Parle Case Study: Business Model, Marketing Strategy, and SWOT Analysis

Whenever you think of biscuits, one of the names that instantly comes to your mind is Parle-G. Initially it was established as a candies manufacturing company and over time it has established itself as one of the largest biscuit manufacturers in India. 

In this blog, we will give you an overview of Parle, its history, business model competitors along with the SWOT analysis.

Parle Company Overview

Parle is one of the oldest and well-known companies in the FMCG segment renowned for popular brands such as Parle G, Hide & Seek, Mango Bite, Melody, etc. In 2011, Parle G was the top-selling biscuit in India. The company was launched by the Chauhan family and initially it offered affordable snacks but later started baking biscuits. The company uses different marketing strategies to establish itself as a global brand. The company has its headquarters situated in Mumbai.

History of Parle

The company was incorporated in 1929 by Vijay Chauhan, Sharad Chauhan, and Raj Chauhan. It started manufacturing Parle-G biscuits in 1939, which were glucose biscuits. The biscuit was initially named Parle-Glucose biscuit, but in 1980, it changed the name to Parle-G, in which G refers to glucose, and it was campaigned as G means genius. 

Over the years, the company acquired various international brands such as Dr. Gerard of Poland. To compete with established brands like Kellogg’s and Nestle, it also introduces cereals into its product line. The company has recently increased the prices of Parle G biscuits, but despite this, it records a surge in sales. Currently, the company has more than 50,000 employees.

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Product Portfolio of Parle

The Parle has a diversified product portfolio spread across four different categories:

1. Biscuits: The company offers various biscuits such as Parle-G, Krackjack, Hide & Seek, Monaco, etc.
2. Confectionery: The company was originally started as a candy manufacturer and sells candies like mango bite, melody, etc.
3. Snacks: Parle also offers snacks such as wafers, namkeens, etc.
4. Beverages: Parle has also diversified into the beverages sector and offers beverages like Frooti, Appy Fizz, etc.

Business Model of Parle

The business model of Parle is as follows:

1. Low Cost: Parle primarily focuses on high-volume production, which helps them keep the cost very low. Parle-G is the flagship product of the company which is selling at a very nominal price.
2. Distribution Network: The company has a strong distribution network, which helps them in reaching the remote areas of India. Through a wide distribution channel the company can easily increase its revenue.
3. Emotional Connect: The company has successfully made an emotional connection with its customers through its innovative marketing campaign.
4.  Small Production Facilities: The company has established several small production facilities spread across the country, allowing them to easily achieve high production volumes.

Marketing Strategy of Parle

The company uses various marketing strategies, which help them in promoting their brand. These activities include hiring popular celebrities as brand ambassadors, advertising campaigns, etc. The company also places its flyers in stores and promotes its products across social media platforms.

Competitors of Parle

Various market players give intense competition to Parle; the companies are as follows:

1. Britannia Industries Limited: This is one of the prominent competitors of Parle. Their products like Good Day, Marie Gold, Treat, etc. give intense competition to Parle’s products.
2. ITC Limited: ITC’s snacks and biscuits such as Dark Fantasy, Sunfeast Marie Light, etc. gives direct competition to Parle.
3. Nestle India: Nestle’s products such as Munch, Kitkat, are very famous among the Indian consumers.
4. Surya Food and Agro Limited: The company sells its biscuits under the brand name Priya Gold. Some of its most famous products are Marie Lite, Snakker, etc. providing affordable options to the Indian consumers.

Read Also: Zepto Case Study: Business Model and SWOT Analysis

SWOT Analysis of Parle

Strength

1. Brand Image: The company has a strong brand image and is recognised as a prominent player in the biscuit industry.
2. Pricing: The products of Parle are priced in a manner that every Indian consumer can easily buy them.
3. Distribution Network: The company has a strong distribution network spread across India, helping them in reaching every corner of the country.

Weakness

1. Limited Digital Presence: The company invests less on expanding its digital presence.
2. Focus on only Mass Segment: The Parle primarily focuses on the mass segment, and has limited offering in the premium segment.
3. Dependence: A major source of company revenue comes from its flagship products such as Parle-G and Hide & Seek.

Opportunities

1. E-Commerce: With the rise of online retail platforms, companies can increase their revenue.
2. Global Expansion: In the world of globalization, the company can expand its business operations across the world and increase its revenue.
3. New Products: It can launch new products and can also introduce new flavours in its existing product line to cater to changing consumer preferences.

Threat

1. Competition: The company faces intense competition from existing and new players, including products from local brands.
2. Consumer Preference: The preferences of consumers are evolving; therefore, in order to stay ahead they must stay in touch with their consumers and incorporate their suggestions in future product offerings.
3. Raw Material: Increasing raw materials prices can decrease the profit margins of Parle.

Read Also: Bikaji Foods Case Study – Product Portfolio, Financial Statements, & Swot Analysis

Conclusion

Parle is not just a company, it is a household name famous for its products like Parle-G, Hide & Seek, Melody, etc. It started as a small candy manufacturing company and today it has evolved into a well-known brand known for its biscuits, beverages, etc. With the changing consumer preferences, the company is also planning to introduce new flavours and better products. It has recently increased the price of a few of their products; however, it has not impacted the sales of the company. The journey of Parle from being a small business to a well-known FMCG brand can be considered one of the inspiring stories of Indian business.

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