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Biscuit industry 3rd deliverable v3

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This document summarizes information about the biscuit industry in India, including distribution channels, major players like Parle and Britannia, and strategies for improving rural distribution. It notes that the FMCG supply chain in India is very long, with up to 5 intermediary levels between manufacturers and consumers. Parle uses a mix of owned factories and contract manufacturing, along with dedicated distributors and company-run trucks. Britannia relies on a strong network of over 600,000 outlets but could better tap the large rural market. Ways to improve rural distribution discussed include partnering with self-help groups, internet kiosks, and models like ShaktiAmma used by HUL.

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FMCGBiscuits
PRICE POINT TABLESource: Lit searches; Scribd
ENERGY POINT TABLESource: Lit searches; Scribd
Distribution channel for biscuitsSource: Lit searches; Scribd
The supply chain of products in the FMCG market in India is one of the longest supply chains an industry could really have. There are as many as 5 levels of intermediaries involved in the entire supply chain through which a product passes before reaching the end consumer.Source: Bee Management Consultancy Services Pvt Ltd report on analysis and distribution channels on various sectors, 2005
ParleParle maintains 9 mother units and 70 contract manufacturing units across the countryDistribution network (~ 5000 distributors)Distributors arrange their own transportUrbanRuralThrough the normal 5 layered distribution channelDirectly from the company:Parle trucks deliver material600gm packs are delivered from the factory only Dedicted Parle Shops which keep only Parle productsSource: Factory visit
Parle ~ Marketing history
1980's.Parle-G started being advertised Mainly through press ads The communication spoke about the basic benefits of energy and nutrition.
1989 Parle-G released its Dadaji commercial, which went on to become one of the most popular commercials for Parle-G. The commercial was run for a period of 6 years.
2002 Parle-G MeraSapnaSachHoga'Bringing the brand closer to the major consumer: ChildrenBrand Ambassadors: Hrithik Roshan & Ricky Ponting
1997PARLE G SPONSORED TELE-SERIES SHAKTIMAN Huge Success!!Parle extended this association with Shaktimaan and gave away a lotof merchandise of Shaktimaan
2002 G MANNew ambassador for Parle-GSuperhero who defeats evil
2005 : Golu Galata contest
Brand positioningG for Genius since 2004.2006-07: Changed to Hindustan kiTaakat, to assume a bigger platform as the biscuit that stands for strength (taakat) in and for India. But in early 2008, Parle-G reverted to its G for Genius line with a little twist Do Genius EkTaakat.
ITCUses FIFO method to reduce wastage of goods due to expiryKeep goods on constant move from low sales area to high sales areaCompany collects expired goods 4 times a year and destroys themITC provides the retailers with racks, hangers, etc to display the productsSource: http://www.itcportal.com/about-itc/newsroom/press-reports/PressReport.aspx?id=468&type=C&news=ITC%20foods%20growth%20spawns%20Rs%20700%20crore%20brand
BritanniaMarketing strategy includeProduct and packaging innovationsAppropriate pricingStrong distribution channel
BritanniaNo major strategic innovations in distribution channelsMore than 600000 outlets across the countryBritannia has maintained an excellent distribution channel in urban IndiaBut ~70% of the Indian population is in villages and Britannia needs to tap this marketWe have good strong distribution channels 50 % of our revenue comes from rural markets - Vinita BaliSource: http://www.paterson.co.in/downloads/Britannia%20Ind%20-%20Paterson.pdf
Three manufaturing plants : Greater NoidaLucknow (U.P.)Surat (Gujarat)Concentrated mainly on Nothern and central part of the country. Distribution channel consist of super stockists and distributors. 125 : Super stockists 3500 : DistributorsGreater availibilty in the Rural Market of the North.Provide biscuits to airlines,railways, food kiosks present at railway stations (300 railway stations)Priyagold
Ways to improve distribution channelPartnering with Self Help Groups in Rural India.Internet based Rural Kiosks/HubsDirect SellingMarketing and distribution model like ShaktiAmma by HULSource: http://www.oppapers.com/essays/Innovative-Distribution-Channels-Fmcg-India/120552
Referenceshttp://www.businesseconomics.in/index.php?option=com_content&view=article&id=145&Itemid=6Enterpreneur issue september 2009http://knowledge.wharton.upenn.edu/india/article.cfm?articleid=4341http://www.managementparadise.com/articles.php
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Biscuit industry 3rd deliverable v3

  • 2. PRICE POINT TABLESource: Lit searches; Scribd
  • 3. ENERGY POINT TABLESource: Lit searches; Scribd
  • 4. Distribution channel for biscuitsSource: Lit searches; Scribd
  • 5. The supply chain of products in the FMCG market in India is one of the longest supply chains an industry could really have. There are as many as 5 levels of intermediaries involved in the entire supply chain through which a product passes before reaching the end consumer.Source: Bee Management Consultancy Services Pvt Ltd report on analysis and distribution channels on various sectors, 2005
  • 6. ParleParle maintains 9 mother units and 70 contract manufacturing units across the countryDistribution network (~ 5000 distributors)Distributors arrange their own transportUrbanRuralThrough the normal 5 layered distribution channelDirectly from the company:Parle trucks deliver material600gm packs are delivered from the factory only Dedicted Parle Shops which keep only Parle productsSource: Factory visit
  • 8. 1980's.Parle-G started being advertised Mainly through press ads The communication spoke about the basic benefits of energy and nutrition.
  • 9. 1989 Parle-G released its Dadaji commercial, which went on to become one of the most popular commercials for Parle-G. The commercial was run for a period of 6 years.
  • 10. 2002 Parle-G MeraSapnaSachHoga'Bringing the brand closer to the major consumer: ChildrenBrand Ambassadors: Hrithik Roshan & Ricky Ponting
  • 11. 1997PARLE G SPONSORED TELE-SERIES SHAKTIMAN Huge Success!!Parle extended this association with Shaktimaan and gave away a lotof merchandise of Shaktimaan
  • 12. 2002 G MANNew ambassador for Parle-GSuperhero who defeats evil
  • 13. 2005 : Golu Galata contest
  • 14. Brand positioningG for Genius since 2004.2006-07: Changed to Hindustan kiTaakat, to assume a bigger platform as the biscuit that stands for strength (taakat) in and for India. But in early 2008, Parle-G reverted to its G for Genius line with a little twist Do Genius EkTaakat.
  • 15. ITCUses FIFO method to reduce wastage of goods due to expiryKeep goods on constant move from low sales area to high sales areaCompany collects expired goods 4 times a year and destroys themITC provides the retailers with racks, hangers, etc to display the productsSource: http://www.itcportal.com/about-itc/newsroom/press-reports/PressReport.aspx?id=468&type=C&news=ITC%20foods%20growth%20spawns%20Rs%20700%20crore%20brand
  • 16. BritanniaMarketing strategy includeProduct and packaging innovationsAppropriate pricingStrong distribution channel
  • 17. BritanniaNo major strategic innovations in distribution channelsMore than 600000 outlets across the countryBritannia has maintained an excellent distribution channel in urban IndiaBut ~70% of the Indian population is in villages and Britannia needs to tap this marketWe have good strong distribution channels 50 % of our revenue comes from rural markets - Vinita BaliSource: http://www.paterson.co.in/downloads/Britannia%20Ind%20-%20Paterson.pdf
  • 18. Three manufaturing plants : Greater NoidaLucknow (U.P.)Surat (Gujarat)Concentrated mainly on Nothern and central part of the country. Distribution channel consist of super stockists and distributors. 125 : Super stockists 3500 : DistributorsGreater availibilty in the Rural Market of the North.Provide biscuits to airlines,railways, food kiosks present at railway stations (300 railway stations)Priyagold
  • 19. Ways to improve distribution channelPartnering with Self Help Groups in Rural India.Internet based Rural Kiosks/HubsDirect SellingMarketing and distribution model like ShaktiAmma by HULSource: http://www.oppapers.com/essays/Innovative-Distribution-Channels-Fmcg-India/120552
  • 20. Referenceshttp://www.businesseconomics.in/index.php?option=com_content&view=article&id=145&Itemid=6Enterpreneur issue september 2009http://knowledge.wharton.upenn.edu/india/article.cfm?articleid=4341http://www.managementparadise.com/articles.php