Parle Products: The Journey of Budget Brand Toward Premiumization

Abstract

Parle Products has been one of the foremost pioneers of the biscuit and confectionery industry in India. Since its inception in 1929, Parle has been synonymous with quality, nutrition, taste, and affordability in India. Having more than 40 brands across different product categories in its portfolio, Parle Products has come a long way. Due to the enormous success of brand Parle-G, the mother brand Parle has been associated with values of affordability and quality. Parle has always been a strong player in the value segment and thus customers associate all brands of the company as being the affordable brand with quality. While the industry peers such as Britannia and Indian Tobacco Company (ITC) have positioned themselves as a champion of premium segments, Parle Products is still known as an affordable or budget brand among Indian masses. Considering the increasing demand for premium biscuits among the new generation of consumers, Parle Products has introduced the new division Parle Platina in 2017. But the transformation of “value” or “budget” brand into the luxury and premium brands is not easy, as the legacy of value brand among the masses is not easy to shake off. This becomes more difficult and challenging in a highly fragmented, competitive, and price-sensitive biscuit market like India. Another problem for the Parle Products is to hit the sweet spot between the mass market and the premium demographic which the brand is currently missing out in a highly fragmented and competitive Indian biscuit market.