Growth Strategy

Growth Strategy

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Meaning of Growth Strategy:
A growth strategy entails introducing new products or adding new
features to existing products. Sometimes, a small company may be forced to modify or increase
its product line to keep up with competitors. Otherwise, customers may start using the new
technology of a competitive company. For example, cell phone companies are constantly adding
new features or discovering new technology. Cell phone companies that do not keep up with
consumer demand will not stay in business very long. A small company may also adopt a growth
strategy by finding a new market for its products. Sometimes, companies find new markets for
their products by accident. For example, a small consumer soap manufacturer may discover
through marketing research that industrial workers like its products. Hence, in addition to selling
soap in retail stores, the company could package the soap in larger containers for factory and
plant worker
Definition of Growth Strategy:
An organization substantially brooders the scope of one or more of
its business in terms of their respective customer group, customer functions and alterative
technologies to improve its overall performance.
Types of Growth Strategy :
There are 2 types of growth strategy namely Internal Growth
Strategy and External Growth Strategy. Business growth strategy comes into this strategy.
Internal or organic growth strategies rely on the company’s own resources by reinvesting some
of the profits. Internal growth is planned and slow. In an external growth strategy the companies
draw on the resources of the other companies to leverage its resources.

Internal Growth Strategy :
Internal growth is a strategy to develop the base or capabilities of
the business itself. In other words, many businesses will reinvest in employee development,
departmental restructuring, or enhanced product offerings in the hopes of providing a broader
base on which to provide services/products to customers. Internal growth does not produce
immediate revenue increases and may actually require an input of revenue to be paid off over
time, but internal growth promises the potential for future returns on investment. Internal growth
strategies do not necessarily increase the size of the business. Internal growth strategy is further
divided into 3 categories.
(a) PRODUCT EXPANSION
(b) MODERNISATION
(c) DIVERSIFICATION

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Explanation:
(a) PRODUCT EXPANSION:
Business expansion refers to raising the market share, sales
revenue and profit of the present product or services. The business can be expanded through
product development, market development, expanding the line of product etc.Expansion leads to
better utilization of the resources and to face the competition efficiently. Business expansion
provides economics of large-scale operations. Business can be expanded through:
1. Market penetration strategy:
This strategy involves selling existing products to existing markets. To penetrate and capture the
market, a firm may cut prices, improve distribution network, increase promotional activities etc.
2. Market Development strategy:
This strategy involves extending existing products to new market. This strategy aims at reaching
new customer segments or expansion into new geographic areas. Market development aims to
increase sales by capturing new market area.
3. Product Development strategy:
This strategy involves developing new products for existing markets or for new markets. Product
development means making some modifications in the existing product to give value to the
customers for their purchase.
(b) MODERNISATION:
Modernisation. All organisation needs modernisation for growth and to
improve the efficiency and effectiveness of their business operations. This often requires
implementing the latest IT systems including their B2B solutions. However, the current
economic climate is forcing an organisation to abandon the process of replacing their existing
critical systems. Instead they are looking to modernise these applications to meet their current
and future business needs and requirements.

(c) DIVERSIFICATON:
Diversification is another form of internal growth strategy. The
purpose of diversification is to allow the company to enter new lines of business that are
different from current operations. There are four types of diversification:
a) Vertical diversification
b) Horizontal diversification

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c) Concentric diversification
d) Conglomerate diversification
a) Vertical Diversification:
Vertical diversification is also called as vertical integration. In vertical
integration new products or services are added which are complementary to the present product
line or service. The purpose of vertical diversification is to improve economic and marketing
ability of the firm. Vertical diversification includes:
Backward integration:
In backward integration, the company expands its business activities in
such a way that it moves backward of its present line of business.

Forward integration:
In forward integration, the company expands its activities in such a way that it
moves ahead of its present line of business.
b) Horizontal Diversification:
Horizontal diversification involves addition of parallel products to the
existing product line. For example: A company, manufacturing refrigerator may enter into
manufacturing air conditioners. The purpose of horizontal diversification is to expand market
area and to cut down competition.
c) Concentric Diversification:
When a firm diversifies into business, which is related with its present
business it is called concentric diversification. It is an extreme form of horizontal diversification.
For example: Car dealer may start a finance company to finance hire purchase of cars.
d) Conglomerate Diversification:
When a firm diversifies into business, which is not related to its
existing business both in terms of marketing and technology it is called conglomerate
diversification.
External Growth Strategy:
External growth is the growth of a business due to a takeover, a
merger, or through a partnership with another company or organization. It is when a company or
corporation increases its profits and sales by purchasing other companies, rather than from its
own business. External growth strategy is further divided into 4 categories.

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(a) Merger.
(b) Acquisition.
(c) Joint Venture.
(d) Strategic Alliance.
Explanation:
(a) Merger:
A merger occurs where two firms combine, with the consent of both groups of
shareholders and Directors takeover (also known as an acquisition) refers to a situation where
over 50% of the shares in another company have been purchased - therefore giving the predator
full control of the newly acquired company. Both mergers and takeovers are referred to as
growth through amalgamation, or simply as integration.
There are several different classifications of integration:
Horizontal.
This occurs when two firms in the same industry join together who produce the same
product and are at the same stage of the production process. The new, larger business is likely to
be more powerful, have a larger market share, and achieve higher sales revenue and profits.
However, the new business may become complacent and inefficient and find that it suffers from
diseconomies of scale and or falling profits.
Vertical.
This occurs when two firms combine who are in the same industry, but at a different
stage of the production process.
Forward vertical integration.
Occurs where a company merges with, or takes-over, another
company which is closer to the retail stage (i.e. nearer to the consumer). An example of this
would be a car manufacturer taking-over a range of car showrooms. Forward Vertical integration
is often the result of a desire to secure an adequate number of market outlets and to raise their
standard.
Backward vertical integration.
Occurs where a company merges with, or takes-over, another company
which is closer to the source of the raw material (e.g. a car manufacturer taking-over a supplier
of car components). Backward Vertical integration is often the result of a company being able to

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exercise much greater control over the quantity and quality of it supplies, as well as securing its
supplies at a lower cost.


Conglomerate.
This occurs where two firms merge which are in different industries and produce
different goods - in other words, it is pure diversification. The major advantage to the new, larger
firm is that it has diversified its product range and spread its risks.
Lateral.
This occurs where two firms combine which are similar in some way, but are not in the
same industry (e.g. Cadbury-Schweppes). Here, both companies produced products which were
sold to similar market segments (confectionery and soft drinks). Often, the firms can benefit
from the management and marketing techniques employed by the other.

(b) Acquisition:
A company’s approach to acquiring new businesses, products and services after
considering all factors like financial impact, brand image, cultural compatibility, product synergy
and other business requirements is called Acquisition Strategy. It is a part of a company’s growth
strategy and plays a significant role in the inorganic expansion of the business. Successful
acquisitions are based on well-defined goals and strategic value creation logic.A small company
with extra capital may use an acquisition strategy to gain a competitive advantage. An
acquisition strategy entails purchasing another company, or one or more product lines of that
company. For example, a small grocery retailer on the east coast may purchase a comparable
grocery chain in the Midwest to expand its operations.

Types of Acquisition:
Stock Purchase:
The acquirer buys the seller’s stocks from shareholders, all assets and liabilities
and off-balance sheet items as well. Book values are used for valuation of assets and liabilities,
which can be modified as well for any step-ups or step-downs. This type of acquisition is
inexpensive and quick to execute; it is mostly preferred by the seller and is popularly used for
acquiring public or large companies
Asset Purchase:

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Here, the buyer gets to choose the assets he wants to acquire and liabilities that
he wants to assume; these have to be clearly defined in the purchase agreement. In asset
purchase, every single asset / liability must be valued separately before the transfer takes place;
this makes the process complex as well as time-consuming. Asset purchase gives the buyer
greater flexibility to choose, therefore its preferred by the acquirer. Private companies commonly
use this kind of acquisition and it’s also used for divestitures and distressed sales.
(c) Joint Venture:
A joint venture is an external business growth strategy. In a joint venture, two or
more companies decide to establish a new business enterprise to exploit a specific business
opportunity. A joint venture is a quick and efficient way to exploit a business opportunity. A
small business may not be able to secure enough resources to enter a new market or develop a
new product or service. Additionally, a joint venture is a desirable strategy to share the risks of
starting a new enterprise to enter a new market.
Types of Joint Venture:
Fully Integrated
A fully integrated joint venture closely resembles a merger. In this arrangement,
firms integrate all of their functions, from manufacturing to sales. They may integrate functions
in just one area of business, such as a particular product line, or all areas.
Research and Development
In research and development joint ventures, firms pool their skills,
knowledge or equipment to develop better products, services or production methods. Each firm's
area of expertise may benefit the other, allowing the firms to develop these outputs more
efficiently.
Production and Marketing
Firms may either produce goods or services together, or market them
together. In some cases they do both. Combining their facilities, equipment and methods can
allow firms to produce goods more efficiently. They may jointly produce a product they
designed together, or produce their own products using combined resources. If they jointly
market their products -- whether they produced the products together or not -- each firm can
reach the other's consumer base. By marketing together, they can also pool their resources to
advertise more widely.
Purchasing

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An agreement to purchase goods together gives both firms more marketing power.
They typically purchase goods at a lower rate by purchasing them in larger amounts, which they
divide between each other. Firms can also reduce costs by storing goods together and sharing the
administrative staff that monitor the inventory.

Networking
In some industries, joint ventures between numerous firms create a network that
better serves customers. The telecommunications, banking and transportation industries are
examples of networking joint ventures. Countries. Firms from different countries often join
together to broaden their market bases.
(d) Strategic Alliance:
A strategic alliance is an agreement between two or more parties to pursue a
set of agreed upon objectives needed while remaining independent organizations. This form of
cooperation lies between mergers and acquisitions and organic growth. Partners may provide the
strategic alliance with resources such as products, distribution channels, manufacturing
capability, project funding, capital equipment, knowledge, expertise, or intellectual property. The
alliance is cooperation or collaboration which aims for a synergy where each partner hopes that
the benefits from the alliance will be greater than those from individual efforts. The alliance
often involves technology transfer (access to knowledge and expertise). Economic specialization.
Shared expenses and shared risk. There are seven general areas in which profit can be made from
building alliances. Stages of Alliance Formation. A typical strategic alliance formation process
involves these steps:

Strategy Development:
Strategy development involves studying the alliance’s feasibility, objectives
and rationale, focusing on the major issues and challenges and development of resource
strategies for production, technology, and people. It requires aligning alliance objectives with the
overall corporate strategy.

Partner Assessment:
Partner assessment involves analyzing a potential partner’s strengths and
weaknesses, creating strategies for accommodating all partners’ management styles, preparing
appropriate partner selection criteria, understanding a partner’s motives for joining the alliance
and addressing resource capability gaps that may exist for a partner.

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Contract Negotiation:
Contract negotiations involves determining whether all parties have
realistic objectives, forming high calibre negotiating teams, defining each partner’s contributions
and rewards as well as protect any proprietary information, addressing termination clauses,
penalties for poor performance, and highlighting the degree to which arbitration procedures are
clearly stated and understood.


Alliance Operation:
Alliance operations involves addressing senior management’s commitment,
finding the calibre of resources devoted to the alliance, linking of budgets and resources with
strategic priorities, measuring and rewarding alliance performance, and assessing the
performance and results of the alliance.

Alliance Termination:
Alliance termination involves winding down the alliance, for instance when
its objectives have been met or cannot be met, or when a partner adjusts priorities or re-allocates
resources elsewhere.

Importance of Growth Strategy:
Growth is something for which most companies strive, regardless
of their size. Small firms want to get big, big firms want to get bigger. Indeed, companies have to
grow at least a bit every year in order to accommodate the increased expenses that develop over
time. With the passage of time, salaries increase and the costs of employment benefits rise as well.
Even if no other company expenses rise, these two cost areas almost always increase over time. It
is not always possible to pass along these increased costs to customers and clients in the form of
higher prices. Consequently, growth must occur if the business wishes to keep up. Organizational
growth has the potential to provide small businesses with a myriad of benefits, including things
like greater efficiencies from economies of scale, increased power, a greater ability to withstand
market fluctuations, an increased survival rate, greater profits, and increased prestige for
organizational members. Many small firms desire growth because it is seen generally as a sign of
success, progress. Organizational growth is, in fact, used as one indicator of effectiveness for small
businesses and is a fundamental concern of many practicing managers. Organizational growth,
however, means different things to different organizations. There are many parameters a company
may use to measure its growth. Since the ultimate goal of most companies is profitability, most
companies will measure their growth in terms of net profit, revenue, and other financial data. Other
business owners may use one of the following criteria for assessing their growth: sales, number of

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employees, physical expansion, success of a product line, or increased market share. Ultimately,
success and growth will be gauged by how well a firm does relative to the goals it has set for itself.

Merits of Growth Strategy:
 A larger firm can say “full-service” and really mean it. While it’s common to claim that level
of service offering, it’s never really true for firms with an employee count below, say, 35-40.
The ability to claim this and then deliver on it has a significant impact on your positioning
because it allows prospective clients to use you more in an agency of record arrangement,
with a more complete integration of services. It’s not like anything magic happens at that
size, but there is a correlation between the number of employees you have and whether or not
you can truly provide integrated services to your clients.
 Closely related to the first, larger firms can afford to have individual employees wear fewer
hats, which means that employees can focus their efforts and develop valuable expertise. In
baseball terms, this moves that employee from utility player status to pitcher or shortstop.
 Being larger means that your client will believe that you can be trusted with larger projects,
and you’ll likely be doing those projects in the context of a deeper relationship. That will
yield a better understanding of what the client really needs and how to deliver that. This is all
true because the number of clients on your roster doesn’t vary much with size they’re just
bigger clients you’re doing more work for.
 Being larger carries an appeal to some employees because there’s a career ladder with more
rungs on it. That’s just one more reason that working for you might be interesting to them. It
keeps them motivated and engaged over a longer period of time, which means that you can
keep those great employees and benefit from their expertise.
 A larger firm is significantly more likely to be acquired or merged in a manner that will yield
significant transaction value. There are many other factors that impact the deal, and the odds
are still not substantial, but larger firms can be shopped with better results.
 The cost of having multiple partners with higher pay can be carried more effectively in a
larger firm. Partner compensation is simply a smaller percentage of the whole, and so paying
a higher salary to three principals in a large shop is more manageable than doing the same in
a six-person shop.

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 Being larger affords economies of scale in training employees. Instead of both the actual and
the opportunity costs of travel, you can spend less money and expose more team members to
that same training by bringing the experts to you.
 Owning a larger firm will make it easier for you to get away for extended periods of time.
Since the increased volume of work that accompanies a larger firm absolutely requires some
level of institutionalization, it’s not that big of an adjustment to fill in the gaps when the
principal leaves.
 Running a larger firm means that you can safely step away from doing the work (as a player
coach) to managing the enterprise (solely as coach). This fact that your role can and must
entail has the highest correlation with the size of your firm. In other words, you might or
might not make more money with a larger firm, but you will certainly be closer to
management and further from implementation.
 Overcome barriers to entry to target markets.
 Fast speed of a access to new product or market areas.
 Access economies of scale.

Demerits of Growth Strategy:
 Quick way to reduce competition in market.

 Working with other businesses means sharing of good practice and ideas.

 Growth strategy is costly.

 Growth achieved may be dependent on the growth of the overall market.

 Harder to build market share if business is already is leader.

 In merger and acquisition mostly required financing and you will have to service your debt
from the growth you experienced with the merger or acquisition.

 Training and hiring becomes increasingly crucial as companies grow because many
employees’ skills do not grow with the organisation and it results into employee’s turnover.

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 If a firm grows faster than its ability than to manage its staff and control is costly and it is
said to be overtrading.

 There will be loss of control such as chief executives often do not survive the transition once
the company outgrows their original involvement.

 The quality of your Products and Service would drop causing an increase in customer
complaints.

 Due to growth strategy more people are employed, there is a need for more layers of
hierarchy as a result the chain of command becomes longer and slower.

 Longer time organic growth business needs longer time to grow as they need to start from
scratch including setting up of the whole business, hiring and recruiting human capital,
investing in machineries and etc.
Needs of Growth Strategy:
A recent poll conducted by DP Information Group has indicated
that the growth rate of small and medium size enterprises (SMEs) has been declining
tremendously in the recent years. Some of the business owners even said that they have “lost
their appetite for growth”.

This lost in appetite for growth may be due to the fact that business owners are highly focused
on cost cutting and productivity improvement measures. It is without a doubt that productivity
improvement is vital for business sustenance; however they should not neglect and lose focus on
the expansion of their business so as to be able to stay and compete in this challenging business
environment. The rapid increase in business costs and the unfavorable economic conditions also
play a part in lack of ambition to expand. Adding to this is the tightening of manpower
constraints.

Business growth strategy is about maximizing all the opportunities SMEs are presented with,
optimizing returns on their investments and utilizing all their assets for the highest possible
returns. Therefore, SMEs need to know how to make use of all these facilities that they have to
improve their business growth. Growth is imperative for every business – when a business stops
growing and remain stagnant, they will then face a weakening balance sheet. This will eventually
lead to a higher credit risk as SMEs will look at external funding to help their businesses.

Despite the importance of having a growth strategy, a quarter of the SMEs polled admitted to not
having any in place. Many SMEs still avoid implementing it due to various factors such as:

Cash – Business owners still have the mindset that implementing growth plans will be costly.
Therefore they are wary on investing in a growth plan as it may lead them to incur unnecessary
losses

Creditors – It is also common for business owners to depend on external funding to help them

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kick start their business initially which will in turn still be an obligation for the company to
fulfill.

Debtors – Leniency on their credit policy can also be a factor why SMEs face problems from
debtors. Customers may seize the opportunity presented to them and this causes bad debt to
increase.

GROWTH STRATEGY ADOPTED BY PARLE AGRO:-
INTRODUCTION:





Parle Agro Private Limited produces beverages, food products,
bottled water, and polyethylene terephthalate (PET) performs and caps. It offers an apple drink, a
fresh lemon drink, a sparkling apple drink, a mango drink, and a sparkling grape drink; and
apple, orange, grape, and mixed fruit juices. The company also provides pepper, cinnamon, and
menthol mints; caramel, coconut, strawberry, and vanilla toffees; mango, banana, strawberry,
and orange éclairs; a butter toffee; and kaju and kesar treats. In addition, Parle Agro Private
Limited offers pickle, mango chutney, noodle masala, butter garlic, and cheese n spice baked
munchies; and Italian pizza, yoghurt mint chutney, Chinese Manchurian, hot-n-sweet tomato,
Thai chilli, Indian chatpatta, and Arabian salted baked munchies. The company provides its PET
performs and caps for industries, such as bottled water, beverage, edible oil, foods and
pharmaceutical, etc. The company sells its products through stores. Parle Agro Private Limited

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was founded in 1985 and is based in Mumbai; India. Based in Mumbai, India has been India’
Largest manufacturer of biscuits and confectionery, for almost 80 years. Makers of the world’
largest selling biscuit Parle-G, and a host of other very popular brands. Its reach spans even to the
remotest villages of India. Many of the Parle products - biscuits or confectioneries, are market
leaders in their category and have won acclaim at the Monde Selection, since 1971. With a 40%
share of the total biscuit market and a 15% share of the total confectionery market in India, Parle
has grown to become a multi-million dollar company. Parle Agro is a food and Beverage
Company based in Mumbai, India Parle Agro - a trusted name in the beverage industry for agro
based drinks. Parle Agro is a leading Indian Beverage Company, the only Indian transnational
giant with the past experience of having successfully launched leading soft drink brands like
Frooti, Appy Classic, Appy-Fizz, Bailey Packaged Drinking Water & Confectionery brands like
Mentor and Buttercup.
Parle Agro strength is our people who have worked towards making our presence felt throughout
the country and all over the world through a strong franchisee network and well-developed
strong infrastructure. Parle Agro has its factories located in Silvassa, Patalganga, Bhopal,
Chennai, Ghaziabad and Hyderabad. At Parle Agro, success is a habit; where greater heights are
achieved through consumer insight, sound business practices, marketing and sales innovation,
with the focus on the consumer.'
Thinking consumer, Tasting success, Always
That is what Parle Agro is all about.

NATURE OF THE COMPANY:

PARLE AGRO is a trusted name in the Indian beverage
industry and has been refreshing India since more than two decades with leading brands like
Frooti, Apply Classic, Apply Fizz, Bailley, Saint Juice, LMN & recently launched Grappo
Fizz. Parle Agro Pvt., Ltd. manufactures, distributes, sells, and exports fruit drinks in India and
internationally. The company offers fruit and milk drinks, packaged water, and apple and mango
drinks in polyethylene terepthalate (PET) bottles and containers, and tetra packs. The company
also operates a health and fitness studio for woman. The company distributes its products
through franchisees. Parle Agro Pvt., Ltd. was founded in 1985 and is based in Mumbai, India.
Parle Agro has been a trusted name in the beverage industry providing wholesome and healthy
agro-based drink brands. It has successfully launched some of India’s leading beverages like
Frooti, Appy and N-Joi, and packaged drinking water, Bailey, over the last two decades. In a
country where health consciousness is growing at a rapid pace, Parle Agro, with its numerous
fruit-based drinks, has struck a chord with the masses. It brings to the consumers the magic of
premium quality fresh fruit drinks conveniently packed and available all through the year.
Fruit beverages are wholesome, easy to digest, highly refreshing with natural nutritional values
as compared to synthetic and aerated drinks.

Parle Agro Frooti is India’s first national mango drink. The mango segment is 95% of the Indian
fruit drink market and Frooti has 85% market share in the tetra pack segment. Made from fresh
and premium Indian mangoes,

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Frooti has grown to be one of India’s top 50 most trusted brands. When Parle Agro launched N-
Joi with real fruits and fresh milk, it not only launched a new healthy beverage, but also created a
whole new category in India. The milk shake claims to contain no preservatives and is full of
nutritional goodness. It’s delicious filler and act quick refreshing nourishment for today’s hectic
stressful life.

HISTORY:
Parle Products was founded in 1929 in British India. It was owned by the
Chauhan family of Vile Parle, Mumbai. The Parle brand became well known in India following
the success of products such as the Parle-G biscuits and Thums Up soft drink. The original Parle
Company was split into three separate companies owned by the different factions of the original
Chauhan family
Parle Products, led by Vijay, Sharad and Anup Chauhan (owner of the brands Parle-G, Melody,
Mango Bite, Poppins, Kismi Toffee Bar, Monaco and KrackJack) Parle Agro, led by Prakash
Chauhan and his daughters Schauna, Alisha and Nadia (owner of the brands such as Frooti and
Appy)Parle Bisleri, led by Ramesh Chauhan
All three companies continue to use the family trademark name "PARLE". The original Parle
group was amicably segregated into three non-competing businesses. But a dispute over the use
of "Parle" brand arose, when Parle Agro diversified into the confectionary business, thus
becoming a competitor to Parle Products. In February 2008, Parle Products sued Parle Agro for
using the brand Parle for competing confectionary products. Later, Parle Agro launched its
confectionery products under a new design which did not include the Parle brand name. In 2009,
the Bombay High Court ruled that Parle Agro can sell its confectionery brands under the brand
name "Parle" or "Parle Confi" on condition that it clearly specifies that its products belong to a
separate company, which has no relationship with Parle Products.
KEY PERSONS OF PARLE AGRO:
The following given table shows the important
persons as well as the owner of the PARLE AGRO COMPANY which had made the GROWTH
of the company to its possible extend.

NAME BOARD / OWNER OF THE COMPANY
PRAKASH CHAUHAN CHAIRMAN & MANAGING DIRECTOR
ALISHA CHAUHAN DIRECTOR
NADIA CHAUHAN DIRECTOR
DHEERAJ KUMAR CHAIRMAN & MANAGING DIRECTOR

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M R SIVARAMAN NON-EXECUTIVE DIRECTOR
SHIV S SHARMA NON-EXECUTIVE DIRECTOR
T K CHOUDHARY NON-EXECUTIVE DIRECTOR

PRODUCTS OF COMPANY:
Parle Agro Company deals in number of products in India
as well as in other countries and its products are mainly divided into 3 segments i.e. Beverages,
Water and Foods. The products are frooti, parle g, appy fizz, bailey, melody, krack jack, hippo,
mango bite, Monaco and etc.It has a very reputed image in the minds of the consumers because
of its product quality. The following are some of the most reputed products of the company
which captured a huge share in the market which are explained in detail.
PARLE - G:



Parle-G or Parle Glucose biscuits, manufactured by Parle
Products Pvt. Ltd, are one of the most popular biscuits in India. Parle-G is one of the oldest
brand names as well as the largest selling brand of biscuits in India. For decades, the product was
instantly recognized by its iconic white and yellow wax paper wrapper with the depiction of a
young girl on the front. Parle-G has been a strong household name across India. The great taste,

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high nutrition, and the international quality, makes Parle-G a winner. No wonder, it's the
undisputed leader in the biscuit category for decades.
Parle-G is consumed by people of all ages, from the rich to the poor, living in cities & in
villages. While some have it for breakfast, for others it is a complete wholesome meal. For some
it's the best accompaniment for chai, while for some it's a way of getting charged whenever they
are low on energy. Because of this, Parle-G is the world's largest selling brand of biscuits.
Launched in the year 1939, it was one of the first brands of Parle Products. It was called Parle
Glucose Biscuits. The incredible demand led Parle to introduce the brand in special branded
packs and in larger festive tin packs. By the year 1949, Parle Glucose biscuits were available not
just in Mumbai but also across the state. It was also sold in parts of North India. The early 50s
produced over 150 tons of biscuits produced in the Mumbai factory. Looking at the success of
Parle-G, a lot of other me-too brands were introduced in the market. And these brands had names
that were similar to Parle Glucose Biscuits. This forced Parle to change the name from Parle
Glucose Biscuits to Parle-G. Originally packed in the wax paper pack; today it is available in a
contemporary, premium BOPP pack with attractive side fins. The new airtight pack helps to keep
the biscuits fresh and tastier for a longer period. Parle-G was the only biscuit brand that was
always in short supply. It was heading towards becoming an all-time great brand of biscuit.
Parle-G started being advertised in the 80's.
It was advertised mainly through press ads. The communication spoke about the basic benefits of
energy and nutrition. In 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.
The goal was to spread joy and cheer to children and adults alike, all over the country with its
sweets and candies. Since then, the Parle name has spread in all directions and has won
international fame. Parle has been sweetening the lives of people all over India and abroad. Apart
from the factories in Mumbai and Bangalore, Parle also has factories in Bahadurgarh, Haryana
and Neemrana, Rajasthan. These are the largest biscuit and confectionery plants in the country.
Additionally, Parle Products also has 10 manufacturing units and 75 manufacturing units on
contract.
The company's slogan is G means Genius. The name, "Parle-G", is derived from the name of the
suburban rail station, Vile Parle which in turn is based on village Parle in olden days (there is
also area called Irla nearby where the Parle Agro production factory is based).
APPY FIZZ:

17. Page 17


Appy fizz is very unique in taste as it has the flavour of apple and also very
yummy and tasty, its taste is sweet and decent, and don't have so much of gas which sometimes
makes the soft drinks pathetic, it’s very light and likable by girls also, it’s also a good and
effective health drink as after you had it you will felt some energy and also cheaper than the
other energy drinks, its packing is very unique as its bottle shape and its looks makes it stylish
and more attractive and also you can use the bottle for household purpose after drink it. Parle
agro created the niche to enter soft drink market by launching its experimental soft drink i.e.
appy fizz. This soft drink is soft drink and also know as energy drink though it cost less
compared to another energy drinks. Parle made the unique packaging along with the unique taste.
The taste of apple aerated drink is worth and value for money.
This twist is well accepted in market by youngsters as a energy drink and as a flavor for
cocktail-drinks. Applying vodka with appy gives you an awesome taste you need not to buy the
costly flavored vodka just buy appy. Not just an apple juice, it’s refreshing, enlightening and
delicious. Appy fizz is the best product by parle agro for me, as it is a complete blends of so
many things it has the pure taste of appy. it is not like all the common drinks which we drink, it
is aerated yet taste natural, i am an apple fan, its taste is so delicious and mesmerizing that I can’t
resist appy fizz, its best when drunk chilled in hot and sizzling summers, appy fizz is the perfect
drink if you are avoiding the summer’s, it has no side effects and is lot healthy then any other
aerated drink.
KRACK JACK:

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Introduced in circa 1972, the Parle Krackjack Biscuits were India’s
first original sweet and salty biscuits. Can be enjoyed anytime, either with a cup of tea, coffee or
milk, these Parle Krackjack Biscuits have a taste that cannot be matched. Parle Kracjack Biscuits
is awesome because its sweet and salty flavor is delicious. its price is reasonable and is available
in a very Quite packaging .its ingredients are natural .Parle krackjack biscuits is very crispy and
light to eat. I like to eat it very much with morning and evening tea. Parle krackjack biscuit has a
taste quite different from regular chocolate biscuits. Also they are quite light to eat. Best option
for people who want to have something other than sweet biscuits.

FROOTI :

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Frooti is the largest-selling mango flavored drink in India. It is
the flagship product of and the most successful drink offered by Parle Agro India Pvt.
Ltd. in India and Parle Agro Nepal Pvt. Ltd. in Nepal. Frooti was launched in 1985
in TetraPak packages. It is also now available in PET bottles and rectangular shaped packs.
Frooti is exported to the United States, Canada, the United Kingdom, the United Arab Emirates,
Saudi Arabia, Malaysia, Maldives, Singapore, Thailand, New Zealand, Australia, Mozambique,
Ghana, Malawi, Zambia, Nigeria, Tanzania, Japan, Ireland, etc. Frooti is currently endorsed
by Shah Rukh Khan, in India. Frooti is offered in size variants: 1 litre (35 imp fl oz; 34 US fl oz),
250 ml (9 imp fl oz; 8 US fl oz) and 200 ml (7 imp fl oz; 7 US fl oz) Tetra Pak. A consumer
study revealed that the consumers needed a recap bottle that didn't exist in the mango drink
segment. Parle Agro considered the consumer requirement strongly and launched Frooti in a new
hygienic hot fill PET bottle, making it the first mango drink to be offered in the PET bottles.
1985 when Parle Agro decided to enter the fruit beverage space; a mango drink was the natural
choice. "Indians' love for the fruit is well known and when we decided to get into the fruit juice
business we were sure it will be a mango drink," says Prakash Chauhan, chairman, Parle Agro. A
product that could satiate the Indian consumer's craving for mango beyond the season of plenty.
Parle Agro partnered with DaCunha Communications to give birth to Frooti. The launch budget
for Frooti was approximately Rs 20 lakh and most of it was spent on TV communication.
While the "Mango Frooti....fresh n juicy" line was a big hit, Sylvester da Cunha, chairman,
DaCunha Communications says, "A mango drink was an immediate hit, but the hero of the story
was the pack." Tetra packs were unknown to the Indian subcontinent, "Cold drinks were sold in
glass bottles to be returned after consumption. But you could carry the tetra pack with you, it was
a new thing to do," says Mr. Chauhan. Nadia Chauhan, joint MD and CMO, Parle Agro recounts

20. Page 20

the tale. "We had seen tetra packs when we had traveled internationally and decided to bring in
that to launch Frooti," she says. Luckily for Parle Agro DaCunha's used to work with Amul who
were already using tetra packs for their milk products. Soon Parle Agro got tetra pack on board
and rest as they say is history. Even today Parle Agro remains the largest customer for tetra pack
in India.

BAILEY SODA:



Parle Agro, a leading player in the Indian food and beverage industry,
expanded its product portfolio by venturing into the soda category.
Nadia Chauhan, joint managing director and CMO, Parle Agro, said, “The expansion into the
soda category is in accordance with our growth strategy for the beverage division. With Bailey,
packaged water already well established in the market, introducing Bailey Soda is a natural
extension of the brand. It balances out the brand portfolio as soda consumption goes up in winter
which is a lean period for the water industry.
HIPPO :

21. Page 21





Hippo is our foray into the Foods market. Hippo, the mascot of the brand,
has a simple belief. Hunger is the root cause of all evil, and therefore, nobody should go hungry.
In this endeavor, Hippo recently launched its Namkeens range in select markets, and will soon
spread its presence across the country.

Hippo Nankeens’ is an assortment of traditional snacks from various parts of India. Within four
years of its launch, Hippo has been rated amongst the top three food brands in the country.
Hippo's marketing effort has also been applauded by marketers around the world and has become
a case-study across prestigious business schools for its innovative digital strategy

PROFIT COMES FROM PHILOSOPHY :

At Parle Agro, it's not just about the business. It's how we go
about it. It's about the people. It's about the culture and ethics. It's also about sustainability and
social responsibility. Our philosophy is built around our need to lead, our need to innovate, and
our need to make the world a better place with a little contribution from us.

GENERIC STRATEGY USED BY PARLE AGRO COMPANY :

22. Page 22

Parle Agro has started its product line to cater
to demands of every customer. It has various packaging schemes and sizes. The various
strategies which have helped it to achieve its image after isolation from Parle Products are: Cost
leadership

the companies that attempt to become the lowest-cost producers in an industry can be referred to
as those following a cost leadership strategy. Parle Agro has good profits recorded for some of
its products like Frooti, as these are not much differentiated but the company tries to differentiate
it and charge a standard price for it. This strategy places emphasis on cost reduction in every
activity in the value chain. However, due to spending on advertisement and creating
differentiation in the minds of customers its cost leadership is not there. Example: If we look at
the prices of Frooti, Bailley, Hippo, we will find that their prices are affordable with no
degradation in the level of quality. Parle Agro has penetrated to rural areas with these prices. Its
products are available at every store due to its pricing scheme suitable to all. Differentiation

Differentiation helps a company to charge a premium amount for its product and services. It
creates a different image of the product in minds of customers through which they recall it as
something different. Differentiation can be in many terms some of them includes better service
levels to customers, better product performance, a theme associated with product, etc. in. It has
made its product available to almost every store. Parle Agro has attempted to create this
differentiation in the minds of customers. Parle Agro has diversified into packaging drinking
water and has been successful so far. Its customers include companies in the beverages, edible
oil, confectionery and pharmaceutical segments. It has advertised Frooti with various taglines:
Mango Frooti, Fresh and Juicy.


SWOT ANALYSIS OF COMPANY:

23. Page 23

A SWOT analysis (alternatively SWOT matrix) is a
structured planning method used to evaluate the strengths, weaknesses, opportunities and threats
involved in a project or in a business venture. A SWOT analysis can be carried out for a product,
place, industry or person. It involves specifying the objective of the business venture or project
and identifying the internal and external factors that are favorable and unfavorable to achieve
that objective. The following discussed are the SWOT analysis of the company.
Strengths :
 Parle brand.
 Diversified product range.
 Extension of distribution network.
 Low and medium pricing strategy.
Weakness :
 Dependence on retailers and stores.
 Dependence on Parle-G brand
 Lack of schemes for retailers and distributors.
Opportunities :
 Estimated annual growth of 20%.
 Changing consumer preference.
 Increasing demand for sugar free and diet biscuits.
Threats :
 Hike in cost of raw material affecting cost of production.
 Increasing distribution cost.
 Competitive local bakery products.
 Entry of various new entrant, ITC and etc.
Growth strategy of the Company:
A growth strategy entails introducing new products or
adding new features to existing products. Sometimes, a small company may be forced to modify
or increase its product line to keep up with competitors. Otherwise, customers may start using
the new technology of a competitive company. For example, cell phone companies are
constantly adding new features or discovering new technology. Cell phone companies that do not
keep up with consumer demand will not stay in business very long. the growth of the company is
mainly due to team work in the company and it has been elaborated below:

24. Page 24

 In a bid to accelerate employee performance, Parle Agro Ltd has embarked on a strategic
counseling programme.

 To enhance the contribution of employees towards business, the company has also
deployed a human resource (HR) initiative termed shop adoption.

 These are some of the new approaches that we have adopted to motivate employees to
increase their output.


 In fact, these are a departure from the conventional initiatives of merely bestowing
monetary increments and rewards to sustain the performance and motivation levels of
employees.

 Further, the management affirms that the moves are based on the understanding that the
performance aspect of the personality is directly linked with other human aspects of the
individual that go beyond mere monetary rewards.

 The company is conducting a programme termed µregular visits by psychologists.

 The company endeavor here is to conduct compulsory interface between team members
and qualified psychologists with the entire initiative being taken up by their HR
department.

 Accordingly, each member is exposed to the psychologist to whom they can narrate
experiences from their personal and professional lives and ask for remedies in the event
of a problem

 A confidential report is then given to the HR department about every team member
consisting of the personality type of the employees and the specific factors that would
optimize their performance.

 Such interventions also enable the company to extend the self aspect of a human being to
the work that has been assigned to them, so as to create a sense of ownership in whatever
the person does.


 A HR concept shop adoption, where the attempt is to directly integrate people
management with business enhancement conceived.

 Accordingly, all Parle Agro employees in offices all over India are asked to adopt at least
three shops in their respective residential areas and make sure that the shops stock Parle
Agro products at all times.

25. Page 25

EHTICS AND VALUES:
Since 1929, Parle Products, with its wide platter of biscuits and sweets is also
actively engaged in changing and uplifting the social face of India. As part of its Corporate Social
Responsibility Policy, Parle is keenly involved in the overall development of the younger generation, with
a focused endeavor to build the New Face of India and spread happiness and joy all over.
Some of our best habits, as we said, are also our oldest. Many of them date back to the last decade of the
19th century. It was in the 1880’s that the late Mohanlal Dayal came to Bombay from his village Pardi, in
the district of Sprat, to work as a dusting boy at a silk merchant’s. What a long way that bright little boy
came! First, the hard apprenticeship and the graduation to Master Cutter, then the elite tailoring
establishment that eventually developed into a wholesale business to finally, the new business in
confections and biscuits. Always, the accent was on self-sufficiency.
Mohanlal Dayal was not just a progressive and astute businessman. He never gave in to the sense of
indifference that often comes with the commercial outlook. All through his life, he was deeply conscious
of his duties towards society and the community. He built the Shri Mohanlal Dayal Prasuti Graha and
General Hospital in Pardi, which is maintained through charity trusts set up by him. The Shri Mohanlal
Dayal Sanatorium and Hostel at Matunga in Bombay is another such institution. In his memory and after
his example, his sons have donated significant sums to set up the Chauhan Institute of Science at Vile
Parle. Parle Centre of Excellence, as an institution, is dedicated to enriching the lives of people by
conducting various cultural programs across all regions to facilitate the all round development of children.
Every year, Parle organizes Saraswati Vandana in the state of West Bengal during the festival of
Saraswati Puja, inviting schools from all across the state to participate. The event is one of much fanfare
and celebration, keeping alive the culture and traditions.
The involvement in cultural activities has seen the inception of Golu Galata in Tamil Nadu, held during
Navratri. It provides all the members of a household a platform to showcase their creativity and be judged
by eminent personalities. Thousands of families participate and celebrate the occasion on a grand scale.
These events give us a chance to interact with children on a one-to-one basis, and promote our belief of
fun and health for the whole family.

PARLE AGRO BUSINESS STATEMENT:
"We are in the business of refreshing India with our
products, refreshing the market with new categories and refreshing ourselves through
innovation."

PARLE AGRO VISION:
"To be the leaders in our business. We will stand apart from the competition by
being the first in the market to innovate."

26. Page 26


PARLE AGRO MISSION:
"We will be the leaders in our business by - maintaining high
quality, introducing new and innovative products, reaching every part of India, remaining
customer-centric, constantly upgrading our knowledge and skills."

CONCLUSION:
I want to conclude my project by saying that GROWTH STRATEGY is based on
4 P’s such as Product, Place, Price and Promotion. Parle Agro Company had made huge profits
by their growth strategy by parle g, frooti, hippo, bailey, monaco and etc. in India as well in
foreign countries. The strategy formulation for growth is driven by the vision and motivation of
the entrepreneurs. Also the motivation of the entrepreneur governs the attitude and decision on
growth and the entrepreneurs may have different growth parameters to address. Entrepreneurs
start venture with some innovation and growth plan, the environment in which the organisation
operates poses different kind of challenges depending of the industry life cycle and industry
structure.

The Parle name symbolises quality, health and great taste. Constantly innovating and catering to
new tastes Parle-G has built its reputation. Company is spreading its wings and widening its
business horizontally to reach and serve customers in the year ahead.

The study is oriented towards the concept of different brands offered by Parle Agro Company.
Parle Agro Company is now lagging in services to retailers because of improper supply and
distribution in some areas. Competitors are taking advantage of this point. Parle Agro Company
should take into consideration the opportunities and threats as discussed above. This will help the
company to maintain its brand image for long time.