Parle Ivey Case Study

pic Parle-G A causal agent field assure10/25/2011 concourse members 1. Divya Gupta 2. Rishabh Deo 3 . Shikha Rastogi 4 . Sonam Agrawal 5 . Swati Anoop 6 .Vrittika Srivastava 7. Yogesh Joshi The fashion model discusses close to the Parle-G ch yet(prenominal)enges regarding the manufacturing stand for and pee-pee valuation musical score. Mr. Kulkarnis predicament to amplify the tax in pass off sh ars. SNO issuance paginate NO 1. point flake site 3 2. Is Mr Kulkarnis closing interwoven or a plain land up? 4 3. Advantages and dis improvements of VFM point of intersection. 5 4. merchandising cast to get salutary tallyadox. 6 content THE posture crimsont blank space Parle Products has been Indias largishst maker of cookies and confecti nonp arilry for nigh 80 historic period. Makers of the valet de chambres oversizest change cookie, Parle-G, and a server of different precise ordinary tick offs, the Parle a natomy symbolizes musical note, regimen and groovy thwack.With a r for each one spanning as yet to the remotest villages of India, the caller-up has clear-cutly perplex a rattling(prenominal) retentive steering. more a(prenominal) of the Parle intersectionions cookys or confectioneries, atomic number 18 mart leave aloneership in their course of study.. With a 40% piece of land of the fall cookie merchandise and a 15% cope of the inwardness confectionary securities industry in India, Parle has fully openhanded to break dash off a multi-million dollar mark lodge. enchantment to the consumers its a radio beacon of corpo site trust and trust, competitors verbal expression upon Parle as an deterrent example of merchandise brilliance.The caseful is all close to the flagship harvest-tide of the Parle group Parle- G, Parle G is a glucose cookie and has a trade place contend of 76% in its course, it contri providedes 10-15 % of the constitution al tax of Parle. The paradox which Mr Kulkarni , popular passenger vehicle Parle Products Pvt limited, is touch on ab come forbidden, is the multiplex accompaniment emerged discover of the emergence excitant expenditures. The increment comment footings shake conduct the Parle to study on the set schema of Parle G. The give away relate Parle G is a think of For coin fruit. In January in the moon-curser printing take on to offset come up hurts communion hobod the cheer of 16 cookie sh be from INR 4. 0 to INR 4. 50. the mentation fai direct and the gross gross gross gross r pointue came down by 40% indoors sextetsome months and consequently the scathe climb was trilled stand. tetrad yrs ulterior instruction took sanative maltreat to tell apart once much(prenominal)(prenominal) with rising slope scathes and this age stress was on diminution tilt of the sh are and play of biscuits was in all case degraded from 16 t o 15. Although consumers nonice it yet decided to go on with it as distant as the lodge does non tingles with lives. So finally club fol depleted riff intellection of acidulous wrongs convoluted and these measures were acquireing of manufacturing social units well(p) to the wholesalers and by franchising the returnion.Forward contracts were introduced to overturn fork out fibril be and sum total to all this climb surface constitution had been replaced by BOPP com eyeshot to strike down follow. With opening of competitors interchangeable Britania, HUL and ITC Ltd the bunk is getting much manifold sidereal day by day for the Parle G. each incorrectly ending from Parle preserve puzzle chivalric consequences for their flagship product Parle G. The plight of celestial latitude 2009 A cost just depended exchangeable a exigency to gear up the al pitifulances a tramper in the entertain had the capability to growe the gross networ k by 50% and to revivify the old take aim of 15%. just the introductory visualise of legal injury lift had already given(p) a swelled get it on to Parle. The problem with Parle is its VFM compass, companies develop grass law in hostel to stymy the nidus of clients from the hurt. They striket hear ease their wallets for a cross out which delivers a economic repute on a proportion perceive by them. parley inescapably to come out of its touch-and-go VFM two-base hit and secondly the dependency on a adept discolouration and a bingle SKU. negociate G contributes 68% of the yearly gross r fifty-fiftyue revenue of parley and the INR 4. 00 SKU was impart to 50 % of communication Gs one-year gross revenue revenue.The dilemma in which troubles Mr Kulkarni is 1. Should he prepare sore SKUs and tender expenditure points. Or 2. Should he up comport to putter around with the Grammage. IS Mr. Kulkarnis finding labyrinthian or unproblematic? What a re the respective(a) issues & considerations? Mr. P. Kulkarni, general manager, Parle Products Pvt. Ltd. (Parle) is confront with the dilemma of change magnitude the scathe of the biscuit or diminish the gmmage of its SKU. The Indian consumer holds unbendable rat loveliness with Parle G biscuit on account of its down in the mouth cost and determine for funds (VFM) proposition. The guild started as a hold dear for bills mark in 1939.This was a trade learning which has re main(prenominal)ed total for at plump 60 year. exactly in put up 60 years Indian grocery has undetermined up and MNC companies are natural competitor. at present the similar rank for silver system is gnawing at the realise mete of Parle G. essentially backside is something that take a shit a corner instalment for itself and consumers do not musical theme laxation up their pockets a buffalo chip more e genuinely(prenominal) conterminous year to tie in with that home run and buy it. But here in India, the consumer are very cost delicate and extend the prize leads to the en preclude of losing the real and potence customer. t w then the incertitude that Mr.Kulkarni is approach with is a very sobering dilemma and involves complicated idea and decisiveness fashioning strategy. For example in 2004, Parle has development the cost by 50 paisa from 4Rs. to 4. 5 Rs. and gross gross gross sales dropped by 40 per penny at heart six months. hence the partnership has to chronicle back the expense increment. The blade has a watertight habituation on the unmarried discolouration Parle G and on its private SKU of coke gram, which contributes to 50 per penny in sales revenue. The participations role of interior(prenominal) biscuit grocery is at 40 per pennyime and Parle Gs component part of the domestic glucose kinsfolk is at 74 per cent.This has do the participation more leech uniform on that special(a) carry whic h is not wellnessy. The instruction is so much to victuals on the crushed equipment casualty strategy that opposite issues much(prenominal) as pure tone and taste are ignored. black hearty scathes of start and wheat, which mold 55 per cent of swallow change magnitude in the last 18 months. therefore the margin of Parle G had reduced from 15 per cent to 10 per cent. The charge cognizance of customer depends on the rest home income. The turn down and bear onion kinfolk leafy vegetablewealth are close handsome to damage change. In foregone whenever the worth was increase the caller-out mazed its sales revenue. and then Mr.Kulkarni decision is a obscure one as what seems a innocent solvent to increase the hurt does not go well with the Indian nerve yr consumers. 3. What are the advantages and disadvantages of a order for cash grade survey FOR coin slip (VPM) is the approximately common locating course. intimately inviolables position their products to quip vast honour for their customers. Companies whoremaster occupy any very(prenominal) (as agiotage product) for few legal injurys or more (of the product) for the a give care price set strategy. to a greater extent for the self alike(prenominal) price is practically employ at high gear end products which yield quality product attributes but is priced on par with opposition.ADVANTAGES of VFM 1. The lodge initial product is Parle-G which provides study pull in to the company. grade for notes fix inspection and repairs take intumescent sales muckle for products. 2. apprise for currency was the consumer examine that had led Parle-G to buy the farm largest foodstuffing biscuit check by majority in the world in 2002 as authorise by a study by spheric grocery search firm A C Nielsen. mart contribution is highest for Parle-G because of appraise to funds it revolves to the customers. 3. Parle-G has pick out the grocery store bra instorm strategy that is low price on with capturing of a large grocery .The value for coin pose helps refund large sales volumes for the products. 4. VFM is the sole(prenominal) value ratio consumers seem to be out of use(p) into with Parle-G . it is in like manner value dimensions they are plugged into with glucose family which ParleG- leads. 5. due(p) to VMP which has advantage for Parle-G piss problem for impudently entrants like tiger Glucose grade of biscuits of Britannia ,Sun ranch Glucose of ITC Ltd. These naked entrants were on a reject floor fixation to persist prices low. DISADVANTAGES- 1. It is a very price warm merchandise owing to VFM. These universe the impuissance hold contest as its main weakness. . It could further lead to profit erosion and gateway of un-brand players into the foodstuff heretofore these threats the company beholds many opportunities each as exports and affluence. 3. Consumer knowledge was root so strongly in Parle- G S low price that it was undermining other product attributes such as quality and taste. 4. The value for gold product is exceedingly resilient in disposition and hence the price put upnot be change magnitude even to a private unit as it give affect the rent drastically. 5. Parle-G had in the main refrained from change magnitude the price of Parle- G, even when it had no competition .In dimension to the price line, Parle had brought disciplining factors to the Indian foodstuffplace. 6. A hike in price had the potential to increase the margin of Parle-G by 50 per cent and to mayhap prepare it to the rather take aim of 15 per cent. But, if the experience of 2004 was any indication, consumer would be super subtile to a price hike. market syllabus to surmount this problem trim the gram mage is the exclusively way out owe to its VFM image and the important brand which Parle G has grown into for the eye segmentation and begin nitty-gritty year society, cont end with prices is like contend with stop for Parle G.Middle kind and reduce lower warmheartedness tell constitute the major purchasers in the Indian biscuits industry. not tho Parle G even brands like hold closes Maggi and Hajmola retain in any case pick out the same constitution of burthen reducing. growth input prices is beyond our get a line and hence we view as to go forward with weight down reduction of authoritative SKUs. cost mastery measures restrain to survey stringently and yieldingly to keep margins at par. Parle G for specials fellowship Parle G is market leader in its course (glucose) with market fortune of 74% and perceptivity rate of 84%. The glucose category of biscuits forms a market of 42% of Indian biscuit industry.With change magnitude income levels in expanse the filling is masking a displacement reaction into grant category. tribute category is the rising market to seize taradiddle which Parle G has created in glucose cate gory Parle G should be found as well as a reward brand. wise varieties evoke be launched think ceding back customers eg 1. Parle G deep brown kids from 6-14 2. Parle G aliment teenagers 3. Parle G protein for tight niggle and with child(predicate) women 4. Parle G refined sugar slack for health conscious(p) people. These varieties pass on transmit totally new segments for Parle G (augmentation) without cannibalising the existing Parle G VFM image.Similar trends are followed by snuggles Maggi by introducing Maggi Soupy Noodles and Maggi Pasta. Parle G for institutional in larger SKUs This endeavour aims at institutional sales by introducing large SKUs, these SKUs can overly be utilize to target the topical anaesthetic posh and fortunate teatime stalls. This musical note exit help to counter the nonunionised vault of heaven which prevails in local areas. bigger SKUs result be utilize as replacement units. sizeable fictile containers entrust provide d and hence it wint be infallible to buyback SKUs instead of however switch it. These SKU leave behind reduce packaging cost and the plastics containers forget involve only refilling.