CAGE ANALYSIS

ASIAN PAINTS

SUBMITTED BY
GROUP -6, SECTION -2
CHIRAG DAGAR- DM 14113
DRON MALHOTRA- DM 14115
JIVITESH PATRA- DM14224
MILU JACOB- DM 14125
RANJANA T N- DM14240
VIKAS SHARMA- DM 14159

Haldirams is an Indian sweets and snacks products manufacturer. It was founded in 1937 in
Bikaner in Rajasthan and now they operates in more than 10 countries worldwide. This includes
countries like United States of America, United Kingdom and Australia. According to the Brand
Trust Advisory Report, Haldirams is ranked as 55th most trusted brand of India. Haldirams has
over 100 products which includes namkeen, sweets, snacks and frozen foods. Haldirams is
already present in American market and is very popular among Asian community.
As Haldirams is a very popular brand and is already present in international market, I have
selected Sri Lanka, South Africa and Indonesia as three new markets which have huge potential
for its growth. In order to identify the potential of the product in these 3 countries, I have adopted
CAGE Analysis framework. In this framework, I have compared cultural, economic,
administrative and geographical factors of all three countries.
CULTURAL DISTANCE:

Sri Lanka
South Africa
Indonesia
Not much diverse Not much diverse Indonesia has more
Diversity

with Sinhalese which with Black African than 15 ethnic groups.

constitutes

about (79.2%), white 8.9%, Much diverse country

73.8% of population. colored

8.9%

and with

Javanese

Rest are Sri Lankan Indian/Asian 2.5%.

(40.1%),

Sundanese

Moors (7.2%), Indian

(15.5%),

Malay

Tamil

(3.7%) and others.

(4.6%),

Sri

Lankan Tamil (3.9%),

other unspecified.
The Most Spoken Mix
Language, Religion,
Ethnicity

languages Over 750 languages.

Languages are Sinhala such as IsiZulu which Bahasa Indonesia is

and Tamil. English is is

the

another

common language,

language

and

widely
Gender

of

used

government.
1.04 male(s)/female

is Afrikaans

official official language and

IsiXhosa, English.
and

in English.
1.02 male(s)/female

1.05 male(s)/female

Individualism
Long Term or Short
term orientation

Collectivistic Society Individualistic

Long
Term Long
Orientation

Individualistic
Term Long

Orientation

Term

Orientation

As we can see from the above data that all the three countries have people of Indian origin.
Hence Haldirams have a good chance of getting popular. This will give a huge opportunity for
Haldirams as they can connect with the population. The ethnic diversity will also help them as
now they can have huge variety of snacks available. English is common in all these countries
hence the promotion would not be a problem. Also as in all the 3 countries the proportion of
middle class population is quite high, it will also help Haldirams.
GEOGRAPHIC:

Size
Climate

Sri Lanka
65,610 sq km
Tropical

South Africa
1,219,090 sq km

Monsoon Mostly

semiarid Tropical

climate with northeast climate

monsoon
December
and

Indonesia
1,904,569 sq km
climate.

with Hot, humid; more

during subtropical along the moderate

to

March east

coast.

in

Wide highlands.

southwest temperature difference

monsoon during June with sunny days, cool

Transportation

to October.
Poor
railway
Airport

nights
and Excellent airport and Excellent

connectivity. railway

connectivity. road

air

and

connectivity.

Good road connectivity Good road connectivity Sea connectivity is

with extensive unpaved across the country with good

Landlocked
Ports

& paved roads.

availability

No.

expressways.
No

Major port Colombo

Major

port

Town,

Durban,

Elizabeth,

with

of availability of many
major ports.
No
-

Cape Major

seaports:

Port Banjarmasin,

Richards Belawan, Kotabaru,

Bay

Krueg

Geukueh.

Major container port:

Airport

Tanjung Priok
566 with 144 paved 673 Airports

15 Airports.

and

422

with

unpaved 186 paved and 487

airports.

unpaved airports.

ADMINISTRATIVE:
Sri Lanka
Political Scenario

Multi

South Africa
Indonesia
Party Multi
Party Constitutional

Democratic state with Democratic state.

democracy.

After

mix of presidential

1998,

many

system

amendments

and

parliamentary system.
Corruption

been made to prevent

dictatorship.
Score of 38/100 on Score of 44/100 on Score of 34/100 on
Corruption

IPRs

have

Corruption

Corruption Perceptions

Perceptions Index.
Perceptions Index.
Index.
Rank 59/97 on IPR Rank 26/97 on IPR Rank 59/97 on IPR
Index

published Index

International
Index.

published Index

IPR International

IPR International

Index

Index

published

ECONOMIC:

GDP(2013)
GDP
Growth(2013)
HDI
Ease of Doing

Sri Lanka
$134.5 billion
6.3%

South Africa
$595.7 billion
2%

Indonesia
$1.285 trillion
5.3%

Rank 92
Rank 99

Rank 121
Rank 43

Rank 121
Rank 114

IPR

Business
Debt to GDP ratio 78.4% of GDP
(Est. 2013)
Transparency

Rank 85/176

Index
Labor Force

Major

proportion

45.4% of GDP

24.2% of GDP

Rank 67/176

Rank 107/176

of Major proportion of Major

proportion

of

population is engaged population is engaged population is engaged

in Services followed by in Services followed in Services followed by
agriculture
Exports

industry

and agriculture

and

industry.
agriculture (9%).
industry.
Textiles and apparel, tea Gold,
diamonds, Oil & gas, electrical
and

Imports

and by

spices;

rubber platinum, other metals appliances, plywood,

manufactures.
and minerals.
petroleum,
textiles, Machinery
machinery

textiles, rubber.
and Machinery

and

and equipment, chemicals, equipment, chemicals,

transportation

petroleum

products, fuels, foodstuffs.

equipment, foodstuffs.

scientific instruments,
foodstuffs.

Conclusion:
Based on all the above parameters, we can see that Sri Lanka has huge potential for the
introduction of Haldirams. If we see Sri Lanka, it also has many benefits such as it is located
near to India and major ports of both India and Sri Lanka are located near to each other. Hence
Haldirams has an option of exporting goods directly to Sri Lanka instead of setting up their own
manufacturing facility. The population Indian origin will also be an added benefit for Haldirams
as their food habits are same. If we consider economic factors, we can see that a major portion of
population is engaged in agriculture based services so the raw materials for the company would
not be a problem. The GDP growth rate is also very high which will result in increased income of
the people which will also help Haldirams. The corruption index is also low in Sri Lanka which
will help in ensuring proper and efficient work flow. The transportation facility is also pretty
good in Sri Lanka, which will help in setting up an efficient supply chain. Considering all the

above factors, Sri Lanka is the most appropriate destination for Haldirams to start their
operations.