Executive Summary

The report is an earnest endeavor made to understand the present market

scenario in biscuits captured by the Parle and the other competitor brands viz.,
Britannia, Priyagold, and ITC.
We are required to see the coverage by Parle Products Pvt. Ltd., and bring out
the potential and loyal retailers so that the company could maintain the market
leadership in the existing business scenario in the biscuits and the
confectionaries.
During the course of study we visited around 40 unorganized retail stores and
30 organized retail stores and analyzed all major brands of biscuits available as
well as studied the brands, which are most preferred among the retailers.
The study encompasses the penetration of the existing Parle products (biscuits
and confectionaries) and the market potential for the new products like Golden
Arch, Nimkin, Monaco Funion, Melody softee, Mazelo and Imli Bite.
Their motive was to study the working of the distributors in Mumbai market.
They have mentioned the problems and the loop holes in the Parle’s
distribution system and the promotional tools, which they have found during
the course of the study and recommended various corrective measures for it.
Their study also comprises the comparative analysis between organized and
unorganized retail stores in terms of brand availability with the help of
hypothesis testing.
They also studied the behaviour of consumers about their preferences for
biscuits, candies and their overall buying behaviour with the help of
questionnaire.

2
Statement of the Problem
To analyze the brands of Parle Products in unorganized retail stores:

1. As compared to competitors (ITC, Britannia & Priyagold).

2. As compared to organized retail stores.

Objectives of the Study

1. To find out Parle Coverage in various areas of Mumbai.

2. To check the Brand availability of the company products at different

stores.

3. To compare the Brand with its competitive Brands like ITC, Britannia,
Priyagold in terms of coverage, number of brands available and monthly
sales.

4. To analyze that which type of biscuits and candies are most preferred
and demand by the customer. It was done by asking storekeepers as well
as customer.
5. To analyze the availability of new Parle products launched in the
market.

6. To compare the organized retail stores with unorganized retail stores in

terms of brand availability.

3
Reference Period
This study is conducted for the period of 45 days starting from 12th of January
2010 to 5th March 2010.

PROJECT METHODOLGY

4
Research Type:

EXPLORATORY RESEARCH

EXPLANTION: The study was conducted by Parle Products Pvt. Ltd in 6-7
areas of Mumbai mentioned below (source list) for the first time regarding
market review and comparative analysis between unorganized and organized
retail stores.. Thus it is an exploratory type of research.

Sample Design
A sample design is a definite plan for obtaining a sample for a given
population. It refers to a techniques or procedure adopted in selecting items for
the sample.

Sampling:
Further, the design that has been adopted for the study of the given topic is
CONVENIENT SAMPLING.

EXPLANATION: During the course of the study we visited a no. of stores

that were scattered all over Mumbai (source list mentioned below). Apart from
this we had no written record of the number and names of the stores in the city.
It was very difficult to tabulate a record of all the retailers and wholesalers
present in the city and then carry out our study, in the short span of time that
was allotted. As a result we had to select the retailers according to our
convenience. We went to the areas and surveyed all shops that could possibly
be approached.

5
The following is the sample design that has been adopted for the study.

1. Population:- Finite(Mumbai)
2. Sampling Unit:- Areas of Mumbai
3. Source list:-

Unorganized retail stores (Areas):

a. Mansarover
b. Vaishali Nagar
c. Chitrakoot
d. Sodala
e. Raja park
f. Adarsh Nagar
g. Janta colony
h. Sethi colony
i. Bapu Nagar

Organized retail stores:

a. Spencer`s Retail
b. Reliance Retail (Reliance Fresh)
c. Aditya Birla (More)
d. Vishal Mega Mart

4. Sample size:- A total of 40 unorganized retail stores with 30 organized

retail stores and 50 consumers.

6
Tools and techniques for Data Collection
Tools and techniques for:

1. Primary Data:- The researchers collected primary data during the

course of research period with the help of the questionnaire that was
designed for the storekeepers as well as consumers to collect the
information that was required to carry out the research.
2. Secondary Data:- Secondary data was collected from books, articles,
Internet and previous research papers that had been conducted by the
company representatives and officials.

Tools and techniques of Analysis

Simple statistical tools and techniques like average, ratios, pie charts, tables
and graphs in addition to hypothesis testing (z-test, for difference between
proportions) & factor analysis method are used to analyze the data.

7
Limitations of the Study

1) The study was conducted in 45 days that is not enough for such a vast
topic.

2) It was difficult for the storekeepers to pinpoint the sales of a particular

brand in both organized and unorganized retail stores.

3) No proper data was available about the stores in the city.

4) There were not a big number of organized retail stores in Mumbai to

carry out the research more efficiently.

5) As the nature of research was exploratory so it was difficult to cover

each and every retailer.

6) Many retailers don’t express their original perception and views because
of biasness.

8
9
 INTRODUCTION

SECTOR
Fast moving consumer goods (FMCG), are products that are sold quickly at
relatively low cost, have a quick turnover and get replaced within a year.
Though the absolute profit made on FMCG products is relatively small, they
generally sell in large quantities, so the cumulative profit on such products can
be large. Examples of FMCG generally include a wide range of frequently
purchased consumer products such as toiletries, soap, cosmetics, teeth cleaning
products, shaving products and detergent, as well as non durables such as
glassware, light bulbs, batteries, paper products and plastic goods. FMCG also
includes pharmaceuticals, consumer electronics, packaged food products and
drinks, although these are often categorized separately. Some of the best known
examples of Fast Moving Consumer Goods companies include Clorox,
Colgate-Palmolive, General Mills, H.J. Heinz, Reckitt Benckiser, Sara Lee,
Nestle, Unilever, Proctor and Gamble, Coca Cola, Carlsberg, Kimberly-Clark,
Kraft, Pepsi, Warburton’s, Wilkinson and Mars.
Scope of the sector: The Rs 86,000-crore Indian FMCG sector is expected to
maintain its double-digit growth for the quarter ended March 31, 2009. Being a
sector led by domestic growth, it is least likely to be affected by the financial
meltdown. The FMCG industry is set to grow 20-30 per cent in 2009-10, up
from 10-20 per cent in 2008-09. The growth would be driven by the launch of
new products and increasing rural consumption. A well –established
distribution network, intense competition between the organized and
unorganized segments characterizes the sector.
The introduction of goods and services tax (GST) in Union Budget 2009 by
April 1, 2010, may help FMCG companies save on distribution costs, remove
multiple taxes and bring down prices in the long run.
Though the hike in minimum alternate tax from 10% to 15% would adversely

10
hit companies with factories in excise-free zones, they rule out increasing
consumer prices.

Retail sector: Retail became a buzz word in India before recession; in fact the
word 'booming' was found only attached to this sector. But as recession took

its toll, 99% of sectors went for a toss including retail. The market has just
started picking up and India is reclaiming to regain its position in the retail
segment.
In a recent report, the authors of AT Kearney's 2009 global retail development
index said that India's largely unmodernised retail sector remained attractive to
both domestic and international retailers, in spite of government regulations
that prevent 100 per cent foreign ownership of retail stores.
For most of the retailers like Pantaloon, Vishal, Cantabil and Priknit, retail still
continues to buzz everywhere in India with many foreign brands coming in,
whether it's the largest US retailer Wal Mart which opened its first store, last
month, in Punjab, in a joint-venture with Bharti Enterprises, Or Tesco and
Carrefour which are also planning joint venture stores.

Even as corporates are expecting the new Congress-led United Progressive

Alliance Government at the Centre to open up fully FDI in retail sector, a
Parliamentary Committee has argued for a total ban on even the domestic
heavyweight corporates from entering retail trade in grocery, fruits and
vegetables.

Also, there is expectation the forthcoming Union Budget may spell out a policy
position. Retail giant Ikea holding back its plans to enter India is being bandied
about as a setback for the country. There is also talk that investments and flow
of technical knowhow could be hampered if the sector is not opened up to
overseas.investors.

11
But over all if we see, the issue to be debated shouldn't be whether FDI in
organized retail is desirable, but what its impact would be on small retailers in
the unorganized sector, and whether we have policies to protect the vulnerable
sections.

It was meant to revolutionize the way we shopped, spent, consumed and lived.
With its ‘Retail Revolution’, India was making an indelible mark on the global
retail map. The billion plus consumers and steady economic development were
fuelling the growth of India’s $ 25 billion organized retail market. And the
Indian blue chip companies started to go the retailing way — Bharti, Reliance,
Tata, Mahindra, Aditya Birla Group and RPG — all were making the retail
foray. As the sector grew at the rate of 30-40% per annum over the last decade,
India became the preferred destination for global brands and retail chains to
cash in. But with the Q3 growth for FY2008-09 at 10-12% as against 35% of
the previous year accompanied with closures of Indian retailers, pulling out
from certain cities and the Subhiksha saga unfolding, the dismal story of
revolution is now unraveling.

Organised Retail Sector: It was meant to revolutionize the way we shopped,

spent, consumed and lived. With its ‘Retail Revolution’, India was making an
indelible mark on the global retail map. The billion plus consumers and steady
economic development were fuelling the growth of India’s $ 25 billion
organized retail market. And the Indian blue chip companies started to go the
retailing way — Bharti, Reliance, Tata, Mahindra, Aditya Birla Group and
RPG — all were making the retail foray. As the sector grew at the rate of 30-
40% per annum over the last decade, India became the preferred destination for
global brands and retail chains to cash in. But with the Q3 growth for FY2008-
09 at 10-12% as against 35% of the previous year accompanied with closures
of Indian retailers, pulling out from certain cities and the Subhiksha saga
unfolding, the dismal story of revolution is now unraveling.

12
INDUSTRY

Indian Biscuit Industry: According to Indian Biscuit Manufacturers'

Association (IBMA), after stagnating growth of about 14 per cent in 2006-07,
biscuit industry grew by 17 per cent in 2007-08 due to excise duty exemption
on biscuits with MRP up to Rs 100 per kg, Indian Biscuit Manufacturers
Association. ). Therefore, Indian biscuit industry has demanded a reduction in
value added tax to four per cent from the current level of 12.4 per cent on
biscuit, so that the growth rate can go up to 20 per cent.

The Rs 8,000-crore industry hopes that the biscuit segment will have over 20
per cent annual growth in the next five years if VAT is reduced to four per cent

India, world's third largest biscuit producer after the US and China, produces
nearly 19.5 lakh tonnes annually and the states, however, have imposed the
VAT at 12.5 per cent, which is very high.

According to IBMA, organised sector produces around 55% and the balance
45% being contributed by the unorganised bakeries. In terms of volume biscuit
production by the organised segment in 2006-07 is estimated at 1.47 million
tonnes. Per capita consumption of biscuits in the country is only 1.8 kg, as
compared to 2.5-5.5 kg in the South Eastern countries, and in Europe and US,
respectively.
In India per capita consumption of biscuits is estimated at a low 1.9 kg,
reflecting the huge potential for growth of the industry. Over 900 million
Indians buy and eat biscuits with varying frequency in any year.
The penetration of branded product in this segment is quite significant, and is
valued at Rs 2,500-3,000 crore. None of the other wheat-based segments is as
developed as the biscuits industry. The biscuit segment has developed with
large markets of mass consumption covering over 90% of the overall potential

13
market. The unorganised sector accounts for over 50% of the market. The
market has been growing at a CAGR of 6-7% pa.
Biscuit is a hygienically packaged nutritious snack food available at very
competitive prices, volumes and different tastes. According to the NCAER
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.

Bread and biscuits are the major part of the bakery industry. Biscuits stands at a
higher value and production level than bread.

India Biscuits Industry came into limelight and started gaining a sound status in
the bakery industry in the later part of 20th century when the urbanized society
called for readymade food products at a tenable cost. Biscuits were assumed as
sick-man's diet in earlier days. Now, it has become one of the most loved fast
food product for every age group. Biscuits are easy to carry, tasty to eat,
cholesterol free and reasonable at cost. States that have the larger intake of
biscuits are Maharashtra, West Bengal, Andhra Pradesh, Karnataka, and Uttar
Pradesh. Maharashtra and West Bengal, the most industrially developed states,
hold the maximum amount of consumption of biscuits. Even, the rural sector
consumes around 55 percent of the biscuits in the bakery products.
The annual production of biscuit in the organized sector continues to be
predominantly in the small and medium scale sector before and after de-
reservation.

Confectionary Industry

Production area
Besides the industrial areas in leading metropolis the bakery product &
confectionery are carried on small- scale basis also at household level.
Whereas, the confectionery industry has developed remarkably with the
international brand mingling with the domestic market toffees, chocolates

14
 etc. produced at large scale in important industrial regions of the country.

Growth promotional activities

In 1977- 78 Government reserved the confectionery bread and biscuit
manufacturing for small scale and restricted entry of large producers.
During the last 2 decades, small and unorganized players shared the growth
in the industry. Currently, there are an estimated 2 million bakeries across
the country engaged in production of bread, biscuits and other products The
Indian confectionery market is segmented into sugar-boiled confectionery,
chocolates, mints and chewing gums. Sugar-boiled confectionery,
consisting of hard boiled candy, toffees and other sugar-based candies, is
the largest of the segments and valued at around Rs 2,000 crore.

The confectionery industry has a current capacity of 85, 000 tonnes, the
market is growing at the rate of 10-15% per annum. The estimated annual
production of bakery products in India is in excess of 3 million tonnes, of
which bread accounts for nearly 50% and biscuits 37% in volume terms in
the organized sector. The bakery sector in India is one of largest segments
of the food processing industries; annual turnover in value terms is
approximately $ 900 million.
Types
Chocolates, hard-boiled sweets, chewing gum and other products are a
major growth area. The bakery industry includes basic baked products like
breads, biscuits, cakes, pastries, rusks, buns, rolls etc.

The Confectionery Industry in India was a closely held business potential for
several decades in the past predominantly driven by cost factors and limited
market and consumer perceptions. Confectionery product being an impulse
generated demand exercise was more dependent on trade push and intermittent
consumer pull thereby resulting in very narrow spectrum of brand activity. The
retail and market penetrations even today continue to be in the rural and semi

15
urban and urban markets where bulk of the sales activity takes place through B
and C class outlets. Confectionery being a child-oriented product, it is largely
sold by individual counts at the retail trade level. The potential child consumer
for this category of products in the past was largely influenced by the relevant
socio-economic factors and media explosions.

16
17
Organization

Parle Products Pvt. Ltd.: A cream colored yellow stripped paper with a cute
baby photo containing 10-12 biscuits with the company’s name printed with in
Red. Times changed, variety of biscuits did come and go but nothing has
changed with these biscuits. Yes, the size of their packing has definitely
changed but for the consumer good as these are money saver packs.
The Parle name conjures up fond memories across the length and breadth of the
country.
After all, since 1929, the people of India have been growing up on Parle
biscuits and sweets.
Initially a small company was set up in the suburbs 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 1939, .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.
For around 75 years, Parle have been manufacturing quality biscuits and
confectionary products. Over the years Parle has grown to become a
multimillion dollar company with many of the products as market leaders in
their category. The recent introduction of Hide & Seek chocolate chip biscuits
is a product of innovation and caters to a new taste, being India’s first ever
chocolate chip biscuits.
Apart from the factories in Mumbai and Bangalore Parle also has factories in
Bahadurgarh in Haryana and Neemrana in Rajasthan, which are the largest

18
biscuit and confectionery plants in the country. Additionally, Parle Products
also has 7 manufacturing units and 51 manufacturing units on contract.
All these factories are located at strategic locations, so as to ensure a constant
output and easy distribution.

Brands

An in-depth understanding of the Indian consumer psyche has helped Parle

evolve a marketing philosophy that reflects the needs of the Indian masses.
With products designed keeping both health and taste in mind, Parle appeals to
both health conscious mothers and fun loving kids. The great tradition of taste
and nutrition is consistent in every pack on the store shelves, even today. The
value-for-money positioning allows people from all classes and age groups to
enjoy Parle products to the fullest.

Biscuit goodies: Confectionary:

Parle-G GolGappa
Krackjack Classic Mint
Monaco Lite Mint
Monaco Funion Kismi
Kreams Orange Candy
Hide and Seek Mango Bite
Hide and Seek Milano Melody
Poppins
Eclairs- 50 p
Bourbon Melody Softe- 1Rs.
Kismi Bar
Parle Marie Chox
Kacha Mango
Milk Shakti Mazelo
Imli Bite
Kismi Gold
Parle 20-20 Cookies Munch on snacks:
Nimkin Musst Bites

Parle biscuits: Parle biscuits are linked with factors of power and wisdom
providing nutrition and strength. Parle biscuits are indeed much more than a
tea- time snack, they are considered by many to be an important part of their

19
daily food. Parle can treat you with a basket of biscuits which are not only
satisfying but are also of good and reliable quality. Parle biscuits cater to all
tastes from kids to senior citizens. They have found their way into the Indian
hearts and homes.

Parle G

For over 65 years, Parle G has been a part of the lives of every Indian.
From the snow capped mountains in the north to the sultry towns in the
south, from frenetic cities to laid back villages, Parle G has nourished
strengthened and delighted millions. Filled with the goodness of milk and
wheat, Parle G is not just a treat for the taste buds, but a source of strength
for both body and mind. Tear over a packet of Parle G to experience what
has nourished Generations of Indians since last sixty five years, making it
truly Hindustan Ki Taakat. Pack Sizes available: 16.5G, 38.5G, 60.5G,
82.5G, 99G, 209G, 313.5G, 418G, 825G

Krackjack

The original sweet and salty biscuit is one of the most loved biscuits in the
country.

20
It’s not just a biscuit, it’s the taste of relationships captured in a biscuit.
A little sweet and a little salty crafted in such a delicate and delicious
balance, you can never get enough of it. Have it anytime you like with
anything you like. Pack Sizes available: 75G, 170G, 240G

Monaco

Share the company of great taste anytime, anywhere with Monaco. A light
crispy biscuit sprinkled with salt, Monaco adds a namkeen twist to life’s
ordinary moments. Pack Sizes available: 75 G, 120 G, 240 G

Hide and Seek

The ingredients that go into making this prized cookie are a well-guarded
secret. What is is the effect it has on those who eat it. A cookie with a
reputation for romance. Indulge in the sinful taste of Milano and
everything that follows it. Pack Sizes available: 25 G, 62 G, 100 G, and
200 G

21
 Hide and Seek Milano

The ingredients that go into making this prized cookie are a well-guarded
secret. What is is the effect it has on those who eat it. A cookie with a
reputation for romance. Indulge in the sinful taste of Milano and
everything that follows it. Pack Sizes available: 65 G, 135 G

Kreams

Orange: Tickle your senses with Parle Orange Kream – The tangy orange
cream between two scrumptious biscuits makes for a real treat.
Age no bar! Pack Sizes available: 80 G, 90 G, 160 G, and 180 G

Parle Confectionaries: Right from candies to toffees, the sweet 'n' treat
category of the Parle product range is a genuine treat for every snack lover.
This category can satisfy one's taste and at the same time create a desire for
more. These confectioneries are a sheer delight to the taste buds and have a
universal appeal. Parle Biscuits and confectioneries, continue to spread
happiness & joy among people of all ages.

22
 Melody

Caramel meets chocolate to yield an outcome nothing less than delectable.

Parle Melody comes with an irresistible layer of caramel on the outside and
a delightful chocolate filling within. Pop it in your mouth and relish the
unique experience. It won’t be too long before you find yourself asking the
age old question ‘Melody itni chocolaty kyon hai?'

Mango Bite

Need a quick escape from everything ordinary? Just pop a Mango Bite and
dive into a tropical mango paradise. Sit back, roll it around and enjoy one
wave after another of juicy mango treats that go on and on and on.

Orange Candy

Feel like eating an orange but don’t want to be bothered with peeling one?
How about just unwrapping one then? Parle Orange Candy. This little

23
candy is a mouthful when it comes to the tangy, juicy taste of real oranges.
A bite-sized orange in a wrapper.

Kachcha Mango Bite

The glider got copied and became a jet plane. Western hits got copied and
became Anu Malik songs. The typewriter got copied and became a
keyboard. Similarly, we have managed to copy the tangy flavour of raw
mangoes in a candy which is a little sour, a little sweet and certainly a little
mischievous. We call it Kaccha Mango Bite. It truly is a ‘kacche aam ka
copy’.

Kismi Toffee

It’s everything that the Kismi Toffee Bar is, only smaller. Wrapped in the
distinct flavour of elaichi (cardamom) this toffee is sure to send your sweet
tooth on a joyride.

24
 Golgappa

Mention Golgappa to lovers of roadside snacks and watch them get

excited. Just the very memory of the sweet tangy taste of Golgappa is
enough to make the taste buds tingle, the mouth water and the senses to
party. Now imagine if you can have the Golgappa whenever and wherever
you want it, even as you are reading this, for example. It is possible with
Parle Golgappa. It captures the same magic of the popular street side
Golgappa in a Goli or a hard boiled candy, if you prefer. So pop in a
Golgappa and treat your senses to a fun filled trip, whenever and wherever.

Parle Snacks: Salty, crunchy, chatpata and crispy caters to the bunch of Parle
snacks. Parle snacks are a complete delight to the taste buds and can create the
desire for more and more. These snacks will not only satisfy your tummy but
will also sustain a feel in your mouth to associate you with the bond of Parle.

Musst Bites

Cheesy fluffy baked snacks that are so irresistible that you don’t want to
share them. Available in mouthwatering Garden Spices, sweet and sour

25
 Tangy Tomato, tantalizing Chatpata Chat and heavenly garden spices, you
are going to have a hard time deciding which one you want for yourself.

MAJOR BISCUIT PRODUCERS’S IN

RAJASTHAN
1) PARLE PRODUCTS PRIVATE LIMITED.

2) ITC SUNFEAST LIMITED

3) BRITANNIA

4) SURYA FOOD AND AGRO LIMITED (PRIYAGOLD).

PARLE PRODUCTS PRIVATE LIMITED

Many of the Parle products - biscuits or confectioneries, are market leaders

in their category and have won acclaim at the Monde Selection, since 1971.
With a 40% share of the total biscuit market and a 15% share of the total
confectionary market in India, Parle has grown to become a multi-million
dollar company. While to consumers it's a beacon of faith and trust,
competitors look upon Parle as an example of marketing brilliance. Parle G,
a premium glucose biscuit is the world’s largest selling biscuit.
A factory of these glucose biscuits is situated in Neemrana is producing
7000 metric tonnes every month. A list of premium quality biscuits and
confectioneries is produced and distributed across nations.

26
ITC LIMITED

ITC is one of India's foremost private sector companies with a market

capitalization of nearly US $ 18 billion and a turnover of over US $ 4.75
billion. ITC has a diversified presence in Cigarettes, Hotels, Paperboards &
Specialty Papers, Packaging, Agri-Business, Packaged Foods & Confectionery,
Information Technology, Branded Apparel, Personal Care, Stationery, Safety
Matches and other FMCG products. ITC's diversified status originates from its
corporate strategy aimed at creating multiple drivers of growth anchored on its
time-tested core competencies: unmatched distribution reach, superior brand-
building capabilities, effective supply chain management.

BRITANNIA

By 1910, with the advent of electricity, Britannia mechanized

its operations, and in 1921, it became the first company east of the Suez Canal
to use imported gas ovens. Britannia's business was flourishing. But, more
importantly, Britannia was acquiring a reputation for quality and value. As time
moved on, the biscuit market continued to grow… and Britannia grew along
with it. In 1975, the Britannia Biscuit Company took over the distribution of
biscuits from Parry's who till now distributed Britannia biscuits in India. In the

27
subsequent public issue of 1978, Indian shareholding crossed 60%, firmly
establishing the Indian ness of the firm. The following year, Britannia Biscuit
Company was re-christened Britannia Industries Limited (BIL). Four years
later in 1983, it crossed the Rs. 100 crores revenue mark.

SURYA FOOD AND AGRO LIMITED

The wondrous magical journey of the company Surya Food & Agro Ltd. began
in Oct. 1993 & since then The Researchers have been one of the leading
manufacturers of biscuits in northern India. Our brand “PRIYAGOLD” has
been a perennial household favorite since then. On a profound level spread in
to western as well as southern India, the inevitable cycle of distribution
network has helped us to spread into western India as well. Our obsession is to
make the finest quality biscuits available to the consumers & our constant
endeavor is to provide our consumers, a palate to look forward to a taste &
flavor that is uniquely “PRIYAGOLD”.

28
29
 .ANALYSIS

After visiting the PARLE factory for preparing a research project we analyzed
that the best selling branded biscuit company offers its customers with large
variety of biscuits (parle-g, krack-jack, Monaco, hide and seek etc.),
confectionaries (mangobite, melody, poppins) and snacks (Musst bites)

It aims “TO SERVE PEOPLE AND NATION”

The privately owned self financed company provides motivation and

confidence to its staff and other related members by providing various facilities
and organizing certain events. It has a very open work culture. The atmosphere
is so comfortable and relaxed that helps in increasing productivity and
efficiency. It lunches and outstation team-building exercises that augment inter-
personal relations and mutual understanding.

Parle has found its way into the Indian hearts and home. It spreads happiness
and joy among the people of all ages.

As one comes to visit their plant, they welcome them whole-heartedly and
cooperate with them in the best way they can. They are the strict followers of
Japanese culture.

30
 1. Analysis of unorganized retail outlets
1.1 Coverage of the company

Table 1.1.1
BRAND Direct Indirect No Coverage
PARLE 367 43 0

Chart 1.1.1

Interpretation:

Parle covers all the retail outlets under study and 90% were under direct
coverage i.e salesman of Parle distributor (of that area) visits weekly on these
stores. Rest 10% outlets source the Parle products either from wholesaler or
any other retail outlet.

31
1.2 Categorization of retail outlets based on PARLE sales

Table 1.2.1
NO. OF
CATEGORY % SHARE
OUTLETS
CATEGORY ' A ' (No Coverage) 0 0.0

CATEGORY ' B ' (1-5000) 230 56.1

CATEGORY ' C ' (5001-10000) 99 24.1

CATEGORY ' D ' (10001-15000) 33 8.0

CATEGORY ' E ' (15001-20000) 18 4.4

CATEGORY ' F ' (>20000) 30 7.3

Chart 1.2.1

32
Interpretation:-

The above pie chart shows the classification of retail outlets present in areas
under study. The categorization is made on the basis of monthly sales of Parle
products by the retailers and the whole sellers. It has been divided into 6
categories mentioned above.
There are no “A” category outlets as Parle covers all the Retail outlets under
study whereas category “B” has highest share of 56% with 230 outlets and
most of total retail outlets fall under Category “B” & Category “C” (80%)
visited by the Researchers here.
It can be seen that only 7% outlets fall under category “E” i.e greater than
20000 Rs

1.3 Visibility of PARLE products

For Biscuits:

Table 1.3.1
BRAND (Biscuits) No. of shops Total % VISIBLE
Parle-G 410 410 100.0
Krackjack 385 410 93.9
Monaco 394 410 96.1
Monaco Funion 75 410 18.3
Hide&Seek 255 410 62.2
Milano 85 410 20.7
Orange Kream 330 410 80.5
Mango Kream 388 410 94.6
Elachi Kream 393 410 95.9
Pineapple 381 410 92.9
Chocolate Kream 377 410 92.0
Golden Arch 35 410 8.5
Nimkin 101 410 24.6
Marie 198 410 48.3
Milk Shakti 185 410 45.1
Bourbon 210 410 51.2
20-20 Butter 340 410 82.9
20-20 Cashew 332 410 81.0

33
 Chart 1.3.1

Interpretation:-
Brands such as Parle G, Krackjack, Monaco, Orange Kream, Mango Kream,
Pineapple Kream, Chocolate Kream, Elaichi Kream are visible in almost all
stores (90-100 %) but brands such as Monaco Funion, Golden Arch & Nimkin
were not available in many stores.

34
For Confectionary:

Table 1.3.2

BRANDS (Confectionary) No. of shops Total % VISIBLE

GolGappa 258 410 62.9
Classic Mint 136 410 33.2
Lite Mint 108 410 26.3
Kismi 222 410 54.1
Orange Candy 300 410 73.2
Mango Bite 337 410 82.2
Melody 352 410 85.9
Poppins 222 410 54.1
Eclairs- 50 p 168 410 41.0
Melody Softe- 1Rs. 146 410 35.6
Kismi Bar 165 410 40.2
Chox 155 410 37.8
Kacha Mango 177 410 43.2
Mazelo 160 410 39.0
Imli Bite 97 410 23.7
Kismi Gold 45 410 11.0
Musst Bite 43 410 10.5

35
 Chart 1.3.2

Interpretation:-

The brands such as Orange Candy, Mango Bite & Melody have good
availability but Kismi Gold and Musst Bite are rarely available .

36
1.4 New Products Visibility
Table 1.4.1
BRANDS
Available Not Available Total % VISIBLE
(Confectionary)
Nimkin 101 309 410 24.6
Golden Arch 35 375 410 8.5
Melody Softe- 1Rs. 146 264 410 35.6
Mazelo 160 250 410 39.0
Imli Bite 97 313 410 23.7

Chart 1.4.1

Interpretation:

The newly introduced biscuit brand Golden Acrh was available in only 8.5
% retail outlets which is a very low figure. And Nimkin was present in only
25 % outlets.
It appears that demand for their confectionary brands is increasing as they
were present in considerable amount.

37
1.5 Coverage with respect to competitors

Table 1.5.1
BRAND Direct Indirect No Coverage
PARLE 367 43 0
ITC 308 21 81
BRITANIA 305 27 78
PRIYAGOLD 281 26 103

Chart 1.5.1

Chart 1.5.2

Chart 1.5.3

38
 Chart 1.5.4

Chart 1.5.5

39
Interpretation:

Among the competitors only Parle covers most of the outlets (90%) directly,
rest covers approx. 70-75 % of outlets directly. Also ITC, Britannia &
Priyagold has no presence in approx. 20-25 % outlets but Parle full coverage.
This is the strength of Parle Company.

1.6 Brand availability with respect to competitors

40
 Table 1.6.1
BRAND No. of Brands
Nil 1 to 5 6 to 10 11 to 15
PARLE 0 20 88 302
ITC 81 227 85 17
BRITANIA 78 193 99 40
PRIYAGOLD 103 112 144 51

Chart 1.6.1

Chart 1.6.2

41
 Chart 1.6.3

Chart 1.6.4

Chart 1.6.5

Interpretation:-

42
Parle in addition to a big share of direct coverage also has74% of outlets where
11 to 15 brands are present as compared to competitors viz ITC, Britannia &
Priyagold having 4%, 10% & 13% respectively. Priyagold although has less
coverage (75%) than competitors but where present were in good variety i.e
35% outlets has 6 to 10 brands compared to Parle (21%), ITC (21%), and
Britannia (24%).

43
1.7 Sales comparison with competitors

Table 1.7.1
Parl ITC No. of Priya
No. of No. of No. of Britan
e% % outlets gold
Category outlets outlets outlets nia %
SHA shar (Priya %sha
(Parle) (ITC) (Brit) share
RE e gold) re
'A' (No
0 0.0 81 19.8 78 19.0 103 25.1
Coverage)

'B' (1-5000) 230 56.1 194 47.3 179 43.7 225 54.9

'C' (5001-
99 24.1 85 20.7 91 22.2 29 7.1
10000)
'D' (10001-
33 8.0 31 7.6 23 5.6 39 9.5
15000)
'E' (15001-
18 4.4 13 3.2 21 5.1 9 2.2
20000)
'F'
30 7.3 6 1.5 18 4.4 5 1.2
(>20000)

44
 Chart 1.7.1

Interpretation:-

It can be seen that in most of the outlets (56%) Parle sales come under category
“B” as compared to other categories. Compared to competitors the company tops
Category “B”. Company share in Category is also far higher than that of
competitors. So, every company has sales of 1-5000Rs in 50 % outlets

1.8 Ranking of Biscuits

Table 1.8.1
Sweet and
Rank Glucose Cream Cookies Salty Marie
salty
1 307 60 5 9 3 26
2 71 289 4 25 1 20
3 17 56 1 157 18 161
4 14 2 0 119 97 178
5 1 0 41 88 256 24
6 0 3 359 12 35 1

45
Chart 1.8.1

46
Interpretation:
Rank one is dominated by Glucose biscuits, Rank two by Cream biscuits, rank
three by Marie and Salty biscuits both, rank four by Marie Biscuits but there is a
close match between salty and sweet and salty, rank five by Sweet and Salty
Biscuits and rank six by Cookies. So, lease demand is of cookies in unorganized
retail stores.

2. Analysis on organized retail outlets

2.1 Parle Sales in Organized Retail

Table 2.1.1
No. of outlets
Category Sales
(Parle)

No coverage 0 0

'A' 1-15000 1
'B' 15001-30000 10
'C' 30001-44999 11
'D' >=45000 8

47
 Chart 2.1.1

Interpretation:-

It can be seen that 35% of outlets have Parle sales between 30,000Rs and 45,000
Rs which is a very good indication. And 27 % outlets have Parle sales above
45,000 Rs

2.2 Parle Sales with respect to competitors in organized retail outlets

Table 2.2.1
No. of No. of No. of No. of
Category Sales outlets outlets outlets outlets
(Parle) (ITC) (Brit) (Priyagold)

No coverage 0 0 4 0 5

' A' 1-15000 1 5 2 5

15001-
'B' 10 20 5 18
30000
30001-
'C' 11 5 14 2
45000

48
 'D' >45000 8 4 9 0

Chart 2.2.1

Interpretation:

In organized retail outlets Britannia beats Parle in Category “C” (30001-45000).

And this is because Parle products are cheaper as compared to Britannia and so
sales are high.

49
2.3 Parle Visibility in organized retail outlets

Table 2.3.1
BRAND (Biscuits) No. of shops Total % VISIBLE
Parle-G 30 30 100.0
Krackjack 30 30 100.0
Monaco 30 30 100.0
Monaco Funion 19 30 63.3
Hide&Seek 24 30 80.0
Milano 11 30 36.7
Orange Kream 23 30 76.7
Mango Kream 29 30 96.7
Elachi Kream 29 30 96.7
Pineapple 27 30 90.0
Chocolate Kream 25 30 83.3
Golden Arch 10 30 33.3
Nimkin 17 30 56.7
Marie 30 30 100.0
Milk Shakti 24 30 80.0
Bourbon 26 30 86.7
20-20 Butter 28 30 93.3
20-20 Cashew 28 30 93.3

50
For Biscuits:
Chart 2.3.1

Interpretation:

Parle-G, Krackjack, Marie, Monaco have 100% visibility. Among the cream
biscuits, Mango and elaichi were available in most outlets (97%). Parle 20-20
brands were also visible 93% of the outlets. Golden Arch and Milano were present
in very less number of outlets (37% and 33% respectively).

51
For Confectionary:

Table 2.3.2
BRANDS (Confectionary) No. of shops Total % VISIBLE
GolGappa 23 30 76.7
Classic Mint 15 30 50.0
Lite Mint 13 30 43.3
Kismi 19 30 63.3
Orange Candy 23 30 76.7
Mango Bite 23 30 76.7
Melody 29 30 96.7
Poppins 22 30 73.3
Eclairs- 50 p 21 30 70.0
Melody Softe- 1Rs. 17 30 56.7
Kismi Bar 17 30 56.7
Chox 12 30 40.0
Kacha Mango 22 30 73.3
Mazelo 10 30 33.3
Imli Bite 7 30 23.3
Kismi Gold 8 30 26.7
Musst Bite 8 30 26.7

Chart 2.3.2

52
Interpretation:

Melody tops (97%) among the confectionary brands in visibility factor. Hard
boiled candies such as Golgappa, Orange candy, Mango Bite, Poppins, Kaccha
Mango and éclairs have good visibility (Approx. 73-77%). But Melody softee,
Kismi Bar has 57% visibility. Mazelo, Imli Bite, Kismi Gold have very low
visibility. Parle`s snack product Musst Bite is also having very low visibility of
27%.

53
 3. Analysis on Consumer Behaviour
3.1Type of biscuits preferred
Table 3.1.1
Biscuit Preferred No. of consumers(out of 100)
Glucose 38
Salty 08
Sweet and Salty 15
Kreams 25
Cookies 14

Chart 3.1.1

Interpretation:-

The above graph shows the types of biscuits preferred by the consumers. Glucose
is most preferred (38) by the consumers followed by kreams (25). Whereas Salty
(8) holds the last position

54
 4.1 Type of confectionary preferred

Table 3.2.1
Candies No. of consumers
Hard boiled candy 34
Eclairs 27
Mint 9
Bubble gum 12
Bars 18

Chart 3.2.1

Interpretation:-

The above graph shows the types of candies preferred by the consumers. Hard
boiled candies like golgappa, kacha aam got the highest position followed by
éclairs and then bars. Mint got the least preference.

55
 4.2 Preference between organized and unorganized retail stores to buy
biscuits and confectionary

Table 3.3.1
Type of Store Sales
Unorganized retail (Kirana) stores 76
Org. retail stores 24

Chart 3.3.1

Interpretation:-

The above pie chart shows the place from where people prefer to buy biscuits and
confectionary.
The study shows that 76% of people prefer to buy them from general kirana stores
whereas 24% people prefer to buy from organized retail stores like spencers, Big
bazaar or Reliance fresh.

56
 4.3 Preference for the biscuit company

Table 3.4.1
Company No. of consumers
Parle 48
Britannia 27
Priyagold 7
Itc 18

Chart 3.4.1

Interpretation:-

The above pie chart shows the preference of consumers for biscuit company. The
result shows that PARLE got the highest position followed by BRITANNIA and
then ITC. PRIYAGOLD got the least preference by the consumers.

57
 4.4 Preference to factors (Taste, Price & Brand image)

Table 3.5.1

Rank Taste Price Brand Image

Rank1 96 2 2
Rank2 4 39 57
Rank3 0 59 41
Chart 3.5.1

4.5 Preference according to taste

58
 Table 3.6.1
Ra Brit Priya
nk Parle annia Itc gold
ra 9
nk1 41 33 17
ra 9
nk2 33 39 19
ra 35
nk3 21 16 28
ra 47
nk4 5 12 36

Chart 3.6.1

INTERPRETATION: - The scores of rank1 are multiplied by 1, the scores of

rank2 by 2 and so on. And the sum of all the ranks for the given companies is
summed up to get the total scores.
As Parle has got the minimum total, therefore it can be infer that consumers prefer
Parle most when it comes to taste followed by Britannia and then ITC. Priyagold
is least preferred by the consumers.

59
 4.6 Preference according to price

Table 3.7.1
Rank Parle Britannia ITC Priyagold
rank1 42 16 11 31
rank2 29 20 15 36
rank3 17 33 27 23
rank4 12 31 47 10

Chart 3.7.1

INTERPRETATION: - Here Parle is the prime choice of consumers when price

is given preference followed by Priyagold and then Britannia. ITC is least
preferred by consumers in the case of price.

60
 4.7 Preference according to brand image

Table 3.8.1
R Bri Pr
ank Parle tannia Itc iyagold
r 28 39 19 14
ank1
r 32 36 21 11
ank2
r 23 19 31 27
ank3
r 17 6 29 48
ank4

Chart 3.8.1

INTERPRETATION: - As Britannia has got the minimum total, therefore it is

preferred most by the consumers followed by Parle and then ITC. Priyagold is
least preferred by the consumers in case of brand image.

61
62
 SWOT ANALYSIS OF PARLE PRODUCTS
STRENGTH
1. Low price as compared to
competitors
2. Sizeable market share in the
country.
3. Offers variety of products
under its brand.
4. Different sizes of packets are
available.
5. An experienced team of sales
and marketing executives.
6. Deep and effective coverage
7. Largest distribution system.
63
WEAKNESS
1. Breakage of biscuits while
delivering to retailers
2. No proper replacement
system for broken biscuits to
retailers
3. Improper and irregular
supply.
4. Fewer shares in Premium
biscuit market.
5. Dependent on its flagship
brand, Parle-G
6. Poor packaging in family
pack of glucose biscuits.
7. Lack of schemes for retailers
and distributors.
 OPPORTUNITY
1. Rising demand for innovative
packaging in packaged foods.
2. Retaining loyal retailers or
wholesalers.
3. Improving supply system for
established brands.
4. Huge scope for some Parle
products in medical shops.
5. Information revolution brought
about by the television.
6. Good scope for snacks and
namkeens, if launched and
properly promoted by Parle.
64
THREAT
1. Highly advertised brands such
as Britannia.
2. Ever increasing competition
from multinationals and local
companies.
3. Increase in sale of cheap local
bakery products.
4. Emerging substitutes like
wafers, snacks and toast.
5. Margin war among the major
Brands
FINDINGS

After close study of the present market situation prevailing in the areas assigned
the researchers, following are the observations.

1. Availability of all the products is not uniform in all the towns. For instance,
the supply is not meeting the demand in particular areas or shops.
2. Golden Arch and Nimkin, newly launched products, have very less
availability.
3. Breakage problem in the Family packs of glucose biscuits is leading to the
decline in sales in this category.
4. Schemes, Discounts, offers, coupons etc. are not reaching to the retailers
and customers whereas Priyagold and ITC on the other hand are doing that.
5. Retailers and even wholesalers are not satisfied with the supply system of
Parle.

65
6. It was found that Parle (especially Parle- glucose) is most favored brand
and is sold most. Parle biscuits are the retailers and consumers prime
choice.
7. Very little range of Parle biscuits were visible in organized retail outlets.
8. Musst bites are not accepted by the general masses due to its dissatisfying
taste.
9. Lack of marketing efforts for the promotion of new products like Golden
Arch, Nimkin.
10. Britania is emerging as Major Competitor in the organized retail outlets.

66
RECOMMENDATIONS & SUGGESTIONS

1. Company should start a program for the loyal retailers and wholesalers to
reduce their complaints by providing timely supply and replacement. This
will help in increasing their sales.
2. The packaging of Parle Glucose biscuits (1/2 and 1 kilogram packs) must
be improved for its better sales. The company should come up with double
packaging as people refuse to buy family pack biscuits with loose
packaging.
3. Salesmen should be properly dressed and should have good communication
skills to effectively promote the new products recently launched, by making
sure that the product reaches each and every retailer and also increase the

67
 visibility of the products by arranging the product clearly on the shelf or
rack and show its prominence.
4. To increase the number of stock keeping units {SKU} available in the
retailers store. Each salesman should stress the retailers to keep the
maximum SKUs and to maintain these SKUs throughout. With this, the
replacement of the damaged and expired biscuits should be prompt and
without any hassles, so that retailer can be saved from the loss of the
expired and damaged goods.
5. Company should adopt innovative packaging techniques, as they have their
own packaging unit as consumers are highly attracted towards new
packaging.
6. The company should take proper measures that the schemes and offers are
not gulped by the middlemen, and that it benefits the retailers and
customers.

68
After conducting the survey of unorganized retailers, organized retailers and
customers, we found that there is a bigger market for biscuits and hard boiled
candy in unorganized retail stores if proper supply of goods without breakage is
there.

We also concluded that Parle is the first preference of both the customers and
retailers (Organized and unorganized both) because of its price and brand image.

Brand Parle G dominates the volume-dominated biscuit market. Even in today’s

times when multinationals are beefing up their operations and trying to change the
dynamics of the market, Parle G’s numero uno position is unchallenged. Its

69
competitors have roped in superstars like King Khan and Sachin Tendulkar, but
Parle G has only gone from strength to strength. Brand Parle G is iconic and has
evolved over the years. Trust, relevance, affordability are its hallmarks, which
have withstood pressures from the hyper-competitive marketplace.

The Parle Biscuit brands, such as, Parle-G, Monaco, Krackjack, Marie Choice,
Hide & Seek and confectionery brands, such as, Melody, Poppins, Mangobite
enjoy a strong imagery and appeal amongst consumers across the world. Which
has resulted into Parle-G being the “world’s largest selling biscuit".

The Parle name symbolizes quality, health and great taste. Constantly innovating
and catering to new tastes PARLE-G has built its reputation. This can be seen
from the success of its new brands such as Mazelo, Imli Bite etc.

Parle Products Pvt Ltd., is now lagging in services to retailers because of improper
supply and distribution in some areas and competitors taking advantage of these
points.

70
71
 Questioner
NAME:-

AGE:-

PHONE NO.:-
__________________________________________________________

1) How many members are there in your family?

Ans-

2) Who initiates the shopping of groceries in your family?

a) Male members b) Female member c) children/teenager
Ans.

3) From where do you prefer to buy biscuits?

a) Kirana store
b) Organized retail market (Like Reliance fresh, Spencer, Big Bazaar, etc.)
Ans. (If answer is b please mention the name of retail chain)

5) Which biscuits do you prefer?

a)glucose b)salty c)sweet and salty d)Creams e)cookies
Ans.

6) What type of confectionary does you like the most?

a)hard boiled candy b)éclairs c)mint d)bubble gum e)bars
Ans.

8) Which brand do you prefer most?

a)PARLE b)BRITANNIA c)PRIYAGOLD d)ITC Sun feast e) Other
Ans.

10) Rank the factors in order of preference when buying a biscuit??

Taste Price Brand image

11) Rank the following out of 5 in respect to the given factors

FACTORS PARLE ITC BRITANNIA PRIYAGOLD

Taste
Price
Brand image

72
Retailer Survey:

73
Locality :
Name of Outlet :
Address :
Contact No. :
Parle Detail :
Frequency : Weekly / Fortnightly
YOUR
OWN
INNOVA
Brand Representation : TION
Y/N Y/N
Parle-G GolGappa
Krackjack Classic Mint
Monaco Lite Mint
Monaco Funion Kismi
Hide&Seek Orange Candy
Milano Mango Bite
Orange Kream Round /Rectangle Melody
Mango Kream Round /Rectangle Poppins
Elachi Kream Round /Rectangle Eclairs- 50 p
Pineapple Round /Rectangle Melody Softe- 1Rs.
Chocolate Kream Round /Rectangle Kismi Bar
Golden Arch Chox
Nimkin Kacha Mango
Marie Mazelo
Milk Shakti Imli Bite
Bourbon Kismi Gold
20-20 Butter Musst Bite
20-20 Cashew Parler Sales
Competitor Information:
Direct Covrage : ITC:
Britania : PriyaGold:
Frequency : ITC:
Britania PriyaGold:
No. of Brand available ITC:
Britania PriyaGold:
Sales per Month : ITC:
Britania PriyaGold::
Which Category of Biscuits Sales
More ( Give Ranking )
Glucose Cream Cookies Salty
Sweet & Salty Marie
BIBLIOGRAPHY

I. VIRJI VALJI AND CO. (Mumbai)

II. Reference Book: PHILIP KOTLER & KELLER KEVIN LANE
III. Websites:

74
Google search: (www.google.com)

Wikipedia search: (www.wikipedia.com)

www.parleproducts.com
www.scribd.com

75