Parle-G, the iconic Indian biscuit, has been a staple in many Indian households for decades. Despite the rising costs and inflation, Parle-G has managed to maintain its Rs 5 price tag for many years. So, what’s the secret behind its enduring affordability? The article breaks it down into five key factors:
- Mass production: Parle-G’s large-scale production gives it significant bargaining power with raw material suppliers, resulting in lower costs per unit.
- Shrinkflation strategy: Although the packet size has decreased over time, the price has remained the same, making it a clever move by Parle-G to maintain profitability.
- Local advantage: Sourcing ingredients from local suppliers reduces transportation and import costs, ensuring quality products at a lower cost.
- Efficient production line: Advanced automation and streamlined processes minimize labor costs, waste, and supply chain issues, keeping costs down.
- Brand loyalty and market positioning: Parle-G’s nostalgic value, emotional connection with consumers, and widespread brand recognition create loyalty and trust, allowing the brand to maintain its low price point.
These factors have enabled Parle-G to maintain its iconic Rs 5 price tag, making it a staple in many Indian homes. As the brand continues to evolve, it may face new challenges, including potential reductions in packet size. However, its commitment to efficiency, quality, and customer loyalty ensures its enduring presence in the Indian market.