Billionaire Bonanza
Celebrating brands chosen a billion times or more
Understanding the rise of emerging market giants is crucial. These brands, originating from countries including India, Indonesia, and China, are rapidly expanding their influence and reshaping market dynamics. Our Brand Footprint analysis spotlights these formidable contenders in a "Billionaire’s Club" listing — brands consumers have chosen over a billion times throughout the year.
Often underestimated in Western markets, these brands are forging ahead with unique strategies. They are venturing into new territories, diversifying their product lines, and innovating in their own distinctive ways. Their triumphs are a testament to their strategic prowess and profound understanding of local markets.
Take, for example, ITC Foods' Sunfeast. Initially a domestic player, ITC Foods is now aggressively growing the international presence of its Sunfeast biscuit range. This ambitious expansion is indicative of a broader trend among emerging market brands.
At the pinnacle of our Billionaire’s Club is Parle, a name that resonates deeply within India’s confectionery and snack sectors. Parle’s flagship product, Parle-G, is a household staple and an iconic brand in its own right. However, Parle's portfolio extends beyond biscuits, encompassing confectioneries, snacks, and beverages, showcasing their versatility and adaptability.
Parle’s success can, in large part, be attributed to its profound understanding of the Indian consumer. From its inception, the company prioritised affordability and accessibility, ensuring its products were within reach of every consumer. Parle’s marketing strategies are finely tuned to regional preferences, reflecting a deep appreciation of India’s diverse cultural landscape.
The brand's expansive reach is another cornerstone of its success. Parle products are available in over 7 million retail outlets across India, from local Kirana stores to large supermarkets. They are also a common sight in restaurants, dhabas, and tea stalls, often enjoyed with tea or coffee. This extensive distribution network and strategic pricing have made Parle products both affordable and ubiquitous.
But Parle is not just an Indian powerhouse. Parle has manufacturing units in eight countries outside India: Cameroon, Nigeria, Ghana, Ethiopia, Kenya, Ivory Coast, Nepal, and Mexico.
Right-sizing the business
Parle’s innovative packaging further contributes to its widespread appeal. Offering products in various pack sizes, including those priced as low as Rs2 ($0.02), Parle ensures convenience for all consumers. These small-sized packs are perfect for on-the-go consumption, fitting easily into handbags, tiffins, and dabbas.
With annual revenues surpassing $2 billion and Consumer Reach Points second only to Coca-Cola, Parle's market dominance is undeniable. The brand’s longstanding rivalry with Britannia, another Indian giant, has kept both companies at the forefront of the industry. Adding to this competitive landscape is Sunfeast, which, with a growth rate of 28%, is emerging as a formidable contender.
Parle’s marketing philosophy has always resonated with the Indian masses. Their 2023 ad campaign, which emphasised themes of kindness, compassion, and empathy, struck a chord with consumers, further cementing their place in the market.
Q. Parle has successfully expanded its footprint in international markets. What are the key challenges and opportunities encountered in this journey, and how does the brand adapt its strategies to suit different cultural contexts and consumer behaviours?
A. Parle has a footprint across more than 120 countries today. Not only is it consumed by the Indian diaspora there, but in many countries, it is increasingly consumed by the local population. Even so, the key challenge is making a mark for our products among the local population across all markets. Given our vast assortment of products, we are confident we can create a market for our products in a wide range of countries.
Q. Localised marketing seems to be a significant aspect of Parle's strategy. How does the company tailor its marketing efforts to resonate with diverse consumer preferences across different regions?
A. 'Consumer' is at the centre of everything that happens at Parle. So, when it comes to marketing, we do not use a one-size-fits-all approach. We prefer to interact with our consumers in their language and dialect, using their cultural codes and nuances. However, while doing this, we ensure that we do not deviate from our core purpose. Our purpose defines our identity, and hence, it helps us stay true to our identity.
Q. Can you discuss Parle's sustainability initiatives and their impact on brand perception and consumer loyalty?
A. Whether sourcing raw materials or using packaging material, we strive to ensure that our products have the least impact on the environment. We also put a lot of effort into ensuring the use of non-conventional energy sources.
Q. How does Parle predispose consumers to choose its products over competitors in the crowded FMCG marketplace?
A. You cannot force consumers to buy your product. It will not work in the long run. If you offer a great product, delight them with the experience, and build a love for your brand, only then will they stay with you.
Q. Parle's rise in the FMCG industry is remarkable. How does the company plan to sustain this momentum and continue its growth trajectory?
A. Follow your consumer. If you stay true to what your consumers want, understand them, and, most importantly, delight them by providing great value, they will stay with you. We intend to continue doing that. To be relevant to consumers, one has to keep one's ear to the ground to understand changing consumer dynamics and adapt to those changes in a timely manner.
