Success Story of Parle-G: Business Case Study

Parle-G, a beloved household biscuit in India, has stood the test of time despite economic fluctuations. This article explores the simple yet effective strategies employed by Parle to maintain its prominence in the market and how these business lessons can be applied to other ventures.

The Humble Beginnings and the Transition to Parle-G

In 1880, Mohanlal Dayal started a small toffee factory in Mumbai with 12 family members. Parle’s first product was an orange candy. In 1939, they introduced the Parle Gluco Biscuit, offering affordability and delectable taste that captivated consumers and gradually replaced British brands.

The Name Change that Made a Difference

In 1987, several gluco biscuits flooded the market, making it challenging for Parle Gluco to stand out. To overcome this, the brand transitioned to ‘Parle-G,’ helping customers differentiate it from other similar-sounding biscuits.

Consumer Utility Perception: The Key to Steady Pricing

Parle-G’s price has remained constant over the years due to the consumer utility perception associated with the biscuit. Unlike occasional snack biscuits, Parle-G is commonly consumed with tea, coffee, and milk, securing a consistent demand.

Capex Intelligence: Optimizing Manufacturing and Distribution

Parle’s strategic placement of 10 factories, all within 60 km of major cities like Mumbai, Rajasthan, and Karnataka, reduces transportation costs and ensures the same pricing in both urban and rural areas. The company’s frugal buying and standardized raw material sourcing further minimize production costs.

Sales Driver: Parle-G’s Role as a Brand Builder

Parle-G, though not a high-profit product, plays a crucial role in building brand equity. With its widespread presence in households, the biscuit boosts the visibility and sales of other profitable Parle products, such as Hide&Seek, Monaco, KrackJack, Melody, Poppins, and MangoBite.

Business Lessons to Learn from Parle’s Success

Diversify and Reduce Dependency

Never become over-dependent on a single product or resource. Parle-G is the signature product, but the brand has expanded its offerings to include a diverse range of biscuits and toffees.

Focus on Controllable Factors

While some factors in business may be uncontrollable, finding smart solutions to reduce costs and maintain competitive pricing can be within reach. Parle’s ability to provide products at a consistent rate of Rs. 5 exemplifies this approach.

Prioritize Brand Equity Over Immediate Profits

Profits are a byproduct of creating strong brand equity. Parle’s focus on building a trusted and recognized brand like Parle-G has ensured its sustained popularity, leading to increased sales of other profitable products.


Parle-G’s remarkable journey from a humble candy and biscuit maker to a market leader holds valuable business lessons for entrepreneurs. The combination of consumer utility perception, strategic manufacturing and distribution, and the emphasis on brand equity has been the key to Parle’s enduring success in the Indian market.

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