Titled 'Kal Ke Genius', the campaign created by Ogilvy was received well and made waves in the social media platform. To stay connected to the new generation, Parle-G last month launched a new advertisement campaign after 10 years. Share of Parle-G in the firm's overall sales has declined to about 50 per cent now from more than 70 per cent a decade ago. "However, it will still be the default biscuit in every house and if the company leverages the brand into other options such as hi-fibre biscuits or other value-added segments, the penetration of the brand will go up," Parida added. She said that Parle-G might not grow as fast as the overall biscuit market as cross-category competition increases.
Alpana Parida, president at brand firm DY Works, said that Parle-G is to India what Coca-Cola is to America, "Many of us have grown up with Parle-G and tea at various points of time in our lives. However, Parle-G grew 10 per cent last year despite such a high base," Parle's Shah said.Įxperts agree.
PARLE G BISCUIT PRICE IN INDIA UPGRADE
"We saw consumers upgrade to the cookie and cream segment as companies, including Parle, introduced lower-priced products in the past three years, which impacted the glucose category initially. But the company is confident about the brand's future. Another concern is the ability of the 73-year-old Parle-G brand to stay relevant to the next generation of customers. Yet, there are question marks over Parle-G's potential to keep its growth rate and to become the country's first Rs 10,000-crore FMCG brand mainly because of the increasing popularity of cookies and cream biscuits, which are available at similar price points as glucose biscuits. While rivals have signed on celebrities, Parle-G has managed to grow its sales with just a simple white-and-yellow striped wrapper with a picture of a baby on it. Parle's 10 own manufacturing units and around 75 contract manufacturing plants across the country helped it beat rivals in distribution efficiency and cost. Parle Products said the value-for-money plank has been crucial in growing Parle-G at over 15 per cent compounded annual growth rate in the past five years. "At that price point, it is difficult to compete in the category and we would rather focus and invest on our strength and earn profit on products such as cream biscuits," added the official, who didn't wish to be identified. "Parle-G has sheer economies of scale which we can't match without impacting our margins," a senior official at ITC Foods said. "This is despite Parle seeing the highest revenue CAGR of 32 per cent during the period, the highest among FMCG companies," Mour said.Įven rivals agree that it's tough to match Parle-G in pricing. "Historical analysis of the biscuits category reinforces that even a single margin disruptive player can impact the margin profile of the entire category," Anand Mour of ICICI Securities said in a recent note.īetween FY06 and FY11, Parle Biscuits' EBITDA margin declined by 720 bps to 2.9 per cent in FY11 and Britannia's EBITDA margin declined by 550 bps to 5.5 per cent. ITC's Sunfeast brand too had over 9 per cent share in the glucose segment last year.Īnalysts said that Parle's relentless focus on top line has driven its rivals to shift strategy from glucose to other sub-segments such as cream and cookies.
Net result: Parle-G increased its share from 67 per cent in 2002 to 79 per cent in 2012 while the share of Britannia's Tiger fell to 9 per cent from 26 per cent during the same period. The company also managed to keep prices unchanged for over a decade - between 19 - even as the prices of raw materials such as wheat, sugar and milk escalated up to 150 per cent. But when Parle-G sponsored children's television show Shaktimaan on Doordarshan, it literally rescued the brand. There was a time when Parle-G's dominance was threatened by rival brands, especially Britannia's Tiger, which targeted kids.
This affordability proposition is exactly what has been paying off for Parle-G despite rivals such as ITC and Britannia entering the space. "Even after 70 years, we haven't digressed from that philosophy and the pricing has helped the brand become a staple today," Chauhan added.
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