Company profile

Name of the company: Parle Products Pvt. Ltd.

Established in the year: 1929
Founder of the company: Narottamdas Chauhan
Chairman: Sharad Chauhan
Directors: 1) ANUP Chauhan
2) Amol Chauhan

1st Brands: Parle Glucose & Parle Monaco.

Market leader in many products.
Won acclaim at the Monde selection since 1970.
40% share of the total biscuit market.
15% share of the total confectionery market.
Parle has largest manufacturing units in India, for Almost 80years.
Total turnover is2000 crores.
It has provided its products to the mass witrh theaffordable range .
Parle is the company in world which runs on its owncapital.
All production is done in their own plants.
They have their own machines for manufacturing of packaging and printing
material.

History of Parle
Narottam Das Chauhan thought that something should be made for children. So,
to fulfill his ambition, the first factory of Parle was established in Germany in the
year 1929.
A long time ago, Parle is first factory set up in Mumbai in 1929 to manufacture
toffees.
The British ruled India a small factory 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.

4Ps of Parle

PLACE
Managing & Selecting Marketing Channels
It is a path traced in the direct or indirect, transfer of title to a
product as it moves from a producer to ultimate customers or industrial users.
We can define the distribution channels as movement of goods and services
between the point of production and point of consumption through organization
that perform a variety of marketing activities. The route of the channel include
both manufacturer and the consumer and intermediaries who are linked in the
channel system by one or more of the marketing flows like transfer of title or
ownership, physical movement of goods of merchandise, flow of money through
payment of prices or so or transmission of marketing information. A distribution
system has two sub divisions
Channels of Distribution
Physical Distribution
Physical distribution looks after physical handling of the goods and
assures maximum customer service. It aims at offering delivery of right goods at
the right time and place to customers. These activities include packaging,
warehousing, transportation, and inventory control and customer service.
In P.P.L. for delivery of biscuits or confectionery products, they are
having truck facilities. They are using many transportation companies for carrying
goods from factory to wholesalers or from factory to depo.
Distribution Channels

Physical Distribution

Channel Distribution

Channel Levels
Each intermediary that performs work in bringing the product and
its title closer to the final buyer constitutes a channel limit.

A zero level channel also called a direct marketing channel consists of a

manufacturer selling directly to final customer.

The one level channel contains one selling intermediary such as a retailer.

The two level channel contains the intermediaries which is the most widely
used channel where manufacturers have direct dealings with wholesalers
who in turn sell to retailers and they in turn to consumers.

The three level channels contains agent, middleman, wholesaler and

retailer and then ultimate consumer which is after used by relatively small
manufacturer with a limited product line who sell to widely dispersed
market.
The Parle industry uses the following channel of distribution:

Manufacturer

Agent
Middlema
n

Wholesale
r

Retailer

Consumer

Parle industry is concerned with food items. There are as many

numbers of buyers and ultimate consumer so it is not possible for direct selling of
buyers and ultimate consumers. So it is not possible for direct selling of product
to them. From the factory of Parle goods are sent in depo. The P.P.L. is having
two depos in Gujarat. From depo goods are delivered to distributors. P.P.L. calls
their distributors as wholesalers. Wholesalers further delivers goods to the trade.
In the unit P.P.L. follows ready stack working system. In the trade. In the unit
P.P.L. follows ready stack working system. In the agency ready stacks are
available for providing and leaders whole delivering agency have recruited

salesman, drivers and leaders whole delivering goods from agency to retail
shopkeepers. Salesman carry with them bill books, sample kits, retail pack. In the
trade various activities are performed by salesman like detailing the product,
supplying of products, cutting the product and ultimately closing the sales with
the best ability. By providing satisfactory service P.P.L. achieves reorders from
retailer or retailers gain of business from ultimate customers. Here service means
providing best quality at cheaper rate and at proper time and place.

Selecting Channel Members and Providing Training

Producers vary in their ability to attract qualified intermediaries
within the chosen channel. Also they have to work hard to get qualified
intermediaries.
In P.P.L. the management recruits their channel members not on
the basis of qualification and experience but they make marketing survey. They
are getting applications from the applicants. On the basis of the applications
received they evaluated the applicant and the final selection is made. Newly
appointed wholesalers are generally given three days training by dealers. Also
the training is provided by model wholesalers who have got the thorough
knowledge of policy and procedures updated by P.P.L. and paperwork concerned
with that job. New wholesalers are provided with one and half days on the job
training in the one and half days electrician training. For arrangement of this
training programme company is producing three star hotels, single A.C. room
with breakfast, launch and dinner and other facilities. P.P.L. wholesalers are
selected to population for e.g. cities like Rajkot they have wholesalers.

In Ahmedabad they have ten wholesalers. In Baroda they have five

wholesalers. In Surat they have eight wholesalers. In Kachchh they have six
wholesalers. In Talukas company does their business by separating the market
customers.

Product
Product mix:
A product mix is the set of all products and items that a particular
seller offers for sale to buyers.
A companys product mix has a certain width, length, depth, and
consistency.
The width of product mix offers to how many different product lines the
company carries.
The length of product mix refers to total number of items in its product mix.
The depth of product mix refers to the total number of items in its product mix.
The depth of product mix refers to how variants are referred of each product
in the line.
In Parle Product ltd. the length of the Product mix carries two
different lines. That means the company concerned with manufacturing of
biscuits and confectioneries.

The depth of Parle Product ltd. can be measured for the sizes,
colours, models, price and quality of the Parle Products. Parle Product ltd. has a
products in various Sizes which means the biscuits packets are available in
50gms., 75gms., 100gms., 150gms., 500gms., with various Prices and colours
and colours and quality.

There is about 19 products produce by PARLE COMPANY. They

produce not only biscuits but also confectionary. Some products of the
PARLE are as follows.

PRODUCTS OF PARLE
BISCUIT

CONFECTIONARY

PARLE G

POPPINS

MONACO

KISME BAR

MILKSHAKTI

MANGO BITE

KRACKJACK

MELODY

FUN CENTRE

ROLACOLA

MARIE CHOICE

SMOOTHIES

HIDE & SEEK

CHOX

MAGIX

Jeffs

Nimkin

Sixer

Parle 20-20 biscuits

Orange Candy

Product Packaging

Parle Product ltd is always very accurate in the matter of packaging

the products & they care a lot & fined more importance to this activity at some
point. Ice-cream are the frozen liquid items & requires the superior package &
packaging activities because of the following purposes.

Packaging protects the product on its way to the consumer. The biscuits &
chocolates of P.P.L. co. are transported to a very long distance & also it
can prevent tampering with products in the warehouse or retail store.

Package goods generally are more convenient, cleaner and less

susceptible to losses from evaporation, spilling & spoilage.

Packaging also helps in identifying a product & thus, may prevent

substitution of competitive products.
From the above Points, we can say that package can serve as a

Silent Sales Person. Plastics wrapper & paper container, ultimately a package
may become a products differential advantage, or at least a significant part of it.
Thus, products might be differentiated by a feature of the package.

Product Life Cycle Stage

From the time the produce idea is been during its development and
up to the time it is launched in the market, a product goes through the various
phases of its development. Its life begins with its market introduction, next it goes
through a period during which its market grown rapidly. Ultimately it resides
marketing, maturity after which its market declines and finally the product dies.
The product life cycle may move through five stages

Introductory, pioneering as development stage.

Growth or the market acceptance stage.

Market Maturity stage

The Saturation stage

The Decline stage

In Parle Product Ltd. the product of the unit has reached at growth

stage. In this stage, the product is produced in significant quantity and put in the
market without delay. Here in this unit also the Parle Product Ltd. is having ready
stock working with them. As the company Parle Product Ltd. has reached as its
growth stage there are large number of competitors entered in the product. Parle
Product Ltd. is having a number of distribution outlets and thats why the
products of Parle are fixed at economic rate.

PRICING
Skimming Price Policy:
This strategy involves setting a very high price, so that in the initial
stage cream of demand may be skimmed and enormous profits made for an
indefinite period or the price may be covered later in order to tap other segments
of the market.

Penetration Price Policy:

In this strategy a low price is set to reach the market immediately.
Parle products has adopted penetration price policy for their items
of biscuits and confectionery, because in consumer products there are many
competitors prevailing in the market. So it is not possible to set a very high price
in the initial period. Considering their competitors policy parle has adopted
penetration price policy.

Pricing Methods
Companies revolve the pricing issue by selecting a pricing method.
The pricing method then leads to a specific price. As there are many pricing
methods which are as under:

Mark up Pricing

Target Return Pricing

Perceived Value Pricing

Going Rate Pricing

Sealed Bid Pricing

Parle Products Limited has adopted sealed bid pricing method for the

fixation of prices of biscuits and confectionery. Competition oriented pricing is common

where firms submit sealed bid for jobs. The Parle products fix the prices taking into
account prices of competitors rather than rigid relation to the firms supply or demand.
Parle wants to win the contract and winning normally requires submitting a lower price
than competitors. At the same time the unit has not set its price below cost.
There is no government regulation in fixation of price of products P.P.L.,
government only advises on the quality of the products.
There is no any type of discount and allowances provided to dealers and
customers. The products are not sold on credit basis and there is only such cash system
prevailing in P.P.L.
During my field training in market, I came to know that there is no credit
benefit provided to retailers, stockiest or customers, because they are the market leader
and without providing credit facility also their products are in great demand by the
retailers and customers. Also if they fix some high price, then also, the loyal customers
of the P.P.L. will not get divert toward others products because 90% of the customers

believes in good quality rather than only on price. Only 10% of customers may have a
chance of diversification towards other brands.

Factors Affecting Pricing Policy

So far as P.P.L. is concerned, the factors which affect the pricing
policy can be summarized as under:

Internal factors
Cost of Production
At the time of marketing the pricing. The manager has to attempt to
optimize the cost. Cost optimization means setting of reasonable prices which
provide equitable return on capital at the same tome suit the consumers
purchasing power.
Distribution cost
P.P.L. are transported to a very distance, naturally the distribution
cost would be high. Again, the costs on middlemen clue generally high because
the profit given to the would also be included in to them would also be included in
the cost.
Normal Profit Margin
The main objective of any company is to earn maximum profit.
Here, also the margin of profit is taken into account while fixing the prices. But
the prices are changed at the cost of society.
Product Perishablility

While fixing the prices, the decision makers should not underestimate the perishable
quality of the products. The unit also gives much stress on this factor & fixes prices
accordingly.

External factors:
Demand of the Product
The decision makers of the unit are always in trying to study the
nature & magnitude of demand & according the level of demand, the unit fixes
prices.
Socio Economic Environment
Rise in the level of income or in the standard of living may affect the
pricing policy. The decision makers may prefer to increase the price, where there
is a high standard of living & vice versa.
Government Regulations
The decision makers of the unit are always keep in the mind the
regulations introduced by the Government. This factor requires more care &
precaution.

Competitors price in the Market

This is the most important factor in determination of prices. The
main competitors of the Vadilal are Amul, Hawmore & Walls. The decision
makers, here also give full attention to these competitors while fixing prices.

Thus, above all factors are taken into account while fixing prices for
the products. Ultimately, consumer perceptions of price and value determine
whether the company has set the right price, if the price is higher than the sum of
the perceived values, consumer will not buy the product.

Factors Influencing Pricing Decisions

Pricing decisions are influenced by numerous factors. Pricing
policies should be consistent with pricing objectives and pricing strategy should
be in conformity with pricing objectives and pricing policies. Also pricing decisions
require the knowledge of the companys over all marketing environment. In P.P.L.
while fixing the price structure following points is considered:

Invoice Amount

Local Sales Tax

Secondary Freight

Wholesalers Margin

Cost to Retailers

In Parle Product Limited, company fixes the price of various brands of biscuits and
confectioneries. Accordingly to the price of competitors like Britania, Bakemans,
Windsor, Nutrine, Nestle, Candy-Cake, Simco products are available from the ranges of
Rs. 2, Rs. 4, Rs. 5.45, Rs. 6, Rs. 11.50, Rs. 18.50. The profit covered by pare-G
products is very less, but by the effort of P.P.L.; they have not allowed their competitors
to enter in the market. The future of Parle-G is very bright.

PROMOTION

P.P.L. & Promotion Mix

It is true that to make the product known and acceptable some kind
of promotion tool must be adopted so that company can communicate to the
consumers. Advertising and promotion of products it must for every company if
they want to make their position in this competitive and dynamic market.
In P.P.L. the manager of marketing believes that it is must for every
product to be advertised by any method or media in this competitive world where
other company concerned with the same products are in large number. It is
necessary to inform about the product to the prospects because advertising and
other promotions helps in crating brand patronage in market.
So, P.P.L. also promotes its products through:
Advertising
Sales Promotion
Publicity

Personal Selling
The P.P.L. spends on advertising according to various brands of biscuits
and confectionaries. Advertising budget is fixed in the year and according to
requirement of advertising budget is set for every brand in the product. P.P.L. spends
65% on advertising budget on the total turnover achieved by the company as
companys turnover of the last years 700 crores. The amount spent by the company on
advertising budget comes to Rs. 455 crores.

Advertising
Advertising can be defined as the non personal presentation and promotion of idea,
good or services by an identified sponsor. It is an impersonal presentation where a
standard or common message regarding the merits, price and availability of product or
service is given by the producer. The advertisement build spull effect as advertising tries
to pull the product by directly appealing to customer to buy it. Advertising is the
important of Marketing advertising is the process of communicating persuasion
information about a product to target market by means of the written and spoken word,
and by visual materials. Without advertising is not possible of the marketing. There are
many types of advertising like as economics times, website news, television news, radio
and banner, etc. Running a business without advertising is just like looking at a girl in
the dark you know what you are looking but she doesnt know.

Television:In different channels like Zee tv, Sony, Star plus, and local
channel etc. all the channel advertising them.

Radio:-

Advertising also in different radio channel like my

f.m.,mirchi,city,etc.
Some popular Advertisement and Slogans by the Parle

1.
2.
3.
4.
5.
6.
7.
8.

Parle-G - G mane Genius

Melody - Melody itni chocolaty kyu he
Poppins - Goli mast boli
Krackjack -Sweet & Salty bhi
Parle Kaccha Mango Bite - KaccheAamka Xerox
Chhota Hide & Seek - Bade kaamki chees
Milk Shakti - Buddhi Builder
Monaco - TensionnailenekaMonacokhaneca

Press Advertisement

Monaco, crispy Light Monaco for lighter moment

Brand Ambassador

Brand Ambassador of the Parle company for the biscuit product like Kajol
the film actress for the digestive marie and Vishvanath Aanand Chess
Champion for the Parle Milk Shakti. This to Ambassador are signed by the
Parle to promote its product and it is good for the company the image of the
ambassador is used by the Parle is Very Well. In the Milk Shakti they
introduce two different things that it is the mixture of the milk and honey for
the mind exercise and the image of the Vishvanath Aanand is good. And in
the case of digestive marie after some times Kajol comeback in the films so
Parle wants to use the popularity of the Kajol in their new product.

Sales Promotion
Sales promotion tools used by P.P.L. includes Coupons, Lucky draw
schemes, Prizes, Warranties, point of purchase displays and demonstrations. In the
school up to five years of children they are given coupon. P.P.L. gives coupons also to
their retailers up to amount of purchase of Rs. 500. They are given gift coupon free of
cost. Retailers are having facility of lucky draw scheme in that they have 51 prizes for
chances of wining. P.P.L. also considers the interest of wholesalers, keeping this view in
mind, they hold contest for wholesalers in Navratry and Satam-Atham festival. Parle
Products Limited also offers sport purchase scheme and trade load offers (T.L.O.) for
that the retailers got benefits. The company is also having display and demonstration
facility. Generally, this facility is provided to Cinema Canteen, in Hotel, etc.

FUTURE PLANS
As Parle Products Limited is concerned with manufacturing of biscuits
and confectioneries, the company is thinking about widening the length of the product
line. While asking to the field manager about the future plans of Parle Products Limited,
he replied that the company has a wide scope in the same product category. As all the
products of the company are winners. The company has achieved MONDE
SELECTION AWARD in food industries.

Conclusion
Parle Products Limited has reached its zenith in the world of food
items preparing biscuits and confectioneries. It has always adapted a futuristic
approach i.e. anticipated the companys need in the year to come.
Parle Products Limited always keeps in mind the needs of
consumers and thats why they have launched recently cream biscuits,
considering the requirement of modern consumers. In P.P.L. from factory to the
ultimate consumers all the people are working co operatively. In the factory,
employee relations are harmonious.

THANK
YOU