In 2009, Parle Products Pvt. Limited (Parle), a leading Indian manufacturer of biscuits, had the honor of producing the best-selling brand of glucose biscuits in the world by volume, Parle-G. Parle-G biscuits sold for about U.S. $ 1 per kilogram, and as very few processed and ready-to-eat products were available at that price, Parle-G was closely associated with the offer value for money (VFM). Impending problems in this brand category for Parle was the fact that the prices of raw materials from the two main raw materials for the Parle-G biscuits (which account for 55 percent of their value inputs) rose enough in the past 18 months to reduce the field from 15 percent to less than 10 percent. Pressure to restore fields led Parle to consider price increases more previous attempt caused a sharp decline in sales. Parle later turned increase production costs by reducing the weight of the package, franchise production, reducing supply chain costs and reduce packaging costs. Parle could not ignore the deep-rooted perception of VFM in the development of short-and long-term marketing plans to maintain the success of Parle-G in the market. These plans are required to address segmentation, positioning, and changing demographics Indian when considering potential rise in Parle-G biscuits. "Hide
by Ramasastry Chandrasekhar, Miranda Hood Source: Richard Ivey School of Business Foundation 16 pages. Publication Date: October 21, 2010. Prod. # 910A22-PDF-ENG
Related Case Solutions & Analyses:
Australia: The Riches and Challenges of Commodities
OppenheimerFunds and Take-Two Interactive (A)
Buildings and Energy
Accounting for Employee Stock Options
Duckworth Asset Management Inc.
Primo Benzina AG
Aubrey McClendon’s Special Incentive Compensation at Chesapeake Energy (A)
Credit Suisse Group: Managing Equity Research as a Business
Victoria Chemicals PLC (B): The Merseyside and Rotterdam Projects
Unintended Economic Implications of Financial Reporting Standards
