Executive Summary

Strong brand equity has become a very important factor that influences

consumer’s perceptions of a brand. Success in brand management arises

from understanding and managing brand equity correctly to produce strong

attributes that will influence consumers when making their choices.

This thesis focuses on the importance of these dimensions (brand

awareness, brand loyalty, brand image and perceived quality) of customer-

based brand equity on consumer’s perceptions of a brand. This is based on

the assumption that all these dimensions of customer based-brand equity

will have influence on consumer’s perceptions of brand. However, this

thesis aims to find out which among these three dimensions (brand image,

brand loyalty and perceived quality) appear to have the least brand equity

in both restaurants and to find out if customer based-brand equity differ

between the two restaurants with respect to each attribute of brand

awareness, brand image, perceived quality and brand loyalty. Brand

awareness was treated separately from other dimensions because of the

difference in scale.

A structured questionnaire was constructed to provide answers to our

research question. In this study, one hundred questionnaires were

distributed, but only sixty four useable questionnaires were realized. The

study surveyed four dimensions of consumer’s based-brand equity namely

brand awareness, brand image, perceived quality and brand loyalty. Among

the three dimensions, brand loyalty appears to have the least brand equity

rating by consumers than the other dimensions. Although, the four

dimension appear to have influence on consumer perceptions of brand.

A strong brand allows customers to have a better perception of the

intangible product and services. Also they lessen customer’s perceived

monetary, safety and social risk in purchasing services which are hard to

ascertain before purchase. Strong brands offer a lot of advantages such as

reduced competition, larger brand loyalty and increase response to price

adjustment by customers, larger profit and brand extensions to a service

firm than brands that are not strong.

Conclusively, the best way to build brand value and stop product and service

commoditization is through continuous attempt to build brand equity. Strong

brands are established by creating an emotional attachment with customers,

seeking differentiation in communication and performing the service.

Branding makes clear a restaurant’s reason for existence and inspires its

employees to get used to the brand thereby building it for customers.

PROBLEM STATEMENT

Due to the fast change in the global market and increase competition,

management of brand has become of importance.

Building of strong brand equity is the top most priority of many fast food

restaurants, but attaining this objective is not always an easy task due to the

fact that the products and services of many fast food restaurants are similar

and their means of distributions are alike. Price in the form of discount and

brand equity is the only possible means by which customers can differentiate

one brand from another. Indeed, price promotion has been one of the most

important marketing strategy relied upon by most fast food restaurant firms

and this has lead to constant war price that have reduced revenue and

weaken customers loyalty.

When reading through literatures, we found limited researches regarding

customer based-brand equity in service industry and most of them focus on

the relationship between brand equity and firm performance using brand

awareness and image as moderating effect. surveyed these four dimensions

of customer based-brand equity (brand awareness, perceived quality, brand

loyalty and brand image) have suggested that they all have influence on

consumer.

Therefore, we have chosen to carry out a research to indicate the

importance of these four dimensions of brand equity (brand awareness,

brand loyalty brand image, perceived quality) on consumer perceptions of a

brand and to find out which among them those not really have much

influence on consumer perceptions of a brand.

Two Sectors of Biscuit Industry

INTRODUCTION

In the whole research my job was to know the consumer behaviour and the

brand positioning of PARLE products.

Industry Trend

The biscuit industry is been experiencing steady growth of 14-15% annually.In 2008, the growth exceeded 16% mark on account of exemption fromCentral Excise Duty on biscuits.

Annual Growth Rate of Biscuit Indusrty in India

1) OBJECTIVES : - In any research there are always two types of objectives

which differ with type of management. These two research objectives

arefollow……….

a) Management objective

b) Research objectives

research objectives are always of two types i.e. primary

research objectives and secondary research objectives.

MANAGEMENT OBJECTIVE:-

Here the ultimate and sole objective of the management is to satisfy the

consumer with increased sales and for that they want to know that what are

the specific qualities and attributes of the products which are critical for any

consumer.

RESEARCH OBJECTIVES:-

Primary research objective for any research team is always single and is

always based on the management objective. Here the primary research

objective for the research team is

“ To determine the effective attributes of products which

affects the consumer buying behaviour “

Secondary research objectives are the descriptive form of primary research

objective or we can say that in this step primary research objectives are

broken down into secondary research objectives. Here secondary research

could be as follow…

a) Brand choice

b) Dealer choice

c) Purchase timing

d) Purchase quantity

Based on all these objectives a researcher can explore consumer

preference he can also illustrate the factors affecting secondary

objectives.

RESEARCH PURPOSE - DESCRIPTIVE

RESEARCH APPROACH- QUANTITATIVE

RESEARCH STRATEGY- SURVEY

Brand choice shows that based on what factor a consumer makes his

brand choice. These factors could be qualities of products etc.

Dealer choice of a consumer explores that based on what factors a

consumer makes his dealer choice. Here regular availability could be

one of the important basis .

Purchase timing and purchase quantity explores that how much product

should be available to the dealer shop at a particular time.

Collectively the objectives for this research are….

a) To know the consumer taste and preference.

b) To know likes and dislikes of consumer.

c) To know the relative positioning of Parle products in the consumer’s

mind.

d) To explore the positioning of competitors.

e) To determine the factor affecting consumer buying behaviour.

f) To know post buying behaviour of consumer.

2) RESEARCH METHODOLOGY :-

3) COVERAGE :-

In the research all areas of PARLE products retail outlets in Pune was covered

and for the primary data collection I took personal interview of housewives.

4) SAMPLE SELECTION : -

Random sample selection from Pune.

5) TIME PERIOD :-

Duration of research project was 1 month and 27 days. It was started on 30 th

April and it was finished on 27th June.

6) LIMITATION :-

a) Marketing research is the study of human behaviour therefore it can not

be 100 % accurate.

b) Biasness of respondent could be there and it may lead to wrong

information

c) Language also create problem in the research during data collection and it

may also lead to wrong data collection.

d) Small sample size may also lead to wrong interpretation.

7) SAMPLE SIZE :-

Size of the sample for this Dealer Outlet research was 150.

8) APPLICATION OF RESEARCH FINDINGS:-

With the help of the results company can efficiently satisfy the needs of the

potential customers. It helps in knowing that what are the important

attributes of the products which affects consumer buying behaviour so that

company can improve these attributes in the products.

It also helps company to deal with competition.

SECONDARY DATA AND PRIMARY DATA COLLECTION

In every research there are two type of data are used.

a) primary data

b) secondary data

Source of secondary data in this research was Parle head office, magazine

and old research papers.

Primary data was collected through personal interview with the help of

Questionnaire.

In any survey research data collection is systematic collection of information

directly from the respondent.

In survey research there are four way or mean of data collection…

a) Telephone interview

b) Mail interview

c) Personal interview

d) Computer interview

For any fast moving perishable consumer product telephone, mail and

computer interviews are not feasible because they can not provide sufficient

information to the respondent and also can not guide the respondent during

the data collection therefore we have selected personal interview method for

data collection.

Personal interview involve collection of information in a face to face

situation.

In the personal interviews, the interviewer ask the question in the face to

face situation. The interview may take place at the respondent’s home or at

a central location or retail outlet like Reliance Fresh.

PLACE OF DATA COLLECTION :-

Place of data collection that we have decided was reliance fresh outlets in

Pune.

SAMPLE SIZE :-

Size of the sample for this consumer research was 250.

Company Profile

About Parle

Parle Products has been India's largest manufacturer of biscuits and

confectionery, for almost 80 years. Makers of the world's largest selling

biscuit, Parle-G, and a host of other very popular brands, the Parle name

symbolizes quality, nutrition and great taste. With a reach spanning even the

remotest villages of India , the company has definitely come a very long way

since its inception.

Many of the Parle products - biscuits or confectioneries, are market leaders

in their category and have won acclaim at the Monde Selection, since 1971.

With a 40% share of the total biscuit market and a 15% share of the total

confectionary market in India , Parle has grown to become a multi-million

dollar company. While to consumers it's a beacon of faith and trust,

competitors look upon Parle as an example of marketing brilliance.

History of the company

In 1929 a small company by the name of Parle products emerged in British

dominated India. The intent was to spread joy and cheer to children and

adults alike, all over the country with its sweets and candies. The company

knew that it wouldn’t be an easy task, but they decided to take the brave

step. A small factory was set up in the suburbs of Mumbai, to manufacture

sweets and toffees. A decade later it was upgraded to manufacture biscuits

as well. Since then, the Parle name has grown in all directions, won

international fame and has been sweetening people's lives all over India and

abroad.

Apart from the factories in Mumbai and Bangalore Parle also has factories in

Bahadurgarh in Haryana and Neemrana in Rajasthan, which are the largest

biscuit and confectionery plants in the country. Additionally, Parle Products

also has 7 manufacturing units and 51 manufacturing units on contract.

Quality of the products

Hygiene is the precursor to every process at Parle. From husking the wheat

and melting the sugar to delivering the final products to the supermarkets

and store shelves nationwide, care is taken at every step to ensure the best

product of long-lasting freshness. Every batch of biscuits and confectioneries

are thoroughly checked by expert staff, using the most modern equipment

hence ensuring the same perfect quality across the nation and abroad.

Concentrating on consumer tastes and preferences, the Parle brand has

grown from strength to strength ever since its inception. The factories at

Bahadurgarh in Haryana and Neemrana in Rajasthan are the largest biscuit

and confectionery plants in the country. The factory in Mumbai was the first

to be set up, followed soon by the one in Bangalore, Karnataka. Parle

Products also has 14 manufacturing units for biscuits and 5 manufacturing

units for confectioneries, on contract.

Core Value

An in-depth understanding of the Indian consumer psyche has helped Parle

evolve a marketing philosophy that reflects the needs of the Indian masses.

With products designed keeping both health and taste in mind, Parle appeals

to both health conscious mothers and fun loving kids. The great tradition of

taste and nutrition is consistent in every pack on the store shelves, even

today. The value-for-money positioning allows people from all classes and

age groups to enjoy Parle products to the fullest.

Awards

Parle products have been shining with the golds and silvers consistently at

the Monde Selection ever since they were first entered in 1971. Monde

Selection is an international institute for assessing the quality of foods and is

currently the oldest and most representative organization in the field of

selecting quality foods worldwide.

Annual Production:

The organized biscuit manufacturing industry‘s annual production figures show YOY growth indicating rising consumption pattern in India.

Annual Production Figures in Million Metric Tonnes

Brands

Parle Biscuits

Parle biscuits are linked with factors of power and wisdom providing nutrition

and strength. Parle biscuits are indeed much more than a tea- time snack,

they are considered by many to be an important part of their daily food.

Parle can treat you with a basket of biscuits which are not only satisfying but

are also of good and reliable quality. Parle biscuits cater to all tastes from

kids to senior citizens. They have found their way into the Indian hearts and

homes.

Every nation dreams of a better tomorrow. And every nation’s tomorrow lies

in the hands of its children; children who make the nation proud in every

aspect; the young geniuses who shape the future of the nation.  So it’s

important to nourish these young minds, for after all it’s a question of the

nation’s future.

Filled with the goodness of milk and wheat, Parle G is a source of strength for

both body and mind. Treat yourself to a packet of Parle-G to experience what

has nurtured and strengthened the minds of millions of genius Indians for

over 65 years. It’s more than just a biscuit. A meal substitute for some, a

tasty and healthy snack for many others. Consumed by some for the value it

offers, and many others for it’s taste. Little wonder that it’s the Largest

selling Biscuit Brand in the world. 

Industry Players

Other Players• HLL,• Bisk Farm,• Anmol,• Elite,• Cremica,• Dukes,• Anupam,• Craze,• Nezone

Major Market Share Holders Organized Sector

PEST

biscuit goodies:    

Parle - G Hide and Seek

Krackjack Hide & Seek Milano

Magix Digestive Marie

Monaco Parle Marie

Kreams Milk Shakti

Parle 20-20 Cookies Goldenarcs

Nimkin Kreams Gold

Chox Monaco Jeera

  Sweets:    

Melody Kismi Gold

Mango Bite Orange Candy

Kaccha Mango Bite Xhale

Poppins 2 in 1 Eclair

Kismi Toffee Golgappa

Kisme Toffee Bar Melody Softee

Mazelo Parle Lites

     

  Snacks:    

Musst Bites Jeffs

CheeslingsMusst Stix & Musst Chips

Sixer Sixer Zeera

 Parle Social Responsibility

Parle Products with its wide platter of offering of biscuits and

sweets like Parle-G, Krackjack, Monaco, Melody, Mango bite and

many others since 1929 is also actively engaged to change & uplift

the social face of India. As a part of Corporate Social Responsibility

Policy Parle is keenly involved in the overall development of

younger generation with focused endeavor to built New Face of

India and spread happiness & joy all over.

Parle Centre of Excellence as an institution is dedicated to enrich

the lives of people through conducting various cultural programs

across all region to facilitate the all round development of the

children. Every year, Parle organises Saraswati Vandana in the

state of West Bengal during the festival of Saraswati Puja, inviting

schools from all across the state to participate. The event is one of

much fanfare and celebration, keeping alive the culture and

traditions of ages. Our involvement in cultural activities has seen

the inception of Golu Galata in Tamil Nadu, held during Navratri. Its

gives a platform to all the members of a household to showcase

their creativity and being judged by immanent personalities.

Thousands of families participate and celebrate the occasion on a

grand scale.

These events give us a chance to interact with children on a one-

to-one basis, and promote our belief of fun and health for the

whole family

THE CHANNEL NETWORKDistribution channel

First leg (from manufacturing units)

GCMMFHead office

Depot...1 Depot...n

WD…1 WD…n

Retail…1 Retail...n

Second leg

Third leg

Manufacturing

SELECTION, MOTIVATION & EVALUATION OF CHANNEL MEMBERS

Selection:

The company takes into consideration a host of factors while selecting the

channel members. This is because it believes that selection of channel

members is a long run decision & the rest of the decision regarding the

supply chain depends upon the efficiency & coverage by the channel

members. The following are the host of factors considered by the company in

selecting the channel members:

Downstream flowProcurement Channel

Authentication is required by the regarding the identity of the channel

members, which includes the name & address, photograph of the

location.

Proof of solvency which requires name & address of the channel

member’s bankers

Safety of the inventory, which means that the distributor/ dealer should

get the stock of the company insured.

Inventory or the perishable goods kept by the distributor/ dealer should

be in good condition which means a detail of storage space &

Refrigeration facility is to be provided.

Details of the delivery vehicle, which includes Light Commercial Vehicles,

Matador, 3 Wheeler Van, Tricycle Van & Hand/Push cart. The number &

model of each of the vehicle needs to be furnished to the company.

Company acknowledges the fact that it needs to be sensitive to the

market demands. For this it requires that a number of salesmen needs to

be present on the field. The salesmen too are divided into various

categories like the Field salesmen & Counter salesmen. Also the details of

Clerical Staff & Mazdoors are to be provided. The technical competence of

the salesmen needs to be mentioned

Details of the product kept of other companies have to be provided. The

annual sales of these products too have to be mentioned. Also details of

complementary products & product lines need to be mentioned.

Dealers of the company must carry a good reputation. This is due to the

fact that the company believes reputation of the dealer affects the

clientele.

Market coverage by the distributors needs to be defined which includes

details of Geographic coverage & Outlets per market area.

The company also requires the dealers to furnish any Advertising & Sales

initiative undertaken by them on behalf of the company.

Motivation of Channel Members

Company strongly believes in maintaining a good relationship with the

channel members so that they are genuinely motivated to work for the

company. Also if the channel members are motivated, they can also initiate

advertising & sales promotion schemes on behalf of the company. However

to keep the channel members motivated to work, the company has to incur

certain costs but the benefits of it are felt in the long run. The following are

the motivation programs run by the company:

Distributors

One of the main factors, which keep the distributors motivated, is the

margin. Usually the margins offered by the company are 8% & it is raised

to 8.5%. Volume wise this comes out to be a big figure since Parle’s

product has a good demand in the market. However compared to the

other companies the margins are still lower since the new players in the

market offer a much higher margin. But the very fact that Parle’s products

have good demand in the market motivates the distributors to stock it.

Parle Products being a cooperative cannot afford to give heavy monetary

incentives. Parle’ s products are considered to be value for money since

the company does not believe in charging high margins. In fact all

monetary incentives are just the short run means to promote the

company’s product. In order to keep the Channel members motivated in

the long run, Parle builds on the concept of “Trade Marketing” which

makes the dealers & the distributors believe that the company’s products

are worthy of being pushed in the market.

The company is organizing various Total Quality Management initiatives &

workshops. Here various counseling measures are undertaken by the

company to improve the overall working of the distribution network.

Vision and mission statement: the company cascades down the vision

to the various channel members, this is done through various events

organized by the company at different locations where the values of the

company are made clear and enforced to the channel members. Also the

fact that Parle being a cooperative society cannot afford to spend

exorbitantly on such events therefore it has a very traditional way of

organizing these get together which leaves an impact on the members.

The Retailers

Trade schemes: these are undertaken by the company only for the hard

selling items e.g. Busicts and Snacks etc. for these the company raises

the margins by 2%, also schemes like good packaging incase of butter

and cheese is undertaken by the company. However this is only a short-

term initiative to push the products of the company.

Glow boards: the company puts up glow boards at the retailer and pays

the major portion of the cost.

Schedule of the salesmen: they provide the retails with this schedule

so the retailers can pre estimate the quantities of the various products

needed.

Infrastructure facilitation: the company facilitates the retailers to buy

beautiful stalls by formulating an easy payment program and a

commitment to buy back the equipment at a reasonable price when the

value of the equipment has depreciated.

Evaluation of channel members

Beat plan: this plan is generated for the various product categories. A

weekly schedule is prepared for various markets and the retailers the

turnover for each of the product is calculated for the wholesale

dealers.

Cumulative performance: the performance of the dealers is

averaged out over a period of three years where a comparison is made

of the present performance vis-à-vis the previous ones.

Target versus achievement: the performance and the targets are

compared and therefore the gaps are identified which help in

evaluating the WD and planning for the next year as well. This is done

for each of the product category.

Other criterion

o Details of the bank guaranty

o Photographs of the offices

o Details of the WD salesmen and the product lines he

deals in

o The computerization facility available

o The storage space

o Stall facility with photograph

o Details of the delivery vehicle with photograph

o Summary of the monthly potential sales of markets

o Summary of the product wise monthly sales potential of

institutions

CONFLICTS AND CO-OPERATION AMONG CHANNEL MEMBERS

Conflicts

Ownership of assets: Previously the company used to give the

products on lease to the retailers, when the company wanted the stuff

back; the retailer disagreed to comply and created issues of ownership.

Stocking issues: The company doesn’t want the retailers to stock the

competing brand in the company leased stall, which at times s hard to

manage as retailers tend to do it often.

Replacement of products: The deterioration in the product calls for

fail in replacement by the company this major issue of vertical conflict.

Credit policy: Compared to the market, the company’s credit period

is less that specially incase of institutional sales is very important.

Packaging: The channel members for easy storing demand a better

quality of packaging.

Replenishment: The replenishment of the stocks is not prompt in

case of Parle cheese Biscuit and all hard selling items.

Margins: The Company provides least margins to all the channel

members. For e.g. The retailer’s margin in case of butter is 8%

as compared to Britannia’s 12%

Co-operation among channel members

Parle quality circles: The members of the local channel meet

together every month to share issues and the achievements of the

channel members. This is an ongoing activity facilitated by the

company offices in different locations; this enables the channel

members to learn together and reduces the horizontal conflicts among

the WDs.

Pilot salesmen scheme: To reduce the financial burden of the

distributors this scheme is run whereby half the cost of the salesmen is

born by the company and the rest half by the distributor

Scheduling of sales: The WD’s provides Schedule of the distributor’s

sales men to the retailers so that the retailers can plan out and place

the orders in advance.

Agreement defining rights: The company makes the distributors

sign an agreement where the areas of operation for each of the

distributors are defined, therefore avoiding any conflict amongst the

distributors regarding their areas of operation.

OBSERVATION

The company’s strength is in its procurement and not the distribution

even they know this, as this is the industry’s main problem. Other

companies fail to replenish demand due to lack in procurement of raw

material.

Parle has loyal cooperatives that provide products only to them, over

time the relationship of trust has built up with these people that Parle

leverages now.

Transport channel is another strength as the transporters have grown

with the company overtime the bonding with them enables the

company to give least margins when it comes to the distributors in the

industry, lowering the costs.

The company believes that there is an ongoing demand in the market

and therefore no promotions are needed to increase the sales, also the

fact this would affect the cost of the product the company doesn’t

undertake many promotion schemes.

The not being a profit driven organization, is able to provide products

at the least price in the industry, and is able to give least channel

margins as the channel members earn through volumes and not

through high margins.

The company is enabled to push its new products into the market by

hooking them onto the fast moving products like Parle butter bite ;

they force the channel members to carry the new products as well.

Comments and Suggestion:

Parle should go in for exclusive outlets in at least all the shopping

malls coming up these days and any location where footfalls are large

in number. The advantages of this channel will be:

i. Full range display

ii. Easier to promote new products

iii. Easy to push impulse purchase products

iv. Brand building will be facilitated

Pushcarts should be increased in number in order to increase the

market reach this can provide with e very effective channel

Trade promotion should be formulated for newly launched products

instead of just tagging them onto best sellers.

The company should start a home delivery where a particular

household will order full range of products required by it over a period

of time. For this the company could provide a deliveryman with cycle

to reach the different houses.

In order to motivate the channel members it is also very essential for

the company to increase the margins for the hard selling items

In order to remain sensitive to market demand, it is essential for the

company to place additional salesmen on the field since the brand

as such commands a high demand in the market but fails to match it

with the supply.

Recommendations

To get benefits of growing biscuit- industry, I have following 3 recommendations to Parle.

Recommendation-1

Promotion of Parle branda. Promote Parle brand through schemes such as “Parle Gramin Swastha Yojana” (a network of ambulance van visiting rural areas giving basic medical treatments educating people on nutrition deficiency problems and promoting Parle nutritious products)

b. Promote Parle brand through T. V. shows such as “Parle Sakhi” (“Parle - Friend of Women”). The weekly T. V. show will cater to health issues of women and children and will explain long term benefits of healthy diet) Results Expected – Improved sales through “Top of mind recall”.

Reduced competition for ‘visible shelf space’ in small grocery and retail stores.

Brand Loyalty.

Communicating Parle value of ‘Nutrition Product’.

Recommendation-2

Study revenue and cost of each of the SKUs (products) of Parle ITC’s entry into the biscuit industry will pose challenges to the number one position Parle has held over decades. Before further diversifying into producing more products to cater to market niche, I recommend Parle to carry out detail study of each SKU. This is to avoid adding more complexity to existing production & distribution process with addition of SKU eventually leading to lowered net income.

Results Expected – The study should help Parle forecast and plan future launches, stop producing unprofitable products and focus on emerging / highly demanded products.

The study will also help Parle utilize its deep distribution channels effectively and efficiently as per consumer demand.

Recommendation-3

Advertise products segment wise as follows

a. Nutritious/Glucose biscuits Advertisement by doctors/dieticians to explain the benefits to heath conscious consumers Advertisement by cricketers (Cricket is a very popular game in India) to attract youth

b. Cream biscuits To be endorsed by bollywood (film) starts

c. Marie To be advertised as a family tea time snack Results expected – Increased penetration in rural, southern and eastern market.

Attracting health & diet conscious people.