MARKETING STRATEGY OF PARLE-G

A Project Report
Submitted in the partial fulfillment of the requirement for the award of the
Degree of Bachelor of Business Administration
2007-2010

Submitted By: Under the Guidance

of:
Gagan Deep Kaur Mr. Anoop Pandey

BHARATI VIDYAPEETH UNIVERSITY

INSTITUTE OF MANAGEMENT & RESEARCH, NEW DELHI
An ISO 9001:2000 Certified Institute
“A” Grade Accreditation by NA
Student Undertaking

1
This is to certify that I have completed the Industrial Exposure
“(MARKETING STRATEGY OF PARLE-G DELHI
AND)“(BVIMR)” under the guidance of “(Ms Bhawna Dhawan)” in the
partial fulfillment of the requirement for the award of Bachelor of
Business Administration of Bharati Vidyapeeth University, Pune. This is
an original piece of work & I have not submitted it earlier elsewhere.

Gagan Deep Kaur

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 Certificate

This is to certify that the Industrial exposure project titled

“MARKETING STRATEGY OF PARLE-G)”is an academic work

done by “Gagan Deep Kaur” submitted in the partial fulfillment of the

requirement for the award of the Degree of “Bachelor of Business
Administration” from “Bharati Vidyapeeth University, Pune” under
my guidance & direction. To the best of my knowledge and belief the
data & information presented by him/her in the project has not been
submitted earlier.

Ms. Bhawna Dhawan

3
 Certificate

This is to certify that the summer project titled “MARKETING

STRATEGY OF PARLE-G)” is an academic work done by “(Gagan
Deep Kaur)” submitted in the partial fulfillment of the requirement for the
award of the Degree of “Bachelor of Business Administration” from
“Bharati Vidyapeeth University, Pune”.

Dr. Sachin. S. Vernekar

(Director)

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 TABLE OF CONTENTS
Chapter.No TOPIC Page. No
1. INTRODUCTION 6-7

INDUSTRY PROFILE 8-10

2. COMPANY PROFILE 11-31
MARKETING STRATEGY FOR PARLE G 32-40
3. RESEARCH METHODOLOGY 41-43
4. DATA PRESENTATION AND ANALYSIS 44- 56

5. CONCLUSION & RECOMMENDATION 57-59

6. BIBLIOGRAPHY 60
7. ANNEXURE 61-63

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 CHAPTER 1
INTRODUCTION

BISCUIT INDUSTRY IN INDIA

Biscuit industry in India in the organized sector produces around 60% of the total
production, the balance 40% being contributed by the unorganized bakeries. The
industry consists of two large scale manufacturers, around 50 medium scale
brands and small scale units ranging up to 2500 units in the country, as at 2000-
01. The unorganized sector is estimated to have approximately 30,000 small &
tiny bakeries across the country.
The annual turnover of the organized sector of the biscuit manufacturers (as at
2007-08) is Rs. 4,350 crores.
In terms of volume biscuit production by the organized segment in 2007-08 is
estimated at 1.30 million tonnes. The major Brands of biscuits are - Britannia,
Parle Bakeman, Parle G, Elite, Cremica, Dukes, Anupam, Craze, Nezone,
besides various regional/State brands.
Biscuit industry which was till then reserved in the SSI (Small Scale Industry)
Sector, was unreserved in 1997-98, in accordance with the Govt Policy, based on
the recommendations of the Abid Hussain Committee.
The annual production of biscuit in the organized sector, continues to be
predominantly in the small and medium sale sector before and after de-
reservation. The annual production was around 7.4 Lakh tonnes in 1997-98 In the
next five years, biscuit production witnessed an annual growth of 10% to 12%, up
to 1999-00.
The annual Growth showed a decline of 3.5% in 2000-01, mainly due to 100%
hike in Central Excise Duty (from 9% to 16%). Production in the year 2001-02
increased very marginally by 2.75% where in 2002-03 the growth is around 3%.

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The Union Budget for 2005-06 granted 50% reduction in the rate of Excise Duty
on Biscuit i.e. from 16% to 8%. The Federation's estimate for the current year
indicates a growth of approximately 8% to 9%.
However the average utilization of installed capacity by biscuit manufacturers in
the country has been a dismal 60% over the last decade up to 2006-07.
Though dereservation resulted in a few MNCs, i.e. Sara Lee, Kellogs SmithKline
Beecham, Heinz etc entering the biscuit industry in India, most of them, with the
exception of SmithKline Beecham (Horlicks Biscuits), have ceased production in
the country.
On the other hand, import of biscuits, specially in the high price segment has
started from 2000-01, but however, the quantum of imports has not so far
increased alarmingly and has remained at around 3.75% of the consumption of
biscuits in the country in the year 2001-02. However, recent imports from china
industries cheaper verities of biscuit, needs to be examined with cautions,
especially in the context of the price as the low margin based domestic industry,
which is operating at 60 % of the total installed capital. Exports of biscuits from
India has been to the extent of 5.5% of the total production. Export are expected
to grow only in the year 2006-07 and beyond.
Biscuit is a hygienically packaged nutritious snack food available at very
competitive prices, volumes and different tastes. According to the
NCAER(National Council Of Applied Economic Research) Study, biscuit is
predominantly consumed by people from the lower strata of society, particularly
children in both rural and urban areas with an average monthly income of
Rs. 750.00.
Biscuit can he broadly categorized into the following segments:
(Based on productions of 2007-08)
Glucose
Marie
Cream
Crackers

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 INDUSTRY PROFILE

The word 'Biscuit' is derived from the Latin words 'Bis' (meaning 'twice') and
'Coctus' (meaning cooked or baked). The word 'Biscotti' is also the generic term
for cookies in Italian. Back then, biscuits were unleavened, hard and thin wafers
which, because of their low water content, were ideal food to store.
As people started to explore the globe, biscuits became the ideal travelling food
since they stayed fresh for long periods. The seafaring age, thus, witnessed the
boom of biscuits when these were sealed in airtight containers to last for months
at a time. Hard track biscuits (earliest version of the biscotti and present-day
crackers) were part of the staple diet of English and American sailors for many
centuries. In fact, the countries which led this seafaring charge, such as those in
Western Europe, are the ones where biscuits are most popular even today. Biscotti
is said to have been a favourite of Christopher Columbus who discovered
America!
Making good biscuits is quite an art, and history bears testimony to that. During
the 17th and 18th Centuries in Europe, baking was a carefully controlled
profession, managed through a series of 'guilds' or professional associations. To
become a baker, one had to complete years of apprenticeship - working through
the ranks of apprentice, journeyman, and finally master baker. Not only this, the
amount and quality of biscuits baked were also carefully monitored.
The English, Scotch and Dutch immigrants originally brought the first cookies to
the United States and they were called teacakes. They were often flavoured with
nothing more than the finest butter, sometimes with the addition of a few drops of
rose water. Cookies in America were also called by such names as "jumbles",
"plunkets" and "cry babies".

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As technology improved during the Industrial Revolution in the 19th century, the
price of sugar and flour dropped. Chemical leavening agents, such as baking soda,
became available and a profusion of cookie recipes occurred. This led to the
development of manufactured cookies.
Interestingly, as time has passed and despite more varieties becoming available,
the essential ingredients of biscuits haven't changed - like 'soft' wheat flour (which
contains less protein than the flour used to bake bread) sugar, and fats, such as
butter and oil. Today, though they are known by different names the world over,
people agree on one thing - nothing beats the biscuit!
Some interesting facts on the origin of other forms of biscuits:
The recipe for oval shaped cookies (that are also known as boudoir biscuits,
sponge biscuits, sponge fingers, Naples biscuits and Savoy biscuits) has changed
little in 900 years and dates back to the house of Savoy in the 11th century
France. Peter the Great of Russia seems to have enjoyed an oval-shaped cookie
called "lady fingers" when visiting Louis XV of France.
The macaroon - a small round cookie with crisp crust and a soft interior - seems to
have originated in an Italian monastery in 1892 during the French Revolution.
SPRING-UHR-LEE, have been traditional Christmas cookies in Austria and
Bavaria for centuries. They are made from a simple egg, flour and sugar dough
and are usually rectangular in shape. These cookies are made with a leavening
agent called ammonium carbonate and baking ammonia.
The inspiration for fortune cookies dates back to the 15th and 17th Centuries,
when Chinese soldiers slipped rice paper messages into moon cakes to help co-
ordinate their defence against Mongolian invaders.
NutriChoice SugarOut
Sounds like yesterday when people commented that healthy foods meant
"compromising on the taste." NutriChoice SugarOut is the most novel product
range to have been introduced in the market. The product is not just sweet but
tastes great, and yet contains no added sugar.

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 Central Excise Duty on Biscuits
In the Union Budget 2007-08, the Finance Minister who had imposed a 100% increase
in the rate of Excise Duty on biscuit from 8% as a part of the rationalisation of
CENVAT and introduction of single rate of Duty did not offer any concesison on the
Budget for 2001-02. On the other hand the 50% exemption to small packs was
withdrawn. During these years and in 2006, the Federation submitted strong
representations to the Union Finance
Minister seeking relief in the Excise Duty on biscuits, giving biscuit special treatment
that it deserves on account of the exceptional nature and sensitivity to price increase.
The Federation submitted its Pre- Budget Memorandum for 2009 demanding at least
50% Excise Relief.
It is a matter of great satisfaction that the Govt. has, after 3 years, acceded to our
demand and grated reduction in Excise Duty (from 16% to 18%) in the Union
Budget for 2007-2008.

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 CHAPTER 2
COMPANY PROFILE

A long time ago, when the British ruled India, a small factory was set up in the
suburbs of of Mumbai city, to manufacture sweets and toffees. The year was 1929 and
the market was dominated by famous international brands that were imported freely.
Despite the odds and unequal competition, this company called Parle Products,
survived and succeeded, by adhering to high quality and improvising from time to
time.
A decade later, in 1959, Parle Products began manufacturing biscuits, in addition to
sweets and toffees. Having already established a reputation for quality, the Parle brand
name grew in strength with this diversification. Parle Glucose and Parle Monaco were
the first brands of biscuits to be introduced, which later went on to become leading
names for great taste and quality.

How Parle fought to make biscuits affordable to all.

Biscuits were very much a luxury food in India, when Parle began production in 1959.
Apart from Glucose and Monaco biscuits, Parle did offer a wide variety of brands.
However, during the Second World War, all domestic biscuit production was diverted
to assist the Indian soldiers in India and the Far East. Apart from this, the shortage of
wheat in those days, made Parle decide to concentrate on the more popular brands, so
that people could enjoy the price benefits.

Thankfully today, there's no dearth of ingredients and the demand for more premium
brands is on the rise. That's why, we now have a wide range of biscuits and
mouthwatering confectionaries to offer.

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The strength of the Parle Brand
Over the years, Parle has grown to become a multi-million US Dollar company. Many
of the Parle products - biscuits or confectionaries, are market leaders in their category
and have won acclaim at the Monde Selection, since 1971.
Today, Parle enjoys a 40% share of the total biscuit market and a 15% share of the
total confectionary market, in India. The Parle Biscuit brands, such as, Parle-G,
Monaco and Krackjack and confectionery brands, such as, Melody, Poppins,
Mangobite and Kismi, enjoy a strong imagery and appeal amongst consumers.

Be it a big city or a remote village of India, the Parle name symbolizes quality, health
and great taste! And yet, we know that this reputation has been built, by constantly
innovating and catering to new tastes. This can be seen by the success of new brands,
such as, Hide & Seek, or the single twist wrapping of Mango bite.
In this way, by concentrating on consumer tastes and preferences and emphasizing
Research & Development, the Parle brand grows from strength to strength.

The Quality Commitment

Parle Products has one factory at Mumbai that manufactures biscuits &
confectioneries while another factory at Bahadurgarh, in Haryana manufactures
biscuits. Apart from this, Parle has manufacturing facilities at Neemrana, in Rajasthan
and at Bangalore in Karnataka. The factories at Bahadurgarh and Neemrana are the
largest such manufacturing facilites in India. Parle Products also has 14 manufacturing
units for biscuits & 5 manufacturing units for confectioneries, on contract.
All these factories are located at strategic locations, so as to ensure a constant output
& easy distribution. Each factory has state-of-the-art machinery with automatic
printing & packaging facilities.

All Parle products are manufactured under the most hygienic conditions. Great care is
exercised in the selection & quality control of raw materials, packaging materials &
rigid quality standards are ensured at every stage of the manufacturing process.

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The Marketing Strength
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.

The Parle marketing philosophy emphasizes catering to the masses. We constantly

endeavour at designing products that provide nutrition & fun to the common man.
Most Parle offerings are in the low & mid-range price segments. This is based on our
cultivated 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.

The Customer Confidence

The Parle name conjures up fond memories across the length and breadth of the
country. After all, since 1959, the people of India have been growing up on Parle
biscuits & sweets.
Today, the Parle brands have found their way into the hearts and homes of people all
over India & abroad. Parle Biscuits and confectioneries, continue to spread happiness
& joy among people of all ages.

The consumer is the focus of all activities at Parle. Maximizing value to consumers
and forging enduring customer relationships are the core endeavours at Parle.

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 Awards - Monde Selection

Year Products Rank

Cheeslings Gold
1959 (Brussels)
Monaco Gold
1962 (Geneva) Gluco Silver
Monaco Gold
1973 (Paris) Gluco Silver
Cheeslings Silver
Cheeslings Silver
1974 (Bruxelles) Monaco Gold
Gluco Silver
Cheeslings Gold
Monaco Gold
1975 (Amsterdam)
Gluco Silver
Monaco Trophy Of The International High Quality
Monaco Gold
Cheeslings Gold
1976 (Britain-London)
Gluco Silver
Krackjack Silver
Monaco Gold
Cheeslings Gold
1977 (Luxembourg)
Krackjack Gold
Gluco Silver
Gluco Gold
Monaco Gold
1978 (Geneva)
Cheeslings Gold
Krackjack Gold
1979 (Paris) Krackjack Gold

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 Monaco Gold
Cheeslings Gold
Gluco Silver
Krackjack Gold
Cheeslings Gold
1980 (Vienne)
Monaco Gold
Gluco Silver
Cheeslings Palmes(Gold)
Monaco Gold
1981 (Amsterdam)
Gluco Gold
Krackjack Gold
Cheeslings Gold
Monaco Gold
1982 (London)
Krackjack Gold
Gluco Gold
Cheeslings Gold
Monaco Gold
1983 (Rome)
Krackjack Gold
Gluco Silver
Gluco Gold
Monaco Gold
1984 (Madrid)
Krackjack Gold
Cheeslings Palmes(Gold)
Gluco Gold
Monaco Gold
1985 (Lisbon-Portugal) Mini Cheeslings Gold
Recipe 57 Gold
Krackjack Silver
1986 (Geneva) Gluco Gold

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 Monaco Gold
Mini Cheeslings Gold
Recipe 57 Gold
Krackjack Silver
Marylong Silver
Gluco Gold
Krackjack Gold
1987 (Bruxelles) Monaco Gold
Mini Cheeslings Gold
Marylong Gold
Monaco Gold
Cheeslings Gold
1988 (Athens) Marylong Gold
Gluco Silver
Krackjack Bronze
Gluco Gold
Krackjack Gold
Monaco Gold with Palm leaves
1989 (Luxembourg) Marylong Silver
Cheeslings Gold
Melody Gold
Fudgy Gold
Cheeslings Grand Gold
Rol-A-Cola Twist wrap Gold
Krackjack Gold
1990 (Luxembourg) Monaco Gold
Gluco Silver
Poppins Silver
Melody Bronze

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 Melody Silver
Kismi Toffee Bar Bronze
Mango Bite Gold
Rol-A-Cola Gold
1991 (Barcelona)
Gluco Gold
Krackjack Silver
Monaco Gold
Cheeslings Gold
Gluco Gold
Krackjack Gold
1993 (Amsterdam) Monaco Gold
Cheeslings Gold
Nimkin Gold
Gluco Gold
Krackjack Gold
1996 (Brussels)
Monaco Gold
Cheeslings Gold
Gluco Gold
Monaco Gold
1998 (Paris) Krackjack Gold
Supermilk Silver
Cheeslings Grand Gold
Gluco Silver
Monaco Grand Gold
1999 (Roma-Italy) Krackjack Gold
Supermilk Gold
Cheeslings Gold
2000 (Lisboa) Gluco Bronze
Monaco Grand Gold

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 Krackjack Gold
Supermilk Gold
Cheeslings Gold
Gluco Gold
Monaco Gold
2002 (Brussels) Krackjack Gold
Supermilk Grand Gold
Cheeslings Gold
Gluco Gold
Monaco Gold
Krackjack Gold
2004 (Brussels)
Cheeslings Gold
Sixer Gold
Jeffs Silver
Gluco Gold
Krackjack Gold
Monaco Gold
2006 (Brussels)
Sixer Gold
Jeffs Gold
Cheeslings Gold
Parle-G Gold
Krackjack Gold
2007 (Brussels)
Monaco Gold & International High Quality Trophy
Hide & Seek Silver
Parle-G Gold
Krackjack Gold
2008 (Brussels) Monaco Gold
Hide & Seek Silver
Marie Choice Gold

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The major products offered by Parle-G industries are the following:
1. Brand Name: GoodDay and Marrie from Parle Gare stable and are the most
established brand in biscuit segment being equated for biscuits for long time.
Now the brand has taken a dent though among the present generation with
competitors coming up with more powerful advertising campaigns and offering
more variety.

2. Styling & Packaging: Parle Gofferings have the innovative designs and
packaging as compared to what is offered by the competitors. As it's a variety
seeking product the styling and packaging helps in getting more customers.

3. Quality: Parle Gname is associated with quality. The offerings from Parle
Gare of best quality when it comes to taste and hygiene. Under it's mission
statement "eat healthy think better"

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 Product mix

Parle-G
There are always some kids who seem smarter than the rest. Ever wonder how they
got to be that way? If you had to think real hard for the answer, then probably you've
never eaten Parle-G. Parle-G is the new generation's official power supply. Providing
kids with the vital vitamins and minerals necessary for all round mental and physical
development.

Apart from being the world's largest selling biscuit, 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.
Parle-G Magix
What is the power of taste? Can it get government officers to get your papers through
faster? Probably! Can it help you make friends and influence people? It's worth a shot!
Can it land you a lead role in a blockbuster movie, even if you can't act?

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Fact is, people will do anything for a taste of Parle-G Magix. But the real question is,
will you be willing to share your packet of Parle-G Magix to find out exactly how
much power you can exert? With two delicious tastes - Choco & Cashew, Parle-G
Magix has put great power in your hands. Go ahead & wield them wisely.

Parle-G Milk Shakti

What have you heard about Parle-G Milk Shakti? Think hard. Ok, now eat a biscuit.
Got it? Yes, you're absolutely right. It aids mental stimulation. And energises the
body too. Now try and memorise this - it is the only milk biscuit with the goodness of
honey.Should be unforgettable, once you bite into one of these power-packed biscuits.

Krackjack
A little sweet - A little salty… That's what makes Krackjack very, very delicious!
This delightful biscuit is acclaimed in India and across the world for its
controversial sweet and salty taste. Krackjack has won 11 Gold, 3 Silver and 1 Bronze
award at the 'Monde Selection'. You can enjoy Krackjack any time plain or with a
host of beverages like tea, coffee or milkshakes.

Monaco Zabardast Zeera

To add some spice to life, have the exciting variant of Monaco - The Zabardast
Zeera Flavour. The same light salted biscuits that lift your spirits now comes
delicately seasoned with Zeera. Relish this unique taste at all times of the day.

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Marie Choice
More and more people are now discovering the pleasures of a cup of hot steaming tea.
Or so it seems. In reality they are actually using (misusing) tea as a ready excuse to
indulge in another packet of Parle Marie Choice. Whatever the reason, Parle Marie
Choice has fast become a preferred teatime accompaniment. Find out for yourself over
a cup of tea. After all , chai toh hai bahana.

Hide & Seek

Let your taste buds indulge in the sinful pleasure of a delightful game. Seek out the
chocolate chips that aren't really hidden. And relish a delectable experience called
Hide-&-seek - tasty itna, ki dil aajayee.
As you crunch into it, these chips melt in your mouth. Try as you might, you
just can't hide from the sheer delight of munching a mouthful

Fun Centre

There might have been times when you were unsatisfied with the amount of cream in
the middle of cream biscuits. With Parle Fun Centre, you'll have no such problems.
A delicious biscuit filled with cream till the edges, ensuring that it has the highest

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cream content in its category. Available in a variety of mouthwatering, lip-smacking
flavours like chocolate, butterscotch, strawberry and milk cream, these irresistible
cream biscuits whet your appetite for more, and also make for a perfect dessert.

NutriChoice SugarOut
This is because NutriChoice SugarOut is sweetened with "Sucralose," derived from
sugar, which provides the same sweetness as any other biscuit, without the added
calories of sugar.
This range is available in 3 delicious variants namely Litetime, Chocolate cream, and
Orange cream, targeted towards all health sensitive people. It is also relevant for
consumers with sugar related ailments.
We are sure that you will be pleasantly delighted with its great taste and equally
surprised to know that it has no added sugar.
Don't be taken for a ride when you read "Sugar Free" label on many biscuit packs
marketed in India or abroad. Even with 100% no-added sugar, wheat-cereals in
biscuits have their own natural sugar content. Parle Ghas chosen to represent these
biscuits with "No Added Sugar" claim, as there is no added sugar in the processing of
NutriChoice SugarOut.
Nutri Choice Digestive Biscuit
Nothing can be more difficult than making small efforts in our daily life towards
healthy and active living. 24/7 we are engrossed in our busy schedules; skipping
meals, missing walks, along with inadequate sleep and frequently eating-out, all
take a heavy toll on our health.
At least with the new and improved NutriChoice Digestive Biscuit, we have one
less thing to worry about. Made with 50% whole-wheat and packed with added
fibre (10% of our daily dietary needs), these delightfully tasty biscuits are
amongst your healthiest bites of the day.
In your next visit to a shop just look out for its Golden-green international carton
pack.
Try one and you'll know that you've made one smart choice - NutriChoice.

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Treat Fruit Rollz

So go on and treat yourself to the lip-smacking snack!

New Parle-G Milk Bikis

Milk Bikis, the favorite growth partner of Kids, now brings greater value and
delight to all with its new product and pack design. Recently re-launched in its
existing Southern & Eastern markets, and extended across India, the new Milk
Bikis is all set to add excitement and appeal to ‘nutritious’ food. Whoever said
that ‘good food’ needs to look ‘dull and boring’, will just have to take a look at
Milk Bikis.
With a unique and attractive honeycomb design and an enhanced product
experience, the new biscuit prompts the ‘Kid’s will love it’ reaction amongst
mothers. The milk goodness in the recipe is now enhanced with SMART

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NUTRIENTS – 4 vital vitamins, iron and iodine, proven to aid mental and
physical development in growing kids. The premium packaging, besides
appealing to kids, also ensures that the biscuits remain fresh and crisp.
So, whether its breakfast time or snack time at school, rest assured that kids will
look forward to munching these crunchy, milky biscuits which even helps in their
development. And yes, adults won’t be far behind in reaching out for a pack!
Parle-G 50-50 Pepper Chakkar
The launch of the latest 50-50 variant left everybody guessing "What it is?" From
TV ads, radio, outdoor and in-store display materials to events, a website and
SMS and email blasts, traditional and new media were blended synergistically to
create excitement and curiosity about the unique taste of the biscuit. The tangy
and distinctive pepper flavoured biscuit, that's thin and crispy and more like a
snack, caught the imagination of a younger audience craving something to nibble
on. The 50-50 Pepper Chakkar launch is truly a case of leveraging the marketing
mix to best advantage.
Parle-G profits up 125 % in Q2; growth momentum continues
Mumbai, October 23rd, 2007: Parle-G Industries Ltd. (PARLE G ), one of India’s
leading food Companies, reported sales of Rs. 6,588 MM for the quarter ended
30th September 2008, reflecting 20% growth over the corresponding quarter last
year. Net Profit for the quarter at Rs. 485 MM was more than double for the
corresponding quarter last year of Rs 212 MM.
For the half year ended 30th September 07, revenue grew 19.6% to Rs. 12,356
MM, while net profit at Rs 846 MM was 64.6% higher than last year.
Commenting on the performance, Ms. Vinita Bali, Managing Director, said,
“We continue to build on the growth momentum of last year. We have added 340
basis points to our margin through higher price realization as well as innovation.
The increase in profit has been achieved despite the continuing and unprecedented
increase in prices of key commodities like flour, oils & dairy products.”
During the quarter, the Company launched ‘Treat Choco Gelo’, an extension of
the Treat franchise with ‘double masti’ of chocolate & caramel and also

25
 introduced a range of premium indulgence cookies under ‘Pure Magic’ brand.
Investment in Advertising and Sales Promotion has been increased by 50% to fuel
the innovation led growth.

MEASURES UNDERTAKEN BY GOVERNMENT

The Food Processing Industry have been experiencing the adverse affect of
multiplicity of various Acts/ Rules and Regulations for food standards under the
Prevention of Food Adulteration Act Standards of Weights & Measures Act, Food
Products Order, the Meat Products Order, the Bureau of Indian Standards & MMPO
(Milk & Milk Product Order), etc. affected the Food & Food Processing Sectors. They
need to be modernized & converged.
As a consequence of various representations of industry, the Govt. of India has
decided to set up a Group of Ministers (GOM) to propose legislation and other
changes for preparing a Modem Integrated Food Law and related regulations. The
Ministry of State for Food Processing Industries is the Nodal Ministry to coordinate
the Parle G l.

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Our federation submitted its recommendations and suggested to placed before the
Group of Ministers, covering the broad frame work required for the food legislation as
well as specific issues such as:
The main objectives of the new Integrated Food Laws & its structure
Methodology of development of Standards
Provisions of Labelling
Acceptance of a basic list of additives
Matters relating to GMP(Good Manufacturing Practice), GHP(Gud Health Plan)
Issues related to Codex
Procedure for sampling& launching of Prosecutin
Grading of violations according to the nature of discrepancy.
Recent Changes / Amendments
Prevention of Food Adulteration Rules The Ministry of Health & Family Welfare,
Govt. of India vide its Notification No. GSR 908 (E) Dt. 20.12.2008 has provided for
printing of statutory symbol on all products containing vegetarian ingredients. The
notification came into effect from 20 June 2008. As members may be aware the Govt.
has earlier amended PFA Rules vide notification No. 245(E) Dt.4.4.2001 provided for
statutory printing of the symbols of food packages containing non vegetarian
ingredients. This notification has already come into effect from 4 October 2008.
Our Federation along with apex organizations such as CII(Confederation Of Indian
Industry) & CIFTI (Confederation Of Indian Food Trade & Industry)have represented
to Hon'ble Union Minister for Health and Family Welfare seeking extension of a
minimum period of 6 months for implementation of the notification, particularly on
account of hardships in printing vegetarian symbol in advertisements. A delegation
from the industry met the Secretary, Ministry of Health and Family Welfare and
apprised him of the hardships faced by industry. Further follow up is in hand.

Prevention of Food Adulteration Act / Rules

Members reported various instances where the PFA authorities in the States are
adopting penal action, even in cases of very minor offences / errors under the PFA

27
Rules. FBMI (Federation Of Biscuit Manufacturer Of India) suggested that such minor
errors etc should be compounded, avoiding prosecution, harassment and resultant
losses to biscuit units. This issue has also been referred to CII (Confederation Of
Indian Industry) & CIFTI (Confederation Of Indian Food Trade & Industry) for
further follow up.

Introduction of HACCP/GMP/GHP
The Govt. of India (Ministry of Health), has formulated proposals to introduce the
concepts of Hazard Analysis Control Convention Procedures (HACCP), Good
Manufacturing Practices (GMP) and Good Hygienic Practices (GHP), as a step
towards eventual adoption in the various states in accordance with the International
Codex Alumnus, in the context of trade terms and regulatory, measures under the
WTO regime.
After discussions with FBMI and other organizations, the Dept of Health constituted
Sectoral Groups on various categories of food processing industries. The Sectoral
Group on Bakery Products consisted of FBMI ((Hazard Analysis Critical Control
Point) Federation Of Biscuit Manufacturer Of India), as Convener and FBMI and SIB
as members. After detailed deliberations, the Federation submitted our comments and
suggestions, highlighting the hardships that the biscuit units would face in the event of
statutory enforcement of HACCP/GMP/GHP.
The Federation suggested that the concepts of HACCP etc should be made voluntary
in the first two/three years, keeping in view the ground realities in the bakery sector
and due to the fact that the implementation of HACCP/GMP/GHP may be beyond he
financial and technical capabilqities of majority of the biscuit manufacturers and
compulsory introduction of these regulations would adversely impact the via Parle G
ity and may lead to closure of a large number of bakeries in the country. FBMI, after
detailed deliberations by the Executive Committee, suggested to the Govt. of India
that, in the first instance projects for imparting training to the Managers/Executives
and workforce in the bakery industries should be organized so as to create awareness

28
and knowledge on these complex regulatory aspects and educate the personnel in the
industry on various aspects of HACCP etc.
Unified Food Laws – Need for
As members are aware, the food processing industries, including Biscuit / Bakery
segment, are subjected to and administered by a large number of statues i.e. PFA Act /
Rules, Weights & Measures Act, Packaged Commodities Rules, MMPO(Milk & Milk
Product Orders) under Essential Commodities’ Act / Rules, Agmark, BIS etc. There
are much multiplicity of implementing / enforcing Agencies / Departments for watch
one of these Acts and Rules, both at Central and State levels. Unfortunately, many a
time there are instances of overlapping and even contradictions between such
Agencies / Departments. PFA Act / Rules are recipe based, and focus on prosecution /
penal action, even for minor / technical errors etc. which are also different in the
States.

Similarly, in the Standards of Weight & Measures Act and PC Rules, there have been
plethoras of amendment, and proposals for more restrictions on the food processing
industries including Biscuit and this has resulted in unavoidable hindrances in the
development and growth of the industries.
It is in this context that our Federation in close coordination with CIFTI, CII, FICCI,
PHDCCI urged he Government to evolve a single Integrated Food Law, encompassing
the existing legislation’s mentioned above, with main focus on development and
promotion of the Food Processing, Agro Based industries in the country, paving way
for creation of large employment generation, consumption of varied types of safe food
products of good quality, at reasonable prices benefiting consumers particularly those
in the lower and middle segments of the society. Exports and better capacity
utilization also need to be encouraged in the proposed Integrated law, which would
also result in higher productivity and better revenue for the Central and State
Governments.
As a result of such concerted efforts and presentations by organizations of industry,
including AIMBA the Government constituted the Justice Venkatachalam Committee

29
to review the entire gamut of the existing Food Laws and to recommend the ways ad
means and basis for unifying these Acts / Rules and regulations into an Integrated
Food Law (Act). After due consideration of all aspects and by inviting suggestions
from Govt., Industry and Commerce as well as consumers and other important
sections of the community at large, the Committee submitted its report containing
detailed suggestions / recommendations on the imperative need for integrating the
existing multiple food laws.

Accordingly, the Govt. formed a Group of Ministers with the Ministry of Food
Processing Industries as the nodal point and this comprehensive exercise has resulted
in the Draft Food Parle G l 2002 presented to the Group of Ministers. The said Draft
Food Parle G l 2002 has been formulated to “provide for the production, manufacture,
processing and sale of safe and suitable food systematic and scientific development of
food industry, introducing new technologies, imparting new inputs of market
dynamics, and to create an enabling environment for innovation and value additions,
ensuring high degree of objectivity and transparency and to provide for the
establishment of a Food Development an Regulatory Authority of India an the Council
for Food Standards and for matters connected therewith or incidental thereto.

30
 MARKETING STRATEGY FOR PARLE G
• Cost leadership:
It is a cost leader in its industry except in cheese and glucose biscuits where it lags
behind Parle respectively. The company has undertaken modernization program
in order to improve productivity. To focus resources, rationalization of brands and
packs has been undertaken and the existing brands have been clustered into more
cost efficient portfolio through a process of brand concentration.

• Economies of scale:
Parle G is adding capacity at regular intervals depending upon the economic
environment It has the advantage of being able to source raw materials and even
HIGH
packaging at cheap rates because of large scale of operations.

MARKET
Parle G is aGROWTH
star BCG as shown below:
RATE

LOW 31 RELATIVE MARKET

SHARE HIGH
 * PARLE G

The BCG growth-share matrix shows that Parle G is a STAR BCG, being a
market leader in a high growth market

32
 FIVE FORCE MODEL FOR PARLE G

COMPETITOR’S FORCE
(Major MNCs likely to diversify and
get into related business of Parle G

PARLE G BUYER’S FORCES

SUPPLIER’S FORCE
PARLE (more quality suppliers,
(Very large number less
of bargaining power
BAKEMAN’S so conscious and price
REGIONAL sensitive

SUBSTITUTE’S FORCES

Household snacks
Bakery biscuits
Fast food

33
 PARLE G SUPPLY CHAIN

Supply chain Describes a longer channel stretching from Raw materials to

components to final Products that are carried to final Buyers.
Parle G Supply Chain include Authorized wholesaler, Superstockists, RPDs,
UPDs and Retailers. The Raw Materials are converted into finished goods in the
Production Units or Factories. From factories the finished goods are then sent to
the Regional Depots or the Mother Depots. From here the stock reaches the
Warehouse for distribution to the Authorized Wholesaler. From Warehouse or
Depots the Stock either reaches the Superstockists or the Authorized Wholesalers.
From Superstockists the stock goes to either UPDs (Universal Printer Driver) or

34
RPDs (Radiation Protection dosimetry) from where it finally reaches to the
markets of Rural India. The Authorized Wholesaler buy goods from Company
and from them the Stock goes to the Retailers. Retailers sell Company Products to
the End Consumers.
The Sale of the Stock from Depots to Authorized Wholesaler constitutes Primary
Sale while the Sale of the Stock from Authorized Wholesaler to Wholesaler
constitute Secondary Sale.
Different rural markets have different set of Superstockists (SS) which further
have RPD’s (Rural preferred Dealers) and UPD’s (Urban preferred Dealers) under
them. These UPD’s are the dealers of very small regions only which are
considered rural only and are not completely urban.

Sales Promotion
Sales promotion, a key ingredient in marketing campaigns, consists of a diverse
collection of incentive tools, mostly short term, designed to stimulate quicker or
greater purchase of particular products or services by consumers or the trade."
In marketing, sales promotion is one of the four aspects of promotion. (The other
three parts of the promotional mix are advertising, personal selling, and
publicity/public relations.) Sales promotions are non-personal promotional efforts
that are designed to have an immediate impact on sales. Sales promotion is media
and non-media marketing communications employed for a pre-determined,
limited time to increase consumer demand, stimulate market demand or improve
product availability. Examples include:
· coupons
· discounts and sales
· contests
· point of purchase displays
· rebates
· free samples (in the case of food items)
· gifts and incentive items

35
· free travel, such as free flights Sales promotions can be directed at either the
customer, sales staff, or distribution channel members (such as retailers). Sales
promotions targeted at the consumer are called consumer sales promotions.
Sales promotions targeted at retailers and wholesale are called trade sales
promotions.

Purpose of sales promotion.

Sales-promotion tools vary in their specific objectives. A free sample stimulates
consumer trial, whereas a free management-advisory service aims at cementing a
long-term relationship with a retailer.
Sellers use incentive type promotions is to attract new triers, to reward loyal
customers, and to increase the repurchase rates of occasional users. Sales
promotions often attract brand switchers, who are primarily looking for low price,
good value, or premi-urns. Sales promotions are unlikely to turn them into loyal
users. Sales promotions used in markets of high brand similarity produce a high
sales response in the short run but tittle permanent gain in market share. In
markets of high brand dissimilarity, sales promotions can alter market shares
permanently.

MAJOR CONSUMER PROMOTIONAL TOOLS

 Samples: Offer of a free amount of a product or service delivered door to
door, sent in the mail, picked up in a store, attached to another product, or
featured in an advertising offer.
 Coupons: Certificates entitling the bearer to a stated saving on the
purchase of a specific product: mailed, enclosed in other products or
attached to them, or inserted in magazine and newspaper ads.
 Cash Refund Offers (rebates): Provide a price reduction after purchase
rather than at the retail shop: consumer sends a specified "proof of

36
 purchase" to the manufacturer who "refunds* part of the purchase price by
mail.

To promote products to consumer, company devises some scheme like discount on

MRP, giving freebies with product etc.
How Consumer promotional offer products differ from normal product without offer ?
 The product is marketed under some scheme.
 The packaging is different from normal product.
 The freebies procurement & logistics planning is additional activity.
 The production centers may be different from regular production centers.
 The distribution strategy may be different from regular one.
Parle G Industries Ltd. Planned to launch six promotional offers in the month of May
and June 2008.
Complexities involved were promotional offers limited to some region of our country
and rest of country was on normal product.The promotional offers were limited to
Uttar Pradesh and Rajasthan.
Objectives :-
 To deliver right SKU (Stock Keeping Unit) & Gift item to right place in right
time.
 To achieve internal customer satisfaction level to 95%.
 And to increase the consumer base for newly launched product.
Marketing Department decides to run promotional offers on brands with following
objectives.
 To penetrate market with greater share of business.
 To leverage Parle-G brand by having association with some other known
brand.
 To counterattack competitor’s strategy.
The consumer promotional offers are based on the principle of elasticity of demand.
Following consumer promotional offers were conceptualized for May and June 2006.

37
PROMOTION IN RURAL MARKET

MERA RPD MAHAN CONTEST

Mera RPD (Radiation Protection Dosimetry) Mahan contest was a dealer

incentive contest which was designed for the dealers of the Rural market. This
contest was designed to motivate the RPDs (Radiation Protection Dosimetry) and
UPDs (Urban preferred Dealers) to reach their Sales target of 35,000 and 50,000
respectively. This contest was held in the month of May and June.
The details of this contest are as follows:
Period May- Jun'06

Scope RPDs (Radiation Protection Dosimetry) in all SURE Territories

Criteria Sales target achievement for the incentive period

Targets for the period to be set by the SO/ ASM in
consultation with the RSM Minimum swing of 40% in
May and June'06 MA sales over Jan-Mar'06 MA sales

To qualify the RPD must have minimum current sales

of Rs.30000 PM or the Target sales should be a
minimum of Rs.30000 PM.
Mechanics

 1 Top RPD to be selected as the "Mera RPD (Radiation Protection Dosimetry)

Mahaan" per RPD PSM PJP.
 This RPD to get a gift article worth Rs. 3000/- (Nokia MoParle G e Phone
Proposed
 All other RPDs to get a gift article worth Rs. 500/- or cash if preferred

38
 WEAKNESSES
• The Company takes a lot of time in handling the UCA (Supply Chain Company)
claims of the authorized wholesalers; this !eads to demotivation
• Warehousing norms are not followed, which accounts for high breakage
• The semi-sweet category accounts for the maximum turnover in the mass market-
the Tiger Anytime being a member of this category is perceived as a tow quality
product; this may liquidate Parle G 's brand equity in the mass market
• Parle G has positioned it's Tiger range on health and taste, but my findings show
that health consciousness in the mass market is low, which means that the brand is
under-positioned, since the market doesn't consider "health1 as an important
benefit in biscuits
• Parle G 's strength is in mid, premium mid super-premium category; this market is
approaching a saturation point
• Parle G 's mass market is not segmented properly; Parle G cannot afford to go all
out in the mass market, the best strategy would be to concentrate on these
segments of the mass market, which will account for volume sales and require
minimum investment
• Performance-based incentive to motivate the sates staff is not existing in the
Company
• Yearly incentives don't motivate the dealers of mass market brands
OPPORTUNITIES
• Mass market is growing with established preference for biscuits
• Growing middle class in India can provide more opportunities for Parle G 's pillar
brands
• Credit given to dealers will help Parle G in expanding the width of reach, by
which the company will have a volume advantage

39
• Taste plays an important role in mass market which can take care of price
sensitivity to some extent
• There is low differentiation in the mass market brands
• There is a fairly good market for a high count salty cracker variety and a cream
cracker variety in the mass market

THREATS
• De-reservation of the biscuit industry may attract foreign players who initially
will try to attack the premium segment, which is already established for Parle G
• A characteristic feature of premium market consumer is that this segment is not
brand loyal; therefore there is a chance of the consumers to shift to other brands in
the near/distant future
• Too much concentration in the mass market may affect the companies market in
this established segment
• Mass-market venture may account for this cannibalization
• A large number of competitors each having respective bold in different markets of
the company's pillar brands will account for high contribution/orrir

40
 CHAPTER 3

RESEARCH METHODOLOGY
OBJECTIVE OF THE STUDY

PRIME OBJECTIVE

To find out the competitive activity and merchandising through retailer of PARLE G
BUISCUIT in south Delhi.

OTHER OBJECTIVE

 To find out the consumer preference according to retailer view.

 To find out the satisfaction levels towards service provide by PARLE G.

 To find out the major competitor of PARLE G BISCUIT.

SCOPE OF THE STUDY

FMCG Sector is a growing sector in India at high pace. Biscuit manufacturing
industries has lot of scope in the Indian economy. Company manufactures according to
the consumer’s interest. There is a high competition in biscuit manufacturing
industry’s such as Parle-G, Sunfeast, Priya gold, etc. consumer prefers to take that
product which not only satisfy him but also his colleagues, family, natives. This study
helps in determining right choice for them.

41
DATA COLLECTION METHOD
Data collection is an elaborate process in which the researchers make a planned
research for all relevant data. Data is the foundation of all market research. Data are
facts may be obtained from several sources. Data can be classified as:

• Primary data

• Secondary data

PRIMARY DATA
It is gathered for the first time by the researchers. If the secondary data is found to be
inadequate or unavailable, the researcher goes for primary data.

COLLECTION OF PRIMARY DATA

The researcher was assigned to do a comparative study on PARLE G BISCUIT. In
order to accomplish the job, the researcher adopted the two-way strategy to collect the
primary data.

Secondly to complete the job in a more genuine way, retailer survey was conducted
sample of 30 rational retailers were taken and they were supplied with a structured
non-disguised questionnaire. The idea was to seek out the market position of PARLE
G BISCUIT.

The data collected was collected from different retail outlets of biscuit namely:

 Shops

 Confectioners

 Kirana and general stores

42
 SECONDARY DATA
Secondary data is the data borrowed from secondary sources by the researcher.
Secondary data can be internal or external i.e, internal records of the company or
information available from library and other statistical organization.

In a Market Research Project Field Work has a very vital role to play. As a matter of
fact, it’s the back bone of any Market Research Project. Field work basically consists
of collection of primary data. In this project, researcher had to undergo a lot of Field
Work. For the purpose researcher has a visit various cinema halls, public attractive
places, colleges & school canteens etc.

The whole area which was to be surveyed was divided into different segments
randomly. Simultaneously survey of both retailers and consumers was carried out. The
researcher worked in the field for a span of one & half months.

Later on whole data which was collected from field was well scrutinized & tabulated
for analysis. Its interpretation has been provided in most easy to understand manner
with the help of suitable diagram & charts.

43
 CHAPTER 4

DATA PRESENTATION AND ANALYSIS

The Sale of 6 SKUs (Stock Keeping Unit) in 4 Regions namely Western UP, Eastern
UP, Central UP and Rajasthan was analyzed for a Period of three months from April
to June. In April, there were no Promotions on these SKUs (Stock Keeping Unit)
while in the Month of May and June these SKUs were offered with Promotions. The
total Sale of these SKUs (Stock Keeping Unit) without Promotion i.e. in the month of
April was compared with the total Sale of these SKUs with Promotions in the month
of May and June. The total Percentage increase in Sales from April to May and then
subsequently from May to June was analyzed. The Effect of these Promotions on the
total Sales was calculated.
These promotions are launched especially for the rural marketsand therefore their
effectiveness is to be tested in the rural market only. These has been introduced to
increase the sale of these biscuits in rural market.
The RPD’s and the UPD’s of each and every Superstockist was tracked. It was
tracked that whether the RPD’s have meet their sales target of 35,000 and UPD’s
of 50,000 or not. If they have not met their targets by when are they going to meet
their targets and what is the reason they have not yet met their sales target.
Thereafter the monthly reports of April, May and June were compared and the
Percentage increase in Sale was calculated.
For all the three months the Overall Sale as well as the RPD and UPD Sale was
Calculated for all the four Regions. In Addition to this the the total Percentage of
Stock reaching the Rural market and the Urban market was also calculated. At
each and every step the Percentage increase in Sale of euery region was
calculated.

44
The Analysis and Finding of this Projects are as follows:
SALES ANALYSIS OF CONSUMER PROMOTION
TOTAL SALES (in Ttonnes)
MATERIAL APRIL MAY JUNE
50:50 150G 10 13 44
TIGER KESAR KULFI 100G 1 3 4
TIGER ROSE MILK 100G 2 3 7
TIGER ORANGE CREAM 100G 10 15 22
TIGER ELAICHI CREAM 100G 1 1 7
TIMEPASS CLASSIC S.150G 1 3 5
WESTERN UP

50 44
TOTAL SALE(in Tonnes)

40
APRIL
30 22
MAY
20 13 15
10 10 JUNE
7 7
10 4 3 5
1 3 2 3 1 1 1
0
91340 50:50 150G 91344 TIGER KESAR 91345 TIGER ROSE 91346 TIGER 91347 TIGER 91350 TIMEPASS
KULFI 100G MILK 100G ORANGE CREAM ELAICHI CREAM CLASSIC S.150G
100G 100G

It is clearly depicted from the above Graph that there has been a tremendous
increase in total Sales of all the SKUs (Stock Keeping Unit) from April to June
due to the Promotional Schemes offered with these SKUs during this Period. The
maximum swing in the total Sale was observed for 50:50 150gm which is about
44 tonnes in June as compared to only 10 tonnes in April.Also in this region, there
has been a noticeable increase in the total Sale of the Tiger Orange Cream 100
gm. The sale was increased from 10 tonnes in April to 22 tonnes in June. The
Percentage increase in the total Sale of this SKU (Stock Keeping Unit) from April
to June was 120%.
The Total Sale of all the rest of the SKUs (Stock Keeping Unit) has also increased
Marginally during this time Period.

45
 TOTAL SALES (in Tonnes)
MATERIAL APRIL MAY JUNE
50:50 150G 35 56 109
TIGER KESAR KULFI 100G 1 1 7
TIGER ROSE MILK 100G 1 0 6
TIGER ORANGE CREAM 100G 61 62 70
TIGER ELAICHI CREAM 100G 2 4 8
TIMEPASS CLASSIC S.150G 3 7 27

EASTERN UP

120 109
TOTAL SALES(in Tonnes)

100

80 70 APRIL
6162
56 MAY
60
35 JUNE
40 27
20 7 8
11 1 0
6 2 4 37
0
91340 50:50 91344 TIGER 91345 TIGER 91346 TIGER 91347 TIGER 91350
150G KESAR KULFI ROSE M ILK ORANGE ELAICHI TIM EPASS
100G 100G CREAM 100G CREAM 100G CLASSIC
S.150G

It is clearly seen from the bar Diagram that in this region, the maximum
Percentage increase in total Sales was for 50:50 150gm and Timepass Classics
150gm. There has been a tremendous increase (212% for 50:50 150gm and 800%

46
for Timepass Classics 150 gm)in sale for these SKUs (Stock Keeping Unit) due to
promotional Schemes offered with these SKUs (Stock Keeping Unit).
There has been a Marginal increase in the Sale of rest of the SKUs (Stock
Keeping Unit).
TOTAL SALES (in Tonnes)
MATERIAL APRIL MAY JUNE
50:50 150G 8 12 88
TIGER KESAR KULFI 100G 6 8 6
TIGER ROSE MILK 100G 4 5 6
TIGER ORANGE CREAM 100G 13 14 18
TIGER ELAICHI CREAM 100G 3 4 9
TIMEPASS CLASSIC S.150G 3 4 27

CENTRAL UP

100
88
TOTAL SALES(in Tonnes)

90
80 APRIL
70 MAY
60
JUNE
50
40
27
30
18
20 12 13 14
8 6 8 6 4 5 6 4
9
4
10 3 3
0
91340 50:50 150G 91344 TIGER 91345 TIGER 91346 TIGER 91347 TIGER 91350
KESAR KULFI ROSE MILK ORANGE ELAICHI TIMEPASS
100G 100G CREAM 100G CREAM 100G CLASSIC S.150G

In this region also, the Maximum increase in Percentage total Sales was Observed
for 50:50 150 gm and Timepass Classics 150 gm. The Percentage increase in
Total Sales of 50:50 150 gm from April to June due to Promotions was 1000%
and for Timepass Classics 150 gm was 800%.
An unusual trend in increase in sale was Observed in case of Tiger Kesar Kulfi
100 gm. There has been a increase in sale of this SKU (Stock Keeping Unit) from

47
 TOTAL SALES (in Tonnes)
April to May but there has been a Drop in the Sale from May to June. This is
because of the non availability of this SKU (Stock Keeping Unit) in this Region.

MATERIAL APRIL MAY JUNE

50:50 150G 36 41 70
TIGER KESAR KULFI 100G 8 10 11
TIGER ROSE MILK 100G 7 7 13
TIGER ORANGE CREAM 100G 16 13 32
TIGER ELAICHI CREAM 100G 6 7 4
TIMEPASS CLASSIC S.150G 2 13 19

RAJASTHAN

80
70
TOTAL SALE(in Tonnes)

70
60
50 APRIL
41
40 36 MAY
32
30 JUNE
19
20 16
11 13 13 13
8 10 7 7 6 7 4
10 2
0
91340 50:50 91344 TIGER 91345 TIGER 91346 TIGER 91347 TIGER 91350
150G KESAR KULFI ROSE M ILK ORANGE ELAICHI TIM EP ASS
100G 100G CREAM 100G CREAM 100G CLASSIC
S.150G

As it can be seen in the above chart sale of 50:50 due to promotion shoot up like
anything in month of June that is a increase of around 89%. Also other SKUs
(Stock Keeping Unit) like TIGER ORANGE and TIGER ELAICHI showed a
decreasing trend due to unavaiParle G ity of stock of the given product.

48
 EASTERN UP

80
67.7
70 60 57 57.9
60
PERCENTAGE

50 50
50 40 43 42.1
%Rural Sale
40 32.3
% Urban
30
20
10 0 0
0
91340 50:50 91344 91345 91346 91347 91350
TIGER TIGER ROSE TIGER TIGER TIM EPASS
KESAR M ILK ORANGE ELAICHI CLASSIC
KULFI

The affect of promotion is clearly seen in the Eastern UP. The target rural sale
according to superstockists contribution should be 61%. Only TIGER KESER
KULFI and TIGER ORANGE are close to the target whose Rural Sales
Percentage are 60% and 57% respectively. For all the rest of the SKUs (Stock
Keeping Unit) the Percentage Rural Sale is very less than the targeted in this
month.
The SKU named TIGER ROSE MILK does not show any sale neither Rural nor
Urban in this region. This is due to non availaParle G ity of this SKU (Stock
Keeping Unit) in this region during the month of May.

%Rural % Urban
aterial Sale Sale
50:50 6.7 93.3
TIGER KESAR KULFI 18.5 81.5
TIGER ROSE MILK 5.4 94.6
TIGER ORANGE 28.7 71.3
TIGER ELAICHI 16.3 83.7
TIMEPASS CLASSIC 20 80

49
 CENTRAL UP

100 93.3 94.6

90 81.5 83.7 80
80 71.3
PERCENTAGE

70
60 %Rural Sale
50
40 % Urban
28.7
30 18.5 20
16.3
20 6.7
10 5.4
0
91340 50:50 91344 91345 91346 91347 91350
TIGER TIGER TIGER TIGER TIM EPASS
KESAR ROSE M ILK ORANGE ELAICHI CLASSIC
KULFI

The target rural percentage sale should be at least 34% according to

Superstockists contribution in this area. TIGER ROSE MILK has done the least
sale among all the SKUs(Stock Keeping Unit) . There should be slight increase in
sales of TIGER ORANGE i.e. up to 5% so as to reach the targeted rural sale
Percentage. None of the SKUs (Stock Keeping Unit) has reached the targeted
Sales Percentage in the month of May.
%Rural % Urban
Material Sale Sale
50:50 38.3 61.7
TIGER KESAR KULFI 50 50
TIGER ROSE MILK 50 50
TIGER ORANGE 40 60
TIGER ELAICHI 28.3 71.7
TIMEPASS CLASSIC 43.6 56.4

50
 RAJASTHAN

80 71.7
70 61.7 60
56.4
60
PERCENTAGE

50 50 50 50
50 43.6
38.3 40 %Rural Sale
40
28.3 % Urban
30
20
10
0
91340 50:50 91344 91345 91346 91347 91350
TIGER TIGER ROSE TIGER TIGER TIM EPASS
KESAR M ILK ORANGE ELAICHI CLASSIC
KULFI

The target rural percentage sale should be at least 48% according to

Superstockists contribution in this area. TIGER KESAR KULFI and TIGER
ROSE MILK has reached their target Rural Sale Percentage. Rest all the SKUs
are below the target sale Percentage. TIGER ORANGE and TIMEPASS
CLASSIC are close to the targeted Sale and need slightly more efforts to reach to
the targeted Percentage in the next month.
PERCENTAGE RURAL AND URBAN SALE SKU (Stock
Keeping Unit) WISE IN MONTH JUNE
%
%Rural Urban
Material Sale Sale
50:50 10 90
TIGER KESAR KULFI 10 90
TIGER ROSE MILK 6 94
TIGER ORANGE 12 88
TIGER ELAICHI 17 83
TIMEPASS CLASSIC 45 55

51
 WESTERN UP

100 90 90 94
88
83
80
PERCENTAGE

55
60 45 %Rural Sale
40 % Urban
17
20 10 10 12
6
0
91340 91344 91345 91346 91347 91350
50:50 TIGER TIGER TIGER TIGER TIM EPASS
KESAR ROSE M ILK ORANGE ELAICHI CLASSIC
KULFI

The target rural percentage sale should be atleast 16.8% according to

Superstockists contribution in this area.Only TIMEPASS is doing
exceptionally good but rest SKUs (Stock Keeping Unit) i.e. 50:50 (12.3%) and
TIGER Cream(Aggregate 14.6%) are less than the target percentage.

%
%Rural Urban
Material Sale Sale
50:50 47 53
TIGER KESAR KULFI 60 40
TIGER ROSE MILK 71 29
TIGER ORANGE 60 40
TIGER ELAICHI 50 50
TIMEPASS CLASSIC 46 54

QUESTIONNAIRE ANALYSIS

52
1. Write down the first brand name that comes in your mind regarding biscuits?
According to retailers survey,customer like changes and in need to taste new
consumable products. If he/she is a consumer of parle-g biscuits than not for all the
time he will stick to that. If company manufactures according to consumers interest
then he will definitely be satisfied. Various variants of Parle-G such as krackjack ,
Krack Jack crispy cream ,Monaco ,Hide & Seek ,Digestive Marie , etc

2.What others brands of biscuits can you recall?

16
Parle-G
14
sunfeast
12
Cremica
10
Elite
8
Craze
6
Nezone
4
Dukes
2
Britannia
0
1 2

Parle-G 14
sunfeast 3
Cremica 2
Elite 1
Craze 6
Nezone 1
Dukes 1
Britannia 2

In this survey, 14% of the consumers have keen interest in Parle-G

products. Rest go to other brands out of 30%

3.What is the frequency of biscuits you take?

53
 10

6 Series2
4 Series1

0
Once in Tw ice in thrice in Any
a Week a Week a Week Others

Once in a week 5
Twicw in a week 8
Thrice in a week 9
Any others 8

Frequency of biscuits that consumer’s take is Thrice-A-Day.

1. What brand do you have on occasions?
16
14
12
10
Series2
8
Series1
6
4
2
0
Parle-G Sun Feast Priyagold Britannia

Parle-G 14
Sun Feast 5
Priyagold 6
Britannia 5

Most of the times Consumers prefer Parle-G biscuits rather than Sunfeast
,Priyagold ,etc

54
 4.Which biscuits gets you best freshness?
10

6
Series2
Series1
4

0
Mariegold 50-50 Good Day Krack jack

Mariegold 7
50-50 9
Good Day 6
Krack jack 8
50-50 biscuits are preferred for freshness which is also light
and crunchy as compare to other brands.

5.Have you any complain about the biscuits?

9
8
7
6
5 Series2
4 Series1
3
2
1
0
Sh ity
gh

ity
ge

s
s

er
er

al
hi

bi

ta

th
pp

qu
i la

or
o

O
to
ra

va

d
w

Ba
e

A
ic
y

on
Pr
irt
D

Dirty wrappers 2
Price too high 6
Non Availability 2
Shortage 8
Bad quality 7
Others 5

8% Consumers deal with shortage problem rest deals with Dirty

wrappers ,price to high ,etc

55
 6.Which brand do you prefer mostly?
16
14
12
10
Series2
8
Series1
6
4
2
0
Parle-G Sun Feast Priyagold Britannia

Parle-G 14
Sun Feast 5
Priyagold 6
Britannia 5
14% people go for parle-g for every time of occasions.

7.Can you change your mind for others brand, if the brand is not
available in shop

18
16
14
12
10
Series1
8
6
4
2
0
Yes No

Yes 17
No 13
Definetly consumers mind are flexible ,If Britannia is not
available to particular retailer customer would like to taste
something new and accordingly he can shift his taste to like
parle-g biscuits.

56
 CHAPTER 5
CONCLUSION & RECOMMENDATIONS

Sales Promotional Offers helps the company to increase the over sales of the
product under promotion because consumers tend to buy in ample amount due to
small duration of the promotion and feel value for their money.
 But through these promotional schemes company earns less margin.
 It also helps in widening their consumer base i.e. it attracts new triers.
 It creates the brand awareness among the consumers about the newly launched
product like Tiger cream.
 Products which are less popular among the consumers like Pepper Checker are
also get Promoted.
 It helps to increase the repurchase rate of the occasional buyers
 Since the promotions were designed for rural market and rural market
contributes to 70% of the total market hence attracting more consumers. And turn
them to loyal users
 It enhances brand image
 Since attractive promotion attracts consumers hence retailers push products
under promotion rather than competitors products of same kind.
 Sales promotion also attracts brand switchers who are primarily looking for
low price good value of premiums.

57
 Learnings through Trade Promotions:
 to persuade the RPDs and UPDs to carry the brand because they are more
concentrated in making sales of the given company product so as to get
maximum incentives.
 to persuade the RPDs and UPDs to carry more units than the normal
amount as they have to reach the target sale under Mera RPD Mahaan Scheme.
 to induce RPDs and UPDs to promote the brand by featuring, display, and
price reductions so as to attract more consumers.
 to stimulate RPDs and UPDs and their sales clerks to push the product than
competitors products otherwise they wont be able to reach their sales target.
 Also Attract more RPDs and UPDs to take participate in the contest because
of the incentives.

Problems
 Stock out:
It was observed that most of the Promotional SKUs (Stock Keeping Unit) were
out of stock at most of the depots during the Promotional Period which has
effected the total sales of these SKUs in these four regions tremendously.
 Non availaParle G ity of Freebies:
It was observed that sometime during the Promotional Period the Freebies
which has to be given with the main Product were not available. Due to their
unavailaParle G ity the Promotion for that Particular SKU (Stock Keeping
Unit) was not carried for that Period of Promotion.
 Allocation Problem:
The allocation was the most prominent problem during this Promotion. The
stocks were not allocated in the Rural and Urban markets according to their
Percentage area contribution. In some areas the stock was supplied more which
was not in accordance with the Percentage area contribution of that region
while in some very less stock was supplied as compared to their Percentage

58
area contribution. Due to this most of the time major part of the stock was
dispatched in the Urban markets which has seriously affected the Rural sales.
 Dispatch Problem:
There was no proper schedule for dispatching & receiving of orders generated.
Generally the Stocks are Dispatched late by about a week from the depots due
to which the stock reaches late to the wholesalers and during that week the
wholesalers face the problem of non availability and are left with very less or
no stock to sell.
 Poor sale promotion skills:
According to observations, sale was not promoted skillfully in most of the
Regions. The retailers in these regions have not taken appropriate efforts so as
to promote the promotional products skillfully.

59
 Recommendations
As already discussed above, there are certain issues and flaws associated with
Sales Promotion, so in order to implement it effectively and efficiently we would
like to suggest certain recommendations to the company:
Production department should make efforts to make available all of the product
varieties in the depot norm wise. So that each and every variety should be
available according to the generated order so as to meet the stock out problem.
I recommend strong coordination between production and the sales department.
So that a proper production forecast for each variety can be maintained by the
production department.
Proper allocation of the stock from the depot according to the Superstockists
contribution so that neither there is excess stock in one region nor stock outs in
other.
I also recommend to increase average number of lines so that all the SKUs (Stock
Keeping Unit) are available in the market.
Apart from setting overall target for all the SKUs (Stock Keeping Unit), there
should also be individual SKU wise target so that RPDs and UPDs are able to
make sales of unfamiliar products also.
To increase the sales margin the price value of the main brand should be relatively
higher i.e. around thrice of the Freebie for example instead of Rs10 pack of 50:50
150G Freebie Pepper Checker should be given with Rs15 pack of 50:50.
There should be a system from where different distributors can see the stock
position of company and as well of other distributors. It will help the distributor in
a way that if some distributors who wants the same.
Contests like MERA RPD MAHAAN should be held every quarter.

60
 CHAPTER 6

BIBLIOGRAPHY

Effective Planning in Marketing and Development Leslie Rae

World Class Marketing Kaye Thorne
Marketing in Practice Blackwell
Human Resource Management C.B.Gupta
Human Resource Management T.N.Chabra
Human Capital Journal

61
 CHAPTER 7
ANNEXURE

a. Questionnaire
1. Write down the first brand name that comes in your mind regarding biscuits?
……………………………………….
2.What others brands of biscuits can you recall?
a) ………………….. e)
……………………
b) ………………….. f).
……………………
c) ………………….. g).
…………………….
d) ………………….. h)
…………………….
3.What is the frequency of biscuits you take?
(Tick you prefer).
e) ………Once in a week b) ………Twice in a week
f) ………Thrice in a week d) ……….Any others
4.What brand do you have on occasions?
(Tick you prefer).
a) ………Parle G b) ………Parle
c) ………Sun feast d) ………Parle G

5.Which biscuits gets you best freshness?

(Tick your choice).
g) ………Mari Gold c) ………….. 50-50

62
 h) ……….Good Day d) …………… Krack Jack

6.Have you any complain about the biscuits?

(Just tick).
i) ……. Price to highd)…Non-availaParle G ity near by
j) ……. Dirty Rappers e) ………Shortage
k) ……. Bad quality f) ………Others reason
7.Which brand do you prefer mostly?
(Just tick).
a) ………Parle G b) ………Parle
c) ………Sun feast d) ………Parle G
8.Can you change your mind for others brand, if the brand is not
available in shop
which you prefer? (Just tick choice).
a) …….Yes
b) …….No

Classification Data
1. Name: - ………………………………………………………
2. Sex:- ……………Male ……………Female
3. Age: - ………………..
4. Occupation: - ………………………….
5. Income Group:-
…………5,000-10,000 ………….10,000-15,000
………..15,000-20,000. …………Above 20,000

63