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    Product Life Cycle of Parle G

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    Darshan Sharma
    Parle G was introduced in 1939 in India and followed a price skimming strategy to gain market share. During its growth stage from 1949 to 1997, Parle G expanded distribution across India and produced over 150 tonnes per year by the 1950s. In the maturity stage from 1997 to 2006, Parle G faced competition from new glucose biscuit brands but maintained customer loyalty. However, its decline stage began in 2006 when it raised prices by 50 paise, leading to a drop in market share from 42.2% to 38.4% as customers switched to alternatives.

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    Product Life Cycle of Parle G

    Uploaded by

    Darshan Sharma
    6K views3 pages
    Parle G was introduced in 1939 in India and followed a price skimming strategy to gain market share. During its growth stage from 1949 to 1997, Parle G expanded distribution across India and produced over 150 tonnes per year by the 1950s. In the maturity stage from 1997 to 2006, Parle G faced competition from new glucose biscuit brands but maintained customer loyalty. However, its decline stage began in 2006 when it raised prices by 50 paise, leading to a drop in market share from 42.2% to 38.4% as customers switched to alternatives.

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    Parle G was introduced in 1939 in India and followed a price skimming strategy to gain market share. During its growth stage from 1949 to 1997, Parle G expanded distribution across India and produced over 150 tonnes per year by the 1950s. In the maturity stage from 1997 to 2006, Parle G faced competition from new glucose biscuit brands but maintained customer loyalty. However, its decline stage began in 2006 when it raised prices by 50 paise, leading to a drop in market share from 42.2% to 38.4% as customers switched to alternatives.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    6K views3 pages

    Product Life Cycle of Parle G

    Uploaded by

    Darshan Sharma
    Parle G was introduced in 1939 in India and followed a price skimming strategy to gain market share. During its growth stage from 1949 to 1997, Parle G expanded distribution across India and produced over 150 tonnes per year by the 1950s. In the maturity stage from 1997 to 2006, Parle G faced competition from new glucose biscuit brands but maintained customer loyalty. However, its decline stage began in 2006 when it raised prices by 50 paise, leading to a drop in market share from 42.2% to 38.4% as customers switched to alternatives.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 3

    Name : Arhat Hiteshkumar Shah

    Roll No. 207780592016

    Today, in this analysis of Product Life Cycle , we are


    considering Parle G.

    Parle G is a name which is identified by everyone including


    the rich and poor , from a child to till the aged man.

     Introductory/Development Stage:-

     Parle-G was introduced in the year 1939 even before


    independence when the market was dominated by
    famous international brands that were imported freely
    and no Indian brands.
     Parle-G followed the price skimming strategy, thus
    keeping the price of the product low and thus gained
    larger market share and lots of attention of the masses.
     In the introductory stage the paper media was mainly
    used for advertising but the distribution channel was not
    that strong as the company’s manufacturing facility was
    located in Vile-Parle, Mumbai so it was not able to cover
    larger geographical area but Parle-G performed well in
    the area covered by it and attracted masses.

     Growth Stage:-
     Parle-G’s growth stage continued from 1949 to 1997.

     By the year 1949, Parle Gluco biscuits were available not

    just in Mumbai but also across the state.


     It was also sold in parts of North India. By the early 50s,
    over 150 tonnes of biscuits were produced in the
    Mumbai factory. Looking at the success of Parle-G, a lot
    of other me-too brands were introduced in the market.
    And these brands had names that were similar to Parle
    Gluco Biscuits. so that if not by anything else, the
    consumer would err in picking the brand. This forced
    Parle to change the name from Parle Gluco Biscuits to
    Parle-G.
     In 1989 Parle-G released its Dadaji commercial, which
    went on to become one of the most popular
    commercials for Parle-G. The commercial was run for a
    period of 6 years. In this stage also the price of the Parle-
    G biscuits were kept low following the sell brands not
    price motto. The company however used differentiated
    pricing strategy as per the geography as the freight cost
    for reaching remote areas was high.
     The company did not face much of the competition and
    challenges in this stage.

     Maturity Stage:-
     The maturity stage for Parle-G started in the year 1997

    and continued till 2006.


     In this period Parle-G faced stiff competition due to the

    entry of 3 more glucose biscuits brands, however, the


    company was not much affected by the entry of the
    other brands due to the customer confidence and
    loyality to the brand and also thru its vast advertising
    regime.
     Through out its maturity phase Parle-G wider reach

    through different medium-education, hospital, army,


    railway & bus, donations, sports, NGOs. Its brand value
    compelled suppliers to sell Parle-G at low commission.
     Decline Stage:-
     In this stage the sales begin to decline as the maket

    became saturated, the product became technologically


    obsolete. The  declining production volume and
    eventually no more profits can be made.
     The decline stage of Parle-G started in 2006 and

    continues till date. The reason of the decline of the so


    preferred brand is the .50 paise price hike by the firm.
    Parle-G was sold at Rs.4 for 100gms. and Rs. 2 for 50
    gms for almost 12 years. But in the year 2004 Parle-G
    increased its price to Rs. 4.50 for 100gms. and Rs. 2.50
    for 50 gms packs. This didn’t affect the company initially
    but slowly the company started loosing its shares and
    the actual decline started in the year 2006 when the
    company’s market share dropped from 42.2 (2005) to
    38.4 (2006) %. By this time Parle hold 52% share in the
    global market but in Indian market in terms of value,
    Britannia leads the market with 37% share, followed by
    Parle’s 31.3 % and ITC’s 6.3 %.

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