Segmentation reveals only the firms opportunities in ville Parle

Parle was a small company started in the year 1929 in Ville Parle in Mumbai. This company went on to become the worlds largest biscuit manufacturer. The company had the intent to spread joy and cheer in the lives of adults and children, all over the country with their range of sweets and candies.

From a small factory set up on the outskirts of Mumbai they have grown to have 7 manufacturing units all over India. Today Parle sells biscuits, confectionary and snacks in more than 200 SKUs and has won numerous awards internationally and has been sweetening lives all over India and abroad.

The Indian Biscuit Industry

Porter’s Five Forces Model

Product Portfolio:

Parle SWOT Analysis

Segmentation Targeting and Positioning of Parle

If we divide the whole market on basis of their preferences foe sweetness and saltiness in the biscuits then the possible outcome would be that the preferences are clustered near some tastes i.e. the consumers would not like to have something really vague like 50%salty, 25%sweet and25%creamy.That is why the preferences are clustered and not diffused wherein the preferences have to be very extreme and vague. Parle as a company makes use of this clustered preferences and manufactures biscuits for each and every cluster. For e.g. Monaco for entirely salty biscuits and its latest product Krack jack-cream is for sweet and salty taste.

Target Marketing:

Segmentation reveals only the firm’s opportunities. The firm now has to evaluate the various segments and decide how many and which segments it can best serve.

Evaluating Market Segments:

A firm must look at three factors to evaluate market segments: segment size and growth; segment structural attractiveness; and company objectives and resources.

The company must first collect and analyze data on current segment sales, growth rates, and expected profitability for various segments. It will be interested in segments that have the right size and growth characteristics. But “right size and growth" is a relative matter.

There are several structural characteristics that affect long-run segment attractiveness.

The segment is less attractive if there are several strong, aggressive competitors.

The existence of many actual or potential substitute products may limit prices and the profits that can be earned.

The relative power of buyers also affects segment attractiveness.

A segment may be less attractive if it contains powerful suppliers who can control prices or reduce the quality or quantity of ordered goods and services

The company must take into account its own objectives and resources in relation to the segment. If a segment does not mesh with the company’s long-run objectives, it can be dismissed.

The company must take into consideration whether it has the skills and resources needed to succeed in the market. The company should enter only segments in which it can offer superior value and gain advantage over competitors.

Positioning Strategy of PARLE

Positioning strategy

Parle is positioned in the minds of people as a value for price product and also as a low-priced product.

Differentiation strategy

For Parle-G the company has used channel and image differentiation tools. Parle-G by far has the most intensive distribution coverage as compared to any other biscuit company in India. Also the name PARLE has an image that generates respect and a belief of good quality in the minds of the buyers.

A product’s position is the way the product is defined by the consumers on important attributes; it is the place the product occupies in consumers’ minds relative to competing products. It involves implanting the brand’s unique benefits and differentiation in customers’ minds.

To simplify the buying process, consumers organize products, services, and companies into categories and “position" them in their minds. A product’s position is a complex set of perceptions, impressions, and feelings that consumers have for the product compared with competing products.

Consumers will position products with or without the help of marketers. So marketers must plan positions that will give their products the greatest advantage in selected target markets, and then must design marketing mixes to create these planned positions.


Over the years, Parle has grown to become a multi-million US Dollar company. Many of the Parle products - biscuits or confectionaries, are market leaders in their category and have won acclaim at the Monde Selection, since 1971.

Today, Parle enjoys a 40% share of the total biscuit market and a 15% share of the total confectionary market, in India. The Parle Biscuit brands, such as, Parle-G, Monaco and Krackjack and confectionery brands, such as, Melody, Poppins, Mangobite andKismi, enjoy a strong imagery and appeal amongst consumers.

Be it a big city or a remote village of India, the Parle name symbolizes quality, health and great taste! And yet, we know that this reputation has been built, by constantly innovating and catering to new tastes. This can be seen by the success of new brands, such as, Hide & Seek, or the single twist wrapping of Mango bite

In this way, by concentrating on consumer tastes and preferences and emphasizing Research & Development, the Parle brand grows from strength to strength.


The extensive distribution network, built over the years, is a major strength for Parle Products. Parle biscuits & sweets are available to consumers, even in the most remote places and in the smallest of villages with a population of just 500.

Parle has nearly 1,500 wholesalers, catering to 4,25,000 retail outlets directly or indirectly. A two hundred strong dedicated field force services these wholesalers & retailers. Additionally, there are 31 depots and C&F agents supplying goods to the wide distribution network.

The Parle marketing philosophy emphasizes catering to the masses. They constantly endeavour at designing products that provide nutrition & fun to the common man. Most Parle offerings are in the low & mid-range price segments. This is based on their understanding of the Indian consumer psyche. The value-for-money positioning helps generate large sales volumes for the products.

However, Parle Products also manufactures a variety of premium products for the up-market, urban consumers. And in this way, caters a range of products to a variety