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Parle G

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parle g case study
Parle-G Case Study

Parle-G Case Study :Among every Indian’s tea time to ingest well, Parle G has dominated India’s feelings for the previous decades. The first Parle-G used to be manufactured in 1929, and due to the fact then, the company has endured to win over each Indian coronary heart due to the best packaging, less expensive pricing, and distribution networks. Everyone, from teenagers to adults, has handled the cookie as if it had been a household member due to the fact of their emotional attachment to it. It is additionally the sole manufacturer that is extensively reachable in areas such as a 100-person neighborhood close to the LoC.

History of Parle G:

Parle Company used to be established by using ‘Mr. Mohan Lal Dayal’, The man in the back of Parle G. used to be a member of the Swadeshi motion and wished to enhance India’s status. He commenced making candy, a good deal like the British. He traveled to Germany and learned how to make sweets there. Later, he again to India with a sweet laptop and mounted a new commercial enterprise in Mumbai with the aid of obtaining a historic manufacturing facility between Irla and Parla. And therefore “Parle” was once born. It started with solely 12 employees, all of whom have been household members.

Biscuits have been regarded as a luxurious object in the course of the British era and may want to solely be eaten up by way of people from top origins and classes. Because the biscuits had been imported from British nations, Parle G stepped in in 1939 and gave India its very own famous biscuit.

The primary rectangle biscuit is something that most Indians grew up with and proceed to eat.

So the Swadeshi motion gave India its preferred biscuit manufacturer Parle-G, which has by no means discriminated towards its clients primarily based on their economic levels.

Initially, it was once Parle-Gluco, and the wheat-based biscuit was once practical and adequate for Indians to purchase. And this is how they got here to dominate the market, inflicting different global biscuit companies suffering. Following the Second World War, Parle Gluco grew to become the buzz in the nation, and the Parle Gluco biscuit grew to become pretty well-known at the time, as properly as used to be finally Rise as a brand.

There used to be extreme unavailability of wheat in India when the Second World War ended and human beings have been agitating for 1947. The entire plantation was once left with solely sixty-three percent of the cultivation, and Parle Gluco manufacturing had to be halted for years. They even created classified ads depicting how Indians had committed their lives for independence, urging humans to devour Parley biscuits until wheat elements are restored.


Founder and History:

The biscuit brand, Parle-G is owned by using the Chauhan family. Parle-G is a manufacturing of the Parle Products phase of the company. The proprietors of the organization have been Vijay Chauhan, Sharad, and eventually Raj Chauhan. The headquarters have been set up in a region referred to as ‘Vile Parle.’ This was once positioned in the Western phase of Mumbai.

Historically, this company used to be one of the first Indian brands. The manufacturing facility of Parle used to be set up as early as 1929. The Parle-G was once commenced to be made in the 12 months of 1939. And finally, after independence, this enterprise began inserting commercials to promote its biscuits. The commercials showcased glucose biscuits and had been liked by way of Indians in a giant number.

The biscuit was once at first named as Parle-Glucose until the yr 1980. After this, it grew to become Parle-G ( G stands for glucose that used to be existing in the biscuit, however in the latest slogans, it stands for genius). This biscuit is now being offered worldwide, in the United States, Europe, and Africa.

Revenue and Growth:

The important attribute of the Parle-G biscuits is their low fee and affordability. Brand Parle-G biscuit sells for rupees seventy-seven (77) per kilogram and is a phase of under a hundred ‘affordable’ biscuits. This exceptional is most vital for the increase of this manufacturer of biscuits.

Parle – G comes underneath the Rs a hundred per Kg category, which makes it low priced for every person and makes it the famous desire for humans throughout such determined times.

Parle-G on my own generates one-third of the income for the company. Parle-G is dominating the sale quantity of around 50% of the complete manufacturing of the company. Recently the corporation calculated a typical boom of 5% in the marketplace, and relatively Parle-G contributed extra than 80% of this increased rate. Parle-G grew to be the world’s most massive promoting biscuit in 2011. It used to be identified worldwide.

The first factory, which was once set up in a suburb of Mumbai, quickly came to unfold nationwide. As quickly as Parle-G grew to become a hit in India, it began exporting its biscuits worldwide. At present, Parle-G has manufacturing gadgets in 7+ countries. The United States, Nepal, Nigeria, Europe, and quite a few components of the African continents are the place these biscuits are presently sold. The enterprise began with the proper approach – making a popular, lower-priced snack, and this is the top motive for its increase and expansion.

The corporation presently has 130+ factories in India out of which 120+ factories are presently producing continuously. This makes the biscuits handy at most retail stores.

Parle-G, the most cherished and the most broadly diagnosed biscuit manufacturer in India noticed its income skyrocketing at some point in the preliminary months of 2020, and made headlines for breaking its very own eight-decade-old report of sales. The corporation started with an authentic assertion that it has registered high-quality income figures breaking the 82-year-old record. Parle additionally received a 5% market share in the biscuit zone for the duration of the equal time, which is a tremendously aggressive one, throughout March, April, and May of 2020. These had been the great months of its enterprise for the reason that the corporation started.

Owing to the lockdown due to the Corona Virus (COVID-19) pandemic in 2020, humans commenced stocking imperative and effortlessly on hand meal gadgets consisting of the famous biscuit Parle–G. Other than this, many NGOs and Government Agencies sold many Parle–G packets for the distribution of comfort packages. These records led to the giant income of the biscuit. The enterprise itself dispensed three crore packs as remedy programs to the needy.

The very inexpensive 5 Rupee packs got here inaccessible to many migrant people and people who had to tour on foot to return to their native places.

Parle won the absolute best boom fee amongst all the different biscuit brands. The boom charge expansion is additionally its exceptional increase price in the closing forty years. The enterprise additionally stated that this kind of increase is additionally in the past skilled throughout different phases of disaster in U.S.A . like earthquakes and tsunamis when the income of Parle–G went up exponentially.

Parle – G, which is very famous for many many years is one of India’s oldest and great biscuit manufacturers and has been serving continuously as people’s favorite tea-time snack for many generations. It has additionally maintained its style and is nice for the duration of all these years. Known as ‘Bharat ka Apna Biscuit’, the biscuit agency helps the #VocalForLocal campaign, which started via our Honorable Prime Minister. It used to be additionally declared the world’s biggest promoting biscuit manufacturer through Nielsen in the 12 months of 2013.


Parle-G – Challenges Faced:


In the preliminary few days, the corporation of Parle-G used to be struggling as it used to be set up in the course of British rule. At that time, marketing was once very challenging and rare. They even took the chance of difficult the British-made biscuits, which used to be a very daring cross made using them. Also, placing up factories at that time was once difficult, and it used to be all achieved manually.

Low-cost margin:

The buyers of Parle-G are especially rural populations. Due to its profound locality, most of its income and product increase structure upon the population’s needs.

They tried to expand the rate of the brand, which dramatically lowered the quantity of the brand. Consumers demanded secure prices. They are sure to maintain a fixed price, so they manipulate the internet extent by way of preserving the fee stability.

Risk of withstand:

The actual identification of Parle-G is its special packaging, taste, and affordable margin. The market is flooded with different manufacturers having cookies and cream biscuits. They supply desirable packaging and glucose-based biscuits with a comparable fee range.

Parle-G as a driver product penetrates the biscuit market. They come up with more than one measurement pack with robust distribution management. Make the product handy everywhere.

Manufacturing Plants Location:

Parle G took benefit of their industriousness by way of organizing factories in Mumbai, Karnataka, Rajasthan, and Haryana, from which they can cowl a massive component of the distribution network, both via constructing their very own factories or by way of outsourcing them, decreasing the value of logistics, warehousing, and different miscellaneous costs, permitting for extra stock and fund rotation in a year.

The Magical Pricing Strategy:

Parle G is aware of the consumer’s pricing consciousness. We might’ve noticed, that the Price of ‘999/-‘ appears less expensive or Inexpensive than one thousand whilst the distinction is simply of ‘1/-‘. Parle G understood this nuance lengthy before, and is Applying their commercial enterprise techniques and making Profits with it.

Let’s take the example of 5rs Parle G Packet. There was once a time when 5rs Parle G Packet was once a 100 gm in weight, then ninety-five gm, ninety gm, eighty-five gm, etc. What they’re honestly doing is, they are no longer doing any improvement the Price and the Quality, however with Quantity with a ‘Win-Win’ Situation. With this Price, the Consumer is additionally blissful and with this quantity, the company’s stability sheet is additionally displaying worthwhile Numbers.

Skilled Production Team:

It’s claim that the parle-g manufacturing method is so environmentally friendly that there is no or minimal waste. According to the reports, when they manufacture 115 tonnes of biscuits, there looks to be 1% wastage, and this operational effectivity is no longer simply at the wastage discount level. However, the worker productiveness stage that no worker can habit unproductive work or squander man-hours.

Coolest Packaging of Parle G:

Parle G is conscious that the public is charge sensitive. That is why, as a substitute for losing sources on double packing. They eliminated the wax papers and produced simple plastic packaging. You will observe that it is easy plastic wrapping, and if You tear the package, there is no extra layer, simply straight biscuits. And the cool component is that the biscuits in their household pack don’t even have a wrapper.

They’re at once packed in plastic Polythene due to the fact they recognize. That when a purchaser is intensely target on price, they don’t care about anything else. They didn’t even trade the cowl lady due to the fact they desired to preserve their expenses stable. Their single prevailing factor, apart from high quality and taste. And their essential defining element is their price, price, price.

Come Back of Parle G:

Parle-G determined to return after a prolonged wreck with a range of product sorts such as Biscuits, Confectionery, Chocolates, Snacks, and Rusk. They even commenced merchandising manufacturing with sweet names like Gold Star and Peppermint on Tea booths. “Krack Jack,” India’s first sweet-salty cookie, was once added in 1956. In the equal year, Parle launched Hide and Seek and 20-20 cookies, each of which starred Hrithik Roshan.


The Low Earnings Margin Strategy:

Parle-g recognized that in view that this is their important product, and due to the fact of it, they can attain the most excessive components of the country, they’ll deal with it as such, and will hold low margins inside these sectors.

  • For each family to be in a position to find the money for Parle-g.
  • And due to the fact of value and well-worth of money, Parle-g stays in everyone’s style and their minds. At this point, that parle-g has mentioned that they will hold a modest income margin in this product, however, how will they generate money?
  • And to generate Money with Good Margin, Krack-jack, Monaco, and hide-and-seek are all merchandise of parle of city clients, and the low income in this driver commodity scales out to different brands.

Price Strategy of Parle:

The employer follows an inexpensive method to lead the function in the market. It sooner or later helps them to battle with the competitors. The pricing approach is the spine of the company. Also, it has been capable to control the low fee due to the excessive quantity of production. It focuses on exceptional which helps them to attain a massive target audience as Parle G continues its pricing barely decrease focusing on the extent strategy. The corporation has been preserving its boom and profits via terrible and appropriate instances equally purpose being its pricing strategy.

Competitive Background of Parle:

The principal rivals of Parle are Britannia tiger, Horlicks biscuits, and nearby glucose biscuits. The market in which Parle operates overcrowd with a giant variety of rivals overtaking every other. It has an aggressive gain over different companies.

They have a robust legacy of extra than 70 years which is supporting in being competitively in advance of its competitors. It has additionally stored the pricing identical for its merchandise for many years. Without compromising on the first-rate this helps them in rising as the biggest promoting biscuits in the world.

Thus, to compete with their opponents the organization has to be regular to lead the market.

Place & Distribution Strategy of Parle:

Parle merchandise is reachable extensively throughout the countries. The employer has over 23 manufacturing gadgets and over 1500 wholesalers all over India. They additionally have depot marketers which assist them with the distribution channel. This is the motive Parle merchandise is on hand in every nook of the country. It has a robust distribution channel, therefore, the merchandise is on hand in each region from small shops, grocery, and inns to massive retailers.

Therefore human beings maintain Parle as their first preference over different manufacturers due to its broad distribution and availability.

parle buscuit with tea

SWOT Analysis of Parle:

SWOT evaluation of the business enterprise with its strengths, weaknesses, possibilities & threats. Strength and weaknesses are the interior elements whereas possibilities and threats are the exterior factors. Let us have a seem at the SWOT evaluation of Parle.

Strength of Parle:

  • Parle is one of the most relied on & most famous brands.
  • It affords merchandise at a very inexpensive charge which offers them a charge gain over different companies.
  • They have a sturdy grant chain network.
  • Diverse portfolio such as biscuits, sweets, and snacks.
  • Parle G is the most offered biscuit company in the world.
  • Various CSR things to do initiated by using the company.
  • Strong Digital Presence on Social Media

Weakness of Parle:

  • Companies are producing comparable merchandise like Marie, bourbon, candy and salty crackers, cream biscuits, etc.
  • The organization is based on its Parle G biscuit for most of its revenue.
  • There are many regional rivals in the market.
  • The equal ancient style of biscuits will make the client bored.

Opportunities of Parle:

  • Increases its efforts in advertising communications.
  • Rising demand for revolutionary packaging.
  • New revolutionary promoting techniques.
  • Expanding in the rural market.

Threats of Parle:

  • It faces shut opposition from Britannia and ITC products.
  • Because of the upward shove in income, Parle’s growth is to outdated.
  • It has reached the mature market stage as the product has an equal historic taste.

Parle’s Achievements:

Parle-G is at the pinnacle of all biscuit manufacturers in India. Its affordability makes it the most widely-eaten biscuit. It grew to become the very first indigenous biscuit manufacturer to move the 5000 crore mark. Parle-G has additionally grown to be the variety one FMCG manufacturer in India. It is one of truth.

It’s awarded for its ordinary and regular quality. In 1976 the biscuits Parle-Glucose gained the award world choice at Geneva. Its awareness in overseas markets has made it a very general company in the United States, components of Africa, and Europe. From a small confectionery, Parle-G is now the biggest biscuit producer in India. And this is what makes it unique.


In this case, learn about of Parle talks about how profitable the manufacturer is. The buyers have a mammoth belief in the company consequently it is one of the main manufacturers in India. Instead of promoting equal ancient products, the company must introduce new merchandise and editions in the market. The agency is in most cases structure on one goodwill income generates from the Parle-G biscuit. The recognition of Parle merchandise has remained unchanged for many years.

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