FOR a alteration, the Mumbai-based shapers of the largest selling trade name of glucose biscuits, Parle Products, want to be in the spotlight. The ground being that for the first clip, the low-profile company wants to carry through its consumers dreams through its Parle-G My Dream Come True contest – its biggest publicity boulder clay day of the month.
Puting aside a budget of about Rs 2.5 crore for this competition entirely, more than implementing gross revenues, the Parle-G trade name is reenforcing its leading place in the biscuit market while giving contestants a opportunity to carry through their dreams.
States Pravin Kulkarni, Marketing Manager, Parle Products Pvt. Ltd, “ We want to give kids a platform to carry through their dreams. After all, dreaming is synonymous with the trade name values of Parle-G, which brings about all-round development to accomplish their dreams. ” The publicity is the largest of its sort and gives contestants the chance to win whatever they dream of in contrast to the traditional promos where awards are fixed. This competition has merely first awards and these awards are defined as per the kid ‘s dream.
Launched in 1939, the more than 50-year-old trade name of Parle-G is India ‘s first glucose biscuit to be introduced from the House of Parle. With a dominant volume portion in the glucose biscuit market, Parle-G is pegged as the largest-selling biscuit trade name in the universe, doing up about 80 per cent of Parle Products ‘ turnover of Rs 1,300 crore.
The family-run concern runing out of the western suburb of Vile Parle in Mumbai has ever adopted the doctrine of being low key with an enterprise to give value for money. This biscuit and confectionery major has in fact non bothered to raise the monetary value of its flagship trade name for the past six old ages and has ever tried to supply its offerings at about 33 per cent price reduction to competitory trade names.
While the high profile Britannia Industries has been busy stretching its portfolio of trade names with more premium offerings, Parle Products has ne’er felt the demand to be wary of competition. It has been basking a `far excessively ‘ comfy place in the biscuit market, particularly in the largest section of glucose, with its Parle-G trade name. Today it wants to remain chiefly focussed on its oldest biscuit trade names, Parle-G, Monaco and Krackjack, and is deliberately remaining off from the premium terminal of the Rs 2.400-crore market.
Sing Parle-G has already topped charts worldwide as revealed by the US-based Bakery Manufacturers ‘ Association, there seems to be no evident demand for concern. But there is, since Britannia has priced its offerings on par with Parle, particularly with regard to the latter ‘s three chief trade names ( Parle-G, Monaco and Krackjack ) . Closing the spread in market portion is therefore an at hand possibility.
While Parle-G may be taking in the glucose class with a 65 per cent volume portion, Tiger ( Britannia ‘s Glucose trade name ) is draging at 23 per cent volume portion, as per ORG-MARG. The difference in portion between Monaco and Snax is besides significant but Krackjack and 50:50 are on par both in footings of pricing every bit good as portions.
Therefore Parle is non truly expected to sit still. Apart from going more seeable and adding value to the imagination of its flagship trade name through its late launched all-India competition, it continues to look at all trade names within its portfolio either with purposes of adding more SKUs and discrepancies or even establishing new offerings and sniping off some impracticable trade names. Therefore, the focal point is on consolidation of its biscuits and confectionery concern in footings of adding more discrepancies and SKUs to its heritage trade names instead than looking into allied countries to acquire added growing. Besides, Parle ‘s internal research reveals that the biscuit market has graduated from the nucleus glucose and Marie offerings to more value-added discrepancies and that this applies to the rural markets every bit good. Another determination revealed that boxing played a important function in both biscuits and confectionery, with respect to the credence of any trade name.
Meanwhile, siting on belongingss such as chess titles and cricket trophies, the Parle-G trade name has been patronizing athleticss events in these countries propagating its values of mental and physical wellness. In the recent yesteryear, the trade name ‘s placement has moved to `tasty healthy nutrient ‘ from nutrition and energy. It has besides changed its packaging from the sedate wax paper negligee to a more fictile and modern-day screen for its glucose trade name.
Today Parle is researching more discrepancies for its flagship trade name, particularly popular spirits such as cocoa, with more monetary value points and SKUs ( it already has eight ) runing from its glucose biscuit trade name between Re 1 for 25 gram and Rs 37 for one kilogram. For the company, it makes sense to stretch the franchise of its mass trade name than that of premium trade names such as Hide & A ; Seek.
The limited volumes gathered from its premium scope of Hide & A ; Seek have made Parle put its discrepancies on clasp. States Daphne Nair, Brand Manager, Parle Products, “ There are non many takers at the premium points, particularly for niche discrepancies like batch. We have therefore decided to keep back the spirit of Hide & A ; Seek and restrict it to a cocoa cooky. ”
Launched in 1998, Hide & A ; Seek was Parle ‘s raid into the premium biscuit market with offerings in cocoa, orange, java and batch. Traveling off from its earlier baseline, `Game with gustatory sensation buds ‘ , its new message is `Best of both universes ‘ . Today Parle believes in presenting both gustatory sensation and wellness through its cocoa and biscuit offering through Hide & A ; Seek. Adds B. P. Aggarwal, Managing Director, Surya Foods, maker of the Priya Gold trade name of biscuits, “ Hide & A ; Seek has failed to do an impact. However, its glucose trade name of Parle-G continues to govern the market. ”
In fact, it is Britannia which is expected to hold a greater value portion among biscuits due to its premium offerings and continues to keep a dominant place in the Rs 35-crore, 2,000 metric tons per annum premium biscuit market while Parle reigns over the popular biscuit market with its flagship trade name, Parle-G.
Says Jagdeep Kapoor, Managing Director, Samsika Marketing Consultants, “ Both the companies rule the biscuit market. Between them one has a fastness on the popular market and the other, on the premium. Once in a piece they do be given to travel into each other ‘s districts but on the whole they continue to reciprocally esteem each other. ”
Comparisons between trade names can, nevertheless, be drawn straight between these two biscuit big leagues. For case, its Sweet and salty biscuit of Krackjack is comparable to Britannia ‘s 50:50 and comes as the 2nd largest volume trade name in Parle ‘s biscuits portfolio. It is followed by another of its heritage trade names, its salty biscuit, Monaco, which has stretched to include spirits like cheese, A jeera, methiA and onion in the past and can be compared to Britannia ‘s Maska Chaska, a discrepancy of 50:50, which has besides come up with spicy herbal toppings.
Meanwhile, there are certain alterations go oning within Parle ‘s portfolio. Its more salty offering of the Nimkin trade name of biscuits, which is present in the East, is fixing for a national roll-out while its pick biscuit trade name ( Fun Centre ) will add more spirits to the current cocoa, orange, pineapple andA elaichiA with more SKUs catering to household battalions. Besides, there will be extensions among itsA namkeenA offerings of cheeselings, Jeffs and Sixer to include more merchandises to the portfolio.
Within its confectionery portfolio, Parle has pegged its brittle trade names such as Kismi, Lux, Dairy and Mayfair at the 25 paise monetary value point. However, it expects the 50 paise monetary value point to be more feasible. It already has a host of hard-bitten confectionery trade names runing in that section including the likes of Mango Bite, Tangy and Pick ‘n ‘ Pack. This section is expected to be a focus country for the company. Explains Nair, “ Although the 25 paise section is the biggest possible section, most of the bigger companies can non cover their operating expenses. The 50 paise section is the most feasible followed by the Re 1 monetary value point. ”
A new brittle trade name of Cafechino has merely been launched at Re 1 down South while it has stretched the franchise of its Mango Bite to a juicy centre-filled offering at the same monetary value point. Confectionery brands in the axial rotations category include another heritage trade name, Poppins, which was relaunched two old ages ago with new spirits and boxing while Rol.a.Cola is on the threshold of a similar exercising.
However, confectionery is non truly a thrust country for the company now and contributes merely 15 per cent to the turnover, although the concern is about every bit old as its biscuits, holding been launched manner back in 1929.
While nucleus trade names in the glucose and Marie class comprise the majority ( 65 per cent ) of the biscuit market, the higher growing rates of 10-12 per cent seem to be coming from the non-core sections. Explains Nair, “ There is exaggerated value growing due to the higher borders in the non-core biscuit class. ” Nail downing growing rate for the nucleus biscuit market between seven and 10 per cent, the glucose biscuit class in India is now estimated at Rs 1,500 crore.
There is no fring Parle-G in its section. Industry perceivers chiefly attribute it to its well-entrenched distribution ( the company covers 12-15 lakh mercantile establishments across the state ) which can crush any new participant desiring to do an entry. In any instance, the volumes are expected to come from this section entirely with the others ( the non-core sections ) such as the salty and pick biscuits commanding meagre volumes between three and four per cent of the full biscuit class, harmonizing to the company. The Marie section, nevertheless, seems to register higher volumes of 12-13 per cent while the sweet and piquant class registries a nine per cent volume in the market.
Sing India is supposed to be the universe ‘s 2nd largest biscuit industry ( after China ) , in the yesteryear, several MNCs tried come ining the biscuit section but failed due to the being of unorganized participants in the popular section of the market.
Harmonizing to the Federation of Biscuit Manufacturers, the per capita ingestion in India is about 1.2 kilograms per annum, compared to 15 kilograms per annum in developed states. Now there are more participants fixing to put up store including the likes of United Biscuits and Nestle ( which has increased its interest in Excelsia Foods ) . But such participants will hold to undertake Britannia in the premium market. Competing with Parle will ne’er be easy in the popular biscuit market in India, particularly now that it has taken the burden of carry throughing its consumers ‘ dreams.