Mayank Sharma R Kalasagar Renu Verma

PARLE
Established in 1929. 1st brands Parle Glucose and Parle Monaco. Market leader in many products. 35% share of the total biscuit market. 14 manufacturing units for biscuits & 5 manufacturing units for confectioneries. Annual turnover 5000 cores in 2013.

PARLE-G
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 companys 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.

RURAL MARKET OF PARLE-G

Parle-G is concentrating heavily on rural marketing to have high growth rate in rural areas. Rural market penetration is 50 65%. Parle-G market reach very high due to distribution network. Consumer psyche: Recognize Not as Parle-G butas.. biscuit ka puda. Parle-G is increasing awareness to know Parle-G as brand. Target younger generation, i.e. school children. Parle-G is a market leader in glucose biscuit category in rural marketing.

MARKETING STRATEGIES
Target younger generation, i.e. school children, Associate with various government initiatives like, Primary Education scheme, National Rural health mission centres, Mid-day meals being serve in primary school, This will help in Brand Registration. Associate Parle-G as health food, and complete nutrition package.

Cont..

Parle G has adopted the Market Penetration strategy i.e. low price along with capturing of a large market.
Also they focus on providing good quality products at the same time, which means it uses the value pricing method. The value-for-money positioning helps generate large sales volumes for the products. Parle-G is available in Re 1,Rs 2, Rs 4 to Rs 25 packet. Profit margin for distributors is 4% and for retailers is 1012%. Parle-G maintained its price of Rs.4.00 for the last 12 yrs & has seen the variation in its sales due to increase in price by mere 50p.

DISTRIBUTION NETWORK
Intensive Distribution Increases coverage and sales Increases product availability Channel Members of the Distribution Network of Parle Parle Depots Wholesalers and Distributors Carry forward agents Retailers Channel Members and Logistics Level 1 Level 2 Level 3 Channel Dynamics

MANUFACTURER

PARLE DEPOTS

WHOLESELLER

TRANSPORTATION

RETAILER

CUSTOMER

DISTRIBUTION NETWORK LOGISTICS

Selection of Channel Members for Parle Authentication Proof of solvency Safety of inventory Motivation of Channel Members Initiate advertising and sales promotions Incur costs and get benefitted in long run Channel Members of the Parle Distribution work Distributors Retailers Evaluation of Channel Members Beat plan Cumulative performance

DISTRIBUTION STRATEGIES
Multipurpose distribution centres Public distributaries

Feeder markets/mandi towns

Shandies/haaths/jatras/melas Use of co-operative societies

CONFLICTS AND COOPERATION

Conflicts among Channel Members Ownership of assets Stocking issues Replacement of products Credit policy Cooperation among the Channel Members Parle quality circles Pilot Salesman scheme Scheduling of sales Agreement Defining rights

PROBLEMS ENCOUNTERED
Stock out Shortage of Parle G Freebies Allocation Problems Further Dispatch Problem

Duplicate biscuits
Poor Sale Promotion Skills

DISTRIBUTION CHANNEL AND PARLE

Companys strength is in procurement of raw materials. Sound inventory management. Loyal cooperatives that provide products only to them. Good transport channel and lowering costs.

Company doesnt undertake many promotion schemes.

Strong relationship with constituent channel members.

RECOMMENDATIONS
Increase the margins. Pushcarts.

Should go in Parle Zones Full range display. Easier to promote new products. Easy to push impulse purchase products. Brand building exercise will be enhanced.

CONCLUSION
Parle is one of the best manufacturing company of Biscuits and other products among their competitors. Looking at the challenges and the opportunities which rural markets offer to the marketers ,it can be said that the future is very promising for those who can understand the dynamics of rural markets and exploit them to their best advantage like Parle.