Limited (Parle), a leading Indian biscuit producer, had the distinction of producing the largest selling glucose biscuit brand by quantity on earth, the Parle-G. Parle-G biscuits sold for around US$1 per kilogram and as very few processed and prepared-to-eat foods were accessible at this price point, Parle-G was strongly associated with offering value for money (VFM). A looming issue in this brand group for Parle was that the input prices of two major raw materials for the Parle-G biscuits (which collectively accounted for 55 per cent of their input costs) had increased enough in the past 18 months to fall gross profits from 15 per cent to less than 10 per cent.
Parle-G Case Study Solution
Pressure to restore margins led Parle to think about a price increase yet a previous effort had caused dramatic reduction in sales. Parle subsequently addressed reducing packaging prices, reducing supply chain costs and increasing input prices by lessening the weight of the package, franchising generation. Parle could not ignore the deeply entrenched awareness of VFM when formulating both short- and long term marketing plans to keep Parleg's success in the marketplace. These strategies needed to address segmentation, positioning and altering Indian demographics when contemplating a possible price increase for Parle-G biscuits.
PUBLICATION DATE: October 21, 2010 PRODUCT #: 910A22-PDF-ENG
This is just an excerpt. This case is about GLOBAL BUSINESS
Related Case Solutions & Analyses:
Dave Armstrong (B)
Sunshine Villas
Manufacturers Hanover Corp.: Customer Profitability Report
The Rise and Fall of Nokia
Best Buy’s Turn-Around Strategy (2013)
McDonald’s (in 2013): How to Win (Again)?
UBER: CHANGING THE WAY THE WORLD MOVES
Citizen-Centered Cities; Volume I: Case Studies of Public Involvement”
GLOBALIZING CONSUMER DURABLES: SINGER SEWING MACHINE BEFORE 1914
WIENER STAATSOPER (A): STREAMING FROM THE VIENNA OPERA HOUSE
