Parle G Case Study : History of Parle G & Success of the Century

Among every Indian’s tea time to eating well, Parle G has ruled India’s emotions for the past decades. The first Parle-G was manufactured in 1929, and since then, the brand has continued to win over every Indian heart due to the finest packaging, inexpensive pricing, and distribution networks.

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Parle G Case Study

Among every Indian’s tea time to eating well, Parle G has ruled India’s emotions for the past decades. The first Parle-G was manufactured in 1929, and since then, the brand has continued to win over every Indian heart due to the finest packaging, inexpensive pricing, and distribution networks. Everyone, from children to adults, has treated the cookie as if it were a family member because of their emotional attachment to it. It is also the only brand that is widely accessible in regions such as a 100-person community near the LoC.

History of Parle G

Parle Company was founded by ‘Mr. Mohan Lal Dayal’, The guy behind Parle G. He was a member of the Swadeshi movement and wished to improve India’s status. He began by making candy, much like the British. He traveled all the way to Germany and learnt how to make candy there. Later, he returned to India with a candy machine and established a new business in Mumbai by acquiring an old factory between Irla and Parla. And thus “Parle” was born. It began with only 12 employees, all of whom were family members.

Biscuits were considered a luxury item throughout the British era, and could only be consumed by persons from upper origins and classes. Because the biscuits were imported from British nations, Parle G stepped in in 1939 and gave India its own popular biscuit. The basic rectangle biscuit is something that most Indians grew up with and continue to eat. So the Swadeshi movement gave India its favourite biscuit brand Parle-G, which has never discriminated against its customers based on their financial levels.

Initially, it was Parle-Gluco, and the wheat-based biscuit was reasonable enough for Indians to purchase. And this is how they came to dominate the market, causing other international biscuit firms to suffer. Following the Second World War, Parle Gluco became the buzz in the nation, and the Parle Gluco biscuit became quite famous at the time, as well as was eventually Rise as brand.

There was a severe unavailability of wheat in India when the Second World War ended and people were agitating for 1947. The whole plantation was left with only 63 percent of the cultivation, and Parle Gluco manufacturing had to be halted for years. They even created advertisements depicting how Indians had devoted their lives for independence, urging people to eat Parley biscuits till wheat supplies are restored.

Come Back of Parle G

Parle-G decided to return after a lengthy break with a variety of product types including Biscuits, Confectionery, Chocolates, Snacks, and Rusk. They even began promoting manufacturing with candy names like as Gold Star and Peppermint on Tea booths. “Krack Jack,” India’s first sweet-salty cookie, was introduced in 1956. In the same year, Parle launched Hide and Seek and 20-20 cookies, both of which starred Hrithik Roshan.

The low profit margin Strategy

Parle-g recognised that since this is their primary product, and because of it, they can reach the most extreme parts of the country, they’ll treat it as such, and will preserve low margins within those sectors.
In order for every household to be able to afford Parle-g.
And because of the cost and worth of money, Parle-g remains in everyone’s taste and in their minds. At the point, that parle-g has acknowledged that they will maintain a modest profit margin in this product, but how will they generate money?
And to generate Money with Good Margin, Krack-jack, Monaco, and hide-and-seek are all products of parle of urban clients, and the low profit in this driver commodity scales out to other brands.

The Magical Pricing Strategy of Parle G

Parle G truly understands the consumer’s pricing consciousness. We might’ve noticed, the Price of ‘999/-‘ looks cheaper or Inexpensive than 1000. while the difference is just of ‘1/-‘. Parle G understood this nuance long before, and is Applying in their business strategies and making Profits with it.

Let’s take an enxample of 5rs Parle G Packet. There was a time when 5rs Parle G Packet was 100 gm in weigh, then 95 gm, 90 gm, 85 gm, etc. What they’re really doing is, they are not ddoing any development the Price and the Quality, but with Quantity with a ‘Win-Win’ Situation. With this Price, Consumer is also satisfied and with this quantity, company’s balance sheet is also showing a profitable Numbers.

Skilled Production Team

It has been claimed that the parle-g production process is so efficient that there is no or minimal waste. According to the reports, when they manufacture 115 tonnes of biscuits, there seems to be 1% wastage, and this operational efficiency is not just at the wastage reduction level. However, KRAs and KPIs are so tightly defined at the employee productivity level that no employee can conduct unproductive work or squander man-hours.

Coolest Packaging of Parle G

Parle G is fully aware that the public is price sensitive. That is why, instead of wasting resources on double packing, they removed the wax papers and produced a basic plastic packaging, you will notice that it is simple plastic wrapping, and if You tear the package, there is no additional layer, just straight biscuits. And the cool thing is that the biscuits in their family pack don’t even have a wrapper; they’re directly packed in plastic Polythene because they know that when a consumer is intensely focused on price, they don’t care about anything else. They didn’t even change the cover girl because they wanted to keep their costs stable; their single winning factor, aside from quality and taste, and their major defining factor is their price, price, price.

Manufacturing Plants Location

Parle G took advantage of their industriousness by establishing factories in Mumbai, Karnataka, Rajasthan, and Haryana, from which they can cover a large portion of the distribution network, either by building their own factories or by outsourcing them, lowering the cost of logistics, warehousing, and other miscellaneous costs, allowing for more inventory and fund rotation in a year.

The Household Positioning Strategy

Parle G is well aware that Indian households have an unequal number of family members. There is a nuclear family, which consists of merely a couple, a family of four, and two brothers living together with their own families, and even larger joint families. Thus they launched packets ranging from 2rs to 50rs earlier, and they even sold cookies in tins at one time. They made sure that not a single client was lost. Customers can buy tiny or large packets, but they should not feel that it is putting a strain on their wallets.

No Boundary for Innovation & Well Setup for Future Risks

Inspite of considering other brands, a villager coming from remotest of places in India will ask for Parle G, he doesn’t even care about other brand, his favorite is Parle-G. For a company earning this respect, also has focused on vast Innovation in the Product ranges for their consumers. Instead of just depending on the Parle G Biscuit, which might come as a huge risk for an Organization. They understood this very well, and that’s why they maintained Parle G as a driver product while bringing out new products that the young generation likes them. Which can also attract the customers with new taste, which can say that the company is innovative. There are many brands like krack-jack, Monaco, 20-20, hide & seek. You must not be knowing that all are brands of Parle G. Parle G increased their timeline to 8487 crore, there is a huge contribution of these products.

Parle G has Plans for, What will happen if the entire biscuit firm is put in jeopardy? Parle G has properly taken care of. What if individuals have lowered their biscuit intake or there is a biscuit alternative on the market? Parle G was well aware of the dangers, which is why, when they created Parle Rusk, they sought total control of the tea market.

Parle G have also Specualated, what if people reduced their consumption of tea & coffee, there can also be another shift or change in the market then Parle. So Parle G also stepped into the world of chocolates and reduced their dependency on biscuits & rusks; they introduce their chocolates like mango bite, parle melody which are extremely popular brands now.

What odes business sense says? initially, The dependency was on Parle G, then they shifted that on other biscuits now, to reduce the dependency on all the biscuits, then introduce parle rusk and to reduce the dependency even on parle rusk, they brought in chocolates.

Parle G didn’t even stopped here, they introduce- fresh harvest pulses like tuvar pulse ( pigeon peas) and many more and in no time, parle-g got success in this too. Parle-G has a wide range of brands, and this case study teaches us a pleasant method to do business by showing us how to regulate product price and do business via turnover, with a compensation produced by taking a medium path and slightly altering the margin product.

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