What must a biscuit contain to be considered as good and popular among the people of different age, income and from different regions, for almost a century?
This is the story of one such brand. So how did a simple biscuit company sell 40 crore Parle-G biscuits every day and still remained the world’s largest selling biscuit?
Parle Products began in the year 1929 by the Chauhan family in Vile Parle Mumbai. Although a small-scale manufacturing company then, it was the most trusted company for India consumers especially through Parle G. Despite this biscuit, Parle has over 150 products, and currently, operates in diverse food segments like snacks, confectionery, beverages, etc.
Known earlier as Parle Gluco Biscuits, the name underwent a change in the 1980s. The “G” initially stood for “Glucose,” though it later took on a new meaning: “G for Genius.” In 1947 when India got independence, Parle Biscuits confidently marketed its biscuits as the ‘Made in India’ substitute to British manufactured biscuit brands, thus carving out a personality and USP for itself.
But how exactly has an enlarged-and-spread Parle managed to remain relevant for such a long time? The answer lies in the application of the 4 Ps of marketing- Product, Price, Place and Promotion. Every single factor has been honed down to the last detail for the decades that have passed in order to ensure Parle-G stays relevant, no matter the competition.
4Ps Strategy of Parle
Product, Price, Place, and Promotion. This section is a bit like a walkthrough of Parle’s marketing gallery, showcasing how they’ve artfully balanced tradition and innovation to remain a market leader.
Product
Parle is a brand but more than that its popularity turned it into a part of every Indian household. They have the diversity issue mastered with a product range that includes the classic Parle-G biscuits and extending into more modern snack items and sweets. Some of the famous brands that fall under the product of Parle are KrackJack, Monaco and the moderately premium brands of Milano and Hide & Seek. Remarkably, they have been still catering to the local palettes and at the same time introducing new tastes occasionally. Such a wide list of products serves a vital function in maintaining their positions within a target market, making sure that a wide range of customers with diverse preferences could be served.
The commercial title ‘‘Kal Ke Genius’‘or ‘‘Genius of Tomorrow’’ works wonders for the brand and captures Parle-G’s continuing relevance – a biscuit that seems to be loved by many generations of Indians and is crucial for nourishing the young minds.
Price
This brings the compensation and the profitability into perspective, and when we talk about pricing, then we realize that Parle has been quite the strategist. This aspect of their products is well adopted as they make them as cheap as possible without having to rely on cheap quality products. For instance their Parle-G biscuits they still sell at a very low price of Rs. 2 even today. It’s not about targeting all the income levels but having a loyal customer base that looks at Parle as the provider of great value for money.
Place
When it comes to distribution, Parle has an incredible network in place. They make certain that whether in the heart of a city or a village, people get easy access to Parle products. Parale has operations that have over 23 manufacturing units and reaches out to over 6 million retailers across the length and breadth of India, something that can only be augmented through logistics. It’s quite an achievement! They are always making sure that every tea shop and supermarket have shelves lined up with their products.
The “From India’s Heartland to Global Spotlight: The “Parle-G’ Journey” campaign focuses on realizing growth from a local biscuit brand to a well-known global biscuit that has achieved massive sales due to its huge distribution base. Highlights of this campaign depict how Parle has positioned its products in both peri-urban and rural centers.
Promotion
Like their featured products, Parle’s promotional strategies are as diverse and vibrant. While there are sweet TV advertisements that make people feel the childhood emotions, there are always amazing digital campaigns on social networks that attract people’s attention– these moments Parle tested on people. Also, the unique sponsorships and publicity campaigns that they have made sure are always unique have managed to ensure that the brand is always visible.
Finally, the video “How Parle G and Shaktimaan marketing campaign was a success” reveals one of the best Parle campaigns. This campaign promoting the product with a favorite television character, the superhero Shaktimaan, was especially popular among young people and helped to increase the company’s image.
In this ad film, we hear and witness a mother performing a number of activities at the same time. Picking up on this and how his mother is trying, the child does something rather considerate on his own. The given slogans of the campaign include ‘’Jo auron ki khushi mein paaye apni khushi ‘’ which means, ‘’he who finds his happiness in the happiness of others.’’
BCP Matrix of Parle Products
Among a range of products, Parle has products in biscuit category, confectionery, snack products and some superior quality products as well. Listed below are details of some of Parle’s brands along with a positioning of the product portfolio in the BCG Matrix which categorizes products into Stars, Cash cows, Question marks and Dogs based on the growth rate of the product in the market and its relative market share.
1. Stars (High Market Share, High Growth)
Stars are one of the key brand-building growth engines that take the brand forward. Products such as Parle-G in the biscuit industry have very high market share because these brands are more popular among people and developing new products always demand more investment to sustain the growth and to safeguard the market against competitors.
- Parle-G: This is Parle’s flagship product and one of the best-selling biscuits globally. It has maintained high market share and growth, making it a star in the matrix.
- Monaco: Another highly popular biscuit, Monaco enjoys significant market share and is continuously growing, particularly in the snack category.
- Hide & Seek: Positioned in the premium biscuit segment, Hide & Seek has seen high growth, especially among urban consumers, making it a star in the category.
2. Cash Cows (High Market Share, Low Growth)
For Parle Products the Cash Cows among which are KrackJack and Marie biscuits are vital in as far as financial sustainability is concerned. These products generate regular revenues with extreme conversions, supporting other great pursuits and keeping market and growth ongoing.
- KrackJack: Known as one of the oldest biscuit offerings by Parle, KrackJack has a solid market share. However, its growth rate has plateaued, which positions it as a cash cow.
- Marie: Another staple product, Parle Marie, has a loyal customer base and high market share but is in a low-growth segment.
- Melody: The famous chocolate-filled toffee enjoys strong market presence but is in a saturated market, classifying it as a cash cow.
3. Question Marks (Low Market Share, High Growth)
These are potential avenues of growth but they are surrounded with risks, these are dotted lines or question marks. Products such as Parle G Gold and Milano lie in this category because while they present potential in growing segments, they represent candidates that need fundamental strategic decisions as to whether they should invest more in them in order to possibly elevate them to the status of Stars, or to stop funding them if ROI continues to remain marginal.
- Parle G Gold: This variant of Parle-G has potential but hasn’t captured a significant market share yet. Its growth prospects are high, but it’s still battling for market dominance.
- Kismi: The traditional caramel toffee has its niche audience, but its market share remains low, despite being a long-standing product.
- Milano: Positioned in the premium segment, Milano is a higher-end biscuit offering, and while the premium biscuit market is growing, Milano is yet to capture a large market share.
- Parle Fab: A relatively newer offering, Parle Fab is growing but still struggles to break into the more established markets.
4. Dogs (Low Market Share, Low Growth)
Products such as Parle Coconut Cookies are considered by the company to be more or less peripheral and having little prospect of expansion. Here they may also undermine cash flow from more profitable categories hence forcing Parle to make divestment or redeployment of resources on more healthy products within the portfolio.
- Hide & Seek Fab: Despite being part of the successful Hide & Seek range, this variant has not performed as well in the market.
- Parle Coconut Cookies: A product that has not gained much traction, falling into the low-growth, low-share category.
- Parle G Royale: This is a niche product that has not seen much growth and holds a smaller market share.
Social Media Presence of Parle
Parle has established a vibrant social media presence that engages a diverse audience across platforms like Facebook, Instagram, and Twitter . Parle’s social media presence truly captures the essence of its brand by connecting with people on a personal level. Through heartfelt storytelling and nostalgic content, Parle evokes fond memories of shared moments over a pack of Parle-G. Their posts often feature relatable anecdotes, user-generated stories, and fun challenges that invite followers to participate and share their own experiences. By celebrating Indian culture and everyday joys, Parle fosters a warm sense of community, making each follower feel like part of the Parle family. This approach not only strengthens brand loyalty but also highlights the emotional connections that people have with Parle products.
Given the extent of Parle’s product portfolio, the team was able to tap into recipe- related content to stay in touch with their customers. They urged the people to use Parle products to try innovative recipes throughout the lockdown period. These efforts were clubbed under #BuildAReceipePicks, where Parle shared simple recipes submitted by consumers – dishes that could be easily whipped up with their products.
Advertising Campaigns of Parle
Advertising campaigns are the heartbeats that keep a brand’s essence alive, pulsating through the veins of commerce and whispering tales of wonder to consumers, drawing them into a dance of loyalty and excitement.
You Are My Parle-G” Campaign:
- Objective: To evoke nostalgia and reinforce the emotional connection between consumers and the Parle-G brand, positioning it as an integral part of every Indian’s life.
- Impact: This campaign significantly boosted brand affinity, to engage directly with consumers. It revitalized the brand image, increasing consumer engagement and loyalty across diverse demographics.
Parle G “Birthday Party” Campaign:
- Objective: To foster a deeper emotional connection with the audience by showcasing the ingenuity and compassion of children, aligning with Parle G’s brand image of celebrating everyday brilliance.
- Impact: The campaign, through a series of heartwarming films, effectively strengthened Parle G’s position as a family-centric brand that champions the values of joy and kindness. It resonated well with families, enhancing Parle’s appeal as a brand that supports and celebrates thoughtful and meaningful interactions. This strategy not only reinforced customer loyalty but also attracted new consumers who value community and family-centric messaging.
“Swadeshi” Campaign for Parle Products:
- Objective: To capitalize on the growing sentiment of nationalism by promoting Parle as a proud Indian brand that contributes positively to the economy.
- Impact: This campaign resonated well with the audience amidst rising calls for local products, bolstering sales and reinforcing consumer pride in choosing home-grown brands. It effectively leveraged patriotic emotions, enhancing customer loyalty and preference for Parle during a period of increased competition from foreign brands.
What’s New with Parle in 2024?
Parle Agro Launches SMOODH Lassi:
Parle Agro, adding to the flavors of its beverage line up, launched SMOODH Lassi- a quality dairy product. It starts with its brand new product launch accompanied by Varun Dhawan and has created a 360-degree campaign around the product’s signature creamy texture and It is positioned to transform the lassi segment with its affordable and trendy looking bottle.
Parle Leads FMCG Market:
In Kantar’s 2024 report, Parle has secured its position as the leading FMCG brand in India for the 12th time with a CRP of 7,980 million. They still are in a good position to compete with other rivals such as Britannia Industries, Amul and Tata Consumer Products.
Parle Products’ Financial Performance:
Despite the fact that its growth reduced to 4% in the FY23, It still remains The largest Food Company in India. The company has revenues of Rs 17,223 crore and a sharp rise in its net profit of Rs 905 crore from Rs 16,490 crore of sales and Rs 255 crore of net profit last year. Nonetheless, it remains market leader in the packaged food segment – Parle G and Monaco notwithstanding.
Parle is a perfect combination of being traditional and at the same time holding a continuous evolution. From the traditional and popular Parle-G biscuit to the newly introduced SMOODH Lassi, they do know how to fascinate people of each age. Going forward, Parle appears to be perfectly poised to rule the market- if they continue its traditional investment strategies while incorporating innovative concepts.
