For decades, one biscuit has been a staple in almost every Indian household: the humble Parle-G. It’s the world’s best-selling biscuit, but how did it manage to achieve this phenomenal success and absolutely dominate its competition, especially Britannia?
This is a story of strategic pricing and unparalleled distribution that taught the entire FMCG industry a powerful lesson.
Britannia’s Big Mistake: Targeting the Middle Class
When Britannia entered the biscuit war, they focused their efforts on a specific, high-spending group: the middle-class consumer. Their marketing was slick, and their products were positioned as premium. They focused on urban markets and higher-end stores.
They believed the future lay in sophisticated, premium biscuits. But they completely missed the biggest market opportunity in India.
Parle-G’s Masterstroke: The ₹5 Price Point
Parle-G, on the other hand, had a simple, brilliant strategy: Keep the price point at ₹5.
Why ₹5? This seemingly small detail was the key to unlocking the entire Indian market.
- Accessibility: A ₹5 pack is affordable for everyone, from the wealthiest urbanite to the poorest villager. It’s an easy, impulse purchase.
- Rural Dominance: Parle-G made its biscuits accessible not just in cities, but also in the deepest rural markets, where millions of Indians live.
Parle-G’s philosophy was clear: Sacrifice the profit margin on a single pack to achieve massive sales volume. They aimed for everyone, everywhere.
The Unstoppable Distribution Network
Parle-G didn’t just have a great price; they built an unstoppable distribution network. They made sure their biscuits reached 90% of the small shops (kirana stores) in every corner of the country.
Their strategy meant that whether you were in a bustling metro city or a tiny village, you could always find a pack of Parle-G.
The Verdict: Volume Wins the War
While Britannia focused on higher profit per packet from a smaller, urban customer base, Parle-G focused on winning the volume game. They sold billions of packets at a razor-thin margin.
Today, Parle-G continues its reign as the king of biscuits. The story serves as a powerful reminder that in a country like India, winning the bottom of the pyramid with incredible accessibility and unbeatable value often leads to the biggest, most enduring success.