Most Indians have grown up hearing the name Parle – G a popular brand of glucose biscuits sold in the county. Parle Products which owns the brand is a food and confectionery company headquartered in Mumbai, India. Parle Products is a privately owned company which sells biscuits, chocolates, rusk, snacks, and pulses.
The conglomerate also owns the Parle Agro brand under which it sells agricultural product based foods. As of the year 2015, the company had sales to the tune of INR 8300 million and is one of the leading food companies in India. The company owns a host of popular brands and has been able to get a lot of customer loyalty through their popular jingles and advertisements and a highly innovative promotion strategy.
Strengths in the SWOT analysis of Parle – G
The following are the strengths of Parle are:
- Popular Brands: Parle owns some of India’s most popular brands like Parle –G, Hide & Seek, Melody, Poppins, and Kacha Mango Bite. Parle Agro another division of the conglomerate owns the popular mango drink Frooti.
- Indian connection: Most of the players in the food segment are multinationals who hardly connect to the Indian sentiments not understand the local tastes. Parle which has been in the business from the year 1929 has been deeply connected to Indian customers and know their tastes really well.
- Customer Satisfaction: Through the taste, quality and texture of the products that they sell Parle have been able to satisfy customers across India. Most of their products are household names today.
- The desi image: Right from Parle –G the company has always depended on its desi image to sell its products. Their advertisement campaigns are always focused on showcasing Parle – G as a brand that is connected to the patriotic sentiments of India. Many of their products such as the Kacha Mango Bite or Frooti have been developed to suit Indian taste buds.
- Pricing: Parle Products were primarily catering to the economy segment and their signature products Parle – G was sold at al less as INR 5. As competition increased the company also started launching more products which are priced higher and cater to premium segments such as cheeselings of the Parle G – Gold.
Weaknesses in the SWOT analysis of Parle – G
Some of the key weaknesses ofParle Productsare :
- Premium segment: Parle’s products have always catered to the economy segment through their signature product Parle –G. However with increased competition from Brittania and ITC the company is trying to move into the premium segment which is proving to be a huge challenge.
- Too many product launches: ParleProducts have been launching too many products in the mast year especially in the premium category with the result that customers are getting confused for choice. In a matter of 24 months, they have launched almost 18 different variants of different brands. The repeated product launches are proving to be costly for the company.
- A balance between economy and premium segments: Parle has always been targeting mass markets in the confectionery segment through Parle – G. However, with more disposable income and preference for western tastes the Indian consumer have started preferring the premium biscuits. This is creating a difficulty in balancing the economy and premium category and this is causing even brand confusion in the mind of the customer.
- Fluctuating raw material costs: The raw material costs are fluctuating excessively there is the shortage of many of the ingredients. The prices, however, are to be kept at the lowest possible levels since the margins are low.
Opportunities in the SWOT analysis of Parle – G
Some of the opportunities include :
- Increased tendency for snacking amongst Indians: Indians have started preferring more snacks and they also consume snacks like biscuits and namkeen even during breakfast and tea time. This increases the scope for introducing more snacks into their product portfolio.
- Steep growth potential in emerging economies: The countries like China and India are seeing a rebirth of trends that were once considered hot in the West. This is expected to create a surge in the demand for snacks and confectioneries.
Threats in the SWOT analysis of Parle – G
Some of the threats include:
- Stiff competition: In addition to multinationals like Procter & Gamble, Nestle, and Unilever, Parle Products are also facing competition from Indian players like Brittania, ITC etc.
- Government policies: The government introduced financial reforms like the GST which has escalated the average costs of the company. Demonetisation also created a lot of turbulence in the business sector.