In fact, biscuits as a category have been growing consistently even as other consumer goods faltered. Parle said its ubiquitous glucose biscuit brand benefitted as prices of other packaged food surged. Long Story extracts the hard lessons from the FTX fall.According to Kantar, daily groceries and essentials consumers bought during the year ended March fell 0.8% after consistent price hikes forced people to cut back on household spending. Muneer say Meta’s crisis stems from not telling us the whole truth. Alexa, will you ever make any money for Inc? Parmy Olson asks. In Opinion, Cyril Shroff & Arun Prabhu say businesses should seek clarity on the new data bill. If brands can get the ‘three Ps’ of marketing right – product, price and placement – there is still a fortune waiting to be made at the bottom of the pyramid. Income poverty is an obvious deterrent to consumption – but that does not mean that the poor do not consume anything. This, more than anything else, underlines the real potential at the bottom of the pyramid in India. Parle-G topped with 6,531 million CRPs, followed by Amul with 5,561 million, helped by its easy availability even in remote markets, its affordable pricing and, above all, its ability to maintain consistency in taste and quality, critical to the longevity of any food brand. According to Kantar Worldpanel’s Brand Footprint study, Parle-G occupied the top spot as the most chosen brand based on its estimate of what it calls Consumer Reach Points – a composite metric that combines how many households are buying a brand (penetration) and how often (frequency of purchase). This strong rural connect has also helped keep Parle-G at the top of the charts for India’s “most chosen" brands for more than decades, edging out that other home-grown foods behemoth, Amul. Biscuits have an astonishing 83 per cent market penetration in rural India and over 94 per cent in urban India, making biscuits the largest FMCG category in India. And that is where Parle-G sells most of its biscuits. Over 90 per cent of them live in rural India. According to UN data, India has the largest absolute number of poor people in the world (228.9 million), based on 2020 population data. Parle-G’s success is also a testimony to the collective buying power of India’s poor. Which is why the Parle-G ₹5 pack and Haldiram’s ₹5 bhujiya pack have helped both become billion-dollar brands in India. But for India’s poor, affordability remains key. Pack weight has fallen dramatically, though. The pricing of its most popular pack – the ₹5 pack of Parle-G – has remained unchanged since 1994. It has also managed – despite inflation – to hang on to the “magic price point" of ₹5 per pack for close to three decades. The result: while Britannia has more than double Parle’s market share in the higher-priced range, Parle has a staggering 85 per cent of the market in the basic glucose biscuit category. But while Britannia gets its volumes – and market share – from higher-priced cookies catering to the urban middle class, Parle has remained laser-focused on the mass market, and on its most affordable product. Not bad for a company which is actually not the market leader by value in India – rival Britannia is ahead by a shade. This was a healthy 9 per cent over the sales of ₹14,923 crore it had logged in FY21. The nearly century-old maker of biscuits and snacks reported net sales of ₹16,202 crore for the year ended March 31, 2022, according to filings with the Registrar of Companies (Parle Products is not a listed company). ReNew to sell 1GW plants at $1bn enterprise valueĪdani FPO in the works to fund new-age businessesĥ charts reveal the state of state economies Ramavva is perhaps an extreme case but millions of fanatic consumers like her – mostly from India’s often overlooked bottom-of-the-pyramid market – are the reason why Parle-G – a basic flour-and-sugar biscuit sold in packs priced as low as ₹2 – has become the single largest biscuit brand by volume in the world and propelled its maker, Parle Products, into a $2 billion-in-revenues company. Nutrition researchers found her to be essentially healthy but somewhat underdeveloped for her age. Her poverty-stricken parents, who could ill afford the six or seven packets she consumed in a day, tried to convert her to other foods, but failed. The girl refused to eat anything else even after growing up. Apparently, Ramavva’s mother had not breastfed her but fed her only Parle-G biscuits and cow milk since birth.
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