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A Study of Industry Analysis and Competitive Advantages of PARLE Products

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27 views75 pages

A Study of Industry Analysis and Competitive Advantages of PARLE Products

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e_deepa
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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A

Research Project
On

“A Study Of Industry Analysis And Competitive


Advantages Of PARLE Products”

Submitted To
G.S. COLLEGE OF COMMERCE & ECONOMICS (Autonomous), NAGPUR
Affiliated To
RASHTRASANT TUKADOJI MAHARAJ,
NAGPUR UNIVERSITY

In partial fulfillment for the award of the degree of


BACHELOR OF BUSINESS ADMINISTRATION

Submitted by
Aliza Ali

Under the Guidance of


Dr. Afsar Sheikh

G.S. COLLEGE OF COMMERCE & ECONOMICS, NAGPUR


For Academic Year 2023-24
G.S. COLLEGE OF COMMERCE & ECONOMICS, NAGPUR
For Academic Year 2023-24

CERTIFICATE

This is to certify that “ALIZA ALI” has submitted the project report titled “A Study
Of Industry Analysis And Competitive Advantages Of PARLE Products”,
towards partial fulfillment of BACHELOR OF BUSINESS ADMINISTRATION
degree examination. This has not been submitted for any other examination and does
not form part of any other course undergone by the candidate.

It is further certified that she has ingeniously completed her project as prescribed by
Rashtrasant Tukadoji Maharaj Nagpur University, Nagpur.

Dr. Afsar Sheikh Dr. Afsar Sheikh


(Project Guide) (Co-ordinator)

Place: Nagpur

Date:
G.S. COLLEGE OF COMMERCE & ECONOMICS, NAGPUR
For Academic Year 2023-24

DECLARATION

I here-by declare that the project titled “A Study Of Industry Analysis And
Competitive Advantages Of PARLE Products” has been completed by me in
partial fulfillment of BACHELOR OF BUSINESS ADMINISTRATION degree
examination as prescribed by Rashtrasant Tukadoji Maharaj Nagpur University,
Nagpur and this has not been submitted by any other examination and does not form
the part of any other course undertaken by me.

Place: Nagpur ALIZA ALI

Date:
G.S. COLLEGE OF COMMERCE & ECONOMICS, NAGPUR
For Academic Year 2023-24

ACKNOWLEDGEMENT

With immense pride and sense of gratitude, I take this golden opportunity to express
my sincere regards to DR. PRAVEEN MUSTOOR, Principal, G.S. College of
Commerce & Economics, Nagpur.

I am extremely thankful to my Project Guide DR. AFSAR SHEIKH for her guideline
throughout the project. I tender my sincere regards to Co-ordinator, DR. AFSAR
SHEIKH for giving me outstanding guidance, enthusiastic suggestions and invaluable
encouragement which helped me in the completion of the project.

I will fail in my duty if I do not thank the Non-Teaching staff of the college for their
Co-operation.

I would like to thank all those who helped me in making this project complete and
successful.

Place: Nagpur ALIZA ALI

Date:
INDEX

SR. NO. PARTICULARS PAGE NO.

1. Introduction 1-4

2. Company profile 5-36

3. Literature Review 37-39

4. Research Methodology 40-43

 Research Design 41

 Problem Defination 42

 Need of study 42

 Objectives of study 42

 Limitations of study 43

 Hypothesis 43

5. Data Analysis And Interpretation 42-56

6. Findings 57-58

7. Conclusion 59-60

8. Suggestions 61-63

9. Bibliography 64-65

Anexture 66-69
G.S College of Commerce and Economics, Nagpur 2023-24

CHAPTER 1
INTRODUCTION

1 ALIZA ALI (BBA 3RD YEAR)


G.S College of Commerce and Economics, Nagpur 2023-24

INTRODUCTION

What is Industry Analysis

An Industry Analysis is a way of examining the external factors that influence a


particular industry, such as the level of competition, the market size, the trends, the
threats, and the opportunities. It helps businesses and investors to understand the
current and future state of the industry and make strategic decisions accordingly.

TYPES OF INDUSTRY ANALYSIS:

 COMPETITIVE FORCES MODEL (PORTER'S FORCES):

According to Porter, analysis of the five forces gives an accurate impression of


the industry and makes analysis easier. The five forces are- Intensity of industry
rivalry, Threat of potential entrants, Bargaining power of suppliers, Bargaining
power of buyer, Threat of substitute goods and services.

 BROAD FACTORS ANALYSIS (PESTLE ANALYSIS):

It is commonly called the PESTLE analysis stands for Political, Economic,


Social and Technological. PEST analysis is a useful framework for analyzing
the external environment.

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G.S College of Commerce and Economics, Nagpur 2023-24

 SWOT ANALYSIS:

It stands for Strength, Weakness, Opportunities and Threats. It can be a great


way of summarizing various industry forces and determines their implications
for the business in question.

Competitive Advantages

Competitive advantage is the leverage a business has over its competitors. It can be
gained by offering clients better and greater value. There are two main types of
competitive advantages- Comparative advantage and Differential advantage.

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G.S College of Commerce and Economics, Nagpur 2023-24

Parle Products: A Taste of Success in the FMCG Landscape

What is FMCG

FMCG, or Fast-Moving Consumer Goods, refers to products that are purchased


frequently, have a relatively low cost, and a short shelf life. These products are
essential for everyday living and include items such as- Food and beverages, Personal
care, Household care, Stationery and paper products. The FMCG industry is the
fourth largest sector of the Indian economy.

Parle Products, a prominent player in the FMCG sector, has established itself as a
household name worldwide, synonymous with quality, affordability, and taste. Its
flagship brand, Parle-G, often dubbed the "Biscuit of India," enjoys widespread
popularity, transcending geographical boundaries. Parle's success is attributed to its
astute industry analysis and strategic positioning, allowing it to maintain a
competitive edge amidst tough competition. Through an extensive distribution
network and embracing technological advancements, Parle effectively capitalizes on
emerging opportunities, reinforcing its market dominance.

4 ALIZA ALI (BBA 3RD YEAR)


G.S College of Commerce and Economics, Nagpur 2023-24

CHAPTER 2
COMPANY PROFILE

5 ALIZA ALI (BBA 3RD YEAR)


G.S College of Commerce and Economics, Nagpur 2023-24

INTRODUCTION TO PARLE COMPANY

A LEGACY OF DELICIOUSNESS

Established in 1929, Parle Products stands as one of India's most esteemed food and
beverage companies, celebrated for its diverse array of biscuits, confectionery, and
snacks. With nearly a century of experience in the industry, Parle has earned a
reputation for delivering high-quality products that resonate with consumers across
the nation.

From its humble beginnings in the suburbs of Mumbai, Parle Products has grown
into a household name, capturing the hearts and taste buds of generations. The
company's commitment to excellence, innovation, and consumer satisfaction has been
the cornerstone of its success story.

Parle's product portfolio encompasses a wide range of offerings, catering to the


diverse preferences of consumers. Whether it's the iconic Parle-G biscuits, cherished
for its nostalgic appeal and wholesome taste, or the delectable range of confectionery
items like Melody, Kismi, and Mango Bite, Parle has something to delight every
palate.

In addition to its well-loved biscuits and confectionery, Parle also offers a variety of
savory snacks, including the popular Monaco biscuits, KrackJack, and Hide & Seek
cookies, which have become synonymous with indulgence and taste.

Moreover, beyond its commitment to delivering delicious treats, Parle Products


prioritizes sustainability and social responsibility. The company employs stringent
quality control measures to ensure the safety and purity of its products, while also
actively engaging in initiatives aimed at environmental conservation and community
development.

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G.S College of Commerce and Economics, Nagpur 2023-24

As Parle Products continues to expand its footprint both domestically and


internationally, it remains steadfast in its mission to enrich lives through the joy of
wholesome and delicious food. With a legacy built on trust, quality, and innovation,
Parle Products is poised to remain a cornerstone of India's culinary landscape for
generations to come.

Parle is also the top FMCG brand in India, according to a report by Kantar
Worldpanel, based on its consumer reach and frequency of purchase. Parle has been
operating since 1929, and has a presence in over 100 countries.

 Company type : Private


 Traded as : Unlisted
 Industry : Food processing
 Founded : 1929; 95years ago
 Founders : Chauhan family
 Headquarters : Vile Parle(East), Mumbai, Maharashtra, India.
 Area served : Worldwide
 Products : Parle-G, 20-20 Cookies, Happy Happy, Hide & Seek, Krackjack,
Magix Creme, Milano, Monaco, Melody
 Revenue : ₹17,223 crore (US$2.2 billion) (FY23)
 Net Income : ₹905 crore (US$110 million) (FY23)
 Owner : Vijay Chauhan, Sharad Chauhan, Raj Chauhan
 Number of employees : 50,500

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G.S College of Commerce and Economics, Nagpur 2023-24

VISION AND MISSION STATEMENT

VISION: To be the leaders in their business domain.


PROPOSED VISION STATEMENT :
They want to say here that they will be leaders in their business by maintaining high
quality goods, introducing new and innovative products, reaching every part of India.
By this they may prove them to be a leader in their business domain.

MISSION: To nourish, strengthen and delight millions.


PROPOSED MISSION STATEMENT:
As for the 95 years, Parle G has been a part of the lives of every Indian. From the
snowcapped mountains in the north to the sultry towns in the south, from frenetic
cities to laid back villages. So, to strengthen millions and to nourish them that is their
mission.

8 ALIZA ALI (BBA 3RD YEAR)


G.S College of Commerce and Economics, Nagpur 2023-24

HISTORY OF PARLE COMPANY

Evolution and Diversification: Parle's Journey Through Time

Founding Parle Products (1929):

In 1929, against the backdrop of the Swadeshi movement, Mr. Mohanlal Dayal, a
member of the Chauhan family, established Parle Products. The initial endeavor
revolved around crafting orange candy, driven by a vision to contribute to India's self-
reliance and promote indigenous industries.

Revolutionizing the Biscuit Industry (1939):

Recognizing the exclusivity of biscuits primarily targeting the elite during British
rule, Mohanlal Dayal initiated the production of affordable biscuits in 1939. This
marked the introduction of the widely popular Parle Gluco, a biscuit that would
eventually become a household name across India. By making biscuits accessible to
the masses, Parle revolutionized the Indian biscuit industry, setting the stage for its
future success.

Sustained Growth and Nationalistic Spirit (1940s):

In the early 1940’s Parle came up with India’s first salted crackers, Monaco.
Throughout the 1940s, Parle Products experienced steady growth and recognition in
the Indian market. The production and distribution of Parle Gluco biscuits continued
to expand, establishing a loyal consumer base across different regions of India.

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G.S College of Commerce and Economics, Nagpur 2023-24

In 1946, as India's struggle for independence intensified, Parle Products played a


role in supporting the nationalistic fervor by providing affordable and locally
produced snacks and confectionery items. The popularity of Parle Gluco biscuits
soared during this period, reflecting the spirit of self-reliance and resilience among
Indian consumers.

Post-Independence Success (1947):

Following India's independence in 1947, Parle Gluco witnessed a surge in popularity,


aligning seamlessly with the sentiments of the Swadeshi movement. The brand's
success during this period solidified its position as a quintessential part of Indian
households, symbolizing self-sufficiency and national pride.

Legacy Through Segregation (1950s-1970s):

During the 1950s to the 1970s, the original Parle company underwent a graceful
transition into three distinct entities, each owned by different factions of the Chauhan
family. Despite the segregation, all three companies proudly retained the iconic
"Parle" trademark, showcasing a harmonious family legacy. Parle Products (1950s),
Parle Agro (1960s), and Parle Bisleri (1970s) continued to thrive independently, each
contributing to the diversified landscape of the Indian consumer goods industry.

Diversification into Beverages (1977):

In response to the government's expulsion of Coca-Cola from India in 1977, Parle


Products seized the opportunity to diversify its portfolio. The company ventured into
the beverage industry, introducing iconic brands such as Gold Spot, Thums Up, and
Frooti. These beverages quickly became household favorites, further cementing
Parle's presence in the Indian consumer market.

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G.S College of Commerce and Economics, Nagpur 2023-24

Consolidation and Expansion (1980s):

Throughout the 1980s, Parle Products consolidated its position in the Indian snack
and confectionery market. It introduced new products and flavors, further expanding
its product portfolio. The company focused on enhancing its distribution network,
reaching even remote areas of India, thereby increasing its market reach and
penetration.

Technological Advancements and Health Focus (1990s):

In the 1990s, Parle Products embraced technological advancements in manufacturing


and packaging, enhancing efficiency and product quality. The company continued to
innovate, introducing healthier snack options to cater to changing consumer
preferences towards wellness and nutrition.

International Expansion and Diversification (2000s):

During the early 2000s, Parle Products capitalized on the growing trend of
convenience foods, launching ready-to-eat snacks and convenience packs. The
company also ventured into international markets, exporting its products to various
countries and expanding its global footprint.

Sustainability and Digital Transformation (2010s):

In the 2010s, Parle Products intensified its focus on sustainability and corporate
social responsibility, implementing eco-friendly practices in manufacturing and
packaging. The company leveraged digital platforms for marketing and promotion,
engaging with a wider audience and strengthening its brand presence in the digital
space. Parle Products continued to innovate with new flavors and product variants,
staying relevant in the ever-evolving consumer landscape.

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G.S College of Commerce and Economics, Nagpur 2023-24

Resilience Amidst Challenges 2020s (up to 2023):

Amidst the challenges posed by the COVID-19 pandemic, Parle Products adapted
swiftly, ensuring the uninterrupted supply of essential food items while prioritizing
the safety of its workforce. The company embraced e-commerce platforms to meet the
surge in online shopping demand, providing consumers with convenient access to its
products. Parle Products remained committed to its core values of quality and
affordability, maintaining its position as a trusted brand in the Indian FMCG sector.
Throughout its journey post-split, Parle Products remained steadfast in its
commitment to delivering high-quality, affordable snacks and treats, earning the
continued loyalty of consumers across India and beyond.

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G.S College of Commerce and Economics, Nagpur 2023-24

PRODUCT CATEGORIES OF PARLE COMPANY

1. BISCUITS

Biscuits are baked snacks made from flour, sugar, and fat. They come in various
shapes, flavors, and textures, ranging from sweet to savory. They are often enjoyed as
a snack or accompaniment to tea or coffee.

 Parle-G (introduced in 1938 as Parle Gluco)


 Parle-G Gold

 20-20 Cookies
 KrackJack (1974)
 Parle Coconut Biscuits
 Monaco (1941-1945) [India's first salted cracker]
 Magix Creme

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G.S College of Commerce and Economics, Nagpur 2023-24

 Fab! Range
 Parle Marie
 Hide & Seek Milano
 Milk Shakti
 Nutricrunch
 Happy Happy
 Parle Top

2. CONFECTIONERY

Confectionery refers to sweet food items, typically made with sugar or other
sweeteners. This category includes chocolates, candies, gum, and other sweet treats.
Confectionery products are popular for their indulgent flavors and are often consumed
as snacks or desserts.
 2 in 1 Eclairs
 Kaccha Mango Bite
 Cafechino
 Londonderry
 Orange Bite (1929) [First Parle Product]
 Kapi Candy
 Kismi Toffee Bar (1963)

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G.S College of Commerce and Economics, Nagpur 2023-24

 Melody (1983)
 Mango Bite (1986)
 Poppins (1966)
 Rol-a-Cola
 Mazelo

3. SNACKS

Snacks are small portions of food eaten between meals. This category includes a
wide range of items such as chips, nuts, popcorn, and savory pastries. Snacks are
popular for their convenience and are often enjoyed on the go or during leisure time.
 Fulltoss
 Parle's Wafers
 Chatkeens

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G.S College of Commerce and Economics, Nagpur 2023-24

4. CAKES

Cakes are baked desserts made from flour, sugar, eggs, and butter or oil. They come
in various shapes, sizes, and flavors and are often decorated with frosting or icing.
Cakes are commonly served at celebrations such as birthdays, weddings, and holidays.
 Happy Happy Cakes

5. RUSK

Rusk, also known as biscotti in some regions, is a crunchy, twice-baked bread or


biscuit. It is often sweetened and flavored with ingredients such as sugar, spices, or
nuts. Rusk is typically enjoyed dipped in tea or coffee and is popular for its crispy
texture.
 Parle Rusk

6. PLATINA RANGE

The Platina Range likely refers to a specific line or series of products offered by a
brand. Without further context, it's difficult to provide specific information about this
range.
 Hide & Seek
 Hide & Seek Milano
 Nutricrunch
 Hide & Seek Fills

16 ALIZA ALI (BBA 3RD YEAR)


G.S College of Commerce and Economics, Nagpur 2023-24

7. ATTA

Atta is a type of whole wheat flour commonly used in Indian


cuisine to make chapatis, rotis, and other traditional bread. It is
made from finely ground whole wheat grains and is a staple
ingredient in many Indian households.

8. CEREALS

Cereals refer to grains used as food, including wheat, rice, oats,


barley, and corn. In the context of this list, cereals likely refer to
ready-to-eat breakfast cereals, which are often made from
processed grains and fortified with vitamins and minerals.

9. OTHER BRANDS

This category likely includes products from various other brands that may not fall
specifically into the aforementioned categories. It could encompass a wide range of
food items depending on the specific brands and products involved.

17 ALIZA ALI (BBA 3RD YEAR)


G.S College of Commerce and Economics, Nagpur 2023-24

INFRASTRUCTURE

Parle has production facilities at Neemrana (Rajasthan), Bengaluru (Karnataka),

Hyderabad (Telangana), Kutch (Gujarat), Khopoli (Maharashtra), Pantnagar

(Uttarakhand), Sitarganj (Uttarakhand), and Bahadurgarh (Haryana) in addition to its

original facility in Mumbai. The Parle manufacturing plants located in Bahadurgarh

(Haryana), Muzaffarpur (Bihar), and Pantnagar (Uttarakhand) are among the biggest

in India. It uses extensive automation to produce high-quality biscuits. It also

contracts with multiple production facilities.

ACHIEVEMENTS

Parle Products, with its consistent recognition as a "Superbrand" and numerous


export awards, exemplifies a robust brand presence both domestically and globally.
The company's emphasis on innovation in product development, packaging, and
marketing has been pivotal in maintaining its market leadership position.

Having captured a significant 40% share of the total


biscuit market and a commendable 15% share of the
confectionery market in India, Parle has emerged as a
major player in the FMCG sector, transforming into a
multi-million dollar enterprise. Its products have not
only gained prominence domestically but have also
garnered acclaim internationally, evidenced by their
success at events like the Monde Selection since 1971.

Parle's success can be attributed to its ability to adapt to evolving consumer


preferences and market dynamics, as well as its relentless pursuit of excellence in
quality and innovation. As a result, the company continues to shine with numerous
gold and silver accolades, underscoring its commitment to delivering top-notch
products to its consumers.

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G.S College of Commerce and Economics, Nagpur 2023-24

COMPETITORS OF PARLE

Top 8 competitors of Parle -

1. HUL (Hindustan Unilever):

Hindustan Unilever, the largest fast-moving consumer products


company in India, is a subsidiary of the Dutch company
Unilever. The HUL company is based in Mumbai, Maharashtra.
With more than 6 million stores across the nation, HUL has the
largest consumer base.

2. ITC :

ITC or Imperial Tobacco Company of India limited was established in


1910. In 1970 and 1974, it underwent two name changes before settling on
I.T.C Limited. ITC, one of India's most valued conglomerates, has its
headquarters in Kolkata, West Bengal, and operates in all three economic
sectors.

3. Coca Cola:

.The Coca-Cola Company manufactures Coca-Cola, a carbonated


soft drink. In the beverage sector, it offers a wide range of
products. Coca Cola was founded in May,1886.

4. Nestle:

Nestle is headquartered in Vaud, Switzerland, and is the largest food


corporation in terms of revenue. Its product line includes a wide range
of items, including dairy products, coffee, tea, baby meals and many
more. It operates in over 450 plants across 194 countries, employing
339,000 people.

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G.S College of Commerce and Economics, Nagpur 2023-24

5. Pepsi:

Being a large corporation, Pepsi Co. is home to


numerous brands. Pepsi Co. produces a wide range of
goods, including Mountain Dew, Lays, Tropicana
drinks, 7Ups, Cheetos, Lipton Tea, and Aquafina. Pepsi
is primarily aiming for the food and beverage industry.

6. Amul:

One of the very oldest Indian firms, Amul has been in


business since 1946. Currently, GCMMF is the world's
biggest exporter of dairy products. Amul was founded in
1950 by a group of dairy farmers who were motivated by
India's freedom.

7. Britannia:

Britannia Industries Limited is an Indian food


manufacturing firm with its main office located in Kolkata.
It was introduced in 1892, mainly to supply the British Raj
officers with high-quality teatime biscuits. Britannia has
been owned by several groups over the years.

8. Marico:

.Marico uses one in ten coconuts that are farmed in India; this
fact alone demonstrates the power of Marico Limited. Indian
fast-moving consumer goods company Marico was founded in
Mumbai in 1991 by Harsh Mariwala. Marico produces oils,
male grooming products, and personal care items.

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G.S College of Commerce and Economics, Nagpur 2023-24

Social Media Adeptness: Parle's Digital Edge in a

Competitive Landscape

In today's digital age, Parle has effectively embraced online platforms to connect
with customers. The brand is well-known on social media, where it interacts with
followers by holding contests and interactive campaigns. Parle employs digital
marketing platforms to specifically target demographics and interests, guaranteeing
that its message is received by the right audience.

Previously, Parle company used only televisions and newspapers as a means to


promote. However, recognizing the need to adapt to changing consumer behavior, the
company increased its investment in digital promotion to 15-20%. This strategic shift
allowed Parle to engage with younger clients effectively.
To maintain a strong online presence, Parle maintains Parle-G-specific pages on
several social networking sites. These platforms serve as channels for connecting with
consumers, sharing product updates, and fostering brand loyalty.

Here are some of Parle’s social media handles:

Social Media Overview


Facebook Instagram Youtube X

By leveraging social media, Parle continues to strengthen its industry position and
gain a competitive advantage in the market.

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G.S College of Commerce and Economics, Nagpur 2023-24

INDUSTY ANALYSIS

PORTER’S MODEL :

1. THREAT OF NEW ENTRANTS:

Threat of new entrants reflects how new market players impose threats to the existing
market players. If the industry will be profitable and barriers to enter the industry will
be low, it will attract more players and hence, the threat of new entrants will be high.

Threat of New Entrants is between low to moderate.

Barriers to Entry -

 Core brands of Parle Products, such as Parle-G biscuits, enjoy strong brand
loyalty, making it difficult for new competitors to form a presence in those
categories.
 New entrants find it challenging to establish a strong distribution network
throughout India.
 High advertising and marketing expenses are required to compete with
established brands.
 There may be obstacles in obtaining licenses and following food safety
regulations.
 The dominance of established players like Parle in terms of shelf space in
retail outlets can also create a significant barrier to entry for new competitors.

However, the biscuit industry is attractive due to its large size and potential for
growth. Additionally, relaxed regulations and the emergence of private labels could
pose a future threat.

Threats for new entrants -

 New product differentiation is very tough.


 Access to distribution channels is tough.
 Capital requirements is very high.
 High taxes.

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G.S College of Commerce and Economics, Nagpur 2023-24

2. THREAT OF SUBSTITUTE PRODUCTS :

The availability of substitute products makes the competitive environment


challenging for Parle Products., and other existing players. High substitute threat
shows that customers can use alternative products/ services from other industries to
meet their need. Various factors determining the intensity of this threat for Parle
Products.

Threat of Substitute goods or services is between low to moderate.

 Parle Products offers essential and affordable products like biscuits,


confectionery, and bakery items.
 Consumers might switch to private label brands or regional players, but
overall threat remains low due to brand loyalty and price competitiveness in
core categories.
 Changing preferences towards health-conscious alternatives can be a moderate
threat in the long run. Parle may need to consider introducing more healthy
snack options to cater to this growing segment.

However, Parle offers a variety of biscuits catering to different tastes and needs, and
its established brand image helps it compete with substitutes.

Threat of substitute Products or services:

 Wide range of choices


 Plenty of substitute goods available
 Low switching cost
 Sufficient room for new product development
 Eg. Traditional Indian home made snacks, bakery products, etc
 Multiple brands with low differentiation
 New company's compete at prices

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G.S College of Commerce and Economics, Nagpur 2023-24

3. RIVALRY AMONG EXISTING FIRMS:

The rivalry among existing firms shows the member of competitors that give tough
competition to the Parle Products. High rivalry shows Parle Products., India can face
strong pressure from the rival firms, which can limit each other's growth potential.
The rivalry factors which are a major strategic concern for Parle Products:

The rivalry factors which are a major strategic concern for Parle Products:

 The Indian FMCG market is crowded with competitors like ITC, Britannia,
Hindustan Unilever, and Nestle.
 Intense competition exists in product categories like biscuits, snacks, and
confectionery.
 Price wars, promotional offers, and new product launches are common,
impacting profitability.
 Constant need to innovate and introduce new products to stay ahead.

Parle's brand strength, extensive distribution network, and cost-effective products help
it maintain its position in this highly competitive market.

The rivalry factor will be low if :

 There are only a limited number of players in the market.


 The industry is growing at a fast rate.
 There is a clear market leader.
 The products are highly differentiated and each market player targets different
sub segments.
 The economic/psychological switching costs for consumers are high.
 The exit barriers are low, which means firms can easily leave the industry
without incurring huge losses.

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G.S College of Commerce and Economics, Nagpur 2023-24

4. BARGAINING POWER OF SUPPLIERS:

Bargaining Power of Suppliers is between low to moderate.

Low Bargaining Power:

 Key raw materials like flour, sugar, and vegetable oils are readily available
from multiple suppliers.
 Parle Products' large production volumes give them leverage in negotiating
prices with suppliers.
 Parle can easily switch suppliers if necessary.

Moderate Bargaining Power :

 For some specialized ingredients or packaging materials, suppliers might have


more bargaining power due to limited options.
 The biscuit industry is price-sensitive, limiting suppliers' ability to dictate
prices.
 Parle's dependence on specific suppliers during peak seasons or for specialized
ingredients can give them some bargaining power, but the overall impact is
moderate.

However, fluctuations in commodity prices and dependence on specific ingredients


during peak seasons can give suppliers some leverage.

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G.S College of Commerce and Economics, Nagpur 2023-24

5. BARGAINING POWER OF BUYERS:

Bargaining Power of Buyers is between moderate to high .

 Parle caters to a vast customer base, with no single buyer having significant
power.
 Parle Products caters to a mass market with price-sensitive consumers.
 Due to brand loyalty and affordability, customers have limited leverage in
price negotiations, especially for core products.
 Large retailers and distributors might have some bargaining power due to bulk
purchases.

Parle's strong brand presence and product diversification help mitigate buyer
power to some extent.

PORTER'S 5 FORCE MODEL IMPLICATIONS:

The application of Porter five forces model in real world content allows
organizations to make wise strategic decisions. Impact and importance of each of
the five forces is context dependent. By using Five force analysis Parle Products.,
can determine the industry attractiveness, make effective entry/exist decisions and
assess the influence of these forces on their own business and competitors. Mostly,
this model is considered as a starting point and other frameworks are used in
conjunction for a better understanding of the external environment.

CONCLUSION ANALYSIS :

 Threat of new entrants - LOW


 Threat of Substitute products - LOW TO MODERATE
 Rivalry among competitors - HIGH
 Bargaining power of suppliers - LOW TO MODERATE
 Bargaining power of buyers - MODERATE TO HIGH

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G.S College of Commerce and Economics, Nagpur 2023-24

PESTLE ANALYSIS: Parle Products

1. POLITICAL FACTORS :

 Government Regulations: Parle Industries Ltd must comply with food safety
regulations set by FSSAI (Food Safety and Standards Authority of India) to
ensure product quality and consumer safety. Changes in these regulations can
impact production processes and labeling requirements.

 Taxation: The GST reform in India may affect the pricing of Parle's products.
Understanding tax structures and potential changes is crucial. The company's
historical background and its adaptation to political changes like
demonetization and GST reflect its adaptability in navigating political shifts.

 Opportunities: Government initiatives promoting healthy eating or local


sourcing of ingredients can present opportunities for Parle to develop new
product lines or strengthen its supply chain.

2. ECONOMIC FACTORS:

 Economic Growth: Rising disposable income in India can increase demand


for Parle's products, particularly in the discretionary spending category.
Economic downturns can lead to cost-cutting measures and a shift towards
budget-friendly staples.

 Inflation: Inflation can affect the cost of raw materials, impacting Parle's
margins and potentially requiring price adjustments.

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G.S College of Commerce and Economics, Nagpur 2023-24

 Rural Development: Government programs focusing on rural development


can boost purchasing power in rural areas, creating new markets for Parle's
products.

3. SOCIAL FACTORS:

 Consumer Trends: Parle needs to stay updated on evolving consumer


preferences for healthier, more convenient, or ethically sourced food products.

 Health and Wellness: The growing focus on health and wellness can
influence consumer choices. Parle can address this by introducing healthier
product options or highlighting the nutritional benefits of existing products.

 Urbanization: As urbanization increases, demand for packaged and


convenient food options might rise, benefiting Parle.

 CSR Activities: Parle launched the "Parle My Green Planet" campaign, one of
India's largest CSR initiatives. It involved educating and engaging people in
5000 schools about environmental preservation through activities such as tree
planting, water and power conservation, and waste recycling.

4. TECHNOLOGICAL FACTORS:

 Food Processing Technologies: Adopting advanced food processing


technologies can improve efficiency, minimize waste, and enhance product
quality.

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G.S College of Commerce and Economics, Nagpur 2023-24

 E-commerce: The growing e-commerce market presents an opportunity for


Parle to expand its reach and distribution network.
 Digital Marketing: Utilizing digital marketing platforms can help Parle
connect with consumers more effectively and promote its products.

5. LEGAL FACTORS:

 Food Safety Regulations: Strict adherence to food safety regulations is


essential to avoid legal issues and maintain consumer trust. Incidents of
product contamination can have severe consequences.

 Food Labeling Laws: Parle must comply with labeling laws regarding
ingredients, nutritional information, and allergen warnings.

 Intellectual Property Rights: Protecting trademarks for Parle's iconic brands


is crucial to prevent counterfeiting and maintain brand reputation.

6. ENVIRONMENTAL FACTORS:

 Sustainable Packaging: Parle can adopt sustainable packaging practices (e.g.,


recycled materials, biodegradable packaging) to reduce its environmental
footprint and appeal to environmentally conscious consumers.

 Responsible Sourcing: Sustainable sourcing of raw materials can enhance


Parle's brand image and contribute to environmental conservation.

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G.S College of Commerce and Economics, Nagpur 2023-24

 Waste Management: Implementing effective waste management strategies


can minimize environmental impact from manufacturing processes.

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G.S College of Commerce and Economics, Nagpur 2023-24

SWOT ANALYSIS

STRENGTHS :

 One of India’s most popular brand


 High brand recall
 Price advantage – products at affordable price
 Strong supply chain network
 Popular subsidiary brands like Parle G, Monaco, Hide & Seek, KrackJack,
Melody, Fulltoss, Poppins, etc.
 Diverse product portfolio including biscuits, sweets and snacks
 Parle G is amongst the most sold biscuit brands in the world
 Variety of CSR activities like ‘My Green Planet’, ‘GoluGalata’, etc.
 Largest distribution system.
 An experienced team of sales and marketing executives.

 Strong Presence in Rural Markets – In 2014, Parle was ranked 48th in all
Indian Brands.
 It is the most trustable brand in the eyes of people.

 Parle's cost effective Production manufacturing keeps product prices low and
profits high.
 Parle consistently innovates to cater to evolving consumer needs, introducing
new flavors, variants, and packaging formats.

WEAKNESSES:

 Similar products produced by many companies like marie, glucose biscuit,


bourbon, sweet and salty crackers, cream biscuits, etc.
 Dependence on Parle G brand for most of its revenue.

 Parle's classic products (Glucose Biscuits,Mango Bite, etc.)lack innovation


and may be losing favor due to unchanging taste.

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G.S College of Commerce and Economics, Nagpur 2023-24

 Parle dominates the value segment but lacks a strong presence in the premium
biscuit category compared to competitors like Britannia and ITC.

 Maintaining low prices on core products like Parle-G can strain profit margins
due to fluctuating raw material costs.
 Parle's packaging lacks the innovation seen in some competitors, possibly
reducing its appeal to younger consumers.
 Parle’s strong presence in the Indian market could make it vulnerable to
changes in the Indian economy and consumer spending habits.
 Parle’s limited global presence and reliance on the domestic market exposes it
to risks associated with dependency on a single market.
 Parle is in a tough fight for market share and profit against both Indian and
foreign companies in the FMCG market.
 Parle's strong brand image might be challenged by health concerns as
consumers become more health conscious.

OPPORTUNITIES:

 Innovate by introducing products for health conscious people


 Growth of the foods industry in India
 Aggressive marketing and advertising
 Rise in purchasing power of consumers
 Product line extension
 Parle can leverage the health trend by making healthy biscuits that are still
affordable.
 Parle can increase exports to new markets using its brand recognition.
 Parle can expand internationally into emerging markets to diversify revenue
sources.
 E-commerce is growing and Parle can use this to improve its distribution and
directly reach consumers online.
 Parle is entering the health food sector with new product launches.
 Parle G has a strong export presence, shipping to SAARC countries, the US,
UK, Europe, and parts of Africa.

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G.S College of Commerce and Economics, Nagpur 2023-24

 The increase in consumers’ purchasing power results in a higher supply of


products.

THREATS:

 The Indian biscuit market faces intense competition from established brands
like Britannia and ITC, as well as regional and private labels.
 Parle faces profitability challenges due to fluctuating raw material prices
(wheat, sugar, etc.) and rising energy costs, impacting its competitiveness.
 Imitation Products – Counterfeit products, particularly in rural areas, can erode
Parle's brand image and sales.
 Changing Consumer Preferences.
 New food safety, labeling or advertising regulations by the government could
cost Parle more to comply with.
 The FMCG sector’s high competition, with both established and new players
competing for market share, could pressure Parle’s margins and market
position.
 Bakery goods are becoming a common household staple due to their
affordability and widespread availability.
 Parle-G faces competition from new snack options like toast, sandwiches, and
rusk, leading to a potential decline in demand for their biscuits.

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G.S College of Commerce and Economics, Nagpur 2023-24

COMPETITIVE ADVANTAGES

Based on the provided analysis using Porter's Five Forces, PESTLE, and SWOT
frameworks, we can formulate Parle Company's competitive advantage:

Competitive Advantage of Parle Company :

Type of Advantage :-

COMPARATIVE ADVANTAGE

 Brand Loyalty and Recognition – Parle enjoys strong brand loyalty and
recognition in India, particularly for its flagship product, Parle-G biscuits. This
brand loyalty makes it difficult for new entrants to compete in the same categories,
thereby acting as a barrier to entry. Competitors such as Britannia, ITC, and
Nestle face challenges in establishing similar brand loyalty and recognition.

 Extensive Distribution Network – Parle has one of the most extensive


distribution networks in India, reaching remote rural areas. This widespread
presence ensures easy availability of their products throughout the country, giving
them a competitive edge over new entrants who may struggle to establish such
networks. Competitors like Britannia and ITC may face difficulties in matching
Parle's reach and accessibility.

 Cost-effective Production and Pricing – Parle has efficient manufacturing


processes that allow it to produce products at competitive prices. Its affordable
pricing strategy, including smaller packaging options, makes its products
accessible to a wide range of consumers, including those with lower purchasing
power. Competitors such as Britannia and ITC may find it challenging to match
Parle's cost-effective production and pricing strategies.

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G.S College of Commerce and Economics, Nagpur 2023-24

 Diversified Product Portfolio – Parle has a diversified product portfolio beyond


biscuits, including candies, snacks, and chocolates. This diversification reduces
dependence on any single category and enables Parle to cater to a broader
consumer base, enhancing its competitive position. Competitors like Britannia
and ITC may lack the same level of diversification in their product offerings.

 Continuous Innovation – Parle continuously innovates its product offerings to


meet changing consumer demands and preferences. Introducing new flavors,
variants, and packaging formats helps Parle stay ahead of competitors and
maintain its market share. Competitors such as Britannia and ITC may struggle to
match Parle's pace of innovation and product development.

These factors collectively make it difficult for competitors to replicate Parle's success
and compete effectively in the market.

DIFFERENTIAL ADVANTAGE

Parle's differential advantage can be seen in its strong brand loyalty, which sets it
apart from competitors. Consumers' trust in Parle's products and their preference for
the brand over substitutes or new entrants contribute to its sustained market
dominance.

 Generational Connection: Parle-G biscuits, for instance, have been a staple in


Indian households for decades. Many consumers grew up having them with their
morning tea, creating a powerful emotional connection that transcends just taste.
This loyalty is passed down through generations, making Parle-G the go-to biscuit
brand for many families.

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G.S College of Commerce and Economics, Nagpur 2023-24

 Price Advantage with Perceived Value: Parle's products are known for being
affordable without compromising on taste or quality. This is particularly
important in a price-sensitive market like India. Consumers perceive Parle
products as offering good value for their money, further solidifying brand loyalty.

In conclusion, Parle Company possesses a comparative advantage based on its


distinctive strengths and capabilities, making it a formidable player in the FMCG
industry, particularly in the biscuits and confectionery segments in India.

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G.S College of Commerce and Economics, Nagpur 2023-24

CHAPTER 3
LITERATURE REVIEW

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G.S College of Commerce and Economics, Nagpur 2023-24

LITERATURE REVIEW

1. Aditya Shastri's 2023 case study "A Sneak-Peek Into the Marketing
Strategy of Parle" discusses the success of the Parle brand. Consumers place
significant value on the brand, making it one of India's leading brands. Rather
than selling the same old stuff, the brand should introduce new products and
varieties to the marketplace. The company's primary source of goodwill
revenue is the Parle-G biscuit. Parle items' popularity has been stable for many
years.

2. A research paper titled "From Biscuits to Hand Sanitizers: India's Largest


Biscuit and Confectionery Brand - Parle's Diversification," published by
Supriya Lakhangaonkar, Shweta Kishore, & Kavita Kamath in 2022,
explores Parle's leveraging of its biscuit brand value to launch hand sanitizers
during the COVID-19 pandemic. It delves into Parle's history, its exceptional
sales performance during the pandemic, and the reasons behind its success.
Furthermore, it analyzes Parle's strategic expansion into the hand sanitizer
market amidst the crisis.

3. In the 2021 research paper titled “Parle Products: The Journey of Budget
Brand Toward Premiumization”, published in Business Perspectives and
Research by A. Shivakanth Shetty, Kerena Anand, and Raghavendra A. N.
discusses Parle’s transformation from a budget brand to a premium brand.
Despite the success of Parle-G, Parle is still seen as a budget brand in India. In
2017, Parle introduced Parle Platina to cater to the demand for premium
biscuits. However, transitioning from a value brand to a luxury brand is
challenging due to the legacy of the value brand and the competitive Indian
market.

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G.S College of Commerce and Economics, Nagpur 2023-24

4. In a study titled "A Comparative Study on Consumer Buying Behaviour


between Parle and Britannia" published in the year 2018 by Nilanjan Ray,
Sayan Mukherjee & Sourav Chatterjee found that price and taste are the
biggest factors influencing consumer choice. Parle was preferred for value for
money, while Britannia was favored for taste and variety.

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G.S College of Commerce and Economics, Nagpur 2023-24

CHAPTER 4
RESEARCH METHODOLOGY

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G.S College of Commerce and Economics, Nagpur 2023-24

RESEARCH METHODOLOGY

RESEARCH DESIGN :

Here, we are using a descriptive form of research design, where we are primarily
interested in describing the topic that is the subject of the research.

This method includes data collection, analysis and presentation. It helps us clearly
present the marketing statement in order to allow others to better understand the need
for this kind of research.

TECHNIQUES AND DATA COLLECTION :

Primary data:

It comprises of the data which is collected through questionnaires filled by the


respondent. Therefore sample size of 90 has been collected.

Secondary data:

The secondary data for research have been collected from various sources which
include websites, journals, books, articles, and also from the usage of internet facility.

SOURCE OF DATA

This project will be based on primary as well as secondary data which will be
collecting through websites, books, journals, articles and questionnaires.

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G.S College of Commerce and Economics, Nagpur 2023-24

PROBLEM DEFINATION

A problem of Parle in the industry analysis is that Parle has not been able to
diversify its product portfolio and create a strong brand identity. Parle is mainly
dependent on its Parle-G biscuits, which are low-margin and face stiff competition
from other players.

NEED OF STUDY

1. To Identify and analyze the key success factors that have contributed to Parle's
sustained success in the FMCG industry.
2. To Analyze how Parle's strategies, including product offerings and pricing,
contribute to its standing in the industry.
3. To Evaluate how these factors differentiate Parle from its competitors.

OBJECTIVES OF STUDY

1. To study the legacy of PARLE in FMCG industry.


2. To do Industry Analysis of PARLE to understand how industry structure derives
competition, which determines the level of industry profitability.
3. To evaluate how PARLE’s strategy affects its market position.
4. To identify key success factors.

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G.S College of Commerce and Economics, Nagpur 2023-24

LIMITATION OF STUDY

1. Data Availability: Limited access to current and comprehensive data on PARLE


Products and the industry may hinder thorough analysis.

2. Focus on Indian market: The study will primarily focus on the Indian biscuit
and snack industry, limiting applicability to other regions.

3. Focus on Indian Market: The study might primarily focus on the Indian market,
neglecting Parle's presence in other countries.

4. Time Constraints: Depending on the research timeframe, an in-depth analysis of


all competitive advantages might be restricted.

5. Quality of Secondary Data: Reliance on secondary sources may introduce


biases or inaccuracies, impacting the study's credibility.

6. External Factors: Influence of economic, regulatory, and technological factors


may affect industry dynamics, challenging prediction accuracy.

7. Application: The findings may not be applicable outside PARLE Products and
the Indian food business.

8. Subjectivity: Interpretations and conclusions may vary among researchers,


potentially introducing subjective bias into the analysis.

HYPOTHESIS OF THE STUDY

Hypothesis 1: There is no significant difference in comparison with other competitors.


Hypothesis 2: Although there are several competitors for Parle Products, most people
in India prefer Parle products as their preferred household brand.
Hypothesis 3: Since Parle has not changed its services or taste over time, it is evident
that people have consistently preferred Parle products for a long
duration.

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G.S College of Commerce and Economics, Nagpur 2023-24

CHAPTER 5
DATA ANALYSIS AND
INTERPRETAION

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G.S College of Commerce and Economics, Nagpur 2023-24

DATA ANALYSIS AND INTERPRETATION

INTRODUCTION : Above data has been collected from 90


respondents. The questions are asked to mixed group of people are:

1. AGE OF RESPONDENCE

Sr. No Particulars Responses Percentage (%)

1. Under 18 3 3.3%
2. 18-24 78 86.7%

3. 25-44 3 3.3%
4. 45 or above 6 6.7%

Total 90 100%

INTERPRETATION:

 The data reveals that the largest segment of respondents falls within the
age range of 18 to 24, suggesting that Parle products might be more
popular or relevant among young adults. This could indicate potential
market trends or consumer preferences within this age group.
 However, it's also essential to note that there is some representation
from other age groups as well, albeit smaller in comparison. This
diversity in age groups might provide insights into Parle's market
penetration across different demographics.

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G.S College of Commerce and Economics, Nagpur 2023-24

2. GENDER OF RESPONDENCE

Sr. No Particulars Responses Percentage (%)

1. 41 45.6%
Male
2. 49 54.4%
Female
Total 90 100%

INTERPRETATION:

 The survey had a relatively balanced gender distribution with 45.6%


male and 54.4% female respondents.

 This suggests that the data is not likely to be biased towards one
gender or the other. Overall, it appears that a good mix of genders
were included in the survey.

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G.S College of Commerce and Economics, Nagpur 2023-24

3. How familiar are you with Parle Products?

Sr. No Particulars Responses Percentage (%)

1. Very familiar 75 83.3%

2. Somewhat 14 15.6%
familiar

3. Not familiar 1 1.16%

Total 90 100%

INTERPRETATION:

 Out of 90 respondents, a very high percentage (83.3%) indicated


being very familiar with Parle Products. The remaining respondents
were either somewhat familiar (15.6%) or not familiar (1.2%) with
the brand.

 The following data indicates a high level of brand awareness for


Parle Products among the respondents. This suggests that Parle has a
strong brand presence in the market.

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G.S College of Commerce and Economics, Nagpur 2023-24

4. If yes, which of the following Parle products have you tried?

Sr. No Particulars Responses Percentage (%)


1. Biscuits 88 97.8%

2. Confectionery 64 71.1%

3. Snacks 42 46.7%

4. Rusk 47 52.2%

5. Other 6 6.7%

6. All of the above 1 1.1%

Total 90 100%

INTERPRETATION:

 Biscuits are the most popular Parle product category, with nearly all
respondents (97.8%) having tried them.Confectionery and Rusk are
also quite popular, with over 70% and 50% of respondents having
tried them respectively.

 Snacks are less popular than the above categories, but still a
significant portion (46.7%) of respondents have tried them."Other"
represent a small minority of respondents they have also tried other
category products and "All of the above" survey comment represent
they have tried all the mentioned products.

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G.S College of Commerce and Economics, Nagpur 2023-24

5. How long have you been consuming Parle Products?

Sr. No Particulars Responses Percentage (%)

1. Less than a year 4 4.4%


2. 1-5 years 2 2.2%
3. More than 5 years 84 93.3%
Total 90 100%

INTERPRETATION:

 The majority of respondents, 93.3%, have been consuming Parle


Products for more than 5 years, indicating a strong brand loyalty and
long-term satisfaction with the products.

 Only a small percentage, 4.4%, have been consuming Parle Products


for less than a year, suggesting that relatively fewer respondents are
new consumers of Parle Products.

 An even smaller percentage, 2.2%, have been consuming Parle


Products for 1-5 years, indicating a relatively low turnover of
consumers within this time frame.

 Overall, the data suggests a strong presence of long-term consumers


in the market, which reflects positively on the brand's reputation and
customer satisfaction over time.

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G.S College of Commerce and Economics, Nagpur 2023-24

6. In your opinion, what are the key strengths of Parle Products in the
market?

Sr. No Particulars Responses Percentage (%)

1. Quality 65 72.2%

2. Brand recognition 54 60%

3. Distribution 36 40%
network
4. Price 37 41.1%
competitiveness
5. Product variety 35 38.9%
6. Other 3 3.3%

Total 90 100

INTERPRETATION:

 According to survey data, Quality is the most dominant strength,


highlighted by 72.2% of respondents, indicating Parle's reputation
for high-quality products. Brand recognition, mentioned by 60% of
respondents, signifies Parle's strong presence in the market.
Additionally, 41.1% of respondents acknowledged price
competitiveness, suggesting Parle's products are competitively
priced.

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G.S College of Commerce and Economics, Nagpur 2023-24

7. Which brands do you consider to be Parle's main competitors?

Sr. No Particulars Responses Percentage (%)

1. Britannia 73 81.1%

2. ITC 33 36.7%

3. Nestle India 39 43.3%

4. Mondelez 24 26.7%
International
6. Other 1 1.1%

Total 90 100%

INTERPRETATION:

 Parle's main competitors are Britannia, Nestle India and ITC


according to the survey.

 Britannia is the strongest competitor with 81.1% of respondents


mentioning them

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G.S College of Commerce and Economics, Nagpur 2023-24

8. How would you rate the competitiveness of Parle Products compared


to other brands in the FMCG industry?

Sr. No Particulars Responses Percentage (%)

1. Highly competitive 52 57.8%

2. Moderately 38 42.2%
competitive
3. Not competitive 0 0%

Total 90 100%

INTERPRETATION:

 Based on the survey data, Parle Products are perceived as highly


competitive by a significant majority (57.8%) of the respondents.

 Only 42.2% consider them moderately competitive, and none


consider them not competitive. In conclusion, the survey suggests
that Parle Products are viewed as a strong competitor in the FMCG
industry.

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G.S College of Commerce and Economics, Nagpur 2023-24

9. How do you perceive Parle Product's pricing strategy compared to its


competitors?

Sr. No Particulars Responses Percentage (%)

1. More affordable 42 46.7%

2. Comparable 47 52.2%

3. More expensive 1 1.1%

Total 90 100%

INTERPRETATION:

 Based on the survey data, a majority (52.2%) of the respondents


perceived Parle's products to have comparable pricing compared to
its competitors. Only 46.7% of the respondents said that Parle's
products were more affordable, while a very small percentage (1.1%)
considered them to be more expensive.

 This suggests that Parle's pricing strategy is successful in keeping its


products competitive in the market.

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G.S College of Commerce and Economics, Nagpur 2023-24

10. What are your expectations for Parle products in the future?

Sr. No Particulars Responses Percentage (%)

1. I expect them to
maintain their current 40 44.4%
position in the market.

2. I expect them to
expand their product 36 40%
range and market
share.
3. I expect them to face
increasing competition 7 7.8%
and possibly lose
market share.

4. I am unsure about their 7 7.8%


future.
Total 90 100%

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G.S College of Commerce and Economics, Nagpur 2023-24

INTERPRETATION:

 The survey data reveals a predominantly positive sentiment towards


Parle products. A notable 44.4% of respondents foresee the brand
maintaining its current market position, while 40% anticipate
expansion, indicating confidence in Parle's stability and growth
potential.

 Only a minority (7.8%) foresee increased competition and potential


market share loss, with a similar percentage expressing uncertainty
about Parle's future. Overall, the majority of respondents express
optimism regarding Parle's market prospects, with some
acknowledging potential challenges or uncertainties ahead.

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G.S College of Commerce and Economics, Nagpur 2023-24

HYPOTHESIS TESTING

HYPOTHESIS
Hypothesis 1: There is no significant difference in comparison with other competitors.
Hypothesis 2: Although there are several competitors for Parle Products, most people
in India prefer Parle products as their preferred household brand.
Hypothesis 3: Since Parle has not changed its services or taste over time, it is evident
that people have consistently preferred Parle products for a long
duration.

From the above research study conducted during my research work it is found
that among the above mentioned hypothesis, Hypothesis H1 i.e. “There is no
significant difference in comparison with other competitors” is found to be true as
well as false hence nor accepted & nor rejected. Because, each brand has its unique
offerings, but Parle holds its ground in terms of quality and taste.

Hypothesis H2 i.e. “Although there are several competitors for Parle Products,
most people in India prefer Parle products as their preferred household brand”, is
accepted and Hypothesis H3 i.e. “Since Parle has not changed its services or taste
over time, it is evident that people have consistently preferred Parle products for a
long duration” is also accepted as Parle has high brand awareness, loyalty, and
positive future expectations, supporting the idea that it is a popular household
brand among many people.

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G.S College of Commerce and Economics, Nagpur 2023-24

CHAPTER 6
FINDINGS

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G.S College of Commerce and Economics, Nagpur 2023-24

FINDINGS

1. The largest segment of respondents falls within the age range of 18 to

24, suggesting a significant presence of young adult consumers for

Parle products

2. Gender distribution of respondents is balanced.

3. Parle enjoys high brand awareness (83.3% familiarity).

4. Biscuits emerged as the most popular Parle product category, with

nearly all respondents (97.8%) having tried them..

5. The majority of respondents (93.3%) have been consuming Parle

Products for more than 5 years, indicating strong brand loyalty and

long-term satisfaction.

6. Quality was identified as the most dominant strength of Parle Products,

followed by brand recognition and price competitiveness.

7. Britannia is Parle's strongest competitor

8. Quality was identified as the most dominant strength of Parle Products,

followed by brand recognition and price competitiveness.

9. Most respondents (52.2%) perceive Parle's pricing strategy to be

comparable to competitors, with nearly half (46.7%) finding them more

affordable.

10. Optimism regarding Parle's future was predominant, with a significant

portion expecting the brand to maintain its current position or expand

its product range and market share.

58 ALIZA ALI (BBA 3RD YEAR)


G.S College of Commerce and Economics, Nagpur 2023-24

CHAPTER 7
CONCLUSION

59 ALIZA ALI (BBA 3RD YEAR)


G.S College of Commerce and Economics, Nagpur 2023-24

CONCLUSION

In conclusion, the comprehensive analysis of Parle Products reveals a strong market


presence and competitive advantages, particularly in brand loyalty, affordability, and
innovation. The findings highlight the company’s long-standing appeal among
consumers particularly in the biscuit and candy areas. However, despite
these strength, Parle faces significant challenges, notably its heavy reliance on a
limited product range, primarily Parle-G biscuits.

The recognized issue of Parle's lack of product diversification and the development
of a stronger brand identity raises serious strategic concerns. While Parle has
managed to preserve its market position and consumer devotion, its concentration on
a concentration on a single product category exposes it to the risks of market
saturation and shifting consumer taste. The need for diversification and brand
strengthening is essential to sustain growth and competitiveness in the dynamic
FMCG landscape.

To address this challenge, Parle should prioritize initiatives aimed at product


diversification, innovation, and strategic brand-building efforts. By expanding its
portfolio to cater to emerging consumer trends and preferences, Parle can mitigate the
risks associated with over- reliance on a single product.

Furthermore, investing in strategies to improve visibility and differentiation can help


Parle upgrade its market position and attract new customer segments. In summary,
while Parle Products enjoys significant strengths and competitive advantages,
strategic efforts towards product diversification and brand enhancement are
necessary to navigate the evolving FMCG landscape successfully. By solving these
challenges proactively, Parle can not only sustain its current market position but also
unlock new avenues for growth and profitability in the future.

60 ALIZA ALI (BBA 3RD YEAR)


G.S College of Commerce and Economics, Nagpur 2023-24

CHAPTER 8
SUGGESTIONS

61 ALIZA ALI (BBA 3RD YEAR)


G.S College of Commerce and Economics, Nagpur 2023-24

Suggestions

1. The data gathered suggests a strong young connection for Parle.


Develop targeted campaigns to engage this demographic. To reach out
to younger consumers, consider using social media channels and
influencer marketing.

2. With a high level of brand awareness among respondents, it's crucial for
Parle to sustain this by consistently engaging with consumers through
advertising, social media, and other promotional activities.

3. While biscuits have emerged as the most popular product category,


there is still considerable demand in other product categories such as
confectionery and snacks. Parle might consider expanding its product
range within these categories or developing new inventive products to
cater to a wide range of customer preferences

4. Quality emerged as Parle Products' dominating strength. It is critical


for the organisation to preserve this aspects because it immediately
affects brand reputation and customer trust. Continuous investment in
quality control measures is critical for ensuring consistency across all
goods.

5. While most respondents believe Parle's pricing strategy is comparable


or more affordable than its competitors, it is critical to remain alert in
monitoring market changes and adjusting price strategies accordingly.
This may include periodic pricing reviews to ensure competitiveness
without sacrificing profitability.

6. Parle must consistently differentiate itself from competitors in order to


maintain its market position, emphasizing unique selling qualities such
as heritage, sustainability initiatives, and product innovations.

62 ALIZA ALI (BBA 3RD YEAR)


G.S College of Commerce and Economics, Nagpur 2023-24

.
7. Parle's distribution network is strong, but there is possibility for
expansion by targeting remote or forgotten regions. Strengthening
connections with retailers and finding new distribution channels could
help to expand market reach.

8. To stay competitive, Parle should consistently monitor competitors like


Britannia, Nestle India, and ITC. By tracking their strategies, products,
and market trends, Parle can identify threats and opportunities,
adjusting its own strategies accordingly.

9. In the fast-moving FMCG sector, constant innovation and adaptation


are crucial for competitiveness. Parle must prioritize investing in R&D
to launch new products, enhance existing ones, and swiftly address
shifting consumer preferences and market trends.

10. Parle could seize opportunities by incorporating sustainable practices


like eco-friendly packaging, reducing carbon footprint, and supporting
community initiatives aligned with sustainability goals, in response to
increasing consumer awareness and concern for environmental
sustainability.

63 ALIZA ALI (BBA 3RD YEAR)


G.S College of Commerce and Economics, Nagpur 2023-24

CHAPTER 9
BIBLIOGRAPHY

64 ALIZA ALI (BBA 3RD YEAR)


G.S College of Commerce and Economics, Nagpur 2023-24

BIBLIOGRAPHY

Website

https://www.parleproducts.com/

https://en.m.wikipedia.org/wiki/Parle_Products

https://www.mbaskool.com/brandguide/food-and-beverages/3541-parle-products-
ltd.html

https://www.mbaskool.com/competitors/companies/18785-parle.html

https://www.mbaskool.com/pestle-analysis/companies/18106-parle.html

https://iide.co/case-studies/marketing-strategy-of-parle/

https://www.researchgate.net/publication/365595286_From_biscuits_to_hand_sanitiz
ers_India's_largest_biscuit_and_confectionary_brand-Parle's_diversification

https://www.researchgate.net/publication/341811244_Parle_Products_The_Journey_o
f_Budget_Brand_Toward_Premiumization

https://www.socialresearchfoundation.com/upoadreserchpapers/5/234/190117065625
1st%20nilanjan%20roy.pdf

65 ALIZA ALI (BBA 3RD YEAR)


G.S College of Commerce and Economics, Nagpur 2023-24

ANEXTURE

66 ALIZA ALI (BBA 3RD YEAR)


G.S College of Commerce and Economics, Nagpur 2023-24

QUESTIONNAIRE

 Name

 Age: (Select one)

 Under 18
 18-24
 25-44
 45 or above

 Gender (Select one)

 Female
 Male

 How familiar are you with Parle Products?

 Very familiar
 Somewhat familiar
 Not familiar

 If yes, which of the following Parle products have you tried?

(Select all that apply)

 Biscuits (e.g., Parle-G, Hide &Seek, Monaco)


 Confectionery (e.g., Melody,Poppins, Mango Bite )
 Snacks (e.g., Fultoss, ParleWafers)
 Rusk (e.g., Parle Rusk)
 Other

67 ALIZA ALI (BBA 3RD YEAR)


G.S College of Commerce and Economics, Nagpur 2023-24

 How long have you been consuming Parle Products?

 Less than a year


 1-5 years
 More than 5 years

 In your opinion, what are the key strengths of Parle Products in the market?

 Quality
 Brand recognition
 Distribution network
 Price competitiveness
 Product variety
 Other…

 Which brands do you consider to be Parle's main competitors?

 Britannia (Good Day, Marie Gold)


 ITC (Sunfeast, Yippee)
 Nestle India (KitKat, Munch)
 Mondelez International (Cadbury,Oreo)
 Other…

 How would you rate the competitiveness of Parle Products compared to other
brands in the FMCG industry?

 Highly competitive
 Moderately competitive
 Not competitive

68 ALIZA ALI (BBA 3RD YEAR)


G.S College of Commerce and Economics, Nagpur 2023-24

 How do you perceive Parle Product's pricing strategy compared to its
competitors?

 More affordable
 Comparable
 More expensive

 What are your expectations for Parle products in the future?

 I expect them to maintain their current position in the market.


 I expect them to expand their product range and market share.
 I expect them to face increasing competition and possibly lose market
share.
 I am unsure about their future.

69 ALIZA ALI (BBA 3RD YEAR)


G.S College of Commerce and Economics, Nagpur 2023-24

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