PARLE
MARKETING PLAN: Shrink BISCUITS
EXECUTIVE SUMMARY
This report is an earnest endeavor made to understand the present market scenario in
biscuits captured by the Parle and to suggest a new product or a new segment altogether
and then decide its marketing strategy and analyze the market feasibility.
We suggested a new product in the biscuit segment to Parle. The product’s name being
‘Shrink’ is basically a weight reduction biscuit unlike the other weight maintain biscuits
which are currently available in the market. The main purpose of the biscuits is:
1) Weight Reduction
2) Digestion
3) Cleansing
Based upon these purposes, the ingredients will be put. Although these biscuits are weight
reducing, for the criteria of taste they will be available in three flavors. It is a low fat, low
calorie and high fiber product. This product will be aiming mostly at A, A+ market which will
include the health conscious people and the niche audience. The target audience is the
consumers varying from an age group of 15 – 50 years.
The purpose of selecting this product is basically to fulfill the desire of health conscious
people and providing them light diet with good taste and a variety of flavors. Today, most of
the people mainly in the A class and upper middle class, irrespective to whether fat or thin
have the desire to lose weight and turn more slimmer.
The product is also packed keeping in mind the convenience factor for the consumers. The
market strategy will include the promotion of the product by TV commercials and visual
displays at food joints as well as placing hoardings at strategic locations and providing free
samples and discount coupons to approach the correct target audience. The product will
initially be launched in the metropolitans and based on the success, the manufacturing
units shall expand. It will follow the well established Parle channel for distribution.
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PARLE
MARKETING PLAN: Shrink BISCUITS
CONTENTS
S.NO TOPIC PAGE NO.
1. CURRENT MARKETING SITUATION
Current Market Situation
Competitor Analysis
2. S.W.O.T. ANALYSIS
Strenth
Weakness
Opportunities
Threats
3. MARKETING STRATEGY
Product Development
Distribution Network
Market Segmentation
Costing
Marketing Mix
4. ACTION PROGRAM
5. BUDGET
6. CONTROL AND MEASURES
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PARLE
MARKETING PLAN: Shrink BISCUITS
CURRENT MARKETING SITUATION
BISCUIT INDUSTRY IN INDIA:
The total biscuit production in India is estimated to
be around 30 lakh MT, organized sector
accounts for 65% and the unorganized sector
accounts for 35% of the total industry volume.
The organized sector is valued at above Rs
8000 crores.
The biscuit industry is estimated to grow over
15-17% in the next few years.
The biscuit industry employs almost 3.5 lakh
people directly and 30 lakh indirectly.
Consumer Pattern across Various Regions is as
shown alongside.
PRODUCT LINE:
Parle Products has been India's largest manufacturer
of biscuits and confectionery, for almost 80 years.
With a 40% share of the total biscuit market and a 15% share of the total confectionary
market in India, Parle also provides snacks and it has become multi-million dollar company.
While to consumers it's a beacon of faith and trust, competitors look upon Parle as an
example of marketing brilliance.
COMPETITORS:
The main competitors of Parle include: -
Britannia:
Sunfeast
Priya Gold
Anmol
40%
SWOT ANALYSIS
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PARLE
MARKETING PLAN: Shrink BISCUITS
STRENGTH
1. Weight reduction biscuit under the Parle brand
2. It has three main purposes-1) weight reduction, 2)digestion and 3)cleansing.
3. Different sizes of packets are available.
4. An experienced team of sales and marketing executives.
5. Available in three flavours.
6. Largest distribution system.
7. Developed under a strong R&D team.
WEAKNESS
1. Not much target audience in the age group below 15 years.
2. No surity of acceptance by all segments of society.
3. Cost slightly more as compared to other weight maintain biscuits.
4. Does not show the weight reducing effect if not consumed according to the instructions.
OPPORTUNITY
1. Can serve as a healthy diet for the health conscious people.
2. Opportunity of changing consumer preference.
3. Will increase the biscuit industry market.
THREAT
1. Competition from the weight maintain biscuits and Kellogs providing ‘K special’.
2. Ever increasing competition from multinationals and local companies.
3. Increase in sale of cheap local bakery products.
4. Emerging substitutes like wafers, snacks and toast.
5. Hard to replace common breakfast options.
MARKETING STRATEGY
It presents the broad marketing approach that will be used to achieve the plan’s objectives.
A marketing strategy combines product development, promotion, distribution, market
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PARLE
MARKETING PLAN: Shrink BISCUITS
segmentation, pricing and other elements identifying the firm's marketing goals within a
stated timeframe.
PRODUCT DEVELOPMENT:
Most Parle offerings are in the low and the mid range price segments and with the
introduction of the suggested ‘weight reducing biscuits’ they would target a niche market, a
segment it has never targeted.
Product is to be consumed as breakfast as well as an evening snack.
PORTER’S GAME PLAN
Product concentrates on achieving performance in an important customer benefit area
valued by a part of the market. Business is targeting a niche market with focus on quality in
the weight reduction technique market.
Therefore Parle’s Shrink follows 3rd game plan i.e. focus with quality differentiation.
DISTRIBUTION NETWORK :
The extensive distribution network, built over the years, is a major
strength for Parle Products. Parle biscuits & sweets are available to
consumers, even in the most remote places and in the smallest of villages
with a population of just 500.
Parle has nearly 1,500 wholesalers, catering to 4,25,000 retail outlets
directly or indirectly. A two hundred strong dedicated field force services
these wholesalers & retailers. Additionally, there are 31 depots and C&F
agents supplying goods to the wide distribution network.
MARKETING SEGMENTATION:
SEGMENTATION VARIABLES DATA
GEOGRAPHIC
Country India
Cities 5 metropolitans
Density Urban
Climate Store in cool dry places
DEMOGRAPHIC
Age 15-50 years
Gender Male, female
Occupation All occupation
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MARKETING PLAN: Shrink BISCUITS
Education Schools, colleges, spas, salons, hospitals
PSYCHOGRAPHIC
Social class A, A+ class
Lifestyle Believers, health conscious people
BEHAVIOURAL
Occasions No special occasion can be consumed any
time
Benefits Weight reduction, digestion and cleansing
effect
Loyalty status Moderate
COSTING:
INGREDIENTS QUANTITY COST
Wheat flour 24.5g Rs 0.2
Whole wheat flour 10.5g Rs 0.2
Ragi 7g Rs 0.07
Edible oil 4.2g Rs 0.26
Oats 7g Rs 0.69
Sugar 2.8g Rs 0.08
Jowar 5.6g Rs 0.033
Wheat bran 2.1g Rs 0.031
Fruit essence 2.8g Rs 0.7
Isabgul 2.8g Rs 0.35
Ephedra 0.7g Rs 0.63
Total 70g Rs 3.25
Packet cost = Rs 0.60
70g packet cost = Rs (3.25 + 0.60)
= Rs 3.85
Overhead variable cost= Rs 0.60
Transportation cost = 4% =Rs 4.08
Packet cost = Rs 4.45
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PARLE
MARKETING PLAN: Shrink BISCUITS
Own profit = 15% = Rs 0.667
Profit margin to distributor = 4% = Rs 0.178
Profit margin to retailer = 12% = Rs 0.534
Cost Price = Rs 102(for 14 days)
70g packet cost = Rs 9.28
490g packet cost = Rs 65(for 7 days)
980g packet cost = Rs 130 (for 14 days)
MARKETING MIX: The four P’s to achieve the marketing objectives in the target market:
PRODUCT:
Name -Shrink
Tagline : “ Something more than special”
Flavours – Orange , Mango , Elaichi
Design – long cuboidal biscuits
Features – Weight reduction, digestion and cleansing
Inner Packaging :
The packets will be available in 490 gm (for 7 days) and 980 gm (for 14 days) .
PRICE:
Maximum retail price available to customers:
490gm for Rs 65
980gm for Rs 130
PLACE
Initially launching in the A, A+ stores in the four metropolitans - Mumbai, Delhi,
Bangaluru and Kolkata.
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PARLE
MARKETING PLAN: Shrink BISCUITS
PROMOTION
Sales Promotion
In house store promotion ,
Cross category ( complimentary packs 0f 50 gm with horlicks)
For 490g (10% discount ) and for 980g (20% discount) on Talwarkar gym
membership.
Contests will be held among students in the colleges for a span of one week to show
the shrink biscuits impact.
Free samples of 35g would be distributed in gyms, beauty salons, spas and outside
hospitals.
Provide incentive 2 big bazaar to keep the product
Advertising
Instore broadcast of the product for 15-20 secs in big stores like Hypercity.
Free samples along with movie tickets in A class theatre to target the niche market.
Outer Packaging
Cardboard box covered by a metallic sheet.
Packaging Sizes :It will be available in 70 G, (70x7) 490G , (70x14) 980 G
It will be available in 490g (for 7 days) and 980g (for 14 days).It will be provided in
such a quantity so that the fat reducing effect can be seen.
The 70 gm packages are only for promotion purpose.
CONTROL MEASURES
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PARLE
MARKETING PLAN: Shrink BISCUITS
Plan B
If the above action plan fail for some reason and the marketing strategy is not
implemented as desired then for controlling the market situation some measures can be
taken up by the company.
Some of these are:
Creating tie-ups with health drinks like Horlicks, Complain etc.
Decreasing promotional activities.
Taking back the product and re-launching it.
Adding one more flavour to boost up sales.
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