Professional Documents
Culture Documents
Parle Products
Pvt Ltd
2014
By: b.b. shiggatti
USN: 2GI13MBA08
Guided by:
Prof. S. N. KHANAI
Table of contents
Introduction to Company
Industry Analysis
History of company
Vision, Mission and objectives of the company
PEST analysis
Marketing Management
a. Segmentation, Targeting and Positioning
b. Product and services offered by company
c. Pricing strategies
d. Promotion strategies.
e. Distribution strategies
f. Customer relationship management
Human resource Management
a. Recruitment, selection and training strategies.
b. compensation management
c. Performance management
d. Career Planning
e. Organization Structure
Financial management
a. Capital decisions
b. Ratio Analysis.
c. Working capital management.
SWOT analysis
Corporate Social responsibility
Introduction to PARLE G
A cream colored yellow stripped wrapper with a cute baby photo containing10 12
biscuits with the companys name printed in Red and you know these are Parle Gbiscuits.
Times changed, variety of biscuits did come and go but nothing has changed with these
biscuits. Parle-G is one of the oldest brand names as well as the largest sellingbrand of
biscuits in India. Parle-G or Parle Glucose is a brand of Biscuits manufactured by Parle
products in India.
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
& sweets. For around 75 years, Parle have been manufacturing quality biscuits and
confectionery products.
Over the years Parle has grown to become a multi million-dollar company with
many of the products as market leaders in their category. 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 onto become leading brand names itself for great taste and quality. Today, Parle
enjoys a 40% share of the total biscuit market and a 15% share of the total
confectionary market, in India.
INDUSTRY ANALYSIS
Introduction Defining FMCG Industry Products which have a quick turnover, and relatively
low cost are known as Fast Moving Consumer Goods (FMCG). FMCG products are those
that get replaced within a year. Examples of FMCG generally include a wide range of
frequently purchased consumer products such as toiletries, soap, cosmetics, tooth
cleaning products, shaving products and detergents, as well as other non-durables such
as glassware, bulbs, batteries, paper products, and plastic goods. FMCG may also include
pharmaceuticals, consumer electronics, packaged food products, soft drinks, tissue paper,
and chocolate bars. A subset of FMCGs are Fast Moving Consumer Electronics which
include innovative electronic products such as mobile phones, MP3 players, digital
cameras, GPS Systems and Laptops. These are replaced more frequently than other
electronic products. White goods in FMCG refer to household electronic items such as
Refrigerators, T.Vs, Music Systems, etc. In 2005, the Rs. 48,000-crore FMCG segment
was one of the fast growing industries in India. According to the AC Nielsen India study,
KLS Gogte Institute of Technology, MBA-2014
industry
grew
5.3%
in
value
between
2004
and
2005.
HISTORY OF COMPANY
Since 1929, Parle Products, with its wide platter of biscuits and sweets is also
actively engaged in changing and uplifting the social face of India. As part of its Corporate
Social Responsibility Policy, Parle is keenly involved in the overall development of the
younger generation, with a focused endeavor to build the New Face of India and spread
happiness and joy all over.
Some of our best habits, as we said, are also our oldest. Many of them date back to
the last decade of the 19th century. It was in the 1880s that the late Mohanlal Dayal came
to Bombay from his village Pardi, in the district of Surat, to work as a dusting boy at a silk
merchants. What a long way that bright little boy came! First, the hard apprenticeship and
the graduation to Master Cutter, then the elite tailoring establishment that eventually
developed into a wholesale business to finally, the new business in confections and
biscuits. Always, the accent was on self-sufficiency. Mohanlal Dayal was not just a
progressive and astute businessman. He never gave in to the sense of indifference that
often comes with the commercial outlook. All through his life, he was deeply conscious of
his duties towards society and the community. He built the Shri Mohanlal Dayal Prasuti
Graha and General Hospital in Pardi, which is maintained through charity trusts set up by
him. The Shri Mohanlal Dayal Sanatorium and Hostel at Matunga in Bombay is another
such institution. In his memory and after his example, his sons have donated significant
sums to set up the Chauhan Institute of Science.
Parle Centre of Excellence, as an institution, is dedicated to enriching the
lives of people by conducting various cultural programs across all regions to facilitate the
KLS Gogte Institute of Technology, MBA-2014
COMPANY PROFILE
Establishment
1929
Headquarters
Industry
Type
Privately Held
Company Size
1,000 employees
Website
http://www.parleproducts.com
Sales Officer
28%
13%
10%
Production Officer
7%
Sales Manager
5%
VISION
The main vision of Parle is to concentrate on consumers taste and preferences. The Parle
brand has grown from strength to strength ever since its inception. For fulfilling its vision
they do every batch of biscuits and confectionaries are thoroughly checked by experts
staff, using the most modern equipment hence ensuring the same perfect quality across
the nation and abroad.
MISSION
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. Various people
have various reasons to consume it, some consume it for the value it offers while others
consume it for sheer taste, For some it is a meal substitute for others it is a tasty healthy
nourishing snack. Patronized by millions for all this qualities, it is much more than just a
biscuit brand. Little wonder than why is it the Largest selling Biscuit brand in the World.
MARKETING MANAGEMENT
Parle was a small company started in the year 1929 in Ville Parle in Mumbai. This
company went on to become the worlds largest biscuit manufacturer. The company had
the intent to spread joy and cheer in the lives of adults and children, all over the country
with their range of sweets and candies.
From a small factory set up on the outskirts of Mumbai they have grown to have 7
manufacturing units all over India. Today Parle sells biscuits, confectionary and snacks in
more than 200 SKUs and has won numerous awards internationally and has been
sweetening lives all over India and abroad.
SEGMENTATION TARGETING AND POSITIONING OF PARLE
If we divide the whole market on basis of their preferences foe sweetness and saltiness in
the biscuits then the possible outcome would be that the preferences are clustered near
some tastes i.e. the consumers would not like to have something really vague like
50%salty, 25%sweet and25%creamy.That is why the preferences are clustered and not
diffused wherein the preferences have to be very extreme and vague. Parle as a company
makes use of this clustered preferences and manufactures biscuits for each and every
Appeal to all income groups : The product is appealing to the consumers as the target
audience is basically kids. This product is suitable to all Income group.
Low and mid range price Segments: The pricing of the product is of low and mid range
so as it suits every ones pocket
Value for money: Value for money allows all age group to enjoy parle products at fullest
Strict cost control at every point in supply Chain: It reaches 2.5 million outlets,
including villages with a population of 500 people
Penetration Strategy: keeping high quality and maintains low price.
Previously sets its price as per the geography, freight cost for reaching remote
places is quite high.
As per the Gdsouza, Coordinator of Parle products, variation of the price of ParleG from Rs.4-5 in different states.
But due to factories at strategic locations Parle-G is moving towards Uniform
Pricing all over the INDIA.
Alternatives to Increasing Price
Reducing product size, using less expensive materials, unbundling the product
Buyer reactions to price changes must be considered
LATEST STRATEGY:
As part of its marketing initiative, Parle Products has recently adopted a major pricing
strategy whereby a 5 kg Parle-G Atta will be available to consumers and, along with
Parle-G biscuit pack for free at Rs 90. However, competitors, Pillsbury atta are priced at
Rs
104,
and,
Kissan
Annapurna
at
Rs
102,
in
similar
capacity.
AVAILABILTY
Parle-G is available in Europe, UK, USA, Canada, etc. In Canada, it is sold by Zehrs, Food
Basics, Loblaws, etc for only 99 cents for a 418 gram pack. Parle-G or Parle Glucose
biscuits, manufactured by Parle Products Pvt Ltd, are one of the most popular biscuits in
India. Parle-G is one of the oldest brand names as well as the largest selling brand of
biscuits in India. For decades, the product was instantly recognized by its iconic white and
yellow wax paper wrapper with the depiction of a young girl on the front. Counterfeit
companies have attempted to recreate and sell lower quality products of similar names
with virtually identical package and design
.
MARKET SHARE:
It has 70% market share in India in the glucose biscuit category followed by Britannia,
Tiger (17-18%) and ITC's Sunfeast (8-9%). The brand is estimated to be worth over Rs
2,000 crore (Rs 20 billion), and contributes more than 50 per cent of the company's
turnover (Parle Products is an unlisted company and its executives are not comfortable
disclosing exact numbers). Last fiscal, Parle had sales of Rs 3,500 crore (Rs 35 billion). It
also is popular across the world and is starting to sell in Western Europe
Product Strategy
Core benefit- the core benefit of biscuit is to satisfy hunger of the consumer.
Basic
product-
in
the
second
level,
the
basic
product
is
biscuits.
Expected product- the consumers expect the product to have a good taste and also give
nutrition.
Augmented product- Parle biscuits increase a persons energy levels. o Potential
product-
in
the
future
Parle
could
come
up
with
different
products.
MARKET 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 e most remote
places and in the smallest retail outlets. Parle has nearly 1,500 wholesalers, careering to
4,25,000 retail outlets directly or indirectly. A two hundred strong dedicated field force
services there wholesalers and retailers. Additionally, there are 31 depots and C&F agents
supplying goods to the wide distribution network. Parle constantly endeavor at designing
products that provide nutrition and fun t o the common man. Most Parle offerings are in the
low and mid-range price segments. This is based on their understanding of the Indian
consumer psyche. The Value for money positioning helps generate large sales volumes for
the products. However, Parle Products also manufactures a variety of premium products
for the up-market, urban consumers. And in this way, caters a range of products to a
variety of consumers
company.
Company acknowledges the fact that it needs to be sensitive to the market
demands. For this it requires that a number of salesmen needs to be present on the
field.
KLS Gogte Institute of Technology, MBA-2014
We all know that recruitment and selection is one of the tasks that the HR
department fulfills. The other tasks will be discussed below:
Recruitment and selection: Involves selecting and attracting the best workers.
Wages and salaries: Must be enough to motivate or attract workers.
Industrial relations: There must be effective communication between
departments.
Training programs: Must meet the training needs of employees and accomplish
business objectives.
Health and safety: Must do things according to the law.
Redundancy and dismissal: Must obey all laws when firing workers.
Workers are needed when a business starts up, expands or an existing employee
leaves. Businesses use the recruitment process to successfully employ the right
people. This process is usually undertaken by the HR department, but in small
business, HR departments do not exist since the businesses employ too little workers
for it to be of much use. Here is a diagram summarizing the recruitment process.
Vacancy arises.
of
employment
working
hours,
wages,
pension
schemes.
External recruitment
Most vacancies are filled with external recruitment, which always involves advertising the
vacancy. Here are some suitable media of advertising:
Local newspaper: Usually for office and manual workers. These people are plenty since
the job does not require too much skill.
National newspaper: Used to find workers for senior positions that requires a lot of
skills. It can be read by people anywhere in the country or overseas.
Specialist magazines: Used for particular technical specialists such as physicists. Can
be used to hire people in the home country or abroad.
Recruitment agencies: Keeps details of qualified people, and will send the suitable
applicants to interviews when a business asks for a worker. Many businesses prefer to use
recruitment agencies to find them workers because it is easier. However, it is expensive
since their fee is based on a percentage of the workers pay.
Government job centers: Place where businesses can advertise their vacancies. These
vacancies are usually for unskilled or semi-skilled workers.
Possible effects of government legislation on the recruitment process
Many
governments
pass
laws
to
create
equal employee
opportunities. They state that all employees should be treated equally in the work place
and receive the same salary for doing the same job. People of any sex and people with
disabilities are treated equally. Therefore, businesses need to be careful
when advertising and treating their employees because they could be prosecuted
and fined.
Job advertisement
This is what a business needs to decide when drawing up an advertisement:
What should be included.
Job description
KLS Gogte Institute of Technology, MBA-2014
their
work
and
in
building
brands
others
love.
Just to give a preview to what one can look forward to: Group lunches and outstation
team-building exercises, discussion forums and training programs, yoga trainings, health
check-up
camps
are
just
few
among
the
exciting
things
we
do
ORGANIZATIONAL STRUCTURE
The Parles organizational structure teamwork of the formal relationship that has been
established the purpose of structure is to is assist in regulating and directing the efforts of
an organization so that they co-ordinate consistent with organization.
concept:-
Gross working
to
as working
i)
i)
ii)
capital.
Indicates liquidity position of the firm.
Suggests the extent to which working capital needs may be financed by permanent
source of funds.
OBJECTIVE OF WORKING CAPITAL MANAGAEMENT
Aims and objective act as the limiting boundaries and keep the researcher on track and
help
to
The
avoid
aims
any
and
mistakes
objective
and
of
errors
this
during
projects
the
projects
are
listed
work.
below:
1) To learn more about working capital management and its financing from banks.
2) To know the importance of working capital from the companys point of view.
3)
To
study
the
impact
of working
capital on
liquidity
position
of
the
firm.
4) To study the Credit Monitoring Arrangement of the firm with respect to Bank Finance.
5)
To determine
the
Maximum
Permissible
Bank
Finance
for
the
company.
6) To study the impact of working capital on the balance sheet of the company.
PRIMARY SOURCES:The primary data will be collected from various books of financial management and various
other reference materials.
SECONDARY SOURCES:-
I.
II.
sources.
SWOT ANALYSIS
STRENGTH:
1. One of Indias most popular brand
2. High brand recall
3. Price advantage products at affordable price
4. Strong supply chain network
5. Popular subsidiary brands like Parle G, Monaco, Hide & Seek, Krack Jack, Melody, Full
toss, Pippins, etc.
6. Diverse product portfolio including biscuits, sweets and snacks
7.Strong presence in rural markets
KLS Gogte Institute of Technology, MBA-2014