Description
The report is an earnest endeavor made to understand the present market scenario in market captured by the Parle Agro and retailer perception about the brands of Parle agro particularly Café Cuba.
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1
MBA Project Report on
Retailer perception
On
Parle Agro
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EXECUTIVE SUMMARY
The report is an earnest endeavor made to understand the present market scenario in market
captured by the Parle Agro and retailer perception about the brands of Parle agro particularly
Café Cuba. We are required to see the coverage by the Parle Product Pvt. Ltd., and bring out
the potential and loyal retailers so that the company could maintain the market leadership in
the existing business scenario in the Soft drinks market. The study encompasses the penetration
of the existing Parle Products and the market potential for the new product like Café Cuba.
Their motives were to study the working of the distributors in market. They have mentioned
the problems and the loop holes in the Parle’s distribution system and the promotional tools,
which they have found during the course of study and recommended various corrective
measures for it. I also studied the perception of retailers about their preferences for Soft drinks,
and their overall buying behavior with the help of questionnaire and analyzing the data and
suggest some points which will help Parle agro to plan the strategies.
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INTRODUCTION ABOUT THE INTERNSHIP
As an intern I performed the roles of collecting the information needed to understand the
retailer perception towards Parle Agro products The following report describes the activities
carried out during a 10-week, full-time internship at the PARLE AGRO PVT LTD. The Report
contains information about the organization and the Research conducted on the Retailer
perception towards Parle agro products, responsibilities performed throughout the period
between May to June 2014. More than a plain account of tasks, the objective of this Study is
to reflect upon the experiences collected during the internship from the perspective of
understanding what Retailers are really looking out from Parle agro to push their products in
the market and understanding what would influence them to sell Parle Agro Products.
TOPIC OF THE STUDY
A study on “Retailer perception towards Parle agro products.”
NEED FOR THE STUDY
This study was done because to understand will the retailers will accept the newly released
product Café Cuba to sell in their shops
To understand what are the attributes that they consider when coming up with selection of the
products to sell, the level of service that Parle is providing to its sellers
To understand what retailers are looking out for when they are signing the deals of buying
the products.
OBJECTIVE OF THE STUDY
? To know the retailer perception towards Parle agro products including the newly
launched product café Cuba
? To know the availability of Parle agro products in the retail market
? To know the quality and preference of Parle agro product in the retail market
? To know the distribution channel efficiency of Parle agro.
? To collect the effectiveness of various Policies of the company such as Pricing,
Distribution, Advertisement, Product/ Brand preference.
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SCOPE OF THE STUDY.
The study will cover the “Retailer perception towards Parle agro products”.
The study was done to analyze how Parle Agro’s products and factors are influencing the
Retailers to choose their products and in turn retailers perception about Parle agro products.
The study also analyses expectations that the Retailers look for before choosing the brand to
sign the deal with the brand products.
The information collected helps Parle Agro to understand what Retailers are actually looking
out for when it comes to choosing the brand to sell it in the stores. The study is carried out to
understand the Retailers Perception towards Parle Agro products with special reference to Café
Cuba product which was recently released by Parle the brand acceptance and evaluating the
data that was collected.
LITERATURE REVIEW.
Retailer Perception process by which people translate sensory impressions into a coherent and
unified view of the world around them. Though necessarily based on incomplete and unverified
(or unreliable) information, perception is equated with reality for most practical purposes and
guides human behavior in general.
- Perception is a complex process
After a stimulus is detected by the sense organs, the perception process comes into play
and involves the interplay of three processes, viz., selection, organization and
interpretation.
- Perception is a subjective process
As two people may perceive the same stimuli differently .While two persons may be
exposed to the same stimuli, the manner in which they select them, organize and
interpret them is different.
- Perception is broad in nature
It includes a physiological component (through sensation), as well as sociological and
psychological components.
“Grocery retailers are operating in a slow-growth market. The pursuit of market share is one of
the main concerns for retail managers. The retail structure is becoming increasingly
standardized and homogenous because of concentration of the ownership of stores”. MCB UP
Ltd, 2013
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“The country's largest biscuits and confectionery products maker Parle Products said it is
planning to expect sales of 1000 crores sales of Café Cuba by 2016”. Economic times Preethi
Chamikutty, 2014
“Parle Products wins PETAs first-ever Vegan Food Awards”. Webnewwire.com, 2014
RESEARCH METHODOLOGY
Many companies that invent new products set high initial value to the products and similar to
the practice in the industry and these rates are typically decided on the basis of products
positioning, demand, competition, inflation and other factors. Even small differences in prices
create product differences. Many direct marketers’ monitor inventories, costs and demand at
any given moment and adjust prices instantly. Throughout most of history, prices were set by
negotiations between buyers and sellers.
A marketing research process has some highly interrelated steps.
Formulate the problem
The first valuable function of any marketing research is to define the problem, that needed to
be solved and the most important part is to specify the objective. As per the project work my
objective was to understand the perception of Parle Agro in various Retails.
Determine the research design
The sources of information and research design, depends on how much is known about the
problem. As per the study descriptive research design is selected and the questionnaire is
prepare to meet the canteen owner.
Sources of data collection
This project depends upon the primary as well as secondary sources which are as follows.
Primary Source
? Questionnaire
? Observation
? Interaction with Retailers during data collection project
Secondary Source
? Management of Parle Agro.
? Various magazines.
? Internet.
SAMPLE DESIGN
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Sample selection process: It requires specifications as whether it as a probability or non-
probability sample. As per the study I have selected probability sampling, because in
probability sampling each population element has a known, non-zero chance of being included
in the sample.
Collection of primary data
As per the survey I have designed the sample as follows
? I have selected the units for my survey was Retail shops hyper markets etc.
? The sample size is 100.
? The method I have used is simple random sampling
TOOLS USED FOR DATA ANALYSIS: The analysis of data collected is coded and presented
systematically with the use of Microsoft Excel and the analysis of primary data is been done
by using statistical tools like averages, mode, percentage and graphs to make the study more
effective.
LIMITATIONS OF THE STUDY
? The research has been restricted only to a particular area in Bangalore
? Observation techniques and questionnaire method have also been used to make the analysis
more comprehensive and effective, but both methods also have certain limitations
? The bias of the respondent might have led to errors in the survey findings
? Since the analysis is based on options and suggestion, the results at best are near to truth
? The sample size for the study was hundred respondents, which is small, hence the results may
not be conclusive
? Period of study was restricted to 9 weeks.
? The selection of sample was restricted only to Hypermarkets and Retail shop
? Time and resources where limited to conduct a detailed study
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INDUSTRY PROFILE
OVERVIEW OF THE INDUSTRY
The beverage market is worth $55 billion worldwide. The tides are turning for many beverage
categories. While the carbonated soft drink and beer categories are merely treading water with
flat sales, the energy drink category is surging ahead like never before. Bottled water, ready-
to-drink coffee, ready-to-drink tea and sports drinks follow close behind with substantial sales
increase- drinks without added sugar, no beer, along with developments in juice drinks and
dairy-based drinks, are helping to turn around sales in these categories. What follows is a
category-by-category look at the state of the beverage industry, including the top brands, new
products, innovations and future trendsetters. In order to be successful in the marketplace, one
has to think in terms of health innovation, flavour innovation, ingredient innovation and
specific age groups. These are the factors that will shape the future of the beverage industry.
“Today’s consumers are concerned with overall health and wellness. As a result, there is
significant impact on food and beverage purchases. Many studies have shown that consumers
are as concerned with good health as they are about maintaining a high quality of life.”
Do you know what type of new beverage consumers are most likely to try? Do you know where
they are most likely to pick those products up? Do you know why? Beverage Industry wanted
to know the answers to these questions and to delve deeper into the ever-increasing number of
new product launches in the beverage market. “The soft drink industry is training people to
seek out new products, even the big guys are coming out with limited-edition flavours, and
consumers are beginning to see that there is more flavour activity going on in the category.
Whether that really nets anybody any sales gains is another thing, but it is teaching consumers
to seek out and try new products. It’s also trying to create some excitement there.” In spite of
several challenges and restrictions faced by this industry, it is a ‘roll’ like never before.
Customer preferences may have shifted, but they are still always on the lookout for a can of
‘coke’ or a new ‘flavoured’ drink to quench their thirst.
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INDIAN BEVERAGE MARKET
The size of the Indian food processing industry is around $ 65.6 billion, including $20.6 billion
of value added products. Of this, the health beverage industry is valued at $230 million; bread
and biscuits at $1.7 billion; chocolates at $73 million and icecreams at $188 million. The size
of the semi-processed/ready-to-eat food segment is over $1.1 billion. Large biscuits &
confectionery units, Soya processing units and starch/glucose/sorbitol producing units have
also come up, catering to domestic and international markets. The three largest consumed
categories of packaged foods are packed tea, biscuits and soft drinks. The Indian beverage
industry faces over supply in segments like coffee and tea. However, more than half of this is
available in unpacked or loose form. Indian hot beverage market is a tea dominant market.
Consumers in different parts of the country have heterogeneous tastes. Dust tea is popular in
southern India, while loose tea in preferred in western India. The urban-rural split of the tea
market was 51:49 in 2000. Coffee is consumed largely in the southern states. The size of the
total packaged coffee market is 19,600 tonnes or $87 million. The total soft drink (carbonated
beverages and juices) market is estimated at 284 million crates a year or $1 billion. The market
is highly seasonal in nature with consumption varying from 25 million crates per month during
peak season to 15 million during off-season. The market is predominantly urban with 25 per
cent contribution from rural areas. Coca cola and Pepsi dominate the Indian soft drinks market.
Mineral water market in India is a 65 million crates ($50 million) industry. On an average, the
monthly consumption is estimated at 4.9 million crates, which increases to 5.2 million during
peak season.
GROWTH OF SOFT DRINK MARKET
SOFT DRINKS
Carbonated drinks are dominated by artificial flavors based on cola, orange and lime with Pepsi
and coca-cola dominating the market. The entire part of the drink is based on its artificial
flavors and sweetening agents as no natural juice is used.
MARKET
? Cola products account for nearly 61-62% of the total soft drinks market.
? Two global majors’ Pepsi and coke dominate the soft drink market.
? The market is worth around Rs.5000 crores with growth rate of around 10-15%.
? The annual per capita consumption in India is only about 6 bottles vis- a- Vis 340 bottles
in the U.S.
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• The production as soft drinks has increased from 5670 million bottles in 1998-99 to 6230
million bottles in 1999-2000 industry source.
• Growth market this year is expected to be 10-15% in value terms and 20-22%in
Volume terms.
REGULATORY INFORMATION
? Import tariffs are quite high in India, ranging from 26 to 74.6 percent. Tariffs include
basic duty, additional duty and special additional duty.
? Unprocessed food products, such as plant products require a phytosanitary certificate
from the Ministry of Agriculture
? Food and beverage products exported to India must conform to domestic laws.
Standards are governed by the Food Safety Standards Authority of India (FSSAI)
GROWTH DRIVERS
The income of the Indian population is rising thanks to India's strong economic growth and
around 65 per cent of Indians are under the age of 35 which means more people will benefit
from increasing incomes. Improved incomes are driving demand for specialty and value-added
food products. The combination of the growing urbanization of the Indian population and more
women joining the workforce, is leading to a higher consumption of processed and value added
food and beverage products. Consumers are more accepting of different food and drink and
there is higher demand for more western style snacks.
BEVERAGE MARKETS CONTRIBUTION
The soft drink market such as carbonated beverages and juices constitutes around USD 1 billion
producing 284 million crates per year. In the peak season, the consumption capacity reaches
25 million creates per month and during off season the same goes down to 15 million crates in
a month. Pepsi and Coca cola are the two leading brands in the Indian market. The mineral
water market in India is a USD 50 million industry and produces 65 million crates. Around 4.9
million crates is usually consumed each month but it rises to 5.2 million crates in the peak
season.
Consumption of non-alcoholic beverages is expected to increase by 16.5-19% over the next
three years as more people are trading up to packaged drinks, according to a report by the
Indian Council for Research on International Economic Relations (ICRIER) and the Indian
Beverage Association (IBA) Corporate manufacturers of non-alcoholic beverages are expected
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to grow at an annual rate of 16.5% and non-corporate manufacturers at 19%, according to the
report titled Unleashing the Potential of the Non-alcoholic Beverage Sector.
The estimates are based on an assumed gross domestic product growth of 7%, which is much
higher than the 5% growth several economists are forecasting.
India’s beverage market is largely unorganized, with nearly 75% of the demand serviced by
companies in the unorganized sector. But in the past 18 months, the world’s largest beverage
makers Coca-Cola Co. and PepsiCo Inc. invested heavily towards building capacity and
developing bottling infrastructure in the country over the next 7-8 years, to meet the growing
demand for packaged beverages.
The ICRIER-IBA report said that with the rise in incomes India’s non-alcoholic beverage
sector has evolved both in terms of product variety and the number of companies in the market.
GROWTH OF FRUIT DRINK MARKET
FRUIT JUICES
Branded fruit juice market in India holds an immense potential. Usually confused and
considered synonymous with non-aerated drinks, fruit pulps, juices and squash are high sugar
beverages, which are centrifuged and filtered to give a semi- clear appearance. In the past, this
sector enjoyed an excise exemption, keeping cost at minimal. However the withdrawal of
exemption has inflated costs and can affect growth, with dramatic change possible on
reintroduction of excise exemption.
MARKET
? The organized fruit beverage market is estimated at Rs.500 crores market.
? (Nectars, drinks and juices combined).
? The market has grown at a 20% to 25% rate.
? Of this, more expensive juices segment has grown at rate of 40%this year. It accounted
for only 15% of the fruit beverage 3 years back.
? In –home consumption of juices has gone up from 30%, three years back to 80%today.
? Mango based drinks account for two thirds of fruit drinks industry
FMCG INDUSTRY IN INDIAN PERSPECTIVE
India’s FMCG sector is the fourth largest sector in the economy and creates employment for
more than three million people in downstream activities. Its principal constituents are
Household Care, Personal Care and Food & Beverages. The total FMCG market is in excess
of a high growth. It is currently growing at double digit growth rate and is expected to maintain
a high growth rate. FMCG Industry is characterized by a well-established distribution network,
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low penetration levels, low operating cost, lower per capita consumption and intense
competition between the organized and unorganized segments.
Market share movements indicate that companies such as Marico Ltd and Nestle India Ltd,
with domination in their key categories, have improved their market shares and outperformed
peers in the FMCG sector. This has been also aided by the lack of competition in the respective
categories. Single product leaders such as Colgate Palmolive India Ltd and Britannia Industries
Ltd have also witnessed strength in their respective categories, aided by innovations and strong
distribution. Strong players in the economy segment like Godrej Consumer Products Ltd in
soaps and Dabur in toothpastes have also posted market share improvement, with revived
growth in semi-urban and rural markets.
MARKET SIZE OF FMCG INDUSTRY IN INDIA
Fast moving consumer goods (FMCG) sector in India is one of the largest sectors in the
economy with estimated total market size of around Rs 120,000 crore in 2012. After sluggish
growth for couple of years through 2002-2004, the segment has picked up the speed again and
has been clocking substantial growth numbers during last 5-6 years. The sector also continued
to do reasonably well following the global financial crisis as the rural India, which has become
the new demand heaven for the industry, remained largely aloof from the slowdown. With the
Indian economy now back on the high growth trajectory, the industry has massive potential to
grow further, particularly in rural Indian and the high end products as expected size will be
around Rs. 180 crore in 2015.
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COMPANY PROFILE
In 1929 a small company by the name of Parle products emerged in British dominated India.
The intent was to spread joy and cheer to children and adults alike, all over the country with its
sweets and candies. The company knew that it wouldn’t be an easy task, but they decided to
take the brave step. A small factory was set up in the suburbs of Mumbai, to manufacture
sweets and toffees.
Parle based in Mumbai, India 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. Its reach spans even to the remotest villages of India. Many
of the Parle pro ducts - 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 confectionery market in India, Parle has grown to become a multi-
million dollar company. Parle Agro is a food and beverage company based in Mumbai, India.
Parle is a leading Indian Food and Beverage Company, the only Indian transnational giant with
the past experience of having successfully launched leading soft drink brands like “Frooti,
Appy, Saint Juice, N-Joi and Bailley”. Today its brand portfolio consists of No. 1 brands like
Frooti along with Apply, Saint Juice, N-Joi and Bailley. Parle agro was the first to identify the
dormant mango segment in India and launch India’s first national Mango drink - Frooti Mango.
Today Frooti has a 25% market in the Fruit Drink segment. Today, the Parle Group turnover
is over Rs.600 crores with group strength of over 1000 employees, including over 400
professionals. Parle Agro has its factories located in Silvassa, Patalganga, Bhopal, Chennai,
Ghaziabad and Hyderabad. Parle Agro strength is our people who have worked towards making
our presence felt throughout the country and all over the world through a strong franchise
network and well-developed strong infrastructure.
Over the years, the group split into three different companies – Parle Agro, Parle Bisleri and
Parle Products. Currently, all three are separate companies with separate ownership and
management. They also have different products manufactured under them. All three companies
continue to use the family trademark name – ‘Parle’ under which the current companies
are named.
Parle Agro is an Indian company in the beverages industry and has brands like Frooti,
consistent winner of India's fruit beverage brand, Appy, Appy Fizz and packaged drinking
water, Bailley.
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A pioneer in the Indian industry, Parle Agro is associated with many firsts. They were the first
to introduce fruit drinks in tetra packaging, first to introduce apple nectar and the first to
introduce fruit drinks in PET bottles
In 2008, Parle Agro forayed into foods with the launch of two confectionery brands, Mintrox
mints and Buttercup candies. This was soon followed by two more brands - Buttercup Softease
and Softease Mithai.
Recent beverage products from Parle Agro include Frio, café Cuba and Grappo Fizz. In 2009,
Parle Agro forayed into snacks with the launch of Hippo, in line with the company’s vision of
becoming a major player in the foods and beverages industry.
? Headquarters: Mumbai
? Annual turnover: Rs. 1000 Cr
? 12 company-owned factories across India
? Reaches out to around 5 Lakh outlets across India.
Available Anywhere: Today, the great strength of Parle Products is the extremely widespread
Distribution network. Even at the remotest places, you can buy Parle biscuits and sweets from
the local grocer. It has taken years to create this extensive network. Parle’s sales force started
with one salesman in Bombay and some agents in few other cities. Gradually, Parle Products
expanded.
Soon sweets and biscuits were being sent by rail to Calcutta, Delhi, Karachi, Madras and other
major cities. As production increased, distribution was amplified. Full time salesmen were
appointed in different areas. Currently, Parle Products has over 33, 00,000 distribution outlets.
Parle Agro, today, is a 2,000 Cr organization. Parle Agro are known for their diversification
into the Foods sector as they are for leadership in the Beverages sector. Parle Agro operate
under four business verticals: Beverages (Fruit drinks, Nectars, Sparkling drinks and
carbonated soft drink), Packaged Drinking Water, Foods and PET Preforms. Each of these
verticals operates as independent entities. As a part of our penetration strategy, Parle Agro have
also set-up an exclusive division for Beverages.
VISION
“To be the leaders in our business. We will stand apart from the competition by being the first
in the market to innovate.”
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MISSION
We will be the leaders in our business by – maintaining high quality, introducing new and
innovative products, reaching every part of India, remaining customer-centric, constantly
upgrading our knowledge and skills.”
NATURE OF ORGANIZATION
PARLE AGRO is a trusted name in the Indian beverage industry and has been refreshing India
since more than two decades with leading brands like Frooti, Apply Classic, ApplyFizz,
Bailley, Saint Juice, LMN & recently launched Grappo
Fizz. Parle Agro Pvt., Ltd. manufactures, distributes, sells, and exports fruit drinks in India and
internationally. The company offers fruit and milk drinks, packaged water, and apple and
mango drinks in polyethylene terepthalate (PET) bottles and containers, and tetra packs. The
company also operates a health and fitness studio for woman. The company distributes its
products through franchisees. Parle Agro Pvt., Ltd. Was founded in 1985 and is based in
Mumbai, India. Parle Agro has been a trusted name in the beverage industry providing
wholesome and healthy agro-based drink brands. It has successfully launched some of India’s
leading beverages like Frooti, Appy and N-Joi, And packaged drinking water, Bailey, over the
last two decades. In a country where health consciousness is growing at a rapid pace, Parle
Agro, with its numerous fruit-based drinks, hasstruck a chord with the masses. It brings to the
consumers the magic of premium quality fresh fruit drinks conveniently packed and available
all through the year.
Fruit beverages are whole some, easy to digest, highly refreshing with natural nutritional values
as compared tosynthetic and aerated drinks. Parle Agro's
Frooti is India's first national mango drink. The mango segment is 95% of the Indian fruit drink
market and Frooti has 85% market share in the tetra pack segment. Made from fresh and
premium Indian mangoes, Frooti has grown to be one of India's top 50 most trusted brands.
When Parle Agro launched N-Joi with real fruits and fresh milk, it not only launched a new
healthy beverage, but also created a whole new category in India. The milk shake claims to
contain no preservatives and is full of nutritional goodness. It's a delicious filler and an apt
quick refreshing nourishment for today's hectic stressful life.
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OBJECTIVE
? To build successful channel relationships (vendor to partner)
? To assess the critical success factors when selling through distributors
? To outline terms and conditions for establishing partnerships
? To integrate sales and marketing objectives
? To create and understand a channel plan
? To ensure that products has availability, visibility and freshness
TYPE OF INDUSTRY AND BUSINESS
? Foods
? Beverages
? Fast Moving Consumer Goods (FMCG)
QUALITY POLICY
Hygiene is the precursor to every process at Parle. From husking the wheat and melting the
sugar to delivering the final products to supermarkets and store shelves nationwide, care is
taken at every step to ensure the best product of long-lasting freshness. Every batch of biscuits,
confectioneries & snacks are thoroughly checked by expert staff, using the most modern
equipment. This ensures consistent and perfect quality across the nation and abroad.
Concentrating on consumer tastes and preferences, the Parle brand has grown from strength to
strength ever since its inception. The factories at Bahadurgarh, Haryana and Neemrana,
Rajasthan are the largest biscuit and confectionery plants in the country. The factory in Mumbai
was the first to be set up, followed soon by the one in Bangalore, Karnataka. Parle also has 10
manufacturing units for biscuits and 75 manufacturing units for confectioneries on contract.
TERRITORY DESIGN
? General retail
? Modern Trade
? Institutional
INFRASTRUCTURE FACILITIES
For the brands Frooti, Appy Classic and Appy Fizz and Café Cuba, Parle Agro Pvt. Ltd. has
strategically located manufacturing facilities at Patalganga, Bhopal, Chennai, Hyderabad and
Ghaziabad. Parle Agro have franchisee location at Kolkata, Guwahati, Ambala and Jharkhand.
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The locations of these units ensure a constant output and easy distribution. Each factory has
state-of-the-art machinery with automatic packaging facilities.
The plant that produces Bailley meets the stringent requirements of the BIS norms comprising
of chemical and microbiological tests. All the plants adhere to the recommended International
Code of Practices and the General Principles of Food Hygiene.
The state-of-the-art plants also minimize the wastage and render high yield. We have strength
of highly qualified and experienced team of dedicated engineers. These engineers along with
our team of R&D professionals are constantly involved in innovating various techniques and
methods to add value to the industry. The extensive distribution network, built over the years,
is a major strength for our company, since it helps Parle Agro to make products available to
consumers even in the most remote places.
MARKET SHARE
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AWARDS
PROMOTERS
Name of members Designation
Vijay K Chauhan Chairman & Managing Director
Sharad P Chauhan Managing Director
Raj K Chauhan Managing Director
Ajay V Chauhan Executive Director
Anup S Chauhan Executive Director
Samar S Chauhan Executive Director
Primary Competitive Advantages
? Products are manufactured under the most hygienic conditions
? The drinks are made available in a Tetra Pak and Pet Bottles
? Healthy and nutritious alternative which are also delicious
? Access to best quality fruits
? Strategically located manufacturing facilities
? State-of-the-art manufacturing plants
? An extensive distribution network
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Memberships
? Agricultural and Processed Food Products Exports Developments Authority (APEDA)
? Federation of Indian Chambers of Commerce and Industry (FICCI)
? Project Exports Promotion Council of India (PEPC)Federation of Indian Export
Organizations (FIEO)
MOTIVATIONAL FACTORS FOR THE RETAILERS
1. Trade schemes:
These are undertaken by the company only for the hard selling items e.g. Biscuits and Snacks
etc. for these the company raises the margins by 2%, also schemes like good packaging in case
of butter and cheese is undertaken by the company. However this is only a short-term initiative
to push the products of the company.
2. Glow boards:
The company puts up glow boards at the retailer and pays the major portion of the cost.
3. Schedule of the salesmen:
They provide the retails with this schedule so the retailers can pre estimate the quantities of the
various products needed.
4. Infrastructure facilitation:
The company facilitates the retailers to buy beautiful stalls by formulating an easy payment
Program and a commitment to buy back the equipment at a reasonable price when the value of
the equipment has depreciated.
Channel members of the distribution network
The Parle distribution network is has essentially four levels as enlisted below:
? Parle Depots
? Wholesalers and Distributers
? Carry Forward Agents (if required)Retailers
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Channel members and logistics
Parle has nearly 1500 wholesalers, catering to 425000 retail outlets directly or indirectly. A two
hundred strong dedicated field force services these wholesalers and retailers. Additionally, there
are 31 depots and Carry and Forward agents supplying goods to the wide distribution network.
Parle has level1, level 2, level 3 distribution channels levels.
DISTRIBUTION CHANNEL NETWORK OF PARLE
Manufacturing Unit of Parle Agro at various Locations
Parle Agro Depots
Wholesalers and Distributors
Transportation to next level
Retailers: Small shop / City stores
Procurement: Customers
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PRODUCTS PROFILE
Beverages categories
Frooti
Launched in 1985,
At that time Frooti was India's only beverage sold in a Tetra Pak packaging at
the time. It went on to become the largest selling Mango drink in the country.
Frooti remains the most preferred mango drink, the world over.
Café Cuba
Launched in May 2013,
Café Cuba is Parle Agro's re-entry, after 20 long years, to the carbonated soft
drinks category. With Café Cuba, Parle Agro has introduced the carbonated
coffee category in India.
FRIO
Yet to Launch
Frio is a range of deliciously flavoured carbonated drinks. A refreshing new
addition to the Parle Agro portfolio, it is currently available in Lemon, with a
flavoursome sweet lime juice note and in Orange, with a zingy sweet burst.
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Bailley Soda
Launched in 2010
Bailley Soda is the most powerful soda in the country, promising incredible
power in every sip
Bailley Packaged Drinking water
Launched in 1993
Bailley has been the symbol of purity for years now. A perfect source of pure
and safe drinking water
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AREA OF OPERATIONS
Dhishoom Masala Soda
Launched in 2012
India's first Jeera Masala soda, Dhishoom. It packs a flavourful punch with
every sip.
Appy Fizz
Launched in 2005,
Appy Fizz is India’s first sparkling apple drink available in a champagne shaped
PET bottle. A cool drink to hang out with. Appy Fizz hangs out at cool places
like college canteens, discotheques, and high-end restaurants. Appy Fizz is
available in 300ml, 500ml & 1 ltr. PET.
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COMPETITORS PROFILE
The Coca-Cola Company re-entered India through its wholly owned subsidiary, Coca-Cola
India Private Limited and re-launched Coca-Cola in 1993 after the opening up of the Indian
economy to foreign investments in 1991. Since then its operations have grown rapidly through
a model that supports bottling operations, both company owned as well as locally owned and
includes over 7,000 Indian distributors and more than 1.3 million retailers. Today, our brands
are the leading brands in most beverage segments. The Coca-Cola Company’s brands in India
include Coca-Cola, Fanta Orange, Fanta Apple, Limca, Sprite, Thums Up, Burn, Kinley,
Maaza, Maaza Milky Delite, Minute Maid Pulpy Orange, Minute Maid Nimbu Fresh and
Nestea Iced tea, the Georgia Gold range of teas and coffees and Vitingo (a beverage fortified
with micro-nutrients).
In India, the Coca-Cola system comprises of a wholly owned subsidiary of The Coca-Cola
Company namely Coca-Cola India Pvt Ltd which manufactures and sells concentrate and
beverage bases and powdered beverage mixes, a Company-owned bottling entity, namely,
Hindustan Coca-Cola Beverages Pvt Ltd; thirteen authorized bottling partners of The Coca-
Cola Company, who are authorized to prepare, package, sell and distribute beverages under
certain specified trademarks of The Coca-Cola Company; and an extensive distribution system
comprising of our customers, distributors and retailers. Coca-Cola India Private Limited sells
concentrate and beverage bases to authorized bottlers who are authorized to use these to
produce our portfolio of beverages.
PepsiCo is a global food and beverage leader with net revenues of
more than $65 billion and a product portfolio that includes 22 brands that generate more than
$1 billion each in annual retail sales. Our main businesses – Quaker, Tropicana, Gatorade,
Frito-Lay and Pepsi-Cola – make hundreds of enjoyable foods and beverages that are loved
throughout the world. PepsiCo’s people are united by our unique commitment to sustainable
growth by investing in a healthier future for people and our planet, which we believe also means
a more successful future for PepsiCo. We call this commitment Performance with Purpose:
PepsiCo’s promise to provide a wide range of foods and beverages for local tastes; to find
innovative ways to minimize our impact on the environment by conserving energy and water
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and reducing packaging volume; to provide a great workplace for our associates; and to respect,
support and invest in the local communities where we operate.
PepsiCo entered India in 1989 and in a short period, has grown into one of the largest and
fastest growing food and beverage businesses in the country. PepsiCo India’s growth has been
guided by PepsiCo’s global vision of “Performance with Purpose”. PepsiCo India’s diverse
portfolio includes iconic brands like Pepsi, Lay’s, Kurkure, Tropicana 100%, Gatorade, Quaker
and young, but immensely popular and fast growing brands, such as Nimbooz and Aliva.
PepsiCo India has not only grown to become one of the country’s largest food and beverage
businesses but has also become a powerful and consistent driver of PepsiCo’s global growth.
Dabur India Limited is the fourth largest FMCG Company in India with
Revenues of US$1 Billion (over Rs 5,300 Crore) & Market Capitalisation of US$4 Billion (Rs
20,000 Crore). Building on a legacy of quality and experience of over 125 years, Dabur
operates in key consumer products categories like Hair Care, Oral Care, Health Care, Skin
Care, Home Care & Foods.
Indian Tobacco Company came into existence in the year 1910 with the name of
Imperial Tobacco Company of India. The company is famous for its employees’ satisfaction
policies and the employees of the organization are happy with their employer. The company
deals with different FMCG products and it cannot be any more called as Tobacco Company.
The company offers a
Wide range of employment opportunities in the areas of purchase, technical, legal, finance and
corporate development.
FUTURE GROWTH AND PROSPECTS
Parle Agro, the maker of Frooti and Appy, is gearing up to replicate its beverages success story
in the fiercely competitive snack market. Having launched Hippo, a wheat-based baked snack
last year, Parle Agro is now extending the brand. It will launch Hippo Round next month, a
new snack sub-brand in the Rs 6,500-crore salted snacks market dominated by PepsiCo’s Lays,
Kurkure and ITC’s Bingo.
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Parle Agro shortly plans to sell its carbonated apple drink Appy Fizz in cans,
Parle Agro joint MD & CMO Nadia Chauhan is scripting a fresh growth strategy to take on
multinational players in the F&B (food & beverages) sector in India. To start with, the company
is planning to grow its foods business aggressively to fight global competition. Also, the
company is planning increase its global presence this fiscal. The Rs 1,500-crore Parle Agro is
currently present in over 18 countries including the USA, the UK and Australia.
Parle Agro, a fast moving consumer goods company, is targeting Rs 1, 000 crore sales over the
next 12-14 months. The company has test marketed its latest brand, Cafe Cuba, for a few
months and is set to launch the product soon. The launch of Cafe Cuba marks the company's
re-entry into the carbonated soft drinks market.
ORGANIZATIONAL STRUCTURE
CEO
GM (Inst.)
Senior Mgr. Key A/c Mgr. BDM BDE BDO Trainee
GM
(Modern Trd.)
GM
(General Trd.)
GM
(Horeca)
GM
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SWOT ANALYSIS
SWOT analysis is a strategic planning method used to evaluate the Strengths, Weaknesses,
Opportunities, and Threats involved in a project or in a business venture. It involves specifying
the objective of the business venture or project and identifying the internal and external factors
that are favourable and unfavourable to achieve that objective. The technique is credited to
Albert Humphrey, who led a convention at Stanford University in the 1960s and 1970s using
data from Fortune 500 companies. A SWOT analysis must first start with defining a desired
end state or objective. A SWOT analysis may be incorporated into the strategic planning model.
Strategic Planning has been the subject of much research.
? Strengths: characteristics of the business or team that give it an advantage over others
in the industry
? Weaknesses: are characteristics that place the firm at a disadvantage relative to others
? Opportunities: external chances to make greater sales or profits in the environment
? Threats: external elements in the environment that could cause trouble for the business
ANALYSIS OF PARLE AGRO
STRENGTHS
• Low price
• Sizeable market share in tetra pack segment'
• An experienced team of sales
• Diversified product range
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• Brand Name
• Understanding of consumers
WEAKNESS
• Improper and irregular supply
• Dependent on its flagship brand, Frooti and Appy
• Poor packaging
• Lack of schemes for retailers and distributors
OPPORTUNITY
• Retaining loyal retailers or wholesalers
• Products PARLE AGRO In medical shops
• Changing consumer preference
• Increasing demand for sugar free
• Product line extension
THREATS
• Highly advertised brands such as Pepsi and coca cola.
• Margin war among the major Brands.
• Rise in the cost of raw materials
PRODUCT LIFE CYCLE AND BCG MATRIX
Is the succession of strategies used by business management as a product goes through its life-
cycle. The conditions in which a product is sold (advertising, saturation) changes over time and
must be managed as it moves through its succession of stages.
The goals of Product Life Cycle (PLC) management are to reduce time to market, improve
product quality, reduce prototyping costs, identify potential sales opportunities and revenue
contributions, and reduce environmental impacts at end-of-life. To create successful new
products the company must understand its customers, markets and competitors
It is important for marketing managers to understand the limitations of the PLC model. It is
difficult for marketing management to gauge accurately where a product is on its life cycle. A
rise in sales is not necessarily evidence of growth, a fall in sales does not typify decline and
some products,
For specific products, the duration of each PLC stage is unpredictable and it's difficult to detect
when maturity or decline has begun.
Because of these limitations, strict adherence to PLC can lead a company to misleading
objectives and strategy prescriptions.
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Parle Agro as a company has reached the maturity stage in its products life cycle since products
such as Parle-G, Frooti Bailley packaged drinking water which form a major part of Parle
products’ sales have captured most of India’s market.
But for its Products like Café Cuba FRIO and Bailley Soda are in the growth and introduction
stages respectively.
So after a few years it was re launched with just (CAFÉ CUBA) carbonated drink with new
packaging. After the re-launch it has started gaining attention of its potential buyers and hence
is in the growth stage of its life cycle. It has to fight for its stand in the market since it faces
competition from Pepsi and Coca-Cola.
STARS
Stars are market leaders and growing fast. Stars have large reported profits but require a lot of
cash to finance the rapid growth. As per the company’s survey, Parle G and Frooti is touching
the peak of success & therefore comes under the STAR category thereby the Co. can invest a
large sum for its growth.
CASHCOW
A cash cow usually generates more cash than is required to maintain its market share. It is in
low-growth market but has a dominant market share. Profits & cash generation should be high
due to its Low growth, the investment needed to be Low to keep Profits High
The products like Marie, hide & seek hippo, Frooti comes under this category.
QUESTION MARK
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These are products with low market share but operate in high market growth rates. The
company puts a lot of resources in this product in the hope that it will eventually increase
market share and generate cash returns in the future.
The products like café Cuba and Frio comes under this category.
DOG
These are products which have low market shares and low market growth rates.
The products like Bailley Soda comes under this category.
PACKAGING AND LABELLING
Packaging: The time spent by a customer for picking up a product from a retail outlet is a few
seconds; therefore a package should appeal to a customer within such a small interval of time.
In this, both packaging & labelling play an important role in attracting customers both visually
& psychologically.
Parle products has the appealing packaging which influence the consumers to buy the products
which are available.
Labelling: Consumers are becoming increasingly health conscious. So it is essential to display
the contents of every product. Every packet of Parle Products, has information about the
ingredients used, nutrition facts, mailing & emailing addresses asking for feedback, phone
number, packaging date etc. All this along with the brand name and directions are printed.
POSITIONING STRATEGY OF PARLE
The relevance and importance of conventional marketing, especially in the fast moving
consumer goods category, has slid down to give way for more aggressive market savvy
solutions that can revolutionise the way products sell these days.
While dealer productivity and market penetration are still important in the overall marketing
activity, the brand has to evolve and revolve in a different orbit it has to reposition itself if it
really wants to make a difference in the highly competitive market.
Positioning a product firmly in the consumer's mind-set has been one of the major marketing
challenges that has enamoured many a marketing guru.
As organisations are re-engineering themselves to be more productive, products also need to
reposition themselves if they want to stay ahead in the marketing war game.
Consequent to the changing parameters, both tangible and intangible, if the products do not
respond and reorient themselves to the new environment, they run the risk of becoming
obscure.
The point here is that however much financial wizardry an organisation might deploy, however
much R&D they get into, however much technology they enjoy, unless brand building takes
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the front seat with clear-cut strategies that predispose the product behaviour, the chances of
creating a winner is quite remote.
The name of the marketing game is therefore repositioning your brand and thereby, the
competition. When the stakes are high and when you are not able to take the competition head-
on, the only way to survive and build on an equity is through repositioning
Theoretical Background of the Study
Perception Meaning:
It refers to the ability of giving meaning to whatever is sensed by our sense organs.
Perception Definition:
It is the process by which an individual selects, organizes and interprets stimuli into a
meaningful and coherent picture of the world. -Leon Schiff man
Nature of Perception:
- Perception is a complex process
After a stimulus is detected by the sense organs, the perception process comes into play
and involves the interplay of three processes, viz., selection, organization and
interpretation.
- Perception is a subjective process
As two people may perceive the same stimuli differently .While two persons may be
exposed to the same stimuli, the manner in which they select them, organize and
interpret them is different.
- Perception is broad in nature
It includes a physiological component (through sensation), as well as sociological and
psychological components.
Elements of Perception:
- Sensation:
The immediate and direct response of the sensory organs to stimuli.
A stimulus is a unit of input to any of the senses.
- Absolute Threshold:
The lowest level at which an individual can experience a sensation.
- Differential Threshold (JND)
It is the minimal difference that can be detected between two similar stimuli.
It is also called Just Noticeable Difference (JND).
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- Subliminal Perception
Attention paid to a message without conscious awareness of the message.
Perceptual Mechanism:
Perceptual Selection:
Human beings are simultaneously exposed to various stimuli in his/her environment.
Due to the fact, that the various stimuli cannot be treated or processed at the same time, people
become selective in their approach. They would choose some stimuli for further processing.
The choice of the stimuli would depend on what they feel is relevant for them and or
appropriate for them. This is referred to as perceptual selectivity.
Which of the stimuli gets selected is based on two factors, viz., factors external and related to
the stimuli, and factors internal and related to the perceiver.
Selection
Organization
Interpretation
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- External and related to the stimuli: These factors are those factors that exist in the
environment and are in the form of characteristic features of the stimuli. These could
take the form of size, intensity, contrast, motion, repetition, familiarity, novelty etc. In
the fields of marketing, stimuli could include the product, brand name, the features and
attributes, the packaging, the advertisement, etc.
- Internal and related to the perceiver: These factors are those factors that are related
to an individual and would differ from person to person, viz., factors like motivation,
learning, personality and self-image etc. Perceptual selectivity of a person would
depend upon what he considers relevant and appropriate as per the psychological
variables.
Perceptual Organization:
The next sub-process in the perceptual process is referred to as perceptual organization. After
the input has been received from selection stage and given to, the input/cue or the information
is organized into a coherent form, so as to able to extract meaning out of it in the next stage.
Thus Perceptual organization deals with what happens in the perceptual mechanism once the
information from the environment is received. It is a cognitive process, which is responsible
for organizing the stimuli and surrounding cues, to develop a “whole picture”, according to
one’s physiological, socio-cultural and psychographic principles.
Principles of perceptual organization
There are four basic principles of perceptual organization, viz., figure and ground, grouping,
closure and simplification.
- Figure and ground: This principle states that any stimuli that stands apart from its
environment, and contrasts against is more likely to be noticed, and treated as a unified
whole.
- Grouping: As per the grouping principle, people tend to group together the various
stimuli so that they are seen as a unified picture or unified whole; the basis for such
grouping is i) similarity among stimuli; ii) proximity of the stimuli.
- Closure: This principle states that in cases where an object is identified as incomplete
by sensation, our perceptual processes give it a complete form.
- Simplification: It states that human being have a tendency to simplify things make to
make it more understandable.
Perceptual Interpretation:
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After the input has been given attention to, and has been organized into a coherent form, a
meaning is extracted out of it. The process is totally individual, based on persons demographics,
socio cultural influences and psychographic influences. People interpret stimuli (i.e., they give
meaning to them) subjectively in accordance with their needs, expectations and experiences.
That is why perception varies from person to person.
Perceived Risk
While making a purchase decision and immediately after having made a purchase, customers
experience a state of uneasiness and tension. The purchase process results in a state of anxiety
and tension with respect to the negative consequences that could result from product usage.
This state is known as “perceived risk”; it refers to feeling of uncertainty that arises within an
individual when he fails to predict the consequences of product choice, usage and resultant
experience.
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Q1. Which age group prefer Parle agro products more?
Attributes Percentage
10-20 34%
20-30 66%
30-40 -
40-50 -
others please specify -
Total 100%
Study Insights:
The Data & chart above shows that age group of 10-20 and 20-30 prefer more of number of
Parle agro products. With this interpretation Parle should come up with new products which is
preferred by age group of others which are specified in the tables to increase its market like
coming up with diet biscuits and etc.
34%
66%
10_20 20-30 30-40 others please specify
AGE GROUP
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Q2. According to you, which is the best attribute of parle agro products?
Attributes Percentage
Taste 28%
Quality 20%
Different flavors 32%
AD's 8%
Others please specify 12%
Total 100%
Study Insights:
The Data & chart above shows that (32%) Different flavor are the highest preference that is
given to the Parle agro products by the consumers.by this information parle agro should come
up more different flavors to attract consumers.
28%
20%
32%
8%
12%
Taste Quality Different flavours AD's Others please specify
BEST ATTRIBUTE
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Q3. Do you think the brand “Parle” has a competitive edge over other brands in the market?
Attributes Percentage
yes 42%
no 58%
Total 100%
Study Insights:
The Data & chart above shows that 58% of the respondents tell that Parle agro products has a
competitive edge over other brand of products which is an advantage to tap the market with
more similar products which are liked by the consumers.
42%
58%
Yes No
COMPETITIVE EDGE
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Q4. Are the products available in all the local retail shops in the city?
Attributes Percentage
yes 38%
no 62%
Total 100%
Study Insights:
The Data & chart above shows that 62% of the Respondents tell that Parle agro products are
not available in the local retail shops this study helps in understanding how to increase the
distribution channel to make availability of the products in all the stores.
38%
62%
yes no
AVALIABILITY OF PRODUCTS
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Q5. Is the company trying to attract the new retailers?
Attributes Percentage
yes 40%
no 60%
Total 100%
Study Insights:
The Data & chart above shows that 60% of the Respondents tell that Parle agro is trying to
attract new Retailers to increase its sales and distribution to be more competitive in the market.
40%
60%
yes no
ATTRACT THE NEW RETAILERS
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Q6. Which brand of soft drinks you sell more?
Attributes Percentage
frooti -
mazza 58%
slice 42%
others -
Total 100%
Study Insights:
The Data & chart above shows that Mazza & Slice is still the preferred brand by the Retailer
and those are the products which are in high demand in the market by the consumers. This
information will help Parle agro to increase the promotional activities to attract more
consumers.
58%
42%
frooti mazza slice others
BRAND OF SOFT DRINKS
frooti mazza slice others
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Q7. Are you aware of the newly launched café cuba drink?
Attributes Percentage
yes 100%
no -
Total 100%
Study Insights:
The Data & chart above shows that 100% of the respondents are aware of the Parle Agro’s
newly launched Café Cuba availability in the market, Parle should continue the same level of
promotional activities.
100%
0%
Yes No
AWARENESS
Yes No
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Q8. What was the customer feedback about the café cuba drink?
Attributes Percentage
very good 10%
good 42%
bad 48%
very bad -
Total 100%
Study Insights:
The Data & chart above shows that 48% of the respondents told that the product taste is bad
and of 42% of the respondents told that the product is good. By this data Parle agro should
plan up the promotional strategies and design the method to position the product in a better
way where people accept it.
10%
42%
48%
very good good bad very bad
CUSTOMER FEEDBACK
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Q9. Do you think “Frooti” is offered in appropriate packings?
Attributes Percentage
yes 44%
no 56%
Total 100%
Study Insights:
The Data & chart above shows that only 44% of the consumers feel that Parle Agro provides
appropriate packing. So by this information parle agro can know that packing and the different
packages play an important role in sales of the products keeping this in mind Parle should come
up with competitive packages to increase its market.
44%
56%
yes no
PACKING
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Q10. Which brand do you purchase more in quantity among the following?
Attributes Percentage
pepsi 34%
cocacola 66%
parleagro -
others please specify -
Total 100%
Study Insights:
The Data & chart above shows that COCA-COLA is still the brand that is purchased more
compare to the any other brands that are available in the market and it is been positioned the
consumers mind as still the best brand that is available Parle agro should come up with new
strategies to change the mind set of consumers to tap the large market.
34%
66%
pepsi cocacola parleagro others please specify
BRAND THAT IS PURCHASED MORE
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Q11. Are customers willing to pay extra price if the product is of superior quality?
Attributes Percentage
yes 36%
no 64%
Total 100%
Study Insights:
The Data & chart above shows that only 36% of the consumers are ready to pay extra for
superior quality other than quality that comes to consumers mind before choosing the product
is the taste and the price of the products by this data Parle agro can know that just providing
the superior quality is the thing but also should come up with competitive attributes to attract
consumers.
36%
64%
yes no
WILLING TO PAY EXTRA PRICE
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Q12. According to you, which one of these brands has the highest preference in the market?
Attributes Percentage
pepsi 40%
cocacola 60%
parle agro -
others please specify -
Total 100%
Study Insights:
The Data & chart above shows that 60% of the respondents still prefer Coca-Cola as it is
available any time at any place of the country. By this Parle agro can understand that the
distribution of the products should be increased so that it available in the market always.
40%
60%
pepsi cocacola parle agro others please specify Others
BRAND PREFERENCE
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Q13. Which products of Parle agro has the highest share in retail market?
Attributes Percentage
frooti 60%
appy fizz 40%
café cuba -
bailley -
Total 100%
Study Insights:
The Data & chart above shows that 60% of the respondents told that the Frooti has the highest
market share compared to the other products that they have in their product category, Parle
should come up with the same strategy of promotion of sales for other products also to increase
its sales.
60%
40%
frooti appy fizz café cuba bailley
HIGHEST SHARE
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Q14. What made you to deal with Parle agro products?
Attributes Percentage
Demand from consumer 12%
Quality 30%
advertisement(merchandising) 30%
profit margin 28%
others please specify -
Total 100%
Study Insights:
The Data & chart above shows that there is only 12% demand for the products from the Parle
agro this is because the distribution channel of Parle agro is very less in turn the demand is
going down because of the less availability of the products so they the consumers are switching
to the new products that are available in the market.
12%
30% 30%
28%
PARLE AGRO DEAL
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Q15. Which company offers more profit margin to retailers?
Attributes Percentage
pepsi 36%
cocacola 64%
parleagro -
others plaese specify -
Total 100%
Study Insights:
The Data & chart above shows that Coca-Cola is the company provides the best profit margins
with its distributors which influences the sellers to select the brand which will increase sales
and also the profit margins is high. By this data Parle agro can understand that it can plan a
strategy to increase the margin for distributors.
36%
64%
pepsi cocacola parleagro others plaese specify
PROFIT MARGIN
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Q16. According to you which company has the successful pricing strategies?
Attributes Percentage
pepsi 40%
cocacola 60%
parleagro -
others please specify -
Total 100%
Study Insights:
The Data & chart above shows that Coca-Cola has the best pricing strategies as the products
are available at different packaging and different price ranges which helps the consumers to
select the one they want according to their needs where Parle has just now come up with this
strategy of offering the products in different packaging.
40%
60%
pepsi cocacola parleagro others please specify
PRICING STRATEGIES
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Q17. According to you which of the following attributes decides the success of Parle Argo’s
distribution channel?
Attributes Percentage
On time delivery 42%
Replacing old stock 48%
Solving retailers complaints 10%
Total 100%
Study Insights:
The Data & chart above shows that Parle agro success is because of on time delivery and
replacing old stock which are the main attributes that dealer’s look for when they are signing
the agreement with the company, Parle can plan the distribution according to this data.
42%
48%
10%
On time delivery Replacing old stock Solving retailers complaints
SUCCESS OF PARLE aGRO DISTRIBUTION
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Q18. Do you think Parle agro products are delivered on time?
Attributes Percentage
Yes always 26%
Yes, sometimes 40%
not at all 34%
Total 100%
Study Insights:
The Data & chart above shows that only 26% of the respondents tell that the products are
delivered on time and remaining telling that it is delayed and not at all delivered. This data
helps Parle to understand how to increase its distribution to satisfy distributors.
26%
40%
34%
Yes always Yes, sometimes not at all
ON TIME DELIVERY
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Q19. Whether the Parle agro company is replacing the old stock on time?
Attributes Percentage
yes 56%
no 44%
Total 100%
Study Insights:
The Data & chart above shows that only 56% of the respondents tell that the products are
replaced by the company and remaining tell that the products are not replaced by the company
Parle can retain its sellers only by giving them the option of replacing the products so that they
continue the sales Parle agro products.
56%
44%
yes no
REPLACEMENT OF OLD STOCK
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Q20. What kind of point of purchase displayed in your outlet for Parle agro products?
Attributes Percentage
posters & danglers 56%
leaflets 16%
banners 28%
Total 100%
Study Insights:
The Data & chart above shows that 56% of the respondents tell that there are large number of
poster and danglers are displayed at the shops to create the awareness of the brand that are
available in the shops Parle should also come up with interactive dashboards to attract
consumers .
56%
16%
28%
posters & danglers leaflets banners
DISPLAY AT YOUR SHOP
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Q21. Do you think that aggressive advertisements further increase the sales volume of Parle
agro products?
Attributes Percentage
yes 72%
no 28%
Total 100%
Study Insights:
The Data & chart above shows that 72% of the respondents told that advertisement will
increase the sales because advertisements will increase the awareness to the consumers which
in turn will increase the sales and demand for the products.
72%
28%
yes no
ADVERTISEMENT STRATEGIES
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Q22. How will you rate the overall performance of Parle agro?
Attributes Percentage
very good -
good 36%
average 64%
poor -
Total 100%
Study Insights:
The Data & chart above shows that only 64% of the respondents feel that Parle products
performance is less as the products are not readily available in the shop which is reducing the
performance in the market. By this data Parle can come up with new strategies to increase its
performance in competitive market.
36%
64%
very good good average poor
PARLE AGRO PERFORMANCE
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55
Q27. Respondent’s suggestion to Parle Agro
“They should come still more different flavours.”
“They should still improve the frequency of advertisement”
“They should increase the quality of product.”
“I nnovative ideas should be implemented.”
“They should increase the quality of product.”
“They need to do survey on customer needs.”
“Proper strategies to be done to market the product.”
“Company should show the proper awareness of quality to
the customers.”
“Company should provide the sufficient products to the
dealers.”
“Make the product availability in every stall.”
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56
CONCLUSION
? Majority of the respondents were from the age group of 20-30 (66%) who
consume Parle Agro products
? Maximum number of respondents were satisfied by the quality of the
products of Parle agro
? Respondents feel that Parle agro still don’t have the competitive edge
compared to other brands in the market.
? Availability of the products are very less compared other brands in the
market.
? Respondents feel that Coca-Cola is the best brand that is available in the
market, which they prefer it as the top brand
? Highest sales of soft drinks comes from Frooti of Parle agro.
? Respondents tell that Pepsi provides the best service and price compared
other brands in the market
? Awareness of café Cuba was very good in the market
? Only 10% of the respondents tell that the products are very good.
? Advertisement is the main part in marketing plan as it helps the companies
to position them in the minds of the consumers as the preferred brand
? Consumers liked café Cuba as per the research study done
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57
SUGGESTIONS
? Parle agro should increase its distribution channels to increase its sales.
? Advertisement of the products should be increased to create awareness.
? Different schemes should be offered to increase the interest to the
distributors
? Products should be made readily available in each and every shop
? Different variety of flours of soft drinks should be released to attract
consumers
? Extensive advertisement of Café Cuba should be made to continue the
awareness of the brand.
? Parle should tie up with outlets like coffee day, dominos etc. to create
awareness and increase sales.
? Parle should increase the delivery time comparatively
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58
BIBLIOGRAPHY
www.parleagro.com
www.wikipedia.com
www.parleproducts.com
doc_693374180.pdf
The report is an earnest endeavor made to understand the present market scenario in market captured by the Parle Agro and retailer perception about the brands of Parle agro particularly Café Cuba.
For details Contact us on [email protected]
1
MBA Project Report on
Retailer perception
On
Parle Agro
For details Contact us on [email protected]
2
EXECUTIVE SUMMARY
The report is an earnest endeavor made to understand the present market scenario in market
captured by the Parle Agro and retailer perception about the brands of Parle agro particularly
Café Cuba. We are required to see the coverage by the Parle Product Pvt. Ltd., and bring out
the potential and loyal retailers so that the company could maintain the market leadership in
the existing business scenario in the Soft drinks market. The study encompasses the penetration
of the existing Parle Products and the market potential for the new product like Café Cuba.
Their motives were to study the working of the distributors in market. They have mentioned
the problems and the loop holes in the Parle’s distribution system and the promotional tools,
which they have found during the course of study and recommended various corrective
measures for it. I also studied the perception of retailers about their preferences for Soft drinks,
and their overall buying behavior with the help of questionnaire and analyzing the data and
suggest some points which will help Parle agro to plan the strategies.
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3
INTRODUCTION ABOUT THE INTERNSHIP
As an intern I performed the roles of collecting the information needed to understand the
retailer perception towards Parle Agro products The following report describes the activities
carried out during a 10-week, full-time internship at the PARLE AGRO PVT LTD. The Report
contains information about the organization and the Research conducted on the Retailer
perception towards Parle agro products, responsibilities performed throughout the period
between May to June 2014. More than a plain account of tasks, the objective of this Study is
to reflect upon the experiences collected during the internship from the perspective of
understanding what Retailers are really looking out from Parle agro to push their products in
the market and understanding what would influence them to sell Parle Agro Products.
TOPIC OF THE STUDY
A study on “Retailer perception towards Parle agro products.”
NEED FOR THE STUDY
This study was done because to understand will the retailers will accept the newly released
product Café Cuba to sell in their shops
To understand what are the attributes that they consider when coming up with selection of the
products to sell, the level of service that Parle is providing to its sellers
To understand what retailers are looking out for when they are signing the deals of buying
the products.
OBJECTIVE OF THE STUDY
? To know the retailer perception towards Parle agro products including the newly
launched product café Cuba
? To know the availability of Parle agro products in the retail market
? To know the quality and preference of Parle agro product in the retail market
? To know the distribution channel efficiency of Parle agro.
? To collect the effectiveness of various Policies of the company such as Pricing,
Distribution, Advertisement, Product/ Brand preference.
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4
SCOPE OF THE STUDY.
The study will cover the “Retailer perception towards Parle agro products”.
The study was done to analyze how Parle Agro’s products and factors are influencing the
Retailers to choose their products and in turn retailers perception about Parle agro products.
The study also analyses expectations that the Retailers look for before choosing the brand to
sign the deal with the brand products.
The information collected helps Parle Agro to understand what Retailers are actually looking
out for when it comes to choosing the brand to sell it in the stores. The study is carried out to
understand the Retailers Perception towards Parle Agro products with special reference to Café
Cuba product which was recently released by Parle the brand acceptance and evaluating the
data that was collected.
LITERATURE REVIEW.
Retailer Perception process by which people translate sensory impressions into a coherent and
unified view of the world around them. Though necessarily based on incomplete and unverified
(or unreliable) information, perception is equated with reality for most practical purposes and
guides human behavior in general.
- Perception is a complex process
After a stimulus is detected by the sense organs, the perception process comes into play
and involves the interplay of three processes, viz., selection, organization and
interpretation.
- Perception is a subjective process
As two people may perceive the same stimuli differently .While two persons may be
exposed to the same stimuli, the manner in which they select them, organize and
interpret them is different.
- Perception is broad in nature
It includes a physiological component (through sensation), as well as sociological and
psychological components.
“Grocery retailers are operating in a slow-growth market. The pursuit of market share is one of
the main concerns for retail managers. The retail structure is becoming increasingly
standardized and homogenous because of concentration of the ownership of stores”. MCB UP
Ltd, 2013
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“The country's largest biscuits and confectionery products maker Parle Products said it is
planning to expect sales of 1000 crores sales of Café Cuba by 2016”. Economic times Preethi
Chamikutty, 2014
“Parle Products wins PETAs first-ever Vegan Food Awards”. Webnewwire.com, 2014
RESEARCH METHODOLOGY
Many companies that invent new products set high initial value to the products and similar to
the practice in the industry and these rates are typically decided on the basis of products
positioning, demand, competition, inflation and other factors. Even small differences in prices
create product differences. Many direct marketers’ monitor inventories, costs and demand at
any given moment and adjust prices instantly. Throughout most of history, prices were set by
negotiations between buyers and sellers.
A marketing research process has some highly interrelated steps.
Formulate the problem
The first valuable function of any marketing research is to define the problem, that needed to
be solved and the most important part is to specify the objective. As per the project work my
objective was to understand the perception of Parle Agro in various Retails.
Determine the research design
The sources of information and research design, depends on how much is known about the
problem. As per the study descriptive research design is selected and the questionnaire is
prepare to meet the canteen owner.
Sources of data collection
This project depends upon the primary as well as secondary sources which are as follows.
Primary Source
? Questionnaire
? Observation
? Interaction with Retailers during data collection project
Secondary Source
? Management of Parle Agro.
? Various magazines.
? Internet.
SAMPLE DESIGN
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Sample selection process: It requires specifications as whether it as a probability or non-
probability sample. As per the study I have selected probability sampling, because in
probability sampling each population element has a known, non-zero chance of being included
in the sample.
Collection of primary data
As per the survey I have designed the sample as follows
? I have selected the units for my survey was Retail shops hyper markets etc.
? The sample size is 100.
? The method I have used is simple random sampling
TOOLS USED FOR DATA ANALYSIS: The analysis of data collected is coded and presented
systematically with the use of Microsoft Excel and the analysis of primary data is been done
by using statistical tools like averages, mode, percentage and graphs to make the study more
effective.
LIMITATIONS OF THE STUDY
? The research has been restricted only to a particular area in Bangalore
? Observation techniques and questionnaire method have also been used to make the analysis
more comprehensive and effective, but both methods also have certain limitations
? The bias of the respondent might have led to errors in the survey findings
? Since the analysis is based on options and suggestion, the results at best are near to truth
? The sample size for the study was hundred respondents, which is small, hence the results may
not be conclusive
? Period of study was restricted to 9 weeks.
? The selection of sample was restricted only to Hypermarkets and Retail shop
? Time and resources where limited to conduct a detailed study
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7
INDUSTRY PROFILE
OVERVIEW OF THE INDUSTRY
The beverage market is worth $55 billion worldwide. The tides are turning for many beverage
categories. While the carbonated soft drink and beer categories are merely treading water with
flat sales, the energy drink category is surging ahead like never before. Bottled water, ready-
to-drink coffee, ready-to-drink tea and sports drinks follow close behind with substantial sales
increase- drinks without added sugar, no beer, along with developments in juice drinks and
dairy-based drinks, are helping to turn around sales in these categories. What follows is a
category-by-category look at the state of the beverage industry, including the top brands, new
products, innovations and future trendsetters. In order to be successful in the marketplace, one
has to think in terms of health innovation, flavour innovation, ingredient innovation and
specific age groups. These are the factors that will shape the future of the beverage industry.
“Today’s consumers are concerned with overall health and wellness. As a result, there is
significant impact on food and beverage purchases. Many studies have shown that consumers
are as concerned with good health as they are about maintaining a high quality of life.”
Do you know what type of new beverage consumers are most likely to try? Do you know where
they are most likely to pick those products up? Do you know why? Beverage Industry wanted
to know the answers to these questions and to delve deeper into the ever-increasing number of
new product launches in the beverage market. “The soft drink industry is training people to
seek out new products, even the big guys are coming out with limited-edition flavours, and
consumers are beginning to see that there is more flavour activity going on in the category.
Whether that really nets anybody any sales gains is another thing, but it is teaching consumers
to seek out and try new products. It’s also trying to create some excitement there.” In spite of
several challenges and restrictions faced by this industry, it is a ‘roll’ like never before.
Customer preferences may have shifted, but they are still always on the lookout for a can of
‘coke’ or a new ‘flavoured’ drink to quench their thirst.
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INDIAN BEVERAGE MARKET
The size of the Indian food processing industry is around $ 65.6 billion, including $20.6 billion
of value added products. Of this, the health beverage industry is valued at $230 million; bread
and biscuits at $1.7 billion; chocolates at $73 million and icecreams at $188 million. The size
of the semi-processed/ready-to-eat food segment is over $1.1 billion. Large biscuits &
confectionery units, Soya processing units and starch/glucose/sorbitol producing units have
also come up, catering to domestic and international markets. The three largest consumed
categories of packaged foods are packed tea, biscuits and soft drinks. The Indian beverage
industry faces over supply in segments like coffee and tea. However, more than half of this is
available in unpacked or loose form. Indian hot beverage market is a tea dominant market.
Consumers in different parts of the country have heterogeneous tastes. Dust tea is popular in
southern India, while loose tea in preferred in western India. The urban-rural split of the tea
market was 51:49 in 2000. Coffee is consumed largely in the southern states. The size of the
total packaged coffee market is 19,600 tonnes or $87 million. The total soft drink (carbonated
beverages and juices) market is estimated at 284 million crates a year or $1 billion. The market
is highly seasonal in nature with consumption varying from 25 million crates per month during
peak season to 15 million during off-season. The market is predominantly urban with 25 per
cent contribution from rural areas. Coca cola and Pepsi dominate the Indian soft drinks market.
Mineral water market in India is a 65 million crates ($50 million) industry. On an average, the
monthly consumption is estimated at 4.9 million crates, which increases to 5.2 million during
peak season.
GROWTH OF SOFT DRINK MARKET
SOFT DRINKS
Carbonated drinks are dominated by artificial flavors based on cola, orange and lime with Pepsi
and coca-cola dominating the market. The entire part of the drink is based on its artificial
flavors and sweetening agents as no natural juice is used.
MARKET
? Cola products account for nearly 61-62% of the total soft drinks market.
? Two global majors’ Pepsi and coke dominate the soft drink market.
? The market is worth around Rs.5000 crores with growth rate of around 10-15%.
? The annual per capita consumption in India is only about 6 bottles vis- a- Vis 340 bottles
in the U.S.
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• The production as soft drinks has increased from 5670 million bottles in 1998-99 to 6230
million bottles in 1999-2000 industry source.
• Growth market this year is expected to be 10-15% in value terms and 20-22%in
Volume terms.
REGULATORY INFORMATION
? Import tariffs are quite high in India, ranging from 26 to 74.6 percent. Tariffs include
basic duty, additional duty and special additional duty.
? Unprocessed food products, such as plant products require a phytosanitary certificate
from the Ministry of Agriculture
? Food and beverage products exported to India must conform to domestic laws.
Standards are governed by the Food Safety Standards Authority of India (FSSAI)
GROWTH DRIVERS
The income of the Indian population is rising thanks to India's strong economic growth and
around 65 per cent of Indians are under the age of 35 which means more people will benefit
from increasing incomes. Improved incomes are driving demand for specialty and value-added
food products. The combination of the growing urbanization of the Indian population and more
women joining the workforce, is leading to a higher consumption of processed and value added
food and beverage products. Consumers are more accepting of different food and drink and
there is higher demand for more western style snacks.
BEVERAGE MARKETS CONTRIBUTION
The soft drink market such as carbonated beverages and juices constitutes around USD 1 billion
producing 284 million crates per year. In the peak season, the consumption capacity reaches
25 million creates per month and during off season the same goes down to 15 million crates in
a month. Pepsi and Coca cola are the two leading brands in the Indian market. The mineral
water market in India is a USD 50 million industry and produces 65 million crates. Around 4.9
million crates is usually consumed each month but it rises to 5.2 million crates in the peak
season.
Consumption of non-alcoholic beverages is expected to increase by 16.5-19% over the next
three years as more people are trading up to packaged drinks, according to a report by the
Indian Council for Research on International Economic Relations (ICRIER) and the Indian
Beverage Association (IBA) Corporate manufacturers of non-alcoholic beverages are expected
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10
to grow at an annual rate of 16.5% and non-corporate manufacturers at 19%, according to the
report titled Unleashing the Potential of the Non-alcoholic Beverage Sector.
The estimates are based on an assumed gross domestic product growth of 7%, which is much
higher than the 5% growth several economists are forecasting.
India’s beverage market is largely unorganized, with nearly 75% of the demand serviced by
companies in the unorganized sector. But in the past 18 months, the world’s largest beverage
makers Coca-Cola Co. and PepsiCo Inc. invested heavily towards building capacity and
developing bottling infrastructure in the country over the next 7-8 years, to meet the growing
demand for packaged beverages.
The ICRIER-IBA report said that with the rise in incomes India’s non-alcoholic beverage
sector has evolved both in terms of product variety and the number of companies in the market.
GROWTH OF FRUIT DRINK MARKET
FRUIT JUICES
Branded fruit juice market in India holds an immense potential. Usually confused and
considered synonymous with non-aerated drinks, fruit pulps, juices and squash are high sugar
beverages, which are centrifuged and filtered to give a semi- clear appearance. In the past, this
sector enjoyed an excise exemption, keeping cost at minimal. However the withdrawal of
exemption has inflated costs and can affect growth, with dramatic change possible on
reintroduction of excise exemption.
MARKET
? The organized fruit beverage market is estimated at Rs.500 crores market.
? (Nectars, drinks and juices combined).
? The market has grown at a 20% to 25% rate.
? Of this, more expensive juices segment has grown at rate of 40%this year. It accounted
for only 15% of the fruit beverage 3 years back.
? In –home consumption of juices has gone up from 30%, three years back to 80%today.
? Mango based drinks account for two thirds of fruit drinks industry
FMCG INDUSTRY IN INDIAN PERSPECTIVE
India’s FMCG sector is the fourth largest sector in the economy and creates employment for
more than three million people in downstream activities. Its principal constituents are
Household Care, Personal Care and Food & Beverages. The total FMCG market is in excess
of a high growth. It is currently growing at double digit growth rate and is expected to maintain
a high growth rate. FMCG Industry is characterized by a well-established distribution network,
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11
low penetration levels, low operating cost, lower per capita consumption and intense
competition between the organized and unorganized segments.
Market share movements indicate that companies such as Marico Ltd and Nestle India Ltd,
with domination in their key categories, have improved their market shares and outperformed
peers in the FMCG sector. This has been also aided by the lack of competition in the respective
categories. Single product leaders such as Colgate Palmolive India Ltd and Britannia Industries
Ltd have also witnessed strength in their respective categories, aided by innovations and strong
distribution. Strong players in the economy segment like Godrej Consumer Products Ltd in
soaps and Dabur in toothpastes have also posted market share improvement, with revived
growth in semi-urban and rural markets.
MARKET SIZE OF FMCG INDUSTRY IN INDIA
Fast moving consumer goods (FMCG) sector in India is one of the largest sectors in the
economy with estimated total market size of around Rs 120,000 crore in 2012. After sluggish
growth for couple of years through 2002-2004, the segment has picked up the speed again and
has been clocking substantial growth numbers during last 5-6 years. The sector also continued
to do reasonably well following the global financial crisis as the rural India, which has become
the new demand heaven for the industry, remained largely aloof from the slowdown. With the
Indian economy now back on the high growth trajectory, the industry has massive potential to
grow further, particularly in rural Indian and the high end products as expected size will be
around Rs. 180 crore in 2015.
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COMPANY PROFILE
In 1929 a small company by the name of Parle products emerged in British dominated India.
The intent was to spread joy and cheer to children and adults alike, all over the country with its
sweets and candies. The company knew that it wouldn’t be an easy task, but they decided to
take the brave step. A small factory was set up in the suburbs of Mumbai, to manufacture
sweets and toffees.
Parle based in Mumbai, India 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. Its reach spans even to the remotest villages of India. Many
of the Parle pro ducts - 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 confectionery market in India, Parle has grown to become a multi-
million dollar company. Parle Agro is a food and beverage company based in Mumbai, India.
Parle is a leading Indian Food and Beverage Company, the only Indian transnational giant with
the past experience of having successfully launched leading soft drink brands like “Frooti,
Appy, Saint Juice, N-Joi and Bailley”. Today its brand portfolio consists of No. 1 brands like
Frooti along with Apply, Saint Juice, N-Joi and Bailley. Parle agro was the first to identify the
dormant mango segment in India and launch India’s first national Mango drink - Frooti Mango.
Today Frooti has a 25% market in the Fruit Drink segment. Today, the Parle Group turnover
is over Rs.600 crores with group strength of over 1000 employees, including over 400
professionals. Parle Agro has its factories located in Silvassa, Patalganga, Bhopal, Chennai,
Ghaziabad and Hyderabad. Parle Agro strength is our people who have worked towards making
our presence felt throughout the country and all over the world through a strong franchise
network and well-developed strong infrastructure.
Over the years, the group split into three different companies – Parle Agro, Parle Bisleri and
Parle Products. Currently, all three are separate companies with separate ownership and
management. They also have different products manufactured under them. All three companies
continue to use the family trademark name – ‘Parle’ under which the current companies
are named.
Parle Agro is an Indian company in the beverages industry and has brands like Frooti,
consistent winner of India's fruit beverage brand, Appy, Appy Fizz and packaged drinking
water, Bailley.
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A pioneer in the Indian industry, Parle Agro is associated with many firsts. They were the first
to introduce fruit drinks in tetra packaging, first to introduce apple nectar and the first to
introduce fruit drinks in PET bottles
In 2008, Parle Agro forayed into foods with the launch of two confectionery brands, Mintrox
mints and Buttercup candies. This was soon followed by two more brands - Buttercup Softease
and Softease Mithai.
Recent beverage products from Parle Agro include Frio, café Cuba and Grappo Fizz. In 2009,
Parle Agro forayed into snacks with the launch of Hippo, in line with the company’s vision of
becoming a major player in the foods and beverages industry.
? Headquarters: Mumbai
? Annual turnover: Rs. 1000 Cr
? 12 company-owned factories across India
? Reaches out to around 5 Lakh outlets across India.
Available Anywhere: Today, the great strength of Parle Products is the extremely widespread
Distribution network. Even at the remotest places, you can buy Parle biscuits and sweets from
the local grocer. It has taken years to create this extensive network. Parle’s sales force started
with one salesman in Bombay and some agents in few other cities. Gradually, Parle Products
expanded.
Soon sweets and biscuits were being sent by rail to Calcutta, Delhi, Karachi, Madras and other
major cities. As production increased, distribution was amplified. Full time salesmen were
appointed in different areas. Currently, Parle Products has over 33, 00,000 distribution outlets.
Parle Agro, today, is a 2,000 Cr organization. Parle Agro are known for their diversification
into the Foods sector as they are for leadership in the Beverages sector. Parle Agro operate
under four business verticals: Beverages (Fruit drinks, Nectars, Sparkling drinks and
carbonated soft drink), Packaged Drinking Water, Foods and PET Preforms. Each of these
verticals operates as independent entities. As a part of our penetration strategy, Parle Agro have
also set-up an exclusive division for Beverages.
VISION
“To be the leaders in our business. We will stand apart from the competition by being the first
in the market to innovate.”
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14
MISSION
We will be the leaders in our business by – maintaining high quality, introducing new and
innovative products, reaching every part of India, remaining customer-centric, constantly
upgrading our knowledge and skills.”
NATURE OF ORGANIZATION
PARLE AGRO is a trusted name in the Indian beverage industry and has been refreshing India
since more than two decades with leading brands like Frooti, Apply Classic, ApplyFizz,
Bailley, Saint Juice, LMN & recently launched Grappo
Fizz. Parle Agro Pvt., Ltd. manufactures, distributes, sells, and exports fruit drinks in India and
internationally. The company offers fruit and milk drinks, packaged water, and apple and
mango drinks in polyethylene terepthalate (PET) bottles and containers, and tetra packs. The
company also operates a health and fitness studio for woman. The company distributes its
products through franchisees. Parle Agro Pvt., Ltd. Was founded in 1985 and is based in
Mumbai, India. Parle Agro has been a trusted name in the beverage industry providing
wholesome and healthy agro-based drink brands. It has successfully launched some of India’s
leading beverages like Frooti, Appy and N-Joi, And packaged drinking water, Bailey, over the
last two decades. In a country where health consciousness is growing at a rapid pace, Parle
Agro, with its numerous fruit-based drinks, hasstruck a chord with the masses. It brings to the
consumers the magic of premium quality fresh fruit drinks conveniently packed and available
all through the year.
Fruit beverages are whole some, easy to digest, highly refreshing with natural nutritional values
as compared tosynthetic and aerated drinks. Parle Agro's
Frooti is India's first national mango drink. The mango segment is 95% of the Indian fruit drink
market and Frooti has 85% market share in the tetra pack segment. Made from fresh and
premium Indian mangoes, Frooti has grown to be one of India's top 50 most trusted brands.
When Parle Agro launched N-Joi with real fruits and fresh milk, it not only launched a new
healthy beverage, but also created a whole new category in India. The milk shake claims to
contain no preservatives and is full of nutritional goodness. It's a delicious filler and an apt
quick refreshing nourishment for today's hectic stressful life.
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OBJECTIVE
? To build successful channel relationships (vendor to partner)
? To assess the critical success factors when selling through distributors
? To outline terms and conditions for establishing partnerships
? To integrate sales and marketing objectives
? To create and understand a channel plan
? To ensure that products has availability, visibility and freshness
TYPE OF INDUSTRY AND BUSINESS
? Foods
? Beverages
? Fast Moving Consumer Goods (FMCG)
QUALITY POLICY
Hygiene is the precursor to every process at Parle. From husking the wheat and melting the
sugar to delivering the final products to supermarkets and store shelves nationwide, care is
taken at every step to ensure the best product of long-lasting freshness. Every batch of biscuits,
confectioneries & snacks are thoroughly checked by expert staff, using the most modern
equipment. This ensures consistent and perfect quality across the nation and abroad.
Concentrating on consumer tastes and preferences, the Parle brand has grown from strength to
strength ever since its inception. The factories at Bahadurgarh, Haryana and Neemrana,
Rajasthan are the largest biscuit and confectionery plants in the country. The factory in Mumbai
was the first to be set up, followed soon by the one in Bangalore, Karnataka. Parle also has 10
manufacturing units for biscuits and 75 manufacturing units for confectioneries on contract.
TERRITORY DESIGN
? General retail
? Modern Trade
? Institutional
INFRASTRUCTURE FACILITIES
For the brands Frooti, Appy Classic and Appy Fizz and Café Cuba, Parle Agro Pvt. Ltd. has
strategically located manufacturing facilities at Patalganga, Bhopal, Chennai, Hyderabad and
Ghaziabad. Parle Agro have franchisee location at Kolkata, Guwahati, Ambala and Jharkhand.
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16
The locations of these units ensure a constant output and easy distribution. Each factory has
state-of-the-art machinery with automatic packaging facilities.
The plant that produces Bailley meets the stringent requirements of the BIS norms comprising
of chemical and microbiological tests. All the plants adhere to the recommended International
Code of Practices and the General Principles of Food Hygiene.
The state-of-the-art plants also minimize the wastage and render high yield. We have strength
of highly qualified and experienced team of dedicated engineers. These engineers along with
our team of R&D professionals are constantly involved in innovating various techniques and
methods to add value to the industry. The extensive distribution network, built over the years,
is a major strength for our company, since it helps Parle Agro to make products available to
consumers even in the most remote places.
MARKET SHARE
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AWARDS
PROMOTERS
Name of members Designation
Vijay K Chauhan Chairman & Managing Director
Sharad P Chauhan Managing Director
Raj K Chauhan Managing Director
Ajay V Chauhan Executive Director
Anup S Chauhan Executive Director
Samar S Chauhan Executive Director
Primary Competitive Advantages
? Products are manufactured under the most hygienic conditions
? The drinks are made available in a Tetra Pak and Pet Bottles
? Healthy and nutritious alternative which are also delicious
? Access to best quality fruits
? Strategically located manufacturing facilities
? State-of-the-art manufacturing plants
? An extensive distribution network
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Memberships
? Agricultural and Processed Food Products Exports Developments Authority (APEDA)
? Federation of Indian Chambers of Commerce and Industry (FICCI)
? Project Exports Promotion Council of India (PEPC)Federation of Indian Export
Organizations (FIEO)
MOTIVATIONAL FACTORS FOR THE RETAILERS
1. Trade schemes:
These are undertaken by the company only for the hard selling items e.g. Biscuits and Snacks
etc. for these the company raises the margins by 2%, also schemes like good packaging in case
of butter and cheese is undertaken by the company. However this is only a short-term initiative
to push the products of the company.
2. Glow boards:
The company puts up glow boards at the retailer and pays the major portion of the cost.
3. Schedule of the salesmen:
They provide the retails with this schedule so the retailers can pre estimate the quantities of the
various products needed.
4. Infrastructure facilitation:
The company facilitates the retailers to buy beautiful stalls by formulating an easy payment
Program and a commitment to buy back the equipment at a reasonable price when the value of
the equipment has depreciated.
Channel members of the distribution network
The Parle distribution network is has essentially four levels as enlisted below:
? Parle Depots
? Wholesalers and Distributers
? Carry Forward Agents (if required)Retailers
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Channel members and logistics
Parle has nearly 1500 wholesalers, catering to 425000 retail outlets directly or indirectly. A two
hundred strong dedicated field force services these wholesalers and retailers. Additionally, there
are 31 depots and Carry and Forward agents supplying goods to the wide distribution network.
Parle has level1, level 2, level 3 distribution channels levels.
DISTRIBUTION CHANNEL NETWORK OF PARLE
Manufacturing Unit of Parle Agro at various Locations
Parle Agro Depots
Wholesalers and Distributors
Transportation to next level
Retailers: Small shop / City stores
Procurement: Customers
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PRODUCTS PROFILE
Beverages categories
Frooti
Launched in 1985,
At that time Frooti was India's only beverage sold in a Tetra Pak packaging at
the time. It went on to become the largest selling Mango drink in the country.
Frooti remains the most preferred mango drink, the world over.
Café Cuba
Launched in May 2013,
Café Cuba is Parle Agro's re-entry, after 20 long years, to the carbonated soft
drinks category. With Café Cuba, Parle Agro has introduced the carbonated
coffee category in India.
FRIO
Yet to Launch
Frio is a range of deliciously flavoured carbonated drinks. A refreshing new
addition to the Parle Agro portfolio, it is currently available in Lemon, with a
flavoursome sweet lime juice note and in Orange, with a zingy sweet burst.
56
Bailley Soda
Launched in 2010
Bailley Soda is the most powerful soda in the country, promising incredible
power in every sip
Bailley Packaged Drinking water
Launched in 1993
Bailley has been the symbol of purity for years now. A perfect source of pure
and safe drinking water
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AREA OF OPERATIONS
Dhishoom Masala Soda
Launched in 2012
India's first Jeera Masala soda, Dhishoom. It packs a flavourful punch with
every sip.
Appy Fizz
Launched in 2005,
Appy Fizz is India’s first sparkling apple drink available in a champagne shaped
PET bottle. A cool drink to hang out with. Appy Fizz hangs out at cool places
like college canteens, discotheques, and high-end restaurants. Appy Fizz is
available in 300ml, 500ml & 1 ltr. PET.
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COMPETITORS PROFILE
The Coca-Cola Company re-entered India through its wholly owned subsidiary, Coca-Cola
India Private Limited and re-launched Coca-Cola in 1993 after the opening up of the Indian
economy to foreign investments in 1991. Since then its operations have grown rapidly through
a model that supports bottling operations, both company owned as well as locally owned and
includes over 7,000 Indian distributors and more than 1.3 million retailers. Today, our brands
are the leading brands in most beverage segments. The Coca-Cola Company’s brands in India
include Coca-Cola, Fanta Orange, Fanta Apple, Limca, Sprite, Thums Up, Burn, Kinley,
Maaza, Maaza Milky Delite, Minute Maid Pulpy Orange, Minute Maid Nimbu Fresh and
Nestea Iced tea, the Georgia Gold range of teas and coffees and Vitingo (a beverage fortified
with micro-nutrients).
In India, the Coca-Cola system comprises of a wholly owned subsidiary of The Coca-Cola
Company namely Coca-Cola India Pvt Ltd which manufactures and sells concentrate and
beverage bases and powdered beverage mixes, a Company-owned bottling entity, namely,
Hindustan Coca-Cola Beverages Pvt Ltd; thirteen authorized bottling partners of The Coca-
Cola Company, who are authorized to prepare, package, sell and distribute beverages under
certain specified trademarks of The Coca-Cola Company; and an extensive distribution system
comprising of our customers, distributors and retailers. Coca-Cola India Private Limited sells
concentrate and beverage bases to authorized bottlers who are authorized to use these to
produce our portfolio of beverages.
PepsiCo is a global food and beverage leader with net revenues of
more than $65 billion and a product portfolio that includes 22 brands that generate more than
$1 billion each in annual retail sales. Our main businesses – Quaker, Tropicana, Gatorade,
Frito-Lay and Pepsi-Cola – make hundreds of enjoyable foods and beverages that are loved
throughout the world. PepsiCo’s people are united by our unique commitment to sustainable
growth by investing in a healthier future for people and our planet, which we believe also means
a more successful future for PepsiCo. We call this commitment Performance with Purpose:
PepsiCo’s promise to provide a wide range of foods and beverages for local tastes; to find
innovative ways to minimize our impact on the environment by conserving energy and water
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and reducing packaging volume; to provide a great workplace for our associates; and to respect,
support and invest in the local communities where we operate.
PepsiCo entered India in 1989 and in a short period, has grown into one of the largest and
fastest growing food and beverage businesses in the country. PepsiCo India’s growth has been
guided by PepsiCo’s global vision of “Performance with Purpose”. PepsiCo India’s diverse
portfolio includes iconic brands like Pepsi, Lay’s, Kurkure, Tropicana 100%, Gatorade, Quaker
and young, but immensely popular and fast growing brands, such as Nimbooz and Aliva.
PepsiCo India has not only grown to become one of the country’s largest food and beverage
businesses but has also become a powerful and consistent driver of PepsiCo’s global growth.
Dabur India Limited is the fourth largest FMCG Company in India with
Revenues of US$1 Billion (over Rs 5,300 Crore) & Market Capitalisation of US$4 Billion (Rs
20,000 Crore). Building on a legacy of quality and experience of over 125 years, Dabur
operates in key consumer products categories like Hair Care, Oral Care, Health Care, Skin
Care, Home Care & Foods.
Indian Tobacco Company came into existence in the year 1910 with the name of
Imperial Tobacco Company of India. The company is famous for its employees’ satisfaction
policies and the employees of the organization are happy with their employer. The company
deals with different FMCG products and it cannot be any more called as Tobacco Company.
The company offers a
Wide range of employment opportunities in the areas of purchase, technical, legal, finance and
corporate development.
FUTURE GROWTH AND PROSPECTS
Parle Agro, the maker of Frooti and Appy, is gearing up to replicate its beverages success story
in the fiercely competitive snack market. Having launched Hippo, a wheat-based baked snack
last year, Parle Agro is now extending the brand. It will launch Hippo Round next month, a
new snack sub-brand in the Rs 6,500-crore salted snacks market dominated by PepsiCo’s Lays,
Kurkure and ITC’s Bingo.
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Parle Agro shortly plans to sell its carbonated apple drink Appy Fizz in cans,
Parle Agro joint MD & CMO Nadia Chauhan is scripting a fresh growth strategy to take on
multinational players in the F&B (food & beverages) sector in India. To start with, the company
is planning to grow its foods business aggressively to fight global competition. Also, the
company is planning increase its global presence this fiscal. The Rs 1,500-crore Parle Agro is
currently present in over 18 countries including the USA, the UK and Australia.
Parle Agro, a fast moving consumer goods company, is targeting Rs 1, 000 crore sales over the
next 12-14 months. The company has test marketed its latest brand, Cafe Cuba, for a few
months and is set to launch the product soon. The launch of Cafe Cuba marks the company's
re-entry into the carbonated soft drinks market.
ORGANIZATIONAL STRUCTURE
CEO
GM (Inst.)
Senior Mgr. Key A/c Mgr. BDM BDE BDO Trainee
GM
(Modern Trd.)
GM
(General Trd.)
GM
(Horeca)
GM
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SWOT ANALYSIS
SWOT analysis is a strategic planning method used to evaluate the Strengths, Weaknesses,
Opportunities, and Threats involved in a project or in a business venture. It involves specifying
the objective of the business venture or project and identifying the internal and external factors
that are favourable and unfavourable to achieve that objective. The technique is credited to
Albert Humphrey, who led a convention at Stanford University in the 1960s and 1970s using
data from Fortune 500 companies. A SWOT analysis must first start with defining a desired
end state or objective. A SWOT analysis may be incorporated into the strategic planning model.
Strategic Planning has been the subject of much research.
? Strengths: characteristics of the business or team that give it an advantage over others
in the industry
? Weaknesses: are characteristics that place the firm at a disadvantage relative to others
? Opportunities: external chances to make greater sales or profits in the environment
? Threats: external elements in the environment that could cause trouble for the business
ANALYSIS OF PARLE AGRO
STRENGTHS
• Low price
• Sizeable market share in tetra pack segment'
• An experienced team of sales
• Diversified product range
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• Brand Name
• Understanding of consumers
WEAKNESS
• Improper and irregular supply
• Dependent on its flagship brand, Frooti and Appy
• Poor packaging
• Lack of schemes for retailers and distributors
OPPORTUNITY
• Retaining loyal retailers or wholesalers
• Products PARLE AGRO In medical shops
• Changing consumer preference
• Increasing demand for sugar free
• Product line extension
THREATS
• Highly advertised brands such as Pepsi and coca cola.
• Margin war among the major Brands.
• Rise in the cost of raw materials
PRODUCT LIFE CYCLE AND BCG MATRIX
Is the succession of strategies used by business management as a product goes through its life-
cycle. The conditions in which a product is sold (advertising, saturation) changes over time and
must be managed as it moves through its succession of stages.
The goals of Product Life Cycle (PLC) management are to reduce time to market, improve
product quality, reduce prototyping costs, identify potential sales opportunities and revenue
contributions, and reduce environmental impacts at end-of-life. To create successful new
products the company must understand its customers, markets and competitors
It is important for marketing managers to understand the limitations of the PLC model. It is
difficult for marketing management to gauge accurately where a product is on its life cycle. A
rise in sales is not necessarily evidence of growth, a fall in sales does not typify decline and
some products,
For specific products, the duration of each PLC stage is unpredictable and it's difficult to detect
when maturity or decline has begun.
Because of these limitations, strict adherence to PLC can lead a company to misleading
objectives and strategy prescriptions.
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Parle Agro as a company has reached the maturity stage in its products life cycle since products
such as Parle-G, Frooti Bailley packaged drinking water which form a major part of Parle
products’ sales have captured most of India’s market.
But for its Products like Café Cuba FRIO and Bailley Soda are in the growth and introduction
stages respectively.
So after a few years it was re launched with just (CAFÉ CUBA) carbonated drink with new
packaging. After the re-launch it has started gaining attention of its potential buyers and hence
is in the growth stage of its life cycle. It has to fight for its stand in the market since it faces
competition from Pepsi and Coca-Cola.
STARS
Stars are market leaders and growing fast. Stars have large reported profits but require a lot of
cash to finance the rapid growth. As per the company’s survey, Parle G and Frooti is touching
the peak of success & therefore comes under the STAR category thereby the Co. can invest a
large sum for its growth.
CASHCOW
A cash cow usually generates more cash than is required to maintain its market share. It is in
low-growth market but has a dominant market share. Profits & cash generation should be high
due to its Low growth, the investment needed to be Low to keep Profits High
The products like Marie, hide & seek hippo, Frooti comes under this category.
QUESTION MARK
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These are products with low market share but operate in high market growth rates. The
company puts a lot of resources in this product in the hope that it will eventually increase
market share and generate cash returns in the future.
The products like café Cuba and Frio comes under this category.
DOG
These are products which have low market shares and low market growth rates.
The products like Bailley Soda comes under this category.
PACKAGING AND LABELLING
Packaging: The time spent by a customer for picking up a product from a retail outlet is a few
seconds; therefore a package should appeal to a customer within such a small interval of time.
In this, both packaging & labelling play an important role in attracting customers both visually
& psychologically.
Parle products has the appealing packaging which influence the consumers to buy the products
which are available.
Labelling: Consumers are becoming increasingly health conscious. So it is essential to display
the contents of every product. Every packet of Parle Products, has information about the
ingredients used, nutrition facts, mailing & emailing addresses asking for feedback, phone
number, packaging date etc. All this along with the brand name and directions are printed.
POSITIONING STRATEGY OF PARLE
The relevance and importance of conventional marketing, especially in the fast moving
consumer goods category, has slid down to give way for more aggressive market savvy
solutions that can revolutionise the way products sell these days.
While dealer productivity and market penetration are still important in the overall marketing
activity, the brand has to evolve and revolve in a different orbit it has to reposition itself if it
really wants to make a difference in the highly competitive market.
Positioning a product firmly in the consumer's mind-set has been one of the major marketing
challenges that has enamoured many a marketing guru.
As organisations are re-engineering themselves to be more productive, products also need to
reposition themselves if they want to stay ahead in the marketing war game.
Consequent to the changing parameters, both tangible and intangible, if the products do not
respond and reorient themselves to the new environment, they run the risk of becoming
obscure.
The point here is that however much financial wizardry an organisation might deploy, however
much R&D they get into, however much technology they enjoy, unless brand building takes
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the front seat with clear-cut strategies that predispose the product behaviour, the chances of
creating a winner is quite remote.
The name of the marketing game is therefore repositioning your brand and thereby, the
competition. When the stakes are high and when you are not able to take the competition head-
on, the only way to survive and build on an equity is through repositioning
Theoretical Background of the Study
Perception Meaning:
It refers to the ability of giving meaning to whatever is sensed by our sense organs.
Perception Definition:
It is the process by which an individual selects, organizes and interprets stimuli into a
meaningful and coherent picture of the world. -Leon Schiff man
Nature of Perception:
- Perception is a complex process
After a stimulus is detected by the sense organs, the perception process comes into play
and involves the interplay of three processes, viz., selection, organization and
interpretation.
- Perception is a subjective process
As two people may perceive the same stimuli differently .While two persons may be
exposed to the same stimuli, the manner in which they select them, organize and
interpret them is different.
- Perception is broad in nature
It includes a physiological component (through sensation), as well as sociological and
psychological components.
Elements of Perception:
- Sensation:
The immediate and direct response of the sensory organs to stimuli.
A stimulus is a unit of input to any of the senses.
- Absolute Threshold:
The lowest level at which an individual can experience a sensation.
- Differential Threshold (JND)
It is the minimal difference that can be detected between two similar stimuli.
It is also called Just Noticeable Difference (JND).
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- Subliminal Perception
Attention paid to a message without conscious awareness of the message.
Perceptual Mechanism:
Perceptual Selection:
Human beings are simultaneously exposed to various stimuli in his/her environment.
Due to the fact, that the various stimuli cannot be treated or processed at the same time, people
become selective in their approach. They would choose some stimuli for further processing.
The choice of the stimuli would depend on what they feel is relevant for them and or
appropriate for them. This is referred to as perceptual selectivity.
Which of the stimuli gets selected is based on two factors, viz., factors external and related to
the stimuli, and factors internal and related to the perceiver.
Selection
Organization
Interpretation
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- External and related to the stimuli: These factors are those factors that exist in the
environment and are in the form of characteristic features of the stimuli. These could
take the form of size, intensity, contrast, motion, repetition, familiarity, novelty etc. In
the fields of marketing, stimuli could include the product, brand name, the features and
attributes, the packaging, the advertisement, etc.
- Internal and related to the perceiver: These factors are those factors that are related
to an individual and would differ from person to person, viz., factors like motivation,
learning, personality and self-image etc. Perceptual selectivity of a person would
depend upon what he considers relevant and appropriate as per the psychological
variables.
Perceptual Organization:
The next sub-process in the perceptual process is referred to as perceptual organization. After
the input has been received from selection stage and given to, the input/cue or the information
is organized into a coherent form, so as to able to extract meaning out of it in the next stage.
Thus Perceptual organization deals with what happens in the perceptual mechanism once the
information from the environment is received. It is a cognitive process, which is responsible
for organizing the stimuli and surrounding cues, to develop a “whole picture”, according to
one’s physiological, socio-cultural and psychographic principles.
Principles of perceptual organization
There are four basic principles of perceptual organization, viz., figure and ground, grouping,
closure and simplification.
- Figure and ground: This principle states that any stimuli that stands apart from its
environment, and contrasts against is more likely to be noticed, and treated as a unified
whole.
- Grouping: As per the grouping principle, people tend to group together the various
stimuli so that they are seen as a unified picture or unified whole; the basis for such
grouping is i) similarity among stimuli; ii) proximity of the stimuli.
- Closure: This principle states that in cases where an object is identified as incomplete
by sensation, our perceptual processes give it a complete form.
- Simplification: It states that human being have a tendency to simplify things make to
make it more understandable.
Perceptual Interpretation:
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After the input has been given attention to, and has been organized into a coherent form, a
meaning is extracted out of it. The process is totally individual, based on persons demographics,
socio cultural influences and psychographic influences. People interpret stimuli (i.e., they give
meaning to them) subjectively in accordance with their needs, expectations and experiences.
That is why perception varies from person to person.
Perceived Risk
While making a purchase decision and immediately after having made a purchase, customers
experience a state of uneasiness and tension. The purchase process results in a state of anxiety
and tension with respect to the negative consequences that could result from product usage.
This state is known as “perceived risk”; it refers to feeling of uncertainty that arises within an
individual when he fails to predict the consequences of product choice, usage and resultant
experience.
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Q1. Which age group prefer Parle agro products more?
Attributes Percentage
10-20 34%
20-30 66%
30-40 -
40-50 -
others please specify -
Total 100%
Study Insights:
The Data & chart above shows that age group of 10-20 and 20-30 prefer more of number of
Parle agro products. With this interpretation Parle should come up with new products which is
preferred by age group of others which are specified in the tables to increase its market like
coming up with diet biscuits and etc.
34%
66%
10_20 20-30 30-40 others please specify
AGE GROUP
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Q2. According to you, which is the best attribute of parle agro products?
Attributes Percentage
Taste 28%
Quality 20%
Different flavors 32%
AD's 8%
Others please specify 12%
Total 100%
Study Insights:
The Data & chart above shows that (32%) Different flavor are the highest preference that is
given to the Parle agro products by the consumers.by this information parle agro should come
up more different flavors to attract consumers.
28%
20%
32%
8%
12%
Taste Quality Different flavours AD's Others please specify
BEST ATTRIBUTE
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Q3. Do you think the brand “Parle” has a competitive edge over other brands in the market?
Attributes Percentage
yes 42%
no 58%
Total 100%
Study Insights:
The Data & chart above shows that 58% of the respondents tell that Parle agro products has a
competitive edge over other brand of products which is an advantage to tap the market with
more similar products which are liked by the consumers.
42%
58%
Yes No
COMPETITIVE EDGE
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Q4. Are the products available in all the local retail shops in the city?
Attributes Percentage
yes 38%
no 62%
Total 100%
Study Insights:
The Data & chart above shows that 62% of the Respondents tell that Parle agro products are
not available in the local retail shops this study helps in understanding how to increase the
distribution channel to make availability of the products in all the stores.
38%
62%
yes no
AVALIABILITY OF PRODUCTS
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Q5. Is the company trying to attract the new retailers?
Attributes Percentage
yes 40%
no 60%
Total 100%
Study Insights:
The Data & chart above shows that 60% of the Respondents tell that Parle agro is trying to
attract new Retailers to increase its sales and distribution to be more competitive in the market.
40%
60%
yes no
ATTRACT THE NEW RETAILERS
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Q6. Which brand of soft drinks you sell more?
Attributes Percentage
frooti -
mazza 58%
slice 42%
others -
Total 100%
Study Insights:
The Data & chart above shows that Mazza & Slice is still the preferred brand by the Retailer
and those are the products which are in high demand in the market by the consumers. This
information will help Parle agro to increase the promotional activities to attract more
consumers.
58%
42%
frooti mazza slice others
BRAND OF SOFT DRINKS
frooti mazza slice others
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Q7. Are you aware of the newly launched café cuba drink?
Attributes Percentage
yes 100%
no -
Total 100%
Study Insights:
The Data & chart above shows that 100% of the respondents are aware of the Parle Agro’s
newly launched Café Cuba availability in the market, Parle should continue the same level of
promotional activities.
100%
0%
Yes No
AWARENESS
Yes No
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Q8. What was the customer feedback about the café cuba drink?
Attributes Percentage
very good 10%
good 42%
bad 48%
very bad -
Total 100%
Study Insights:
The Data & chart above shows that 48% of the respondents told that the product taste is bad
and of 42% of the respondents told that the product is good. By this data Parle agro should
plan up the promotional strategies and design the method to position the product in a better
way where people accept it.
10%
42%
48%
very good good bad very bad
CUSTOMER FEEDBACK
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Q9. Do you think “Frooti” is offered in appropriate packings?
Attributes Percentage
yes 44%
no 56%
Total 100%
Study Insights:
The Data & chart above shows that only 44% of the consumers feel that Parle Agro provides
appropriate packing. So by this information parle agro can know that packing and the different
packages play an important role in sales of the products keeping this in mind Parle should come
up with competitive packages to increase its market.
44%
56%
yes no
PACKING
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Q10. Which brand do you purchase more in quantity among the following?
Attributes Percentage
pepsi 34%
cocacola 66%
parleagro -
others please specify -
Total 100%
Study Insights:
The Data & chart above shows that COCA-COLA is still the brand that is purchased more
compare to the any other brands that are available in the market and it is been positioned the
consumers mind as still the best brand that is available Parle agro should come up with new
strategies to change the mind set of consumers to tap the large market.
34%
66%
pepsi cocacola parleagro others please specify
BRAND THAT IS PURCHASED MORE
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Q11. Are customers willing to pay extra price if the product is of superior quality?
Attributes Percentage
yes 36%
no 64%
Total 100%
Study Insights:
The Data & chart above shows that only 36% of the consumers are ready to pay extra for
superior quality other than quality that comes to consumers mind before choosing the product
is the taste and the price of the products by this data Parle agro can know that just providing
the superior quality is the thing but also should come up with competitive attributes to attract
consumers.
36%
64%
yes no
WILLING TO PAY EXTRA PRICE
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Q12. According to you, which one of these brands has the highest preference in the market?
Attributes Percentage
pepsi 40%
cocacola 60%
parle agro -
others please specify -
Total 100%
Study Insights:
The Data & chart above shows that 60% of the respondents still prefer Coca-Cola as it is
available any time at any place of the country. By this Parle agro can understand that the
distribution of the products should be increased so that it available in the market always.
40%
60%
pepsi cocacola parle agro others please specify Others
BRAND PREFERENCE
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Q13. Which products of Parle agro has the highest share in retail market?
Attributes Percentage
frooti 60%
appy fizz 40%
café cuba -
bailley -
Total 100%
Study Insights:
The Data & chart above shows that 60% of the respondents told that the Frooti has the highest
market share compared to the other products that they have in their product category, Parle
should come up with the same strategy of promotion of sales for other products also to increase
its sales.
60%
40%
frooti appy fizz café cuba bailley
HIGHEST SHARE
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Q14. What made you to deal with Parle agro products?
Attributes Percentage
Demand from consumer 12%
Quality 30%
advertisement(merchandising) 30%
profit margin 28%
others please specify -
Total 100%
Study Insights:
The Data & chart above shows that there is only 12% demand for the products from the Parle
agro this is because the distribution channel of Parle agro is very less in turn the demand is
going down because of the less availability of the products so they the consumers are switching
to the new products that are available in the market.
12%
30% 30%
28%
PARLE AGRO DEAL
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Q15. Which company offers more profit margin to retailers?
Attributes Percentage
pepsi 36%
cocacola 64%
parleagro -
others plaese specify -
Total 100%
Study Insights:
The Data & chart above shows that Coca-Cola is the company provides the best profit margins
with its distributors which influences the sellers to select the brand which will increase sales
and also the profit margins is high. By this data Parle agro can understand that it can plan a
strategy to increase the margin for distributors.
36%
64%
pepsi cocacola parleagro others plaese specify
PROFIT MARGIN
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Q16. According to you which company has the successful pricing strategies?
Attributes Percentage
pepsi 40%
cocacola 60%
parleagro -
others please specify -
Total 100%
Study Insights:
The Data & chart above shows that Coca-Cola has the best pricing strategies as the products
are available at different packaging and different price ranges which helps the consumers to
select the one they want according to their needs where Parle has just now come up with this
strategy of offering the products in different packaging.
40%
60%
pepsi cocacola parleagro others please specify
PRICING STRATEGIES
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Q17. According to you which of the following attributes decides the success of Parle Argo’s
distribution channel?
Attributes Percentage
On time delivery 42%
Replacing old stock 48%
Solving retailers complaints 10%
Total 100%
Study Insights:
The Data & chart above shows that Parle agro success is because of on time delivery and
replacing old stock which are the main attributes that dealer’s look for when they are signing
the agreement with the company, Parle can plan the distribution according to this data.
42%
48%
10%
On time delivery Replacing old stock Solving retailers complaints
SUCCESS OF PARLE aGRO DISTRIBUTION
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Q18. Do you think Parle agro products are delivered on time?
Attributes Percentage
Yes always 26%
Yes, sometimes 40%
not at all 34%
Total 100%
Study Insights:
The Data & chart above shows that only 26% of the respondents tell that the products are
delivered on time and remaining telling that it is delayed and not at all delivered. This data
helps Parle to understand how to increase its distribution to satisfy distributors.
26%
40%
34%
Yes always Yes, sometimes not at all
ON TIME DELIVERY
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51
Q19. Whether the Parle agro company is replacing the old stock on time?
Attributes Percentage
yes 56%
no 44%
Total 100%
Study Insights:
The Data & chart above shows that only 56% of the respondents tell that the products are
replaced by the company and remaining tell that the products are not replaced by the company
Parle can retain its sellers only by giving them the option of replacing the products so that they
continue the sales Parle agro products.
56%
44%
yes no
REPLACEMENT OF OLD STOCK
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Q20. What kind of point of purchase displayed in your outlet for Parle agro products?
Attributes Percentage
posters & danglers 56%
leaflets 16%
banners 28%
Total 100%
Study Insights:
The Data & chart above shows that 56% of the respondents tell that there are large number of
poster and danglers are displayed at the shops to create the awareness of the brand that are
available in the shops Parle should also come up with interactive dashboards to attract
consumers .
56%
16%
28%
posters & danglers leaflets banners
DISPLAY AT YOUR SHOP
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Q21. Do you think that aggressive advertisements further increase the sales volume of Parle
agro products?
Attributes Percentage
yes 72%
no 28%
Total 100%
Study Insights:
The Data & chart above shows that 72% of the respondents told that advertisement will
increase the sales because advertisements will increase the awareness to the consumers which
in turn will increase the sales and demand for the products.
72%
28%
yes no
ADVERTISEMENT STRATEGIES
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Q22. How will you rate the overall performance of Parle agro?
Attributes Percentage
very good -
good 36%
average 64%
poor -
Total 100%
Study Insights:
The Data & chart above shows that only 64% of the respondents feel that Parle products
performance is less as the products are not readily available in the shop which is reducing the
performance in the market. By this data Parle can come up with new strategies to increase its
performance in competitive market.
36%
64%
very good good average poor
PARLE AGRO PERFORMANCE
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55
Q27. Respondent’s suggestion to Parle Agro
“They should come still more different flavours.”
“They should still improve the frequency of advertisement”
“They should increase the quality of product.”
“I nnovative ideas should be implemented.”
“They should increase the quality of product.”
“They need to do survey on customer needs.”
“Proper strategies to be done to market the product.”
“Company should show the proper awareness of quality to
the customers.”
“Company should provide the sufficient products to the
dealers.”
“Make the product availability in every stall.”
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56
CONCLUSION
? Majority of the respondents were from the age group of 20-30 (66%) who
consume Parle Agro products
? Maximum number of respondents were satisfied by the quality of the
products of Parle agro
? Respondents feel that Parle agro still don’t have the competitive edge
compared to other brands in the market.
? Availability of the products are very less compared other brands in the
market.
? Respondents feel that Coca-Cola is the best brand that is available in the
market, which they prefer it as the top brand
? Highest sales of soft drinks comes from Frooti of Parle agro.
? Respondents tell that Pepsi provides the best service and price compared
other brands in the market
? Awareness of café Cuba was very good in the market
? Only 10% of the respondents tell that the products are very good.
? Advertisement is the main part in marketing plan as it helps the companies
to position them in the minds of the consumers as the preferred brand
? Consumers liked café Cuba as per the research study done
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SUGGESTIONS
? Parle agro should increase its distribution channels to increase its sales.
? Advertisement of the products should be increased to create awareness.
? Different schemes should be offered to increase the interest to the
distributors
? Products should be made readily available in each and every shop
? Different variety of flours of soft drinks should be released to attract
consumers
? Extensive advertisement of Café Cuba should be made to continue the
awareness of the brand.
? Parle should tie up with outlets like coffee day, dominos etc. to create
awareness and increase sales.
? Parle should increase the delivery time comparatively
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58
BIBLIOGRAPHY
www.parleagro.com
www.wikipedia.com
www.parleproducts.com
doc_693374180.pdf