biscuit industry 3rd deliverable v3

Biscuits

FMCG

PRICE POINT TABLE

Source: Lit searches; Scribd

ENERGY POINT TABLE

Source: Lit searches; Scribd

Distribution channel for biscuits

Source: Lit searches; Scribd

“The supply chain of products in the FMCG market in India is one of the longest supply chains an industry could really have. There are as many as 5 levels of intermediaries involved in the entire supply chain through which a product passes before reaching the end consumer.”Source: Bee Management Consultancy Services Pvt Ltd report on analysis and distribution channels on various sectors, 2005

ParleParle maintains 9 mother units and 70 contract

manufacturing units across the country

Distribution network (~ 5000 distributors)

Through the normal 5 layered

distribution channel

Directly from the company:Parle trucks

deliver material

600gm packs are delivered

from the factory only

‘Dedicted Parle Shops’ which keep only Parle products

Urban Rural

Source: Factory visit

Distributors arrange their own transport

Parle ~ Marketing history

1980's….

Parle-G started being advertised

Mainly through press ads

The communication spoke about the basic benefits of energy and nutrition.

1989

Parle-G released its Dadaji commercial, which went on to become one of the most popular commercials for Parle-G. The commercial was run for a period of 6 years.

2002

Parle-G Mera Sapna Sach Hoga'

Bringing the brand closer to the major consumer: Children

Brand Ambassadors: Hrithik Roshan & Ricky Ponting

1997PARLE – G SPONSORED TELE-SERIES

SHAKTIMAN

Huge

Succe

ss!!

Parle extended this association

with Shaktimaan and gave away a

lotof merchandise of Shaktimaan

2002 – G MAN

New ambassador for Parle-G

Superhero who defeats evil

2005 : Golu Galata contest

Brand positioning‘G for Genius’ since 2004.2006-07: Changed to ‘Hindustan ki

Taakat’, to assume a bigger platform as the biscuit that stands for strength (taakat) in and for India.

But in early 2008, Parle-G reverted to its ‘G for Genius’ line with a little twist – ‘Do Genius Ek Taakat’.

Uses FIFO method to reduce wastage of goods due to expiry

Keep goods on constant move from low sales area to high sales area

Company collects expired goods 4 times a year and destroys them

ITC provides the retailers with racks, hangers, etc to display the products

Source: http://www.itcportal.com/about-itc/newsroom/press-reports/PressReport.aspx?id=468&type=C&news=ITC%20foods%20growth%20spawns%20Rs%20700%20crore%20brand

ITC

Britannia

Marketing strategy includeProduct and packaging innovations

Appropriate pricingStrong distribution channel

BritanniaNo major strategic innovations in

distribution channelsMore than 600000 outlets across the

countryBritannia has maintained an excellent

distribution channel in urban IndiaBut ~70% of the Indian population is in villages and Britannia needs to tap this market

Source: http://www.paterson.co.in/downloads/Britannia%20Ind%20-%20Paterson.pdf

“We have good strong distribution channels 50 % of our revenue comes from rural markets “- Vinita Bali

Three manufaturing plants : Greater Noida Lucknow (U.P.) Surat (Gujarat)Concentrated mainly on Nothern and central part of

the country. Distribution channel consist of super stockists and

distributors. 125 : Super stockists3500 : Distributors

Greater availibilty in the Rural Market of the North.Provide biscuits to airlines,railways, food kiosks present

at railway stations (300 railway stations)

Priyagold

Ways to improve distribution channel

Partnering with Self Help Groups in Rural India.

Internet based Rural Kiosks/Hubs

Direct SellingMarketing and distribution model like Shakti Amma by HUL

Source: http://www.oppapers.com/essays/Innovative-Distribution-Channels-Fmcg-India/120552

Referenceshttp://www.businesseconomics.in/index.php

?option=com_content&view=article&id=145&Itemid=6

Enterpreneur issue september 2009http://knowledge.wharton.upenn.edu/india/

article.cfm?articleid=4341http://www.managementparadise.com/articl

es.php

Thank you