Parle G is one of the largest selling biscuit brands in the world. It is simple in its taste and simple in its packaging. But this simplicity has taken the brand to great heights. There are many positives which make Parle G the brand that it is. It is easily accessable to a wide population and its taste is addictive because of its sweetness.
Here is the SWOT analysis of Parle G
Strengths in the SWOT analysis of Parle G
Most widely distributed Indian biscuit brand – Parle G is without a doubt the most widely distributed Indian biscuit brand. It crossed Rs 5000 crore in retail sales a couple of years back and it is increasing since then.
Largest sold biscuit in the largest market – India is the largest market for biscuits across the world and has a major market share of the biscuits segment. So within India, Parle G has the highest market share. Quite simply, this is the strongest advantage for Parle G because it is the largest sold biscuit brand in the largest market for biscuits.
Amazing Packaging – Parle G is appreciated for its packaging because it has small 5 rs variants as well as large variants which package 10 biscuit packets together. It even has a small 2 rs packaging. When there were Floods in Mumbai or when there are floods in other areas, Parle G biscuits are the first ones to be distributed because of their small packaging and easy distribution advantage and because of their glucose content.
The parle Girl – The Parle Girl is one of the most famous brand mascots because it belongs to one of the most famous brands of the country.
Trusted brand – In 2014, Parle G was ranked the 42nd most trusted brand in India. Considering a population of 1 billion and rising, thats saying a lot.
Parle’s market share – 28% of the total biscuit market of India is covered by Parle which includes Parle G, Milano and others. Parle forms 50% of this 28% share of its mother brand Parle. Hence it is safe to assume that Parle G has a whopping 14% market share in the Indian biscuit market.
Exports – Parle G is Exported to SAARC countries & to US, UK and Europe as well as to parts of Africa. Thus the export segment of the brand is very strong too.
Weaknesses in the SWOT analysis of Parle G
Missing premium range biscuits – Parle G is missing the essential part which can make it an all round brand – Premium range biscuits. Although Parle G is the single widest selling biscuit brand, a premium range biscuit will help Parle attract a lot of inroads.
Marketing is very less – Marketing of Parle G is very less. It came as a product placement during the “Shaktimaan” series. Alternatively, there have been ATL ads or some BTL involvement. However, the majority market has already adopted Parle G biscuit. The marketing might be less because of cost constraints but a bit of marketing will help the brand.
Manufacturing bottlenecks – Massive distribution requires massive manufacturing and this creates problem if its own with consistent manufacturing bottlenecks coming up. Because of the huge demand, Parle G has to cater to exports as well as domestic sales.
Regional players – There are many regional competitors for Parle G which affects the brand in regional markets.
Opportunities in the SWOT analysis of Parle G
Increase marketing communications – A first step which Parle G can take is to increase its efforts of Marketing communications. It needs something unique like the AMUL girl which helps people to connect with the brand even further. This need not mean a lot of expenses. Just mind share and retention is needed from time to time.
Start a premium range – Parle G can start a premium range or a mid tier separate range to have an even better market share. But doing this can affect its mass range biscuits as well so whether to focus or diversify is a call Parle G needs to take.
Use distribution for more mass products – Parle G can use its distribution potential for other products which also attract the customers. Distribution is an asset for Parle G and it should use this asset to maximum advantage.
Tie ups with schools and hospitality segment to increase sale – There are many schools which need breakfast at low prices and Parle G is one component which can be a part of this because of the glucose component of the biscuit. Thus, tie ups with the schools / education as well as hospitality segment like Hotels can help the brand in achieving more sales.
Widen manufacturing base to more countries – Parle G can widen its manufacturing base by having a manufacturing plant in countries which are good markets in the future.
Threats in the SWOT analysis of Parle G
Consistent competition – Parle and Britannia are evergreen FMCG competitors and ITC is close behind. Similarly there are other national and regional players also vying for a footprint in the biscuit market.
Rising Income – Because of the rising income, Parle G becomes outdated when someone can afford other biscuits. This is a threat to the brand in the long term.
Rising Costs – Parle G’s major selling point is that it is cheap with a good taste. However, with rising costs of distribution and manufacturing, the high price of the final product might become a threat to the brand. Although on the other hand, if the price rises for Parle G, it will rise for all other biscuit brands. Nonetheless, the rising costs of the product is to be considered as a threat to revenue and margin for any brand.
Mature market – There comes a time when people become bored by a taste and they want to try new tasting things. Parle G is soon reaching the mature market stage where everyone knows the taste of a Parle G biscuit and might want to try something new. Hence, expansion to other territories is very important for the brand.