Here’s a summary of the article in 400 words:
Parle-G, the iconic Indian biscuit brand, has managed to maintain its Rs 5 price tag for decades, a feat that is both impressive and puzzling. To understand how Parle-G has managed to achieve this, one needs to look at a combination of factors. Firstly, the company’s massive production scale gives it significant bargaining power, enabling it to source raw materials at lower costs, which is then passed on to the consumer.
Another crucial factor is the use of shrinkflation, a practice where the company reduces the size of the product without changing the price. While a Rs 5 pack used to contain 100 grams of biscuits, it now contains only 55 grams. This reduction in size allows Parle-G to control costs and maintain its pricing strategy.
Parle-G’s focus on local sourcing is another key factor in keeping costs low. By sourcing ingredients from domestic suppliers, the company reduces transportation and import costs. Additionally, buying in bulk allows for further savings without compromising on quality.
The company’s efficient production line is also a significant contributor to its cost savings. Advanced automation and streamlined processes enable Parle-G to minimize labor costs, waste, and supply chain inefficiencies. This enables the company to keep costs low while meeting the massive demand for its biscuits.
The emotional connection between Parle-G and Indian consumers is also a crucial factor in the brand’s success. For millions of people, Parle-G is a nostalgic treat that evokes a sense of comfort and familiarity. This loyalty fosters trust in the brand, allowing Parle-G to maintain its pricing strategy without losing customers.
Despite the strategies that have enabled Parle-G to keep its price tag low, the company is not immune to rising costs, and it may need to adjust its strategy in the future. However, one thing is certain: Parle-G is here to stay as a beloved brand, trusted by consumers and admired for its commitment to value and quality. The brand’s enduring appeal is a testament to its deep understanding of the Indian consumer and its willingness to innovate and adapt to changing market conditions.