CHAPTER SCHEME

CHAPTER TITLE

CHAPTER -1 INTRODUCTION

CHAPTER-2 LITERATURE –REVIEW

CHAPTER-3 RESEARCH DESIGN

CHAPTER-4 DATA ANALYSIS

CHAPTER-5 FINDINGS CONCLUSIONS

RECOMMENDATIONS

CHAPTER-6 BIBLIOGRAPHY
Introduction:-
In My research i targeted to study the problem i.e. –
“Why the Parle-G is no. 1 in glucose biscuits segments”
which formulation is related to relationship between variables like
Why people buy Parle-G, Do ads impact in consumption of consumer, also brand
representation of parle product in unorganised retail store as compare to competitors
(Britannia) as compared to organised retail store.

Various people have various reasons to consume it, some consume it for the value it offers
while others consume it for sheer taste, and for some it is a meal substitute for others it is a
tasty healthy nourishing snack. Campaign that was launched by Parle for Parle-G was - ’G’
means “GENIUS”. For this a series of ads were shown in which a little kid eats Parle G and
tricks the wise and experienced people. Just a few months back are minder TV commercial
was launched for Parle-G where the product is being called
‘Hindustan ki takat’ 

About Parle
Parle Products has been India's largest manufacturer of biscuits and confectionery, for
almost 80 years. Makers of the world's largest selling biscuit, Parle-G, and a host
of other very popular brands, the Parle name symbolizes quality, nutrition and great
taste. With a reach spanning even there motest villages of India, the company has definitely come a
very long way since its inception.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 a15% 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, competi tors look upon Parle as an example of marketing
brilliance.

Challenges faced by PARLE-G:-

Increase price of basic raw material like sugar ,wheat ,milk powder
PARLE-G is very price sensitive products
Small increase in price (by 50 paise) in past had seen high declines in sales
Even though the parle is market leader segment ,other also trying to capture the chunk of
market share

Current problem faced by PARLE-G:-

If Parle has to make a noise in the market, it is also because of the presence of two
formidable rivals in the glucose segment — Britannia and ITC. As of June 2012, Nielsen data
indicates the former had a share of 8.7% and ITC 8.3%. Parle still rules the roost with a
79.4% share, but with both the competitors armed with deep pockets, the battle is going to
rage on for some time to come.

Parle-G facts:-

If a month's production of Parle-G biscuits are stacked side-by-side, the distance between
Earth to Moon of 7.25 lakh kms can be covered.

400 million Parle-G is produced daily.

1 billion packs of Parle-G are produced monthly.

Parle-G biscuits are sold in more than 5 million retail stores.

4,551 Parle-G biscuits are consumed per second.

If all Parle-G biscuits consumed annually are put end-to-end, they would cover the Earth's
circumference 192 times.
 
Parle-G sells more than all the biscuit brands sold in China which is the fourth largest biscuit
market in the world.

Research Goal:-
My Research goal is to study about the attributes which make Parle-G no.1 biscuits in glucose biscuits
segment, for which I will be making a questionnaire and selected a sample size of atleast 45
people that is a sampling base technique for which i have set a questi onnaire of
21 questi ons which is done on the basis of structured (closed ended) interview and also
to find out which factors affect the growth of Parle-G, also to study the consumer behaviour of people
towards parle-g. also I have visited organised and un organised retail store in Mumbai to find out that which
biscuits brand is the all time favourite to consumer.

Limitations of the Study:-

1) The study was conducted in 30 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) As the nature of research was exploratory so it was difficult to cover each and every retailer.

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

6) survey done with my classmate can be bias about particular brand.

Limitation of PARLE-G:-

SWOT –ANALSIS OF PARLE – G:-

Strengths in the SWOT analysis of Parle – G

Popular Brands: Parle owns some of India’s most popular brands like Parle –G, Hide & Seek, Melody,
Poppins, and Kacha Mango Bite. Parle Agro another division of the conglomerate owns the popular
mango drink Frooti.

Indian connection: Most of the players in the food segment are multinationals who hardly
connect to the Indian sentiments not understand the local tastes. Parle which has been in the
business from the year 1929 has been deeply connected to Indian customers and know their tastes
really well.

Customer Satisfaction: Through the taste, quality and texture of the products that they sell
Parle have been able to satisfy customers across India. Most of their products are household names
today.

The desi image: Right from Parle –G the company has always depended on its desi image to sell
its products. Their advertisement campaigns are always focused on showcasing Parle – G as a brand
that is connected to the patriotic sentiments of India. Many of their products such as the Kacha
Mango Bite or Frooti have been developed to suit Indian taste buds.
Pricing: Parle Products were primarily catering to the economy segment and their signature
products Parle – G was sold at al less as INR 5. As competition increased the company also started
launching more products which are priced higher and cater to premium segments such as
cheeselings of the Parle G – Gold.

Weaknesses in the SWOT analysis of Parle – G

 Premium segment: Parle’s products have always catered to the economy segment

through their signature product Parle –G. However with increased competition from
Britannia and ITC the company is trying to move into the premium segment which is
proving to be a huge challenge.
 Too many product launches: Parle Products have been launching too many products
in the mast year especially in the premium category with the result that customers are
getting confused for choice. In a matter of 24 months, they have launched almost 18
different variants of different brands. The repeated product launches are proving to be
costly for the company.
 A balance between economy and premium segments: Parle has always
been targeting mass markets in the confectionery segment through Parle – G. However,
with more disposable income and preference for western tastes the Indian consumer have
started preferring the premium biscuits. This is creating a difficulty in balancing the economy
and premium category and this is causing even brand confusion in the mind of the
customer.
 Fluctuating raw material costs: The raw material costs are fluctuating excessively
there is the shortage of many of the ingredients. The prices, however, are to be kept at the
lowest possible levels since the margins are low.

Opportunities in the SWOT analysis of Parle – G

 Increased tendency for snacking amongst Indians: Indians have started

preferring more snacks and they also consume snacks like biscuits and namkeen even during
breakfast and tea time. This increases the scope for introducing more snacks into their
product portfolio.
 Steep growth potential in emerging economies:  The countries like China and
India are seeing a rebirth of trends that were once considered hot in the West. This is
expected to create a surge in the demand for snacks and confectioneries. 

Threats in the SWOT analysis of Parle – G

 Stiff competition: In addition to multinationals like Procter & Gamble, Nestle, and
Unilever, Parle Products are also facing competition from Indian players like
Brittania, ITC etc.
  Government policies: The government introduced financial reforms like the GST
which has escalated the average costs of the company. Demonetisation also created
a lot of turbulence in the business sector.

SWOT-ANALYSIS OF BRITANNIA:-

Strengths in the SWOT analysis of Britannia

 Brand portfolio: Britannia is the only company in India that has offerings in bakery
products across the segment for all income groups due to which it’s possible for
them to acquire large share of wallet of consumers. Britannia holds nearly 30%
market share in the India’s biscuit category.
 High Brand Recall: Because of its presence across range of bakery products like
biscuits, rusk, cakes & dairy products like milk, butter & cheese etc., their shelf
visibility is high. Also their focused marketing & advertising campaigns resulted into
positive word of mouth & high TOMA (top of mind awareness).
 Serving Indian Markets from last 120 years: 123 years ago, in a small house in central
Calcutta (now Kolkata) an intrepid baker made a batch of delicious, golden brown
biscuits. These were meant for officers of the British Raj and their
families, people used to the high standards of English tea-time snacking. Over the
last century and a quarter, Britannia has been serving the Indian consumer with a
range of fresh, nutritious and flavor-rich products. Today, Britannia is a leading food
company in India with over Rs. 6000 crores in revenues, delivering products in over 5
categories through 3.5 million retail outlets to more than half the Indian population.
 In depth product portfolio: It has different offering for different income groups with
large assortments across the product categories like in Biscuits they have tiger ,milk
bikis , Good day, Bourbon ,little hearts, crackers , nutria-choice.
 Market Penetration and distribution: Being present in the market with such large
SKU’s and making it available through its robust distribution system, Britannia has
penetrated to every nook & corner of the country.
 Market Leader in bakery: Britannia Industries Limited (BIL) is a major player in the
Indian Foods market with leadership position in Bakery category and has a market
share of ~ 30% in the industry. Britannia offers both delightfully indulgent and
healthy choices in biscuits, bread, cake, rusk and a range of dairy products that
include cheese, curd and specially formulated functional beverages with a dairy
base.

Weaknesses in the SWOT analysis of Britannia

 Over dependency on the biscuit business:  Britannia’s 75% revenue comes from
biscuit business. Although they are market leader in the same but over dependency on the
same may affect their long term existence in the business.
 Various brands got commoditized over time:  Brands like Bourbon & glucose
biscuits of Britannia got commoditized over time such as in case of “bourbon”, Parle also
introduced “Parle bourbon” biscuits. Brand name when used like this by other
companies, creates confusion in the mind of the consumers resulting in loss of sale.
 No overseas presence: Apart from India Britannia have presence in Dubai & Oman that
too through subsidiaries. But overall export of the products is very less then its actual
potential.
 Struggling dairy business: Dairy business contributes only 5% of the company’s overall
revenues.


Opportunities in the SWOT analysis of Britannia

 Emerging Dairy Industry: With organoleptic (flavor, taste & color) features shaping
the dairy industry, improving dairy products can help the company to improve their
market share & reposition itself in dairy market.
 Changing lifestyle & demand for healthier food products: Improvement in literacy
rate, health awareness, changing lifestyle,& increase in disposable income are
shaping the demand for healthy food products.
 Overseas Market: Expanding its business to other overseas market can help the
company to emerge as a global player in the food products.

Threats in the SWOT analysis of Britannia

 Competition in the market: With increasing number of players (local players –
Anmol, Priya & national- ITC, Parle), it’s becoming very hard for the company
to differentiate themselves from others. There is also threat from counterfeit
products destroying its brand image in the market.
 Price of raw material: Increasing price of commodities will result in further increase
in the price of the end product. Further increase in price will result in decrease
in profitability or reduced consumption.
 Buyers power: With highly diversified consumer goods market where there are lots
of brands claiming different sorts of benefits, it’s very difficult for consumers to stick
to a particular brand & hence results into brand switching where consumer get
power to select a brand based on several factors  like availability, reference group
recommendation, preference & price.
Comparison between parle-g and Britannia:-

DESCRIPTION   BRITANNIA  PARLE

Established 1891 1929

Nature of business Public ltd     Family run

No of manufacturing  5 own , 40CMU 8 own,60 CMU

units  

Market share 32.80 % 32.94%

value)

Ads Major methods Cricket events and Celebrities

Endorsement players Endorsement

New areas of Environment Health & Wellness

promotion
  The literature review or survey section examines recent (or historically significant)
research studies, complete data or industry report that act as a basic for the
proposed study. Research related literature primary data from a comprehensive
perspective, moving to more specific studies that associated to my project.

 The literature review is basically a primary data that I have gathered from the survey
with my class-mate which specified that parle-g is number one in glucose biscuits
segment. On the basis of primary data I began or research.

Research design:-
Type and nature of the study

The hypothesis that we want to study and we want to find out why parle-g is number one glucose
biscuit. This had made the research base to cause and effect oreintation. The problem was taken
into consideration looking that the data available on the consumption pattern of glucose biscuit. The
data showed 65% of glucose biscuit share own by parle-g.

The consumption trend where observed around the population surrounding us and online portal.the
cause for towards biscuits was not known hence the study stresses on the cause of why is the
biscuits number one. The question designing was mostly kept close ended with the question
targeting on the performance,conformance,aesthetics and realibility of products.the product under
consideration has no segment and is targeted at population in general without differentiating its
consumers.

Sample design:-
The sample to be chosen was people who consumed parle g biscuits and there was no other
criterion.the sampling technique used in this way was convenient sampling.the chances of error
were less,for the data,due to commonality of the product and positive response of each of the
respondent.also the data to be collected was of type which could be answer by anyone who eat
biscuite.the sample create by both male and female,across all ages.there was no duplication of
sample as all the sample are from different area. Which where in the proximity of the interviewer.

The sample was upto date and study was conducted recently and hence data was revelant
for the current timing, the method of sampling was random and hence probabilistic.the
sample size is also not true represantation of population under consideration but an
experimental sample of population.the number of sample is 44 due to limitation on time
basis and cost of research.

EXPLANATION:-
During the course of the study I had 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. I went to the areas and surveyed all shops that could possibly be approached.

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. Anant wadi (babulnath)

b. Gai wadi (hinduja college)
c. Azad maidan

d. Mint chowk (fort)

f. Khau gali ( fort )

ORGANIZED RETAIL STORES:

a. Spencer`s retail
b. Reliance retail (reliance fresh)
c. Aditya birla (more)
4. Sample size:- a total of 70 unorganized retail stores with 30 organized retail stores and
100 consumers. And 68 number of student and classmate

Data collection method:-

The data was collected from different source and of different type.the initial study of the
product was done online and the data collected for it was from the companies website
www.parle.com also through survey by preparing questionnaire ,some secondary data was
collected from web site www.mouthshut.com ,www.google docs.com,this site gave option
for different people.

The data collected from this source is more passive and it just gave a small insight into the
product favoritism among the people.the primary data was collected by questionaire
method where the question where close ended as the sample size was greater and anlysis of
the study would become easier owening to the definite replies for the question.

Data analystic techniques used:-

For the anylsis of the replies the primary data was uploaded on the google docs and then
with the help of it graphs and plots were plotted for univariate,bivariate and trivariate
analysis. The data collected was non-parametric nature and involved no question which was
of paramatric form and hence could not be tested for the sample size.
 Analysis of data:-

 
Result of data analysis:-
Hypothesis substantiated/unsubstantiated

After the analysis of our data I had to reject our null hypothesis.so there was a reason for the success
of parle-g which help him to become number glucose biscuit segment. and also I find that most of
the questions are favoured to parle-g as compared with competitors. Also I find that most of the un
organised retail are accepted that parle-g is the highest selling biscuits due to price difference as
compare to other glucose biscuits and also most of the patient, school student, are number of
consumer for parle-g brand.

Industrial visit to parle factory:-

After visiting the PARLE factory as industrial visit I have 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.
Conclusion:-
The three major attributes which influence the position of the biscuits in the market where quality,
price and distribution of the biscuits. parle-g also enjoy the market share as it is in the market for
more than 60 years hence it has a follow up from different generation. The distribution channels
take into consideration and see to it that there is no lag in supply of the biscuits in the market, there
have been lag in supply of competitor biscuits

The competitor(Britannia) for the biscuits are very recent and have been proved to be no threat till
this point of time. other companies have come up with glucose too but they have not been able to
capture the market that successfully. The quality of the competitor is not upto the mark as
compared to parle-g. the price is highly competitive in the market and it is the cheapest among all
the biscuits in the glucose biscuits segment. the value for money that people get from parle-g is
much better as compare to any other biscuits.

Recommendation:-
During the study it was seen that people are not influenced by commercials of parle-g hence
the company can save the cost on promotion and the fund could be used at some other
needed place. this cost reduction can conveyed to the customers or profit of the company.
 Bibliography:-
 Research methodology by N.thanulingom

 Research methodology by C.R. Kothari

 Methodology of research in social science by Dr .O.R. KRISHNASWAMI

 Www.google.com

 Www.mouthshut.com

 Www.parleproduct.com

 Www.wekipedia.org