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Parle Products is extending its distribution network and increasing manufacturing capacity by a fifth to maintain its market share. The leading biscuit maker has been unable to meet the growing demand for its products through its distribution channels.
Praveen Kulkarnii, general manager (marketing) of Parle Products, said they had not been able to meet the demand due to supply issues. “We are increasing our capacity by 15-20 per cent. The franchisees for outsourced manufacturing would be making investment for capacity addition.”
Parle, which clocked a turnover of Rs 4,000 crore in 2009-10, markets products such as Parle G, Melody, Monaco and Krack Jack. The company is expecting its sales to grow by 15-20 per cent this financial year.
The company is looking at expanding the product portfolio by introducing newer categories. “Parle Top, which was launched recently, will be extended to other markets in a few weeks. We will be spending around Rs 5-10 crore for advertising,” said Kulkarnii.
The market is split between three major players — Parle, Britannia and ITC — and a clutch of regional players.
“We are aware of the increasing market share of our rivals. We are trying to plug in the gaps in distribution. We are beefing up our marketing strategies and promotions, advertising to woo consumers,” said Kulkarni
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