Why the G-Maane-Genius brand is still on G-Maane-Growth mode?
Parle G became the most chosen FMCG Brand of the year - an 8th time in a row!
An year which was dominated by sale of essential goods only, the most chosen consumer brand wasn’t Amul, but Parle – maintaining its legacy from last 9 years as the most chosen FMCG brand in the annual 'Brand Footprint' report by marketing research firm Kantar. And why not! In the initial months of lockdown in 2020, Parle Products logged record sales of its Parle-G biscuits, preferred for mass consumption & its market share grew from 4.5% to 5% in April & May. This was the highest growth it saw in last 8 decades!
Why so, you ask?
Here’s why.
Because for many people in the country, Parle G is an essential item – I mean where else can you get so much glucose for Rs 2? This extends the importance of Parle G from just being a biscuit to being a comfort food for many Indians.
But why such an increase during the lockdown? Well, the sales of Parle G always go up whenever one of our coasts are hit by Tsunamis or inner-lands with earthquakes. The main reason behind this is that Parle G is preferred by government agencies and NGOs working to distribute food relief packages to the people during such natural calamities due to its economic proposition with value package of Rs 2 besides being considered as a good source of glucose.
Now, a typical Operations/Supply Chain enthusiast would ask: How does Parle cope with the sudden increases in demand during calamities? To answer that, one should know that Parle produces its products in 130 factories, spread across the country. The 82-year old brand has seen many recessions and pandemics to know how to be ready for those. For instance, when COVID-19 started, Parle was on its heels to get permissions to keep operating from day one, to ensure that the people are taking care of supply chains & for any issues coming at any local level, there was a team that was functioning and taking care of those things to ensure smooth operation. Paucity of labor was tackled by securing all its manufacturing units with at least 20-40% of the labor staff while motivating labourers by educating them on how they were part of a bigger process of feeding the nation rather than just a commercial activity.
Besides reaching the emergency kits, Parle G – a healthy snack – has reached an average Indian consumer who is bound to his home today and is munching more than ever during the lockdowns. The Indian biscuit market is expected to reach the size of Rs 62,000 crore, from Rs 40,000 crore in 2020 - a 9% CAGR growth over the next 5 years. An Edelweiss report suggests that per capita biscuit consumption in India has increased by 16% over the past five years. So, yes – it is a game of penetration.
This can be tested by CRPs – Consumer Reaching Points - a great way to measure and rank brands as it is a measure of the number of opportunities a brand has, to interact with a consumer. For Parle, the CRP for year 2020 was 6079 million, highest among all the brands in the Brand Footprint report. To give you a perspective: Amul, which stands second in the report, has 4632 million CRPs!
For the marketers who are thinking that AH! It’s an 82-year old traditional company – Don’t be fooled. The journey of transformation from a glucose biscuit to a feeling of nostalgia in the country is a trait of a continually adapting company. While its ‘G Maane Genius’ iconic tagline continues to be a part of popular culture, the brand shifted a lion’s share of its marketing budget from TV to digital during the pandemic. It even partnered with Amazon Prime Video for Shakuntala Devi – a perfect movie that again resonates with the brand communication.
In conclusion, Parle has ticked all the boxes required for a brand to be the most chosen FMCG Brand of the year – a deep penetration, a sturdy supply chain, a dynamic marketing strategy, economies of scale and a heart touching brand proposition. No wonder it has appeared as the most chosen FMCG Brand of the Year for 8th time in a row!
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By: Anmol Gupta | Isha Garg