“Unraveling the Secrets Behind the Success of India’s Favorite Biscuit 🍪💰”
Can you guess a product that has been priced at just 5₹ for nearly 25 years and remains widely popular? The bestselling biscuit continues to be a favorite snack for many, enjoyed with a cup of tea as they dunk the affordable pack into their beverage and savor the tea-soaked half before it breaks apart. ☕👌
The question arises: how has the brand maintained the same price for so long, and how does it continue to generate profits, with a turnover jumping from 5000cr in 2013 to 8000cr in 2018, despite the low margin on this product?
1. Core Product Strategy - By intentionally keeping it as a low-margin item, Parle-G effectively reaches the most remote areas of the country, serving as the company’s flagship product. The lower profits from Parle-G are balanced by the revenue generated from other brands such as Monacco, Krack Jack, and Hide & Seek. 🚀💼
2. Shrinkflation - You may have observed that despite maintaining the price, the company has noticeably reduced the quantity. Previously, what was sold as 100gms is now offered as 55gms for the same 5₹. 📉💰
3. Cost Efficiency - It may seem surprising, but Parle-G’s manufacturing operations are so efficient that they incur just a 1% waste for every 115 tons of production. Moreover, there is minimal expenditure on packaging, with no double packaging involved. Their factories are strategically located to minimize logistics costs and optimize supply chain management. With such large-scale production, they benefit from economies of scale, further reducing costs. Additionally, direct procurement of raw materials helps them save on expenses. 💡📦
There’s plenty more to uncover, but these are primarily the key factors driving the success of the bestselling biscuit brand.
#businesscasestudy #ParleG #SuccessStory #EconomiesOfScale #CostEfficiency #IndianSnacks 🇮🇳📈
Senior Executive at Moglix|| Supply Chain|| Warehousing|| SAP || Ex Mahindra Logistics Store Incharge & Dispatch Officer||
4mo👍👌