parle g case study scribd

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By: Chandra Sekhar Ramasastry, Miranda Goode

In 2009, Parle Products Pvt. Limited (Parle), a leading Indian biscuit manufacturer, had the distinction of producing the largest selling glucose biscuit brand by volume in the world, the Parle-G.…

• Length: 16 page(s)
• Publication Date: Oct 21, 2010
• Discipline: Marketing
• Product #: 910A22-PDF-ENG

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In 2009, Parle Products Pvt. Limited (Parle), a leading Indian biscuit manufacturer, had the distinction of producing the largest selling glucose biscuit brand by volume in the world, the Parle-G. Parle-G biscuits sold for approximately US$1 per kilogram and as very few processed and ready-to-eat foods were available at this price point, Parle-G was strongly associated with offering value for money (VFM). A looming problem in this brand category for Parle was that the input prices of two major raw materials for the Parle-G biscuits (which together accounted for 55 per cent of their input costs) had risen enough in the past 18 months to decrease margins from 15 per cent to less than 10 per cent. Pressure to restore margins led Parle to consider a price increase yet a previous attempt had caused dramatic reduction in sales. Parle subsequently addressed rising input costs by reducing the weight of the package, franchising production, reducing supply chain costs and reducing packaging costs. Parle could not ignore the deeply entrenched perception of VFM when devising both short- and long-term marketing plans to retain Parle-G's success in the marketplace. These plans needed to address segmentation, positioning and changing Indian demographics when considering a potential price increase for Parle-G biscuits.

Learning Objectives

This case exposes students to the strategic complexities underlying a major pricing decision. The major learning objectives are to: enable students to appreciate that tactical decisions such as pricing are not made (or, at least, are not made effectively) in isolation of bigger picture marketing strategy; encourage students to explore the challenges surrounding the sustainability of a value-for-money positioning; provide students with the opportunity to devise both short- and long-term marketing plans.

Oct 21, 2010

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910A22-PDF-ENG

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Parle-G Success Story: A Case Study of The Bestselling Biscuits Brand

Sushree Sangeeta Behera

Parle-G is a very famous brand known for its biscuits. Parle Products Private Limited owns it. In the year 2011, a survey was conducted, and the results were quite surprising. Parle-G got to be named as the most widely selling biscuit of that year. As the brand is indigenous, this was a proud moment for the company. Parle products company claimed that they had achieved the highest sell of Parle-G in the lockdown 2020.

Starting a business and making it a worldwide success isn't easy. Parle-G is one of the oldest biscuit brands in India. The founder of this, the Chauhan family, needed a piece of great information as to what the country's people wanted in their food. Biscuit was the answer.  After British rule ended, ads featuring this biscuit got famous. The importance of advertising was recognized at those times, and this was when a future success seed was planted by this brand.

Let's know about the journey of one of India's oldest biscuit brands, and it's a success story. Parle-G is the most selling biscuits in the world. You will be surprised to know that the company didn't increase the biscuit price for the last 25 years. It's not like the company never tried it. It turned into a great protest when the biscuits cost even Rs.0.50 more.

In the year 2013, Parle-G gave a turnover of more than 5000 crores to the company. Gradually the biscuit skyrocketed to a massive turnover of 8000 crores in session 2018-20. Now the question arises– when the price of biscuits remains the same, then what makes the turnover of the company rise so high?

Parle-G - Founder and History Parle-G - Logo and Meaning Parle-G - Revenue and Growth Parle-G - Challenges Faced Parle-G - Achievements

Parle-G - Founder and History

The biscuit brand, Parle-G is owned by the Chauhan family. Parle-G is a production of the Parle Products part of the company. The owners of the company were Vijay Chauhan, Sharad, and finally Raj Chauhan. The headquarters were set up in a neighborhood called 'Vile Parle.' This was located in the Western part of Mumbai .

Historically, this brand was one of the first Indian brands. The factory of Parle was established as early as 1929. The Parle-G was started to be made in the year of 1939. And finally, after independence, this company started putting up ads to promote its biscuits. The ads showcased glucose biscuits and were favored by Indians in a large number.

The biscuit was at first named as Parle-Glucose till the year 1980. After this, it became Parle-G ( G stands for glucose that was present in the biscuit, but in recent slogans, it stands for genius). This biscuit is now being sold worldwide, in the United States, Europe, and Africa.

Parle-G - Logo and Meaning

The logo of Parle-G is one of the most well-known in India. The logo shows a young girl child, about the age of 4-5. The logo is significant as it shows that all age groups can eat the biscuit and the glucose components are suitable for kids even.

Parle-G never changed the logo as it is crucial to illustrate the originality and stability of the product. The same logo in the packaging can help customers to remember and recognize it.

Parle-G - Revenue and Growth

The main characteristic of the Parle-G biscuits is their low cost and affordability. Brand Parle-G biscuit sells for rupees seventy-seven (77) per kilogram and is a part of below 100 'affordable' biscuits. This quality is most important for the growth of this brand of biscuit.

Parle – G comes under the Rs 100 per Kg category, which makes it affordable for everyone and makes it the popular choice for people during such desperate times.

Parle-G alone generates one-third of revenue for the company. Parle-G is dominating the sale volume of around 50% of the total production of the company. Recently the company calculated an overall growth of 5% in the marketplace, and surprisingly Parle-G contributed more than 80% of this growth rate. Parle-G became the world's most giant selling biscuit in 2011; it was recognized worldwide.

The first factory, which was set up in a suburb of Mumbai, soon came to be spread nationwide. As soon as Parle-G became a hit in India, it started exporting its biscuits worldwide. At present, Parle-G has manufacturing units in 7+ countries. The United States, Nepal, Nigeria, Europe, and several parts of the African continents are where these biscuits are currently sold. The company started with the right strategy - making a popular, affordable snack, and this is the prime reason for its growth and expansion.

The company currently has 130+ factories in India out of which 120+ factories are currently producing continuously. This makes the biscuits available at most of the retail stores.

Parle-G, the most loved and the most widely recognized biscuit brand in India saw its sales skyrocketing during the initial months of 2020, and made headlines for breaking its own eight-decade-old record of sales. The company said in an official statement that it has registered the best sales figures breaking the 82-year-old record. Parle also gained a 5% market share in the biscuit sector during the same time, which is a highly competitive one, during March, April and May of 2020. These were the best months of its business since the company started.

Owing to the lockdown due to the Corona Virus (COVID-19) pandemic in 2020, people started stocking essential and easily available food items including the popular biscuit Parle–G. Other than this, many NGOs and Government Agencies bought many Parle–G packets for the distribution of relief packages. These facts led to the large sales of the biscuit. The company itself distributed 3 crore packs as relief packages to the needy. The very affordable 5 Rupee packs came in handy to many migrant workers and laborers who had to travel by foot to return to their native places.

Parle gained the highest growth rate among all the other biscuit brands. The growth rate increase is also its best growth rate in the last 40 years. The company also said that this type of growth is also previously experienced during other phases of crisis in the country like earthquakes and tsunamis when the sales of Parle–G went up exponentially.

Parle – G, which is very popular for many decades is one of India’s oldest and best biscuit brands and has been serving constantly as people’s favorite tea-time snack for many generations. It has also maintained its taste and quality during all these years. Known as ‘Bharat ka Apna Biscuit’, the biscuit company supports the #VocalForLocal campaign, started by our Honorable Prime Minister. It was also declared the world’s largest selling biscuit brand by Nielsen in the year 2013.

Randeep Hooda’s Plea to Parle – G

Famous Bollywood actor Randeep Hooda after the news of the record-breaking sales of Parle-G, tweeted about Parle – G, asking them to end the use of plastic for its packaging, which is badly affecting the nature. He requested the company to switch from plastic packaging to a biodegradable material.

In his own words, Randeep Hooda said, “My whole career is fuelled by chai and Parle-G since theater days. Can you imagine how much less single use plastic waste there will be if just Parle-G changed it’s packing to an alternate biodegradable material? Now the sales are up let’s see the contribution to a better Tom (tomorrow) too”

The actor who is known as a nature lover and has previously worked for this cause has come up with a very good suggestion for the company here.

Parle-G - Challenges Faced

Establishment.

In the initial few days, the company of Parle-G was struggling as it was established during British rule. At that time, advertising was very problematic and rare. They even took the risk of challenging the British-made biscuits, which was a very bold move made by them. Also, setting up factories at that time was difficult, and it was all done manually.

Low-cost margin

The consumers of Parle-G are primarily rural populations. Due to its profound locality, most of its revenue and product growth is dependent upon the population's needs.

They tried to increase the price of the brand, which dramatically decreased the volume of the brand. Consumers demanded stable prices. They are bound to keep a fixed price, so they manipulate the net quantity by keeping the price stable.

Risk of withstand

The real identity of Parle-G is its unique packaging, taste, and low-cost margin. The market is flooded with such other brands having cookies and cream biscuits. They provide attractive packaging and glucose-based biscuits with a similar price range.

Parle-G as a driver product penetrates the biscuit market. They come up with multiple size packs with strong distribution management. Make the product available everywhere.

Parle-G - Achievements

Parle-G is at the top of all biscuit brands in India. Its affordability makes it the most widely-eaten biscuit. It became the very first indigenous biscuit brand to cross the 5000 crore mark.  Parle-G has also become the number one FMCG brand in India. It is one of the trustworthy brands. It has been awarded for its regular and consistent quality.  In 1976 the biscuits Parle-Glucose won the award world selection at Geneva.

Its recognition in foreign markets has made it a very well-known brand in the United States, parts of  Africa, and Europe.  From a small confectionery, Parle-G is now the largest biscuit producer in India. And this is what makes it unique.

Who owns the brand Parle-G?

Vijay Chauhan and his family own Parle-G.

Who is the founder of Parle-G?

Mohanlal Dayal Chauhan is the founder of this biscuit brand.  

Does Parle-G sell anything other than biscuits?

Parle-G is a brand of biscuits manufactured by Parle Products. Parle wholesales a variety of food products.

When was Parle G biscuit established?

Parle-G was established in 1939.

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Case Study of an Indigenous Brand - Parle-G

2014, New Approach in Human Resource and Marketing Management - p. 499 - 507 - ISBN: 978-93-81212-80-6

ABSTRACT: Bread and biscuits constitute the largest segment of consumer food in India. Both Biscuits and Bread are items of mass consumption in our Country. Almost 2 million tons of biscuits are produced in India each year and consumption is growing at 10-12 per cent annually. Parle-G or Parle Glucose biscuits are one of the most popular confectionery biscuits in India. For decades, the product was instantly recognized by its iconic white and yellow wax paper wrapper with the depiction of a young girl covering the front. The Objective of the case study is to find out the reasons for the preference of people in Glucose biscuit also to know why Parle-G is no. 1 in glucose biscuit market. Further, it also brings to focus the infrastructure available to the company which helps it to maintain supply and the awards it has won over the years. This case study also looks back into the history of this brand and highlights the ideals on which it was formed. Their strategies in terms of public relations and advertisements which resulted in its huge market share have also been touched upon. Moreover the availability of the product in India and its Exports has also been mentioned. Parle-G is an established company globally, but it currently faces a huge problem. This is caused due to the increase in prices of raw materials, resulting in falling profit margins. It is a market leader for the established product Parle-G. It also has the largest distribution network. Nevertheless, Parle-G has no staunch brand loyalty. It is a very price sensitive market owing to the Value for Money (VFM). Parle-G has been strongly associated with offering the Value for Money, a marketplace perception that had remained unfaltering for more than 60 years.The market share is highest with Parle-G because of the Value for Money it awards to its consumers. Based on the SWOT analysis, which has been done in detail, we can deduce the issues and constraints affecting the product and its Target base. Key Words:-Glucose Biscuit; Value for Money; Target Base; Market Share

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Success Story of Parle-G: Business Case Study

Parle-G, a beloved household biscuit in India, has stood the test of time despite economic fluctuations. This article explores the simple yet effective strategies employed by Parle to maintain its prominence in the market and how these business lessons can be applied to other ventures.

The Humble Beginnings and the Transition to Parle-G

In 1880, Mohanlal Dayal started a small toffee factory in Mumbai with 12 family members. Parle’s first product was an orange candy. In 1939, they introduced the Parle Gluco Biscuit, offering affordability and delectable taste that captivated consumers and gradually replaced British brands.

The Name Change that Made a Difference

In 1987, several gluco biscuits flooded the market, making it challenging for Parle Gluco to stand out. To overcome this, the brand transitioned to ‘Parle-G,’ helping customers differentiate it from other similar-sounding biscuits.

Consumer Utility Perception: The Key to Steady Pricing

Parle-G’s price has remained constant over the years due to the consumer utility perception associated with the biscuit. Unlike occasional snack biscuits, Parle-G is commonly consumed with tea, coffee, and milk, securing a consistent demand.

Capex Intelligence: Optimizing Manufacturing and Distribution

Parle’s strategic placement of 10 factories, all within 60 km of major cities like Mumbai, Rajasthan, and Karnataka, reduces transportation costs and ensures the same pricing in both urban and rural areas. The company’s frugal buying and standardized raw material sourcing further minimize production costs.

Sales Driver: Parle-G’s Role as a Brand Builder

Parle-G, though not a high-profit product, plays a crucial role in building brand equity. With its widespread presence in households, the biscuit boosts the visibility and sales of other profitable Parle products, such as Hide&Seek, Monaco, KrackJack, Melody, Poppins, and MangoBite.

Business Lessons to Learn from Parle’s Success

Diversify and reduce dependency.

Never become over-dependent on a single product or resource. Parle-G is the signature product, but the brand has expanded its offerings to include a diverse range of biscuits and toffees.

Focus on Controllable Factors

While some factors in business may be uncontrollable, finding smart solutions to reduce costs and maintain competitive pricing can be within reach. Parle’s ability to provide products at a consistent rate of Rs. 5 exemplifies this approach.

Prioritize Brand Equity Over Immediate Profits

Profits are a byproduct of creating strong brand equity. Parle’s focus on building a trusted and recognized brand like Parle-G has ensured its sustained popularity, leading to increased sales of other profitable products.

Parle-G’s remarkable journey from a humble candy and biscuit maker to a market leader holds valuable business lessons for entrepreneurs. The combination of consumer utility perception, strategic manufacturing and distribution, and the emphasis on brand equity has been the key to Parle’s enduring success in the Indian market.

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Marketing Process Analysis

Segmentation, targeting, positioning, marketing strategic planning, marketing 5 concepts analysis, swot analysis & matrix, porter five forces analysis, pestel / pest / step analysis, cage distance analysis international marketing analysis leadership, organizational resilience analysis, bcg matrix / growth share matrix analysis, block chain supply chain management, paei management roles, leadership with empathy & compassion, triple bottom line analysis, mckinsey 7s analysis, smart analysis, vuca analysis ai ethics analysis analytics, parle-g case study solution & analysis / mba resources.

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Introduction to case study solution

EMBA Pro case study solution for Parle-G case study

At EMBA PRO , we provide corporate level professional case study solution. Parle-G case study is a Harvard Business School (HBR) case study written by Chandra Sekhar Ramasastry, Miranda Goode. The Parle-G (referred as “Parle Biscuits” from here on) case study provides evaluation & decision scenario in field of Global Business. It also touches upon business topics such as - Value proposition, Pricing. Our immersive learning methodology from – case study discussions to simulations tools help MBA and EMBA professionals to - gain new insight, deepen their knowledge of the Global Business field, and broaden their skill set.

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Case Description of Parle-G Case Study

In 2009, Parle Products Pvt. Limited (Parle), a leading Indian biscuit manufacturer, had the distinction of producing the largest selling glucose biscuit brand by volume in the world, the Parle-G. Parle-G biscuits sold for approximately US$1 per kilogram and as very few processed and ready-to-eat foods were available at this price point, Parle-G was strongly associated with offering value for money (VFM). A looming problem in this brand category for Parle was that the input prices of two major raw materials for the Parle-G biscuits (which together accounted for 55 per cent of their input costs) had risen enough in the past 18 months to decrease margins from 15 per cent to less than 10 per cent. Pressure to restore margins led Parle to consider a price increase yet a previous attempt had caused dramatic reduction in sales. Parle subsequently addressed rising input costs by reducing the weight of the package, franchising production, reducing supply chain costs and reducing packaging costs. Parle could not ignore the deeply entrenched perception of VFM when devising both short- and long-term marketing plans to retain Parle-G's success in the marketplace. These plans needed to address segmentation, positioning and changing Indian demographics when considering a potential price increase for Parle-G biscuits.

Case Authors : Chandra Sekhar Ramasastry, Miranda Goode

Topic : global business, related areas : pricing, what is the case study method how can you use it to write case solution for parle-g case study.

Almost all of the case studies contain well defined situations. MBA and EMBA professional can take advantage of these situations to - apply theoretical framework, recommend new processes, and use quantitative methods to suggest course of action. Awareness of the common situations can help MBA & EMBA professionals read the case study more efficiently, discuss it more effectively among the team members, narrow down the options, and write cogently.

Case Study Solution Approaches

Three Step Approach to Parle-G Case Study Solution

The three step case study solution approach comprises – Conclusions – MBA & EMBA professionals should state their conclusions at the very start. It helps in communicating the points directly and the direction one took. Reasons – At the second stage provide the reasons for the conclusions. Why you choose one course of action over the other. For example why the change effort failed in the case and what can be done to rectify it. Or how the marketing budget can be better spent using social media rather than traditional media. Evidences – Finally you should provide evidences to support your reasons. It has to come from the data provided within the case study rather than data from outside world. Evidences should be both compelling and consistent. In case study method there is ‘no right’ answer, just how effectively you analyzed the situation based on incomplete information and multiple scenarios.

Case Study Solution of Parle-G

We write Parle-G case study solution using Harvard Business Review case writing framework & HBR Global Business learning notes. We try to cover all the bases in the field of Global Business, Pricing and other related areas.

Objectives of using various frameworks in Parle-G case study solution

By using the above frameworks for Parle-G case study solutions, you can clearly draw conclusions on the following areas – What are the strength and weaknesses of Parle Biscuits (SWOT Analysis) What are external factors that are impacting the business environment (PESTEL Analysis) Should Parle Biscuits enter new market or launch new product (Opportunities & Threats from SWOT Analysis) What will be the expected profitability of the new products or services (Porter Five Forces Analysis) How it can improve the profitability in a given industry (Porter Value Chain Analysis) What are the resources needed to increase profitability (VRIO Analysis) Finally which business to continue, where to invest further and from which to get out (BCG Growth Share Analysis)

SWOT Analysis of Parle-G

SWOT analysis stands for – Strengths, Weaknesses, Opportunities and Threats. Strengths and Weaknesses are result of Parle Biscuits internal factors, while opportunities and threats arise from developments in external environment in which Parle Biscuits operates. SWOT analysis will help us in not only getting a better insight into Parle Biscuits present competitive advantage but also help us in how things have to evolve to maintain and consolidate the competitive advantage.

- Strong Balance Sheet – The financial statement of Parle Biscuits looks strong and will help the company going forward.

- Streamlined processes and efficient operation management – Parle Biscuits is one of the most efficient firms in its segment. The credit for the performance goes to successful execution and efficient operations management.

- Low profitability which can hamper new project investment – Even though Parle Biscuits financial statement is stable, but going forward Parle Biscuits 5-7% profitability can lead to shortage of funds to invest into new projects.

- Little experience of international market – Even though it is a major player in local market, Parle Biscuits has little experience in international market. According to Chandra Sekhar Ramasastry, Miranda Goode , Parle Biscuits needs international talent to penetrate into developing markets.

Opportunities

- Increase in Consumer Disposable Income – Parle Biscuits can use the increasing disposable income to build a new business model where customers start paying progressively for using its products. According to Chandra Sekhar Ramasastry, Miranda Goode of Parle-G case study, Parle Biscuits can use this trend to expand in adjacent areas Pricing.

- Developments in Artificial Intelligence – Parle Biscuits can use developments in artificial intelligence to better predict consumer demand, cater to niche segments, and make better recommendation engines.

- Age and life-cycle segmentation of Parle Biscuits shows that the company still hasn’t able to penetrate the millennial market.

- Growing dominance of digital players such as Amazon, Google, Microsoft etc can reduce the manoeuvring space for Parle Biscuits and put upward pressure on marketing budget.

Once all the factors mentioned in the Parle-G case study are organized based on SWOT analysis, just remove the non essential factors. This will help you in building a weighted SWOT analysis which reflects the real importance of factors rather than just tabulation of all the factors mentioned in the case.

What is PESTEL Analysis

PESTEL /PEST / STEP Analysis of Parle-G Case Study

PESTEL stands for – Political, Economic, Social, Technological, Environmental, and Legal factors that impact the macro environment in which Parle Biscuits operates in. Chandra Sekhar Ramasastry, Miranda Goode provides extensive information about PESTEL factors in Parle-G case study.

Political Factors

- Political consensus among various parties regarding taxation rate and investment policies. Over the years the country has progressively worked to lower the entry of barrier and streamline the tax structure.

- Political and Legal Structure – The political system seems stable and there is consistency in both economic policies and foreign policies.

Economic Factors

- Inflation rate is one of the key criteria to consider for Parle Biscuits before entering into a new market.

- Foreign Exchange movement is also an indicator of economic stability. Parle Biscuits should closely consider the forex inflow and outflow. A number of Parle Biscuits competitors have lost money in countries such as Brazil, Argentina, and Venezuela due to volatile forex market.

Social Factors

- Demographic shifts in the economy are also a good social indicator for Parle Biscuits to predict not only overall trend in market but also demand for Parle Biscuits product among its core customer segments.

- Consumer buying behavior and consumer buying process – Parle Biscuits should closely follow the dynamics of why and how the consumers are buying the products both in existing categories and in segments that Parle Biscuits wants to enter.

Technological Factors

- 5G has potential to transform the business environment especially in terms of marketing and promotion for Parle Biscuits.

- Proliferation of mobile phones has created a generation whose primary tool of entertainment and information consumption is mobile phone. Parle Biscuits needs to adjust its marketing strategy accordingly.

Environmental Factors

- Environmental regulations can impact the cost structure of Parle Biscuits. It can further impact the cost of doing business in certain markets.

- Consumer activism is significantly impacting Parle Biscuits branding, marketing and corporate social responsibility (CSR) initiatives.

Legal Factors

- Health and safety norms in number of markets that Parle Biscuits operates in are lax thus impact the competition playing field.

- Intellectual property rights are one area where Parle Biscuits can face legal threats in some of the markets it is operating in.

What are Porter Five Forces

Porter Five Forces Analysis of Parle-G

Competition among existing players, bargaining power of suppliers, bargaining power of buyers, threat of new entrants, and threat of substitutes.

What is VRIO Analysis

VRIO Analysis of Parle-G

VRIO stands for – Value of the resource that Parle Biscuits possess, Rareness of those resource, Imitation Risk that competitors pose, and Organizational Competence of Parle Biscuits. VRIO and VRIN analysis can help the firm.

What is Porter Value Chain

Porter Value Chain Analysis of Parle-G

As the name suggests Value Chain framework is developed by Michael Porter in 1980’s and it is primarily used for analyzing Parle Biscuits relative cost and value structure. Managers can use Porter Value Chain framework to disaggregate various processes and their relative costs in the Parle Biscuits. This will help in answering – the related costs and various sources of competitive advantages of Parle Biscuits in the markets it operates in. The process can also be done to competitors to understand their competitive advantages and competitive strategies. According to Michael Porter – Competitive Advantage is a relative term and has to be understood in the context of rivalry within an industry. So Value Chain competitive benchmarking should be done based on industry structure and bottlenecks.

What is BCG Growth Share Matrix

BCG Growth Share Matrix of Parle-G

BCG Growth Share Matrix is very valuable tool to analyze Parle Biscuits strategic positioning in various sectors that it operates in and strategic options that are available to it. Product Market segmentation in BCG Growth Share matrix should be done with great care as there can be a scenario where Parle Biscuits can be market leader in the industry without being a dominant player or segment leader in any of the segment. BCG analysis should comprise not only growth share of industry & Parle Biscuits business unit but also Parle Biscuits - overall profitability, level of debt, debt paying capacity, growth potential, expansion expertise, dividend requirements from shareholders, and overall competitive strength. Two key considerations while using BCG Growth Share Matrix for Parle-G case study solution - How to calculate Weighted Average Market Share using BCG Growth Share Matrix Relative Weighted Average Market Share Vs Largest Competitor

5C Marketing Analysis of Parle-G

4p marketing analysis of parle-g, porter five forces analysis and solution of parle-g, porter value chain analysis and solution of parle-g, case memo & recommendation memo of parle-g, blue ocean analysis and solution of parle-g, marketing strategy and analysis parle-g, vrio /vrin analysis & solution of parle-g, pestel / step / pest analysis of parle-g, swot analysis and solution of parle-g, references & further readings.

Chandra Sekhar Ramasastry, Miranda Goode (2018) , "Parle-G Harvard Business Review Case Study. Published by HBR Publications.

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Parle-g case study analysis & solution, harvard business case studies solutions - assignment help.

Parle-G is a Harvard Business (HBR) Case Study on Global Business , Fern Fort University provides HBR case study assignment help for just $11. Our case solution is based on Case Study Method expertise & our global insights.

Global Business Case Study | Authors :: Chandra Sekhar Ramasastry, Miranda Goode

Case study description.

In 2009, Parle Products Pvt. Limited (Parle), a leading Indian biscuit manufacturer, had the distinction of producing the largest selling glucose biscuit brand by volume in the world, the Parle-G. Parle-G biscuits sold for approximately US$1 per kilogram and as very few processed and ready-to-eat foods were available at this price point, Parle-G was strongly associated with offering value for money (VFM). A looming problem in this brand category for Parle was that the input prices of two major raw materials for the Parle-G biscuits (which together accounted for 55 per cent of their input costs) had risen enough in the past 18 months to decrease margins from 15 per cent to less than 10 per cent. Pressure to restore margins led Parle to consider a price increase yet a previous attempt had caused dramatic reduction in sales. Parle subsequently addressed rising input costs by reducing the weight of the package, franchising production, reducing supply chain costs and reducing packaging costs. Parle could not ignore the deeply entrenched perception of VFM when devising both short- and long-term marketing plans to retain Parle-G's success in the marketplace. These plans needed to address segmentation, positioning and changing Indian demographics when considering a potential price increase for Parle-G biscuits.

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[10 Steps] Case Study Analysis & Solution

Step 1 - reading up harvard business review fundamentals on the global business.

Even before you start reading a business case study just make sure that you have brushed up the Harvard Business Review (HBR) fundamentals on the Global Business. Brushing up HBR fundamentals will provide a strong base for investigative reading. Often readers scan through the business case study without having a clear map in mind. This leads to unstructured learning process resulting in missed details and at worse wrong conclusions. Reading up the HBR fundamentals helps in sketching out business case study analysis and solution roadmap even before you start reading the case study. It also provides starting ideas as fundamentals often provide insight into some of the aspects that may not be covered in the business case study itself.

Step 2 - Reading the Parle-G HBR Case Study

To write an emphatic case study analysis and provide pragmatic and actionable solutions, you must have a strong grasps of the facts and the central problem of the HBR case study. Begin slowly - underline the details and sketch out the business case study description map. In some cases you will able to find the central problem in the beginning itself while in others it may be in the end in form of questions. Business case study paragraph by paragraph mapping will help you in organizing the information correctly and provide a clear guide to go back to the case study if you need further information. My case study strategy involves -

• Marking out the protagonist and key players in the case study from the very start.
• Drawing a motivation chart of the key players and their priorities from the case study description.
• Refine the central problem the protagonist is facing in the case and how it relates to the HBR fundamentals on the topic.
• Evaluate each detail in the case study in light of the HBR case study analysis core ideas.

Step 3 - Parle-G Case Study Analysis

Once you are comfortable with the details and objective of the business case study proceed forward to put some details into the analysis template. You can do business case study analysis by following Fern Fort University step by step instructions -

• Company history is provided in the first half of the case. You can use this history to draw a growth path and illustrate vision, mission and strategic objectives of the organization. Often history is provided in the case not only to provide a background to the problem but also provide the scope of the solution that you can write for the case study.
• HBR case studies provide anecdotal instances from managers and employees in the organization to give a feel of real situation on the ground. Use these instances and opinions to mark out the organization's culture, its people priorities & inhibitions.
• Make a time line of the events and issues in the case study. Time line can provide the clue for the next step in organization's journey. Time line also provides an insight into the progressive challenges the company is facing in the case study.

Step 4 - SWOT Analysis of Parle-G

Once you finished the case analysis, time line of the events and other critical details. Focus on the following -

• Zero down on the central problem and two to five related problems in the case study.
• Do the SWOT analysis of the Parle-G . SWOT analysis is a strategic tool to map out the strengths, weakness, opportunities and threats that a firm is facing.
• SWOT analysis and SWOT Matrix will help you to clearly mark out - Strengths Weakness Opportunities & Threats that the organization or manager is facing in the Parle-G
• SWOT analysis will also provide a priority list of problem to be solved.
• You can also do a weighted SWOT analysis of Parle-G HBR case study.

Step 5 - Porter 5 Forces / Strategic Analysis of Industry Analysis Parle-G

In our live classes we often come across business managers who pinpoint one problem in the case and build a case study analysis and solution around that singular point. Business environments are often complex and require holistic solutions. You should try to understand not only the organization but also the industry which the business operates in. Porter Five Forces is a strategic analysis tool that will help you in understanding the relative powers of the key players in the business case study and what sort of pragmatic and actionable case study solution is viable in the light of given facts.

Step 6 - PESTEL, PEST / STEP Analysis of Parle-G

Another way of understanding the external environment of the firm in Parle-G is to do a PESTEL - Political, Economic, Social, Technological, Environmental & Legal analysis of the environment the firm operates in. You should make a list of factors that have significant impact on the organization and factors that drive growth in the industry. You can even identify the source of firm's competitive advantage based on PESTEL analysis and Organization's Core Competencies.

Step 7 - Organizing & Prioritizing the Analysis into Parle-G Case Study Solution

Once you have developed multipronged approach and work out various suggestions based on the strategic tools. The next step is organizing the solution based on the requirement of the case. You can use the following strategy to organize the findings and suggestions.

• Build a corporate level strategy - organizing your findings and recommendations in a way to answer the larger strategic objective of the firm. It include using the analysis to answer the company's vision, mission and key objectives , and how your suggestions will take the company to next level in achieving those goals.
• Business Unit Level Solution - The case study may put you in a position of a marketing manager of a small brand. So instead of providing recommendations for overall company you need to specify the marketing objectives of that particular brand. You have to recommend business unit level recommendations. The scope of the recommendations will be limited to the particular unit but you have to take care of the fact that your recommendations are don't directly contradict the company's overall strategy. For example you can recommend a low cost strategy but the company core competency is design differentiation.
• Case study solutions can also provide recommendation for the business manager or leader described in the business case study.

Step 8 -Implementation Framework

The goal of the business case study is not only to identify problems and recommend solutions but also to provide a framework to implement those case study solutions. Implementation framework differentiates good case study solutions from great case study solutions. If you able to provide a detailed implementation framework then you have successfully achieved the following objectives -

• Detailed understanding of the case,
• Clarity of HBR case study fundamentals,
• Analyzed case details based on those fundamentals and
• Developed an ability to prioritize recommendations based on probability of their successful implementation.

Implementation framework helps in weeding out non actionable recommendations, resulting in awesome Parle-G case study solution.

Step 9 - Take a Break

Once you finished the case study implementation framework. Take a small break, grab a cup of coffee or whatever you like, go for a walk or just shoot some hoops.

Step 10 - Critically Examine Parle-G case study solution

After refreshing your mind, read your case study solution critically. When we are writing case study solution we often have details on our screen as well as in our head. This leads to either missing details or poor sentence structures. Once refreshed go through the case solution again - improve sentence structures and grammar, double check the numbers provided in your analysis and question your recommendations. Be very slow with this process as rushing through it leads to missing key details. Once done it is time to hit the attach button.

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