Marketing Concepts: Product Lifecycle

ITM Batch 13B

GROUP # 3
MANISH 77
MANOJ 78
SACHIN
SREEJA
RATISH

1. PRODUCT LIFE CYCLE
PARLE-G
GROUP # 3
MANISH 77
MANOJ 78
SACHIN
SREEJA
RATISH

2. PRODUCT LIFE CYCLE
PARLE –G

3. Points:
Introduction
History & Product range
Basics of PLC
Application of PLC concept to PARLE –G
Introduction Phase of PARLE-G
Growth Phase of PARLE-G (Turnover,Finance
Details,Competition & Challenges.)
Conclusion

4. Inroduction –PARLE G
Largest Selling Brand in world.
Identified with baby on pack,
affectionately called as Parle-G baby
Winner of 8 gold and 11 silver ‘monde
selection awards
Liked by all age and income groups
40% share of biscuit market and
a 15% share of confectionary

5. HIDUSTAN KI TAKAT - PARLE G
Largest manufacturer of biscuits since
80 years
Quality, nutrition and great taste.
More than 1500 Wholesalers an 1.3
Million retail outlets
Faith and trust
Example of marketing brilliance for
Competitors
65 % of Glucose Biscuit market.

6. Product Range
Biscuits
Parle – G
Milk Shakti
Parle - Magix
Krackjack
Monaco
Digestive Marie
Hide & Sick
Mayfair Cookies
Confectionary
Melody
Mango bite
Poppins
Kismi Toffee
Orange Candy
Must Bites
Sixer

7. Product Life-Cycle Strategies
PLC StagesPLC Stages
Product
development
Introduction
Growth
Maturity
Decline
•Begins when the Begins when the
company develops a company develops a
new-product ideanew-product idea
•Sales are zeroSales are zero
•Investment costs are Investment costs are
highhigh
•Profits are negativeProfits are negative

8. PLC - Introduction
basic product
Use cost-plus basis
Selective
distribution
Awareness among
early adopters
Heavy expenditures
Low sales
High cost per
customer acquired
Negative profits
Innovators are
targeted
Little competition

9. PLC – Growth Stage
Product Extensions
Penetration Pricing
Intensive Distribut.
Build Awareness
Advertising is high
Reduce expenditure
on sales
Rapidly rising sales
Average cost per
customer
Rising profits
Early adopters are
targeted
Growing
Competition

10. PLC – Maturity Stage
Diversify brand and
models
Price match to beat
competition
Intensive
distribution
Encourage brand
switching
Sales peak
Low cost per
customer
High profits
Middle majority are
targeted
Competition begins
to decline

11. PLC – Decline Stage
Phase out weak
items
Cut price
Selective
distribution
Phase out
unprofitable outlets
Reduce to level
Reduce to minimal
level
Declining sales
Low cost per
customer
Declining profits
Laggards are
targeted
Declining
competition

12. Introduction Phase - Parle
Founded in 1929 as a Confectionary Comp
Decade later Introduced Biscuits
Imported Biscuits shipped by British
Introduced better glucose biscuits
Initially sold only in Suburbs of Mumbai
Wax wrappers for packaging

13. Growth phase PARLE
% Market Share
40
37
7
16
Parle
Britania
ITC
Others
Total Market(Crores)
1600
1420
280
640
Parle
Britania
ITC
Others
Total Market – 4000
Crores
Total Market Growth 10
to 12 % per annum
Parle holds 40% Market
share
Large unorganized
sector
Indians eat 0.48 KG and
Americans 4kg Biscuits
Growth phase
*Source ORG-MARG

14. Growth Phase - Parle Cont.
Glucose Market
65
28
7
Parle
Britania
others
Turn over %
50%
35%
15%
Parle G
Other Bis.
Confec.
Parle-G Largest brand
in world
65 % of Glucose Market
50 % to Turnover
 Large consumption in
rural market
 12 to 15 % Growth
Low Margin
High Volume
*Source ORG - MARG

15. Growth Phase - Parle cont.
High Penetration in Market
low price ,low margin and high volume game
Brand Repositioning
Addition of taste Variants (Magix ,Milk shakti)
Addition of weight variants (25 gm to 1kg)
0
500000
1000000
1500000
20012007
Increase In Retailoutlets
Retail
Outlet
%SProduct
H
M
L
Hide n Seek ,Cheeslings
Marie, Monaco , Krack Jack
Parle G, Milk Shakti
L
M
H
*Source ORG-MARG

16. Growth Phase – Competition
Parle G market leader in Glucose sector
Britania leader in terms of value & in Mid & High Sec
ITC fastest growing brand (7 %)
Others: Priya gold, Bakeman, Nesle and Kwality.
Butter CreamSunfeast MSunfeast.gl.ITC
Good DayMarie GoldTigerBritania
Badam pistaPriya GoldPriya SnacsSurya
Hide & SickMarie Dig.Parle GParle
Cream(H)Marie(M)Glucose (L)
*Source ORG-MARG

17. Growth Phase – Challenges
Retailoutlets (Millions)
1.33.3
1.8
Parle
Britania
ITC
0
1000
2000
ParlITC
Advertising
Turnover
Advert.
Increased penetration
level from comp.
Increased Advert.
Variants and new
Innovative products
High segment variants
Celebrity Brand
ambassadors
*AC Nielsen retail sales audit

18. Conclusion
PLC analysis – very IMP tool in the hands of
marketer.
Better understanding in managing profitable
products & eliminating unprofitable one.
As products moves from one stage to another
in PLC- Marketer evaluate and adjust
strategies for promoting ,pricing &
distribution of the product.

19. Bibliography
www.parleproducts.com
www.indiainfoline.com
www.managementparadise.com
Wikipedia
Parle products-(Brand Manager-MrMayank. )
Marketing Management-Philip Kotler