How PARLE G Became World's No.1 Biscuit | Parle G Case Study | DEEPAK BAJAJ

Summary

The video script narrates the remarkable journey of Parle G, a biscuit brand that has maintained its price at ₹5 for decades despite inflation. It discusses the brand's strategic location advantages, economical material procurement, and consistent quality that contributed to its success. Parle G's ability to remain affordable while driving sales and revenue is highlighted, along with its role as a sales driver for Parle's other profitable products. The script also emphasizes the importance of not relying solely on one successful product, focusing on controllable factors, and maintaining brand value for long-term profit.

Takeaways

• 💰 Despite inflation over the past 20-30 years, Parle-G biscuits have consistently remained priced at ₹5.
• 🏆 Parle-G is the world's best-selling biscuit brand, with revenue growing from ₹5,000 crore in 2013 to over ₹16,000 crore in 2022.
• 📜 Parle-G started as a small factory in 1880 making orange candies and launched its first biscuit, Parle Gluco, in 1939.
• 🎯 Parle-G's success is attributed to its affordability and good taste, making it popular among all age groups and helping it outperform British biscuits.
• 🔄 The company rebranded Parle Gluco to Parle-G in 1987 to distinguish it from similar competitors' products.
• 🌍 Parle-G operates ten factories across India, strategically located to minimize transportation costs and reach urban and rural markets effectively.
• 🤝 Parle-G uses contract manufacturing with local vendors, ensuring cost-effective production while maintaining quality standards.
• 📉 To keep prices stable at ₹5, Parle-G reduced the biscuit's weight from 100 grams to 55 grams over time.
• 🔗 Parle-G serves as a 'loss leader,' driving sales of other profitable products like Monaco, Krackjack, and Frooti under the Parle brand.
• 💡 Parle-G’s strategy emphasizes brand value and controlled costs over immediate profits, teaching valuable lessons for business success.

Q & A

What has remained at ₹5 for the past 20-30 years despite the general rise in prices?

The price of Parle G biscuits has remained at ₹5 for the past 20-30 years, despite an increase in the prices of other goods and services.

What was the revenue of Parle G in 2013 and how much was it in 2022?

In 2013, Parle G's revenue was 500 billion rupees, and by 2022, it had increased to more than 1600 billion rupees.

What was the initial product made by Mohanlal Dayal's factory in 1880?

Mohanlal Dayal's factory initially made orange candy and not biscuits.

When did Parle Company launch its first biscuit and what was it called?

Parle Company launched its first biscuit in 1939, which was called Parle Gluco.

What made Parle Gluco biscuits a hit among consumers?

Parle Gluco biscuits were affordable and had a great taste, making them popular among consumers of all ages.

Why did Parle G biscuits become a challenge for competitors to replicate?

The biscuits became so popular that competitors found it difficult to convince consumers that their similar biscuits were the original Parle Gluco.

What strategy did Parle G adopt to ensure the availability of its biscuits across different regions?

Parle G used contract manufacturing with local manufacturers to ensure the biscuits were available in remote locations with minimal transportation costs.

How has Parle G managed to keep the price of its biscuits at ₹5 despite increasing costs?

Parle G has managed to keep the price at ₹5 by reducing the quantity of biscuits in each pack without increasing the price, thus maintaining its affordability.

What is the significance of Parle G's 'sales driver' strategy in maintaining its market position?

The 'sales driver' strategy involves Parle G biscuits acting as a pull product that attracts customers, who then also purchase other, more profitable products from Parle Company.

How has Parle G's packaging strategy contributed to its success?

Parle G has maintained its old, simple, and cost-effective packaging over the years, avoiding unnecessary expenses that could increase the product's price.

What are the three key lessons that individuals can learn from Parle G's success according to the script?

The three key lessons are: 1) Do not be dependent on one successful product; 2) Focus on controllable factors and minimize costs; 3) Maintain brand value for long-term profitability.