Scribd
Upload
3K views16 pages

A Presentation On Parle G

Parle is India's largest manufacturer of biscuits and confectioneries. It has a 35% share of the biscuit market and 15% share of the confectionery market. Parle employs a value pricing strategy for its products like Parle-G, targeting all income groups with affordable prices. Parle-G has maintained a price of Rs. 4 for the past 25 years through strict cost controls and minimizing wastage to keep providing value to customers. Parle faces competition from companies like Britannia but has maintained its leadership through brand loyalty for Parle-G and understanding customer preferences.

Uploaded by

sujata_r86
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
3K views16 pages

A Presentation On Parle G

Parle is India's largest manufacturer of biscuits and confectioneries. It has a 35% share of the biscuit market and 15% share of the confectionery market. Parle employs a value pricing strategy for its products like Parle-G, targeting all income groups with affordable prices. Parle-G has maintained a price of Rs. 4 for the past 25 years through strict cost controls and minimizing wastage to keep providing value to customers. Parle faces competition from companies like Britannia but has maintained its leadership through brand loyalty for Parle-G and understanding customer preferences.

Uploaded by

sujata_r86
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 16

Pricing Strategy

By Sujata Ramteke
 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.
HIDUSTAN KI TAKAT - PARLE G
 Largest manufacturer of biscuits since 80 years
 Quality, nutrition and great taste.

 Faith and trust

 More than 1500 Wholesalers an 1.3 Million retail outlets

 Example of marketing brilliance for Competitors

 65 % of Glucose Biscuit market.


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
PARLE – G PRICING STRATEGY
 Market Penetration strategy
 Value pricing

 The value for money positioning helps generate large


sales volumes for products.
 Profit margin for distributors is 4% and for retailers is 10-
12%
  Parle G is available in Re 1,Rs 2, Rs 4 to Rs 25 packet

 Rs.4.00 for the last 25 yrs

 Increase in price by mere 50p


HOW PARLE-G MAINTAINED ITS PRICE OF RS.4.00FOR THE LAST 25
YRS????
 Low 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.

 100g pack costing Rs 4 has net weight of


93.5g from Jan’2008.
 Parle-G has seen the variation in sales
due to increase in price.
 By mere 50 paise in 1995.
SWOT ANALYSIS OF PARLE
Strengths Weakness

•Diversified product range, •Dependence on retailers & grocery


•Parle Brand •Stores for displaying diversified
•Extensive distribution network. Parle
•Low and mid price range •Products on shelf, induce impulsive
•Catering to mass, buy
•Better understanding of •Dependence on Parle G
consumer psyche (flagship brand)

Opportunities Threats

•Estimated annual growth of 20% •Hike in cost of production due to


•Changing consumer preference, hike in Raw material cost
• Increasing demand for sugar free, •Increasing distribution cost
Diet biscuit, •Local bakery products
•Entry of various new entrant, ITC etc
COMPETITORS
PARLE VS BRITANNIA
Description Britannia Parle
Established 1896 1929
Nature of business Public ltd Family run business

No of manufacturing units 5 own ,40CMU 8 own units ,60 CMU

Market share ( value) 32.80% 32.94%

Ads Major methods Cricket events and player Celebrities endorsement

New areas of promotion Environment Health and wellness


INTRODUCTION OF BRITANNIA
 Britannia was started in Calcutta in 1892
 In 1979, Britannia Biscuit Company was re- christened
Britannia Industries Limited.
 Forbes Global rated Britannia “One amongst the Top 200
Small Companies of the World”.
 The Economic Times pegged Britannia India’s 2nd most
Trusted Brand.
 In Indian biscuits market, Britannia is highest

selling in terms of value, followed by Parle and ITC


BRITANNIA PRICING STRATEGY
The pricing strategies of Britannia are:-
 Market-Penetration Pricing for the products like tiger.

 Product-Quality Leadership for products like Good Day


and Treat.
 Special-Event Pricing in festive seasons.
COMPARATIVE ANALYSIS OF PARLE – G AND BRITANNIA TIGER

Vs
COMPARATIVE ANALYSIS OF PARLE – G AND BRITANNIA TIGER
 Nearest competitors in Glucose Category.
 “Tiger” gained 28 % Market Share in 100 gram Glucose biscuit
segment in a short span of 7 years (1997 – 2004)

VURSUS

 “Parle G” established since 60 years – 57 % Market Share in this segment.


 In 2006 – 07 Parle G raised price for its 100 gram pack by 50 paise (i.e.
Rs. 4.50), while Tiger maintained its price at Rs. 4/-.

RESULT

 Sales of Parle G dipped to Tiger. Customers of Parle G tended to


switch- over to Tiger. PARLE G is highly price sensitive since it
caters to the bottom of the pyramid.
COMPARATIVE ANALYSIS OF PARLE – G AND BRITANNIA TIGER
 PARLE G’s QUALITY = BRAND LOYALTY
Research Says Parle G Customers Prefer Parle G Owing To Its
Milky Taste

 What should Parle G do to sustain the market


leader position?
 Parle G is price sensitive product
 Keep the price of Parle G same
 High end product can absorb the increased production cost
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.
Thank you…!!!

You might also like