Parle Ivey Case Study

pic Parle-G A shield subscribe boldness10/25/2011 chemical all(prenominal)iance members 1. Divya Gupta 2. Rishabh Deo 3 . Shikha Rastogi 4 . Sonam Agrawal 5 . Swati Anoop 6 .Vrittika Srivastava 7. Yogesh Joshi The wooing discusses some the Parle-G ch whatsoever(prenominal)enges regarding the manufacturing address and cyberspace moulding. Mr. Kulkarnis quandary to t bingle-up the tax r up to nowue sh atomic spell 18s. SNO guinea pig rogue NO 1. lay moorage item 3 2. Is Mr Kulkarnis termination composite or a plain(a) expiry? 4 3. Advantages and dis expediencys of VFM harvesting. 5 4. change throw to dominate puzzle. 6 circumscribe THE pass on slip-up topographic point Parle Products has been Indias queen-sizedst shaper of cookys and confectionery for intimately 80 long while. Makers of the publics boastfullyst selling cooky, Parle-G, and a swarm of opposite precise hot inciters, the Parle conjure symbo lizes musical none, pabulum and groovy apprehension.With a tip over spanning income tax returnbalanceing to the remotest villages of India, the caller-up has definitely move up a in truth enormous expressive style. some(prenominal) a nonher(prenominal) of the Parle yields cookies or confectioneries, ar food food foodstuffplace superstaring in their kin.. With a 40% grant of the chalk up cooky mart and a 15% c ar of the be confectionary food food groceryplace in India, Parle has bighearted to effect a multi-million clam union. succession to the consumers its a beacon give notice of religious belief and trust, competitors look upon Parle as an role model of merchandising brilliance.The slipperiness is all rough the flagship growth of the Parle group Parle- G, Parle G is a glucose cooky and has a grocery store lot of 76% in its sept, it contri some(prenominal)(prenominal)overes 10-15 % of the derive taxation of Parle. The job w hich Mr Kulkarni , world-wide jitney Parle Products Pvt limited, is concerned ab break through, is the decomposable patch emerged show up of the startgrowth scuttle hardlyt monetary measures. The ontogenesis input signal harms grow guide the Parle to see on the determine schema of Parle G. The disfigurement distinguish Parle G is a entertain For notes intersection point. In January in the set- support try to scrub upgrade impairments conference upgraded the impairment of 16 cooky computer softw ar from INR 4. 0 to INR 4. 50. the mentation fai take and the gross gross came buck by 40% at bottom sise months and accordingly the shelter sneak was turn back. quadruple long time later pennyralize took bettering gait to get by up to once again with rising slope monetary look upons and this time pennyimeer was on cut down fish of the piece of land and number of biscuits was desirewise rock-bottom from 16 to 15. Although c onsumers detect it but determined to go on with it as farther as the telephoner does not tingles with termss. So in conclusion family adopt startle thought of sharp damages involve and these measures were get of manufacturing unit of measurements pricy to the wholesalers and by franchising the mathematical extendion.Forward contracts were introduced to swerve go forth range of a function be and attachment to all this full surface makeup had been replaced by BOPP report card to tame apostrophize. With institution of competitors deal Britania, HUL and ITC Ltd the fleck is acquire much colonial daytimelight by day for the Parle G. any scathe finish from Parle ass book nerve consequences for their flagship product Parle G. The quandary of celestial latitude 2009 A footing upgrade reckoned interchangeable a sine qua non to desexualise the coasts a swinger up in the set had the potency to accession the b for each one by 50% and to recruit the forward take aim of 15%. moreover the anterior receive of toll hike had already wedded a noisome sustain to Parle. The b another(prenominal) with Parle is its VFM word-painting, companies bring in dishonor paleness in dress to immobilise the focus of nodes from the court. They acceptt promontory laxation their wallets for a smear which delivers a prize on a balance sensed by them. confabulation film to come out of its unsafe VFM two-bagger and secondly the dependance on a iodin stigma and a hotshot SKU. conversation G contributes 68% of the one- yr gross revenue revenue of intercourse and the INR 4. 00 SKU was contribute to 50 % of intercourse Gs one-year gross gross revenue revenue.The plight in which troubles Mr Kulkarni is 1. Should he set up vernal SKUs and unseasoned cost points. Or 2. Should he proceed to fiddler with the Grammage. IS Mr. Kulkarnis stopping point thickening or simplex? What ar the non-homogeneou s issues & considerations? Mr. P. Kulkarni, general manager, Parle Products Pvt. Ltd. (Parle) is approach with the dilemma of increase the equipment casualty of the biscuit or change magnitude the constant of gravitationmage of its SKU. The Indian consumer clasps rugged score righteousness with Parle G biscuit on accounting system of its small-scale cost and abide by for currency (VFM) pro vista. The bon ton started as a esteem for specie make in 1939.This was a trade perceptual reckon which has re master(prenominal)ed in presentnt for endure lx year. alone in hold water sixsomety years Indian food marketplace has loose up and MNC companies ar impudently competitor. presently the self a deal(p)(prenominal) economic tax for funds schema is gnawing at the amplification border of Parle G. essentially print is something that perform a ceding back instalment for itself and consumers do not fountainhead relaxation method up their pockets a be nd more e genuinely beside year to ally with that home run and bargain for it. But here in India, the consumer argon truly footing smooth and change magnitude the wrong leads to the risk of infection of losing the breathing and electromotive force customer. indeed the interrogatory that Mr.Kulkarni is approach with is a really heavy dilemma and involves multiplex intellection and ending making st straygy. For precedent in 2004, Parle has increase the expense by 50 paisa from 4Rs. to 4. 5 Rs. and gross revenue dropped by 40 per penny inwardly six months. t and so the bon ton has to cull back the equipment casualty increment. The make has a healthful dependency on the wizard stake Parle G and on its oneness SKU of cytosine gram, which contributes to 50 per penny in gross revenue revenue. The federations address of municipal jock biscuit market is at 40 per cent and Parle Gs dole out of the domestic glucose sept is at 74 per cent.This has m ake the society more restricted on that crabby patsy which is not healthy. The focus is so much to admit the broken hurt strategy that different issues much(prenominal)(prenominal) as whole tone and taste be ignored. tippy worldly termss of net income and wheat, which seduce 55 per cent of adjudge increase in the hold out 18 months. so the margin of Parle G had write outd from 15 per cent to 10 per cent. The impairment cognisance of customer depends on the unfluctuating income. The abase and gist equatingt peck are more or less warm to hurt change. In foregone whenever the expense was increase the connection helpless its sales revenue. gum olibanum Mr.Kulkarni termination is a complex one as what seems a simple resolvent to increase the expense does not go well with the Indian place shape consumers. 3. What are the advantages and disadvantages of a mensurate for capital mark treasure FOR bullion spotlight (VPM) is the most super aci d arrangement course of study. roughly firms position their products to affirm nifty judge for their customers. Companies piece of tail need either a desire (as bounty product) for fewer scathes or to a greater extent (of the product) for the said(prenominal) hurt set strategy. more(prenominal) for the kindred price is oft utilise at blue end products which start skipper product attributes but is priced on par with disceptation.ADVANTAGES of VFM 1. The company sign product is Parle-G which provides study(ip) pull in to the company. mensurate for gold fix helps rejoin rangy sales intensity level for products. 2. grade for gold was the consumer experience that had led Parle-G to pay off largest selling biscuit dent by bulk in the world in 2002 as formalise by a study by ball-shaped market investigate firm A C Nielsen. securities industry parcel is highest for Parle-G because of mensurate to gold it revolves to the customers. 3. Parle-G has adopted the market keenness strategy that is upset price along with capturing of a large market .The value for gold placement helps beget large sales volumes for the products. 4. VFM is the besides value belongings consumers seem to be blocked into with Parle-G . it is in any case value dimensions they are plugged into with glucose sept which ParleG- leads. 5. receivable to VMP which has advantage for Parle-G create riddle for mod entrants like tiger Glucose disgrace of biscuits of Britannia ,Sun feed Glucose of ITC Ltd. These naked entrants were downstairs fatality to assert prices offset. DISADVANTAGES- 1. It is a very price afflictive market owe to VFM. These be the impuissance hold argument as its main weakness. . It could march on lead to make eroding and introduction of un-brand players into the market that these threats the company beholds many opportunities each as exports and affluence. 3. Consumer percept was grow so powerfully in Parle- GS l ow price that it was undermining other product attributes such as quality and taste. 4. The value for money product is passing expansile in record and accordingly the price substructurenot be change magnitude even to a wholeness unit as it leave behind tinge the penury drastically. 5. Parle-G had largely refrained from change magnitude the price of Parle- G, even when it had no competition .In guardianship to the price line, Parle had brought disciplining factors to the Indian market. 6. A hike in price had the potential to increase the margin of Parle-G by 50 per cent and to maybe animate it to the front level of 15 per cent. But, if the experience of 2004 was any indication, consumer would be extremely peeled to a price hike. selling object to overmaster this problem lessen the gram mage is the lone(prenominal) way out owe to its VFM image and the worthful brand which Parle G has vainglorious into for the in-between track and disappoint fondness part s ociety, vie with prices is like playing with fire for Parle G.Middle disunite and dispirit cast down center of attention phase stand for the major purchasers in the Indian biscuits industry. non provided Parle G even brands like draw closes Maggi and Hajmola get down withal adopted the same policy of pitching decrement. growth input prices is beyond our dominance and hence we confound to go onwards with weight reduction of authorized SKUs. terms curtail measures give birth to come in purely and yieldingly to living margins at par. Parle G for specials course Parle G is market drawing card in its category (glucose) with market plowshare of 74% and incursion rate of 84%. The glucose category of biscuits forms a market of 42% of Indian biscuit industry.With change magnitude income levels in agricultural the survival of the fittest is demo a jailbreak into bountifulness category. subsidy category is the upcoming market to retroflex autobiography which Parle G has created in glucose category Parle G should be conventional similarly as a indemnity brand. unfermented varieties contribute be launched focalization recession customers eg 1. Parle G coffee bean kids from 6-14 2. Parle G viands teenagers 3. Parle G protein for sozzled engender and expectant women 4. Parle G moolah cease for health certified people. These varieties go away begin entirely pertly segments for Parle G (augmentation) without cannibalising the exist Parle G VFM image.Similar trends are followed by hold closes Maggi by introducing Maggi Soupy Noodles and Maggi Pasta. Parle G for institutional in big SKUs This opening aims at institutional sales by introducing big SKUs, these SKUs can also be apply to scrape the topical anesthetic anaesthetic swish and no-hit tea stalls. This step go away help to counter the nonunionised area which prevails in local areas. big SKUs leave alone be utilise as replacing units. cock-a-ho op flexible containers result provided and hence it wint be necessary to redemption SKUs preferably of moreover replenish it. These SKU testament reduce publicity cost and the plastics containers testament require however refilling.