Every company is in a hurry to add new product lines chasing growth
Diversify. Every company is in a hurry to add new product lines chasing growth. Since 80 years, Parle-G biscuits soldiers on. The yellow wrapping, the Parle Girl, nothing has changed, no flavours have got added, no brand extensions. Yet even today, it has 20% share of the Rs.25000 crore biscuit market. The simple offering with entry level pricing available at every chai stall in the country has become more staple than snack. Glucose Biscuit dipped in tea became the food of the labour class; from factory to construction workers and from Agriculture linked migrant labour to the shop workers. Britannia came up with Tiger against Parle -G and added some seven variants to it. In the board room this sounds like a great strategy. An offering for each price point but can you imagine the distributor's cost for stocking up all of these? Is there a lesson for BFSI space here? Banks want to set up NBFCs, NBFCs want to become banks, Banks want to become wallets and wallets wants to become banks, Banks are buying MFIs and MFIs are becoming banks, Full service NBFCs want to do Gold Loans, Gold Loan NBFCs want to do Housing. Parle-G is not an exciting but an enduring brand. Sometimes it pays to be boring. Choose what you want your company to be? Exciting or Enduring?
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