PRoject on Marketing Strategies & Plans

1. Marketing Strategies & Plans
Bibin Thomas
M Com Part 1
Roll No 88
2012-13

2. TITLE
Project Report on
Marketing Strategies & Plans
Submitted to
University of Mumbai
At
Lord’s Universal College
By
Mr. Bibin Thomas
Under the Guidance of
Prof. Sushant Bijlani
2

3. DECLARATION
I hereby declare that the project work entitled “Marketing Strategies & Plans“submitted
to the MUMBAI UNIVERSITY, is a record of an original work done by me under
the guidance of Prof. Sushant Bijlani, Faculty Member, of Lord’s Universal College, and
this project work has not performed the basis for the award of any Degree or diploma/
associate ship/fellowship and similar project if any.
Bibin Thomas
Roll no 88
Place: Mumbai
3

4. ACKNOLEDGEMENT
I would like to express my gratitude to all those who gave me the possibility to
complete this thesis. I want to thank Lord’s Universal College for giving me permission
to commence this thesis in the first instance, to do the necessary research work and to use
departmental data. I have furthermore to thank, who gave and confirmed this permission
and encouraged me to go ahead with my thesis.
I am deeply indebted to my Prof. Sushant Bijlani from the Lord’s Universal
College whose help, stimulating suggestions and encouragement helped me in all the
time of research for and writing of this thesis.
4

5. TABLE OF CONTENTS
Chapter.No
TOPIC
1.
INTRODUCTION
2.
3.
4.
5.
6.
7.
Page. No
6-7
INDUSTRY PROFILE
COMPANY PROFILE
MARKETING STRATEGY FOR PARLE G
RESEARCH METHODOLOGY
DATA PRESENTATION AND ANALYSIS
8-10
11-31
32-40
41-43
44- 56
CONCLUSION & RECOMMENDATION
57-59
60
BIBLIOGRAPHY
ANNEXURE
61-63
5

6. CHAPTER 1
INTRODUCTION
BISCUIT INDUSTRY IN INDIA
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.
The annual turnover of the organized sector of the biscuit manufacturers (as at
2007-08) is Rs. 4,350 crores.
In terms of volume biscuit production by the organized segment in 2007-08 is
estimated at 1.30 million tonnes. The major Brands of biscuits are - Britannia, Parle
Bakeman, Parle G, Elite, Cremica, Dukes, Anupam, Craze, Nezone, besides various
regional/State brands.
Biscuit industry which was till then reserved in the SSI (Small Scale Industry)
Sector, was unreserved in 1997-98, in accordance with the Govt Policy, based on the
recommendations of the Abid Hussain Committee.
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.
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%.
The Union Budget for 2005-06 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%.
6

7. However the average utilization of installed capacity by biscuit manufacturers in
the country has been a dismal 60% over the last decade up to 2006-07.
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.
On the other hand, import of biscuits, specially in the high price segment has
started from 2000-01, 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 2006-07
and beyond.
Biscuit is a hygienically packaged nutritious snack food available at very
competitive prices, volumes and different tastes. According to the NCAER(National
Council Of Applied Economic Research) 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.
Biscuit can he broadly categorized into the following segments:
(Based on productions of 2007-08)
Glucose
Marie
Cream
Crackers
7

8. INDUSTRY PROFILE
The word 'Biscuit' is derived from the Latin words 'Bis' (meaning 'twice') and
'Coctus' (meaning cooked or baked). The word 'Biscotti' is also the generic term for
cookies in Italian. Back then, biscuits were unleavened, hard and thin wafers which,
because of their low water content, were ideal food to store.
As people started to explore the globe, biscuits became the ideal travelling food
since they stayed fresh for long periods. The seafaring age, thus, witnessed the boom
of biscuits when these were sealed in airtight containers to last for months at a time.
Hard track biscuits (earliest version of the biscotti and present-day crackers) were
part of the staple diet of English and American sailors for many centuries. In fact, the
countries which led this seafaring charge, such as those in Western Europe, are the
ones where biscuits are most popular even today. Biscotti is said to have been a
favourite of Christopher Columbus who discovered America!
Making good biscuits is quite an art, and history bears testimony to that. During
the 17th and 18th Centuries in Europe, baking was a carefully controlled profession,
managed through a series of 'guilds' or professional associations. To become a baker,
one had to complete years of apprenticeship - working through the ranks of
apprentice, journeyman, and finally master baker. Not only this, the amount and
quality of biscuits baked were also carefully monitored.
The English, Scotch and Dutch immigrants originally brought the first cookies to
the United States and they were called teacakes. They were often flavoured with
nothing more than the finest butter, sometimes with the addition of a few drops of
rose water. Cookies in America were also called by such names as "jumbles",
"plunkets" and "cry babies".
As technology improved during the Industrial Revolution in the 19th century, the
price of sugar and flour dropped. Chemical leavening agents, such as baking soda,
became available and a profusion of cookie recipes occurred. This led to the
development of manufactured cookies.
Interestingly, as time has passed and despite more varieties becoming available,
the essential ingredients of biscuits haven't changed - like 'soft' wheat flour (which
contains less protein than the flour used to bake bread) sugar, and fats, such as butter
8

9. and oil. Today, though they are known by different names the world over, people
agree on one thing - nothing beats the biscuit!
Some interesting facts on the origin of other forms of biscuits:
The recipe for oval shaped cookies (that are also known as boudoir biscuits,
sponge biscuits, sponge fingers, Naples biscuits and Savoy biscuits) has changed
little in 900 years and dates back to the house of Savoy in the 11th century France.
Peter the Great of Russia seems to have enjoyed an oval-shaped cookie called "lady
fingers" when visiting Louis XV of France.
The macaroon - a small round cookie with crisp crust and a soft interior - seems to
have originated in an Italian monastery in 1892 during the French Revolution.
SPRING-UHR-LEE, have been traditional Christmas cookies in Austria and Bavaria
for centuries. They are made from a simple egg, flour and sugar dough and are
usually rectangular in shape. These cookies are made with a leavening agent called
ammonium carbonate and baking ammonia.
The inspiration for fortune cookies dates back to the 15th and 17th Centuries,
when Chinese soldiers slipped rice paper messages into moon cakes to help coordinate their defence against Mongolian invaders.
NutriChoice SugarOut
Sounds like yesterday when people commented that healthy foods meant
"compromising on the taste." NutriChoice SugarOut is the most novel product range
to have been introduced in the market. The product is not just sweet but tastes great,
and yet contains no added sugar.
Central Excise Duty on Biscuits
In the Union Budget 2007-08, the Finance Minister who had imposed a 100%
increase in the rate of Excise Duty on biscuit from 8% as a part of the rationalisation
of CENVAT and introduction of single rate of Duty did not offer any concesison on
the Budget for 2001-02. On the other hand the 50% exemption to small packs was
withdrawn. During these years and in 2006, the Federation submitted strong
representations to the Union Finance
9

10. Minister seeking relief in the Excise Duty on biscuits, giving biscuit special
treatment that it deserves on account of the exceptional nature and sensitivity to price
increase.
The Federation submitted its Pre- Budget Memorandum for 2009 demanding at least
50% Excise Relief.
It is a matter of great satisfaction that the Govt. has, after 3 years, acceded to our
demand and grated reduction in Excise Duty (from 16% to 18%) in the Union
Budget for 2007-2008.
10

11. CHAPTER 2
COMPANY PROFILE
A long time ago, when the British ruled India, a small factory was set up in the
suburbs of 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 1959, 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
1959. 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, we now have 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.
11

12. 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, we know 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.
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.
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 &
12

13. 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. We
constantly endeavour 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
our 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 1959, 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 & abroad. 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 endeavours at Parle.
Awards - Monde Selection
13

14. Year
Gluco
Silver
Silver
Silver
Monaco
Gold
Silver
Gold
Monaco
Gold
Gluco
Silver
Trophy Of The International High Quality
Gold
Cheeslings
Gold
Gluco
Silver
Silver
Monaco
Gold
Cheeslings
Gold
Krackjack
Gold
Gluco
Silver
Gluco
Gold
Monaco
Gold
Cheeslings
Gold
Krackjack
Gold
Krackjack
1979 (Paris)
Gold
Krackjack
1978 (Geneva)
Silver
Monaco
1977 (Luxembourg)
Gluco
Monaco
1976 (Britain-London)
Gold
Cheeslings
1975 (Amsterdam)
Monaco
Gluco
1974 (Bruxelles)
Gold
Cheeslings
1973 (Paris)
Cheeslings
Cheeslings
1962 (Geneva)
Rank
Monaco
1959 (Brussels)
Products
Gold
Monaco
Gold
Cheeslings
Gold
Gluco
Silver
14

15. Krackjack
Palmes(Gold)
Monaco
Gold
Gluco
Gold
Gold
Gold
Monaco
Gold
Krackjack
Gold
Gold
Cheeslings
Gold
Monaco
Gold
Krackjack
Gold
Gluco
Silver
Gluco
Gold
Monaco
Gold
Krackjack
Gold
Cheeslings
Palmes(Gold)
Gluco
Gold
Monaco
1985 (Lisbon-Portugal)
Silver
Gluco
1984 (Madrid)
Gold
Cheeslings
1983 (Rome)
Monaco
Krackjack
1982 (London)
Gold
Cheeslings
1981 (Amsterdam)
Cheeslings
Gluco
1980 (Vienne)
Gold
Gold
Mini
Cheeslings Gold
Recipe
57 Gold
Krackjack
1986 (Geneva)
Silver
Gluco
Gold
Monaco
Gold
Mini
Cheeslings Gold
Recipe
57 Gold
Krackjack
Silver
15

16. Marylong
Gluco
Gold
Krackjack
1987 (Bruxelles)
Silver
Gold
Monaco
Gold
Mini
Cheeslings Gold
Marylong
Monaco
Gold
Silver
Bronze
Gluco
Gold
Krackjack
Gold
Monaco
Gold
Marylong
Silver
Cheeslings
Gold
Melody
Gold
Fudgy
Gold
Cheeslings
Grand
Rol-A-Cola
Twist
Krackjack
Gold
Monaco
Gold
Gluco
Silver
Poppins
Silver
Melody
1991 (Barcelona)
Marylong
Krackjack
1990 (Luxembourg)
Gold
Gluco
1989 (Luxembourg)
Gold
Cheeslings
1988 (Athens)
Gold
Bronze
Melody
Silver
Kismi
Toffee
Bar Bronze
Mango
Bite Gold
Rol-A-Cola
Gold
Gluco
Gold
16
with
Palm
leaves
Gold
wrap
Gold

17. Krackjack
Monaco
Gold
Gold
Gold
Gluco
Gold
Krackjack
Gold
Monaco
Gold
Cheeslings
Gold
Gluco
Gold
Monaco
Gold
Krackjack
Gold
Supermilk
Silver
Cheeslings
Grand Gold
Gluco
Silver
Monaco
Grand
Krackjack
Gold
Supermilk
Gold
Cheeslings
Gold
Gluco
Bronze
Monaco
Grand
Krackjack
Gold
Supermilk
Gold
Cheeslings
2002 (Brussels)
Monaco
Nimkin
2000 (Lisboa)
Gold
Cheeslings
1999 (Roma-Italy)
Gold
Krackjack
1998 (Paris)
Gold
Gluco
1996 (Brussels)
Gold
Cheeslings
1993 (Amsterdam)
Silver
Gold
Gluco
Gold
Monaco
Gold
Krackjack
Gold
17
Gold
Gold

18. Supermilk
Cheeslings
Krackjack
Gold
Cheeslings
Gold
Gold
Jeffs
Silver
Gluco
Gold
Krackjack
Gold
Monaco
Gold
Sixer
Gold
Jeffs
Gold
Cheeslings
Gold
Parle-G
Gold
Krackjack
Gold
Monaco
Gold & International High Quality Trophy
Hide & Seek
Silver
Parle-G
Gold
Krackjack
2008 (Brussels)
Gold
Sixer
2007 (Brussels)
Gold
Monaco
2006 (Brussels)
Gold
Gluco
2004 (Brussels)
Grand
Gold
Monaco
Gold
Hide
&
Seek Silver
Marie Choice
Gold
The major products offered by Parle-G industries are the following:
1. Brand Name: GoodDay and Marrie from Parle Gare stable and are the most
established brand in biscuit segment being equated for biscuits for long time. Now
18
Gold

19. the brand has taken a dent though among the present generation with competitors
coming up with more powerful advertising campaigns and offering more variety.
2. Styling & Packaging: Parle Gofferings have the innovative designs and
packaging as compared to what is offered by the competitors. As it's a variety
seeking product the styling and packaging helps in getting more customers.
3. Quality: Parle Gname is associated with quality. The offerings from Parle Gare of
best quality when it comes to taste and hygiene. Under it's mission statement "eat
healthy think better"
Product mix
Parle-G
There are always some kids who seem smarter than the rest. Ever wonder how
they got to be that way? If you had to think real hard for the answer, then probably you've
never eaten Parle-G. Parle-G is the new generation's official power supply. Providing
kids with the vital vitamins and minerals necessary for all round mental and physical
development.
Apart from being the world's largest selling biscuit, Parle - G is the winner of 8 Gold
and 11 Silver awards at the Monde Selection Awards – the global standard
for quality in Food category.
Parle-G Magix
What is the power of taste? Can it get government officers to get your papers
through faster? Probably! Can it help you make friends and influence people? It's worth a
shot! Can it land you a lead role in a blockbuster movie, even if you can't act?
Fact is, people will do anything for a taste of Parle-G Magix. But the real question
is, will you be willing to share your packet of Parle-G Magix to find out exactly how
much power you can exert? With two delicious tastes - Choco & Cashew, Parle-G Magix
has put great power in your hands. Go ahead & wield them wisely.
19

20. Parle-G Milk Shakti
What have you heard about Parle-G Milk Shakti? Think hard. Ok, now eat a biscuit.
Got it? Yes, you're absolutely right. It aids mental stimulation. And energises the
body too. Now try and memorise this - it is the only milk biscuit with the goodness of
honey.Should be unforgettable, once you bite into one of these power-packed biscuits.
Krackjack
A little sweet - A little salty… That's what makes Krackjack very, very delicious! This
delightful biscuit is acclaimed in India and across the world for its
controversial
sweet and salty taste. Krackjack has won 11 Gold, 3 Silver and 1 Bronze award at the
'Monde Selection'. You can enjoy Krackjack any time plain or with a host of beverages
like tea, coffee or milkshakes.
Monaco Zabardast Zeera
To add some spice to life, have the exciting variant of Monaco - The Zabardast
Zeera Flavour. The same light salted biscuits that lift your spirits now comes delicately
seasoned with Zeera. Relish this unique taste at all times of the day.
Marie Choice
More and more people are now discovering the pleasures of a cup of hot steaming tea. Or
so it seems. In reality they are actually using (misusing) tea as a ready excuse to indulge
in another packet of Parle Marie Choice. Whatever the reason, Parle Marie Choice has
20

21. fast become a preferred teatime accompaniment. Find out for yourself over a cup of tea.
After all , chai toh hai bahana.
Hide & Seek
Let your taste buds indulge in the sinful pleasure of a delightful game. Seek out the
chocolate chips that
aren't really hidden. And relish a delectable experience called
Hide-&-seek - tasty itna, ki dil aajayee.
As you crunch into it, these chips melt in your mouth. Try as you might, you
just can't hide from the sheer delight of munching a mouthful
Fun Centre
There might have been times when you were unsatisfied with the amount of
cream in the middle of cream biscuits. With Parle Fun Centre, you'll have
no such
problems. A delicious biscuit filled with cream till the edges, ensuring that it has the
highest cream content in its category. Available in a variety of mouthwatering, lipsmacking flavours like chocolate, butterscotch, strawberry and milk cream, these
irresistible cream biscuits whet your appetite
for more, and also make for a perfect
dessert.
NutriChoice SugarOut
This is because NutriChoice SugarOut is sweetened with "Sucralose," derived from
sugar, which provides the same sweetness as any other biscuit, without the added calories
of sugar.
This range is available in 3 delicious variants namely Litetime, Chocolate cream, and
Orange cream, targeted towards all health sensitive people. It is also relevant for
consumers with sugar related ailments.
We are sure that you will be pleasantly delighted with its great taste and equally surprised
to know that it has no added sugar.
Don't be taken for a ride when you read "Sugar Free" label on many biscuit packs
marketed in India or abroad. Even with 100% no-added sugar, wheat-cereals in biscuits
have their own natural sugar content. Parle Ghas chosen to represent these biscuits with
21

22. "No Added Sugar" claim, as there is no added sugar in the processing of NutriChoice
SugarOut.
Nutri Choice Digestive Biscuit
Nothing can be more difficult than making small efforts in our daily life towards
healthy and active living. 24/7 we are engrossed in our busy schedules; skipping
meals, missing walks, along with inadequate sleep and frequently eating-out, all take
a heavy toll on our health.
At least with the new and improved NutriChoice Digestive Biscuit, we have one less
thing to worry about. Made with 50% whole-wheat and packed with added fibre
(10% of our daily dietary needs), these delightfully tasty biscuits are amongst your
healthiest bites of the day.
In your next visit to a shop just look out for its Golden-green international carton
pack.
Try one and you'll know that you've made one smart choice - NutriChoice.
Treat Fruit Rollz
So go on and treat yourself to the lip-smacking snack!
New Parle-G Milk Bikis
Milk Bikis, the favorite growth partner of Kids, now brings greater value and delight
to all with its new product and pack design. Recently re-launched in its existing
Southern & Eastern markets, and extended across India, the new Milk Bikis is all set
to add excitement and appeal to ‘nutritious’ food. Whoever said that ‘good food’
needs to look ‘dull and boring’, will just have to take a look at Milk Bikis.
With a unique and attractive honeycomb design and an enhanced product experience,
the new biscuit prompts the ‘Kid’s will love it’ reaction amongst mothers. The milk
goodness in the recipe is now enhanced with SMART NUTRIENTS – 4 vital
vitamins, iron and iodine, proven to aid mental and physical development in growing
kids. The premium packaging, besides appealing to kids, also ensures that the
biscuits remain fresh and crisp.
22

23. So, whether its breakfast time or snack time at school, rest assured that kids will look
forward to munching these crunchy, milky biscuits which even helps in their
development. And yes, adults won’t be far behind in reaching out for a pack!
Parle-G 50-50 Pepper Chakkar
The launch of the latest 50-50 variant left everybody guessing "What it is?" From
TV ads, radio, outdoor and in-store display materials to events, a website and SMS
and email blasts, traditional and new media were blended synergistically to create
excitement and curiosity about the unique taste of the biscuit. The tangy and
distinctive pepper flavoured biscuit, that's thin and crispy and more like a snack,
caught the imagination of a younger audience craving something to nibble on. The
50-50 Pepper Chakkar launch is truly a case of leveraging the marketing mix to best
advantage.
Parle-G profits up 125 % in Q2; growth momentum continues
Mumbai, October 23rd, 2007: Parle-G Industries Ltd. (PARLE G ), one of India’s
leading food Companies, reported sales of Rs. 6,588 MM for the quarter ended 30th
September 2008, reflecting 20% growth over the corresponding quarter last year. Net
Profit for the quarter at Rs. 485 MM was more than double for the corresponding
quarter last year of Rs 212 MM.
For the half year ended 30th September 07, revenue grew 19.6% to Rs. 12,356 MM,
while net profit at Rs 846 MM was 64.6% higher than last year.
Commenting on the performance, Ms. Vinita Bali, Managing Director, said,
“We continue to build on the growth momentum of last year. We have added 340
basis points to our margin through higher price realization as well as innovation. The
increase in profit has been achieved despite the continuing and unprecedented
increase in prices of key commodities like flour, oils & dairy products.”
During the quarter, the Company launched ‘Treat Choco Gelo’, an extension of the
Treat franchise with ‘double masti’ of chocolate & caramel and also introduced a
range of premium indulgence cookies under ‘Pure Magic’ brand. Investment in
Advertising and Sales Promotion has been increased by 50% to fuel the innovation
led growth.
23

24. MEASURES UNDERTAKEN BY GOVERNMENT
The Food Processing Industry have been experiencing the adverse affect of
multiplicity of various Acts/ Rules and Regulations for food standards under the
Prevention of Food Adulteration Act Standards of Weights & Measures Act, Food
Products Order, the Meat Products Order, the Bureau of Indian Standards & MMPO
(Milk & Milk Product Order), etc. affected the Food & Food Processing Sectors. They
need to be modernized & converged.
As a consequence of various representations of industry, the Govt. of India has decided to
set up a Group of Ministers (GOM) to propose legislation and other changes for
preparing a Modem Integrated Food Law and related regulations. The Ministry of State
for Food Processing Industries is the Nodal Ministry to coordinate the Parle G l.
Our federation submitted its recommendations and suggested to placed before the Group
of Ministers, covering the broad frame work required for the food legislation as well as
specific issues such as:
The main objectives of the new Integrated Food Laws & its structure
Methodology of development of Standards
Provisions of Labelling
Acceptance of a basic list of additives
Matters relating to GMP(Good Manufacturing Practice), GHP(Gud Health Plan) Issues
related to Codex
Procedure for sampling& launching of Prosecutin
Grading of violations according to the nature of discrepancy.
Recent Changes / Amendments
Prevention of Food Adulteration Rules The Ministry of Health & Family Welfare, Govt.
of India vide its Notification No. GSR 908 (E) Dt. 20.12.2008 has provided for printing
of statutory symbol on all products containing vegetarian ingredients. The notification
came into effect from 20 June 2008. As members may be aware the Govt. has earlier
amended PFA Rules vide notification No. 245(E) Dt.4.4.2001 provided for statutory
printing of the symbols of food packages containing non vegetarian ingredients. This
notification has already come into effect from 4 October 2008.
24

25. Our Federation along with apex organizations such as CII(Confederation Of Indian
Industry) & CIFTI (Confederation Of Indian Food Trade & Industry)have represented to
Hon'ble Union Minister for Health and Family Welfare seeking extension of a minimum
period of 6 months for implementation of the notification, particularly on account of
hardships in printing vegetarian symbol in advertisements. A delegation from the industry
met the Secretary, Ministry of Health and Family Welfare and apprised him of the
hardships faced by industry. Further follow up is in hand.
Prevention of Food Adulteration Act / Rules
Members reported various instances where the PFA authorities in the States are
adopting penal action, even in cases of very minor offences / errors under the PFA Rules.
FBMI (Federation Of Biscuit Manufacturer Of India) suggested that such minor errors etc
should be compounded, avoiding prosecution, harassment and resultant losses to biscuit
units. This issue has also been referred to CII (Confederation Of Indian Industry) &
CIFTI (Confederation Of Indian Food Trade & Industry) for further follow up.
Introduction of HACCP/GMP/GHP
The Govt. of India (Ministry of Health), has formulated proposals to introduce the
concepts of Hazard Analysis Control Convention Procedures (HACCP), Good
Manufacturing Practices (GMP) and Good Hygienic Practices (GHP), as a step towards
eventual adoption in the various states in accordance with the International Codex
Alumnus, in the context of trade terms and regulatory, measures under the WTO regime.
After discussions with FBMI and other organizations, the Dept of Health constituted
Sectoral Groups on various categories of food processing industries. The Sectoral Group
on Bakery Products consisted of FBMI ((Hazard Analysis Critical Control Point)
Federation Of Biscuit Manufacturer Of India), as Convener and FBMI and SIB as
members. After detailed deliberations, the Federation submitted our comments and
suggestions, highlighting the hardships that the biscuit units would face in the event of
statutory enforcement of HACCP/GMP/GHP.
The Federation suggested that the concepts of HACCP etc should be made voluntary in
the first two/three years, keeping in view the ground realities in the bakery sector and due
25

26. to the fact that the implementation of HACCP/GMP/GHP may be beyond he financial
and technical capabilqities of majority of the biscuit manufacturers and compulsory
introduction of these regulations would adversely impact the via Parle G ity and may lead
to closure of a large number of bakeries in the country. FBMI, after detailed deliberations
by the Executive Committee, suggested to the Govt. of India that, in the first instance
projects for imparting training to the Managers/Executives and workforce in the bakery
industries should be organized so as to create awareness and knowledge on these
complex regulatory aspects and educate the personnel in the industry on various aspects
of HACCP etc.
Unified Food Laws – Need for
As members are aware, the food processing industries, including Biscuit / Bakery
segment, are subjected to and administered by a large number of statues i.e. PFA Act /
Rules, Weights & Measures Act, Packaged Commodities Rules, MMPO(Milk & Milk
Product Orders) under Essential Commodities’ Act / Rules, Agmark, BIS etc. There are
much multiplicity of implementing / enforcing Agencies / Departments for watch one of
these Acts and Rules, both at Central and State levels. Unfortunately, many a time there
are instances of overlapping and even contradictions between such Agencies /
Departments. PFA Act / Rules are recipe based, and focus on prosecution / penal action,
even for minor / technical errors etc. which are also different in the States.
Similarly, in the Standards of Weight & Measures Act and PC Rules, there have been
plethoras of amendment, and proposals for more restrictions on the food processing
industries including Biscuit and this has resulted in unavoidable hindrances in the
development and growth of the industries.
It is in this context that our Federation in close coordination with CIFTI, CII, FICCI,
PHDCCI urged he Government to evolve a single Integrated Food Law, encompassing
the existing legislation’s mentioned above, with main focus on development and
promotion of the Food Processing, Agro Based industries in the country, paving way for
creation of large employment generation, consumption of varied types of safe food
products of good quality, at reasonable prices benefiting consumers particularly those in
the lower and middle segments of the society. Exports and better capacity utilization also
26

27. need to be encouraged in the proposed Integrated law, which would also result in higher
productivity and better revenue for the Central and State Governments.
As a result of such concerted efforts and presentations by organizations of industry,
including AIMBA the Government constituted the Justice Venkatachalam Committee to
review the entire gamut of the existing Food Laws and to recommend the ways ad means
and basis for unifying these Acts / Rules and regulations into an Integrated Food Law
(Act). After due consideration of all aspects and by inviting suggestions from Govt.,
Industry and Commerce as well as consumers and other important sections of the
community at large, the Committee submitted its report containing detailed suggestions /
recommendations on the imperative need for integrating the existing multiple food laws.
Accordingly, the Govt. formed a Group of Ministers with the Ministry of Food
Processing Industries as the nodal point and this comprehensive exercise has resulted in
the Draft Food Parle G l 2002 presented to the Group of Ministers. The said Draft Food
Parle G l 2002 has been formulated to “provide for the production, manufacture,
processing and sale of safe and suitable food systematic and scientific development of
food industry, introducing new technologies, imparting new inputs of market dynamics,
and to create an enabling environment for innovation and value additions, ensuring high
degree of objectivity and transparency and to provide for the establishment of a Food
Development an Regulatory Authority of India an the Council for Food Standards and for
matters connected therewith or incidental thereto.
MARKETING STRATEGY FOR PARLE G
27

28. • Cost leadership:
It is a cost leader in its industry except in cheese and glucose biscuits where it lags
behind Parle respectively. The company has undertaken modernization program in
order to improve productivity. To focus resources, rationalization of brands and
packs has been undertaken and the existing brands have been clustered into more
cost efficient portfolio through a process of brand concentration.
• Economies of scale:
Parle G is adding capacity at regular intervals depending upon the economic
environment It has the advantage of being able to source raw materials and even
packaging at cheap rates because of large scale of operations.
Parle G is a star BCG as shown below:
HIGH
* PARLE G
MARKET GROWTH
RATE
LOW
RELATIVE MARKET
SHARE
HIGH
The BCG growth-share matrix shows that Parle G is a STAR BCG, being a market
leader in a high growth market
28

29. FIVE FORCE MODEL FOR PARLE G
COMPETITOR’S FORCE
(Major MNCs likely to diversify and
get into related business of Parle G
SUPPLIER’S FORCE
(Very large number less
of bargaining power
PARLE G
PARLE
BAKEMAN’S
REGIONAL
SUBSTITUTE’S FORCES
Household snacks
Bakery biscuits
Fast food
29
BUYER’S FORCES
(more quality suppliers,
so conscious and price
sensitive

30. PARLE G SUPPLY CHAIN
Supply chain describes a longer channel stretching from Raw materials to
components to final Products that are carried to final Buyers.
Parle G Supply Chain include Authorized wholesaler, Super stockists, RPDs, UPDs
and Retailers. The Raw Materials are converted into finished goods in the Production
Units or Factories. From factories the finished goods are then sent to the Regional
Depots or the Mother Depots. From here the stock reaches the Warehouse for
distribution to the Authorized Wholesaler. From Warehouse or Depots the Stock
either
reaches
the
Superstockists
or the
Authorized
Wholesalers.
From
Superstockists the stock goes to either UPDs (Universal Printer Driver) or RPDs
(Radiation Protection dosimetry) from where it finally reaches to the markets of
Rural India. The Authorized Wholesaler buy goods from Company and from them
30

31. the Stock goes to the Retailers. Retailers sell Company Products to the End
Consumers.
The Sale of the Stock from Depots to Authorized Wholesaler constitutes Primary
Sale while the Sale of the Stock from Authorized Wholesaler to Wholesaler
constitute Secondary Sale.
Different rural markets have different set of Superstockists (SS) which further have
RPD’s (Rural preferred Dealers) and UPD’s (Urban preferred Dealers) under them.
These UPD’s are the dealers of very small regions only which are considered rural
only and are not completely urban.
Sales Promotion
Sales promotion, a key ingredient in marketing campaigns, consists of a diverse
collection of incentive tools, mostly short term, designed to stimulate quicker or greater
purchase of particular products or services by consumers or the trade."
In marketing, sales promotion is one of the four aspects of promotion. (The other
three parts of the promotional mix are advertising, personal selling, and
publicity/public relations.) Sales promotions are non-personal promotional efforts
that are designed to have an immediate impact on sales. Sales promotion is media
and non-media marketing communications employed for a pre-determined, limited
time to increase consumer demand, stimulate market demand or improve product
availability. Examples include:
· coupons
· discounts and sales
· contests
· point of purchase displays
· rebates
· free samples (in the case of food items)
· gifts and incentive items
· free travel, such as free flights Sales promotions can be directed at either the
customer, sales staff, or distribution channel members (such as retailers). Sales
31

32. promotions targeted at the consumer are called consumer sales promotions. Sales
promotions targeted at retailers and wholesale are called trade sales promotions.
Purpose of sales promotion.
Sales-promotion tools vary in their specific objectives. A free sample stimulates
consumer trial, whereas a free management-advisory service aims at cementing a
long-term relationship with a retailer.
Sellers use incentive type promotions is to attract new triers, to reward loyal
customers, and to increase the repurchase rates of occasional users. Sales promotions
often attract brand switchers, who are primarily looking for low price, good value, or
premi-urns. Sales promotions are unlikely to turn them into loyal users. Sales
promotions used in markets of high brand similarity produce a high sales response in
the short run but tittle permanent gain in market share. In markets of high brand
dissimilarity, sales promotions can alter market shares permanently.
MAJOR CONSUMER PROMOTIONAL TOOLS
 Samples: Offer of a free amount of a product or service delivered door to
door, sent in the mail, picked up in a store, attached to another product, or
featured in an advertising offer.
 Coupons: Certificates entitling the bearer to a stated saving on the purchase
of a specific product: mailed, enclosed in other products or attached to them,
or inserted in magazine and newspaper ads.
 Cash Refund Offers (rebates): Provide a price reduction after purchase
rather than at the retail shop: consumer sends a specified "proof of purchase"
to the manufacturer who "refunds* part of the purchase price by mail.
To promote products to consumer, company devises some scheme like discount on MRP,
giving freebies with product etc.
How Consumer promotional offer products differ from normal product without offer ?
 The product is marketed under some scheme.
 The packaging is different from normal product.
32

33.  The freebies procurement & logistics planning is additional activity.
 The production centers may be different from regular production centers.
 The distribution strategy may be different from regular one.
Parle G Industries Ltd. Planned to launch six promotional offers in the month of May
and June 2008.
Complexities involved were promotional offers limited to some region of our country and
rest of country was on normal product.The promotional offers were limited to Uttar
Pradesh and Rajasthan.
Objectives : To deliver right SKU (Stock Keeping Unit) & Gift item to right place in right
time.
 To achieve internal customer satisfaction level to 95%.
 And to increase the consumer base for newly launched product.
Marketing Department decides to run promotional offers on brands with following
objectives.
 To penetrate market with greater share of business.
 To leverage Parle-G brand by having association with some other known brand.
 To counterattack competitor’s strategy.
The consumer promotional offers are based on the principle of elasticity of demand.
Following consumer promotional offers were conceptualized for May and June 2006.
PROMOTION IN RURAL MARKET
MERA RPD MAHAN CONTEST
Mera RPD (Radiation Protection Dosimetry) Mahan contest was a dealer incentive
contest which was designed for the dealers of the Rural market. This contest was
designed to motivate the RPDs (Radiation Protection Dosimetry) and UPDs (Urban
preferred Dealers) to reach their Sales target of 35,000 and 50,000 respectively. This
contest was held in the month of May and June.
33

34. The details of this contest are as follows:
Period
May- Jun'06
Scope
RPDs (Radiation Protection Dosimetry) in all SURE Territories
Criteria
Sales target achievement for the incentive period
Targets for the period to be set by the SO/ ASM in
consultation with the RSM Minimum swing of 40% in
May and June'06 MA sales over Jan-Mar'06 MA sales
To qualify the RPD must have minimum current sales
of Rs.30000 PM or the Target sales should be a
minimum of Rs.30000 PM.
Mechanics
 1 Top RPD to be selected as the "Mera RPD (Radiation Protection Dosimetry)
Mahaan" per RPD PSM PJP.
 This RPD to get a gift article worth Rs. 3000/- (Nokia MoParle G e Phone
Proposed
 All other RPDs to get a gift article worth Rs. 500/- or cash if preferred
WEAKNESSES
• The Company takes a lot of time in handling the UCA (Supply Chain Company)
claims of the authorized wholesalers; this !eads to demotivation
• Warehousing norms are not followed, which accounts for high breakage
• The semi-sweet category accounts for the maximum turnover in the mass marketthe Tiger Anytime being a member of this category is perceived as a tow quality
product; this may liquidate Parle G 's brand equity in the mass market
• Parle G has positioned it's Tiger range on health and taste, but my findings show
34

35. that health consciousness in the mass market is low, which means that the brand is
under-positioned, since the market doesn't consider "health1 as an important benefit
in biscuits
• Parle G 's strength is in mid, premium mid super-premium category; this market is
approaching a saturation point
• Parle G 's mass market is not segmented properly; Parle G cannot afford to go all
out
in the mass market, the best strategy would be to concentrate on these
segments of the mass market, which will account for volume sales and require
minimum investment
• Performance-based incentive to motivate the sates staff is not existing in the
Company
• Yearly incentives don't motivate the dealers of mass market brands
OPPORTUNITIES
• Mass market is growing with established preference for biscuits
• Growing middle class in India can provide more opportunities for Parle G 's pillar
brands
• Credit given to dealers will help Parle G in expanding the width of reach, by
which the company will have a volume advantage
• Taste plays an important role in mass market which can take care of price
sensitivity to some extent
• There is low differentiation in the mass market brands
• There is a fairly good market for a high count salty cracker variety and a cream
cracker variety in the mass market
THREATS
• De-reservation of the biscuit industry may attract foreign players who initially
will try to attack the premium segment, which is already established for Parle G
• A characteristic feature of premium market consumer is that this segment is not
brand loyal; therefore there is a chance of the consumers to shift to other brands in
the near/distant future
35

36. • Too much concentration in the mass market may affect the companies market in
this established segment
• Mass-market venture may account for this cannibalization
• A large number of competitors each having respective bold in different markets of
the company's pillar brands will account for high contribution/orrir
36

37. CHAPTER 3
RESEARCH METHODOLOGY
OBJECTIVE OF THE STUDY
PRIME OBJECTIVE
To find out the competitive activity and merchandising through retailer of PARLE G
BUISCUIT in south Delhi.
OTHER OBJECTIVE
 To find out the consumer preference according to retailer view.
 To find out the satisfaction levels towards service provide by PARLE G.
 To find out the major competitor of PARLE G BISCUIT.
SCOPE OF THE STUDY
FMCG Sector is a growing sector in India at high pace. Biscuit manufacturing industries
has lot of scope in the Indian economy. Company manufactures according to the
consumer’s interest. There is a high competition in biscuit manufacturing industry’s such
as Parle-G, Sunfeast, Priya gold, etc. consumer prefers to take that product which not only
satisfy him but also his colleagues, family, natives. This study helps in determining right
choice for them.
DATA COLLECTION METHOD
Data collection is an elaborate process in which the researchers make a planned research
for all relevant data. Data is the foundation of all market research. Data are facts may be
obtained from several sources. Data can be classified as:
37

38. •
Primary data
•
Secondary data
PRIMARY DATA
It is gathered for the first time by the researchers. If the secondary data is found to be
inadequate or unavailable, the researcher goes for primary data.
COLLECTION OF PRIMARY DATA
The researcher was assigned to do a comparative study on PARLE G BISCUIT. In order
to accomplish the job, the researcher adopted the two-way strategy to collect the primary
data.
Secondly to complete the job in a more genuine way, retailer survey was conducted
sample of 30 rational retailers were taken and they were supplied with a structured nondisguised questionnaire. The idea was to seek out the market position of PARLE G
BISCUIT.
The data collected was collected from different retail outlets of biscuit namely:
 Shops
 Confectioners
 Kirana and general stores
SECONDARY DATA
Secondary data is the data borrowed from secondary sources by the researcher.
Secondary data can be internal or external i.e, internal records of the company or
information available from library and other statistical organization.
In a Market Research Project Field Work has a very vital role to play. As a matter of fact,
it’s the back bone of any Market Research Project. Field work basically consists of
collection of primary data. In this project, researcher had to undergo a lot of Field Work.
38

39. For the purpose researcher has a visit various cinema halls, public attractive places,
colleges & school canteens etc.
The whole area which was to be surveyed was divided into different segments randomly.
Simultaneously survey of both retailers and consumers was carried out. The researcher
worked in the field for a span of one & half months.
Later on whole data which was collected from field was well scrutinized & tabulated for
analysis. Its interpretation has been provided in most easy to understand manner with the
help of suitable diagram & charts.
.
39

40. CHAPTER 4
DATA PRESENTATION AND ANALYSIS
The Sale of 6 SKUs (Stock Keeping Unit) in 4 Regions namely Western UP,
Eastern UP, Central UP and Rajasthan was analyzed for a Period of three months from
April to June. In April, there were no Promotions on these SKUs (Stock Keeping Unit)
while in the Month of May and June these SKUs were offered with Promotions. The total
Sale of these SKUs (Stock Keeping Unit) without Promotion i.e. in the month of April
was compared with the total Sale of these SKUs with Promotions in the month of May
and June. The total Percentage increase in Sales from April to May and then subsequently
from May to June was analyzed. The Effect of these Promotions on the total Sales was
calculated.
These promotions are launched especially for the rural marketsand therefore their
effectiveness is to be tested in the rural market only. These has been introduced to
increase the sale of these biscuits in rural market.
The RPD’s and the UPD’s of each and every Superstockist was tracked. It was
tracked that whether the RPD’s have meet their sales target of 35,000 and UPD’s of
50,000 or not. If they have not met their targets by when are they going to meet their
targets and what is the reason they have not yet met their sales target.
Thereafter the monthly reports of April, May and June were compared and the
Percentage increase in Sale was calculated.
For all the three months the Overall Sale as well as the RPD and UPD Sale was
Calculated for all the four Regions. In Addition to this the the total Percentage of
Stock reaching the Rural market and the Urban market was also calculated. At each
and every step the Percentage increase in Sale of euery region was calculated.
The Analysis and Finding of this Projects are as follows:
SALES ANALYSIS OF CONSUMER PROMOTION
TOTAL SALES (in Ttonnes)
APRIL
MAY
JUNE
10
13
44
1
3
4
2
3
7
MATERIAL
50:50 150G
TIGER KESAR KULFI 100G
TIGER ROSE MILK 100G
40

41. TIGER ORANGE CREAM 100G
10
15
22
TIGER ELAICHI CREAM 100G
TIMEPASS CLASSIC S.150G
1
1
1
3
7
5
It is clearly depicted from the above Graph that there has been a tremendous increase
in total Sales of all the SKUs (Stock Keeping Unit) from April to June due to the
Promotional Schemes offered with these SKUs during this Period. The maximum
swing in the total Sale was observed for 50:50 150gm which is about 44 tonnes in
June as compared to only 10 tonnes in April.Also in this region, there has been a
noticeable increase in the total Sale of the Tiger Orange Cream 100 gm. The sale was
increased from 10 tonnes in April to 22 tonnes in June. The Percentage increase in
the total Sale of this SKU (Stock Keeping Unit) from April to June was 120%.
The Total Sale of all the rest of the SKUs (Stock Keeping Unit) has also increased
Marginally during this time Period.
41

42. TOTAL SALES (in Tonnes)
APRIL
MAY
JUNE
35
56
109
1
1
7
1
0
6
61
62
70
2
4
8
3
7
27
MATERIAL
50:50 150G
TIGER KESAR KULFI 100G
TIGER ROSE MILK 100G
TIGER ORANGE CREAM 100G
TIGER ELAICHI CREAM 100G
TIMEPASS CLASSIC S.150G
TOTAL SALES(in Tonnes)
EASTERN UP
120
109
100
80
60
40
56
APRIL
MAY
35
20
0
70
6162
27
11
91340 50:50
150G
7
91344 TIGER
KESAR KULFI
100G
1 0
8
2 4
6
91345 TIGER
ROSE M ILK
100G
91346 TIGER
ORANGE
CREAM 100G
91347 TIGER
ELAICHI
CREAM 100G
JUNE
37
91350
TIM EPASS
CLASSIC
S.150G
It is clearly seen from the bar Diagram that in this region, the maximum Percentage
increase in total Sales was for 50:50 150gm and Timepass Classics 150gm. There
has been a tremendous increase (212% for 50:50 150gm and 800% for Timepass
Classics 150 gm)in sale for these SKUs (Stock Keeping Unit) due to promotional
Schemes offered with these SKUs (Stock Keeping Unit).
42

43. There has been a Marginal increase in the Sale of rest of the SKUs (Stock Keeping
Unit).
TOTAL SALES (in Tonnes)
MATERIAL
50:50 150G
TIGER KESAR KULFI 100G
TIGER ROSE MILK 100G
TIGER ORANGE CREAM 100G
TIGER ELAICHI CREAM 100G
TIMEPASS CLASSIC S.150G
APRIL
8
6
4
13
3
3
MAY
12
8
5
14
4
4
JUNE
88
6
6
18
9
27
TOTAL SALES(in Tonnes)
CENTRAL UP
100
88
90
80
APRIL
70
MAY
60
JUNE
50
40
27
30
20
10
8
12
6 8 6
13 14
4
18
5 6
3
4
9
3
4
0
91
340 50:50 1
50G
91
344 TIGER
KESAR KULFI
1
00G
91
345 TIGER
ROSE MILK
1
00G
91
346 TIGER
ORANGE
CREAM 1
00G
91
347 TIGER
ELAICHI
CREAM 1
00G
91
350
TIMEPASS
CLASSIC S.1
50G
In this region also, the Maximum increase in Percentage total Sales was Observed
for 50:50 150 gm and Timepass Classics 150 gm. The Percentage increase in Total
Sales of 50:50 150 gm from April to June due to Promotions was 1000% and for
Timepass Classics 150 gm was 800%.
An unusual trend in increase in sale was Observed in case of Tiger Kesar Kulfi 100
gm. There has been a increase in sale of this SKU (Stock Keeping Unit) from April
to May but there has been a Drop in the Sale from May to June. This is because of
the non availability of this SKU (Stock Keeping Unit) in this Region.
43

44. TOTAL SALES (in Tonnes)
MATERIAL
50:50 150G
TIGER KESAR KULFI 100G
TIGER ROSE MILK 100G
TIGER ORANGE CREAM 100G
TIGER ELAICHI CREAM 100G
TIMEPASS CLASSIC S.150G
APRIL
36
8
7
16
6
2
MAY
41
10
7
13
7
13
JUNE
70
11
13
32
4
19
TOTAL SALE(in Tonnes)
RAJASTHAN
80
70
70
60
50
40
36
APRIL
41
MAY
32
JUNE
30
20
8 10
10
11
7 7
13
16
13
6 7 4
13
19
2
0
91
340 50:50
1
50G
91
344 TIGER
KESA R KULFI
1
00G
91
345 TIGER
ROSE M ILK
1
00G
91
346 TIGER
ORA NGE
CREA M 1
00G
91
347 TIGER
ELA ICHI
CREA M 1
00G
91
350
TIM EP A SS
CLA SSIC
S.1
50G
As it can be seen in the above chart sale of 50:50 due to promotion shoot up like
anything in month of June that is a increase of around 89%. Also other SKUs (Stock
Keeping Unit) like TIGER ORANGE and TIGER ELAICHI showed a decreasing
trend due to unavaiParle G ity of stock of the given product.
44

45. EASTERN UP
PERCENTAGE
80
70
60
50
67.7
60
43
40
40
30
20
57.9
57
50 50
10
0
42.1
32.3
%Rural Sale
% Urban
0 0
91340 50:50
91344
TIGER
KESAR
KULFI
91345
TIGER ROSE
M ILK
91346
TIGER
ORANGE
91347
TIGER
ELAICHI
91350
TIM EPASS
CLASSIC
The affect of promotion is clearly seen in the Eastern UP. The target rural sale
according to superstockists contribution should be 61%. Only TIGER KESER
KULFI and TIGER ORANGE are close to the target whose Rural Sales Percentage
are 60% and 57% respectively. For all the rest of the SKUs (Stock Keeping Unit) the
Percentage Rural Sale is very less than the targeted in this month.
The SKU named TIGER ROSE MILK does not show any sale neither Rural nor
Urban in this region. This is due to non availaParle G ity of this SKU (Stock Keeping
Unit) in this region during the month of May.
%Rural
aterial
50:50
TIGER KESAR KULFI
TIGER ROSE MILK
TIGER ORANGE
TIGER ELAICHI
TIMEPASS CLASSIC
% Urban
Sale
6.7
18.5
5.4
28.7
16.3
20
Sale
93.3
81.5
94.6
71.3
83.7
80
45

46. PERCENTAGE
CENTRAL UP
100
90
80
70
60
50
40
30
20
10
0
94.6
93.3
83.7
81.5
80
71.3
%Rural Sale
% Urban
28.7
18.5
6.7
91340 50:50
16.3
20
5.4
91344
TIGER
KESAR
KULFI
91345
TIGER
ROSE M ILK
91346
TIGER
ORANGE
91347
TIGER
ELAICHI
91350
TIM EPASS
CLASSIC
The target rural percentage sale should be at least 34% according to Superstockists
contribution in this area. TIGER ROSE MILK has done the least sale among all the
SKUs(Stock Keeping Unit) . There should be slight increase in sales of TIGER
ORANGE i.e. up to 5% so as to reach the targeted rural sale Percentage. None of the
SKUs (Stock Keeping Unit) has reached the targeted Sales Percentage in the month
of May.
%Rural
Material
50:50
TIGER KESAR KULFI
TIGER ROSE MILK
TIGER ORANGE
TIGER ELAICHI
TIMEPASS CLASSIC
% Urban
Sale
38.3
50
50
40
28.3
43.6
Sale
61.7
50
50
60
71.7
56.4
46

47. RAJASTHAN
PERCENTAGE
80
70
60
50
40
30
71.7
61.7
60
50 50
56.4
50 50
43.6
40
38.3
28.3
%Rural Sale
% Urban
20
10
0
91340 50:50
91344
TIGER
KESAR
KULFI
91345
TIGER ROSE
M ILK
91346
TIGER
ORANGE
91347
TIGER
ELAICHI
91350
TIM EPASS
CLASSIC
The target rural percentage sale should be at least 48% according to Superstockists
contribution in this area. TIGER KESAR KULFI and TIGER ROSE MILK has
reached their target Rural Sale Percentage. Rest all the SKUs are below the target
sale Percentage. TIGER ORANGE and TIMEPASS CLASSIC are close to the
targeted Sale and need slightly more efforts to reach to the targeted Percentage in the
next month.
PERCENTAGE RURAL AND URBAN SALE SKU (Stock Keeping
Unit) WISE IN MONTH JUNE
%
%Rural
Material
50:50
TIGER KESAR KULFI
TIGER ROSE MILK
TIGER ORANGE
TIGER ELAICHI
TIMEPASS CLASSIC
Urban
Sale
10
10
6
12
17
45
Sale
90
90
94
88
83
55
47

48. WESTERN UP
PERCENTAGE
100
90
94
90
88
83
80
55
45
60
%Rural Sale
% Urban
40
20
0
10
10
91340
50:50
91344
TIGER
KESAR
KULFI
12
6
91345
TIGER
ROSE M ILK
91346
TIGER
ORANGE
17
91347
TIGER
ELAICHI
91350
TIM EPASS
CLASSIC
The target rural percentage sale should be atleast 16.8% according to Superstockists
contribution
in
this
area.Only
TIMEPASS
is
doing
exceptionally good but rest SKUs (Stock Keeping Unit) i.e. 50:50 (12.3%) and
TIGER Cream(Aggregate 14.6%) are less than the target percentage.
%
%Rural
Material
50:50
TIGER KESAR KULFI
TIGER ROSE MILK
TIGER ORANGE
TIGER ELAICHI
TIMEPASS CLASSIC
Urban
Sale
47
60
71
60
50
46
Sale
53
40
29
40
50
54
48

49. CHAPTER 5
CONCLUSION & RECOMMENDATIONS
Sales Promotional Offers helps the company to increase the over sales of the product
under promotion because consumers tend to buy in ample amount due to small
duration of the promotion and feel value for their money.
 But through these promotional schemes company earns fewer margins.
 It also helps in widening their consumer base i.e. it attracts new triers.
 It creates the brand awareness among the consumers about the newly launched
product like Tiger cream.
 Products which are less popular among the consumers like Pepper Checker are
also get Promoted.
 It helps to increase the repurchase rate of the occasional buyers
 Since the promotions were designed for rural market and rural market contributes
to 70% of the total market hence attracting more consumers. And turn them to loyal
users
 It enhances brand image
 Since attractive promotion attracts consumers hence retailers push products under
promotion rather than competitors products of same kind.
 Sales promotion also attracts brand switchers who are primarily looking for low
price good value of premiums.
49

50. Learnings through Trade Promotions:
 to persuade the RPDs and UPDs to carry the brand because they are more
concentrated in making sales of the given company product so as to get maximum
incentives.
 to persuade the RPDs and UPDs to carry more units than the normal amount
as they have to reach the target sale under Mera RPD Mahaan Scheme.
 to induce RPDs and UPDs to promote the brand by featuring, display, and
price reductions so as to attract more consumers.
 to stimulate RPDs and UPDs and their sales clerks to push the product than
competitors products otherwise they wont be able to reach their sales target.
 Also Attract more RPDs and UPDs to take participate in the contest because of
the incentives.
Problems
 Stock out:
It was observed that most of the Promotional SKUs (Stock Keeping Unit) were
out of stock at most of the depots during the Promotional Period which has
effected the total sales of these SKUs in these four regions tremendously.
 Non availaParle G ity of Freebies:
It was observed that sometime during the Promotional Period the Freebies which
has to be given with the main Product were not available. Due to their
unavailaParle G ity the Promotion for that Particular SKU (Stock Keeping Unit)
was not carried for that Period of Promotion.
 Allocation Problem:
The allocation was the most prominent problem during this Promotion. The stocks
were not allocated in the Rural and Urban markets according to their Percentage
area contribution. In some areas the stock was supplied more which was not in
accordance with the Percentage area contribution of that region while in some
very less stock was supplied as compared to their Percentage area contribution.
50

51. Due to this most of the time major part of the stock was dispatched in the Urban
markets which has seriously affected the Rural sales.
 Dispatch Problem:
There was no proper schedule for dispatching & receiving of orders generated.
Generally the Stocks are Dispatched late by about a week from the depots due to
which the stock reaches late to the wholesalers and during that week the
wholesalers face the problem of non availability and are left with very less or no
stock to sell.
 Poor sale promotion skills:
According to observations, sale was not promoted skillfully in most of the
Regions. The retailers in these regions have not taken appropriate efforts so as to
promote the promotional products skillfully.
51

52. Recommendations
As already discussed above, there are certain issues and flaws associated with
Sales Promotion, so in order to implement it effectively and efficiently we would
like to suggest certain recommendations to the company:
Production department should make efforts to make available all of the product
varieties in the depot norm wise. So that each and every variety should be available
according to the generated order so as to meet the stock out problem.
I recommend strong coordination between production and the sales department. So
that a proper production forecast for each variety can be maintained by the
production department.
Proper allocation of the stock from the depot according to the Superstockists
contribution so that neither there is excess stock in one region nor stock outs in other.
I also recommend to increase average number of lines so that all the SKUs (Stock
Keeping Unit) are available in the market.
Apart from setting overall target for all the SKUs (Stock Keeping Unit), there should
also be individual SKU wise target so that RPDs and UPDs are able to make sales of
unfamiliar products also.
To increase the sales margin the price value of the main brand should be relatively
higher i.e. around thrice of the Freebie for example instead of Rs10 pack of 50:50
150G Freebie Pepper Checker should be given with Rs15 pack of 50:50.
There should be a system from where different distributors can see the stock position
of company and as well of other distributors. It will help the distributor in a way that
if some distributors who wants the same.
Contests like MERA RPD MAHAAN should be held every quarter.
52

53. CHAPTER 6
BIBLIOGRAPHY
www.bookboon.com
www.wikipedia.org
53