Parle G Case Study

Hello Friends Today we will Discuss about Parle G . Parle G is a brand of biscuit . Friends, you will be surprised to hear this. Biscuit-Parle-G, the world's most salable, has not increased its price since 25 years. But, once Parle-G raised the price by 50p and the right time, sales went down so badly and millions of people started protesting, as if it were the price of petrol .

In 2013, its turnover was 5000 crores And in 2017-18, this turnover is more than 8000 crores, so when its price is not going up, and the company is also growing then what is the strategy that the company is doing extraordinary work.

Friends today We will Discuss Best Strategies Of Parle G , So let's get Started

Strategy - 1 : Low profit margin

Parle G decided that since it is their driver product, because of this product we reach places in the country then we will consider it as a driver product. We will keep a low margin in these. Because every family can buy Parle-G and because of this the cost and value of money remain in everyone's taste and mind.

First point, that Parle-G has accepted that we will keep a low profit margin in this product but, how will they make money? You will be surprised to know, but all the products of Crack-Jack, Monaco, urban customers Parle are being hidden And low mileage in this driver product that benefits the other brands.

Friends, 2 most important points Parle-ji brings money from his home when raw materials are expensive everywhere. So, what is the magic trick Parle-ji? So, right now I am holding this Parle-G packet of 5 days. People used to say that initially in 5rs. It was 100 grams, then 90 grams, used to be used like this. And even now, while I'm reading this packet.it is reduced to 65gm and is the fun part, it is also written as 55gm + 10gm extra.

This means, actually it is 55 grams, you are given an additional 10 grams because they know, the price should not go up because it is already lodged in people's minds.. So can you implement this policy in your business as well? Because it is neither wrong nor cheating . Because you are already selling a price sensitive product and if it is pressurizing the profit margin then the weight is already printed, then you can also play with the quantity and weight, no problem. If your consumer is price sensitive.

Strategy - 2 : Buying intelligence

Friends, the business mind says that the money you have saved from buying raw materials is your net profit and friends, Parle-g has obtained its raw materials from such organized, direct sources that perhaps the cost of their raw materials Is considered to be the most appropriate in India . And with the intelligence of saving the cost of this purchase, they managed to keep the price constant, which is passed on to the consumer .

Strategy - 3 : Executive efficiency

It has been said that Parle-G's production line is so efficient that there is zero or negligent scope for wastage. The data shows that when they produce 115 tonnes of biscuits there is also 1% wastage. And this operational efficiency is not only at the level of wastage reduction, but the KRA and KPIs are also well defined at the employee productivity level that even an employee cannot do unqualified work, even a man Can't waste hours .

Strategy - 4 : Low cost packaging

When they saw that the public is price sensitive .Then they did not waste resources in double packaging. They take out wax papers and do a simple plastic packaging and if you look carefully it is simple plastic packaging. And if I tear the packet, there is no other layer, straight biscuits. And the fun part, is that their family packs do not contain biscuits, they are not even a wrapper that is packed directly in plastic polythene because they know when the consumer is so fixated on the price .

Then don't care about anything else, because they didn't even change the cover girl because they wanted to keep their cost constant with their single winning factor with quality and taste and their major deciding factor was their price, price and price.

Strategy - 5 : Strategic location of factories

They used their talents in setting up factories in Karnataka, Rajasthan, Haryana, where a large portion of the distribution could be covered at any time, either by building their own factories or outsourcing to save logistics costs. Can. Can be saved Miscellaneous costs can be saved .

So that the supply of the product is quick so that more inventory and fund rotation in a year is what a beauty!

Strategy - 6 : Many price variants

They, know very well, that Indian families have a disproportionate number of families. There is a nuclear family where only one couple lives and a family of four. There are also two brothers who live with their respective families and a large joint family. Therefore, they first offered packets ranging from 2rs to 50rs, at some point they sell biscuits in tin. Therefore, friends he ensured through many variants that there is not a single reason for losing a customer that customers are buying either small or large packets. They should not feel that this is increasing the burden on their pocket.

Before I tell you the future strategy of Parle-ji, let us get back to history for a moment In the rush to set up the factory, he forgot to think for his name . Because their factory was in the Parle area of Mumbai, currently called Vile Parle, they named their product under the same name, or one could say that it got the name on its own and you'd be surprised to see other brands Inspire to keep, but for a Parle-G in India coming from far away rural areas, they will not care about another brand, their favorite is Parle-G company which is earning this honor .

So friend that is for today , I hope you enjoyed it .