As part of its marketing initiative, Parle Products has recently adopted a major pricing strategy whereby a 5 kg ‘Parle-G’ Atta will be available to consumers and, along with ‘Parle-G’ biscuit pack for free at Rs 90. However, competitors, ‘Pillsbury’ atta are priced at Rs 104, and, ‘Kissan Annapurna’ at Rs 102, in similar capacity.
Parle-G is available in Europe, UK, USA, Canada, etc. In Canada, it is sold by Zehrs, Food Basics, Loblaw’s, etc for only 99 cents for a 418 gram pack. Parle-G or Parle Glucose biscuits, manufactured by Parle Products Pvt Ltd, are one of the most popular biscuits in India. Parle-G is one of the oldest brand names as well as the largest selling brand of biscuits in India. For decades, the product was instantly recognized by its iconic white and yellow wax paper wrapper with the depiction of a young girl on the front. Counterfeit companies have attempted to recreate and sell lower quality products of similar names with virtually identical package design
It has 70% market share in India in the glucose biscuit category followed by Britannia, Tiger (17-18%) and ITC's Sunfeast (8-9%). The brand is estimated to be worth over Rs 2,000 crore (Rs 20 billion), and contributes more than 50 per cent of the company's turnover (Parle Products is an unlisted company and its executives are not comfortable disclosing exact numbers). Last fiscal, Parle had sales of Rs 3,500 crore (Rs 35 billion). It also is popular across the world and is starting to sell in Western Europe
MARKETING MIX OF PARLE PRODUCTS LIMITED
Core benefit- the core benefit of biscuit is to satisfy hunger of the consumer.
Basic product- in the second level, the basic product is biscuits.
Expected product- the consumers expect the product to have a good taste and also give nutrition.
Augmented product- Parle biscuits increase a person’s energy levels. o Potential product- in the future Parle could come up with different prod ucts.
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 e most remote places and in the smallest retail outlets. Parle has nearly 1,500 wholesalers, careering to 4,25,000 retail outlets directly or indirectly. A two hundred strong dedicated field force services there wholesalers and retailers. Additionally, there are 31 depots and C&F agents supplying goods to the wide distribution network. Parle constantly endeavor at designing products that provide nutrition and fun t o the common man. Most Parle offerings are in the low and mid-range price segments. This is based on their understanding of the Indian consumer psyche. The Value for money positioning helps generate large sales volumes for the products. However, Parle Products also manufactures a variety of premium products for the up-market, urban consumers. And in this way, caters a range of products to a variety of consumers
REASON OF PARLE-G MAINTAINING ITS PRICE OF RS.4.00 FOR MTHE LAST 25YRS????
• 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.
PRICING STRATEGY OF PARLE G
• Appeal to all income groups : The product is appealing to the consumers as the target audience is basically kids. This product is suitable to all Income group.
• Low and mid range price Segments: The pricing of the product is of low and mid range so as it suits every ones pocket
• Value for money:
Value for money allows all age group to enjoy parle products at fullest
• Strict cost control at every point in supply Chain: It reaches 2.5 million outlets, including villages with a population of 500 people
Parle - G is the winner of 8 Gold and 11 Silver awards at the Monde Selection Awards? The global standard for quality in Food category. Providing kids with the vital vitamins and minerals necessary for all round mental and physical development.