Why did Parle-G diversify into ‘Oats & Berries’ and ‘Kismi Cinnamon’?

Imagine dunking a Parle-G glucose biscuit into your evening cup of tea and seeing it fall back into the milky concoction right as it emerges from its ritual bath. Why, oh why?

Many expressed this sentiment when Parle, the maker of the said glucose biscuit, announced that it was diversifying the brand with two new flavours - Parle-G Oats & Berries and Parle-G Kismi Cinnamon.

Because the Parle-G and chai jodi is so set in Indian minds, to see it change even slightly, makes people want to discuss what’s happening. The nourishment of choice for evening tea gupshup (gossip), is now the subject of gupshup.

For starters, the two new products bear a close resemblance to the Parle-G glucose biscuit packaging (the Parle-G girl makes an appearance on the Oats & Berries pack). The Kismi Cinnamon packaging is more reminiscent of the chocolate wrapping than a new biscuit offering.

When asked about the design similarities and if launching a new sub-brand is a better choice, Mayank Shah, senior category head, Parle Products, says that they wanted to leverage the healthy connotations of the Parle-G biscuit. Therefore, the design similarities.

The two variants are meant for a different segment of people than their more popular sibling, he adds.

The Oats & Berries variant, Shah explains, comes from research which reveals this: the middle class of India aspires to have healthier things and what keeps them away from consuming it regularly is the price of the product.

A 100 gram pack of Parle-G Oats & Berries costs Rs 10. A Unibic Honey Oatmeal 75 gram pack costs Rs 30 and a 100 gram Sunfeast Farmlite Digestive Oats with Raisins costs Rs 40, as mentioned on Amazon.in.

The Kismi Cinnamon biscuit, on the other hand, is targeted at coffee drinkers because cinnamon and coffee make a good pairing. However, Parle-G has its work cut out because India’s coffee drinking culture is in its nascency, as compared to tea drinking. It has to build a habit from scratch.

As per the iMARC Group, a market research company, the country’s tea market will have a CAGR of 4.7% during 2022-27. Statista, another market research shop, suggests that the country’s coffee market is expected to grow annually by 3.08% (CAGR 2022-25).

Shah agrees with this assertion, but points out that it doesn’t apply to the whole of India because “the South is big on coffee”. He says that the young are “more inclined to drink coffee.” It is also the reason why Parle decided to introduce an item that complements coffee.

Both the products will “target the 15-25 year olds,” reveals Shah. The company will roll out the products across the country by August. They are available in the western and southern regions right now.

Parle, as these two product diversifications roll out, aims to spend around “60-65% on TV and 30-35% on digital,” as far as marketing goes. Once the rollout is complete, it will consider increasing the SKUs.