Parle G Case Solution: Strategic decision dilemma on pricing

Parle G Case Solution – Naam To Suna Hi Hoga

Parle G Case Solution

Parle-G – Ivey Case
By: Chandra Sekhar Ramasastry, Miranda Goode
his case exposes students to the strategic complexities underlying a major pricing decision. The major learning objectives are to: enable students to appreciate that tactical decisions such as pricing are not made (or, at least, are not made effectively) in isolation of bigger picture marketing strategy; encourage students to explore the challenges surrounding the sustainability of a value-for-money positioning; provide students with the opportunity to devise both short- and long-term marketing plans.

The case on Parle G highlights the following decision problems:

Strategic implications
Pricing
Increase Price or Reduce grammage
Value for money positioning

Parle G is known for its value for money pricing.

In 2010, the prices of raw material substantially increased putting pressure on margins. The core product offering of Parle G biscuits was the SKU priced at INR 4 at that time. In past, Parle G reduced the weight (grammage) of SKY to manage the cost. In this case, the decision dilemma was to whether to reduce weight or increase price.

Another potential option was to launch a new product with premium pricing to offset the losses in margin.

The decision had a critical impact on short-term and long-term revenue growth as well as fighting competition like ITC and Britannia, which were looking for a opening to get some market share from Parle G.

The case situation, analysis, and potential solution are presented in a video format. Some of the highly creative and engaging video case solutions are given below.