SUMMER TRAINING PROJECT REPORT

ON

“Parle-G”
(In partial fulfillment of the requirement
of BBA III Year Examination.)

SEESION 2010-11

Submitted By: - Submitted To:-

Anuj Jain Mr.
BBA Part III year

LORDS INTERNATIONAL COLLEGE,

CHIKANI,ALWAR
 DECLARATION

This is to certify that the work done on “Parle-G” under the subject Project

Report in Parle Products Pvt. Ltd. Neemrana ALWAR (RAJ.) of summer training

report in partial fulfillment of the requirement for the award of degree of BBA.

This work has not been submitted any where else for any other degree.

Declaration
By:
Anuj Jain
BBA Part III Year
Batch: (2010-11)
 Preface

The aim of this work is to present to the reduce the whole range Parle
Products process is one shortest project with precision and system as well as
adequate necessary to make the project are of practical utility.
Project work is very significant area of core competence for B.B.A. who
occupies a key position in the modern enterprise?
This project report is a comprehensive work with lucid and systematic
presentation of subject matter. Each concept is explained with no of illustration
and diagramed for easy understanding.
Reports also provide information about organization, their profiles, history,
product and services areas.
It describes company rules vision and utility with shortest and sweet
forms.
Perfect records provide conceptual teamwork and explain tools and
techniques of requirement and selection process and their application in real life
situation faced by Marketing Manger.
I trust and believe back the blinding of my academic and practical and
experience has made the report useful not only to the company but also to B.B.A.
 Acknowledgement

The summer training project in Parle Products Pvt. Ltd. Was really
experience for me to have at this early stage of my career.
With corporate guide by Mr. R.K. Kajala (Senior Manger .) for his
invaluable time & attention, throughout my project. He helped to understand the
importance of training programmed in an organization. How do we identity the
need for training and study the evaluation process.
Further I extend my earnest grateful to Mr. V.K. Yadav (Marketing
Manager ) for giving me an opportunity to get associated with Parle Produts Pvt.
Ltd.
I express my sincere thanks to Mr. V.K. Saini (Director of Management
Studies) my project guide Mr. Anuj Sharma (Lecturer). Management Department
for guiding me right forms the inception till the successful completion of the
project. I sincerely acknowledge him or extending their valuable guidance
support for literature, critical reviews of project end the report and above all the
moral support he had provided to me with all stages of this project.

Anuj Jain
(B.B.A)-IIIrd Year
 CONTENTS

1. Introduction to the Industry

2. Introduction to the organization

3. Research Methodology
Title of the study
Duration of the project
Objectives of the study
Type of research
Sample size and method of selecting sample
Scope of study
Limitation of study
1. Facts and findings
2. Analysis and Interpretation
3. SWOT
4. Conclusion
5. Recommendation and Suggestions
6. Appendix
7. Bibliography
NTREPRENEURSHIP
PROJECT
The Parle Story
 1. INTRODUCTION TO THE INDUSTRY
Introduction

A long time ago, when 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.

How Parle fought to make biscuits affordable to all.

Biscuits were very much a luxury food in India, when Parle began production in 1939.
Apart from Glucose and Monaco biscuits, Parle did offer a wide variety of brands.

However, during the Second World War, all domestic biscuit production was diverted to
assist the Indian soldiers in India and the Far East. Apart from this, the shortage of wheat
in those days, made Parle decide to concentrate on the more popular brands, so that
people could enjoy the price benefits.

Thankfully today, there's no dearth of ingredients and the demand for more premium
brands is on the rise. That's why; it now has a wide range of biscuits and mouthwatering
confectionaries to offer.

The strength of the Parle Brand

Over the years, Parle has grown to become a multi-million US Dollar company. Many of
the Parle products - biscuits or confectionaries, are market leaders in their category and
have won acclaim at the Monde Selection, since 1971.

Today, Parle enjoys a 40% share of the total biscuit market and a 15% share of the total
confectionary market, in India. The Parle Biscuit brands, such as, Parle-G, Monaco and
Krackjack and confectionery brands, such as, Melody, Poppins, Mangobite and Kismi,
enjoy a strong imagery and appeal amongst consumers.

Be it a big city or a remote village of India, the Parle name symbolizes quality, health and
great taste! And yet, everyone knows that this reputation has been built, by constantly
innovating and catering to new tastes. This can be seen by the success of new brands,
such as, Hide & Seek, or the single twist wrapping of Mango bite.

In this way, by concentrating on consumer tastes and preferences and emphasizing

Research & Development, the Parle brand grows from strength to strength.

The Quality Commitment

Parle Products has one factory at Mumbai that manufactures biscuits & confectioneries
while another factory at Bahadurgarh, in Haryana manufactures biscuits. Apart from this,
Parle has manufacturing facilities at Neemrana, in Rajasthan and at Bangalore in
Karnataka. The factories at Bahadurgarh and Neemrana are the largest such
manufacturing facilites in India. Parle Products also has 14 manufacturing units for
biscuits & 5 manufacturing units for confectioneries, on contract.

All these factories are located at strategic locations, so as to ensure a constant output &
easy distribution. Each factory has state-of-the-art machinery with automatic printing &
packaging facilities.

ABOUT PARLE

An export packet of Parle Glucose biscuits.

Parle-G or Parle Glucose biscuits are one of the most popular confectionary biscuits in India.

Parle-G is one of the oldest brand names in India and is 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 covering the front. Many counterfeit companies have

attempted to recreate and sell lower quality products of similar names and virtually identical

package design.

The company's slogan is popular among the Indian consumer population, reading G means

Genius. The name, "Parle-G", is derived from the name of the Indian rail station, Vile Parle,

where the Parle production factory is based.

This biscuit is the one of the most popular biscuits and is primarily eaten as a tea-time snack.

Parle Products has been India's largest manufacturer of biscuits and confectionery, for almost 80

years. Makers of the world's largest selling biscuit, Parle-G, and a host of other very popular

brands, the Parle name symbolizes quality, nutrition and great taste. With a reach spanning even

the remotest villages of India , the company has definitely come a very long way since its

inception.

Many of the Parle products - biscuits or confectioneries, are market leaders in their category and

have won acclaim at the Monde Selection, since 1971. 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. While to consumers it's a beacon of faith and trust, competitors look

upon Parle as an example of marketing brilliance.

All Parle products are manufactured under the most hygienic conditions. Great care is exercised

in the selection & quality control of raw materials, packaging materials & rigid quality standards

are ensured at every stage of the manufacturing process. Every batch of biscuits &

confectioneries are thoroughly checked by expert staff, using the most modern equipment.

The Marketing 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 most remote places and in the
smallest of villages with a population of just 500.

Parle has nearly 1,500 wholesalers, catering to 4,25,000 retail outlets directly or indirectly. A two

hundred strong dedicated field force services these wholesalers & retailers. Additionally, there are

31 depots and C&F agents supplying goods to the wide distribution network.

The Parle marketing philosophy emphasizes catering to the masses. It constantly endeavors at

designing products that provide nutrition & fun to the common man. Most Parle offerings are in

the low & mid-range price segments. This is based on the cultivated 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.

The Customer Confidence

The 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.

Today, the Parle brands have found their way into the hearts and homes of people all over India

&

broad. Parle Biscuits and confectioneries, continue to spread happiness & joy among people of

all

ages.

The consumer is the focus of all activities at Parle. Maximizing value to consumers and forging

enduring customer relationships are the core endeavors at Parle.

Parle’s efforts are driven towards maximizing customer satisfaction and this is in synergy
with their quality pledge.
 2.INTRODUCTION TO THE ORGANIZATION

Registered Office

Parle Products Pvt. Ltd.

V.S. Khandekar Marg,
Vile Parle East,
Mumbai - 400057,
Maharashtra.
Tel - (022)6691 6911 - 15. Fax - (022)6691 6926.
For Feedback, email us at - cs@parle.biz

Parle-G

Parle-G has been a strong household name across India. The great taste, high nutrition,
and the international quality, makes Parle-G a winner. No wonder, it's the undisputed
leader in the biscuit category for decades. Parle-G is consumed by people of all ages,
from the rich to the poor, living in cities & in villages. While some have it for breakfast,
for others it is a complete wholesome meal. For some it's the best accompaniment for
chai, while for some it's a way of getting charged whenever they are low on energy.
Because of this, Parle-G is the world's largest selling brand of biscuits. Launched in the
year 1939, it was one of the first brands of Parle Products. It was called Parle Gluco
Biscuits mainly to cue that it was a glucose biscuit. It was manufactured at the Mumbai
factory, Vile Parle and sold in units of half and quarter pound packs.

The incredible demand led Parle to introduce the brand in special branded packs and in
larger festive tin packs. By the year 1949, Parle Gluco biscuits were available not just in
Mumbai but also across the state. It was also sold in parts of North India. By the early
50s, over 150 tonnes of biscuits were produced in the Mumbai factory. Looking at the
success of Parle-G, a lot of other me-too brands were introduced in the market. And these
brands had names that were similar to Parle Gluco Biscuits so that if not by anything else,
the consumer would err in picking the brand. This forced Parle to change the name from
Parle Gluco Biscuits to Parle-G. Parle-G continues to climb the stairs of success. Take a
look at the global market where it is being exported. First came the Middle East then
USA followed by Africa and then Australia. An Indian brand, that's exported to almost
all parts of the world. After all that's what you would expect from Parle-G World's
Largest Selling Biscuit.

PARLE G PRODUCTS:

Know a little more about all the delicious Parle products. From yummy biscuits to lip-smacking

sweetmeats, the Parle product range is a genuine treat for every snack lover. The biscuits alone

have such variety, catering to diverse palettes, there's something for everyone. And the

tantalizing array of sweetmeats is just the cherry on top.

Get your biscuit goodies: Grab your sweets:
Parle - G Melody
Krackjack Mango Bite
Krackjack Crispy Creams Kaccha Mango Bite
Monaco Poppins
Kreams Kismi Toffee

Hide and Seek Kismi Gold

Hide & Seek Milano Orange Candy

Digestive Marie XHale

Price warrior
Parle-G enjoys close to 70% market share in the glucose biscuit segment and has held its price

line for 25 years now. Ranju Sarkar explains how.

It’s a brand that has held its price line at Rs 4 for 25 years now – the price was last raised in 1994

by 25 paise. So, it’s not for nothing that Parle-G is the world’s largest-selling biscuit by volumes.

Not that the company didn’t try to raise prices to offset the overall hike in costs. Three years ago it

did so, but quickly rolled it back after volumes fell sharply and consumers wrote to lodge their

protest.

“We want to cater to the masses and have consciously tried not to increase the price. Parle-G is

available for Rs 50 a kg. There are very few food items that are available for Rs 50-60 a kg,” says

Pravin Kulkarni, General Manager (Marketing), Parle Products.

Parle is, of course, not doing it for charity. Soaring input prices meant it opted for reducing the

weight of the biscuit than increasing the price — first from 100 gm to 92.5 gm in January 2008,

and then to 88 gm in January this year — in line with other biscuit-makers and FMCG players.

Regular customers would have noticed the number of biscuits in a pack come down from 16 to 15

even as each biscuit became lighter, but they seemed to understand the cost pressures on the

firm. The gamble paid off: Parle was able to sustain its volumes.

Ranju Sarkar / New Delhi May 4, 2009, 0:47 IST

Strict cost control at every point in its supply chain also helped — Parle entered into forward

contracts with suppliers, outsourced production, increased the number of manufacturing locations

to 60 and consolidated buying. Raw material costs account for 60 per cent of the total costs in

this segment and packaging costs (plastic films) account for 20-25 per cent of this.

Nirmalaya Kumar, professor of marketing at London Business School, feels it’s a very smart

strategy. “At this price point, price becomes more important than the weight of the biscuit. It’s very

interesting and similar to the dollar stores in the US,” he says.

But price is not its only USP. What makes the Parle G brand tick is also that it has been

positioned on the health platform (a single pack of biscuit offers 450 calories). Its earlier punchline

was Parle-G: swadh bhare, shakti bhare (full of taste and energy). Currently, the brand uses two

punchlines. Parle-G: G for Genius and Hindustan ki Taakat (the country’s strength).

The brand, says Kulkarni, meets different needs of customers: calories (energy), nutrition and

value-for-money — enough reasons why Parle-G enjoys close to 70 per cent market share in the

glucose biscuit category and probably has the deepest reach. It reaches 2.5 million outlets,

including villages with a population of 500 people, on a par with Unilever’s Lifebuoy, ITC’s

cigarettes or mobile pre-paid cards.

It’s also one of the few FMCG brands in the country, whose customers straddle across income

segments.

The brand is estimated to be worth over Rs 2,000 crore, 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.

Competition has, of course, been trying to wean away customers from Parle. Britannia

relaunched its Glucose-D biscuit as Tiger in 1995 and boasts of 17-18 per cent share, while ITC’s

Sunfeast glucose has captured 8-9 per cent, according to industry sources.
Even Levers had forayed into this segment in 2003 and launched a glucose biscuit branded as

Modern, after it acquired the bakery business of Modern. There are strong regional brands,

including Priya Gold (west), Cremica (north) and Anmol (east).

But they still have their work cut out. Nirmalaya Kumar feels the Parle-G story is so fascinating

that it deserves to be a case study. What would be interesting to see is whether it will be able to

retain its leadership in the coming years as income grows in the hinterlands and consumers

upgrade and develop new tastes

BISCUIT INDUSTRY IN INDIA - AN OVERVIEW

1. Biscuit industry in India in the organized sector produces around 60% of the total
production, the balance 40% being contributed by the unorganized bakeries. The
industry consists of two large scale manufacturers, around 50 medium scale brands
and small scale units ranging up to 2500 units in the country, as at
2000-01. The unorganized sector is estimated to have approximately
30,000 small & tiny bakeries across the country.

2. The annual turnover of the organized sector of the biscuit

manufacturers (as at 2001-02) is Rs. 4,350 crores.

3. In terms of volume biscuit production by the organized segment in

2001-02 is estimated at 1.30 million tonnes. The major Brands of
biscuits are - Brittania, Parle Bakeman, Priya Gold,Elite,Cremica,
Dukes, Anupam, Horlicks, Craze, Nezone, besides various
regional/State brands.

4. Biscuit industry which was till then reserved in the SSI Sector, was
unreserved in 1997-98, in accordance with the Govt Policy, based on
the recommendations of the Abid Hussain Committee.

5. The annual production of biscuit in the organized sector, continues to

be predominantly in the small and medium sale sector before and after
de-reservation. The annual production was around 7.4 Lakh tonnes in
1997-98 In the next five years, biscuit production witnessed an annual
growth of 10% to 12%, up to 1999-00.
6. The annual Growth showed a decline of 3.5% in 2000-01, mainly due
to 100% hike in Central Excise Duty (from 9% to 16%). Production in
the year 2001-02 increased very marginally by 2.75% where in 2002-
03 the growth is around 3%.

7. The Union Budget for 2003-04 granted 50% reduction in the rate of
Excise Duty on Biscuit i.e. from 16% to 8%. The Federation's estimate
for the current year indicates a growth of approximately 8% to 9%.

8. However the average utilization of installed capacity by biscuit

manufacturers in the country has been a dismal 60% over the last
decade up to 2001-02.

9. Though dereservation resulted in a few MNCs, i.e. Sara Lee, Kellogs

SmithKline Beecham, Heinz etc entering the biscuit industry in India,
most of them, with the exception of SmithKline Beecham (Horlicks
Biscuits), have ceased production in the country.

10. On the other hand, import of biscuits, specially in the high price
segment has started from 1998-99, but however, the quantum of
imports has not so far increased alarmingly and has remained at
around 3.75% of the consumption of biscuits in the country in the year
2001-02. However, recent imports from china industries cheaper
verities of biscuit, needs to be examined with cautions, especially in
the context of the price as the low margin based domestic industry,
which is operating at 60 % of the total installed capital. Exports of
biscuits from India has been to the extent of 5.5% of the total
production. Export are expected to grow only in the year 2003-04 and
beyond.

11. Biscuit is a hygienically packaged nutritious snack food available at

very competitive prices, volumes and different tastes. According to the
NCAER Study, biscuit is predominantly consumed by people from the
lower strata of society, particularly children in both rural and urban
areas with an average monthly income of Rs. 750.00.

12. Biscuit can he broadly categorized into the following segments:

(Based on productions of 2000-01)

Glucose 44%
Marie 13%
Cream 10%
Crackers 13%
Milk 12%
Others 8%.

13. In recognition of industry's obligations towards the community, being

a part of it, biscuit manufacturers supply biscuits to the social welfare
agencies in all States for the benefit of school children, senior citizens
and other needy sections of the society. FBMI Members have always
responded positively to our appeal as also by the Government, to rush
truck loads of biscuits to the people affected by earthquakes, floods,
famine etc. Our industry has also participated in supplying biscuits to
 the people of war ravaged Afghanistan and presently to the Iraqi
people, under the aegis of the UN.

14. As regards the consumption pattern is concerned. surveys and

estimates by industry from time to time indicate the average
consumption scenario in the four Zones have been more or less close
to each other, as below:

Northern States: 28%

Southern States: 24%
Western States: 25%
Eastern States: 23%

15. Though India is considered as the third largest producer of Biscuits

after USA and China, the per capita consumption of biscuits in our
country is only 2.1 Kg., compared to more than 10 kg in the USA, UK
and West European countries and above 4.25 kg in south cast Asian
countries, Le. Singapore, Hong Kong, Thailand, Indonesia etc. China
has a per capita consumption of 1.90 kg, while in the case of Japan it
is estimated at 7.5 kg.

16. In view of the meager per capita consumption even as penetration of

biscuits manufactured by the organised sector, into rural areas in
India, has been very good during the last 10 years, as also in the
metro and other cities, small towns etc. However, in spite of this, the
industry has not been able to utilize about half of their installed
capacities.

17. Biscuit is a comparatively low margin food product in the PMCG

(Packaged Mass Consumption Goods ) sector. The commodity is also
price sensitive, as a consequence of which, even when the Excise Duty
was doubled on biscuits in 2000-01 biscuit manufacturers, including
the major brands, were not able hike MRPs to the extend of the steep
increase in the Duty. Taxation, both Central Excise Duty as also State
Sales Tax, other miscellaneous levies i.e. turnover tax, local area tax,
mandi taxes, purchase tax, octroi etc etc, has been a major deterrent
in the growth of the biscuit industry. The CII Study Report has
identified Biscuit as one of the products that should treated as "Merit
Good for the purpose of liberal tax policy both by the Centre and
States.

18. Besides lack of technology upgradation in manufacturing, packaging

etc has also been a factor affecting our industry, along with inadequate
financial credit and support particularly for the medium and small scale
biscuit units.

19. On the other hand, the Government of India has identified food
processing industries as a priority area to be encouraged for growth
and development and created the Ministry of Food Processing
Industries (which was till then a Dept in the Ministry of Agriculture),
headed by an Ministry of State with Independent charge.
 20. The Food Processing Ministry has been rendering yeomen service to
the industry, of which biscuit manufacturing is an important part. The
Ministry, with the objective of enabling food processing Industries to
undertake technology upgradation diversification. expansion as also to
set up new units has formulated scheme of Grants and Financial
Assistance. Please see http://www.mofpi.nic.in/

21. Other areas of concern to industries of food products like Biscuits

include multiplicity of food laws and their enforcing agencies in the
Central and State Governments with overlapping functions &
implementation. At the persistent instance of industry organizations
including FBMI the Ministry of FPI took the initiative in evolving an
Integrated Food Act, harmonizing the existing multifarious legislations
enabling better compliance. The Draft Unifled Food Bill 2002 has been
prepared and now awaits approval by the Cabinet and the Parliament,
which will fulfill an important need of the industry and pave way for
accelerated development and growth.

22. Biscuit manufacturing as well as other bakery products like Bread etc
are agro based industries, with the major inputs - wheat flour/atta
sugar, milk vanaspati/vegetable oil etc all being agriculture produces.

23. Industries such as Biscuit are also languishing as they are not able to
achieve their potentials for higher production, in the absence of the
concrete food Processing Industry Policy. FBMI in close coordination
with other organizations and apex Chambers, initiated to urge the
Govt of India to formulate a comprehensive Policy Document, for
smooth growth and harmonious development of the industry. The Food
Processing Industry Policy, which has been evolved as a result of
various workshops, deliberations and representations by a large cross
section of food processing industries, is yet to be finalized. It is hoped
that the Ministry of Food Processing Industries, GOI would initiate
action for implementation of the Policy expeditiously.

24. Biscuit Production

According to the production figures of members available upto the calendar

year 2003, the total production was 625000 tonnes as against 475000 tonnes
in the previous year. The production of biscuit for the last 11 years is as
under:

1993 - 167750 1994 - 180526

1995 - 202567 1996 - 222371
1997 - 362000 1998 - 400000
1999 - 425000 2000 - 450000
2001 - 465000 2002 - 475000
2003 - 625000
Note: the production of members of FBMI consist of 50% (approx) of the total
production of biscuit in the organized sector.
 INDIAN BISCUIUTES INDUSTRY

India Biscuits Industry is the largest among all the food industries and has a turn
over of around Rs.3000 crores. India is known to be the second largest manufacturer
of biscuits, the first being USA. It is classified under two sectors: organized and
unorganized. Bread and biscuits are the major part of the bakery industry and covers
around 80 percent of the total bakery products in India. Biscuits stands at a higher
value and production level than bread. This belongs to the unorganized sector of the
bakery Industry and covers over 70% of the total production.

India Biscuits Industry came into limelight and started gaining a sound status in the
bakery industry in the later part of 20th century when the urbanized society called
for ready made food products at a tenable cost. Biscuits were assumed as sick-man's
diet in earlier days. Now, it has become one of the most loved fast food product for
every age group. Biscuits are easy to carry, tasty to eat, cholesterol free and
reasonable at cost. States that have the larger intake of biscuits are Maharashtra,
West Bengal, Andhra Pradesh, Karnataka, and Uttar Pradesh. Maharashtra and West
Bengal, the most industrially developed states, hold the maximum amount of
consumption of biscuits. Even, the rural sector consumes around 55 percent of the
biscuits in the bakery products.

The total production of bakery products have risen from 5.19 lakh tonnes in 1975 to
18.95 lakh tonnes in 1990. Biscuits contributes to over 33 percent of the total
production of bakery and above 79 percent of the biscuits are manufactured by the
small scale sector of bakery industry comprising both factory and non-factory units.

The production capacity of wafer biscuits is 60 MT and the cost is Rs.56,78,400 with
a motive power of 25 K.W. Indian biscuit industry has occupied around 55-60
percent of the entire bakery production. Few years back, large scale bakery
manufacturers like cadbury, nestle, and brooke bond tried to trade in the biscuit
industry but couldn't hit the market because of the local companies that produced
only biscuits.

The Federation of Biscuit Manufacturers of India (FBMI) has confirmed a bright future
of India Biscuits Industry. According to FBMI, a steady growth of 15 percent per
annum in the next 10 years will be achieved by the biscuit industry of India. Besides,
the export of biscuits will also surpass the target and hit the global market
successfully.

Parle-G or Parle Glucose biscuits are one of the most popular confectionary biscuits in India.

Parle-G is one of the oldest brand names in India and is 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 covering the front. Many counterfeit companies have

attempted to recreate and sell lower quality products of similar names and virtually identical

package design.

The company's slogan is popular among the Indian consumer population, reading G means

Genius. The name, "Parle-G", is derived from the name of the Indian rail station, Vile Parle,

where the Parle production factory is based.

This biscuit is the one of the most popular biscuits and is primarily eaten as a tea-time snack.

Contents
• 1 History
• 2 Products
o 2.1 Biscuit goodies
o 2.2 Sweets

History

In 1929 a small company by the name of Parle products emerged in British dominated India. A

small factory was set up in the suburbs of Mumbai, to manufacture sweets and toffees. A decade

later it was upgraded to manufacture biscuits as well. Since then, the Parle name has grown in all

directions, won international fame and has been selling its products all over India and abroad.

Apart from the factories in Mumbai and Bangalore Parle also has factories in Bahadurgarh in

Haryana, Ahmedabad in Gujarat and Neemrana in Rajasthan, which are the largest biscuit and

confectionery plants in the country. Additionally, Parle Products also has 7 manufacturing units

and 51 manufacturing units on contract.

2. Products
Biscuit goodies

Parle - G, Krackjack, Krackjack Crispy Creams, Monaco, Kreams, Hide and Seek, Hide & Seek

Milano, Digestive Marie, Parle Marie, Milk Shakti, Parle 20-20 Cookies, Namkin Maulik

Sweets

Melody, Mango Bite, Kaccha Mango Bite, Poppins, Kismi Toffee, Kismi Gold, Orange Candy,

XHale

Biscuits-bakery sector looks like a battlefront

Sabyasachi Samajdar, New Delhi

In India per capita consumption of biscuits is estimated at a low 1.5 kg, reflecting the huge
potential for growth of the industry. Over 900 million Indians buy and eat biscuits with varying
frequency in any year.

The penetration of branded product in this segment is quite significant, and is valued at Rs 2,500-
3,000 crore. None of the other wheat-based segments is as developed as the biscuits industry.
The biscuit segment has developed with large markets of mass consumption covering over 90%
of the overall potential market. The Indian biscuits' market is estimated to be 1.1 million tonnes
per annum and valued at over Rs 50 billion. The unorganised sector accounts for over 50% of the
market. The market has been growing at a CAGR of 6-7% pa.

The present biscuits-bakery sector in India looks like a battlefront. The battle being led by
stalwarts like Britannia and Parle with close competition from other companies like ITC, Nutrine,
HLL Kissan, Kwality and even international brands like Kellogs, Nestle, Sara Lee and United
Biscuits.

There are two entrenched players in the biscuits market - Parle and Britannia have 85% of the
market share. Britannia is undoubtedly the leader with brands like Tiger, Little Hearts and Milk
Bikis. Britannia's Tiger brand is selling largely in the rural areas which actually constitute 56% of
the biscuit market. But in the Glucose segment Parle G is the market leader. Also players like
HLL and ITC have huge presence in the market. HLL Bistix (biscuit sticks that can be dipped into
flavours like strawberry and chocolate) is indeed an innovation and low-priced biscuits.

The industry can also be divided brand wise into popular varieties such as Parle-G and Tiger,
medium varieties such as Milk Bikis and Super Milk, and premium varieties such as Good Day
and Monaco. The popular varieties account for close to 40 per cent of the total volumes. If the
Marie category is also included in the sweet biscuits category, it will easily account for close to
80% of the industry's total volumes of 7,75,000 tonnes.

The segment can be further divided into the sweet and savoury. The savoury segment includes
salt biscuits, and the salt and sweet variety accounts for the rest.

According to ACNielsen and ORG-MARG market research in 2003, the strength of the Britannia
brand is demonstrated by the fact that it stands far above all in this fiercely competitive market,
with over 46 per cent market share. Launched in 1997, Tiger became the largest selling Britannia
biscuit brand in just 4 months of launch. It crossed the Rs1 billion sales mark in its very first year.

Parle enjoys a 40% share of the total biscuit market. The Parle biscuit brands, such as Parle-G,
Monaco and Krackjack enjoy a strong imagery and appeal amongst consumers. A comparative
test study done on 12 popular brands of glucose biscuits by an NGO, Voluntary Organisation in
Interest of Consumer Education (Voice), has thrown many surprises with Kellogg's and Priya
Gold ranking a poor 10th and ninth while Horlicks and relatively lesser known Anmol capturing
the top two slots respectively.

According to Herfindahl Index for the biscuit market, the index value is about 2,500. For the bread
business, in which Britannia and Hindustan Lever are the major players, the value would be
above 5,000. These values contain important pointers. They indicate that the competition in the
branded biscuits segment is relatively intense, reflecting the fact that the Indian branded biscuits
industry has a long history. In the branded breads business, it indicates a lower intensity of
competition (in terms of the presence of organised sector players). However, the values change
dramatically if the unorganised sector which accounts for 50% of the total biscuits market is taken
into account. Since the marketshare of the smaller players are widely dispersed and do not add to
the index value, the Herfindahl for the entire industry is close to 1,200 indicating intense
competition.

According to another study, 'Parle G', which claimed to have 8% proteins, actually has just 6.8%
of it while Kellogg's had only 6.2% against the claimed 7.4%. Only claims of 'Britannia Tiger'
matched the actual content. Only 'Parle G' declared the iron content of the biscuit. Other than
'Cremica', 'Priya Gold' and 'Britannia Tiger', none of the brands carries the ISI mark.

In India, there is a huge unorganised sector. Biscuits market on an average grew at 8% per
annum in the last five years. The rural penetration of the branded biscuits segment is also
significant. Towns with populations of less than a lakh contribute significantly to the industry's
turnover, with some estimates placing it at 40%. However, rural markets largely consume lower-
priced varieties, and it is here that branded biscuits meet with stiff competition from the
unorganised sector.

In contrast to biscuits, the size of the organised sector for breads is quite small. It consists of
Modern Foods and Britannia, which do not account for even 10% of the industry's total volumes.
Significantly, Modern Foods was recently taken over by Hindustan Lever. This is expected to
provide a fillip to the organised sector's expansion into the unorganised sector's domain.

Being a perishable product, the bread industry faces numerous challenges. The lack of a modern
well-developed retail network to address these challenges come with the distribution of a
perishable product. It is this factor that gives local units that produce on a small-scale a distinct
advantage - evidently accounting for a predominant share of the total industry, especially in the
rural markets.

The unorganised sector in the biscuits segment does exert pressure on the pricing policies of the
organised players. But only up to a point since the penetration of brands in this business even in
the rural areas is fairly significant. Therefore, the value for only the branded business segment is
more indicative of the industry's competitive pressures. The same holds good for the bread
segment also. While changes in market shares would only indicate how a company has fared
relative to the industry, the changes in the overall competitive intensity can be readily reckoned
by computing the Herfindahl Index. A decline of this value to below 2,000 in the biscuit segment
would indicate that the existing players are not only losing market share, but that their pricing
power is also receding. And, if the value remains constant even with the entry of several players
that would indicate that the hold of the existing players has not slackened at all.

The duty structure still favours the unorganised sector. Except for select low-priced varieties, the
excise duty on biscuits is a hefty 16%. However, bowing to pressure from the Federation of
Biscuit Manufacturers of India, 50% of the excise was exempted for biscuits with a maximum
retail price of Rs 5 for a weight not exceeding 100 grams. This effectively reinstated the status
quo for low-priced biscuits such as Parle-G and Tiger. Overall, it has maintained the potential for
price differentials between low-priced branded biscuits and unbranded biscuits. At the same time,
the differential between low-priced varieties and high-priced varieties appears set to widen.

The toughest competition for estabilished players is coming from the unorganised market. This
market is indeed interesting to study.

CORPORATE SOCIAL RESPONSIBILITY :

Parle Products with its wide platter of offering of biscuits and sweets like Parle-G,
Krackjack, Monaco, Melody, Mango bite and many others since 1929 is also actively
engaged to change & uplift the social face of India. As a part of Corporate Social
Responsibility Policy Parle is keenly involved in the overall development of younger
generation with focused endeavor to built New Face of India and spread happiness & joy
all over.

Parle Centre of Excellence as an institution is dedicated to enrich the lives of people

through conducting various cultural programs across all region to facilitate the all round
development of the children. Every year, Parle organizes Saraswati Vandana in the state
of West Bengal during the festival of Saraswati Puja, inviting schools from all across the
state to participate. The event is one of much fanfare and celebration, keeping alive the
culture and traditions of ages. Our involvement in cultural activities has seen the
inception of Golu Galata in Tamil Nadu, held during Navratri. Its gives a platform to all
the members of a household to showcase their creativity and being judged by immanent
personalities. Thousands of families participate and celebrate the occasion on a grand
scale.

These events give us a chance to interact with children on a one-to-one basis, and
promote our belief of fun and health for the whole family.
Parle – The world of Happiness.

PARLE CORE VALUES

An in-depth understanding of the Indian consumer psyche has helped Parle evolve a
marketing philosophy that reflects the needs of the Indian masses. With products
designed keeping both health and taste in mind, Parle appeals to both health conscious
mothers and fun loving kids. The great tradition of taste and nutrition is consistent in
every pack on the store shelves, even today. The value-for-money positioning allows
people from all classes and age groups to enjoy Parle products to the fullest.

EXPORTS
Parle Products Pvt. Ltd. Is a US $ 450 million conglomerate started in India in 1929. We
are in the business of manufacturing and marketing biscuits and confectionaries.

We have State-of-the-art machinery with automatic printing and packaging facilities. Our
biscuit baking oven is the largest of its type in Asia.

Over the decades the efforts of our Research & Development wing have made the
repertoire of our products grow manifold. In biscuits we have Glucose, Milk, sweet and
salted cream, wafer crème, cumin seed and cheese categories.

In confectionery, we have a range of toffees and hard-boiled candies available in

chocolate, mint, cola, and tropical fruit flavors. Some of these are double layered toffees
and center filled candies packed in rolls or pillow packs, or have single or double twist
wrapping.

Almost all of our products are market leaders in their category and as recognition of their
quality, have won Gold, Silver and Bronze Monde Selection medals since 1971.
ADVERTISEMENT
PARLE – G SPONSORED TELE-SERIES SHAKTIMAN IN 1997
SCHOLARSHIPS
PENETRATION IN MARKET:

In India per capita consumption of biscuits is estimated at a low 1.5 kg, reflecting the
huge potential for growth of the industry. Over 900 million Indians buy and eat biscuits
with varying frequency in any year.

The penetration of branded product in this segment is quite significant, and is valued at
Rs 2,500-3,000 crore. None of the other wheat-based segments is as developed as the
biscuits industry. The biscuit segment has developed with large markets of mass
consumption covering over 90% of the overall potential market. The Indian biscuits'
market is estimated to be 1.1 million tonnes per annum and valued at over Rs 50 billion.
The unorganised sector accounts for over 50% of the market. The market has been
growing at a CAGR of 6-7% pa.

The present biscuits-bakery sector in India looks like a battlefront. The battle being led
by stalwarts like Britannia and Parle with close competition from other companies like
ITC, Nutrine, HLL Kissan, Kwality and even international brands like Kellogs, Nestle,
Sara Lee and United Biscuits.

There are two entrenched players in the biscuits market - Parle and Britannia have 85%
of the market share. Britannia is undoubtedly the leader with brands like Tiger, Little
Hearts and Milk Bikis. Britannia's Tiger brand is selling largely in the rural areas which
actually constitute 56% of the biscuit market. But in the Glucose segment Parle G is the
market leader. Also players like HLL and ITC have huge presence in the market. HLL
Bistix (biscuit sticks that can be dipped into flavours like strawberry and chocolate) is
indeed an innovation and low-priced biscuits.

The industry can also be divided brand wise into popular varieties such as Parle-G and
Tiger, medium varieties such as Milk Bikis and Super Milk, and premium varieties such
as Good Day and Monaco. The popular varieties account for close to 40 per cent of the
total volumes. If the Marie category is also included in the sweet biscuits category, it will
easily account for close to 80% of the industry's total volumes of 7,75,000 tonnes.

The segment can be further divided into the sweet and savoury. The savoury segment
includes salt biscuits, and the salt and sweet variety accounts for the rest.

According to ACNielsen and ORG-MARG market research in 2003, the strength of the
Britannia brand is demonstrated by the fact that it stands far above all in this fiercely
competitive market, with over 46 per cent market share. Launched in 1997, Tiger
became the largest selling Britannia biscuit brand in just 4 months of launch. It crossed
the Rs1 billion sales mark in its very first year.

Parle enjoys a 40% share of the total biscuit market. The Parle biscuit brands, such as
Parle-G, Monaco and Krackjack enjoy a strong imagery and appeal amongst
consumers. A comparative test study done on 12 popular brands of glucose biscuits by
an NGO, Voluntary Organisation in Interest of Consumer Education (Voice), has thrown
many surprises with Kellogg's and Priya Gold ranking a poor 10th and ninth while
Horlicks and relatively lesser known Anmol capturing the top two slots respectively.

According to Herfindahl Index for the biscuit market, the index value is about 2,500. For
the bread business, in which Britannia and Hindustan Lever are the major players, the
value would be above 5,000. These values contain important pointers. They indicate that
the competition in the branded biscuits segment is relatively intense, reflecting the fact
that the Indian branded biscuits industry has a long history. In the branded breads
business, it indicates a lower intensity of competition (in terms of the presence of
organised sector players). However, the values change dramatically if the unorganised
sector which accounts for 50% of the total biscuits market is taken into account. Since
the marketshare of the smaller players are widely dispersed and do not add to the index
value, the Herfindahl for the entire industry is close to 1,200 indicating intense
competition.

According to another study, 'Parle G', which claimed to have 8% proteins, actually has
just 6.8% of it while Kellogg's had only 6.2% against the claimed 7.4%. Only claims of
'Britannia Tiger' matched the actual content. Only 'Parle G' declared the iron content of
the biscuit. Other than 'Cremica', 'Priya Gold' and 'Britannia Tiger', none of the brands
carries the ISI mark.

In India, there is a huge unorganised sector. Biscuits market on an average grew at 8%

per annum in the last five years. The rural penetration of the branded biscuits segment is
also significant. Towns with populations of less than a lakh contribute significantly to the
industry's turnover, with some estimates placing it at 40%. However, rural markets
largely consume lower-priced varieties, and it is here that branded biscuits meet with stiff
competition from the unorganised sector.

In contrast to biscuits, the size of the organised sector for breads is quite small. It
consists of Modern Foods and Britannia, which do not account for even 10% of the
industry's total volumes. Significantly, Modern Foods was recently taken over by
Hindustan Lever. This is expected to provide a fillip to the organised sector's expansion
into the unorganised sector's domain.

Being a perishable product, the bread industry faces numerous challenges. The lack of a
modern well-developed retail network to address these challenges come with the
distribution of a perishable product. It is this factor that gives local units that produce on
a small-scale a distinct advantage - evidently accounting for a predominant share of the
total industry, especially in the rural markets.
The unorganised sector in the biscuits segment does exert pressure on the pricing
policies of the organised players. But only up to a point since the penetration of brands
in this business even in the rural areas is fairly significant. Therefore, the value for only
the branded business segment is more indicative of the industry's competitive pressures.
The same holds good for the bread segment also. While changes in market shares
would only indicate how a company has fared relative to the industry, the changes in the
overall competitive intensity can be readily reckoned by computing the Herfindahl Index.
A decline of this value to below 2,000 in the biscuit segment would indicate that the
existing players are not only losing market share, but that their pricing power is also
receding. And, if the value remains constant even with the entry of several players that
would indicate that the hold of the existing players has not slackened at all.

The duty structure still favours the unorganised sector. Except for select low-priced
varieties, the excise duty on biscuits is a hefty 16%. However, bowing to pressure from
the Federation of Biscuit Manufacturers of India, 50% of the excise was exempted for
biscuits with a maximum retail price of Rs 5 for a weight not exceeding 100 grams. This
effectively reinstated the status quo for low-priced biscuits such as Parle-G and Tiger.
Overall, it has maintained the potential for price differentials between low-priced branded
biscuits and unbranded biscuits. At the same time, the differential between low-priced
varieties and high-priced varieties appears set to widen.

The toughest competition for estabilished players is coming from the unorganised
market. This market is indeed interesting to study.

PRICE WARRIOR

Parle-G enjoys close to 70% market share in the glucose biscuit segment and has held
its price line for 25 years now. Ranju Sarkar explains how.
It’s a brand that has held its price line at Rs 4 for 25 years now – the price was last
raised in 1994 by 25 paise. So, it’s not for nothing that Parle-G is the world’s largest-
selling biscuit by volumes.

Not that the company didn’t try to raise prices to offset the overall hike in costs. Three
years ago it did so, but quickly rolled it back after volumes fell sharply and consumers
wrote to lodge their protest.

“We want to cater to the masses and have consciously tried not to increase the price.
Parle-G is available for Rs 50 a kg. There are very few food items that are available for
Rs 50-60 a kg,” says Pravin Kulkarni, General Manager (Marketing), Parle Products.

Parle is, of course, not doing it for charity. Soaring input prices meant it opted for
reducing the weight of the biscuit than increasing the price — first from 100 gm to 92.5
gm in January 2008, and then to 88 gm in January this year — in line with other biscuit-
makers and FMCG players.

Regular customers would have noticed the number of biscuits in a pack come down from
16 to 15 even as each biscuit became lighter, but they seemed to understand the cost
pressures on the firm. The gamble paid off: Parle was able to sustain its volumes.
Strict cost control at every point in its supply chain also helped — Parle entered into
forward contracts with suppliers, outsourced production, increased the number of
manufacturing locations to 60 and consolidated buying. Raw material costs account for
60 per cent of the total costs in this segment and packaging costs (plastic films) account
for 20-25 per cent of this.

Nirmalaya Kumar, professor of marketing at London Business School, feels it’s a very
smart strategy. “At this price point, price becomes more important than the weight of the
biscuit. It’s very interesting and similar to the dollar stores in the US,” he says.

But price is not its only USP. What makes the Parle G brand tick is also that it has been
positioned on the health platform (a single pack of biscuit offers 450 calories). Its earlier
punchline was Parle-G: swadh bhare, shakti bhare (full of taste and energy). Currently,
the brand uses two punchlines. Parle-G: G for Genius and Hindustan ki Taakat (the
country’s strength).

The brand, says Kulkarni, meets different needs of customers: calories (energy),
nutrition and value-for-money — enough reasons why Parle-G enjoys close to 70 per
cent market share in the glucose biscuit category and probably has the deepest reach. It
reaches 2.5 million outlets, including villages with a population of 500 people, on a par
with Unilever’s Lifebuoy, ITC’s cigarettes or mobile pre-paid cards.

It’s also one of the few FMCG brands in the country, whose customers straddle across
income segments.
The brand is estimated to be worth over Rs 2,000 crore, 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.

Competition has, of course, been trying to wean away customers from Parle. Britannia
relaunched its Glucose-D biscuit as Tiger in 1995 and boasts of 17-18 per cent share,
while ITC’s Sunfeast glucose has captured 8-9 per cent, according to industry sources.

Even Levers had forayed into this segment in 2003 and launched a glucose biscuit
branded as Modern, after it acquired the bakery business of Modern. There are strong
regional brands, including Priya Gold (west), Cremica (north) and Anmol (east).

But they still have their work cut out. Nirmalaya Kumar feels the Parle-G story is so
fascinating that it deserves to be a case study. What would be interesting to see is
whether it will be able to retain its leadership in the coming years as income grows in the
hinterlands and consumers upgrade and develop new tastes.
 Oprah Winfrey – The Entrepreneur

"It doesn't matter who you are, where you come from. The ability to triumph begins
with you, always." - Oprah Winfrey

In a recent website poll, visitors were asked, "Which entrepreneur do you admire most?" The
winner, hands down, was Oprah Winfrey, with nearly double the votes of Bill Gates and four
times Richard Branson. In a career filled with firsts and superlatives, Oprah has managed to
amass a sizable fortune, become one of the most powerful people in the entertainment industry,
and yet maintain a sense of humility and compassion we all should strive to achieve.

Oprah Winfrey's broadcasting career began at age 17, when she was hired by WVOL radio in
Nashville, and two years later signed on with WTVF-TV in Nashville as a reporter/anchor. She
attended Tennessee State University, where she majored in Speech Communications and
Performing Arts.
In 1976, she moved to Baltimore to join WJZ-TV news as a co-anchor, and in 1978 discovered
her talent for hosting talk shows when she became co-host of WJZ-TV's "People Are Talking,"
while continuing to serve as anchor and news reporter.

In January 1984, she came to Chicago to host WLS-TV's "AM Chicago," a faltering local talk
show. In less than a year, she turned "AM Chicago" into the hottest show in town. The format
was soon expanded to one hour, and in September 1985 it was renamed "The Oprah Winfrey
Show."

Seen nationally since September 8, 1986, "The Oprah Winfrey Show" became the number one
talk show in national syndication in less than a year. In June 1987, in its first year of eligibility,
"The Oprah Winfrey Show" received three Daytime Emmy Awards in the categories of
Outstanding Host, Outstanding Talk/Service Program and Outstanding Direction. In June 1988,
"The Oprah Winfrey Show" received its second consecutive Daytime Emmy Award as
Outstanding Talk/Service Program, and she herself received the International Radio and
Television Society's "Broadcaster of the Year" Award. She was the youngest person and only the
fifth woman ever to receive the honor in IRTS's 25-year history.

Her love of acting and her desire to bring quality entertainment projects into production prompted
her to form her own production company, HARPO Productions, Inc., in 1986. Today, HARPO is
a formidable force in film and television production. Based in Chicago, HARPO Entertainment
Group includes HARPO Productions, Inc., HARPO Films and HARPO Video, Inc. In October,
1988, HARPO Productions, Inc. acquired ownership and all production responsibilities for "The
Oprah Winfrey Show" from Capitol Cities/ABC, making Oprah Winfrey the first woman in
history to own and produce her own talk show. The following year, HARPO produced it first
television miniseries, the The Women of Brewster Place, with Oprah Winfrey as star and
Executive Producer. It has been followed by the TV movies There Are No Children Here (1993),
and Before Women Had Wings(1997), which she both produced and appeared in. In 1998, she
starred in the feature film Beloved, from the book by the Nobel Prize-winning American author
Toni Morrison.

In 1991, motivated in part by her own memories of childhood abuse, she initiated a campaign to
establish a national database of convicted child abusers, and testified before a U.S. Senate
Judiciary Committee on behalf of a National Child Protection Act. President Clinton signed the
"Oprah Bill" into law in 1993, establishing the national database she had sought, which is now
available to law enforcement agencies and concerned parties across the country.

Oprah Winfrey was named one of the 100 Most Influential People of the 20th Century by Time
magazine, and in 1998 received a Lifetime Achievement Award from the National Academy of
Television Arts and Sciences. Her influence extended to the publishing industry when she began
an on-air book club. Oprah Book Club selections became instant bestsellers, and in 1999 she was
presented with the National Book Foundation's 50th anniversary gold medal for her service to
books and authors.

She is one of the partners in Oxygen Media, Inc., a cable channel and interactive network
presenting programming designed primarily for women. In 2000, Oprah's Angel Network began
presenting a $100,000 "Use Your Life Award" to people who are using their lives to improve the
lives of others. When Forbes magazine published its list of America's billionaires for the year
2003, it disclosed that Oprah Winfrey was the first African-American woman to become a
billionaire.

Oprah's tremendous appeal comes from the fact that, although certain aspects of her life are very
private, as Patricia Sellers put it, "Oprah's life is the essence of her brand, and her willingness to
open up about it on daytime TV helped win the enduring trust of her audience." Oprah has
maintained strict control of that brand, turning away countless requests for her to lend her name
to a wide variety of products. Everything with her name on it is put out by her company under her
direct supervision. Even the deals with ABC, Oxygen Network, and Hearst Magazines are
basically distribution deals -- she retains full control. She owns 90% of Harpo's stock.

She does, however, have a top-notch behind-the-scenes partner managing the day-to-day running
of the business. Jeff Jacobs, an entertainment lawyer who she originally approached to help with
her AM Chicago contract, is the president and 10% shareholder of Harpo, Inc. He also acts as her
agent and manager for her movie deals.

Winfrey became a millionaire at age 32 when her talk show went national. Because of the amount
of revenue the show generated, Winfrey was in a position to negotiate ownership of the show and
start her own production company. By 1994 the show's ratings were still thriving and Winfrey
negotiated a contract that earned her nine figures a year. Considered the richest woman in
entertainment by the early 1990s, at age 41 Winfrey's wealth crossed another milestone when
with a net worth of $340 millionAlthough blacks are 12% of the U.S. population, Winfrey has
remained the only black person wealthy enough to rank among America's 400 richest people
nearly every year since 1995.

Books and magazines

Winfrey publishes two magazines: O, The Oprah Magazine and O at Home. She has co-authored
five books; at the announcement of her future weight loss book (to be co-authored with her
personal trainer Bob Greene), it was said that her undisclosed advance fee had broken the record
for the world's highest book advance fee, previously held by former U.S. President Bill Clinton
for his autobiography My Life. In 2002 Fortune called O, the Oprah Magazine the most successful
start-up ever in the industry.

Online
Oprah.com is a website created by Winfrey's company to provide resources and interactive
content relating to her shows, magazines, book club, and public charity. Through Oprah.com
Winfrey raised over three million dollars for Katrina victims and helped to capture four accused
child predators. Oprah.com averages more than 100 million page views and more than three
million users per month.

Radio

On February 9, 2006 it was announced that Winfrey signed a $55 million, three-year contract
with XM Satellite Radio to establish a new radio channel. The channel, Oprah & Friends, features
popular contributors to The Oprah Winfrey Show and O and The Oprah Magazine. The channel
broadcasts 24 hours a day, 7 days a week on XM Radio Channel 156. Winfrey's contract requires
her to be on the air 30 minutes a week, 39 weeks a year.
Influential Oprah

As a woman, she has wielded an unprecedented amount of influence over the American culture
and psyche. There has been no other person in the 20th century whose convictions and values
have impacted the American public in such a significant way. She is seen as probably the most
powerful woman in American society. Oprah has influenced every medium that she's touched.

Winfrey's influence reaches far beyond pop-culture and into unrelated industries where many
believe she has the power to cause enormous market swings and radical price changes with a
single comment.

Philanthropy

In 1998, Winfrey began Oprah's Angel Network, a charity aimed at encouraging people around
the world to make a difference in the lives of underprivileged others. Accordingly, Oprah's Angel
Network supports charitable projects and provides grants to nonprofit organizations around the
world that share this vision. To date, Oprah's Angel Network has raised more than $51,000,000.
Winfrey personally covers all administrative costs associated with the charity, so 100% of all
funds raised go to charity programs.
Although Winfrey's show is known for raising money through her public charity and the cars and
gifts she gives away on TV are often donated by corporations in exchange for publicity, behind
the scenes Winfrey personally donates more of her own money to charity than any other show-
business celebrity in America. In 2005 she became the first black person listed by Business Week
as one of America's top 50 most generous philanthropists, having given an estimated $250
million. Despite being the 235th richest American in 2005, Winfrey was the 32nd most
philanthropic. Her philanthropy has included a $10 million donation to Hurricane Katrina relief.
Winfrey also put 100 black men through college with $7 million in scholarships.

Future projects

In late 2006 Winfrey’s Harpo production revealed plans to bring two new reality TV shows to the
air. One of the series is tentatively titled Oprah Winfrey's The Big Give, and presents 10 people
with large sums of money and resources and they must compete to find the most powerful,
sensational, emotional and dramatic ways to give to others. The second show, tentatively titled
Your Money or Your Life, will unleash an expert action team every week to aid a family in
overcoming a crisis through a total money and life makeover.

"India's per capita biscuit consumption is only 2.1kg"

By Akansha Srivastava

It has been fifteen years and Priyagold, the leading brand of biscuit manufacturing
company Surya Food & Agro Ltd has managed to hold against the goliaths of the market
and has nurtured its national aspiration, with a single mindset of making the company's
product line, a household favorite. From the onset, the founder of the company BP
Agarwal focused on the great taste in affordable price formula and decided to position
the mass by a remarkable distribution network growth and thriving marketing strategies.
Presently, Priyagold accounts for 90 per cent of the Rs 4 billion turnover the company
clocked in 2008 and has expanded its footprint from its home base of Delhi into most
parts of the north — Uttar Pradesh, Haryana, Punjab, Rajasthan — as well as the West.
Further, the company hopes that in the near future it will be able to storm the south as
well starting with Andhra Pradesh and then moving on to Karnataka and Tamil Nadu.

After establishing foothold in Biscuit industry, Agarwal continued to adopt a strategy to

identify and commercialise profitable growth opportunities by leveraging established
brand and distribution network, diversified into manufacturing of fruit juices through
another company Surya Fresh Foods. In December 2008, he also diversified into
manufacturing of chocolate, toffee and candy through another company Surya Processed
Food. In an interaction with IndiaRetailing, Agarwal gives an insight about the cut throat
completion with the major players at the retail shelves and his surviving mantra of
success.

IndiaRetailing (IR): How big is India's biscuit industry? What steps are
needed by Indian players to strengthen footholds in global arena of the
segment?
BP Agarwal (BPA): Indian biscuit Industry is the considered as the third largest
producer of biscuits after USA and China. It is one of the fastest growing sectors within
the food industries and has an estimated turnover of around Rs 65 billion. Biscuit
manufacturing in India is huge and is constantly growing at a rate of 12-15 per cent per
annum.

Indian biscuit manufacturers can penetrate into international market in a bigger and
bolder way by taking off the excise duties for biscuit products, focusing on quality
standards and thereby maintaining them, adhering to world class packaging technique
and working upon helpful policies.

IR: Established in 1993, how has been the journey so far?

BPA: We began our journey under the banner Surya Food & Agro Ltd. with a single
mindset of making the company's product line a household favorite and we have a seen a
tremendous growth in the past 15 years and are growing at the rate of 25 per cent every
year.
Our trademark products Priyagold and Treat have emerged as one of the most powerful
brands in FMCG sector. Today, we manufacture 54 varieties of biscuits like Butterbite,
Marie, Cheezebits and many more that have already created an appeal and are in great
demand. Keeping up with the market's demand chain, we entered into the beverage
market in 2006 and are currently marketing fruit juices. We have imported various
world class machinery to ensure that our products reach the customer in a hygienic and
with its freshness intact.

IR: What are your plans for the expansion of your product portfolio this
year and further? How do you plan to extend your distribution network?
BPA: As part of our expansion plan this year, we are diversifying our product portfolio
and are launching chocolates, cookies and toffee. We have already invested Rs 300
million for this and have set up state of the art facility at Sidcul, Haridwar for the
production of chocolates, cookies and toffee which is spread over an area of 10 acres of
land. In chocolates, we are initially launching hard chocolate and wafer coated chocolate.

We have also set up a new plant in Haridwar for the production of juices in order to
expand the capacity of the juice manufacturing. Further to our investment plan, we are
planning to set-up a biscuit manufacturing capacity in Hyderabad within next two years
to cater to southern market. Moreover, we also plan to upgrade all our existing
manufacturing facilities. We are exporting biscuits, fruit juices, fruit drinks to Middle
East, South African countries but presently, our contribution of exports to our total
revenues accounts for about 4 to 5 per cent, therefore we are rapidly focusing on
increasing the same.

We hope that our new products will add significantly to our revenue during 2009-10 as
we are targeting Rs 5 billion turnover mark.

IR: Who are the major domestic players in the segment? What are factors
required to be taken care of by Indian snacks/food stuff including
confectionery manufacturers to compete with the foreign manufacturers?
BPA: There are very limited players in the biscuit manufacturing sector. Parle and
Britannia are the market leaders with a market share of 30 per cent each. Some of the
imported brands of biscuits are nowadays easily available in the market. But still Indian
manufacturers have not been affected at large the reason being the price disparity. Also,
innovation is the key to survival for the companies. Our Indian domestic market is large
and continuously expanding and can accommodate players like us and other foreign
manufacturers also.

IR: Are you planning marketing initiatives to boom the sale?

BPA: On the marketing front, since we are announcing our new product launches, we
are set to come out with multi-media campaigns which will include television
commercials, radio advertising and print advertising. It will not only make the potential
customer aware of the products and services we are offering but also help in influencing
the purchasing decision of our customers. It will also create immense brand recall value
of our products.

On the pricing strategy, we have opted for competitive prices to gain a leading edge over
our competitors since our objective is to provide products at affordable prices without
compromising on the quality of the products.
Further, we are constantly undertaking market surveys before the introduction of any
new product in the market to seek the information regarding the consumer preference of
our products and will continue to invest on our brands and market infrastructure and
build on competencies of our team.

IR: Which markets do you find more fruitful – domestic market or

exporting to international markets?
BPA: The international market is a platform for players of varied spheres to export and
transact with the international business community. Although the market for biscuits in
India is growing at a very steady rate of 12-15 per cent per annum, the per capita
consumption in our country is only 2.1 kg per annum, compared to more than 10 kg in
the USA, UK and Western European countries. Therefore, we cannot ignore our Indian
domestic market, as it is large and continuously expanding. For us both international
and Indian markets are important for the growth of our industry.

IR: Which are the potential export markets?

BPA: Our main target markets are in UAE, Afghanistan, Pakistan, USA, European
Countries, East Asian countries. Our quality products are in great demand in all these
above named markets. Presently, we are exporting biscuits, fruit juices, fruit drinks to
Middle East, South African countries and receiving offers from other Asian countries.
Presently our contribution of exports to our total revenues accounts for about 4-5 per
cent but we are rapidly focusing on increasing the same. We need to regularly work on
the quality and price aspect to cater to the competitive global market.

 In today's scenario, quality and price factor decides the future of a Biscuit
manufacturer
Mr Arun Sharma ( Sales Manager - Surya Food & Agro Ltd.)

--------------------------------------------------------------------------------

Your company was established in 1993. How do you reckon the growth of your company all
these years?

Biscuits rule the menu of snacks, and we have been ruling the hearts of biscuit lovers since our
inception in 1993. We began our journey under the banner Surya Food & Agro Ltd. with a single
mindset of making the company's product line a household favorite. Mr. B.P. Agarwal, Chairman
of Surya Food & Agro Ltd. believed in setting up exemplary standards within the Biscuit industry
and came out with various marketing strategies and approved quality standards to mark the
company's colossus presence in its arena. With Mr. Agarwal's vision and his knowledge, Surya
generated a turnover of an overwhelming Rs. 400 crore in just 13 years accelerated by a
commendable growth rate. Our superlative quality standards has made it all possible. The
company will be coming up with Asia's biggest and largest factory in Greater Noida. Today, we
manufacture 54 varieties of biscuits like Butterbite, Marie, Cheezebits, etc. that have already
created an appeal and are in great demand. Keeping up with the market's demand chain we have
recently entered into the beverage market and are currently marketing fruit juices in carton- "
Fresh Gold". We have imported various world class machinery to ensure that our products reach
the customer in a hygienic and with its freshness intact.

Which markets do you find more fruitful – domestic market or exporting to international
markets?

The international market is a platform for players of varied spheres to export and transact with the
international business community thus expanding their trade horizons and accelerating their
growth and development. It has its own charm and is tempting enough for biscuit manufacturers
to explore. Yet we cannot ignore our Indian domestic market, as it is large and continuously
expanding. It can accommodate players like us and small time players too. In India per capita
consumption is 1.3kg per year, whereas at the global level, it is 6.2 kg per year. For us both
International and Indian markets are important for the growth of our industry.

How big is India's biscuit industry? What steps you think are needed to capture huge global share
by Indian players?

India's biscuit Industry comprising large, small players and bakery items Indian market is worth
Rs.50,000 million & this mammoth sphere is growing at fairly fast pace. With this relatively fast
pace development & growth, we can also look at capturing a good share at global market which is
like a giant elephant. Indian biscuit manufacturers can penetrate the International market in a
bigger and bolder way if certain concrete steps are taken, some of which are as follows:
» Taking off the excise duties for biscuit products
» Focus on quality standards and thereby maintaining them
» Adhering to world class packaging technique
» Working upon helpful policies.
Do you think Indian Snacks/Food Stuff including confectionery manufacturers are in threat of
invasion of foreign made products into India?

Foreign made products are nowadays easily available in the market. Still Indian manufacturers
have not been affected at large. The reason for this can be attributed to the price disparity. If
foreign manufacturers also reduce the prices & start selling their products at competitive prices in
comparison to domestic Indian players then Indian manufacturers could suffer. In such scenario
Domestic Companies who come out with quality products at cost-effective prices and in various
varieties will be able to survive & make their presence felt.

Last year you forayed into beverages (juices) market which is largely dominated by large cola
companies. What is the market response to your new offerings?

Our entrance into the juice market was well planned and we had taken care of the minutest details
including the quality standards, the packaging of the cartons etc.. Our well planned strategies
have helped us to capture quite a influential share of the market. We were appreciated with a
good and encouraging response. To keep on giving the other juice manufacturers a taste of
competition, we are formulating various strategies so as to consolidate the market share.

Do you face challenges from small local manufacturers who at times also come out with
counterfeit products?

Counterfeit products do affect the market share of a company to some extent. They are like weeds
that trap the market unconsciously. They grow back even if you uproot them. We, at Surya Food
& Agro Ltd., try & take various steps in order to face this unwanted challenge from these
counterfeit products. We need to follow and implement certain steps to curb this challenge, some
of which are enumerated below:

» Hologram your products.

» Educating the distributor and the end consumers about the difference between counterfeit
products and authenticity of our brand.
» Changing of packaging from time to time.
» Keeping track on such producers and informing the law authority of their presence.
Which are prospective export markets for your industry?

UAE, Afghanistan, Pakistan, USA, European Countries, East Asian Countries are our targeted
markets. Our quality products are in great demand in all these above named markets. We need to
regularly work on the quality & price aspect to cater to the competitive global market.

Where do you see Surya Food & Agro Ltd. after 5 years from now?

We have been growing by leaps and bounds since our inception. We envisage generating a
turnover of Rs. 1000 crore by 2010. We are also planning to more varieties of products to our
existing product range and expect to expand our export markets in a big way without disturbing
our foothold on the domestic market.

Kindly enlighten new entrepreneurs who wish to foray into your industry type.

The biscuit manufacturing sector is a challenging arena. It’s a challenging market for the new
players who plan to enter the market. The old & new players regularly should follow certain
parameters to ensure a smooth sail & sustained growth. Some of them are outlined below:

» Keep check on competition

» Strong Focus on quality
» Survey the market closely before launch
» Focus on R&D
» Thorough knowledge of the product.

What is the importance of R&D in your sector?

The R&D is the backbone of any company and hence an indispensable department. R&D is of
immense importance in our sector as well. This department carries regular tests to ensure the
taste, hygiene, and quality of the products. Our products regularly undergo stringent quality
checks in order to come out with quality products which has a long life. We strictly adhere to the
set quality norms set by the Industry standards
 3. RESEARCH METHODOLOGY

TITLE OF THE STUDY

 BRAND PERFORMANCE ANALYSIS

 Brand

A brand is a name or trademark connected with a product or producer.[1] Brands have

become increasingly important components of culture and the economy, now being
described as "cultural accessories and personal philosophies".[2][page needed]
Contents
• 1 Concepts
o 1.1 Brand name
o 1.2 Brand identity
• 2 Branding approaches
o 2.1 Company name
o 2.2 Individual branding
o 2.3 Attitude branding and Iconic brands
o 2.4 "No-brand" branding
o 2.5 Derived brands
o 2.6 Brand extension
o 2.7 Multi-brands
o 2.8 Own brands and generics
• 3 History

1. Concepts
Some people distinguish the psychological aspect of a brand from the experiential aspect.
The experiential aspect consists of the sum of all points of contact with the brand and is
known as the brand experience. The psychological aspect, sometimes referred to as the
brand image, is a symbolic construct created within the minds of people and consists of
all the information and expectations associated with a product or service.
People engaged in branding seek to develop or align the expectations behind the brand
experience, creating the impression that a brand associated with a product or service has
certain qualities or characteristics that make it special or unique. A brand is therefore one
of the most valuable elements in an advertising theme, as it demonstrates what the brand
owner is able to offer in the marketplace. The art of creating and maintaining a brand is
called brand management. Brand management also consists of presenting a uniform
marketing message across the whole operations of a business[3]. By using Corporate
Identity manuals brand consistency is maintained.
Careful brand management, supported by a cleverly crafted advertising campaign, can be
highly successful in convincing consumers to pay remarkably high prices for products
which are inherently extremely cheap to make. This concept, known as creating value,
essentially consists of manipulating the projected image of the product so that the
consumer sees the product as being worth the amount that the advertiser wants him/her to
see, rather than a more logical valuation that comprises an aggregate of the cost of raw
materials, plus the cost of manufacture, plus the cost of distribution. Modern value-
creation branding-and-advertising campaigns are highly successful at inducing consumers
to pay, for example, 50 dollars for a T-shirt that cost a mere 50 cents to make, or 5 dollars
for a box of breakfast cereal that contains a few cents' worth of wheat.
A brand which is widely known in the marketplace acquires brand recognition. When
brand recognition builds up to a point where a brand enjoys a critical mass of positive
sentiment in the marketplace, it is said to have achieved brand franchise. One goal in
brand recognition is the identification of a brand without the name of the company
present. For example, Disney has been successful at branding with their particular script
font (originally created for Walt Disney's "signature" logo), which it used in the logo for
go.com.
Consumers may look on branding as an important value added aspect of products or
services, as it often serves to denote a certain attractive quality or characteristic (see also
brand promise). From the perspective of brand owners, branded products or services also
command higher prices. Where two products resemble each other, but one of the products
has no associated branding (such as a generic, store-branded product), people may often
select the more expensive branded product on the basis of the quality of the brand or the
reputation of the brand owner.

Brand name
The brand name is often used interchangeably within "brand", although it is more
correctly used to specifically denote written or spoken linguistic elements of any product.
In this context a "brand name" constitutes a type of trademark, if the brand name
exclusively identifies the brand owner as the commercial source of products or services.
A brand owner may seek to protect proprietary rights in relation to a brand name through
trademark registration. Advertising spokespersons have also become part of some brands,
for example: Mr. Whipple of Charmin toilet tissue and Tony the Tiger of Kellogg's.
Brand names will fall into one of three spectrums of use - Descriptive, Associative or
Freestanding.
Descriptive brand names assist in describing the distinguishable selling point(s) of the
product to the customer (eg Snap Crackle & Pop or Bitter Lemon).
Associative brand names provide the customer with an associated word for what the
product promises to do or be (e.g. Walkman, Sensodyne or Natrel)
Finally, Freestanding brand names have no links or ties to either descriptions or
associations of use. (eg Mars Bar or Pantene)
The act of associating a product or service with a brand has become part of pop culture.
Most products have some kind of brand identity, from common table salt to designer
jeans. A brandnomer is a brand name that has colloquially become a generic term for a
product or service, such as Band-Aid or Kleenex, which are often used to describe any
kind of adhesive bandage or any kind of facial tissue respectively.
Brand identity
A product identity, or brand image are typically the attributes one associates with a brand,
how the brand owner wants the consumer to perceive the brand - and by extension the
branded company, organization, product or service. The brand owner will seek to bridge
the gap between the brand image and the brand identity.[4] Effective brand names build a
connection between the brand personality as it is perceived by the target audience and the
actual product/service. The brand name should be conceptually on target with the
product/service (what the company stands for). Furthermore, the brand name should be
on target with the brand demographic. [5] Typically, sustainable brand names are easy to
remember, transcend trends and have positive connotations. Brand identity is
fundamental to consumer recognition and symbolizes the brand's differentiation from
competitors.
Brand identity is what the owner wants to communicate to its potential consumers.
However, over time, a products brand identity may acquire (evolve), gaining new
attributes from consumer perspective but not necessarily from the marketing
communications an owner percolates to targeted consumers. Therefore, brand
associations become handy to check the consumer's perception of the brand.[6]
2. Branding approaches
Company name
Often, especially in the industrial sector, it is just the company's name which is promoted
(leading to one of the most powerful statements of "branding"; the saying, before the
company's downgrading, "No one ever got fired for buying IBM").
In this case a very strong brand name (or company name) is made the vehicle for a range
of products (for example, Mercedes-Benz or Black & Decker) or even a range of
subsidiary brands (such as Cadbury Dairy Milk, Cadbury Flake or Cadbury Fingers in the
United States).
1. Individual branding
Main article: Individual branding
Each brand has a separate name (such as Seven-Up or Nivea Sun (Beiersdorf)), which
may even compete against other brands from the same company (for example, Persil,
Omo, Surf and Lynx are all owned by Unilever).
Attitude branding and Iconic brands
Attitude branding is the choice to represent a larger feeling, which is not necessarily
connected with the product or consumption of the product at all. Marketing labeled as
attitude branding include that of Nike, Starbucks, The Body Shop, Safeway, and Apple
Computer.[2] In the 2000 book Italic text No Logo', Naomi Klein describes attitude
branding as a "fetish strategy".
"A great brand raises the bar -- it adds a greater sense of purpose to the experience,
whether it's the challenge to do your best in sports and fitness, or the affirmation that the
cup of coffee you're drinking really matters." - Howard Schultz (president, ceo and
chairman of Starbucks)
Iconic brands are defined as having aspects that contribute to consumer's self-expression
and personal identity. Brands whose value to consumers comes primarly from having
identity value comes are said to be "identity brands". Some of these brands have such a
strong identity that they become more or less "cultural icons" which makes them iconic
brands. Examples of iconic brands are: Apple Computer, Nike and Harley Davidson.
Many iconic brands include almost rituals-like behaviour when buying and consuming
the products.
There are four key elements to creating iconic brands (Holt 2004): 1. "Necessary
conditions" - The performance of the product must at least be ok preferably with a
reputationof having good quality. 2. "Myth-making" - A meaningful story-telling
fabricated by cultural "insiders". These must be seen as legitimate and respected by
consumers for stories to be accepted. 3. "Cultural contradictions" - Some kind of
mismatch between prevailing ideology and emergent undercurrents in society. In other
words a difference with they way consumers are and how they some times wish they
were. 4. "The cultural brand management process" - Activly engaging in the myth-
making process making sure the brand maintains its position as an icon.
"No-brand" branding
Recently a number of companies have successfully pursued "No-Brand" strategies,
examples include the Japanese company Muji, which means "No label" in English (from
無印良品 – "Mujirushi Ryohin" – literally, "No brand quality goods"). Although there is
a distinct Muji brand, Muji products are not branded. This no-brand strategy means that
little is spent on advertisement or classical marketing and Muji's success is attributed to
the word-of-mouth, a simple shopping experience and the anti-brand movement. Another
brand which is thought to follow a no-brand strategy is American Apparel, which like
Muji, does not brand its products.[7][8][9]
Derived brands
In this case the supplier of a key component, used by a number of suppliers of the end-
product, may wish to guarantee its own position by promoting that component as a brand
in its own right. The most frequently quoted example is Intel, which secures its position
in the PC market with the slogan "Intel Inside".
Brand extension
The existing strong brand name can be used as a vehicle for new or modified products;
for example, many fashion and designer companies extended brands into fragrances,
shoes and accessories, home textile, home decor, luggage, (sun-) glasses, furniture,
hotels, etc.
Mars extended its brand to ice cream, Caterpillar to shoes and watches, Michelin to a
restaurant guide, Adidas and Puma to personal hygiene. Dunlop extended its brand from
tires to other rubber products such as shoes, golf balls, tennis racquets and adhesives.
There is a difference between brand extension and line extension. When Coca-Cola
launched "Diet Coke" and "Cherry Coke" they stayed within the originating product
category: non-alcoholic carbonated beverages. Procter & Gamble (P&G) did likewise
extending its strong lines (such as Fairy Soap) into neighboring products (Fairy Liquid
and Fairy Automatic) within the same category, dish washing detergents.
Multi-brands
Alternatively, in a market that is fragmented amongst a number of brands a supplier can
choose deliberately to launch totally new brands in apparent competition with its own
existing strong brand (and often with identical product characteristics); simply to soak up
some of the share of the market which will in any case go to minor brands. The rationale
is that having 3 out of 12 brands in such a market will give a greater overall share than
having 1 out of 10 (even if much of the share of these new brands is taken from the
existing one). In its most extreme manifestation, a supplier pioneering a new market
which it believes will be particularly attractive may choose immediately to launch a
second brand in competition with its first, in order to pre-empt others entering the market.
Individual brand names naturally allow greater flexibility by permitting a variety of
different products, of differing quality, to be sold without confusing the consumer's
perception of what business the company is in or diluting higher quality products.
Once again, Procter & Gamble is a leading exponent of this philosophy, running as many
as ten detergent brands in the US market. This also increases the total number of
"facings" it receives on supermarket shelves. Sara Lee, on the other hand, uses it to keep
the very different parts of the business separate — from Sara Lee cakes through Kiwi
polishes to L'Eggs pantyhose. In the hotel business, Marriott uses the name Fairfield Inns
for its budget chain (and Ramada uses Rodeway for its own cheaper hotels).
Cannibalization is a particular problem of a "multibrand" approach, in which the new
brand takes business away from an established one which the organization also owns.
This may be acceptable (indeed to be expected) if there is a net gain overall.
Alternatively, it may be the price the organization is willing to pay for shifting its
position in the market; the new product being one stage in this process.
Own brands and generics
With the emergence of strong retailers the "own brand", a retailer's own branded product
(or service), also emerged as a major factor in the marketplace. Where the retailer has a
particularly strong identity (such as Marks & Spencer in the UK clothing sector) this
"own brand" may be able to compete against even the strongest brand leaders, and may
outperform those products that are not otherwise strongly branded.
Concerns were raised that such "own brands" might displace all other brands (as they
have done in Marks & Spencer outlets), but the evidence is that — at least in
supermarkets and department stores — consumers generally expect to see on display
something over 50 percent (and preferably over 60 percent) of brands other than those of
the retailer. Indeed, even the strongest own brands in the UK rarely achieve better than
third place in the overall market.
This means that strong independent brands (such as Kellogg's and Heinz), which have
maintained their marketing investments, are likely to continue their strong performance.
More than 50 per cent of UK FMCG brand leaders have held their position for more than
two decades, although it is arguable that those which have switched their budgets to "buy
space" in the retailers may be more exposed.
The strength of the retailers has, perhaps, been seen more in the pressure they have been
able to exert on the owners of even the strongest brands (and in particular on the owners
of the weaker third and fourth brands). Relationship marketing has been applied most
often to meet the wishes of such large customers (and indeed has been demanded by them
as recognition of their buying power). Some of the more active marketers have now also
switched to 'category marketing' - in which they take into account all the needs of a
retailer in a product category rather than more narrowly focusing on their own brand.
At the same time, probably as an outgrowth of consumerism, "generic" (that is,
effectively unbranded) goods have also emerged. These made a positive virtue of saving
the cost of almost all marketing activities; emphasizing the lack of advertising and,
especially, the plain packaging (which was, however, often simply a vehicle for a
different kind of image). It would appear that the penetration of such generic products
peaked in the early 1980s, and most consumers still appear to be looking for the qualities
that the conventional brand provides.
3. History
Although connected with the history of trademarks[10] and including earlier examples
which could be deemed "protobrands" (such as the marketing puns of the "Vesuvinum"
wine jars found at Pompeii[11]), brands in the field of mass-marketing originated in the
19th century with the advent of packaged goods. Industrialization moved the production
of many household items, such as soap, from local communities to centralized factories.
When shipping their items, the factories would literally brand their logo or insignia on the
barrels used, extending the meaning of "brand" to that of trademark.
Bass & Company, the British brewery, claims their red triangle brand was the world's
first trademark. Lyle’s Golden Syrup makes a similar claim, having been named as
Britain's oldest brand, with its green and gold packaging having remained almost
unchanged since 1885.
Cattle were branded long before this; the term "maverick", originally meaning an
unbranded calf, comes from Texas rancher Samuel Augustus Maverick who, following
the American Civil War, decided that since all other cattle were branded, his would be
identified by having no markings at all.
Factories established during the Industrial Revolution, generating mass-produced goods
and needed to sell their products to a wider market, to a customer base familiar only with
local goods. It quickly became apparent that a generic package of soap had difficulty
competing with familiar, local products. The packaged goods manufacturers needed to
convince the market that the public could place just as much trust in the non-local
product. Campbell soup, Coca-Cola, Juicy Fruit gum, Aunt Jemima, and Quaker Oats
were among the first products to be 'branded', in an effort to increase the consumer's
familiarity with their products. Many brands of that era, such as Uncle Ben's rice and
Kellogg's breakfast cereal furnish illustrations of the problem.
Around 1900, James Walter Thompson published a house ad explaining trademark
advertising. This was an early commercial explanation of what we now know as
branding. Companies soon adopted slogans, mascots, and jingles which began to appear
on radio and early television. By the 1940s,[12] manufacturers began to recognize the
way in which consumers were developing relationships with their brands in a
social/psychological/anthropological sense.
From there, manufacturers quickly learned to build their brand's identity and personality
(see brand identity and brand personality), such as youthfulness, fun or luxury. This
began the practice we now know as "branding" today, where the consumers buy "the
brand" instead of the product. This trend continued to the 1980s, and is now quantified in
concepts such as brand value and brand equity. Naomi Klein has described this
development as "brand equity mania".[2] In 1988, for example, Philip Morris purchased
Kraft for six times what the company was worth on paper; it was felt that what they really
purchased was its brand name.
Marlboro Friday: April 2, 1993 - marked by some as the death of the brand[2] - the day
Philip Morris declared that they were to cut the price of Marlboro cigarettes by 20%, in
order to compete with bargain cigarettes. Marlboro cigarettes were notorious at the time
for their heavy advertising campaigns, and well-nuanced brand image. In response to the
announcement Wall street stocks nose-dived[2] for a large number of 'branded'
companies: Heinz, Coca Cola, Quaker Oats, PepsiCo. Many thought the event signalled
the beginning of a trend towards "brand blindness" (Klein 13), questioning the power of
"brand value".

Brand loyalty

Brand loyalty, in marketing, consists of a consumer's commitment to repurchase or

otherwise continue using the brand and can be demonstrated by repeated buying of a
product or service or other positive behaviors such as word of mouth advocacy.[1]
Brand loyalty is more than simple repurchasing, however. Customers may repurchase a
brand due to situational constraints, a lack of viable alternatives, or out of convenience.
[2] Such loyalty is referred to as "spurious loyalty". True brand loyalty exists when
customers have a high relative attitude toward the brand which is then exhibited through
repurchase behavior.[1] This type of loyalty can be a great asset to the firm: customers
are willing to pay higher prices, they may cost less to serve, and can bring new customers
to the firm.[3][4] For example, if Joe has brand loyalty to Company A he will purchase
Company A's products even if Company B's are cheaper and/or of a higher quality.
An example of a major brand loyalty program that extended for several years and spread
worldwide is Pepsi Stuff. Perhaps the most significant contemporary example of brand
loyalty is the dedication that many Mac users show to the Apple company and its
products.
From the point of view of many marketers, loyalty to the brand - in terms of consumer
usage - is a key factor:

Loyalty

A second dimension, however, is whether the customer is committed to the brand. Philip
Kotler, again, defines four patterns of behaviour:
1. Hardcore Loyals - who buy the brand all the time.
2. Softcore Loyals - loyal to two or three brands.
3. Shifting Loyals - moving from one brand to another.
4. Switchers - with no loyalty (possibly `deal-prone', constantly looking for bargains
or 'vanity prone', looking for something different).
 Factors Influencing Brand Loyalty

It has been suggested that loyalty includes some degree of pre-dispositional commitment
toward a brand. Brand loyalty is viewed as multidimensional construct. It is determined
by several distinct psychological processes and it entails multivariate measurements.
Customers' Perceived value, Brand trust, Customers' satisfaction, Repeat purchase
behaviour and Commitment are found to be the key influencing factors of brand
loyalty.Commitment and Repeated purchase behaviour are considered as necessary
conditions for brand loyalty followed by Perceived value ,satisfaction and brand trust .-
[5]

Brand equity
Brand equity refers to the marketing effects or outcomes that accrue to a product with its
brand name compared with those that would accrue if the same product did not have the
brand name [1][2][3][4]. And, at the root of these marketing effects is consumers'
knowledge. In other words, consumers' knowledge about a brand makes
manufacturers/advertisers respond differently or adopt appropriately adept measures for
the marketing of the brand [5][6]. The study of brand equity is increasingly popular as
some marketing researchers have concluded that brands are one of the most valuable
assets that a company has[7].
Contents
• 1 Measurement
• 2 Positive Equity Only?
• 3 Examples
• 4 References
• 5 See also

Measurement
There are many ways to measure a brand. Some measurements approaches are at the firm
level, some at the product level, and still others are at the consumer level.
Firm Level: Firm level approaches measure the brand as a financial asset. In short, a
calculation is made regarding how much the brand is worth as an intangible asset. For
example, if you were to take the value of the firm, as derived by its market capitalization
- and then subtract tangible assets and "measurable" intangible assets- the residual would
be the brand equity.[7] One high profile firm level approach is by the consulting firm
Interbrand. To do its calculation, Interbrand estimates brand value on the basis of
projected profits discounted to a present value. The discount rate is a subjective rate
determined by Interbrand and Wall Street equity specialists and reflects the risk profile,
market leadership, stability and global reach of the brand[8].

Product Level: The classic product level brand measurement example is to compare the
price of a no-name or private label product to an "equivalent" branded product. The
difference in price, assuming all things equal, is due to the brand[9]. More recently a
revenue premium approach has been advocated [4].
Consumer Level: This approach seeks to map the mind of the consumer to find out what
associations with the brand that the consumer has. This approach seeks to measure the
awareness (recall and recognition) and brand image (the overall associations that the
brand has). Free association tests and projective techniques are commonly used to
uncover the tangible and intangible attributes, attitudes, and intentions about a brand[5].
Brands with high levels of awareness and strong, favorable and unique associations are
high equity brands[5].
All of these calculations are, at best, approximations. A more complete understanding of
the brand can occur if multiple measures are used.
Positive Equity Only?
An interesting question is raised- can brands have negative brand equity? From one
perspective, brand equity cannot be negative. Positive brand equity is created by effective
marketing including via advertising, PR and promotion. A second perspective is that
negative equity can exist. Looking at a political "brand" example, the "Democrat" brand
may be negative to a Republican, and vice versa.
The greater a company's brand equity, the greater the probability that the company will
use a family branding strategy rather than an individual branding strategy. This is because
family branding allows them to leverage the equity accumulated in the core brand.
Aspects of brand equity includes: brand loyalty, awareness, association, and perception of
quality .
Examples
In the early 2000s in North America, the Ford Motor Company made a strategic decision
to brand all new or redesigned cars with names starting with "F". This aligned with the
previous tradition of naming all sport utility vehicles since the Ford Explorer with the
letter "E". The Toronto Star quoted an analyst who warned that changing the name of the
well known Windstar to the Freestar would cause confusion and discard brand equity
built up, while a marketing manager believed that a name change would highlight the
new redesign. The aging Taurus, which became one of the most significant cars in
American auto history would be abandoned in favor of three entirely new names, all
starting with "F", the Five Hundred, Freestar and Fusion. By 2007, the Freestar was
discontinued without a replacement. The Five Hundred name was thrown out and Taurus
was brought back for the next generation of that car in a surprise move by Alan Mulally.
"Five Hundred" was recognized by less than half of most people, but an overwhelming
majority was familiar with the "Ford Taurus".

Parle G largest selling biscuit brand in world

Shweta Jain & Reeba Zachariah

If you thought that a typical family run Indian company cannot top the worldwide charts,
think again. The homegrown biscuit brand, Parle G, has proved the belief wrong by
becoming the largest selling biscuit brand in the world.
Ajay Chauhan, executive director of Parle Products, told Business Standard: "The more
than 50-year-old brand, Parle G, has been rated as the largest selling glucose biscuit
brand in the whole world in terms of volumes. This came as a surprise to us when we
were made to understand that we have topped the worldwide charts of the global biscuits
industry. This was recently revealed by the US based Bakery Manufacturers'
Association."
The other global biscuit brands include Oreo from Nabisco and McVities from UK-based
United Biscuits among others. According to ORG-MARG reports, Parle G commands a
good 65 per cent market share in the domestic biscuit market. The glucose biscuits
category in India is estimated at Rs 15 billion. The Parle G brand faces competition from
Britannia's Tiger brand of biscuits.
The company's flagship brand, Parle G, contributes more than 50 per cent to the
company's total turnover. The other biscuits in the Parle Products' basket includes
Monaco, Krack Jack, Marie, Hide n Seek, Cheeslings, Jeffs, Sixer and Fun Centre. Said
Chauhan: "The core brands of the company in the biscuit category will include only Parle
G, Monaco and Krack Jack. The other brands will not be aggressively supported by us in
the market."
"This is because these three brands contribute substantially to our topline," Chauhan
added.
The confectionery business, which is the other division of Parle Products, currently
contributes only 15 per cent to the company's total turnover. Interestingly, the company
started operations with the confectionery business in 1929.
Chauhan elucidated: "The confectionery business has now taken a backseat and has
become a smaller part of our business because in India biscuits have a larger market."
The company commands a 40 per cent marketshare in the Rs 35 billion biscuit market in
India. In the confectionery segment, the company enjoys a mere 15 per cent marketshare.
The company's confectionery portfolio comprises brands like Melody 2 in 1, MangoBite,
Poppins, Rol-a-cola, Kismi, Rosemint, Peppermint, Orange candy, Fruit Drops, Pick n
Pack and Tangy. Chauhan has picked up three core brands from this category as well,
they being Melody 2 in 1, Poppins and MangoBite.

Powered by

Source: Parle Products Pvt. Limited

Thursday, September 23, 2004 12:15 PM IST (06:45 AM GMT)
Editors: General: Consumer interest, Food & drink; Business: Education & training,
Household & personal care products & services
Parle Unnada Thirkana Awards 2004 Honours 20 Deserving Students
World Chess Master Vishwanathan Anand is Guest of Honour
Chennai, Tamil Nadu, India, Thursday, September 23, 2004 -- (Business Wire India)

The Parle Unnada Thirkana 2004 scholarship for excellence in education and co-
curricular activities was awarded on Monday to 20 deserving school students from the
primary and secondary sections from schools in Tamil Nadu.

World chess master Mr Vishwanathan Anand graced the occassion with his presence as
Guest of Honour at the event. The honourable Vice Chancellor of Madras University S.P
Thyagarajan was the Chief Guest. The 20 award-winning students were selected from the
innumerable entries received from schools across the state of Tamil Nadu. A select panel
of judges short-listed the entries.

At the felicitation ceremony, Bharatnatyam exponent Anita Ratnam along with the
children enthralled students and their parents with a classical dance recital. This was
interspersed with performances of students from schools short-listed for Parle Best
School Performance award.

This year, a new category was introduced at the PUT 2004 -- Parle Best School
Performance. Of the 27 schools that enrolled for this category, 6 schools were short-listed
by a trio of distinguished judges -- choreographer Jeffrey Vardon, stage actor Sunil
Vishnu and singer Arjun Janakiraman. These short-listed teams enthusiastically contested
for the award on the felicitation day where they displayed their ample talent before the
cheering and enthusiastic gathering. The first prizewinner being Padma Seshadri Bala
Bhavan Senior Secondary K K Nagar, second prizewinner Bala Vidya Mandir Senior
Secondary School, Adyar followed by SBOA School & Junior college from Anna Nagar.

Instituted by Parle Products Pvt. Ltd, the Parle Unnada Thirkana 2004 awards fall under
the auspices of Parle Centre of Excellence, an effort aimed at encouraging all-round
development among school children. The award recognizes the development of a well-
rounded personality, whether it is academics, sports, fine arts, painting, performing arts,
social work and any other skill-based activities among students. This award also serves as
a point of inspiration for youngsters to break new barriers.

The Guest of Honour, Mr. Vishwanath Anand, said he was fascinated by the contribution
of Parle for children over the years. He said, “Parle is doing a fascinating job through the
Parle Centre of Excellence with activities like the Parle Unnada Thirkana 2004 award
that gives the young children a chance to blossom with an overall development in
academics as well as other extra-curricular activities.”

Congratulating the awardees, the Chief guest Mr. S. P. Thyagarajan emphasized that the
Parle Unnada Thirkana 2004 scholarship awards has provided much needed support to
these students and will definitely contribute to their overall development.

On the occasion, Mr Mayank Shah, Product Manager, Parle Products said, “We are
extremely happy to award the Parle Scholarship of Excellence to the deserving students.
Parle G is the 'world's largest selling biscuit' because it is these children who have
patronized the brand. It is because of the love and loyalty these children have for our
brand, that which we are grateful to them.

“Parle Centre of Excellence and activities like Parle Unnada Thirkana under its aegis are
a step towards acknowledging their loyalty towards our brand. The scholarship is one of
the efforts of Parle to contribute to the overall development of school children in Tamil
Nadu,” added Mr Shah.

This year, the organizers received an overwhelming number of entries for the scholarship
-- the 2nd Parle Unnada Thirkana 2004 scholarship awards attracted talent and brains
from all over Tamil Nadu including towns like Vaniyanbadi, Karaikudi, Pudukottai,
Karur, Salem, Pollachi, Coimbatore, Thanjavur, Erode, Ramnathapuram, Villipuram,
Dharmapur and Nagai, among others.
The selection was held at two levels -- the first stage, where each nominated student was
selected on the basis of the percentage of marks in annual school exams, achievement in
sports, performing arts and other skill-based activities. Each nominated student was asked
to write an essay titled, in Tamil, Hindi or English on any of the topics “My World of
Happiness” or “What if I were the Prime Minister” in not more than 1000 words. The
written essay was duly attested and signed by the head of school. Following this, 50
students were short-listed for the next stage.

In the second stage, these 50 selected students had to undergo personal interviews by a
selected committee of renowned teachers and distinguished people. The final 20 students
were selected basis the total number of points given to each student based on their
performance in academics, extra-curricular activities and personal interview. Finally, the
10 best students from the primary and secondary sections respectively were selected as
the awardees for the Parle scholarship.

The panelists were eminent personalities from the fields of sports, arts and entertainment
and education. The panelists for the 2nd Parle Unnada Thirkana Scholarship awards
include renowned choreographer Jeffery Vardon; stage actor Sunil Vishnu; comedian
Chinni Jayanth; former test cricketer T Kumaran; educationists Vasanthi Ranganathan,
V.Venkatachalam, Dr. Bhavani Shankar, Dr Nalini Ravindran, Dr Karunanidhi,
Alexander Samuel, Lakshmi Ravindram; national table tennis player Sri Vatsa; writer and
author Mrs. Sivasankari; and renowned Bharatnatyam dancer Anita Ratnam.

About Parle:

Parle Products Pvt. Limited is a reputed Indian manufacturer of quality Biscuits and
Confectionary products. Over the years, the Parle brand has grown from strength to
strength by concentrating on consumer tastes and preferences and emphasizing Research
& Development. The Parle name symbolizes quality and taste. Today, Parle enjoys a 50%
share of the total biscuit market and a 15% share of the total confectionary market, in
India. The Parle Biscuit brands, such as, Parle-G, Monaco, Hide & Seek, Milk Shakti,
Fun Centre and Krackjack and confectionery brands like Melody, Poppins, Mangobite
and Kismi that enjoy a strong imagery and appeal amongst the consumers.

Re: Parle g V/s Britannia - September 22nd, 2008

________________________________________
u wont get ready projects on dis but we have manyt reference prj on parle g and britania
on mp u can take dem as reference and devlop matter some of the projects are here rest u
can find using search option

3.2 DURATION OF THE PROJECT

 2007 – 2009

3.3 OBJECTIVES OF THE STUDY

 To determine the market share of parle G

 To determine the merchandising assets distributed to the retailers.
 To determine the S.G.A. (Sales Generating Assets) given to the retailers to boost
the sales.
 To find out the factors that motivates the retailers to sell a particular brand.
 To find out the problems that retailers face.
 To find out about the likings of the customers.
  To study the factors that motivates the customers to consume a particular brand.

3.4 TYPE OF RESEARCH

 OBSERVATION METHOD.

 SURVEY METHOD

 QUESTIONAIRE METHOD

3.5 SAMPLESIZE AND METHOD OF SELECTING

SAMPLE

 SIMPLE AND

 CENSUS

3.6 SCOPE OF STUDY

 Today PARLE have become a part of every household. Nobody knows when it
has creped into our lives and took such an important place. Whether it is Birthday,
Get together, Social Gathering, Party, Meetings, etc.
  Thus, it also becomes necessary for us to study the various aspects of this industry
and its products.

 Needless to say, this study can be of worthy help the company in formulating
some of its organizational policies, which in turn will be beneficial both for the
company and the consumer.

3.7 LIMITATION OF STUDY

 Time was the major limiting factor.
 Limited experience on the part of researcher with the problem of hand.
 Inability on the part of the consumers to express their ideas.
 Sample size taken was relatively small.
 The might be errors in taking the sample size.
 The research was based on every retailer survey and it was a closed study. Thus I
could not gather data in detail.
 The respondents may be biased in providing the facts and figure.
 There were constraints with regard to funds.
 4. FACTS AND FINDINGS

 COMPANY ANNUAL REPORT

 SURENDRA CHOPRA

 COMPANY EMPLOYEE

5. Analysis and Interpretation

6. SWOT
 STEANTH

 Strong brand image/name.

 Glamorous, attractive and effective local and national advertising

companies.

 Wide brand variety of face the competitor and to serve the masses.

 Effective executive team.

 Very attractive promotion scheme.

  The customer felt honored on knowing that some one from the
company itself had visited him to buy the products of the company
 WEAKNESS

 Wrong perceptions of the consumer related to the pesticides in PARLE.

Retailer did not support the scheme and tried to create confusion in the
market as they were apprehensive that their sales would be decreased.

 Unplanned route was not operated properly.

 Minimum lot size for the unplanned route was not mentioned in any of
the advertising material
Opportunity

 There is wide rural market which is being untouched.

 There is a wide scope in the continuous product development and

introduction of few flavors.

Threats

 Cut throat competition

 Illegal distribution done by some distribution.

7. CONCLUSION

PARLE Ltd has been able to maintain optimal cost positioning. Despite price drops in various
products, the company has been able to maintain and grow its market share to make strong
margins in market, contributing to the strong financial position of the company. The company was
able to meet its entire requirements for capital expenditures and higher level of working capital
commitment with higher volume of operations and from its operating cash flows. As well as
company has acquired group in year 2007-2008 which further has improved the goodwill of the
company. The ratio analysis of PARLE G shows that company has grown stronger and finer in all
the respects.

8. RECOMMENDATION AND SUGGESTIONS

 There should be proper availability of the product.

 Schemes should be easily reached to the consumers.
 Schemes should be money-oriented than gift-oriented.
 The company must give proper attention towards quality/taste of the products.

9. APPENDIX

10. BIBILIOGRAPHY
www.wikipedia.org
www.google.com
book:-
Brand management
Magazine:-
Indian Today
Business Today