biscuit industry 3rd deliverable v3
TRANSCRIPT
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Biscuits
FMCG
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PRICE POINT TABLE
Source: Lit searches; Scribd
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ENERGY POINT TABLE
Source: Lit searches; Scribd
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Distribution channel for biscuits
Source: Lit searches; Scribd
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“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
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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
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Parle ~ Marketing history
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1980's….
Parle-G started being advertised
Mainly through press ads
The communication spoke about the basic benefits of energy and nutrition.
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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.
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2002
Parle-G Mera Sapna Sach Hoga'
Bringing the brand closer to the major consumer: Children
Brand Ambassadors: Hrithik Roshan & Ricky Ponting
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1997PARLE – G SPONSORED TELE-SERIES
SHAKTIMAN
Huge
Succe
ss!!
Parle extended this association
with Shaktimaan and gave away a
lotof merchandise of Shaktimaan
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2002 – G MAN
New ambassador for Parle-G
Superhero who defeats evil
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2005 : Golu Galata contest
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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’.
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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
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Britannia
Marketing strategy includeProduct and packaging innovations
Appropriate pricingStrong distribution channel
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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
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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
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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
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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
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Thank you