Sales Strategy to Market Parle G in Rural Market

Group No. 1
Before we start, let’s have a look at the Biscuit industry in India.
• The total production of biscuits in India is estimated to be around 30 lakh Metric Tons

• Indian biscuits category sums upto Rs 11,295-crores

• The biscuit industry is estimated to grow over 15-17% in the next few years

• The per capita consumption of biscuits in India is 2.0 kg

• The Nielsen study 2011 states that India is the world's leading market for biscuits, ahead of
the US, Mexico, China, Argentina, France, Italy, Germany, Turkey and Spain. While India
showed a volume market share of 22%, the second slot was occupied by the US at 13%.

• The export of biscuits is approximately 17% of the annual production, the export of
sweet biscuits for year 2007-08 was Rs 145.93 Cr and for year 2008-09(April-Dec)
was Rs 280 Cr, the major exporting regions were Haiti, Angola, USA, Ghana, UAE

• The Biscuit industry employs almost 3.5 lakh people directly and 30 lakh people
indirectly.
This industry is further divided into two; organized and unorganized sectors.
Here the organized sector comprises of 65% whereas the unorganized sector is 35%
• The organized sector is valued at above Rs 8000 crores

• The organized biscuit manufacturing industries annual production:

Year: 2007-2008
Production: 17.14 lakh MT

Year: 2008-2009
Production: 19.15 lakh MT

• The organized sector face competition to the unorganized sector even though the
percentage ratio is less
Here the major consumption happens in East -28% followed by North-25%
and then South-24% and West-23% being the lowest.
The biscuit industry is further divided into the following categories
Market share- Brand wise (volume )
• PARLE 40%
• BRITANNIA 38%
• PRIYA GOLD 15%
• ITC 11%
• REST 6%

from report s available at IBMA ( Indian Biscuit Manufacturers Association) Fig 2007-2008
Parle G is one product that we all have consumed at least once.
So who gets these tasty biscuit to us?
A very familiar company called the Parle Products Pvt. Ltd.
• Parle Products has been India's largest manufacturer of biscuits and confectionery for
almost 80 years, Since 1929.

• Parle name symbolizes quality, nutrition and great taste

• Makers of the world's largest selling biscuit Parle-G

• They have factories in Mumbai, Bangalore, Bahadurgarh in Haryana and Neemrana

• 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.

• The great strength of Parle Products is the extremely widespread distribution

• Currently, Parle Products has over 33, 00,000 distribution outlets.

• The largest selling biscuit in the world.

• Has a market share of 60% in the glucose biscuits category, worth about Rs.2,000
crores

• Consumed for taste, nourishment and energy by people of all age groups.

• For over 50 years now, it has stood virtually unrivalled for its quality and value for
money.

• Identified with the baby on the pack. She is affectionately called the Parle-G baby.

• Available in different grammages from 25g to 500g catering

• MRP : Re. 1, Rs. 2, Rs. 3, Rs. 4, Rs. 5, Rs. 10, Rs. 20, Rs. 30, Rs. 40 & Rs. 50
The Urban Market Scenario
• The country’s largest selling biscuit brand, Parle-G, and other glucose biscuits are
fast losing their market share to premium products as the potential Indian
consumer develops an appetite for cookies and cream biscuits.
• Market experts opine that the share of glucose biscuits, contributing for more
than half of the Rs 9,500-crore organised biscuit market in the country, has been
going down by 2-3% in a year for the last three to four years.
• Parle-G, which accounts more than 70% to the Parle’s revenues a few of years
back, now contributes to 60-65%. According to a report published by Motilal
Oswal, the glucose segment contributing to ITC Foods’ revenue has been lowered
from 56% in 2007-08 to 48% in the current fiscal.
• Britannia’s largest brand Tiger accounts to just over 20% of the company’s net
revenue.
• This downfall has been witnessed due to the introduction categories of foods such
as cookies, cream, crackers, fortified biscuits and cream wafers.
 Parle beats Britannia as No 1 biscuit co.
Glucose biscuits accounts for more than 50% of the total biscuit market value, Parle G
dominate this market with more than 60% share followed by Britannia and ITC.

With a total turnover of around Rs 4,000 crore coming from biscuits, Parle Products has
emerged as the clear market leader in 2010

Britannia Industries reported a turnover of Rs 3,400 crore for the financial year 2009-10, with
biscuits contributing around Rs 3,000 crore.

Going by the turnover numbers, Parle leads with a margin of Rs 1,000 crore over Britannia.
The Rural Market Scenario
• In the biscuit market, rural India is spoilt for choice with a host of local as well as
national players vying for a share of the consumer’s wallet.
• The biscuit market is estimated at Rs 8,300 crore in rural India
• Aiming for a deeper penetration in rural markets, FMCG majors, are introducing
products small pack sizes and in low price points particularly in the Rs 5 category
as part of their strategy to shore up volumes.
 Parle-G in Rural market

• In India it is a habit to have biscuits along with chai or tea - Parle G is referred to as
"biskut" in rural areas

• Parle G market reach is very high due to its distribution network – Parle G is present
across 2.5-3 million retail outlets

• When asked for biskut to a shopkeeper it simply means Parle-G biscuit in rural areas

• Rural market penetration is 50% – 65%

• Parle-G being a consumable product is not influenced by factors like culture, norms
or values
 Rural Players
• Balaji, Haldiram, Parle and Prakash Snacks.
• Locally manufactured biscuits
• Unpacked baked items (khari)
• Fried eatables (vada paw, bhajiya)
•
 Sales strategy to market Parle G in rural
market – For Consumers
• Targeting younger generation in the rural area i.e. School going
children

• Replacing their snacks from unhealthy food to nutritious Parle G by

• Associating Parle G as health food complete nutrition package

• Associate with Rural Government Initiatives like

•Offering various discounts & schemes during festivals e.g. Parle g hamper
Sales strategy to market Parle G in rural market
– For Retailers
• Organizing display units at the store

• Incentives given to smaller retailer for renovation of their store on

• Organizing health check up for the retailer & their family under slabs of
different schemes

• Offering discounts & trade schemes